Full text of Federal Reserve Bulletin : September 1972
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Federal Reserve Bulletin SEPTEM BER 1972 * * * * * * * *f^AL BOARD OF GOVERNORS ■ THE FEDERAL RESERVE SYSTEM ■ WASHINGTON, D.C. A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular subscription price in the United States and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, M exico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 per annum or 60 cents per copy; elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U .S. currency. (Stamps and coupons not accepted) FEDERAL RESERVE BULLETIN CONTENTS N U M B E R 9 □ V O L U M E 58 □ S E P T E M B E R 1972 747 T h e Lab or M arket in an E x p a n d in g E c o n o m y 757 T re asu ry and Federal R e se rv e Foreign E x c h a n g e O pe ratio n s 783 Y ie ld s on N ew ly Issu e d Corporate B o n d s 785 Statem en t to C o n g r e s s 790 R e cord of Policy A ctions of the Federal O p e n M arket Com m ittee 797 La w D epartm ent 851 A n n o u n c e m e n ts 852 National S u m m a ry of B u s in e s s C on d ition s Financial and B u s in e s s Statistics A A 1 3 Contents Guide to Tabular Presentation A A A 3 4 74 Statistical Releases: Reference U.S. Statistics International Statistics A 98 B o ard of G o v e rn o rs and Staff A 100 O p e n M arket Com m ittee an d Staff; Federal A d v iso ry C ou ncil A 101 Federal R e se rv e B a n k s and B ra n c h e s A 102 Federal R e se rv e Bo ard Publications A 106 Index to Statistical T a b le s M a p of Federal R e se rv e S y ste m on Inside B a c k C o v e r EDITORIAL COMMITTEE J. C h a rle s Partee Robert C. Holland Robert S o lo m o n R alp h C. Bryant Kenneth B. W illiam s Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff ed i torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by M ack R ow e. The Labor Market in an Expanding Economy EMPLOYMENT and production began to rise sharply about a year ago in response to a significant upturn in demand. Unemployment showed little improvement until the spring of 1972, however, as gains in employment were about matched by increases in the labor force. At the same time, a strong cyclical rebound of growth in productivity, together with some dampening of wage increases, has brought about a moderation of the rise of unit labor costs and of upward pressure on prices. Strengthening of labor demand began unusually late in the recovery— more than half a year after the trough of late 1970. Once the recovery got under way, the composition of employment gains was similar to previous experience. The initial impetus to employment occurred in the service-producing sectors, where hiring j A fte r s u m m e r o f 1 9 7 1 , INCREASED DEMANDS s tim u la te d g ro w th o f e m p lo y m e n t; b u t w ith f a s t e r la b o r f o r c e g ro w th , th e d e c lin e in u n e m p lo y m e n t w a s sm all ♦A ffected by major strike. Seasonally adjusted data. C hanges in G N P are at annual rates. Labor force, em ploym ent, and unem ploym ent rates are quarterly averages except for 1972 Q3 w hich is a July—A ugust average. Real G N P is in 1958 dollars. 748 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 accelerated after a recession lull. The subsequent recovery of industrial production brought increases in both manufacturing em ployment and working hours, but these came late and were mild compared with those in other cyclical upturns. Moreover, between May and August 1972, manufacturing employment was about unchanged. Mainly as a result of sluggishness in manufacturing, total nonfarm payroll employment has risen by only 3 per cent since the cyclical peak in the fall of 1969. From the cycle trough until m id-1972, growth of the labor force about matched increases in employment. As a result, unemploy ment remained near 6 per cent until June 1972, when it dropped to around 5 V2 per cent and held there through August. Labor force growth was particularly rapid from m id-1971 until the spring of 1972 as the rate of labor force participation moved back toward the level of early 1970. This cyclical increase in labor force growth was augmented by the continuing flow of veterans into the civilian labor market. In contrast to most previous postwar cyclical experience, in creases in wages and prices had shown little tendency to slow during the recession. Since the economic stabilization program was insti tuted in August 1971, however, increases in average hourly com pensation have been reduced somewhat. In the private nonfarm econom y, average hourly compensation rose 6.2 per cent over the year ending in the second quarter of 1972— 1 percentage point less than in the comparable 1970-71 period. In conjunction with the strong cyclical recovery of growth in productivity, this improvement contributed to a substantial slowing of the rise in unit labor costs. LABOR DEMAND Increased spending by consumers and businesses provided the basis for sharp advances in production, employment, and productivity after the summer of 1971. Real GNP increased by 6.2 per cent over the year ending in the second quarter of 1972, while total employment advanced by 2.4 million persons, or about 3 per cent. Employment gains amounted to roughly 900,000 each for men and women and about 600,000 for teenagers. Most of the increase in total employment occurred among full-time workers— threefifths of the advance was among blue-collar workers, many of whom had been laid off in 1969 and 1970. Reflecting this pattern of recovery, the reduction of unemployment since the summer of 1971 has been most pronounced for blue-collar workers seeking full-time jobs in the manufacturing industries. Most such workers are heads of households and the jobless rate of this group declined significantly over the past year to 3.3 per cent in August 1972. Job gains in the services, trade, and State and local government sectors totaled 1.8 million in the past year after having slowed LABOR-MARKET DEVELOPMENTS 749 to an annual rate of about 1 million during and just after the recession. Employment increases in these service-producing indus tries had averaged 1.6 million annually over the 2 years before the recession. The average workweek in the service-oriented in dustries has continued its long-run downward trend during the recovery. This secular decline is primarily a result of increases in the number of part-time workers— a trend that may change or at least moderate with slowly developing changes in the age structure of the population. 2 I EMPLOYMENT GROWTH s t r e n g t h e n s in s e r v ic e - ty p e in d u s tr i e s SERVICES BLS payroll em ploym ent data, seasonally adjusted. 1972 Q3 is a July-A ugust average. FA CTO RY W ORKW EEK FR data on industrial production and b l s data on em ploym ent and hours, As usual, the average weekly hours of factory workers turned up before manufacturing employment began to rise, showing about a 6-month lead. By August 1972, factory hours reached 40.7 hours, nearly an hour longer than a year earlier and close to the average level in the 1967-69 period. Increased overtime hours accounted for more than half the rise in working hours— a typical recovery pattern. Manufacturing employment was on a downward path from July 1969 until August 1971. Over that period, it registered a net decline of 1.8 million jobs— with about one-fourth of this decline in de fense-oriented industries. With a net gain of only 540,000 factory jobs since August 1971— the lowest point for factory em ploy ment— the greater part of the over-all drop has yet to be made up; factory jobs remain 1.3 million below the level of m id-1969. During the recent recession, employment cuts among nonpro duction workers in manufacturing were far larger than in the past. During previous postwar recessions, employment of nonproduction workers edged down only 1 or 2 per cent and then resumed growth during the recovery phase. In this cycle, job losses by nonproduc tion workers were larger— about 6 per cent— and continued well after the trough. Layoffs of engineers and other professionals at defense firms accounted for most of the extra reduction at the early 750 PR O D U C TIO N W ORKERS b l s data, seasonally adjusted. LABOR SUPPLY FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 stages. During the recovery of 1972, however, the number of nonproduction jobs has remained about unchanged; apparently employers in most firms have continued to curb cost increases by limiting hiring and by promoting productivity growth in the office as well as on the production line. Although total employment of professional and technical workers rose in nonmanufacturing firms, the growth was not rapid enough to absorb new entrants and those losing defense-type jobs. As a result, unemployment among pro fessional and technical workers rose more sharply than usual in this recession (from 1.0 per cent at its low to 3.3 per cent at its high) and continues relatively high. Declines in employment during the recession were unevenly distributed across the Nation. The largest losses of jobs occurred in States that have concentrations of durable goods manufacturing industries— particularly defense products firms. States that showed the largest relative declines included California, Washington, Michigan, New York, and Illinois. Employment continued to expand in the South during the reces sion— in part because durable goods manufacturing plays a less important role in that region. And since m id-1971 employment in the West and in industrial States in the North has recovered some of the earlier losses. In several important industrial States, how ever, the current number of jobs remains below 1969 levels. Growth in the supply of labor has about equaled changes in total employment over most of the past 22 months. From November 1970— the trough of the cycle— to August 1972, the civilian labor force increased by 3.7 per cent and total civilian employment rose by 4 .0 per cent. Month-to-month movements over the period were similar in size until June 1972 when employment growth moved slightly ahead of the labor force and the unemployment rate moved down to about 5 xh per cent, where it remained through August. Cyclical responsiveness of the labor force to changes in labor market conditions is reflected in participation rates (the percentage of the population either working or seeking work). During the recent recession the labor force participation rate dropped substan tially as persons unable to find work ceased looking and others who might have come into the labor force were discouraged from doing so. Among the major groups the decline in participation took the form of faster and larger reductions in the participation rates of men and a slowing of the increase in participation of women. During the recovery, participation rate changes for most broad groups appear to have resumed their longer-run trends. As a result, the average participation rate has returned to about its pre-recession level: hence, continued strong demands for labor are much more LABOR-MARKET DEVELOPMENTS 751 likely to reduce the ranks of the unemployed than to stimulate rapid growth of the labor force. The cyclical rebound of labor force growth was largest for adult women; their number in the civilian labor force has increased by 1.1 million since m id-1971. Adult women filled more than one CIVILIAN LABOR FORCE: g ro w th in c r e a s e s s h a r p ly ; g a in s e s p e c ia lly la r g e fo r w om en CHANGE, MILLIONS OF PERSONS WOMEN MEN TEENAGERS AGED 2 0 AN D OVER AGED 2 5 AN D OVER MEN AGED 2 0 TO 2 4 1.0 ’70 '71 72 a ’69 ’70 n ’71 12 ’69 D ’70 r ’71 ’72 a ’69 I 0 ’70 ’71 ’72 BLS household survey data. C hanges from a year earlier are based on annual averages for 1 9 6 9-71 and J uly-A ugust 1972. M ALESU N E M P L O Y M E N T RATE ■■■■■■■■■■■■I LABOR FORCE P A R T IC IP A T IO N RATE BLS household survey data. Annual averages except for 1972, w hich is a seasonally adjusted half-year average. UNEMPLOYMENT quarter of the additional professional and technical jobs, about two-thirds of the added clerical jobs, and three-fourths of the service jobs (excluding private household workers). About 500,000 teen agers were added to the labor force this past year; approximately half of this rise was due to growth in their population and half due to an advance in their participation rate. The number of men aged 20 and over in the civilian labor force increased by 1.0 million over the past year. About half the rise occurred among 20- to 24-year olds in part because continuing reductions in the Armed Forces increased the number of young men seeking civilian jobs. About half a million men aged 25 years and over were added to the civilian labor force, owing entirely to an increase in their civilian population, and the labor force partici pation rate of this group continued its secular decline. The reduc tion in male participation has been particularly pronounced among Negro men, whose rates of participation have declined for all age groups. The reasons for these continuing declines are not entirely clear, but in light of the particularly large drop in 1970 and 1971 discouragement with the job market must be counted as a major factor. Unemployment did not climb so high in this recession as in previous post-World-War-II downturns, but it remained near its cyclical high point for 19 months— an unusually long period. Not until June 752 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 1972 did the jobless rate go below the 5.8 to 6.1 per cent range in which it had fluctuated since November 1970. The unemployment rate had initially reached the 6 per cent range in late 1970, primarily as a result of layoffs in durable goods manufacturing where a weak demand situation was aggravated by secondary effects of an auto strike. At that time, and throughout 1971, the number of persons among the unemployed who had been laid off averaged about 2.3 million, about 1.3 million more than in late 1969 when demand for labor was still strong. Most such workers were eligible for unemployment insurance benefits, and the number of workers drawing jobless benefits spurted from about 1.2 million late in 1969 to about 2.2 million late in 1970. Insured unemployment continued high until late 1971, when the character of unemployment began to change. Unemployment among adult men, which had risen rapidly during 1970, began to move lower as layoffs declined and factory hiring increased. Rates of unemployment in August 1972 were lower than a year earlier for most groups. The sharpest relative reduction occurred among men aged 20 years and over where the unemployment rate dropped from 4.5 per cent to 3.9 per cent; in the pre-recession period the rate for this group had been fluctuating around 2 per cent. The improvement in the rate for adult men was reflected in declines in the unemployment rates of heads of households, full-time workers, married men, blue-collar workers, and those in the manufacturing sector. In contrast, the unemployment rate for white-collar workers was unchanged from a year earlier and only slightly lower than at its cyclical high. Employment of white-collar UNEMPLOYMENT d e c lin e s s o m e w h a t in 1 9 7 2 , b u t JO B L E SS RATES c o n ti n u e re la tiv e ly h ig h f o r m o s t g ro u p s PER CENT NEGRO AND OTHER BLS household data, seasonally adjusted quarterly averages except for 1972 Q 3, w hich is a Ju ly-A u gu st average. 753 LABOR-MARKET DEVELOPMENTS workers has continued to increase but demand has merely kept pace with increases in the number of workers seeking such jobs. Unemployment among white workers has moved down over the past year but Negro joblessness has remained virtually unchanged since the spring of 1971 at a rate near 10 per cent. In previous recoveries, the rate for whites began to decline some months be fore the rate for Negroes. LABOR COSTS AND WAGES Progress has been made in reducing upward cost and price pressures. The bulk of the improvement reflects accelerated productivity growth, which— spurred by substantial gains in output— has shown a strong, if belated, post-recession pattern of recovery. In the private nonfarm sector, productivity advanced by 4.2 per cent from the first half of 1971 to the first half of 1972 with faster growth occurring in 1972. This advance compares with increases of less than 1 per cent each in 1969 and in 1970 and a trend increase of just over 2 xh per cent per year for the post-World-War-II period. Growth of hourly compensation in the private nonfarm sector from a year earlier slowed from 7.2 per cent for early 1971 to I n c r e a s e s in UNIT LABOR COSTS slo w - m ain ly b e c a u s e o f g r e a t e r g r o w th in p r o d u c tiv ity PERCENTAGE CHANGE OVER THE YE/ 8 HOURLY COMPENSATION 4 0 PRODUCTIVITY 0 2 8 UNIT LABOR COSTS 4 0 1969 1970 1971 BLS data. Changes from a year earlier based on half-year averages. 754 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 6.5 per cent for the first half of 1972. As with productivity, improvement was most pronounced in the spring of 1972. The acceleration of gains in productivity during the past year, in combination with the moderation of increases in compensation, resulted in a dramatic reduction in the rate of increase in unit labor costs. For the first half of 1972 the increase in unit labor costs from a year earlier averaged 2.2 per cent. These increases in unit labor costs were less than one-third as large as those in 1969 and 1970. Maintenance of the improved performance of unit labor costs will depend to a large extent on further slowing of increases in average hourly compensation because cyclical increases in produc tivity as large as those in the past three quarters are not likely to be sustained. The growth of workers’ hourly compensation has moderated somewhat since the economic stabilization program began in Au gust 1971. The pattern of changes in pay rates has been uneven, however, reflecting changes in the nature and coverage of the wage control aspect of the program. Growth of wage rates was virtually halted during the freeze, but early in Phase II wage rates spurted up sharply as pay increases scheduled for the freeze period were allowed to be put into effect. In 1972, the trend of wage changes began to reflect more clearly the restraining influence of the con trols. The Pay Board, which is the administrative and policy arm of the program to dampen wage growth, initially set a standard for pay increases of 5 xh per cent annually. A number of exceptions to the generally permissible increase allow larger wage adjustments in particular circumstances. The Pay Board reviews all pay adjust ments for employee units of 1,000 or more workers and any other proposed increases that are in excess of the generally permissible standard. The average of pay adjustments approved by the Board was in fact around 5 V2 per cent through August 1972. The recent trend of hourly earnings of production workers in private nonfarm industry suggests that progress has been made in the effort to moderate the growth of wages generally. Hourly earnings of production workers— adjusted for interindustry shifts— have increased by 5.6 per cent in the year since August 1971, compared with a 6.9 per cent increase in the preceding year. Since December 1971 hourly earnings have risen at an annual rate of just over 5 per cent. The most dramatic reduction of wage rate inflation has occurred in the construction industry. Throughout the late 1960’s, increases in hourly earnings of construction workers grew progressively larger, reaching a peak average increase of 9.6 per cent in 1970. (In that year, first-year wage increases under construction industry collective bargaining agreements averaged 17.6 per cent.) In order 755 LABOR-MARKET DEVELOPMENTS 6 [I n c re a s e s in HOURLY EARNINGS s m a lle r o v e r p a s t y e a r PERCENTAGE CHANGE FROM YEAR EARLIER 72 & BLS data on production w orkers’ hourly earnings adjusted for interindustry shifts and overtim e in manufacturing. C hanges based on averages for the m onths o f June, July, and August. to halt the wage spiral in construction, the Construction Industry Stabilization Committee was established early in 1971. This com mittee has the authority to review and approve or disapprove all collective bargaining agreements in the construction industry. As of August 1972 the year-to-year growth of average hourly earnings in the industry had declined to 5.5 per cent. Collective bargaining agreements negotiated since November 1971— when the committee came under the jurisdiction of the Pay Board— and approved by the committee provide average increases of only 5.7 per cent in wages and fringe benefits. The reduced pace of earnings increases in construction during recent months is attributable in part to the activities of the committee, but other factors including high unem ployment among construction workers and slack nonresidential building activity in some parts of the country also may have been important factors. Aside from construction, the slowing of wage increases has been most pronounced in service, finance, and trade— industries that tend to be less unionized and to be composed of smaller establishments. In services, where increases in wages reached a peak annual rate of more than 8 per cent in early 1971, average hourly earnings were up by only 3.5 per cent over the year ending August 1972. In trade and finance, the picture since m id-1971 has been similar, although the slowing has been less dramatic. Employers in these industries may be relying heavily on Pay Board regulations to help hold down their wage costs. Also, because wage determination in these industries tends to be more individualized, more flexible, and less rigidly periodic, wages may respond more quickly to changes in economic and institutional conditions. 756 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 In contrast, growth of wages in the highly unionized manufac turing sector has slowed less dramatically. In the transportation and public utilities industry group, growth of wages has actually increased. In both situations, the wage adjustments provided for in contracts that were settled before the controls program was inaugurated have tended to maintain the earlier rapid growth of wages. The few new collective bargaining agreements that have been negotiated in manufacturing in the past 6 months have pro vided smaller increases than those negotiated before the economic stabilization program began, and increases in hourly earnings in 1972 have been down to the 5 lA per cent zone. COLLECTIVE BARGAINING Major negotiations completed in the first half of 1972, which affected only 870,000 workers, showed a significant slowdown in wage rate adjustments for the first year of the contract: increases averaged 7.5 per cent compared with 11.7 per cent in 1971. Smaller first-year wage increases— a movement away from the practice of front-end loading of contracts— probably resulted from Pay Board regulations that emphasize consideration of adjustments at the time of implementation. A consequence has been a pattern of more even distribution of wage adjustments over the life of the contract. Wage increases over the full term of new contracts, however, slowed considerably less than first-year increases— from 8.1 per cent annually in 1971 contracts to 7.1 per cent in contracts signed in the first 6 months of 1972. Contracts signed in 1972 have also been of somewhat shorter duration than earlier settlements. Both reduced front-end loading and shorter contracts reflect the existence of a controls program of uncertain duration, and these tendencies are likely to continue during the stabilization period. Bargaining activity will continue to be light for the remainder of 1972; slightly more than 1 million workers are covered under major contracts coming up for renewal. However, bargaining will accelerate in 1973 as contracts expire in major industries such as trucking, construction, electrical equipment, and autos. During 1973 new contracts affecting more than 4.1 million workers will be negotiated; this is more than twice as many as in 1972. If price increases continue to moderate, a less inflationary pattern of wage increases may be established in these important industries. □ Treasury and Federal Reserve Foreign Exchange Operations This 2 1 st jo in t interim rep o rt reflects the T reasu ry-F ederal R e serve p o lic y o f m aking a va ila b le a d d itio n a l inform ation on foreig n ex change o peration s from tim e to tim e. The F ed e r a l R e serve B an k o f N e w Y ork acts as a gen t fo r both the T reasu ry an d the F ederal O pen M a rk e t C om m ittee o f the F ederal R e serve S y s tem in the con du ct o f foreign exchange o p e r a tions. This rep o rt w as p r e p a r e d by C h a rles A . C o o m b s, S en io r V ice P resid en t in ch arge o f the Foreign D ep a rtm en t o f the F ederal R e serve B ank o f N e w Y o rk , an d S p ecia l M a n a g e r, System O pen M a rk e t A cco u n t. It co vers the p e r io d M arch to S ep te m b er 1972. P reviou s rep o rts have been p u b lish ed in the M a rch and S ep tem b er B u l l e t i n s o f each y e a r beginning with S ep tem b er 1962. The Smithsonian Agreement of December 18, 1971, was greeted with satisfaction and relief by the exchange markets. Rates for a number of European currencies settled at or close to their new floor levels, and sizable reflows of funds to the United States developed through the year-end. Following the turn of the year, how ever, market optimism shifted to an anxious and even skeptical mood as traders began to ponder the long negotiating path to a restructured in ternational financial system. Market concern fo cused particularly on the risk that certain foreign central banks might suddenly withdraw from their Smithsonian commitments to defend their currencies at the new upper limits, and succes sive waves of speculation in January and Feb ruary drove the mark, the guilder, the Belgian franc, and the yen close to or hard against their official ceilings. The central banks concerned intervened de cisively and without hesitation, however, and this demonstration had a reassuring effect. In early March, expeditious congressional action on a “ clean” gold price bill removed another source of uncertainty that had been breeding unsettling market rumors. Simultaneously, the German Government took action to discourage borrowing abroad by German business firms, which had been a major source of buying pres sure on the mark over the the previous 3 years, while the Japanese Government reinstated con trols on speculative buying of the yen. Finally, the interest rate gap between Europe and the United States began to be squeezed out from both sides. As recessionary tendencies contin ued in Europe, discount rate cuts were an nounced in Germany, Belgium, and the Nether lands, while the U.S. Treasury bill rate rose significantly. The dollar showed growing strength and re siliency throughout most of the spring months, as a return flow of short-term funds largely offset continuing deficits in other components of the U.S. balance of payments. This encour aging trend was abruptly reversed midway in June, however, as sterling was suddenly swept off its Smithsonian parity by a speculative wave that had been gathering force for many months past. In allowing sterling to float on June 23, the British authorities indicated that the defense of sterling during the previous 6 days had cost the equivalent of $2.6 billion. Such official intervention to defend sterling was almost entirely conducted in Common Market currencies, in accordance with a British undertaking on May 1 to join with its prospec tive Common Market partners in maintaining a spread of no more than 2 lA per cent between sterling and any other Common Market cur rency. This European Community (EC) agree ment had thus created a dual system of exchange rate limits in which the 2 lA per cent Common Market band became colloquially described as the “ snake in the tunnel” represented by the 757 758 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 4 V2 per cent Smithsonian band. A critical feature of the Common Market 2 lA per cent band was that intervention in dollars was to be confined to circumstances in which a weakening Com mon Market currency should decline the full distance to its Smithsonian floor or a strong currency should rise to its Smithsonian ceiling. Otherwise, maintenance of the 2 lA per cent Common Market band was to be carried out by intervening in each other’s currencies. As sterling came under selling pressure in June, the bank of England accordingly was called upon to offer marks and whatever other Common Market currencies were being quoted at rates 2 lA per cent above sterling, while its European partners bought sterling with their currencies. The general effect of such interven tion to maintain the 2 lA per cent Common Market band was to brake the decline of sterling toward its Smithsonian floor of $2.5471, while simultaneously pulling down the stronger EC currencies well below their Smithsonian ceil ings. In this strained pattern of rates, the mar kets may have sensed a two-way speculative opportunity to go short of sterling and long of continental currencies in the hope of profiting on both. Most of the outflow from London seems to have ended up in the Common Market. On June 23 the British authorities announced TABLE 1 FEDERAL RESERVE RECIPROCAL CURRENCY ARRANGEMENTS In m illions o f dollars Institution Amount o f facility Sept. 8, 1972 Austrian National B a n k ................................. National Bank of B e lg iu m ............................ Bank o f C a n a d a ................................................ National Bank of E>enmark......................... 200 600 1,000 200 Bank of E n g la n d ............................................. Bank of France ................................................ German Federal Bank ................................... Bank of I ta ly ..................................................... Bank of Japan.................................................... Bank of M e x ic o ................................................ 2 ,0 0 0 1,000 1,000 1,250 1,000 130 Netherlands B a n k ........................................... Bank of N o r w a y ............................................... Bank of S w e d e n ............................................... Sw iss National B a n k ...................................... 300 200 250 1,000 Bank for International Settlem ents: Sw iss francs/dollars................................... Other authorized European currencies/ dollars ....................................................... 1,000 T o t a l ............................................................... 11,730 600 their decision to float the pound, in effect tem porarily suspending their participation in the Smithsonian and EC agreements. Following that announcement, other European currencies imme diately rebounded to their Smithsonian ceilings, reflecting market fears of a severe tightening of capital import controls, a joint float of the Common Market currencies, or some combina tion of both. The European currency markets were then closed down, and an emergency meeting of the Community finance ministers was set for the following Monday in Luxem bourg. At that meeting Denmark formally with drew from the EC monetary agreement, while Italy secured a temporary authorization to keep the lira within the 2 lA per cent band by inter vening in dollars rather than in European cur rencies. The finance ministers then reaffirmed their determination to defend both the Smith sonian parities and the Common Market band. Despite this reaffirmation and subsequent drastic controls imposed by Switzerland and Germany to ward off unwanted capital inflows, rumors of a European joint float continued to incite heavy speculative selling of dollars against the stronger European currencies and the yen. By Friday, July 14, the sterling crisis had generated not only the previously noted flight of $2.6 billion of funds from sterling into other Common Market currencies but also additional flows totaling over $6 billion from dollars into various European currencies and the yen. Meanwhile, the U.S. authorities had been considering the advisability of renewed opera tions in the exchange markets, involving, if necessary, Federal Reserve swap drawings that had been suspended on August 15, 1971. On U.S. initiative and with the approval of the German Federal Bank, the first of such exchange operations was launched on July 19 in the form of repeated offerings by the Federal Reserve Bank of New York of sizable amounts of Ger man marks on the New York market. This intervention, which was continued briefly on the following day, was described by Chairman Burns as a move by the U.S. authorities to play their part to restore order in foreign exchange markets and to do their part in upholding the Smithsonian Agreement, just as other countries were doing. The Chairman also indicated that FOREIGN EXCHANGE OPERATIONS 759 TABLE 2 FEDERAL RESERVE SYSTEM ACTIVITY UNDER ITS RECIPROCAL SWAP LINES In millions of dollars equivalent Transactions w ith— System swap draw ings, Jan. 1, 1972 D raw ings, or repayments ( —) 1972 I July 1 Sept. 8 II 1 0 .2 1 > -1 0 .2 ; - 6 6 3 .0 ^ -2 0 .0 Bank o f E n g la n d ................................ 7 1 5 .0 -5 2 .0 German Federal B a n k ...................... 5 0 .0 -5 0 .0 S w iss National B a n k ....................... Bank for International Settlem ents (S w iss fr a n c s )................................. 1,000.0 \ / 4 3 5 .0 1 7 0 0 .0 6 0 0 .0 6 0 0 .0 3 5 .0 3 5 .0 - 3 7 2 .0 the operation would continue on whatever scale and whenever transactions seemed advisable. The U.S. Treasury also confirmed the interven tion, stating in part that: “ The action reflects the willingness of the United States to intervene in the exchange markets on occasion when it feels it is desirable to help deal with speculative forces. The action indicates absolutely no change in our basic policy approach toward monetary reform and the necessary efforts on all fronts to achieve a sustainable equilibrium in our balance of payments.” On August 10, the Federal Reserve Bank of New York intervened in a second European currency, the Belgian franc, which had re mained pinned to its ceiling. In a series of daily operations in some volume, the Belgian franc rate was brought down appreciably below its ceiling and, in the process, some unwinding of speculation on the Belgian franc may have been set in motion. Since July 19, the New York Reserve Bank has intervened in the market on nine occasions and sold in the process $31.5 million of foreign currencies; total offerings were, of course, much larger. All market sales of foreign currencies, either from balances or from small swap draw ings, were fully covered by market purchases as the dollar strengthened on the exchanges. As noted in the preceding report in this series, Federal Reserve swap debt, which had reached a peak of $3,045 million on August 13, 8 T o t a l ................................................... 0 4 5 5 .0 fO N ational Bank o f B e lg iu m ............. Bank for International Settlem ents (B elgian fr a n c s )............................ System swap draw ings, Sept. 8, 1972 1 JK -2 1 I 1 ,7 7 0 .0 1971, had been reduced to $2,855 million by the end of last year.1 Since then, further net repayments of $1,085 million have brought down the total outstanding debt to $1,770 mil lion (Table 2), a reduction of nearly 40 per cent from the August 1971 peak. The bulk of such debt repayments during the period under review was accounted for by liquidation of the remain ing $715 million of an original $750 million drawing on the Bank of England. The sterling needed for such repayments was acquired in regular purchases during June, July, and early August, both through the market and in direct transactions with the Bank of England, plus a sizable direct purchase from the U.S. Treasury of sterling previously acquired in a U.S. Gov ernment drawing on the International Monetary Fund (IMF). In June, $300 million of swap debt to the Swiss National Bank was repaid through a direct purchase of $250 million of Swiss francs from the National Bank, supplemented by Federal Reserve purchases of Swiss francs in the mar ket. In July, the remaining $50 million of swap debt due to the German Federal Bank was liquidated through a direct transaction with that institution. In May, swap debt in Belgian francs was reduced by a $20 million repayment to $470 million equivalent. Finally, in August, new drawings of $10.2 million equivalent were made ^ e e B u l l e t i n , M arch 1 9 7 2 , pp. 2 2 8 - 5 6 . 760 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 discourage inflows of nonresident funds. Spot sterling fell close to the new floor of $2.5471 in late December, as some speculative positions began to be unwound and year-end adjustments were made. Taking advantage of this develop ment, the Federal Reserve acquired sterling in the New York market and repaid, just prior to the year-end, $35 million of the $750 million equivalent swap drawing on the Bank of England that had been entered into in August 1971. After the year-end adjustments were com pleted, however, the initial post-Smithsonian euphoria in the markets faded. The outflow of funds from the United Kingdom dried up rap idly, and spot sterling moved away from the floor. Doubts about the durability of the new exchange rates quickly surfaced, and by midJanuary most other major European currencies were bid up toward, or even above, their central rates. At the same time it became clear that the EC countries were approaching agreement on narrowing the margin of fluctation between their currencies and that the United Kingdom proba bly would participate in the arrangements. Consequently, sterling was bid up into line with the continental currencies, rising by 4 cents to more than $2.59 before leveling off. In early February, following a further decline in Euro dollar rates relative to money market rates in London, the pound advanced to its middle rate. Over the course of that month, sterling weak ened from time to time, reflecting the market’s pessimism over the long-term implications of a protracted coal miners’ strike, but once the strike was settled the continuing general ad vance of other major European currencies had a buoyant effect on sterling. on the Belgian swap line, but these were fully liquidated by early September. In March and July of this year, the U.S. Treasury redeemed in two equal instalments a $153 million equivalent German mark-de nominated note that had been issued to the German Federal Bank under the 1967 military offset agreement with Germany (Table 4). Other foreign-currency-denominated securities were renewed at maturity. As of September 8, out standing U.S. Treasury foreign-currency-denominated securities amounted to $2.0 billion equivalent. STERLING In 1971 the United Kingdom had recorded a large payments surplus, with a substantial gain in official reserves. Meanwhile, however, the British economy had become afflicted by a wage and price spiral that threatened to weaken its competitive position in world markets. More over, a significant proportion of the 1971 reserve gain reflected hot money inflows that could be reversed in short order. Consequently, at the Smithsonian meeting the United Kingdom maintained sterling’s gold parity, thereby lim iting the appreciation of sterling against the dollar to the 8.57 per cent increase in the dollar price for gold. A middle rate for the pound of $2.60571— commensurate with the dollar’s devaluation— was established, and the Bank of England announced official buying and selling rates in conformity with the Smithsonian Agreement’s provision for a band of 4.5 per cent around the new middle or central rates. At the same time the British authorities re laxed the exchange control regulations they had announced in late August and early October to TABLE 3 DRAWINGS AND REPAYMENTS ON FEDERAL RESERVE SYSTEM BY ITS SWAP PARTNERS In m illions o f dollars Banks drawing on System Bank for International Settlem ents (against German marks) .................. T o ta l ....................................................... D raw ings, or repayments ( —) Drawings on Sy stem , Jan. 1, 1972 1972 I r 8.o \ -8 .0 / \ 8 .0 -8 .0 II 6 .0 -6 .0 6 .0 - 6 .0 July 1 A ug. 31 D rawings on System , A ug. 31, 1972 1.0 \ - 1 .0 J 1.0 1L.................. - 1 . 0 Jr FOREIGN EXCHANGE OPERATIONS On March 7, against a background of wide spread market uncertainty and growing specula tion about the readiness of individual central banks to absorb sizable new inflows of dollars, the EC countries announced agreement to nar row the margin of fluctuation between their own currencies to 2 lA per cent by July 1. The market saw this agreement as greatly increasing the likelihood of a concerted European attempt to stem further inflows of dollars— either through new controls or a joint float against the dollar— and there was a rush to stockpile currencies that might become more expensive or even una vailable later on. Although the buying wave was directed with particular force toward continental currencies, demand for sterling was also strong, and the spot rate shot up by almost 5 cents in 3 days to well over $2.65. The flurry soon abated, however, as the U.S. Congress acted on the gold bill, short-term interest rates in this country began to firm, and, following the March central bank meeting in Basle, it was made clear that there was continuing firm support for the Smithsonian Agreement. Sterling, in particular, fell back sharply, especially after the release of British trade fig ures showing a swing into deficit in February. Thus, by the time the British budget was pre sented on March 21, sterling was down to the $2.61 level once again. The budget, which was expansionary, stressed the need for combating the sluggish trend in the domestic economy and the persistent high level of unemployment. In addition, there was a modest relaxation of ex change controls, primarily for capital outflows to the EC and candidate countries, and British firms controlled by residents of those nations were allowed to raise unlimited sterling finance for their operations in the United Kingdom. Following the budget announcement, forward sterling softened somewhat but, reflecting the general pressure against the dollar, spot sterling rose close to $2.62 by the end of March. In April the sterling market was reasonably well balanced, with the spot rate fluctuating around $2.61. On April 28 the United Kingdom discharged the remainder of its debt to the IMF, thereby reconstituting its full drawing rights with the Fund for the first time since December 1964. The repayment required the cooperation 761 1A CHANGES IN EXCHANGE RATES AND OFFICIAL TRANSACTIONS JULY SEPT. NOV. JAN. MAR. MAY JULY SEPT. ___________ 1971_____________________________ 1972___________________ M ovem ents in exchange rates are measured as percentage d e viations o f w eek ly averages of N ew York noon offered rates from the m iddle or central rates established under the Sm ith sonian Agreem ent. Changes in reserves are com puted from the figures published in the International M onetary Fund’s International F inancial S ta tistics and, as such, reflect for D ecem ber 1971 not only actual m ovem ents in reserve assets but also the revaluation, on the basis of the Sm ithsonian A gree m ent, o f assets other than dollars. Changes for January 1972 include this year’s allocations o f S D R ’s. ♦Upper and low er intervention lim its established in D ecem ber 1971. of a number of countries. Under the arrange ment that was worked out, the U.S. Treasury drew SDR 200 million equivalent of sterling from the IMF, thereby reducing the United Kingdom’s repurchase obligation by a corre sponding amount to SDR 950 million. The United Kingdom, in turn, discharged this resid ual commitment with SDR 500 million equiva lent of currencies acquired from third countries against dollars, with SDR 50 million of gold and SDR’s purchased from Canada, and with SDR 400 million out of British reserves. Then, on May 1, the United Kingdom formally began its participation in the EC narrower band ar 762 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 rangement that had been put into effect 1 week earlier. There was little reaction in the market, however, as sterling had been holding well within the 2 % per cent band for some 2 months. Spot sterling remained fairly steady through most of May. Nevertheless, an increasingly pessimistic atomosphere was developing in the market, as price and wage inflation and the continuing series of labor disputes threatened to cut further into Britain’s competitiveness in world markets. The trade deficits, which had appeared in February and had continued in March and April, were taken as a sign that the huge current-account surplus of the past 3 years was already being eroded and might soon be erased. Market pessimism first showed through in a widening of discounts on forward sterling late in May, and in early June spot sterling began to soften as well. The pound was still trading above the middle rate for the dollar but had fallen close to the bottom of the EC band. On June 8, the release of first-quarter balance of payments statistics for the United Kingdom, showing a sharp drop in Britain’s current-ac count surplus, seemed to confirm market fears about the pound’s prospects, and sterling came on offer, with traders beginning to switch into German marks, Swiss francs, and Dutch guilders. Then, on June 15, out of a growing morass of legal and jurisdictional controversies on the labor front, a wildcat dock strike trig gered a new selling wave of both forward and spot sterling. With spot sterling now at the bottom of the EC band, the Bank of England and several Common Market central banks were obliged to intervene heavily in support of the pound against EC currencies. As the pound dipped to $2.58!/2 against the dollar on June 16, it tended to pull the whole band down vis-a-vis the dollar, thereby making the continental cur rencies appear relatively cheap. Meanwhile, sterling’s prospects had become a subject of general debate in the United King dom, especially against the background of Chancellor of the Exchequer Barber’s statement in the March budget address that “ the lesson of the international balance of payments upsets of the last few years is that it is neither necessary nor desirable to distort domestic economies to an unacceptable extent in order to maintain unrealistic exchange rates, whether they are too high or too low .” In parliamentary debate on June 19, an opposition spokesman stated that he did not see how a devaluation could be delayed beyond July or August of this year. Over the next 3 days, enoromous amounts of sterling were dumped on the exchanges. Forward sterling was driven to deep discounts (as much as 15 per cent per annum on 1-month deliveries), and spot sterling was pushed down to as low as $2.5614 against the dollar, even as EC central banks continued their massive support effort to maintain the 2 lA per cent band among their own currencies. In sum, over the six trading days June 15 to 22, such support amounted to $2.6 billion equivalent, financed by exchange transactions with the Bank of England that were to be liquidated by the end of July. Early on the morning of Friday, June 23, with no end to the reserve losses in sight, the British authorities announced: H.M. Government has decided that, as a tempo rary measure, sterling will be allowed to float. This means that for the time being the market rate for sterling will not necessarily be confined within an nounced limits either in respect of the U .S. dollar or in respect of EEC currencies. It is the Government’s intention to return as soon as conditions permit to the maintenance of normal IMF margins round parity and participation in the special EEC currency arrangements. At the same time, the London market was closed through the following Monday and most of the exchange controls applying to nonsterling-area countries were extended to the overseas-sterling-area countries other than the Republic of Ireland. The floating of the pound, and the subsequent withdrawal on the same day of the continental central banks from their respective markets, gravely weakened confidence in the durability of the Smithsonian Agreement and the EC in tervention arrangements. On Monday, June 26, however, the EC finance ministers agreed in Luxembourg to continue to defend the Smith sonian rates and to retain the narrower EC band arrangements, while the pound continued to float. On June 27, when London was the only major European foreign exchange market to resume FOREIGN EXCHANGE OPERATIONS 763 TABLE 4 U.S. TREASURY SECURITIES, FOREIGN CURRENCY SERIES In m illions o f dollars equivalent R edem ptions ( —) Issued to— Outstand ing, Jan. 1, 1972 1972 I II July 1 Sept. 8 O utstand ing, Sept. 8, 1972 German Federal B a n k ............................ German b a n k s ........................................... S w iss National Bank Bank for International Settlem en ts1... 6 1 2 .0 1 53.0 1 ,2 1 5 .4 164.8 -7 6 .5 - 7 6 .5 4 5 9 .0 153.0 1,21 8 .3 170.9 T o ta l ....................................................... 2 ,1 4 5 .2 -7 6 .5 -7 6 .5 2 ,0 0 1 .2 d e n o m in a te d in Sw iss francs. N o t e .— D iscrepancies in totals result from valuation adjustments and from rounding. normal operations, the sterling rate dropped almost to $2.47, but a sharp squeeze for bal ances developed later in the day as deliveries on earlier sales contracts had to be met, and the spot rate temporarily rebounded to $2.513A. Once the squeeze for balances had passed, ster ling dropped off steadily, by a penny or two a day over the course of the next week, to as low as $2.41 lA on July 4 in London. At that point, commercial demand reappeared and the rate recovered to around $2.45. The revival of commercial demand was un derscored by the release of trade figures for June, which had swung back into surplus and confirmed that in fact the United Kingdom was still in current-account surplus. Moreover, the continuing money market squeeze in London tended to support sterling in the exchanges. Even so, new troubles on the labor front, cul minating in a dock strike beginning on July 21, had a disturbing influence on the sterling mar ket, occasionally pulling the rate down sharply. Over the remainder of July, sterling traded in the $2.44 to $2.45 range. On July 31, the United Kingdom settled its debts in connection with the defense of sterling in June, utilizing $1,150 million of funds previously swapped out under special arrangements, $634 million equivalent drawn under the U .K .’s IMF gold tranche posi tion, and $823 million from reserves that at the end of July still amounted to $6,082 million (inclusive of Britain’s remaining $126 million IMF gold tranche position). Meanwhile, as sterling began to decline sharply against the dollar in mid-June, the New York Federal Reserve Bank, acting in close consultation with the Bank of England, began to buy sterling in the New York market to repay the Federal Reserve’s remaining swap commit ment. By the end of June the System had been able to reduce its swap commitment by another $52 million to $663 million equivalent. After sterling was floated, the U.S. Treasury periodi cally bought sterling on days when the rate was declining in New York and by mid-July had purchased a total of $41.5 million equivalent. At that point the Federal Reserve, in order to repay the remainder of its swap commitment in sterling, initiated a program of daily pur chases of sterling, mainly on a direct basis from the Bank of England but also in the market. These purchases, together with sterling acquired from the U.S. Treasury, including the pounds drawn by the Treasury at the time of the British IMF repayment in April, enabled the System to reduce its swap commitment by $405 million equivalent to $258 million as of July 31. The program of daily purchases continued through early August, and by August 14 the Federal Reserve had acquired sufficient sterling to liqui date the remainder of its original swap commit ment of $750 million. Buoyed by a tight domestic money market and continuing commercial demand, sterling rose early in August to trade above $2.45. Announcement of an end to the dock strike and release of a second consecutive trade surplus gave additional support to the spot rate toward midmonth. Subsequently, the squeeze for bal ances eased, with British short-term interest rates declining abruptly, and spot sterling edged to below the $2.45 level in early September. GERMAN MARK Following the Smithsonian Agreement, the German authorities established a new central 764 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 rate for the mark of $0.3103Vs, an effective appreciation of 13.58 per cent against the dollar, and set margins at $0.30347s and $0.3174% on either side of the central rate. None of the restraints against inflows of foreign funds intro duced earlier in 1971 were removed, but the Government announced that it would not avail itself for the time being of its new power to impose deposit requirements of up to 50 per cent against German firms’ borrowings abroad. When exchange trading was resumed, the mark settled well below its new central rate. Except for some modest outflows toward the year-end, there was no significant reversal of the huge speculative positions in marks that had been built up over the course of 1971. Early in 1972 doubts began to spread in the exchange markets that a durable settlement of the international monetary crisis really had been achieved. Moreover, many Europeans were ex pressing concern over the further decline taking place in the U.S. interest rates. With the press and the markets focusing more and more on these issues, the atmosphere deteriorated pro gressively over the early weeks of the new year, and almost any news item or rumor was seized upon as a reason for additional selling of dollars. Funds were shifted into Germany particularly, and in heavy demand the spot mark rose through the new central rate by mid-January. Further waves of nervousness swept through the foreign exchange markets in February. Each time the mark rate was bid up sharply, and the pressures eased only after forceful intervention by the German Federal Bank. Then, late in February, the German authori ties announced new measures designed to lessen the inflow of funds and to defend the Washing ton agreement. These included cuts in the dis count and Lombard rates of the German Federal Bank and a hike in the marginal reserve re quirement against nonresident liabilities. More importantly, the Ministry of Economics and Finance imposed a 40 per cent deposit require ment (B ardepot) on most foreign borrowings of nonbanking enterprises, retroactive to January 1, moving for the first time to curb German corporate borrowings abroad. Following the an nouncement of these measures, the spot rate declined to almost 1Vi per cent below its upper limit by late February. Over the month as a whole, however, German official reserves had increased by $744 million. The demand for marks soon built up again in early March, and the mark was driven up almost to its Smithsonian ceiling in reaction to the growing press discussion of a possible con certed European response to the continued in flux of dollars— through either the introduction of controls or a joint float against the dollar. Following encouraging reports of the Basle meeting of central bankers on the weekend of March 11-12 and indications that U.S. short term interest rates were beginning to firm, the mark backed off somewhat and traded around the $0.3150 level. The mark held at this level well into April, with little reaction to the an nouncement early that month that on April 24 the EC would implement its narrower trading band arrangement (the “ snake in the tunnel” ). By that time, and indeed throughout the sec ond quarter, Germany’s international payments position was undergoing a substantial read justment. The domestic economy had leveled off, but wage and price pressures remained strong in Germany and the rise of the mark rate over the course of the previous year was begin ning to exert an influence on the German trade balance. Thus the trade surplus, which had swelled to substantial proportions toward the end of 1971 and through the early months of 1972, showed a decline in March and subse quent months. Coupled with a further deterio ration in service items and transfer payments, this moved the full current account from surplus to rough balance. The continuing strength of the mark during the spring reflected, therefore, an increasingly heavy influx of capital. These inflows were mainly generated by the market’s ^expectation that there might be a further rise in the value of mark-denominated instruments. At the same time, moreover, German corporations continued to seek funds abroad through a variety of means. To avoid the B ardepot, the corporations ran down their foreign market borrowings by $1.3 billion in March and April but at the same time were able to sell to foreigners a substantial volume of mark-denominated bonds. The exchange markets were in better balance FOREIGN EXCHANGE OPERATIONS in May, but the general uneasiness over the international monetary situation showed through on a number of occasions. Such events as the intensification of the Vietnam war early in the month and Treasury Secretary Connally’s resig nation toward midmonth brought forth a spate of market and press commentary on their ulti mate significance for the monetary system. Comments to the press by officials from either side of the Atlantic, or even rumors of what they might have said, were closely scrutinized for any hint of further moves to be made on the international monetary front. Thus, several times in May the German mark was bid up sharply in the exchanges, pulling several other European currencies along with it. These bursts of demand were short lived, however, and each time the spot rate quickly retreated. The mark was trading quietly around $0.3150 in early June, when swiftly moving events in the sterling market sent shock waves into other markets as well. The rush out of sterling was directed mainly toward the mark, which rose sharply against the dollar. By June 16, sterling had fallen to its intervention point against the mark under the EC arrangements and both the German Federal Bank and the Bank of England had to intervene massively (selling marks against sterling) to keep the spread between their two currencies from widening beyond 2 3A per cent. This heavy injection of marks into the exchanges tended to pull the mark down against the dollar, and the rate dropped to $0.3131 by June 22. When the British authorities announced the floating of the pound on Friday, June 23, thereby dropping out of the Smithsonian and EC agreements, traders immediately began shifting funds out of dollars and into other European currencies as they feared a general abandonment of the Smithsonian rates. As a result, the Ger man Federal Bank was flooded with nearly $900 million within the first hour of trading, after which it suspended operations and closed the exchange market. In trading later that day and on Monday, June 26, in New York, the spot mark jumped 15 points above its Smithsonian ceiling. Following the EC finance ministers’ decision on June 26 to continue to defend the Smithsonian limits and to maintain the EC band, 765 the German authorities announced they would reopen their foreign exchange markets on Wednesday, June 28. When normal trading resumed that day, the spot mark traded just below its ceiling, but marks for future delivery were quoted at large premiums. The next day the German Govern ment moved to back up the decision to support the existing international exchange agreements by announcing a series of measures to tighten controls. The B ar depot requirement was raised from 40 per cent to 50 per cent and was applied to a wider range of borrowings. Sales of do mestic fixed-income securities to nonresidents were made subject to the prior approval of the authorities, to be administered restrictively. The German Federal Bank again raised its reserve requirements against the banks’ foreign liabili ties, so that in effect reserves totaling between 90 per cent and 100 per cent would be required against any additional foreign liabilities of the banks. Finally, domestic reserve requirements were hiked to absorb the liquidity generated by inflows of the nonbanking sector. This increase in domestic liquidity reflected the fact that Ger many’s official reserves, which had risen by $121 million in April and May, had been swelled by a further $2,763 million in June, largely as a result of the intervention to support both sterling and the dollar. The tightening of controls by the German authorities did not immediately allay market anxieties and, in the generalized pessimism over the future of the Smithsonian Agreement, traders hastened to shift even more funds into Germany ahead of the possible imposition of additional controls. Consequently, the mark was in heavy demand early in July and the German Federal Bank was obliged to absorb dollars on a large scale. The buying of marks, and of most major European currencies, continued until the Swiss authorities relieved some of the uncer tainties by taking forceful defensive measures of their own on July 4 and 5. The Federal Bank then intensified its efforts to tighten up the B ardepot and also asked banks to enter into a gentlemen’s agreement neither to sell assets out of their own portfolios to nonresidents nor to arrange or guarantee any sizable foreign credits to residents. In addition, the Federal Bank once 766 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 again boosted its minimum reserve requirements against domestic liabilities to mop up the liquidity flowing directly into German corpora tions. These various measures helped settle the markets briefly, but a new rush into marks and other currencies soon developed in the week prior to the scheduled July 17-18 London meeting of EC finance ministers. With the at mosphere still tense following the floating of the pound, there were reports in the European press suggesting that the EC finance ministers would plan a joint float of their currencies against the dollar, rather than stick to their announced agenda. The market seized upon these reports to mount a new drive out of the dollar and into the mark and other European currencies. With the mark pushed once again to its upper limit, the German Federal Bank had to absorb some $1.1 billion over the 2 days of July 13-14. On Monday, July 17, the EC ministers in London made clear their determination to maintain the Smithsonian exchange-rate structure and emerged with a general agreement on longerterm monetary questions, including the need for par values. The reports out of London gave pause to the markets, and the demand for marks let up over the 2 days of the meeting. The huge technical positions built up over previous days and weeks, short of dollars and long of marks and other currencies, nevertheless remained in tact. By Wednesday, July 19, the mark had edged slightly away from its ceiling and eased further after the New York market opened that morn ing, to around $0.3160 by 11 o ’clock. Shortly thereafter, on the basis of a U.S. Government policy decision, the Federal Reserve Bank of New York placed large offerings of marks in the New York market. These offers were for System account, with marks made available by the U.S. Treasury on a swap basis. Such unex pected intervention generated an immediate market reaction, and traders quickly moved their mark quotations down. As the market backed away, the Federal Reserve’s offering rate was subsequently lowered several times. The opera tion generated considerable market comment and, in response to press inquiries, Chairman Burns confirmed the System’s intervention in marks, adding that such intervention would continue on whatever scale and whenever it was deemed desirable. The following morning in Germany, with the market fully alerted to the news of the U.S. initiative, the spot mark fell further, reaching $0.3152 (some 3A of 1 per cent below the upper limit) by the time the New York market opened. The Federal Reserve followed up with a further offering of marks out of previously accumulated System balances. Over succeeding days, with additional favorable press and market commentary on the Federal Reserve initiative, the mark rate continued to decline. This tendency persisted into early August, with some unwinding of speculative positions, and the rate settled temporarily around $0.3140. By midmonth a more favorable atmosphere developed for the dollar, following the release of improved U.S. balance of payments figures for the second quarter and indications of new efforts by the United States to negotiate a set tlement of the Vietnam conflict. In addition, the various measures taken by the German authori ties in July were beginning to bite. Conse quently, the mark rate dropped further, reaching $0.3134 on August 16, and the Federal Reserve again sold marks to consolidate the dollar’s improvement. These sales brought to $21.4 million equivalent the total of marks sold in market operations. The shift in sentiment in favor of the dollar continued, pushing the mark rate to $0.31261>4 on August 21. On the next day, however, Ger man commercial banks reportedly found them selves short of liquidity to meet their reserve requirements through the end of August. A squeeze developed in the Frankfurt money mar ket, and the banks scrambled to buy marks in the exchanges, setting off a sharp rise in the mark rate before the banks’ liquidity needs were met. When the July trade figures for the United States showing a narrowing of the trade deficit were announced on August 24, however, the mark eased once again. In other operations during the period under review, the U.S. authorities, under agreements with the German Federal Bank, were able to liquidate certain German mark obligations en tered into prior to the floating of the mark in May 1971. In March and July the U.S. Treasury FOREIGN EXCHANGE OPERATIONS purchased sufficient marks from the Federal Bank to redeem in two payments a $153 million mark-denominated note. Moreover, on July 24, the Federal Reserve liquidated its remaining $50 million equivalent mark swap commitment, also purchasing marks directly from the Federal Bank. This repayment placed the $1 billion swap arrangement with the German Federal Bank on a fully standby basis and no new drawings have been made. SWISS FRANC Under the Smithsonian Agreement the Swiss authorities fixed a central rate for the franc of $0.2604Vs— in effect, an increase of 6.36 per cent against the dollar from the franc’s previous parity and of 13.88 per cent from the parity in force prior to Switzerland’s revaluation on May 10, 1971— and announced their new interven tion points, 2 Va per cent on either side of the central rate. Actual trading conditions were little changed, however, since the banks had been allowed to deal throughout and because the restrictions imposed the preceding August re mained in effect. Increases in the banks’ net foreign liabilities over the July 31, 1971, levels continued to be subject to a 100 per cent reserve requirement, and interest payments on nonresi dents’ deposits made after July 31 were still prohibited. In the wake of the Smithsonian Agreement there were modest outflows from Switzerland, and the franc gradually began to ease toward the new floor of $0.2546%. There was no substantial unwinding of speculative positions, however, and the Swiss banks re mained highly liquid as the year-end ap proached. Early in January, with the current account of Switzerland’s balance of payments continuing in small surplus and the markets hesitant in the face of the many monetary issues still to be resolved, the franc rate remained slightly above the floor, even as domestic monetary conditions eased further. By midmonth the market was already beginning to question the durability of the exchange rate realignment, and the spot franc rose along with other European currencies. Over succeeding weeks, as traders grew in creasingly jittery, several rounds of heavy buy ing pushed the franc up to as high as the central 767 rate. At that time, in view of the continuing inflows from abroad, the Swiss National Bank instituted a requirement that 25 per cent of the proceeds of foreign bond issues in Switzerland (which were running at more than twice their volume of a year earlier) had to be converted into dollars by the central bank at the franc’s lower intervention limit. Another wave of de mand for francs developed in early March when, in the general strengthening of European cur rencies, the Swiss franc was rapidly bid up to some 1 per cent above the central rate. The tensions in the foreign exchanges eased abruptly at that point, however, and the franc rate fell back sharply. Since domestic liquidity remained extremely abundant in Switzerland, the decline was steeper in the Swiss franc market than elsewhere on the Continent, and after midMarch the spot rate was again below the central rate. On April 5 the Swiss National Bank and the Swiss Bankers Association agreed on two measures to mop up some of the excess domes tic liquidity. First, marginal reserve require ments ranging up to 20 per cent were introduced against the growth in the banks’ domestic lia bilities since July 31, 1971. Second, the already existing 100 per cent reserve requirement against increases in the banks’ net foreign lia bilities was considerably tightened through a more restrictive interpretation, even though the required ratio was halved. At first, there was little reaction to these measures in the Swiss franc market and the spot rate held fairly steady. But as the market came to appreciate the possi ble consequences of the restriction on the banks’ net foreign currency positions, the franc weakened. Late in April the Swiss banks began to transfer funds to the National Bank under the terms of the tightened reserve requirement against increases in net liabilities to foreigners. An alternative for the banks was to reduce their net external liability positions by purchasing dollars from the National Bank, and on May 2 the National Bank sold $150 million at the rate of $0.2577^ (3.88 Swiss francs) for this purpose. The following day the National Bank announced that it would henceforth be prepared to sell dollars at this higher rate, rather than 768 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 at the official lower intervention point of $0.2546%, thereby reducing the effective range of fluctuation of the Swiss franc. In a parallel move, it lifted to the same level the exchange rate for conversions of foreign bond proceeds raised in Switzerland, while increasing to 40 per cent from 25 per cent the share of such proceeds that had to be converted at the central bank. These measures had no direct impact on the market but, over succeeding weeks, resulted in a further decline in the National Bank’s dollar holdings. The nervousness that broke out in the ex changes at the beginning of the second week of May pushed the franc somewhat higher, but there was never any severe pressure and the spot rate soon receded, declining until the middle of that month. Trading in francs then turned quiet, with the rate about 3A per cent under the central rate and well below the EC currencies. Taking advantage of the relatively weak exchange rate, the Federal Reserve, with the agreement of the Swiss National Bank, initiated a program of moderate purchases of Swiss francs in the mar ket to make a start on covering the System’s swap commitments in that currency— $1 billion equivalent to the Swiss National Bank and $600 million to the BIS. By early June, such Federal Reserve purchases were sufficient, together with $250 million of francs bought directly from the Swiss National Bank to replenish its dollar bal ances, to enable the Federal Reserve to make swap repayments totaling $300 million equiva lent to that bank. The System’s Swiss franc swap indebtedness to the National Bank was thereby reduced to $700 million, while the additional $600 million equivalent Swiss franc drawing on the BIS remained outstanding. Late in May the Swiss National Bank’s sus tained efforts to absorb domestic liquidity began to take hold and the Swiss franc strengthened. On May 30, an erroneous press report from Switzerland to the effect that Under Secretary Volcker had not absolutely ruled out the possi bility of another dollar devaluation set off a particularly sharp reaction in the Swiss franc market. In heavy trading, the rate surged by X A per cent within half an hour. Although the wire service later admitted that it had transmitted its own interpretation of Mr. Volcker’s response CHANGES IN EXCHANGE RATES AND OFFICIAL TRA N SACTION S BILLIONS OF DOLLARS PER CENT For notes see p. 761. to questions and that the Under Secretary had in fact strongly supported the Smithsonian alignment, the market did not immediately re cover from the initial adverse reaction, and the franc swung widely around the central rate over the subsequent days. This misunderstanding was the first of a series of disquieting developments to hit the exchange markets in rapid succession in the late spring, and the Swiss franc became increasingly subject to speculative pressures. Early in June freemarket gold prices— which had already ad vanced sharply the preceding month— surged in a strong speculative outburst on rumors of an increase in the official price of gold. In response, the Swiss franc rose rapidly, moving through its $0.2604Vs central rate. Later in the month, the fever in the gold markets abated and the Swiss banks’ concerns over their midyear liquidity positions were eased by the willingness of the National Bank to extend assistance through short-term swaps. (In fact, it granted a total of $923 million in swaps over the midyear period.) Nevertheless, demand for Swiss francs began to pick up, as funds were switched out of sterling on a progressively FOREIGN EXCHANGE OPERATIONS heavier scale. Since Switzerland is not a party to the EC currency arrangements, the franc rate was not pulled downward, as were many other continental currencies, by the rapid drop of sterling vis-a-vis the dollar. Instead, the spot franc was propelled upward by speculative positioning to $0.2653 by June 22. Following the floating of the pound on June 23, the Swiss National Bank announced that it would not intervene in the foreign exchange market until further notice. The Swiss banks were still free to trade, however, and the franc immediately rose above its ceiling. On June 26 the Swiss authorities took new and more drastic measures to limit the inflow of foreign capital, this time banning the sale to foreign investors of domestic securities, foreign securities de nominated in Swiss francs, and mortgages on land and also prohibiting all sales of Swiss real estate to nonresidents. Following these steps, the franc rate moved back down toward its official ceiling. When other continental central banks reopened for business on June 28, how ever, the National Bank stayed out of the market to assess the situation further, and the franc continued to trade erratically above the upper limit in a thin market through the month-end. During this period, the Federal Reserve sold out of balances small amounts of francs in the New York market, with most of the proceeds used to purchase German marks. When the National Bank resumed operations on Monday, July 3, it warned that a negative interest rate penalty on increases in nonresident deposits in Switzerland would be imposed if the inflow of funds became too large. Nevertheless, there was a heavy demand for francs, and the bank was forced to intervene at the upper inter vention limit. The Swiss authorities moved promptly, therefore, to impose a quarterly 2 per cent tax on any portion of foreign deposits with Swiss banks in excess of the balances held on June 30, 1972. In addition, they extended the prohibition of interest payments on nonresident deposits made after July 31, 1971, to all banks (this ban had previously applied only to deposits with the larger banks), prohibited all banks from having net foreign exchange liability positions (including forward positions) at the close of business on any day, subjected borrowings 769 abroad by Swiss citizens and corporations to the prior approval of the Swiss National Bank, and placed on a legal basis the previous gentlemen’s agreement establishing the marginal reserve re quirements against banks’ net foreign liabilities. This barrage of measures halted the inflows, and the Swiss franc fell away from its upper limit, reaching as low as $0.2647 on July 5. As the July 17-18 meeting of the EC finance ministers approached, the Swiss franc again came into extremely heavy demand, and the National Bank had to absorb just over $1 billion. Once the meeting got under way, however, the market concluded that the anticipated joint EC float against the dollar probably would not ma terialize, and buying pressure on the franc tapered off. When the meeting ended in a reaf firmation of official intent to defend the Smith sonian parities, some offerings of Swiss francs against dollars developed and the franc rate fell rapidly away from its $0.2664Vs ceiling. The downward movement was accelerated by the news of the U.S. authorities’ reentry into the exchanges on July 19 and by the favorable response that action received. The franc reached as low as $0.2641 before leveling off. On July 21, in order to absorb part of the franc liquidity resulting from the heavy mid-July inflows, the National Bank raised its marginal reserve re quirements against increases in the banks’ do mestic and foreign liabilities. The Swiss franc market, no longer fueled by a rapid succession of speculative rumors, then turned very quiet. In mid-August, when senti ment toward the dollar improved in response to the Federal Reserve’s continuing market in tervention and release of improved secondquarter U.S. balance of payments figures, the Swiss franc followed the German mark down ward. By early September, the spot rate was fluctuating around the $0.2645 level. BELGIAN FRANC Following the Smithsonian meeting, the Belgian authorities announced that the franc’s central rate would be set at $0.022313, an effective revaluation of 2.76 per cent against gold and a total appreciation of 11.57 per cent against the dollar. New intervention points were established at 2 lA per cent above and below the central rate. 770 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 At the same time, Belgium and the Nether lands— which appreciated the guilder by the same percentage against the dollar— decided to maintain the close link between their currencies by continuing to intervene when necessary to keep the rate between the franc and the guilder within a 1.5 per cent spread. Moreover, the Belgian authorities maintained the two-tier market structure, with only current transactions going through the official market. When the Brussels exchange market was reopened on De cember 21, the Belgian franc was quoted well above the new floor and rose gradually thereaf ter. By the year-end, when Euro-dollar quota tions fell below comparable Belgian domestic interest yields, the franc reached the new central rate. Early in 1972, the Belgian franc joined other currencies in rising sharply against the dollar, and by February the National Bank had begun to take in dollars, both on a swap and an outright basis. Moreover, in the separate market for financial francs, quotations had risen to a sig nificant premium over the commercial rate. To a large extent, the run-up of the franc reflected relatively high interest rates in Belgium, as well as market fears over the prospects for the Smithsonian Agreement. For its part, the Na tional Bank cut its lending rates three times between the first of the year and early March, with the discount rate reduced from 5 V2 per cent to 4 per cent in Vi per cent steps, but these actions served merely to bring Belgian rates down into line with comparable rates in other centers. At the same time, economic activity was only gradually recovering from a slowdown and Belgium’s current-account surplus remained large. Once the spot rate began to rise, fears of a possible further advance led to a build-up of leads and lags in trade payments, which in turn generated additional demand in both spot and forward markets for commercial francs. Early in March, when there was widespread discussion of a possible common EC response to growing dollar inflows, either through a joint float of their currencies or through administra tive controls to bar these inflows, there was a jump in demand for several currencies, and the National Bank of Belgium again had to take in dollars at the Smithsonian ceiling. On March 9, in an effort to discourage short-term capital inflows, the authorities instructed the banks to avoid any further build-up in their spot liabilities to foreigners without a corresponding increase in their spot foreign assets. This tended to stem the tide for the time being, and the franc rate backed away. With the Brussels money market now highly liquid, and with incentives having opened up in favor of moving into Euro-dollars, the Bel gian franc continued to decline through midApril. The generally improved exchange market atmosphere also encouraged some unwinding of the earlier leads and lags in favor of the franc. Nevertheless, the Belgian current account was still in surplus, and when the domestic money market turned tighter once again late in April while Euro-dollar rates declined, the Belgian franc began to advance. This tendency contin ued through May, when renewed nervousness in the exchanges led to a number of brief spurts in the Belgian franc rate. Late in May, when the Belgian Government needed dollars for cur rent payments, the Federal Reserve purchased francs in a direct transaction with the National Bank and, using these francs as well as some balances on hand, repaid a total of $20 million equivalent of its swap debt to the National Bank. The System’s Belgian franc swap commitments were thereby reduced to $470 million, including $35 million equivalent owed to the BIS. When sterling came under speculative attack in mid-June, the Belgian franc was initially pushed up to its upper limit against the dollar. Sterling soon dropped to its middle rate, and the spread within the EC band thus reached the full 2 Va per cent. Consequently, as pounds con tinued to be dumped on the markets, the Na tional Bank of Belgium joined other EC central banks in the support effort, buying sterling with francs in the market and making francs available to the Bank of England for corresponding inter vention in London. As the whole EC band was pulled down against the dollar by the pressure on sterling, the franc dropped to as low as $0.022537 on June 22, or 1.3 per cent below the ceiling. The floating of the pound on June 23 released the downward pressure on the EC band, and the franc snapped back to its ceiling. After FOREIGN EXCHANGE OPERATIONS absorbing some dollars, the National Bank of Belgium quickly withdrew from the market along with the other continental central banks that had opened that morning. In the limited trading that followed, the franc rate immediately rose above its Smithsonian ceiling. After the EC finance ministers met in Luxembourg on June 26 and made clear their intention of upholding both the Smithsonian and EC currency arrange ments, the Belgian exchange market was reopened on June 28. At first, the rate held just below its upper limit and there was no need for the Belgian authorities to intervene. The grave uncertainties left in the wake of the floating of the pound soon led to new de mands for continental currencies, however, and along with other European central banks the National Bank had to intervene heavily in early July, particularly on July 13-14, just prior to the EC finance ministers’ meeting in London. Reports from that meeting tended to reassure the markets and, as with other currencies, the franc edged away from its upper limit. Never theless, although the German mark, the Dutch guilder, and the Swiss franc all declined fairly sharply over subsequent days, the Belgian franc hovered close to its upper limit. By late July it had moved back to its ceiling and held there into early August, with the National Bank again absorbing dollars almost every day. In part, the relative strength of the Belgian franc reflected the continuing current-account surplus. In addition, the Belgian authorities had worked out a gentlemen’s agreement with the Belgian commercial banks to absorb some of the domestic liquidity created by the earlier official purchases of sterling and dollars, and the banks made sizable deposits with the central bank at the end of July and during most of August. Finally, it was clear that the speculative build-up of the previous month had not been unwound, and the longer the rate held at the ceiling the more entrenched became market ex pectations that the Belgian authorities might not be able to resolve the situation within the con text of the Smithsonian Agreement. In these circumstances, on August 10, fol lowing consultations with the National Bank of Belgium, the Federal Reserve initiated a probing action in the New York exchange market to see 771 whether some shift of expectations could be generated that would pry the Belgian franc loose from its ceiling. As in the case of the operation in German marks in July, the Reserve Bank placed a large offer of Belgian francs in the market at the current rate. As the market backed away, the offer was subsequently moved down and a moderate amount of francs was sold over the course of the day. On the following morning in Europe there was not only some decline of the franc rate but also some sympathetic easing of other currency rates. To consolidate the gain, the Federal Reserve followed up with further offers on subsequent days, but, with the market continuing to back away, only a small amount of Belgian francs was sold. By August 14 the Belgian franc was clearly following the general downtrend of other European currencies, so that no further offers were made. As had been agreed at the inception of the operation, the Federal Reserve covered its franc sales by drawing on its swap line with the National Bank. These drawings totaling $10.2 million equivalent were repaid by early September, as improved condi tions permitted the Federal Reserve to acquire the needed francs through market operations. With the generally improved sentiment for the dollar, the franc continued to decline on its own through the end of August, reaching as low as $0.022743 before steadying in early September. As of September 8, the Federal Reserve swap drawings in Belgian francs remained at $470 million equivalent. DUTCH GUILDER At the conclusion of the Smithsonian meeting, the Dutch Government announced that the guilder would be revalued by 2.76 per cent against gold, thus producing an effective appre ciation of the guilder of 11.57 per cent relative to the dollar. New intervention limits were set at 2 lA per cent on either side of the new central rate of $0.3082. There was little outflow of funds from the Netherlands when the Amster dam market was reopened on December 21 and, with the Dutch current account strengthening against the background of sluggish domestic economic activity, the guilder rate began to rise during late December and early January. With interest rates falling in foreign centers 772 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 early in January, the Netherlands Bank reduced all its lending rates by % percentage point, the discount rate being cut to Ax/i per cent. Domestic money market rates declined in response, but the exchange rate did not follow suit, as there were sizable new direct investment inflows and the underlying Dutch payments position re mained strong. Even more important, the de mand for guilders reflected the exchange mar ket’s growing concern over the viability of the exchange rate realignment negotiated in Wash ington, and the rise of the guilder followed closely the advance of other continental curren cies, particularly the German mark. Conse quently, the guilder rate was ratcheted upward in several stages in January and early February, reaching almost to the upper intervention level. In February the Dutch authorities moved to provide additional liquidity to the Amsterdam money market, first by open market purchases of Dutch Treasury bills and subsequently through exchange market swaps, and these operations relieved some of the upward pressure on the spot rate. Nevertheless, just after mid month a new wave of exchange market uncer tainty briefly pushed the spot guilder to the ceiling, and the Netherlands Bank had to absorb a modest amount of dollars. The market turned quieter through the end of February, and in view of the further decline in interest rates abroad, effective March 2, the Netherlands Bank cut its discount rate by V2 percentage point to 4 per cent. By early March, however, the debate in Europe over alternative means of dealing with dollar inflows was in full swing, with a further extension of capital controls appearing to be the most likely route. Consequently, there was an influx of funds into guilders by traders and investors who feared that new controls could render the guilder more expensive or even una vailable for certain kinds of transactions later on. The heavy demand pushed up the guilder rate, although the Netherlands Bank slowed the advance by entering into new swaps with its banks. Then, on March 7, the EC countries reached the decision to narrow the band of fluctuation between their currencies, and the market took the view that the community would now be in a better position to take common action against dollar inflows—perhaps through a joint float. The demand for guilders thus swelled even further, pushing the spot rate to its Smithsonian upper limit, and over the course of 3 days the Netherlands Bank had to absorb $417 million. On March 9 the Netherlands Bank moved to curb inflows from abroad by prohibit ing nonresidents from making new guilder time deposits or renewing such deposits when they mature and by banning the payment of interest on nonresidents’ demand deposits. At the same time, the central bank restated its determination to maintain its Smithsonian buying and selling rates for dollars. Following these moves, the market turned much quieter and, as new inflows tapered off, the spot rate soon retreated from the ceiling. The Dutch money market was now extremely liquid as a result of the earlier heavy influx of funds, and the guilder tended to drift downward through the second half of March and well into April, steadying only after dropping below $0.3100 in mid-April. Thereafter, the guilder followed the gradual updrift of the German mark and other continental currencies, and by early June was trading quietly around $0.3125. The guilder was then caught up in the rush out of sterling. Although the guilder rate was bid up at first, the operation of the EC currency arrangements eventually resulted in a decline of the whole EC band vis-a-vis the dollar. As sterling weakened, it reached its support point against successive community currencies. By June 22, the guilder too was at the ceiling of the community band— now well below the Smithsonian upper limit against the dollar— and the Netherlands Bank was obliged to buy ster ling with guilders. This additional supply of guilders tended to push the guilder rate still lower against the dollar, to 1.4 per cent below the ceiling at one point. On June 23, following announcement of the floating of sterling, the Netherlands Bank along with other European central banks withdrew from the market. After the EC finance ministers’ meeting on June 26, the Dutch joined others in reaffirming their commitment to the Smith sonian and EC arrangements. The Amsterdam market was officially reopened on Wednesday, June 28, with the guilder trading below its FOREIGN EXCHANGE OPERATIONS 1p IU 773 CHANGES IN EXCHANGE RATES AND OFFICIAL TRA N SACTION S BILLIONS OF DOLLARS PER CENT ■ NETHERLANDS RESERVES 1.00 FRANCE K ■ RAL rate RESERVES E X C H A N G E RATE SEPT. SEPT. For notes see p. 761. official ceiling. Over subsequent days, however, the dollar came under pressure in other conti nental markets and, with exchange controls in other countries deflecting funds away from those currencies, the guilder came into strong de mand, obliging the Netherlands Bank to absorb substantial amounts of dollars. By July 7, stiff measures by the Swiss authorities had helped calm the European exchanges and the guilder edged away from its ceiling. The respite proved only temporary, as the prospective EC finance ministers’ meeting on July 17-18 in London sparked new rumors of a possible joint float against the dollar that led to massive shifting out of dollars into most continental currencies. Along with other central banks, the Netherlands Bank had to absorb progressively larger amounts of dollars. In sum, from the time of the floating of sterling through July 17, the Netherlands Bank took in $543 million at the Smithsonian ceiling. Demand pressures for continental currencies abated considerably when, during the course of the London meeting, the EC finance ministers reaffirmed their determination to defend the Smithsonian Agreement, while focusing their discussion on longer-term issues of monetary reform. Also, on July 17, the Netherlands Bank announced additional measures to curtail capital imports, through both leads and lags in pay ments for merchandise trade and through intra corporate transfers by multinational firms. These steps helped calm the guilder market further, and the rate began to ease away from the upper limit. The Federal Reserve’s reentry into the exchange market through offers of marks in New York on July 19 brought about an easing of the German mark against the dollar over the next few days, and the guilder rate too began to decline. Moreover, as the rate continued to soften through the end of July and into August, previous leads and lags on trade transactions began to be unwound. As a result of this de cline, the spread between the guilder and the Belgian franc reached 1Vi per cent. Under the terms of the Benelux agreement the Netherlands Bank was obliged to sell modest amounts of Belgian francs against guilders in order to pre vent the spread from widening still further. By early September the guilder was trading below $0.3100 in a quiet market. FRENCH FRANC The French balance of payments had been in substantial surplus in 1971, and the franc had remained strong throughout the year. As part of the Smithsonian Agreement, the French Government agreed to keep the gold parity of the franc unchanged, thereby permitting the franc to appreciate relative to the dollar by 8.57 per cent. The new central rate for the franc was set at $0.1954%, with intervention limits set at 2 lA per cent on either side. Although many of the exchange controls imposed in the second half of 1971 were eased or abolished following the Smithsonian Agreement, the French au thorities maintained the basic structure of their two-tier exchange market. Under this system, which subsequently has been liberalized, the Bank of France defends the franc at the pre scribed intervention points only in the official market (through which trade and most service transactions as well as governmental transac tions are effected), while all capital transactions and some service transactions are strictly segre gated in a financial market where the franc rate is allowed to find its own level. 774 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 Despite the strength of the franc during 1971, most market participants had not expected so large an appreciation of the franc against the dollar, and profit-taking brought the rate under heavy selling pressure as soon as the Paris exchange market was reopened on December 21. With leads and lags beginning to be un wound, the French authorities sold a consid erable amount of dollars in the market as the spot franc edged downward almost to its new floor. Selling pressure on the franc let up in the last days of December and, as doubts began to develop in the markets over the durability of the Smithsonian Agreement, the franc rate early in 1972 started a long steady advance. The financial franc, in the meanwhile, had fallen below the official franc’s floor on December 21 as speculative positions were unwound, but it subsequently converged with the official franc. During the first quarter, the French currentaccount balance deteriorated. Furthermore, in January the French authorities took a number of steps to stimulate the domestic economy, including reductions by the Bank of France in its rates on discounts and secured advances of V2 percentage point to 6 per cent and IVi per cent, respectively. While the franc rate might have been expected to soften in consequence, there was simultaneously a general strengthen ing of European currencies against the dollar, and the spot franc quickly rose to a level only slightly below the central rate. In early Febru ary, an additional burst of demand, set off in part by open debate over measures to control short-term capital flows and rumors of growing official support in Europe for a joint EC float, lifted the franc somewhat above the central rate. These speculative pressures continued through much of the month and, with the Bank of France on the sidelines, the rate rose steadily. At the same time, the financial franc was pushed up to a modest premium above the official rate. The market atmosphere deteriorated further when, on March 3, French Finance Minister Giscard d’Estaing warned that the European response to continuing dollar inflows would be a further extension of exchange controls— perhaps at first on a piecemeal basis but later in concert. It was shortly thereafter that the EC finance ministers announced they would soon cut to 2 lA per cent the maximum permissible spread among their currencies. In the general rush into all European currencies that followed, the commercial franc was pushed almost to its ceiling by March 9, and the financial franc, bid up not only by speculative pressures but also by heavy foreign purchases of French securities, surged almost 3 per cent above that level. The flurry was short lived, however, and the commercial franc quickly settled down to a rate well below its ceiling. The financial franc, al though staying above the official ceiling, also eased. At first, the softening reflected a normal technical reaction to the preceding excessive sales of dollars. In mid-March, however, there was a perceptible improvement in market atmo sphere following the regular central bank meet ing in Basle, Switzerland, Secretary Connally’s indication of willingness to discuss the forum for negotiations on international monetary re form, and President Pompidou’s expression of optimism about the international monetary situ ation. Moreover, the French authorities acted at this time to ease domestic monetary condi tions, cutting requirements against the banks’ domestic demand and time deposits (the re quirements against liabilities to nonresidents were, however, kept unchanged), reducing those longer-term interest rates directly con trolled by the Ministry of Finance, and lowering the Bank of France’s domestic money market intervention rates. Further relaxations of monetary policy re lieved buying pressure on the franc until late April. Then, heavy month-end conversions of export proceeds and, later, a temporary liquidity squeeze during the tax-payment period exerted upward pressure on the franc, and the spot rate climbed close to its ceiling. Underlying liquidity conditions continued to ease, however, and, once month-end factors were out of the way, the franc traded quietly just below the upper intervention point until the end of May. At that point the franc rose to its ceiling in response to an erroneous news report of Trea sury Under Secretary Volcker’s press confer ence on May 30. The pressure was especially heavy on June 2, when the Bank of France moved to restrain the growth of the French money supply by raising the reserve requirement FOREIGN EXCHANGE OPERATIONS against increases in bank credit from 2 per cent to 4 per cent. With interest rates in France already higher than in other major European countries, however, the authorities were con fronted with a dilemma since they did not wish to draw in additional funds from abroad. Consequently, the Bank of France reduced its money market intervention rates on successive days to keep domestic interest rates below Euro-dollar yields. With each drop in the do mestic intervention rates, the pressure in the exchange market subsided and the franc tempo rarily edged below its ceiling. Meanwhile, the financial franc had advanced to a premium of over 3 per cent above the commercial rate, reflecting flows of funds into the French stock market and some switching of funds out of sterling. The franc rate was again pushed hard against its ceiling in mid-June, when speculation against sterling began. As the flight from sterling gath ered momentum, large-scale official intervention was required to keep sterling within 2 Va per cent of the franc. Both the Bank of France and the Bank of England had to intervene on a pro gressively heavier scale, supplying francs against sterling to an often hectic market. In the circumstances, the franc was pulled lower and lower vis-a-vis the dollar until it reached $0.1972V£ by the morning of June 22, some 1.4 per cent below the ceiling. With the announcement of the floating of the pound at the opening on June 23, the franc immediately rebounded to the ceiling. After absorbing a sizable amount of dollars, the Bank of France, in a joint move with the other EC central banks that were still dealing in the foreign exchanges that morning, ceased inter vening and the Paris exchange market was closed. When the Bank of France reopened the exchange market on June 28, the franc hovered close to the ceiling, but the market was rela tively quiet and there was little further official intervention. As a result of the inflows during June, French reserves rose by $921 million. During the first half of July, strong specula tive pressure began to build up against the dollar; with the franc rate hard against its upper limit, the Bank of France had to intervene almost every day, often in large amounts. The 775 outcome of the EC finance ministers’ meeting in London on July 17-18 had a calming effect on the market, however, and in line with the general firming of the dollar in mid-July the demand for francs eased to the point where official support tapered off. Nevertheless, the spot rate continued to bump up against the ceiling until news of the Federal Reserve’s in tervention in defense of the dollar on July 19 helped reduce pressure on the franc. Even then the franc continued firm by comparison with other continental currencies, as the French authorities maintained a relatively tight rein on domestic liquidity by raising the banks’ mini mum reserve requirements against both resident and nonresident liabilities by 2 percentage points, effective July 21. The franc remained close to the ceiling in early August, but a somewhat softer tone developed toward mid month following market and press reports that the Federal Reserve had been selling Belgian francs. Moreover the dollar was helped by subsequent news of improved second-quarter U.S. balance of payments figures and reports of further U.S. efforts to find a settlement of the war in Vietnam. The financial franc had been dropping more sharply, falling to a premium of less than 2 xh per cent over the official franc’s ceiling, as new issues of franc-dominated Euro bond issues slackened during the vacation period and as conversions of franc bank notes sold abroad by French tourists swelled. Later in August, both the commercial and financial franc rates firmed but trading remained orderly. ITALIAN LIRA Following the Smithsonian meeting, the Italian authorities established a central rate of $0.001719% for the lira, representing a 7.48 per cent appreciation against the dollar that was slightly less than the dollar’s devaluation against gold. At the same time, they revoked the ex change control regulations introduced as of De cember 6, whereby the Italian banks had been instructed to refuse conversion of foreign cur rencies into lire unless the proceeds were re quired for normal trade or service transactions or for nonspeculative capital transactions backed by the appropriate documentation. After the Italian exchange market was 776 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 reopened on December 21, the spot rate soon settled near its new floor. A prolonged period of political uncertainty and the resultant delay in dealing with important social and economic problems generated some capital outflows. At the same time there were continuing prepay ments of foreign loans. Consequently, even though the already large surplus in Italy’s bal ance of payments on current account was ex panding as the pace of domestic economic activ ity slowed, the spot rate held close to its lower limit through the second week in January. Then, with successive waves of speculation pushing many of the other EC currencies to their ceilings, the lira was pulled upward, eventually reaching some 1 per cent below its central rate where it traded through early March. On March 7 the EC finance ministers an nounced their agreement in principle to narrow the margin of fluctuation between the Common Market countries’ currencies to 2 X A per cent. With other EC currencies at or close to their ceilings, the market responded to this an nouncement by pushing the lira up into the proposed band. For some days the spot rate was, therefore, above the central rate. But the Euro pean markets soon turned quieter and, when the other EC currencies edged away from their upper limits, the lira— near the bottom of the 2 lA per cent band— dropped back to the central rate or just below, where it held through the end of the month. A still softer tone developed in early April, especially when the Bank of Italy acted to help stimulate an upturn in economic activity by relaxing domestic credit conditions. Taking ad vantage of the tendency toward lower interest rates abroad, the bank cut its rates on discounts and secured advances by Vi percentage point to 4 per cent and V/i per cent, respectively, effec tive April 10. (The additional IV2 percentage point penalty for banks making excessive use of central bank credit was, however, main tained.) Simultaneously, interest payments on balances held by commercial banks with the Bank of Italy were discontinued for deposits of more than 8 days, and were reduced from IV2 per cent to 1 per cent per annum for deposits of 8 days or less. The banks were thus induced to place excess funds in the market rather than with the central bank, and shortly thereafter they cut both their lending and deposit rates. The spot lira rate declined until just before the EC currency arrangements limiting the maximum permissible spread between any two EC currencies were put into effect on April 24. At that point the spot rate firmed somewhat, fluctuating about 2 per cent below the strongest EC currency through the month-end. In early May, when the Belgian and French francs moved smartly higher, the lira held at the lower end of the band. But no official intervention was required to keep the lira within the band, as market arbitrage proved sufficient to do so in the absence of strong pressures. As other EC currencies rose during May, the lira rate was pulled higher and it hovered around the central rate until late May. Then, when formal con sultations to form a new government in Italy were undertaken, the lira moved up to about 0.4 per cent above the central rate. The accelerating attack on sterling that de veloped in mid-June brought with it heavy sell ing of lire and an abrupt shift in leads and lags against Italy. By June 22 the spot rate had been pushed to more than 1 per cent below the central rate. When the Italian exchange market re mained closed on Friday, June 23, in the wake of the floating of the pound, reports circulated widely both in the market and in the Italian press that the lira would be devalued or that the Italian authorities were strongly considering withdraw ing from the EC arrangements. In this atmo sphere, the formation of a new Italian coalition government failed to allay the market’s intense nervousness. On June 26 the EC finance ministers, meeting in Luxembourg in the aftermath of sterling’s float, confirmed their intention to maintain the EC arrangements and, to facilitate Italy’s con tinued adherence to the scheme, permitted Italy to intervene for a 3-month period in dollars rather than in EC currencies to keep the lira within the EC band. (The EC arrangements normally permit intervention in dollars only when a currency is at its Smithsonian limits.) In addition, the Italian authorities took several other measures in an attempt to tighten control over foreign currency movements. They pro hibited the crediting of lira notes to foreign FOREIGN EXCHANGE OPERATIONS 111 CHANGES IN EXCHANGE RATES AND ID OFFICIAL TRANSACTIONS .4 .8 5.0 4.0 3.0 2.0 1.0 + 0 1.0 2.0 3.0 tion was required to bring the lira back into the band at around its central rate. Despite this support, pressure on the lira continued as leads and lags remained adverse and Italian residents continued to repay their foreign borrowings. Consequently, the Italian authorities had to in tervene in support of the lira well into July. To help offset the cost of official reserves of this foreign exchange market intervention, the Ital ian Exchange Office required any bank that developed a net foreign asset position to use the surplus foreign exchange to repay out standing dollar swaps with it, while public en terprises were encouraged to tap the Euro-dollar market for large amounts. By mid-July Italian banks were repatriating funds on a large scale, state-owned entities were converting consid erable amounts taken up in the international market, and tourist receipts were starting to build up. Consequently, pressure on the spot rate subsided, and the lira held just around its central rate through the rest of the month. Some of the foreign exchange inflows were added to official reserves, keeping the total reserve cost of the Italian support operations in June and July to around $100 million. This improved atmo sphere continued through August, although the lira eased somewhat along with other European currencies as the dollar strengthened. 1.2 JAPANESE YEN .8 .4 + 0 JULY SEPT. _______________ 1971 NOV. JULY SEPT. For n o tes s ee p. 7 6 1 . accounts, thereby shutting down the export of capital through bank note conversion. They au thorized the banks to assume net foreign liability positions rather than, as before, requiring bal anced positions. And, finally, they reopened the door to nonbank borrowings abroad. Fortified with these measures, the Italian authorities reopened the exchange market on June 28. The lira opened the day well outside the 2 lA per cent EC band, and sizable interven For several years prior to 1971, Japan had recorded progressively larger balance of pay ments surpluses, marked both by a burgeoning trade surplus and by increasingly heavy private capital inflows. As foreign exchange reserves mounted, the Government had moved to impede or offset the inflows of funds by tightening exchange controls, by promoting a shift in the financing of Japanese imports from foreign to domestic sources, by liberalizing some of the controls on imports arid on capital outflows, and by depositing some officially held dollars with commercial banks. While these measures had helped to relieve some of the immediate pressure, the markets became increasingly convinced that the yen was seriously undervalued. Therefore, when the U.S. Government suspended convertibility of the dollar in August 1971, there was a massive 778 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 rush into yen that ultimately forced the Japanese Government to float its currency later that month. Over the following months, the yen rose sharply in the exchange market. But the au thorities, concerned that a rapid run-up in the yen rate might impede the hoped-for recovery in the domestic economy, intervened heavily to moderate the advance. Under the terms of the Smithsonian Agree ment, the central rate for the yen was established at $0.003246%, an effective appreciation of 16.88 per cent against the dollar. The Japanese authorities, in line with actions taken by other countries, immediately abolished some of the severe measures imposed earlier to block the inflow of funds. Then on January 5, with the yen settling near its floor and some reflows developing, the Japanese Government an nounced a further relaxation of exchange con trols, eliminating among other things the re quirement of prior official approval for any prepayment of Japanese exports. Not all of the control apparatus was dismantled, however, and certain measures limiting the foreign positions of Japanese banks were retained. Over the next 2 days a bunching-up of export prepayments gave rise to a burst of demand for yen, and the Bank of Japan absorbed a sizable amount of dollars, but the market then turned quieter. By late January the exchange markets had become increasingly jittery. Most major foreign currencies began to rise sharply against the dollar, reflecting uncertainty over the viability of the Smithsonian Agreement and concern over declining interest rates in the United States. The yen, in particular, was in strong demand as the December 18 appreciation was seen by some as insufficient, given the size of the adjustment needed to bring the Japanese payments accounts into balance. Even with the Bank of Japan intervening to slow the advance, the yen almost reached its upper limit by February 24. In view of this renewed show of strength for the yen, the authorities resumed their efforts to encourage the financing of Japanese trade out of Japanese reserves rather than with foreign credits, and the yen eased. The Ministry of Finance began to make deposits, totaling $200 million in February and $100 million in March, with the Japanese exchange banks to induce those banks to reduce their borrowings for U.S. banks. Deposits with the banks to facilitate the provision of export cover had been initiated in June 1971, and these new deposits raised the total amount transferred out of official reserves to $1.5 billion. Then late in March, the Bank of Japan an nounced that, as an additional step to curb official reserve growth, it would increase its share of the financing of the country’s imports from 30 per cent to 50 per cent over the 4-month period beginning in April; credits already ex tended by the central bank under this program totaled some $1.3 billion at that time. Despite these programs, however, Japan’s official re serves rose by $1.2 billion during the first quarter, exclusive of the 1972 allocation of SDR’s. Early in April the authorities decided to stim ulate some demand for dollars by requiring repayment at maturity of a series of special dollar deposits made the previous fall in con nection with provision of forward cover for small and medium-sized Japanese enterprises. Since the banks did not have the dollars avail able, they were forced to come into the market as buyers of dollars to repay the maturing de posits. Shortly thereafter, Japanese seamen began a prolonged strike, and subsequent work disruptions at the docks and in other industrial sectors curtailed Japanese exports for some time. As a consequence of these developments, the yen declined over much of April and re mained easy in early May. By mid-May the yen dropped to as low as $0.003282, and the Bank of Japan sold dollars to steady the market. On May 23 the Bank of Japan announced that, as of June 1, the 1.5 per cent minimum reserve requirement against the foreign ex change banks’ free-yen liabilities to foreigners would be replaced by a 25 per cent marginal requirement on increases in such liabilities. Also that day, the Japanese cabinet gave approval to a multifaceted plan to stimulate domestic busi ness activity and, at the same time, bring Japan’s external accounts into better balance. The exchange market did not believe these measures would bring any early change in the basic situation, however, and the spot rate held steady through early June. FOREIGN EXCHANGE OPERATIONS With the attack on sterling, the entire Smith sonian alignment appeared threatened and the yen was bid sharply upward. Following the floating of the pound, the Bank of Japan closed its exchange market while also announcing a reduction in its discount rate by Vi percentage point, to 4 Va per cent. Then, in an attempt to isolate the Tokyo market from a new round of short-term inflows, the central bank doubled the reserve requirement for free-yen accounts to 50 per cent and strengthened the regulations against advance payments of Japanese exports. When the Japanese market reopened on June 29, the Bank of Japan had to absorb substantial amounts of dollars through the end of June to hold the spot rate at the ceiling. These inflows and the continuing basic pay ments surplus were more than fully offset by the various measures taken to push dollars out of reserves. By the end of June the special deposits with the banks, which had been in creased in several stages, amounted to $1.9 billion, and the Bank of Japan’s share in import financing amounted to some $2.3 billion. Dur ing the entire second quarter the Japanese au thorities succeeded in pushing some $1.4 billion out of reserves through special operations, bringing about a reduction in reserves of $820 million for the quarter. In early July the exchange markets remained in the grip of uncertainties over the future of the Smithsonian Agreement, and with the yen at its ceiling, the Bank of Japan was obliged to intervene heavily. Although most European currencies eventually edged away from their dollar ceilings, particularly after the July 17-18 London meeting of EC finance ministers and the July 19 exchange market initiative by the Fed eral Reserve, the Japanese yen remained at its upper limit in Tokyo. Demand remained heavy as a result of the continuing large export surplus and renewed inflows to the Japanese stock mar ket. The Bank of Japan, therefore, had to take in dollars almost daily, and sometimes in fairly substantial amounts, during July and August. CANADIAN DOLLAR As other major currencies rose strongly against the U.S. dollar late last year, there was also occasional upward pressure on the Canadian 779 dollar. Heavy buying of Canadian dollars did not develop, however, until the conclusion in early December of the Group of Ten meeting in Rome. Thereafter, the Canadian dollar was pushed as high as $1.00%, and it remained strong until the Smithsonian meeting of the Group of Ten on December 17-18. The communique at the conclusion of the Washington meeting noted that “ Canada in tends temporarily to maintain a floating ex change rate without intervention except as re quired to maintain orderly conditions.” The Canadian dollar immediately rose to nearly $1.00%, but expectations of a further appreci ation dissipated rapidly, and the spot rate dropped back to below the $1.00 level in late December. After easing further early in January, the Canadian dollar settled at around $0.99% by the middle of that month. With the domestic economy expanding rap idly, the Canadian current account had slipped into deficit in late 1971 and the deficit increased in early 1972. Nevertheless, a step-up in loan demand in Canada put pressure on bank liquid ity and in February interest rates began to rise, attracting funds from abroad. This influx of short-term capital, combined with continuing longer-term Canadian borrowings tended to off set the current-account deficit, and the Canadian dollar held relatively steady in the exchanges through late February. At that point, substantial new Canadian wheat sales to the Soviet Union were announced, leading to a bullish reaction in the market. The spot rate for the Canadian dollar began to ad vance, and with rising interest rates in Canada still drawing funds from abroad, the rate soon rose above $1.00 once again. As it has done throughout the period of the floating rate, the Bank of Canada intervened intermittently on both sides of the market to moderate fluctua tions in the rate, and with the Canadian dollar rising on balance, official reserves rose by $189 million over the first 3 months of the year. During the second quarter the Canadian dollar came into strong, persistent demand. On occa sion, this demand reflected the general uncer tainties that were having such profound effect on other currency markets. Nevertheless, the growing strength of the Canadian dollar 780 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 throughout the spring was more clearly traceable to developments in Canada’s own payments position. Canada’s current account improved sharply during the second quarter, with a swing of some $400 million away from the exceptional deficit of the first quarter. Moreover, the Cana dian provincial governments and public utilities borrowed heavily abroad through bond issues, particularly in May. In addition, domestic credit conditions in Canada continued to tighten, and the chartered banks moved aggressively to at tract funds. The consequent heavy demand for Canadian dollars drove the spot rate up by more than 2 cents from late April through early June, to about $1.021A. At that point, the squeeze for balances in Canada became acute, and the chartered banks, facing heavy loan demand but under pressure not to raise their prime rates above 6 per cent, had begun to offer certificates of deposit (CD’s) at yields of as much as 6 V2 per cent. This naturally drew in still more funds, pushing the Canadian dollar to almost $1.02%. The Cana dian authorities then moved to forestall a further rise in the exchange rate by prevailing upon the chartered banks to cut back their rates on CD’s, effective June 12. Subsequently, other Canadian money market yields also dropped back, as loan demand eased somewhat. The Canadian dollar began to ease in the exchanges, reaching $1.011/2 by the end of June. Over the second quarter as a whole, official intervention in a market that was rising on balance resulted in a substantial net reserve gain of $328 million. Trading turned much quieter in July, and the Canadian dollar held fairly steady between $1.01% and $1.01% throughout the month. With the onset of seasonal strength, a somewhat firmer tone emerged in August and the spot rate edged slightly higher. On the demand side the market has come increasingly under the influence of a wide vari ety of administrative restraints imposed by Eu ropean governments and central banks over the past year. In several countries, access by cor porations to the market has been severely cur tailed in order to restrain further accretions to official dollar reserves. In Germany, in particu lar, corporate borrowings in the Euro-dollar market were limited by fears of the impending imposition of compulsory cash-deposit require ments for nonfinancial enterprises, even before the actual implementation of the B ardepot on March 1. In addition, in many countries various barriers have been erected that prevent banks from converting Euro-dollar borrowings into local currencies, and these and other impedi ments to Euro-dollar borrowings were rein forced during periods of pressure on the dollar early this year and again following the currency crisis in June. As a result of these constraints and of the decline in interest rates in European domestic loan markets, the demand for Euro-dollars in major European countries tended to be weak during most of the spring and summer. How ever, the contraction of demand from traditional sources was largely offset by a sharp rise of borrowings, mostly for distant maturities, by YIELD COM PARISONS 3-M O N TH M A T U R IT IE S E X C E P T W HERE NO TED CENT 10 EURO-DOLLAR On the whole, Euro-dollar rates have been rela tively stable since early 1972, although for brief periods speculative flurries and exchange market uncertainties have exerted upward pressure on the rate level. In contrast to the wide rate fluc tuations during the preceding year, the weekly average of daily rates for the 3-month maturity remained within a relatively narrow range. 0 JULY SEPT. 1971 NOV. JAN. MAR. MAY 1972 JULY SEPT. Euro-dollars are w eek ly averages of daily rates; C D ’s W ed nesday data. FOREIGN EXCHANGE OPERATIONS public and semipublic institutions in developing countries. Much of this expansion of loans to non-European borrowers reflected the aggres sive efforts of major European banks that were flush with funds to find new takers for Euro dollar loans. Eastern European countries also took advantage of the ample supply of Euro dollar loans. These various borrowings tended to cushion rate pressures arising from the disappearance from the market of some major Euro-dollar borrowers. Nevertheless, for protracted periods, notably during the April-June period, overnight Euro-dollar rates remained substantially below the Federal funds rate, providing some of the New York agencies and branches of foreign banks with opportunities for arbitraging between the two markets. Some U.S. banks also took advantage of the relatively attractive rates to borrow overnight Euro-dollars. On the supply side, both U.S. residents and non-U.S. holders of dollars found the market increasingly attractive during the early months of the year, when short-term interest rates in the United States dropped much more sharply than 3-month Euro-dollar rates. Supplies from European official sources were held back as a result of the June 1971 agreement of the central banks of the Group of Ten countries not to place additional dollar balances in the market; how ever, supplies from non-European official sources expanded further, as monetary reserves of many countries continued to rise. The relative attraction of the market to European commercial banks also increased, as the relaxation of monetary policy by several eastern European countries during the January-April period rein forced a general trend toward lower interest rates. Against this background, Euro-dollar interest rates tended to move downward in sympathy with U.S. domestic interest rates early in the year. Then, rates began to rise sharply in a belated response to the turnaround in U.S. in terest rates in late February. This rise proved short lived, however; when the usual quarterend pressures failed to materialize and domestic European money market rates declined further, rates on all Euro-dollar maturities began to drift lower again. 781 YIELD COM PARISONS 3-M O N TH M A T U R IT IE S PER CENT 10 U.K. LOCAL AUTHORITY SEPT. Weekly averages of daily rates. In April, with U.S. interest rates moving up and with Euro-dollar rates remaining under pressure, the differential between the 3-month Euro-dollar rate and that for U.S. CD’s nar rowed appreciably. The spread between the two rates had been in excess of 2 per cent in the middle of January; it fell to less than 1 per cent in April. During the remainder of the spring, conditions in the Euro-dollar market were gen erally more comfortable. Thus, by early June the Euro-dollar/CD spread had narrowed further to only 40 basis points. The run on sterling, which had developed in mid-June, at first had little direct impact on the Euro-dollar market. As sterling weakened, the central banks of the EC intervened in the market by selling their own currencies. Several Euro pean currencies dropped to levels that the mar ket considered unsustainably low in dollar terms. As a result, these currencies were bought heavily with dollars. The financing of these purchases brought about a new demand for Euro-dollars that, coupled with some midyear demand, pushed rates up once again. On June 23, the day the British authorities yielded to the intense market pressure and al lowed the pound to float, the 3-month rate rose as high as 6 per cent and 7-day Euro-dollars reached a peak of 7 per cent. Then, with the passing of the immediate effects of the specula 782 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 tive buying of continental European curriencies and of the midyear pressures, the rates on most Euro-dollar maturities eased somewhat. How ever, the Euro-dollar market remained suscepti ble to the anxieties of the foreign exchange market, and during the period of heavy pressure on the dollar in the exchanges in early July there were periodic scrambles for funds to cover short positions. When the exchange markets turned calmer after mid-July following the resumption of Fed eral Reserve operations in defense of the dollar, Euro-dollar rates began to edge downward. After a brief squeeze at the month-end, the market stabilized in early August, with the 3month rate fluctuating narrowly around 5 Vi per cent per annum. The tone of the market was nevertheless fairly firm, as U.S. short-term rates tended to rise and some new demands came into the market. In particular, Italian public cor porations resumed their borrowings of Euro dollars in response to official encouragement, and the squeeze for sterling balances in London also tended to draw funds out of Euro-dollars. Yields On Newly Issued Corporate Bonds With this issue of the B u l l e t i n , the Board of Governors is beginning to publish a series of yields on new issues of corporate bonds. Monthly and quarterly data for 1960 to 1972 and weekly data for 1972 are shown in Table l . 1 Yields are based on prices asked by un derwriting syndicates and do not necessarily coincide with market clearing prices. A com panion series for yields on recently offered cor porate bonds— which reflects free market yields— is being prepared for publication later. Yield series on seasoned corporate bonds carry the undesirable feature of generally tend ing to understate both the level and the move ment of yields in thfe new-issue market. Several factors account for this behavior. One, the lower yields usually found on seasoned bonds may stem from market imperfections that cause an appreciable lag in yield adjustments between newly issued and seasoned bonds. Two, bonds in a seasoned bond series often carry noncurrent coupons— this has been true especially for the period since the mid-1960’s— that translate into bond prices considerably above or below par. When corporate bonds trade at such prices, pre vailing yield differentials may reflect the effect of capital gains taxes, call-price restraints, or other considerations, which are infrequently if ever encountered in the new-issue market. And three, both the reliability and the availability of bidand-asked quotes on seasoned bonds leave something to be desired. For these reasons, the new-issue yield series provides a more sensi tive measure of interest rates on corporate bonds— one that should be useful in analyzing current market developments and in conducting certain longer-term research projects. lrThis series was developed by James L. Kichline, P. Michael Laub, and Guy V. G. Stevens. W eekly data beginning Jan. 1, 1960, are available upon request from Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, W ashington, D.C. 20551. The nature of the public market for corporate bonds presents several obstacles to the develop ment of a new-issue yield series. There are relatively few new public offerings of bonds in any given week. And on occasion there may be none. More importantly, the relatively small number of observations are for bonds with sub stantial heterogeneity. Newly issued bonds in any week may come from one of a number of industry groups, and they may have different default risks, call options, call schedules, ma turities, and so on. The market valuation of some of these characteristics varies over time, particu larly for the call option and for default risk. In order to track accurately the level and the changes in a “ pure” yield on a newly issued corporate bond over time, it is necessary to measure the yield on a bond with invariant characteristics— in effect, a hypothetical new bond. This standard bond is defined as a new straight-debt, long-term (20 years or longer) utility issue, rated Aaa by Moody’s Investors Service, Inc., carrying 5-year call protection, and underwritten by a process of competitive bidding. Since the hypothetical bond is a new issue, it is also assumed to carry a current coupon. Although these characteristics were chosen somewhat arbitrarily, they represent features that have been common to a large number of the bonds offered to investors in recent years. Since there are many weeks in which no standard bond is offered, weekly yield informa tion on newly issued bonds is obtained from bonds with characteristics other than those of the standard bond. Using such information re quires a model that explains the market valua tion of heterogeneous bond characteristics. The model employed relies upon existing theory whenever possible; it is basically a nonlinear regression model that can be used, when one has good estimates of its parameters, to calcu late the values of the heterogeneous charac teristics on observed newly issued bonds and to 783 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 784 ible bonds, serial issues, offerings of natural gas pipeline companies and foreign companies, and bonds guaranteed by the U.S. Government. Details of the model, the estimation procedures, and a discussion of the results will be presented in a forthcoming Federal Reserve Staff Eco nomic Study, which will be summarized in the arrive ultimately at the estimated yield on the standard bond. The parameters of the model were estimated with a sample of 1,422 new issues covering the period January 1960 through February 1972. All long-term, straight-debt issues rated Aaa, Aa, or A by Moody’s Investors Service, Inc., were included in the sample. Excluded were convert B u lle tin . □ TABLE I NEW-ISSUE AAA UTILITY BONDS In per cent Period 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 M onthly and quarterly, 1 9 6 0 -7 2 Jan.............. F eb ............. Mar. A pr............. M ay ........ June ........ July A u g ............ S ep t............ O ct............. N ov. D e c ............ 4 .9 3 4 .8 6 4 .7 5 4 .7 4 4 .7 6 4 .6 2 4 .4 9 4 .1 9 4 .4 0 4 .5 4 4 .6 0 4 .7 0 4 .11 4 .0 5 4 .0 5 4 .3 6 4 .3 8 4 .6 2 4 .4 2 4 .5 4 4 .4 3 4 .3 0 4 .3 8 4.51 4 .3 6 4 .4 0 4 .2 8 4 .1 4 4 .1 2 4 .1 3 4 .2 8 4 .2 5 4 .0 6 4 .1 3 4 .0 4 4 .0 9 4 .0 8 4 .1 2 4 .1 2 4 .2 0 4 .2 0 4 .1 9 4 .2 3 4 .2 0 4 .2 5 4 .2 3 4 .2 9 4 .3 5 4 .3 3 4 .2 5 4 .3 6 C1) 4 .3 7 4 .3 9 4 .3 4 4.31 4 .3 2 4 .3 2 0) 4 .3 9 4 .3 0 4 .3 6 4 .3 8 4 .3 9 4 .4 2 4 .4 7 4 .4 9 4 .5 6 4 .5 8 4 .5 9 4 .6 7 4 .8 4 4 .7 8 5.01 5.21 5.0 7 5 .2 7 5 .3 7 5 .5 2 5.81 5.8 5 5.73 5.81 5 .73 5 .1 8 5.21 5 .3 6 5 .4 2 5 .7 0 5 .8 7 5 .8 7 5 .9 9 5 .9 6 6 .1 9 6 .4 7 6 .5 9 6 .2 9 6 .2 5 6 .5 0 6.51 6 .7 4 6 .6 9 6.4 8 6.1 8 6.25 6 .5 0 6 .6 6 6.9 3 6 .9 8 6 .9 8 7 .3 8 7 .1 8 7 .3 2 7 .6 9 7 .6 6 7 .7 2 8.1 5 8 .1 6 8 .4 8 8 .8 2 8 .5 9 8.53 8 .6 4 8 .6 9 9 .0 9 9 .2 5 8 .7 9 8 .7 2 8.6 3 8.81 8.51 7.9 3 7 .4 3 7 .3 3 7 .5 9 7 .4 8 8.01 7 .9 8 8 .0 4 7.71 7 .6 8 7 .5 0 7 .3 8 7 .2 8 7.21 7 .3 4 7 .2 4 7 .4 5 7 .3 8 7 .3 2 7 .3 8 7 .3 7 Q 1 4 .8 5 4 .7 2 4 .3 8 4 .6 2 4 .0 8 4 .5 4 4 .4 6 4 .3 9 4 .3 4 4 .1 3 4.21 4 .0 8 4.11 4 .2 0 4 .2 3 4 .2 9 4.31 4 .3 7 4 .3 2 4 .3 4 4 .3 5 4 .4 3 4 .5 5 4 .7 0 4 .9 9 5 .2 2 5 .7 4 5.7 5 5.2 5 5 .6 7 5.9 3 6 .3 7 6 .3 4 6 .6 4 6 .2 9 6 .6 6 7.11 7 .3 9 7.8 3 8 .4 4 8 .5 9 9.01 8 .7 2 8.51 7 .4 6 7.7 8 7 .8 3 7 .4 2 7 .2 6 7 .3 8 Q2 Q3 Q4 ........ ........ ........ ........ W eek ly, 1972 Jan. 7 ........ 14 21 28 7 .1 8 7 .1 0 7 .1 8 7 .3 9 Feb. 4 11 18 25 7 .2 2 7 .4 4 7.31 7 .3 5 Mar. 3 10 17 24 31 7 .3 2 7 .0 8 7 .2 4 7 .3 2 7 .2 9 Apr. 7 14 21 28 7 .3 4 7 .4 6 7 .6 0 7.41 M ay 5 ........ 12 19 26 7 .4 0 7 .4 0 7 .2 9 7 .4 9 July 7 14 21 28 June 2 ........ 9 16 23 30 7 .2 2 7 .2 7 7 .3 5 7 .3 0 7 .4 2 A ug. 4 11 18 25 Sept. 1 8 1In these time periods, there were no new issues that met the criteria for inclusion in the series. N o t e .— B oard o f G overnors of the Federal R eserve System . 7.3 5 7 .3 2 7 .3 7 7 .4 8 .... 7 .4 0 7 .3 7 7 .3 2 ....... 0 ) 7.41 7 .3 8 Statement to Congress Statem ent by A rthur F. Burns , Chairman , B oard of G overnors of the Federal Reserve System , before the Subcommittee on Interna tional Exchange and Payments of the lo in t E co nomic Com m ittee , Septem ber 15, 1972. Nine months have elapsed since last December when the finance ministers and central bank governors of the Group of Ten countries met at the Smithsonian Institution and reached an agreement on realigning the rates at which major currencies are to ‘exchange for one another. During this period, exchange markets have al ternated between calm and uneasiness. The immediate reaction of the financial world to the Smithsonian Agreement was one of over whelming approval. After the turn of the year, however, the earlier enthusiasm gave way to more cautious appraisal. Many market participants expected a large return flow of capital to the United States to materialize right after the December meeting. This did not happen. A decline of interest rates in the United States relative to those abroad was partly responsible for inhibiting the reflow of funds. Another factor was the initial low level of foreign exchange rates within the wider ex change margins agreed to at the Smithsonian meeting. With the major European currencies below their central values, temporary holders of those currencies sensed a possibility of mak ing a larger profit by delaying a shift back into dollars until the dollar prices of foreign curren cies approached closer to their upper limits. And once major European currencies strengthened within the margins, fears developed that some governments would fail to defend the Smith sonian exchange rates. But as successive speculative episodes oc curred in January, February, and early March, the foreign central banks intervened decisively. Their clear determination to uphold the new system of exchange rates had a reassuring effect on the market. Moreover, short-term market interest rates began rising somewhat in the United States while they declined abroad. This convergence of international interest rates helped to improve the atmosphere of foreign exchange markets. So too did prompt passage by the Congress of the Par Value Modification Act, known popularly as the gold bill. Confi dence in the new system of exchange rates therefore improved and markets became more orderly. Indeed, between mid-March and mid-June a sizable reflow of capital to the United States actually materialized. This reflow more than offset our continuing deficit on current account. Since the United States ran a surplus in its official settlements balance during this period, the dollar naturally strengthened in exchange markets. This encouraging developm ent ended abruptly in June as sterling came under increas ing pressure. Today’s hearing is hardly the occasion to discuss Great Britain’s problems, except to note that sharp and persistent wage and price advances weakened the market’s confidence in the ability of Britain to continue to defend its new exchange rate. On June 23, after suffering a huge decline of monetary re serves, the British Government announced its decision to float the pound. In the weeks following the British decision, exchange markets were again in turmoil and the dollar again weakened. Most of the major Eu ropean currencies and the Japanese yen moved to their Smithsonian ceilings as market partici pants sought protection against the possibility of tighter foreign restrictions on capital imports, a float of Common Market currencies, or some combination of both. Speculative waves buf feted the markets daily, and several countries responded by adopting new restrictive measures on capital inflows. By Friday, July 14, the sterling crisis, besides causing a shift of $2.6 billion from sterling into Common Market cur rencies, led to an additional flow of over $6 785 786 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 billion from dollars into European currencies and the yen. A period of relative calm was finally restored after mid-July and has been maintained since that time. On July 17-18, the Common Market finance ministers and central bank governors met in London and reaffirmed their determi nation to maintain the Smithsonian pattern of exchange rates while discussions were proceed ing on longer-term reform of the international monetary system. On July 19, the Federal Re serve System, acting in collaboration with the Treasury, resumed operations in the foreign exchange market. These two actions were en tirely independent. Both played a major role in arresting disorderly speculation and renewing market confidence. Officials of the Federal Reserve and the Trea sury had been considering for some time the advisability of renewed operations in the ex change markets that would involve— among other things— a resumption of Federal Reserve swap drawings that were suspended on August 15, 1971. Once a governmental decision to reactivate the swap network was reached, the Federal Reserve was ready to move. The first of these exchange operations occurred on July 19 when the Federal Reserve Bank of New York made repeated offerings of sizable amounts of German marks on the New York market. I explained at the time that this operation was undertaken to help restore order in the foreign exchange markets, that the United States was simply doing its part in upholding the Smith sonian Agreement just as other countries were doing, and that the operation would continue on whatever scale and in whichever currencies seemed advisable. As this Committee doubtless knows, the American intervention in the ex change market was very favorably received by financial observers and participants both in the United States and abroad. The New York Reserve Bank has recently intervened in the market for Belgian francs as well as for German marks. In all, the Bank has intervened in the exchange markets on nine occasions and in the process sold about $32 million of foreign currencies. This amount, while relatively small, needs to be interpreted in the light of two major facts: first, the amount offered by the Bank for sale was much larger; second, in view of the extensive swap facilities outstanding, their reactivation meant that the amount that could at any time be offered for sale was vastly larger. The second of these facts has been a matter of general knowledge, and it was sufficient to make even reckless specula tors stop and think. As the dollar strengthened on the exchanges, all sales of foreign currencies by the Federal Reserve that have taken place since July 19, whether from balances on hand or from swap drawings, were later fully covered by market purchases. The Federal Reserve’s foreign exchange operations started in 1962 and have been reported semiannually since then. The latest report, which describes operations through Sep tember 8, was released just a few days ago. With your permission, I would like to submit it for the record. Let me call your attention now to a few salient facts concerning the swap facility— that is, the network of reciprocal currency arrangements that the Federal Reserve maintains with foreign central banks. This facility encompasses 14 central banks and also the Bank for International Settlements. The total amount that the Federal Reserve can draw on these institutions under outstanding arrangements is $11,730 million. By August 15, 1971, the amount actually drawn— that is, the Federal Reserve’s debt to foreign institutions— had reached a peak of $3,045 million. Since then, substantial repayments have taken place, and the outstanding debt stood at $1,770 million on September 8 of this year. Although profit considerations have never been the primary factor in the swap transactions, the Federal Reserve may either earn a profit or incur a loss in the course of using the swaps. A swap drawing by the Federal Reserve entails an obligation to deliver a specified amount of foreign currency at a future date. If the Federal Reserve acquires the currency needed for repayment of the swap at a dollar price that is lower than the price at which it was initially sold, a profit is made on the two transactions taken together. A loss results in the reverse case when the foreign currency appreciates between STATEMENT TO CO N G RESS the time of the drawing and the time it is paid off and the required amount of foreign currency is therefore purchased at a higher price. As already noted, the Federal Reserve’s out standing swap commitments on August 15, 1971, amounted to $3,045 million. Inasmuch as the dollar prices of the affected currencies— namely, Swiss francs, Belgian francs, pounds sterling, and German marks— have risen since then, the Federal Reserve has already incurred or will probably need to incur losses in liqui dating these drawings. The total loss is presently estimated at about $160 million. Two related facts have a vital bearing on this loss figure. First, from the inception of the swap network in 1962 until August 15, 1971, the Federal Reserve had a cumulative profit on its foreign exchange transactions of $25.6 million. The second and more basic fact is that the expected Federal Reserve loss on foreign cur rency transactions undertaken prior to August 1971 is offset by the Treasury’s incremental profit on gold account. Prior to the suspension of convertibility on August 15, 1971, foreign central banks taking in dollars could, under the Bretton Woods Agreement, convert such dollars into gold or other reserve assets. The swap transactions that were carried out in 1971 and earlier years served to defer or to reduce de clines in reserve assets that would otherwise have occurred. Since gold was revalued in May of this year, the Treasury has profited substan tially from the revaluation of the additional amount of gold that it now holds precisely because foreign central banks were willing to accept Federal Reserve swap drawings instead of demanding reserve assets from the Treasury. All along, the primary purpose of the swap facilities that I have been discussing has been to serve as a first line of defense against disrup tive speculation in exchange markets. Future foreign exchange operations by the Federal Re serve will continue to be guided by this objec tive. As in the past, operations in the currency of a particular country will be conducted only after full consultation with the central bank of that country. In the new phase of operations, however, we shall not be confronted with the necessity of 787 drawing on swap lines as an alternative to con version by foreign central banks of dollars into gold or other reserve assets. In the new opera tions, market intervention will be on the Federal Reserve’s initiative. It will be undertaken only to prevent or counteract disorderly market conditions and will be in such amounts and at such times as are judged likely to have a favor able market impact. Swap drawings will not be made for the purpose of providing medium- or longer-term financing of the U.S. payments deficit. Nor will they be used as a substitute for needed adjustments in basic economic poli cies. Let me turn next to a brief discussion of recent balance of payments developments. The world payments situation continues to be plagued by large imbalances, despite the fact that the Smithsonian exchange rates are more appropriate than those that prevailed before Au gust 1971. The U.S. deficit on current account and long-term capital transactions— sometimes called the “ basic” deficit— has continued to be disconcertingly large, reaching an annual rate of nearly $11 billion in the first half of this year. Meanwhile, other countries have been ex periencing large payments surpluses— not only Japan and some industrial countries in Europe, but also many of the nonindustrial countries. We knew, of course, at the time of the Smithsonian Agreement that it would probably take 2 or 3 years for exchange rate adjustments to work out their full remedial effects. We also knew that business recovery in Europe and Japan was lagging behind the recovery in the United States, and that this divergence of business-cycle phasing would of itself delay resto ration of equilibrium in our balance of pay ments. Under the circumstances, it would be entirely premature to reach a pessimistic conclusion about the longer-run outlook for our international transactions. It should, however, be noted that the needed adjustments of pay ments imbalances, particularly in our merchan dise trade, are taking place more slowly than had been hoped or anticipated. One need not be a great optimist to argue that several forces are at last working in the direction of bringing about significant improve 788 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 ment in the over-all balance of our international payments. These include, first and foremost, the better performance of costs and prices in this country during the past year than in other in dustrial countries; second, the impact of the exchange rate changes of last December, which in time should appreciably moderate the growth of our imports while stimulating the expansion of exports; third, the cyclical recovery now under way in Japan and Europe, which should increase the demand for our exports; and fourth, the strong expansion of our domestic economy, which should— besides helping to attract foreign capital to this country— make American inves tors more willing to put their dollars to work at home rather than abroad. Still another encouraging fact is the growing awareness— emphasized in the recent IMF report on international monetary reform— that the status of international payments imbalances requires continuing review by both deficit and surplus countries. Finally, I want to comment briefly on the prospects for international monetary reform. The governments represented at the Smithsonian conference recognized that the agreement they had reached represented only the first step in rebuilding monetary order. Although the Smithsonian meeting— and conversations since that time— have set the stage for realistic in ternational negotiations, they have done no more than that. The uneasiness and turmoil that have characterized exchange markets in recent months, the violent movements of short-term capital from one currency into another, the new capital controls that various governments estab lished in reacting to these movements, the floating of the British pound— all these indicate the urgent need for early rebuilding of the in ternational monetary system. Fortunately, it now appears that substantive negotiations will get under way promptly. The Committee of 20 in the International Monetary Fund will begin to function at the Fund-Bank meetings the week after next. The Deputies of the Committee of 20 should be able to meet frequently thereafter, canvass different ap proaches, and seek diligently to narrow the differences of view that presently prevail among national governments. Many important issues will have to be re solved in the forthcoming negotiations. They include questions about the future monetary role of gold— a subject in which this subcommittee has indicated a special interest and on which Under Secretary Volcker testified earlier in the week. In general, I agree with the views that he has expressed. More specifically, I believe that the monetary role of gold will continue to diminish in the years ahead, while there will be a continuing increase in the importance of SDR’s. In discussing international monetary reform, we should guard against the tendency to be preoccupied with gold. Other issues deserve the greater part of our attention. Let me note some of them. Ways need to be found, first of all, to assure a more prompt adjustment of payments imbal ances than characterized the practical workings of the Bretton Woods system. Discussion of this objective and the means to attain it will in turn necessitate a thoroughgoing reexamination of the provisions of the IMF Articles of Agreement dealing with par values and exchange-rate flex ibility. Under the monetary system that prevailed before August 1971, there was a tendency to equate deficits with sin and surpluses with vir tue. Moral as well as financial pressures were certainly much greater on deficit countries to reduce their deficits than on surplus countries to reduce surpluses. In fact, however, respon sibility for payments imbalances can seldom be assigned unambiguously to individual countries. Moreover, the adjustment process is unlikely to work efficiently if surplus countries fail to par ticipate actively in it. New means will therefore need to be devised for achieving a better divi sion of responsibilities among surplus and defi cit countries for initiating the correction of pay ments imbalances. A number of vital issues will arise in connec tion with the convertibility of the dollar and future procedures for the settlement of payments imbalances. Decisions will need to be reached on the role of various reserve assets— not only gold, but also SDR’s and reserve currencies. Major changes may be called for in the proce dures governing the creation, allocation, and use STATEMENT TO CO N G RESS of SDR’s. Understandings will have to be reached about the desirability and feasibility of imposing limitations on the use of reserve cur rencies. Various proposals for the “ consoli dation” of reserve assets— among them, the substitution of SDR’s for reserve currencies or gold— may need to be examined. Moreover, since restrictive trading practices are a major factor influencing the balance of payments position of individual countries, it would be neither possible nor desirable to ex clude the subject of trading arrangements from the forthcoming negotiations. As a specific ex ample, some consideration will have to be given to ways of amending trade restrictions that im pede payments adjustment when exchange rates are altered. Still other issues will come up, particularly those bearing on volatile capital movements, the transition from our present interim arrangements to the new reformed system, and the organi zational structure of the IMF. There are bound to be significant differences in national views on the issues I have men 789 tioned, and practical difficulties will intrude as efforts are made to resolve the differences. Nevertheless, we can be moderately optimistic about the outlook. All countries have a strong interest in devising new rules to govern interna tional monetary arrangements. Disagreements among nations exist, but they can be resolved once their representatives get down to the serious business of discussing them in a con structive and cooperative spirit. The task confronting the conferees will be rendered more manageable if the major indus trial countries, particularly the United States, meanwhile practice strict financial discipline. Indeed, I doubt if a viable international mone tary system can be rebuilt without better control over inflation than we have as yet achieved. Fortunately, this need is increasingly understood in our country. I look ahead to an extended period of chal lenging and rewarding negotiations on monetary and related trade issues. At the end of this process, we should have the foundations of a new and stronger international economic order. Record of Policy Actions of the Federal Open Market Committee Records of policy actions taken by the Federal Open Market Com mittee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve B ull etin . The record for each meeting includes the votes on the policy decisions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial conditions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York— the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions have been published regularly in the B ulletin beginning with the July 1967 issue, and such records have continued to be published in the Board’s Annual Reports. The records for the meetings held in 1972 through May 23 were published in the B ulletins for April, pages 390-97; May, pages 455-63; June, pages 562-70; July, pages 640-48; and August, pages 707-12. The record for the meeting held on June 19-20, 1972, follows: 790 791 MEETING HELD ON JUNE 19-20, 19721 Current economic policy directive. The information reviewed at this meeting suggested that real output of goods and services was rising in the second quarter at a faster pace than the 5.6 per cent annual rate recorded in the first quarter. A moderately higher rate of growth appeared to be in prospect for the rest of 1972. In May retail sales increased sharply, according to the advance report, and were well above the first-quarter average. Industrial production continued to expand, with gains reported among con sumer goods, business equipment, and materials. Payroll em ploy ment rose substantially further in manufacturing and other nonfarm establishments, but because of another large addition to the civilian labor force, the unemployment rate remained at 5.9 per cent. Wholesale prices of farm and food products rose considerably in May, following little change in April, and prices of industrial commodities continued upward at about the average rate of earlier months this year. Average hourly earnings of production workers on private nonfarm payrolls advanced at a slower pace than they had in the preceding 3 months. The latest staff projections of real GNP for the second half of 1972, which suggested some further increase in the over-all rate of expansion, were similar to those of 4 weeks earlier. It was anticipated that disposable income and consumption expenditures would rise at a somewhat faster pace; that business capital outlays would continue to expand, although not so rapidly as had been suggested in the previous projections; and that inventory investment would increase appreciably. It was expected that Federal purchases of goods and services would expand moderately further and that residential construction would level off. In foreign exchange markets, speculation involving a number of European currencies had developed since the last meeting of the Committee. The exhange rate for sterling against the dollar had declined significantly while rates for most continental currenlrThis meeting was held over a 2-day period beginning on the afternoon of June 19, 1972, in order to provide more time for the staff presentation concerning the economic situation and outlook and the Comm ittee’s discussion thereof. 792 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 cies had risen; the spread between sterling and several other currencies had widened to the maximum specified under the Euro pean Community monetary agreement. Through early June the U .S. balance of payments was in surplus on both the official settlements basis and the net liquidity basis, as recorded and unrecorded inflows of short-term capital to the United States continued to exceed the deficit on current and long-term capital account. The excess of merchandise imports over exports in April, however, had been even larger than in February and March. Since the Committee’s meeting on May 23, market interest rates on both short- and long-term securities had fluctuated in a narrow range— declining somewhat early in the period and rising again later. Rates had edged down in late May in part because of a Treasury decision not to refund $1.2 billion of bonds maturing on June 15 and expectations in the market that the Treasury would not borrow new funds until late July. Moreover, the combined volume of new publicly issued corporate and State and local government bonds had declined somewhat further in May and appeared likely to remain at a reduced level in June. Later in the period rates moved up again, in part because of the effects on investor expectations of reports that suggested further strengthening in economic activity and indications of some firming in money market conditions. Markets for Treasury notes and bonds also were influenced by discussion of the possibility that the Treasury might undertake an advance refunding. The market rate for 3-month Treasury bills was 3.92 per cent on the day before this meeting compared with 3.79 per cent 4 weeks earlier. Contract interest rates on conventional new-home mortgages were unchanged from April to May while yields in the secondary market for Federally insured mortgages rose slightly. Inflows of savings funds to nonbank thrift institutions continued to moderate. At commercial banks, business loans outstanding expanded in May at about the stepped-up rate of April, and real estate and consumer loans continued to grow rapidly. Banks also added a substantial amount to their holdings of securities, especially securi ties of State and local governments. Growth in the narrowly defined money stock (private demand deposits plus currency in circulation, or M x) slowed further in May. However, inflows of savings funds to commercial banks increased, RECORD OF POLICY ACTIONS OF FOMC after having fallen off in the preceding 3 months, and growth stepped up somewhat in the more broadly defined money stock (M x plus commercial bank time and savings deposits other than large-denomination C D ’s, or M2). Over the April-M ay period, M x and M2 grew at annual rates of about 6 and 8 per cent, respectively, compared with rates of about 9 and 13 per cent in the first quarter of 1972.2 Expansion in the bank credit proxy— daily-average member bank deposits, adjusted to include funds from nondeposit sources— remained rapid as banks, especially those experiencing strong demands for business loans, acted aggressively to increase the volume of large-denomination C D ’s outstanding. System open market operations since the May 23 meeting of the Committee had been directed at fostering growth in reserves available to support private nonbank deposits (RPD’s) at an annual rate in the May-June period between 7.5 and 11.5 per cent and growth in the monetary aggregates at rates somewhat slower than those recorded earlier this year, while avoiding sharp day-to-day fluctuations and large cumulative changes in money market condi tions. It appeared at present that RPD’s would grow over the M ay-June period at a rate of about 7 per cent. The average Federal funds rate had been slightly below AVi per cent since the beginning of June, compared with about 4 xk per cent in May. In the 4 weeks ending June 14 member bank borrowings had averaged about $115 million, approximately the same as in the preceding 5 weeks. As at its May meeting, the Committee agreed that the economic situation called for moderate growth in the monetary aggregates over the months ahead. After taking account of recent changes in deposits and the 2-week lag in reserve requirements, the Com mittee decided to seek growth in RPD’s at an annual rate in a range of 4.5 to 8.5 per cent during the June-July period while continuing to avoid sharp fluctuations and large cumulative changes in money market conditions. As before, it was recognized that pursuit of the objective for RPD’s might be associated with some firming of money market conditions. The members also decided that some allowance should be made in the conduct of operations if growth in the monetary aggregates appeared to be deviating 2Based on the change in the daily-average levels from March to May and from December to March. 793 794 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 significantly from the rates expected, and that account should be taken of capital market developments and possible Treasury fi nancing. As at other recent meetings, it was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if it appeared that the Committee’s objectives and constraints were not being met satisfactorily. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting, including recent data for such measures of business activity as industrial production, employment, and retail sales, suggests that real output of goods and services is growing at a faster rate in the current quarter than in the two preceding quarters, but the unemployment rate remains high. In May wholesale prices of farm and food products advanced appreciably—after having changed little in April—and the rise in prices of industrial commodities remained substantial. The most recent data suggest some moderation in the pace of advance in wage rates. The U.S. balance of payments has been in surplus in recent weeks on both the official settlements basis and the net liquidity basis. In April, however, the excess of merchandise imports over exports was even larger than in February and March. Some strains have developed in international financial markets recently, involving European currencies. Growth in the narrowly defined money stock slowed further in May, while growth in the broadly defined money stock stepped up somewhat as inflows of consumer-type time and savings deposits to banks expanded considerably; over the April-May period, growth in both measures of the money stock was well below the high rates in the first quarter of the year. The outstanding volume of large-denomination CD’s increased substantially further in May, and expan sion in the bank credit proxy remained rapid. In recent weeks, market interest rates have continued to fluctuate in a narrow range. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to sustainable real economic growth and increased em ployment, abatement of inflationary pressures, and attainment of reasonable equilibrium in the country’s balance of payments. To implement this policy, while taking account of possible Treasury financing and developments in capital markets, the Com mittee seeks to achieve bank reserve and money market conditions RECORD OF POLICY ACTIONS OF FOMC that will support moderate growth in the monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Brimmer, Bucher, Coldwell, Daane, Eastburn, MacLaury, Mitchell, Robertson, Sheehan, Winn, and Treiber. Votes against this action: None. Absent and not voting: Mr. Hayes. (Mr. Treiber voted as his alternate.) Subsequent to this meeting, on July 6, 1972, Committee members voted to amend this current economic policy directive by adding a reference to international developments in the final paragraph. As amended, that paragraph read as follows: To implement this policy, while taking account of possible Treasury financing, developments in capital markets, and interna tional developments, the Committee seeks to achieve bank reserve and money market conditions that will support moderate growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Brimmer, Bucher, Coldwell, Daane, Eastburn, MacLaury, Robertson, Sheehan, Winn, and Treiber. Votes against this action: None. Absent and not voting: Messrs. Burns, Hayes, and Mitchell. (Mr. Treiber voted as Mr. Hayes’ alternate.) In the 3 days preceding this action, foreign central banks had acquired large amounts of dollars in the process of maintaining exchange rates for their currencies within the internationally agreed margins. The System Account Manager advised that, insofar as the investment of these and any additional funds that might be acquired by the foreign central banks took the form of purchases of U .S. Treasury bills in the market, they would tend to exert downward pressures on bill rates. In the interests of the U .S. balance of payments and international confidence in the dollar, the members decided that open market operations should be conducted with a view to avoiding significant declines in bill rates, insofar 795 796 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 as that was consistent with the objectives agreed upon by the Committee on June 20, 1972. Specifically, it was decided that (1) to the extent feasible, reserve additions required to meet the Committee’s objectives should be made by means other than purchases of Treasury bills, and (2) foreign official demands for bills, if heavy, should be met to the extent feasible by sales of bills from the System ’s portfolio, with any undesired reserve effects offset by other means. The members agreed that the directive should be amended to affirm the Committee’s intention to authorize such operations. In casting their affirmative votes, a number of members indicated that while they believed the authorization desirable they thought it should be used with restraint. Mr. Brimmer noted that he favored the action not only on the international grounds cited but also because he thought a significant decline in bill rates would have adverse domestic implications. Law Department Statutes, regulations, interpretations, and decisions SECURITIES CREDIT TRANSACTIONS The Board of Governors, effective October 16, 1972, has amended Regulation T, “ Credit by Brokers and Dealers,” and Regulation U, “ Credit by Banks for the Purpose of Purchasing or Carry ing Margin Stocks,” to exempt from margin re quirements certain credit extended to so-called “ block positioners” and “ third-market makers.” Block positioners are securities firms that stand ready to hold amounts of stock for their own account sufficient to facilitate the sale or purchase by their customers—primarily institutions—of quantities too large to be absorbed by normal exchange transactions. Third-market makers are firms that make a market off the exchanges in stocks that are listed for exchange trading. The amendments, which also apply new report ing requirements to exchange specialists, have been adopted simultaneously with registration and reporting requirements imposed by the Securities and Exchange Commission pertaining to the same subject. The text of the Board’s amendments reads as follows: AMENDMENT TO REGULATION T Effective October 16, 1972, § 220.4(g) is amended to read as follows: SECTION 220.4—SPECIAL ACCOUNTS * * * * (g) Specialist’s account. (1) In a special ac count designated as a specialist’s account, a credi tor may effect and finance, for any member of a national securities exchange who is registered and acts as a specialist in securities on the exchange, such member’s transactions as a specialist in such securities, or effect and finance, for any joint venture in which the creditor participates, any transactions in any securities of an issue with respect to which all participants, or all participants other than the creditor, are registered and act on a national securities exchange as specialists. (2) Such specialist’s account shall be subject to the same conditions to which it would be subject if it were a general account except that if the specialist’s exchange is a national securities ex change which requires and submits to the Board of Governors of the Federal Reserve System reports suitable for supplying current information regarding specialist’s use of credit pursuant to this paragraph (g), the requirements of § 220.6(b) regarding joint ventures shall not apply to such accounts and the maximum loan value of a regis tered security in such account (except a security that has been identified as a security held for investment pursuant to a rule of the Commissioner of Internal Revenue (Regs, section 1-1236-1(d))) shall be as determined by the creditor in good faith. * * * * AMENDMENTS TO REGULATION U Effective October 16, 1972, §§ 221.3(a), (o), (w)(l), and (y) are amended and § 221.3(z) is added as set forth below; and footnote 9 in § 221.4 (the Supplement to Regulation U) is redesignated as footnote 12: SECTION 221.3—MISCELLANEOUS PROVISIONS (a) Required statement as to stock-secured credit. In connection with an extension of credit secured directly or indirectly by any stock, the bank shall obtain and retain in its records for at least 3 years after such credit is extinguished a statement in conformity with the requirements of Federal Reserve Form U-l executed by the recipi ent of such extension of credit (sometimes referred to as the “ customer” ) and executed and accepted in good faith by a duly authorized officer of the bank prior to such extension: Provided, That this requirement shall not apply to any credit described in paragraphs (o), (w), (x), (y), or (z) of this section or § 221.2 of this part except for credit described in paragraphs 221.2(f), (g), and (h) extended to persons who are not brokers or dealers subject to Part 220 of this Chapter (Regulation T). 797 798 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 In determining whether or not an extension of credit is for the purpose specified in § 221.1 or for any of the purposes specified in § 221.2 or this section the bank may rely on the statement executed by the customer if accepted in good faith. To accept the customer’s statement in good faith, the officer must (1) be alert to the circumstances surrounding the credit and (2) if he has any in formation which would cause a prudent man not to accept the statement without inquiry, have in vestigated and be satisfied that the customer’s statement is truthful. * * * * (o) Specialist. In the case of credit extended to a member of a national securities exchange who is registered and acts as a specialist in securities on the exchange for the purpose of financing such member’s transactions as a specialist in such se curities, the maximum loan value of any stock (except stock that has been identified as a security held for investment pursuant to a rule of the Commissioner of Internal Revenue (Regs, section 1-1236-1(d))) shall be as determined by the bank in good faith: Provided , That the specialist’s ex change is a national securities exchange which requires and submits to the Board of Governors of the Federal Reserve System reports suitable for supplying current information regarding special ists’ use of credit pursuant to this section. * * * * (w) OTC market maker exemption. (1) In the case of credit extended to an OTC market maker, as defined in subparagraph (2) of this paragraph (w), for the purpose of purchasing or carrying an OTC margin stock in order to conduct the marketmaking activity of such a market maker, the maximum loan value of any OTC margin stock (except stock that has been identified as a security held for investment pursuant to a rule of the Commissioner of Internal Revenue (Regs, section 1-1236-1(d))) shall be determined by the bank in good faith: Provided , That in respect of each such stock the OTC market maker shall have filed with the Securities and Exchange Commission a notice of his intent to begin or continue such marketmaking activity (Securities and Exchange Com mission Form X-17A-12 (1)) and all other reports required to be filed by market makers in OTC margin stock pursuant to a rule of the Commission (Rule 17a-12(17 CFR 240.17a-12)), shall not have ceased to engage in such market-making activity, and shall have a reasonable average rate of inven tory turnover in such stock: And provided further , That the bank shall obtain and retain in its records for at least 3 years after such credit is extinguished a statement in conformity with the requirements of Federal Reserve Form U-2, executed by the OTC market maker who is the recipient of such credit and executed and accepted in good faith9 by a duly authorized officer of the bank prior to such extension. In determining whether or not an extension of credit is for the purpose of conducting such market-making activity, a bank may rely on such a statement if executed and accepted in ac cordance with the requirements of this paragraph (w) and paragraph (a) of this section. * * * * (y) Third-market maker exemption. (1) In the case of credit extended to a third-market maker, as defined in subparagraph (2) of this paragraph (y), for the purpose of purchasing or carrying a stock that is registered on a national securities exchange (other than a convertible debt security described in paragraph (t) (1) of this section) in order to conduct the market-making activity of such a market maker, the maximum loan value of any stock (except (i) a convertible debt security described in paragraph (t) (1) of this section, and (ii) stock that has been identified as a security held for investment pursuant to a rule of the Commis sioner of Internal Revenue (Regs, section 1-12361(d))) shall be determined by the bank in good faith: Provided , That in respect of each such stock he shall, at least five full business days prior to such extension of credit, have filed with the Se curities and Exchange Commission a notice of his intent to begin or continue such market-making activity, and thereafter all other reports required to be filed by third-market makers pursuant to a rule of the Securities and Exchange Commission and, except when such activity is unlawful, shall not have ceased to engage in such market-making activity: And provided further , That the bank shall obtain and retain in its records for at least 3 years after such credit is extinguished a statement in conformity with the requirements of Federal Re serve Form U-3, executed by the third-market maker who is the recipient of such credit and executed and accepted in good faith10 by a duly authorized officer of the bank prior to such exten sion. In determining whether or not an extension of credit is for the purpose of conducting such market-making activity, a bank may rely on such a statement, if executed and accepted in accor9A s described in paragraph (a) of this section. 10A s described in paragraph (a) of this section. LAW DEPARTMENT dance with the requirements of this paragraph (y) and paragraph (a) of this section. (2) A third-market maker with respect to a stock that is registered on a national securities exchange is a dealer who has and maintains net capital, as defined in a rule of the Securities and Exchange Commission (Rule 15c3-l (17 CFR 240.15c3-l)), or in the capital rules of an exchange of which he is a member if the members thereof are exempt therefrom by Rule 15c3-1(b)(2) of the Commission (17 CFR 240.15c3-l(b)(2)), of $100,000 plus $20,000 for each stock in excess of five in respect of which he has filed and not withdrawn a notice with the Securities and Exchange Commission (but in no case does this subparagraph (2) require net capital of more than $500,000) who is in compli ance with such rule of the Commission and who, except when such activity is unlawful, meets all the following conditions with respect to such stock: (i) He furnishes bona fide, competitive bid and offer quotations to other brokers and dealers, in the stocks for which he makes a market, at all times on request, (ii) he is ready, willing, and able to effect transactions for his own account in reas onable amounts, and at his quoted prices, with other brokers and dealers, and (iii) he has a reas onable average rate of inventory turnover in the stock. (3) If all or a portion of the credit extended pursuant to this paragraph (y) ceases to be for the purpose specified in subparagraph (1) of this para graph or the dealer to whom the credit is extended ceases to be a third-market maker as defined in subparagraph (2) of this paragraph, the credit or such portion thereof shall thereupon be treated as “ a credit subject to § 221.1.” (z) Block positioner exemption. (1) In the case of credit extended to a block positioner, as defined in subparagraph (2) of this paragraph (z), for the purpose of financing the activity of block posi tioning, the maximum loan value of any margin stock obtained in the ordinary course of the activity of block positioning as described in subparagraph (2) of this paragraph (z) (except (i) a convertible debt security described in paragraph (t) (1) of this section and (ii) stock that has been identified as a security held for investment pursuant to a rule of the Commissioner of Internal Revenue (Regs, section 1-1236-1 (d))) shall be determined by the bank in good faith: Provided , That in respect of such activity he shall have filed with the Securities and Exchange Commission a notice of undertaking such activity as prescribed by the Commission, and all reports required to be filed by block-posi- 799 tioners: And provided further , That the bank shall obtain and retain in its records for at least 3 years after such credit is extinguished a statement in conformity with the requirements of Federal Re serve Form U-5 and paragraph (a) of this section, executed by the block positioner who is the recip ient of such credit and executed and accepted in good faith11 by a duly authorized officer of the bank prior to such extension. In determining whether or not an extension of credit is for the purpose of conducting such block positioning ac tivity, a bank may rely on such a statement if executed and accepted in accordance with the requirements of this paragraph (z) and paragraph (a) of this section. In determining whether or not an extension of time has been granted pursuant to subparagraph (4) of this paragraph (z) and whether or not such extension of time is commen surate with the circumstances the bank may rely on a statement executed by an officer of the ex change or association on behalf of the committee in conformity with the requirements of Federal Reserve Form U-6 and paragraph (a) of this sec tion. (2) A block positioner is a dealer who (i) is registered with the Securities and Exchange Com mission under section 15 of the Securities Ex change Act of 1934 (15 U.S.C. 78o) and has a minimum net capital, as defined in a rule of the Securities and Exchange Commission (Rule 15c31 (17 CFR 240.15c3-l)) or in the capital rules of an exchange of which he is a member if the members thereof are exempt therefrom by Rule 15c3-l(b)(2) of the Commission (17 CFR 240.15c3- 1(b)(2)), of $1 million, (ii) engages in the activity of purchasing long or selling short as principal, from time to time, from or to a customer (other than a partner or a joint venture or other entity in which a partner of the dealer, or the dealer itself, participates or a person “ associated with” such dealer as defined in section 3(a)(18) of the Securities Exchange Act of 1934) a block of stock (other than a convertible debt security as described in paragraph (t)(l) of this section) with a current market value of $200,000 or more in a single transaction or in several transactions at approxi mately the same time from a single source to facilitate a sale or purchase by such customer, (iii) certifies to the lending bank that he has determined in the exercise of reasonable diligence that the block could not be sold to or purchased from others on equivalent or better terms, and (iv) sells the 11A s described in paragraph (a) of this section. FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 800 shares comprising such block as rapidly as possible commensurate with the circumstances. In the case where a block positioner acquires a block from a broker who acts as agent for several sellers, such acquisition shall be deemed for purposes of this section to be an acquisition from a single source. (3) No credit shall be extended or maintained pursuant to this paragraph (z) in respect of any such block of stock or portion thereof which the block positioner has held continuously for more than 20 business days, and any credit extended pursuant to this paragraph (z) shall be extinguished or brought into conformity with the initial margin requirements of §§ 221.1 and 221.4 before the expiration of such 20-day period. For the purposes of this subparagraph, a block or portion thereof shall be treated as not having been held continu ously only to the extent that there has been a net sale (or in the case of short positions, net purchase) of such securities (whether or not represented by the same certificate) during such 20-day period. (4) In exceptional cases the 20-day period specified in subparagraph (3) of this paragraph (z) may on the application of the block positioner, be extended for one or more periods limited to 5 business days each commensurate with the cir cumstances by any regularly constituted committee of a national securities exchange having juris diction over the business conduct of its members, of which the block positioner is a member or through which his block transaction was effected, or by a committee of a national securities associa tion, if effected in the over-the-counter market: Provided, That such committee is satisfied that the block positioner is acting in good faith in making the application and that the circumstances in fact warrant such treatment. BANK HOLDING COMPANIES INSURANCE AGENCY ACTIVITIES Effective September 1, 1971, the Board of Governors amended § 225.4(a) of Regulation Y to add specified insurance agency activities to the list of activities the Board has determined to be so closely related to banking or managing or controlling banks as to be a proper incident thereto. In the course of administering this regula tion, a number of questions have arisen concerning the scope and terms of the Board’s regulation. The Board’s views on some of these questions are set forth below. § 225.4(a)(9)(i): Insurance “for the holding company and its subsidiaries The Board regards the sale of group insurance for the protection of employees of the holding company as insurance for the holding company and its subsidiaries. § 2 2 5 .4(a)(9)(ii)(d): Insurance “directly re lated to an extension of credit by a bank or a bank-related firm” . (1) This provision is designed to permit the sale, by a bank holding company system, of insurance that supports the lending transactions of a bank or bank-related firm in the holding company system. The Board regards the sale of insurance as directly related to an extension of credit by a bank or bank-related firm where (i) the insurance assures repayment of an extension of credit by the holding company system in the event of death or disability of the borrower (for example, credit life and credit accident and health insurance); or (ii) the insurance protects collateral in which the bank or bank-related firm has a security interest as a result of its extension of credit; or (iii) the insurance is other insurance which is sold to individual borrowers in conjunc tion with or as part of an insurance package (as a matter of general practice) with insurance pro tecting the collateral in which a bank or bankrelated firm has a security interest as a result of its extension of credit. Examples that fall within (iii) above are: (a) liability insurance sold in conjunction with insurance relating to physical damage of an automobile when the purchase of such automobile is financed by a bank or bankrelated firm; and (b) a homeowner’s insurance policy with respect to a residence mortgaged to a bank or bank-related firm. (2) Other types of insurance may be directly related to an extension of credit. A bank holding company applying to engage in the sale of such other types should furnish information showing that such insurance is so directly related. (3) A renewal of insurance, after the credit extension has been repaid, is regarded as closely related to banking only to the extent that such renewal is permissible under § 225.4(a)(9)(ii)(c) of Regulation Y. (4) The Board generally regards insurance pro tecting collateral where the security interest of a bank or bank-related firm was obtained by pur chase rather than by a direct extension of credit by the holding company system as not being directly related to an extension of credit by a bank or bank-related firm. However, if such security interests are purchased on a continuing basis from a firm or an individual and the interval between the creation of the security interest and its subse LAW DEPARTMENT quent purchase is minimal, the Board may regard such purchase as an extension of credit. Full details of the transactions should be provided to support a holding company’s contention that such insurance sales are directly related to an extension of credit. § 225.4(a)(9)(ii)(b): Insurance “directly re lated to the provision of other financial services by a bank or . . . bank-related firm ” . This provi sion is designed to permit the sale by a bank holding company system of insurance in connec tion with bank-related services (rendered by a member of the holding company system) other than an extension of credit. Among the types of insurance the Board regards as directly related to such services are: (i) insurance against loss of securities held for safekeeping; (ii) insurance for valuables in a safe deposit box; (iii) life insurance equal to the difference between the maturity value of a deposit plan for periodic desposits over a specified term and the balance in the account at the time of the depositor’s death; (iv) in connection with mortgage loan servicing that is provided by a bank or bank-related firm, insurance on the mortgaged property and/or insurance on the mortgagor to the extent of the outstanding balance 801 of the credit extension, provided that the mortga gee is a beneficiary under such types of insurance policies; and (v) insurance directly related to the provision of trust services if the sale of such insurance is permitted by the trust instruments and under State law. § 225.4(a)(9)(ii)(c): Insurance that “ is other wise sold as a matter of convenience to the pur chaser, so long as the premium income from sales within . . . subdivision (ii)(c) does not constitute a significant portion of the aggregate insurance pre mium income of the holding company from insur ance sold pursuant to . . . subdivision (ii)” . (1) This provision is designed to permit the sale of insurance as a matter of convenience to the purchaser. It is not designed to permit entry into the general insurance agency business. (2) The term “ premium income” means gross commission income. (3) The Board generally will regard premium income attributable to “ convenience” sales as not constituting a “ significant portion” if the income attributable to “ convenience” sales is less than 5 per cent of the aggregate insurance premium income of the holding company system from in surance sold pursuant to § 225.4(a)(9)(ii). 802 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 ORDERS UNDER SECTION 3(a) of BANK HOLDING COMPANY ACT FIRST CITY BANCORPORATION OF TEXAS, INC., HOUSTON, TEXAS O r d e r A p p r o v in g A c q u is it io n o f B a n k First City Bancorporation of Texas, Inc., Hous ton, Texas, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under section 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac quire an additional 29.7 per cent of the voting shares of United Bank Shares, Inc., El Paso, Texas (“ United” ), a holding company owning 100 per cent (less directors’ qualifying shares) of the shares of Southwest National Bank of El Paso, El Paso, Texas (“ Bank” ). Applicant presently owns 24.5 per cent of United.. Notice of receipt of the application has been given in accordance with section 3(b) of the Act. Time for filing comments and views has expired. The Board has considered the application 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)). Applicant, the third largest banking organization in Texas, controls eight banks with aggregate deposits of approximately $1.5 billion, represent ing about 4.9 per cent of deposits in commercial banks in the State.1 Consummation of the proposal would increase Applicant’s share of deposits by only .2 percentage points and would not result in a significant increase in the concentration of bank ing resources in Texas. Bank (about $75 million in deposits) is the third largest of 12 banking organizations in the El Paso area and controls approximately 11 per cent of deposits there. However, two larger organizations dominate El Paso with each controlling about 36 per cent of deposits in the area. As the Board recognized in its earlier Order approving Appli cant’s acquisition of 24.5 per cent of the voting shares of United Bank (1972 Federal Reserve B u lle tin 295), the acquisition of Bank by Applicant eventually may lead to some decon centration in the El Paso area through the intro duction of a strong effective organization that competes with the two dominant organizations. *A11 b an k in g d ata are as o f D ecem b er 3 1 , 1971 and reflect ban k h o ld in g c o m p an y fo rm atio n s and a cq u isitio n s a p proved by the B oard th ro u g h Ju n e 3 0 , 1972. Competitive considerations are consistent with ap proval of the application. The financial and managerial resources and fu ture prospects of Applicant and its subsidiary banks are regarded as generally satisfactory. Applicant proposes to provide additional capital to Bank and to strengthen management. Banking considerations lend weight for approval of the application. Applicant proposes to enable Bank to provide expertise in petroleum financing. Consid erations relating to the convenience and needs of the community to be served are consistent with approval. It is the Board’s judgment that the proposed transaction is in the public interest and that the application should be approved. On the basis of the record the application is approved for the reasons summarized above. The transaction shall not be 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 Dallas pursuant to delegated authority. By order of the Board of Governors, effective July 28, 1972. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, and Sheehan. Absent and not voting: Governors Daane and Bucher. [s e a l] (Signed) T y n a n S m i t h , Secretary of the Board. RIBSO, INC., ROCK ISLAND, ILLINOIS O r d e r A p p r o v in g A c q u is it io n o f B a n k Ribso, Inc., Rock Island, Illinois, a bank hold ing 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 retain ownership of 2.276 per cent of the voting shares of Rock Island Bank and Trust Company, Rock Island, Illinois (“ Bank” ) .1 Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the *On June 22 , 1971, the B oard ordered that any com pany w hich acquired an interest in a bank betw een D ecem b er 31, 1970, and June 22, 1971, w ith o u t first securing p rio r B oard approval because of lack of kno w led g e of that re q u ire m e n t m ight file fo r such a pproval by A u g u st 31, 1971, u nless such tim e w as e x te n d ed for good c au se. T h e applicatio n h e re in w as filed pu rsu an t to the B o a rd ’s Ju n e 22, 1971, O rder. 803 LAW DEPARTMENT application and all comments received in light of the factors set forth in § 3(c) of the Act (12 U .S.C . 1842(c)). As a result of the enactment of the 1970 Amendments to the Bank Holding Company Act, Applicant became a bank holding company by operation of law on December 31, 1970, because it then owned 23.1 per cent of the voting shares of Bank and controlled the election of a majority of Bank’s directors. Subsequently, during the first six months of 1971, Applicant acquired an addi tional 2.276 per cent of the voting shares of Bank without the prior approval of the Board as required by § 3(a)(3) of the Act. The proposal herein is for the Board’s approval to retain the shares so acquired. Applicant, organized in 1955, is principally engaged in the ownership of shares of Bank and Bank’s premises, and has no other banking subsi diaries. Bank ($59.1 million deposits) is the sec ond largest of three banks in Rock Island, a community 160 miles west of Chicago. (Banking data are as of December 31, 1971.) Approval of Applicant’s proposal would not result in the elim ination of either existing or potential competition, nor does it appear that there would be any adverse effects on any bank in the area. The financial and managerial resources and fu ture prospects of Applicant and Bank are regarded as satisfactory and consistent with approval of the application. Approval of the proposal would have no effect on convenience and needs of the com munity. It is the Board’s judgment that the ap plication should be approved. On the basis of the record, the application is approved for the reasons summarized above. By order of the Board of Governors, effective August 1, 1972. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent and not voting: Governor Bucher. (Signed) T y n a n S m i t h , Secretary of the Board. [s e a l] AMERICAN BANCORPORATION, COLUMBUS, OHIO O r d e r A p p r o v in g A c q u is it io n o f B a n k American Bancorporation, Columbus, 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 100 per cent of the voting shares (less directors’ qualifying shares) of The Farmers State Bank of McClure, Ohio, Mc Clure, Ohio (“ 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 controls four banks with deposits of $18.7 million, representing .08 per cent of aggre gate deposits of commercial banks in Ohio. (All banking data are as of December 31, 1971, and reflect holding company formations and acquisi tions approved through May 31, 1972.) The ac quisition of Bank with deposits of $6.3 million would not appreciably increase the concentration of banking resources in any relevant area, and Applicant would retain its rank as the smallest bank holding company in the State. Bank serves Henry County in the northwestern part of Ohio. There are six banks headquartered in the county with deposits ranging from $4.5 million to $22.4 million. Bank controls 11.6 per cent of county deposits and is the third largest of these banks. Consummation of the proposal should have no adverse effects on any of the competing banks. The closest offices of Applicant and Bank are 78 miles apart, and no significant present com petition exists between any of these offices. In addition, there does not appear to be any potential for the development of future competition between the two institutions, due to the distances separating their offices, the location of numerous intervening banks, and the restrictions placed on branching by State laws. The financial and managerial resources of Applicant, its subsidiary banks, and Bank are considered to be generally satisfactory, and pros pects for the group appear favorable. Therefore, considerations relating to the banking factors are consistent with approval of the application. Appli cant proposes to expand and improve the present services offered by Bank to include specialized consumer and business loan programs. Although the major banking needs of the area are being served at the present time, Applicant’s assistance to Bank in loan participation with other affiliates, and in training and management planning would better serve the convenience and needs of the communities. Considerations under this factor are consistent with approval of the application. It is FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 804 the Board’s judgment that consummation of the proposed acquisition would be in the public inter est 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 Cleveland pursuant to delegated authority. By order of the Board of Governors, effective August 3, 1972. Voting for this action: Chairman Burns and Governors Robertson, Brimmer, Sheehan, and Bucher. Absent and not voting: Governors Mitchell and Daane. [sea l] (Signed) T ynan Smith, Secretary of the Board. 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)). On the basis of the record, the application is approved for the reasons set forth in the Board’s Statement of this date. 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 Chicago pursuant to delegated authority. By order of the Board of Governors, effective August 3, 1972. Voting for this action: Chairman Burns and Governors Mitchell, Daane, and Sheehan. Voting against this action: Governors Robertson and Brimmer. Absent and not voting: Governor Bucher. [seal] MICHIGAN NATIONAL CORPORATION, LANSING, MICHIGAN O rder A pproving Formation of B ank Holding Company Michigan National Corporation, Lansing, Michigan, has applied for the Board’s approval, under § 3(a)(1) of the Bank Holding Company Act (12 U.S.C. 3(a )(l));, of formation of a bank hold ing company through the acquisition of 80 per cent or more of the voting shares of each of the fol lowing five Michigan banks: Michigan National Bank, Lansing; Michigan Bank, N .A ., Detroit; Livonia National Bank, Livonia; Troy National Bank, Troy; and Oakland National Bank, South field. As a result of its acquisition of Michigan National Bank, Applicant would also acquire in direct control of less than 25 per cent but more than 5 per cent of the outstanding voting shares of each of seven Michigan banks as follows: Central Bank, Grand Rapids (24.1 per cent); Val ley National Bank of Saginaw, Saginaw (24.9 per cent); Security National Bank of Manistee, Man istee (23.4 per cent); First National Bank of East Lansing, East Lansing (13.8 per cent); First Na tional Bank of Wyoming, Wyoming (23.3 per cent); Central National Bank of Alma, Alma (18.8 per cent); and St. Clair Shores National Bank, St. Clair Shores (10 per cent). 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 (Signed) Tynan Smith, Secretary of the Board. S tatement Michigan National Corporation, Lansing, Michigan (“ Applicant” ), has filed with the Board, pursuant to section 3(a)(1) of the Bank Holding Company Act of 1956, an application for approval of action to become a bank holding company through the acquisition of 80 per cent or more of the voting shares of each of the following five Michigan banks: Michigan National Bank, Lans ing (“ Michigan National” ); Michigan Bank, N .A ., Detroit (“ Michigan Bank” ); Livonia Na tional Bank, Livonia (“ Livonia Bank” ); Troy National Bank, Troy (“ Troy Bank” ); and Oakland National Bank, Southfield (“ Oakland Bank” ). By virtue of acquisition of Michigan National, Appli cant would acquire also indirect control of voting shares of each of seven other Michigan banks as follows: 24.1 per cent of the shares of Central Bank, Grand Rapids (“ Central Bank” ); 24.9 per cent of the shares of Valley National Bank of Saginaw, Saginaw (“ Valley National” ); 23.4 per cent of the shares of Security National Bank of Manistee, Manistee (“ Security Bank” ); 13.8 per cent of the shares of First National Bank of East Lansing, East Lansing (“ East Lansing Bank” ); 23.3 per cent of the shares of First National Bank of Wyoming, Wyoming (“ Wyoming Bank” ); 18.8 per cent of the shares of Central National Bank of Alma, Alma (“ Alma Bank” ); and 10 per cent of the shares of St. Clair Shores National Bank, St. Clair Shores (“ St. Clair Shores Bank” ). LAW DEPARTMENT The described shares of the latter seven banks are held in trust by the Michigan National Bank Profit Sharing Trust for the benefit of employees of Michigan National and, pursuant to § 2(g)(2) of the Act, Michigan National is deemed to control such shares; by virtue of § 2(g)(1) of the Act, Applicant will be deemed to control such shares upon its acquisition of control of Michigan Na tional. Statutory considerations. Applicant is a re cently-organized corportion formed for the pur pose of becoming a multi-bank holding company through the direct acquisition of voting shares of each of five banks. As an incident to the acquisi tion of one of those banks, control of less than 25 per cent but more than 5 per cent of the voting shares of seven other Michigan banks would be attributed to Applicant. The proposal is essentially a corporate reorganization inasmuch as the proposed five direct subsidiary banks are, and have been, closely affiliated for several years through common ownership by ten families and by profit sharing trusts established at each of the five banks. Each of the five banks has established a profit sharing trust for the benefit of its employees, which, in each case, has invested in the stock of its own bank and the stock of certain of the other proposed subsidiaries. The five banks have been operated as a unified banking group for several years with common directors and interchanging management. Upon acquisition of the shares of the five banks, Applicant would control approxi mately 9.3 per cent ($2.03 billion) of the total deposits held by commercial banks in Michigan and would become the second largest banking organization and the largest bank holding company in Michigan on the basis of deposits. (Unless otherwise indicated, all banking data are as of June 30, 1971, adjusted to reflect holding company formations and acquisitions approved by the Board to date.) The largest banking organization in Michigan would still be almost twice the size of Applicant and there are two other banking organi zations comparable in size to Applicant. Michigan National ($1.1 billion deposits), which holds 5.1 per cent of the total commercial bank deposits in the State, is located in Lansing 85 miles northwest of Detroit and is the fourth largest bank in Michigan and the largest bank outside of the Detroit area. Michigan National is represented in six banking markets, and has a total of twenty-five offices located throughout southern Michigan. On the basis of deposits, Michigan National’s ranking among the banks operating in 805 those six markets is as follows: first of the nine banks in the Lansing market; third of the fifteen banks in the Grand Rapids market; second of the six banks in the Saginaw market; third of the seven banks in the Flint market; first of the six banks in the Port Huron market; and first of the seven banks in the Battle Creek market. It appears that consummation of the proposal would not eliminate any significant existing competition between Michigan National and any of the other four proposed direct subsidiaries, all of which are lo cated in the Detroit metropolitan area. Further, on the facts of record, particularly in view of the intervening distances between Michigan National and any of the other banks (the closest offices are 57 miles apart), the number of available banking alternatives, the common ownership of the five banks, the sizes of the banks involved, and the restrictions of Michigan branching law, it appears that no significant potential competition between Michigan National and any of the other four proposed direct subsidiaries would be precluded by consummation of the proposal. Michigan Bank ($730 million deposits), head quartered in downtown Detroit with an additional twenty-six branches in the Detroit area, is the sixth largest bank in the State and the fifth largest of forty-nine banks located in the Detroit banking market, approximated by the three county Detroit SMSA, and holds 5.8 per cent of deposits in that market. Livonia Bank ($70.7 million deposits), located in a suburb two miles west of Detroit, operates six branches in Livonia, and is the six teenth largest bank in the Detroit market with .6 per cent of deposits in the market. Troy Bank ($57.2 million deposits), located in a suburb six miles north of Detroit, operates seven branches in Troy, and is the nineteenth largest bank in the Detroit market with .5 per cent of deposits in the market. Oakland Bank ($56.3 million deposits), located in a suburb just northwest of Detroit, operates four branches in Southfield, and is the twenty-first largest bank in the Detroit market with approximately .5 per cent of deposits in the mar ket. It appears that consummation of the proposal would not have any significant adverse effects on competition in the Detroit banking market. As indicated above the four banks have been closely affiliated and have been operated as part of the Michigan National banking group for several years. Individuals associated with Michigan Na tional purchased a substantial interest in Michigan Bank in 1955. Subsequently, Troy Bank and Oak 806 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 land Bank were organized de novo with the assis tance of Michigan National and Michigan Bank in 1962 and 1965, respectively, and the common ownership in Livonia Bank dates back to 1963 when the bank had only $12 million in deposits. Since the inception of the ownership interest in the three suburban banks, the management of all three has been supplied by Michigan National and Michigan Bank and all three have been operated as part of the banking group. On the basis of the facts herein, notably the origin and closeness of the existing relationships and the unlikelihood that the banks would become disaffiliated in the fore seeable future, the Board concludes that con summation of the proposal would not have any significant adverse effects on existing or potential competition among the four Detroit area banks. Because of its acquisition of Michigan National, Applicant will acquire also indirect control of certain shares (in each instance, less than 25 per cent) of each of seven other Michigan banks pres ently held by the Michigan National Profit Sharing Trust (“ indirect banks” ). Neither Manistee Bank nor Alma Bank nor St. Clair Shores Bank operates in any meaningful way in a market served by Michigan National or any of the other proposed subsidiaries. Through its profit sharing trust, Michigan National was instrumental in organizing East Lansing Bank (1955), Valley National Bank (1959), and Wyoming Bank (1960); and Michigan National acquired its interest in Central Bank over ten years ago. Notwithstanding the origin of the interests of the profit sharing trust in the indirect banks that are located in the areas of Grand Rapids, Saginaw, and East Lansing, the relation ship of Michigan National to said indirect banks is a matter of concern to the Board inasmuch as offices of Michigan National serve these areas. The Board notes that in each of the areas of Grand Rapids and Saginaw a larger banking organization holds more than twice the deposits held by Michi gan National and, in the Lansing market, East Lansing Bank is one of the smallest banks and holds less than 2 per cent of the deposits there. It appears that there is no adverse competitive consideration serious enough to warrant denial of the application. Moreover, the order herein does not constitute a determination that any of said indirect banks is or may become a subsidiary of Applicant;1 nor is the order herein any indication xO f co u rse, the d ete rm in a tio n herein does not preclude the B oard from d eterm in in g that the A p p lican t e x ercises a c o n tro l ling influence o v er the m a n a g em e n t or p o licies o f any of the seven so-called in d irect b an k s w ith in the m ean in g of § 2(a)(2 )(C ) of the A ct. that Applicant will be permitted to acquire direct or indirect control of any additional shares of any of said banks. Any proposal for the acquisition of additional shares of any of said banks will be judged on the basis of the competitive circum stances and all other relevant facts involved in the particular proposal. On the basis of the record before it, the Board concludes that consummation of the proposal in volving the direct acquisition of the five banks and the indirect acquisition of less than 25 per cent of seven banks would not substantially lessen competition in any relevant area nor have a signif icantly adverse effect on existing competition, nor foreclose the development of significant potential competition in any relevant area. The managerial resources of Applicant and each of its proposed subsidiaries are regarded as satis factory and consistent with approval of the ap plication. During consideration of the subject ap plication, Applicant was notified by the Board of its serious concern over what it considered to be the inadequate capital positions of the proposed subsidiary banks, especially Michigan National and Michigan Bank, and of the Board’s view that the capital position of each of the banks should be improved without delay. In response to the Board’s concern in this area, Applicant has proposed a capital improvement program that would immediately increase the cap ital funds of the five subsidiary banks by $45.8 million and by December 31, 1973, would in crease the capital by over $80 million. The capital improvement program includes the sale of $32 million in convertible debentures by Applicant ($30 million of which will be used to exercise preemptive rights to purchase additional common stock of the proposed subsidiaries), the sale of $15.8 million in capital notes by Michigan Na tional and Michigan Bank, and a dividend reten tion program that will increase significantly the capital position of each of the proposed subsi diaries. In addition, Applicant’s capital improve ment program includes the sale of $10 million of equity securities by December 31, 1973.2 Execu tion of this capital improvement program would strengthen the financial condition of Applicant and its proposed subsidiaries and enhance the prospects 2T he B oard reco g n izes that the co n d itio n of the m arket for equity securities m ay p re sen t a serious im p ed im en t to a proposed sale of e quity secu rities and that a reaso n ab le delay bey o n d the pro jected period m ay be w arran ted . H o w ev e r, such delay w ill be w arranted only if the B oard is satisfied that a substan tially significant d e te rio ra tio n below presen t m arket levels has taken place in the m ark et for e q uity securities. 807 LAW DEPARTMENT of the group substantially. The significant in creases that will be made in the capital account of each of the subsidiary banks as a result of the program to which Applicant is committed and the fact that Applicant is likely to have better access to capital markets than any of the individual banks lend weight for approval of the application. Consummation of the proposal would not have any immediate effects on the convenience and needs of the communities served by the proposed subsidiaries. However, reorganization of the own ership of the banks into the corporate structure of a holding company should provide the operational flexibility that would enable the holding company to assist the subsidiary banks in improving and expanding their services. Considerations relating to the convenience and needs of the communities are consistent with approval of the application. Summary and conclusion. On the basis of all relevant facts contained in the record, and in light of the factors set forth in section 3(c) of the Act, it is the Board’s judgment that the proposed trans action would be in the public interest, and that the application should be approved. D is s e n t in g Sta tem ent of G overnors R obertso n and B r im m e r We would approve the formation of a holding company to control the five direct subsidiary banks, now that steps have been taken or will be taken to augment their capital structures. How ever, the proposal before the Board involves not only the direct acquisition of five banks but also, as a result of investments of the Michigan National Bank’s profit sharing trust, the indirect acquisition of interests in each of seven other Michigan banks. With respect to four of the seven banks, namely, First National Bank of East Lansing, Valley Na tional Bank, Central Bank, and First National Bank of Wyoming, we consider the effects of this acquisition on competition to be adverse. The profit sharing trust just mentioned, a crea ture of Michigan National Bank established for the benefit of its employees, purchased and holds stock (ranging from 10 per cent to 24.9 per cent of the voting shares) of seven banks other than the five direct subsidiaries.1 While we doubt the appro 1 A d d itio n al sh ares in som e o f the seven b an k s w ere acq u ired by in d iv id u al m em b ers o f the ten fa m ilie s th at co n tro l the M ich ig an N a tio n al B an k , thus stren g th en in g the co n tro l or influence o v er su ch b an ks by the M ich ig an N atio n al B ank. A s a m atter of fa c t, M ich ig an N atio n al B ank is rep resen ted on the B o ard o f D irecto rs o f five of th o se sev en b an k s. A nd to fill in p art of th e rest of the p ic tu re , each of the five d irect su bsidiary ban k s has its o w n profit sh arin g tru st fo r the benefit o f e m p lo y e es, each o f w h ich h o ld s stock o f som e or all of those five ban k s. priateness of such investments by such a trust, we are adamantly opposed to sanctioning the employ ment of such a device to further the interests of a parent bank (the creator of the trust), especially when the result is both to enlarge that bank’s share of the market and stifle competition. The record shows beyond any doubt that there is potential if not actual competition between each of the four above-mentioned banks and Michigan National Bank, the largest of Applicant’s proposed subsidiaries. In the Lansing market, where Michi gan National Bank is by far the largest bank with over 43 per cent of the deposits, First National Bank of East Lansing ranks seventh and holds about 2 per cent of the deposits. In the Saginaw market, where Michigan National Bank is the second largest bank with about 23 per cent of the deposits, Valley National Bank ranks fourth and holds about 7 per cent of the deposits. In the Grand Rapids market, where Michigan National Bank is the third largest bank with about 18 per cent of the deposits, Central Bank and First National Bank of Wyoming rank fourth and sixth, respectively, and hold, in the aggregate, about 4 per cent of the deposits. In each instance, the service area of Michigan National Bank overlaps that of one of the four banks. In our view, the evidence reflects meaningful potential— if not actual— competition which would be foreclosed to the detriment of the public interest. Consummation of Applicant’s proposal would tend to eliminate competition and to preclude the development of potential competi tion by rendering less likely the prospect of disassociation of the four banks from the Michigan National group. In view of Michigan National Bank’s already significant position in the Lansing, Saginaw, and Grand Rapids markets, we consider that the public interest will not be served by approving Appli cant’s indirect interest in four banks that are in competition with Applicant’s principal subsidiary. Instead, competition would be enhanced, and the public interest served, by withholding approval of the application until Applicant persuades the profit sharing trust to divest itself of its interests in the four banks. In the alternative, approval of the application should be so conditioned as to give Applicant a reasonable period of time after forma tion of the holding company within which to accomplish the divestiture of the four banks. While we realize that (as intimated in the ma jority’s opinion) divestiture of the stock of these four banks (or possibly the stock of all seven of the banks) held by the profit sharing trust could FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 808 be required as a condition to the approval of future applications to expand, we believe that in fairness to all parties and in the interests of sound bank supervision the issue should be faced and settled now, at the outset of the formation of the holding company rather than at some uncertain date in the future. WORCESTER BANCORP, INC., WORCESTER, MASSACHUSETTS Order A pproving A cquisition of B ank Worcester Bancorp, Inc., Worcester, Mas sachusetts, 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 First National Bank of Amherst, Amherst, Massachusetts (“ 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 sixth largest banking organi zation in Massachusetts, controls one bank with aggregate deposits of $336.3 million, representing 2.9 per cent of total deposits of commercial banks in the State. (All banking data are as of December 31, 1971, and reflect bank holding company formations and acquisitions approved through May 31, 1972.) Approval of this application would not significantly increase Applicant’s share of State wide deposits and its present ranking would not change. Bank, with deposits of $25.2 million, is the largest of six banks in its banking market, which is approximated by central Hampshire County and portions of Franklin County, and controls 32 per cent of deposits in commercial banks in that mar ket. Applicant’s acquisition of Bank would consti tute its initial entry into Bank’s market and Hampshire County. Applicant’s closest existing subsidiary banking office is located approximately 30 miles from Bank. No meaningful competition exists between Bank and any of Applicant’s exist ing subsidiary banking offices, nor does it appear likely that such competition would develop in the future, in view of the distances separating Bank from Applicant’s subsidiaries, the State’s restric tive branching laws and the relatively static eco nomic conditions in Bank’s market. The financial and managerial resources and fu ture prospects of Applicant, its subsidiaries and Bank are generally satisfactory and consistent with approval of the application. In addition, it is ex pected that Applicant’s acquisition of Bank will add depth to the management of Bank. Although there is no evidence that the banking needs of the communities involved are not being adequately met at present, Applicant expects to offer, through Bank, a broader range of financial services to Bank’s customers. Considerations relating to the convenience and needs of the communities to be served are, therefore, consistent with approval of the application. It is the Board’s judgment that consummation of the proposed acquisition would be in the public interest, and that the application should be approved. On the basis of the record, the application is approved for the reasons summarized above. The approval herein neither provides authority to Applicant to continue in the nonbank activities nor to retain nonbank shares nor requires the Applicant to modify or terminate said activities or holdings. However, consummation of the proposal herein is subject to the continuing authority of the Board to require modification or termination of such activities or holdings (within a period no shorter than 2 years), if the Board determines that the continued combination of banking and nonbanking interests is likely to have an adverse effect on the public interest.1 The transaction shall not be con summated (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 August 4, 1972. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent and not voting: Governor Bucher. [seal] (Signed) Tynan Smith, Secretary of the Board. xIn perm ittin g A p p lic a n t to retain its g ra n d fa th e re d land d e v elo p m en t c o m p a n y , W o rn a t D e v elo p m en t C o rp o ra tio n , the B oard has not altered its po sitio n that land d e v elo p m en t is not a perm issib le a ctivity un d er § 4(c)(8 ) of the B ank H old in g C o m p an y A ct. (A p p lic a tio n o f U B F inancial C o rp o ra tio n , P h o e n ix , A riz o n a , to retain H . S. P ickrell C o m p a n y , 1972 F .R . B u l l e t i n 4 2 8 .) LAW DEPARTMENT NEW JERSEY NATIONAL CORPORATION, TRENTON, NEW JERSEY Order A pproving A cquisition of B ank New Jersey National Corporation, Trenton, New Jersey, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under § 3(a)(3) of the Act (12 U .S.C . 1842(a)(3)) to acquire 100 per cent of the voting shares (less directors’ qual ifying shares) of New Jersey National Bank of Princeton, Princeton Borough, New Jersey (“ New Bank” ), a proposed new 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 the light of the factors set forth in § 3(c) of the Act (12 U.S.C . 1842(c)). Applicant controls one bank, New Jersey Na tional Bank, Princeton (“ Bank” ), with deposits of $578.7 million, representing 3.4 per cent of the aggregate commercial bank deposits for the State of New Jersey. (All banking data are as of December 31, 1971, and reflect holding company formations and acquisitions approved by the Board through May 31, 1972.) Bank holds the largest percentage of deposits in the Second New Jersey Banking District and also in the Trenton Banking Market, but is the second largest New Jersey banking organization represented in this market area. The acquisition by Applicant of the proposed new bank would have no immediate impact on the concentration of banking resources in any areas. The proposed location of New Bank would be in Princeton Borough, a distance of 8.8 miles from the nearest office of Bank. Bank is prohibited by State law from branching into this area where subsidiaries of two banking organizations, with $1.1 billion and $447 million in deposits, respec tively, presently operate six offices. Branch offices of three Trenton market banks are also located in the outlying area. The establishment of New Bank in Princeton Borough would not adversely affect competition in any relevant areas, but, conversely, would have a procompetitive effect by providing another source of full banking services to the Princeton Borough area. Competitive consid erations are consistent with approval of the ap plication. The financial and managerial resources of 809 Applicant and Bank are considered to be generally satisfactory and their prospects appear favorable. New Bank would also appear to have favorable prospects for future development and growth. Banking factors are consistent with approval of the application. Although the major banking needs of the Trenton market are presently fulfilled by its 25 banking organizations, New Bank would provide alternative banking facilities to an area of 27,500 inhabitants which area appears to have good potential for growth and economic expan sion. Considerations relating to the convenience and needs of the communities to be served are consistent with and lend some support toward approval of the application. It is the Board’s judg ment that 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 that date, and (c) New Jersey National Bank of Princeton, Princeton Borough, New Jersey, shall be opened for business not later than six months after the effective date of this Order. Each of the periods described in (b) and (c) may be extended for good cause by the Board, or by the Federal Reserve Bank of Philadelphia pursuant to delegated authority. By order of the Board of Governors, effective August 8, 1972. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Daane. [seal] (Signed) T ynan Smith, Secretary of the Board. NORTH SHORE CAPITAL CORPORATION, CHICAGO, ILLINOIS Order D enying Formation of B ank Holding C ompany North Shore Capital Corporation, Chicago, Illi nois, 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 50.1 per cent or more of the voting shares of The North Shore National Bank of Chicago, Chicago, Illinois (“ Bank” ). Notice of the application, affording opportunity for interested persons to submit comments and 810 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Applicant is a newly-formed organization and has no operating history. Upon acquisition of Bank ($102.2 million of deposits), Applicant would control 0.3 per cent of the ccommercial bank deposits in Illinois. (All banking data are as of June 30, 1971.) Bank is the fourth largest of 18 banks competing in its service area and holds approximately 9 per cent of area deposits. The Board notes that the principals of Applicant are also principals of four other one-bank holding companies in Illinois, which hold deposits of $51, $38, $22, and $7 million, respectively. However, consummation of the proposed transaction is not likely to adversely affect existing competition in that the service areas of the other banks controlled by these principals do not appear to overlap with that of Bank. The nearest of these, Citizen’s Na tional Bank of Chicago, is approximately 12 miles distant from Bank. Applicant will incur substantial debt in order to acquire shares of Bank and has projected retire ment of this debt in 8 V2 years from dividends to be declared by Bank. Although, on occasion, the Board has approved acquisitions involving similar or even greater relative amounts of debt, payable over a lengthier period, those cases involved the transfer of ownership of small rural banks gener ally through the formation of small one-bank holding companies. In each such case, the adverse effects deriving from leverage were outweighed by public benefits deriving from the facilitation of the otherwise-difficult task of transferring ownership of those banks and the promotion of local owner ship and management. Those benefits are absent where, as here, the bank, whose shares are sought to be acquired, is a large bank located in an urban center. The amount of debt Applicant will assume and the length of time contemplated to retire that debt are considered excessive for the financing of a bank of this size. Although Bank’s asset condition is satisfactory, an infusion of capital is necessary to raise Bank’s capital to what the Board deems to be an accept able level. The Board generally expects a bank holding company to assist its subsidiary banks especially where those banks are in need of in creased capitalization. However, Applicant, ap parently due to the debt-servicing obligations it would incur upon consummation of the proposed transaction, has been unreceptive to suggestions that it increase Bank’s capital. The fact that Bank’s earnings have been below the average earnings of similarly-sized banks suggests that consummation would foreclose capital improvement in Bank, and that Applicant may even be unable to service its debt without unduly straining Bank’s earnings, retention of which are necessary to strengthen Bank’s capital position. Applicant’s projected income includes an annual “ consulting” fee of $24,000 to be extracted from Bank in order to enable Applicant to service its acquisition debt. In return, directors and officers of Applicant would, as directors and officers of Bank, provide services to Bank normally provided by such bank management; Applicant will not have a servicing staff. This consulting fee therefore appears to be unjustified and a means by which a portion of Bank’s income would be distributed to Applicant without a similar pro rata distribution to Bank’s minority stockholders. The instant proposal contemplates the use of excessive leverage and, if consummated, could impede Bank’s future capital growth and unduly operate to the detriment of Bank’s minority share holders. These factors weigh heavily against ap proval of this application. The convenience and needs of the communities to be served are already adequately being served and there is no evidence that consummation of the proposed acquisition would give rise to any sig nificant public benefits, other than those derived from the added flexibility inherent in a holding company structure. Considerations relating to the convenience and needs of the communities to be served therefore lend slight weight for approval. Under all the circumstances of this case, the Board concludes that the leverage contemplated, the potentially unfulfilled capital need of Bank and unfair treatment of minority shareholders involved in this proposal present adverse circumstances bearing on the financial condition, managerial re sources, and future prospects of Applicant and Bank. These circumstances are not outweighed by any procompetitive factors or by considerations relating to the convenience and needs of the com munities to be served. Accordingly, approval of this application is not in the public interest and it 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 August 8, 1972. 811 LAW DEPARTMENT Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Daane. [sea l] (Signed) T ynan Sm ith, Secretary of the Board. FIRST BANC GROUP OF OHIO, INC., COLUMBUS, OHIO Order A pproving A cquisition of B ank First Banc Group of Ohio, Inc., Columbus, Ohio, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under section 3(a)(3) of the Act (12 U .S.C . 1842(a)(3)) to acquire the successor by merger to The Liberty National Bank, Fremont, Fremont, Ohio (“ Bank” ). The bank into which Bank is to be merged has no significance except as a means to facilitate the acquisition of voting shares of Bank. Accordingly, the proposed acquisition is treated herein as a proposed acquisi tion of the shares of Bank. Notice of the application affording opportunity for interested persons to submit comments and views has been given in accordance with section 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of the factors set forth in section 3(c) of the Act (12 U .S.C . 1842(c)). Applicant, the seventh largest banking organi zation in Ohio, controls 11 banks with aggregate deposits of approximately $823 billion, represent ing about 3.5 per cent of deposits of commercial banks in the State.1 Consummation of the proposal herein would increase Applicant’s share of depos its by only .1 percentage point and would not change its Statewide ranking nor result in a signif icant increase in the concentration of banking resources in Ohio. Bank (about $24 million in deposits) is the third largest of five banking organizations in the San dusky County area and controls approximately 19 per cent of area deposits. There is no significant existing competition between Applicant and Bank nor is there a reasonable probability of competition developing in the future since the Sandusky County area is not attractive for de novo entry with a population per banking office somewhat lower than the Statewide average. Additional reasons that mitigate against the possibility of future com*A11 b an k in g d a ta are as o f D e ce m b e r 3 1, 1971, and reflect bank h o ld in g co m p a n y fo rm atio n s and acq u isitio n s a p p ro v ed by the B o ard th ro u g h Ju n e 3 0, 1972. petition developing between Applicant and Bank are the distance separating Applicant’s banking subsidiaries and Bank, and Ohio law regarding branching. The Board concludes that competitive considerations are consistent with approval of the application. The financial and managerial resources and fu ture prospects of Applicant, its subsidiary banks and Bank are regarded as generally satisfactory. Applicant proposes to provide additional manage ment depth to Bank so that banking considerations lend weight for approval of the application. Applicant also proposes to provide certain new services such as a 24-hour automated teller and educational loans, which Bank is not presently providing. Consequently, considerations relating to the convenience and needs of the community lend weight for approval. It is the Board’s judg ment that the proposed transaction is in the public interest and that the application should be ap proved. 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 Cleveland pursuant to delegated authority. By order of the Board of Governors, effective August 8, 1972. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Daane. [seal] (Signed) Tynan Smith, Secretary of the Board. Order A pproving A cquisition of B ank First Banc Group of Ohio, Inc., Columbus, Ohio, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under section 3(a)(3) of the Act (12 U .S.C. 1842(a)(3)) to acquire the successor by merger to The First National Bank and Trust Company of Ravenna, Ravenna, Ohio (“ Bank” ). The bank into which Bank is to be merged has no significance except as a means to facilitate the acquisition of voting shares of Bank. Accordingly, the proposed acquisition is treated herein as the proposed acquisition of the shares of Bank. Notice of the application, affording opportunity 812 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 for interested persons to submit comments and views, has been given in accordance with section 3(b) of the Act. The time for filing comments and views has expired and the Board has considered the application, and all comments received in light of the factors set forth in section 3(c) of the Act (12 U .S.C. 1842(c)). Applicant controls 12 banks with deposits of about $847 million representing approximately 3.6 per cent of total deposits of commercial banks in Ohio, and is the seventh largest banking organi zation in the State.1 Acquisition of Bank (deposits of about $57 million) would increase Applicant’s share of deposits in the State by only 0.2 percent age points and would not alter its State ranking nor result in a significant increase in the con centration of banking resources in Ohio. Bank is the seventh largest organization operat ing in the Akron banking market and has only 3.9 per cent of market deposits. There is no substantial existing competition between Applicant and Bank, and there is little probability of competition devel oping in the future because of the distances separating Bank and Applicant’s banking sub sidiaries and Ohio branching laws. On the other hand, the entry by Applicant into the Akron market through a “ foothold” acquisition such as that of Bank may enable Bank to provide increased com petition for the larger organizations in the market. The Board concludes that competitive consid erations are consistent with approval of the ap plication. Considerations relating to the financial condi tion, managerial resources and prospects of Applicant, its subsidiary banks, and Bank are generally satisfactory. Applicant proposes to pro vide Bank with additional management depth so that banking considerations give weight for ap proval of the application. Considerations relating to the convenience and needs of the community to be served lend weight for approval of the application since Applicant plans to provide edu cational loans and automatic 24 hour teller service which Bank does not presently provide for its customers. It is the Board’s judgment that con summation of the proposed acquisition would be in the public interest and 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 Cleveland pursuant to delegated authority. By order of the Board of Governors, effective August 8, 1972. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Daane. [seal] (Signed) T ynan Sm ith, Secretary of the Board. FIRST UNION, INCORPORATED, ST. LOUIS, MISSOURI Order A pproving A cquisition of B anks First Union, Incorporated, St. Louis, Missouri, has applied for the Board’s approval under § 3(a)(3) of the Bank Holding Company Act (12 U.S.C. 1842(a)(3)) to acquire 90 per cent or more of the voting shares of The Peoples Bank and Trust Company of Branson, Branson, Missouri ( “ Bran son Bank” ), and The Bank of Crane, Crane, Missouri (“ Crane Bank” ). Notice of the applications, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the applications and all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). On the basis of the record, the applications are approved for the reasons set forth in the Board’s Statement of this date.1 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 Re serve Bank of St. Louis pursuant to delegated authority. By order of the Board of Governors, effective August 8, 1972. Voting for this action: Chairman Burns and Governors ‘B anking d ata are as of D e ce m b e r 3 1, 1971, and reflect h o ld in g c o m p an y fo rm atio n s an d a cq u isitio n s app ro v ed by the B oard th ro u g h June 3 0 , 1972. D ata also reflect the B o a rd ’s ap p ro v al o f this d ate o f A p p lic a n t’s a cq u isitio n o f T h e L iberty N a tio n al B ank o f F ree m o n t, F ree m o n t, O hio. ‘T he S tatem ent also reflects B oard action of this date d e n ying an a p p lication by F irst U n io n , In c o rp o rate d , to acquire 90 per cent or m ore of the v oting shares of T he B ank of T aney C o u n ty , F o rsy th , M issouri. LAW DEPARTMENT 813 Robertson, Daane, and Sheehan. Absent and not voting: Gov ernors Mitchell, Brimmer, and Bucher. (Signed) T ynan Smith, Secretary of the Board. [seal] Order D enying A cquisition of B ank First Union, Incorporated, St. Louis, Missouri, has applied for the Board’s approval under § 3(a)(3) of the Bank Holding Company Act (12 U.S.C. 1842(a)(3)) to acquire 90 per cent or more of the voting shares of The Bank of Taney County, Forsyth, Missouri (“ Forsyth 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)). On the basis of the record, the application is denied for the reasons set forth in the Board’s Statement of this date. By order of the Board of Governors, effective August 8, 1972. Voting for this action: Chairman Burns and Governors Robertson, Daane, and Sheehan. Absent and not voting: Gov ernors Mitchell, Brimmer, and Bucher. (Signed) T ynan Sm ith, Secretary of the Board. [seal] S tatement Nature of transaction. First Union, Incorpo rated, St. Louis, Missouri, a registered bank hold ing company, has applied to the Board of Gover nors, pursuant to § 3(a)(3) of the Bank Holding Company Act (12 U.S.C. 1842(a)(3)), for prior approval of the acquisition of 90 per cent or more of the voting shares of The Peoples Bank and Trust Company of Branson, Branson, Missouri ( “ Bran son Bank” ), The Bank of Crane, Crane, Missouri (“ Crane Bank” ), and The Bank of Taney County, Forsyth, Missouri (“ Forsyth Bank” ). While each of the applications has been sepa rately considered and the proposed acquisition of Forsyth Bank is subject to a separate Board Order, because of certain common facts and circum stances this Statement contains the Board’s find ings and conclusions with respect to all of the applications. Statutory considerations. Applicant, the third largest bank holding company and banking orga nization in Missouri, controls ten banks with aggregate deposits of $1,048.7 million, represent ing approximately 8.3 per cent of the commercial bank deposits in the State. (All banking data are as of December 31, 1971, adjusted to reflect bank holding company acquisitions and formations ap proved by the Board through June 30, 1972.) As a result of consummation of the three proposed acquisitions herein, Applicant’s share of Statewide deposits would increase by 0.3 percentage points, and its position in relation to the State’s other bank holding companies and banking organizations would remain unchanged. Branson Bank ($16.5 million in deposits) and Forsyth Bank ($8.9 million in deposits) are the largest and third largest, respectively, of three banks competing in the Taney County banking market, and control a combined share of 62.7 per cent of total deposits in that market. The present degree of common ownership between the two banks, while significant, is not as conclusive as would be the case upon affiliation with Applicant. The proposed affiliation would place the two banks under common control, which would tend to have a significant impact on concentration in Taney County. Furthermore, acquisition of both Branson Bank and Forsyth Bank would eliminate a banking alternative since the banks in Branson are the closest alternatives for residents of Forsyth. Ap proval would also foreclose potential competition as the operations of Branson Bank and Forsyth Bank are expected to be drawn much closer to gether by the planned establishment of remote facilities for each Bank at Hollister and Rockaway Beach, respectively. Completion of such facilities, under Missouri’s new bank facility law, would substantially increase the likelihood of meaningful competition developing between them in the fu ture. Crane Bank ($8.5 million in deposits) is the largest of two banks in Stone County, the adjacent county to Taney County. Acquisition of Crane Bank and Branson Bank would have no anticom petitive consequences as the two banks are 35 miles apart, serve separate counties which consti tute separate banking markets, and have an inter vening bank between them. Potential competition would not be adversely affected. No existing competition with Applicant’s sub sidiary banks would be eliminated, as Applicant’s closest subsidiary bank is located in Springfield, Missouri, about 30 miles from Crane Bank and 40 miles from Branson Bank. On the basis of the record before it, the Board concludes that the competitive effects of the 814 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 proposed acquisitions, with the exception of For syth Bank, are consistent with approval of the applications. The financial and managerial resources and fu ture prospects of Applicant, its subsidiary banks, and Banks, are regarded as satisfactory, in view of Applicant’s commitment to provide $350,000 in additional capital to Branson Bank and its agreement to permit Branson Bank to retain all earnings for a period of three years. Affiliation with Applicant will permit higher loan limits through loan participation arrange ments, and allow each of the communities in volved to be afforded trust and investment man agement services. Considerations relating to the convenience and needs of the communities to be served lend weight for approval. With the excep tion of the Forsyth Bank proposal, any anticom petitive consequences inherent in the proposed acquisitions are clearly outweighed by the proba ble effect of the transactions in meeting the con venience and needs of the communities to be served. The likely adverse competitive conse quences that would attend the Forsyth Bank ac quisition are not outweighed by benefits to the community to be served. Conclusion. On the basis of all relevant facts before it, the Board concludes that the proposed acquisitions of Branson Bank and Crane Bank would be in the public interest and these applica tions should be approved. The proposed acquisi tion of Forsyth Bank would not be in the public interest and that application should be denied. THE CENTRAL BANCORPORATION, INC., CINCINNATI, OHIO O r d e r A p p r o v in g A c q u is it io n o f B a n k The Central Bancorporation, Inc., Cincinnati, Ohio, has applied for the Board’s approval under § 3(a)(3) of the Bank Holding Company Act (12 U .S.C. 1842(a)(3)) to acquire 100 per cent of the voting shares (less directors’ qualifying shares) of the successor by merger to First National Bank of Canton, Canton, Ohio (“ Bank” ). The bank into which Bank is to be merged has no significance except as a means to facilitate the acquisition of the voting shares of Bank. Accord ingly, the proposed acquisition of the successor organization is treated herein as the proposed ac quisition 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 tenth largest banking organi zation and sixth largest multi-bank holding com pany in Ohio, controls five banks with deposits of $605.7 million. (All banking data are as of December 31, 1971, and reflect holding company formations and acquisitions approved through May 31, 1971.) The acquisition of Bank ($157 million deposits) would increase Applicant’s share of total State deposits by .67 percentage points, and al though it would become the ninth largest banking organization, it would remain the sixth largest multi-bank holding company in Ohio. Con summation of the acquisition would not result in any undue concentration of banking resources within the relevant areas of the State. Bank is headquartered in Canton, and operates ten offices in Stark County and one office in Carroll County. Bank is the second largest of 15 banks in the Canton banking market, and holds 21 per cent of the total deposits for the market. Applicant does not compete in the market at the present time, and the closest banking offices of Bank and Appli cant are 80 miles apart. Applicant’s other affiliates are located between 100 and 250 miles from Can ton and none of its subsidiaries obtains any sub stantial amount of banking business from the Can ton market. It appears that there is little likelihood for the development of any substantial amount of future competition between offices of Applicant and Bank due to the distances separating the banking offices and the cross-county branching limitations imposed by State laws. Should Bank become the nucleus for the formation of a small bank holding company, Applicant and Bank might compete in local markets in the future. This factor could have a slightly adverse effect on possible future competition. However, in considering the future development of the overall banking struc ture in Ohio, there are a number of large banks in the State that could develop into holding com panies over time. Thus, the loss of Bank as a potential member of a holding company would not have a serious anticompetitive effect. The financial and managerial resources of Applicant, its subsidiary banks and Bank are gen erally satisfactory, and prospects for each appear favorable. Banking factors are consistent with ap proval of the application. The major banking needs of the Canton area 815 LAW DEPARTMENT are presently being served. However, the popula tion of Stark County, primarily centered in Can ton, is rapidly increasing along with its industrial expansion. Credit is needed to finance the purchase of homes and automobiles, as well as to support the expansion in industrial activity. Bank has been limited heretofore in its lending activities. Appli cant proposes to increase Bank’s lending capabil ities, expand its trust services and make interna tional services available at Bank. The expanded and enlarged services Bank would be able to offer its customers would serve the convenience and needs of the communities. Therefore, consid erations under this factor are consistent with and lend support to approval of this application. It is the Board’s judgment that the convenience and needs aspects of the instant proposal outweigh the slightly adverse competitive consequences and that consummation of the proposed acquisition would be in the public interest, and that the application should be approved. On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be 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 Cleveland pursuant to delegated authority. By order of the Board of Governors, effective August 9, 1972. Voting for this action: Chairman Burns and Governors Mitchell, Daane, and Sheehan. Voting against this action: Governors Robertson and Brimmer. Absent and not voting: Governor Bucher. [seal] (Signed) T ynan Sm ith, Secretary of the Board. D issenting S tatement of Governors Robertson and B rimmer We would deny this application because there are no overriding public benefits which result from the affiliation to outweigh the adverse effects on competition or to bring the proposal within the exception prescribed in the Bank Holding Com pany Act (12 U .S.C . 1842). Bank is located in Canton, the county seat of Stark County— approximately 57 miles from Cleveland, 37 miles from Youngstown, and 23 miles from Akron. It serves the Canton Market, a highly industrialized area with a population of 400,000. It holds deposits of $157.1 million (representing 21.0 per cent of total deposits), and it ranks as the second largest of 15 banks in the market. Applicant, with deposits of $605.7 mil lion, centers its operations in Cincinnati where its lead bank holds deposits of $519.5 million. The acquisition of Bank would give Applicant control of aggregate deposits of $762.7 million, representing an immediate increase of 26 per cent. The 15 Canton Market banks operate 52 offices and control deposits ranging from $4 million to $186 million. The three largest of these banks (including Bank) control 64 per cent of total de posits. The acquisition by Applicant of the second largest bank in the market would further strengthen Bank’s position and would solidify the high degree of concentration of banking resources already present there. As a result of consummation of the acquisition, the 12 smaller Canton Market banks, with deposits ranging from $4 to $54 million, would be placed in an even more difficult compet itive position. Applicant is capable of entering the market de novo or through acquisition of a smaller area bank. Either of these alternatives could have procompetitive effects on area banking. We are also mindful that this acquisition forecloses future competition between Applicant’s subsidiaries and Bank. That institution, the twenty-fourth largest banking organization in Ohio— absent this pro posal— is a potential lead bank in a local or possi ble Statewide bank holding company formation. Our review of the record indicates that conveni ent and full banking services are made available to residents of the area by existing financial insti tutions and that no unserved public need or benefit would be added by consummation of this proposal. We have concluded, therefore, that banking com petition in Ohio on a local and Statewide basis would best be served by a denial of this application and by requiring Applicant to resort to less anti competitive means of entry. THE CHASE MANHATTAN CORPORATION, NEW YORK, NEW YORK Order A pproving A cquisition of B ank The Chase Manhattan Corporation, New York, New York, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under section 3(a)(3) of the Act (12 U .S.C. 1842(a)(3)) to ac quire 100 per cent of the voting shares (less directors’ qualifying shares) of Chase Manhattan Bank of Central New York (National Association), Syracuse, New York (“ Bank” ), a proposed new bank. 816 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 Notice of receipt of the application has been given in accordance with section 3(b) of the Act, and the time for filing comments and views has expired. The Board has considered the application 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 finds that: Applicant, the second largest banking organi zation in New York in terms of domestic deposits, controls two subsidiary banks with aggregate de posits of approximately $13.6 billion, representing 14.1 per cent of the total deposits in commercial banks in the State. (Unless otherwise noted, de posit data are as of December 31, 1971, and market data are as of June 30, 1970, adjusted to reflect bank holding company formations and ac quisitions approved by the Board through June 16, 1972.) Since Bank is a proposed new bank, no existing competition would be eliminated nor would concentration be increased in any relevant area. Bank will be located in downtown Syracuse, and will represent the initial entry by Applicant into the upstate New York markets. Applicant’s two existing subsidiaries are presently barred from branching into the Syracuse market until Statewide branching becomes effective on January 1, 1976. Applicant’s closest banking office is located about 250 miles southeast of Bank. Applicant’s acquisi tion of Bank would have a procompetitive effect by introducing a new competitor into the highly concentrated Syracuse banking market, where four of the 11 banks competing in that market control over 90 per cent of total market deposits. Appli cant’s entry into this market should stimulate competition without having adverse effects on any competing bank. The financial condition, management, and pros pects of Applicant and its subsidiary banks are regarded as satisfactory. Since Bank will be able to draw on Applicant’s financial and managerial resources, its prospects are favorable and the banking factors are consistent with approval. Considerations relating to the convenience and needs of the community to be served lend weight toward approval as Bank will provide an additional source of full banking services. It is the Board’s judgment that consummation of the proposed ac quisition would be in the public interest and that the application should be approved. Applicant owns two nonbanking subsidiaries, Berkeley Service Corporation, Boston, Massachu setts, and Dovenmuehle, Inc., Chicago, Illinois, which were acquired on June 4, 1969, and on December 19, 1969, respectively. Berkeley Ser vice Corporation is a service agency for the Shapiro Factors Division of The Chase Manhattan Bank, and Dovenmuehle, Inc., is a mortgage servicing company. The approval herein neither provides authority to Applicant to continue in the nonbank activities nor to retain nonbank shares nor requires the Applicant to modify or terminate said activities or holdings. However, consummation of the proposal herein is subject to the continuing authority of the Board to require modification or termination of such activities or holdings (within a period no shorter than two years), if the Board determines that the continued combination of banking and nonbanking interests is likely to have an adverse effect on the public interest. The provision of any credit, property or services by the holding company or any affiliate 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 Hold ing Company Amendments of 1970. The non banking activities of Applicant shall not be altered in any significant respect from those engaged in at the time of the filing of the application herein nor shall they be provided at any location other than as described in said application, except upon compliance with the procedures of § 225.4(b)(1) of Regulation Y; and no merger, or consolidation, or acquisition of assets other than in the regular course of business, to which Applicant or any affiliate thereof is a party, shall be consummated without prior Board approval. 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 that date, and (c) Chase Manhattan Bank of Central New York (National Association), Syra cuse, New York, shall be opened for business not later than six months after the effective date of this Order. Each of the periods described in (b) and (c) may be extended for good cause by the Board, or by the Federal Reserve Bank of New York pursuant to delegated authority. By order of the Board of Governors, effective August 10, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governor Daane. (Signed) T ynan Sm it h , [seal] Secretary of the Board. 817 LAW DEPARTMENT C o n c u r r in g Statem en t of G overnor B r im m e r As I stated in my Dissenting Statement to the Board’s approval of the application by First Na tional City Corporation to acquire the successor by merger to The National Exchange Bank of Castleton-on-Hudson (37 Federal Register 14259), a review of the nonbanking activities of a one-bank holding company which became regulated as a result of the 1970 Amendments should precede Board approval of an application by that company to acquire an additional bank. However, I concur in the Board’s approval of this application. A preliminary investigation suggests that the activities engaged in by Applicant’s two nonbank ing subsidiaries are permissible activities for a bank holding company under current Board regu lations. The question of whether Applicant’s con tinued ownership of the indicated nonbanking ac tivities poses anticompetitive problems remains open, but in passing it should be observed that these activities are quite modest in both volume and scope. A comprehensive review of Applicant’s nonbanking activities will be undertaken shortly. AMERICAN BANCSHARES, INCORPORATED, NORTH MIAMI, FLORIDA O r d e r A p p r o v in g A c q u is it io n o f B a n k s American Bancshares, Incorporated, North Miami, Florida, a bank holding company within the meaning of the Bank Holding Company Act, has applied in separate applications 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 each of the following banks in Florida: (1) Second National Bank of Clearwater, Clearwater (“ Clearwater Bank” ); (2) Sterling National Bank of Davie, Davie ( “ Davie Bank” ); and (3) First National Bank of the Upper Keys, Tavernier (“ Keys Bank” ). Notice of these applications, affording opportu nity 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 second smallest among twentythree multi-bank holding companies in Florida, controls three banks with aggregate deposits of $78.1 million, representing approximately .5 per cent of total deposits of commercial banks in the State. (All banking data are as of December 31, 1971, and reflect bank holding company forma tions and acquisitions as of May 31, 1971.) Upon consummation of the proposals herein, Applicant would control .85 per cent of total deposits of commercial banks in Florida and would rank 19th among the bank holding companies in the State. Consummation of Applicant’s proposals herein would constitute its initial entry into the relevant market of each bank proposed to be acquired. Clearwater Bank ($19.5 million of deposits) ranks eleventh among 18 banks operating in North Pinellas County (which approximates its market) and holds 3.7 per cent of total deposits of com mercial banks in that area. Applicant’s subsidiary bank closest to Clearwater Bank is located in St. Petersburg, Florida, 19 miles south of Clearwater Bank’s only office, and is regarded as operating in a separate banking market. Davie Bank ($25.8 million of deposits) is the eighth largest of 14 banks in the Hollywood (Florida) area, which approximates its market and holds approximately 6 per cent of total deposits of commercial banks in that area. Applicant’s subsidiary bank closest to Davie Bank is located in North Miami, 14 miles southeast of Davie Bank’s only banking office and operates in a sepa rate banking market. Keys Bank ($17.2 million of deposits) operates one banking office in the northern portion of the Florida Keys in Monroe County, Florida, and is the only bank located in its market. Applicant’s subsidiary bank closest to Keys Bank is located in North Miami, 82 miles north of Keys Bank. It appears that no meaningful competition exists between any of the banks Applicant proposes to acquire, nor between any of Applicant’s present subsidiary banks and any of Applicant’s proposed subsidiary banks. In addition, the prospect of such competition developing in the future between any of these banks appears unlikely, particularly in view of (1) the distances separating these banks, (2) the number of banks in intervening areas, (3) the inconvenience of travel between these banks, and (4) the provisions of Florida banking law which prohibit branch banking. On the record before it, the Board concludes that consummation of Applicant’s proposals would not have an ad verse effect on competition in any relevant area and, in fact, may have a procompetitive effect in the markets of Clearwater and Davie banks where affiliation with Applicant will enable those banks to compete more effectively with banks that are 818 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 now members of bank holding company organi zations larger than Applicant. The financial condition and managerial re sources of Applicant and its subsidiary banks ap pear generally satisfactory. The future prospects of Applicant and its present subsidiary banks ap pear favorable, particularly in light of Applicant’s commitment to strengthen the capital position of its subsidiary banks. The financial condition and prospects of Clearwater, Davie, and Keys banks appear generally satisfactory. Applicant’s stated plans to strengthen the capital position of Davie and Keys banks soon after acquisition of those banks and to provide additional managerial re source strength to the proposed subsidiary banks should increase their ability to provide expanded and more efficient services to their respective communities. Considerations relating to the bank ing factors are consistent with and lend some weight toward approval of these applications. Al though the banking needs of the relevant commu nities generally appear adequately served by the existin g banking organizations, Applicant proposes to provide trust services to customers of the subject banks through its lead bank and ability to enable these banks to accommodate larger credit requests through participations. These consid erations are consistent with approval. It is the Board’s judgment that consummation of the proposed transactions would be in the public in terest and that the applications should be approved. On the basis of the record, the applications are approved for the reasons summarized above. None of the acquisitions shall be consummated (a) be fore the thirtieth calendar day following the effec tive 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 August 14, 1972. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Daane. [s e a l] (Signed) T y n a n S m i t h , Secretary of the Board. FIRST AT ORLANDO CORPORATION, ORLANDO, FLORIDA O r d e r D enying A cquisition of B a n k First at Orlando Corporation, Orlando, Florida, 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 at least 90 per cent of the voting shares of The Seminole Bank of Tampa, Tampa, Florida (“ Seminole 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 26 banks with aggregate de posits of $904.6 million, representing 5.57 per cent of the deposits for commercial banks in Florida, and is the fourth largest banking organi zation in the State. (All banking data are as of December 31, 1971, and reflect holding company formations and acquisitions approved through June 30, 1972.) The acquisition of Seminole Bank ($34 million in deposits) would increase Applicant’s control of State deposits to 5.75 percentage points, and Applicant’s rank among State banking organi zations would remain unchanged. Applicant presently controls Tampa Bay Bank (deposits of $24.1 million), the ninth largest bank in the Tampa Market. Seminole Bank, which Applicant seeks to acquire through this proposal, is also in the Tampa Market. The two banks hold 2.2 and 3.1 per cent, respectively, of total market deposits. If this application were approved, Applicant would become the market’s fourth larg est banking organization and would control 5.3 per cent of total deposits. The two banks are 10.5 miles apart, their service areas overlap slightly, and each bank obtains approximately 7 per cent of its deposits and loans from the service area of the other. Consummation of the proposal, there fore, would eliminate this existing competition. Tampa, Florida’s fifth largest city, is located in Hillsborough County, one of Florida’s most im portant agricultural areas; it is also an important manufacturing center. The Tampa Harbor handles the bulk of Florida’s shipping tonnage. In this prosperous area, the Tampa Banking Market is highly concentrated; 71 per cent of total deposits are held by three banking organizations. Seminole Bank is one of five remaining unaffiliated banks located in close proximity to the downtown Tampa area. It is especially attractive as a potential affili ate of a bank holding company making its initial entry into the area. The acquisition of Seminole Bank by a banking organization not presently represented in the 819 LAW DEPARTMENT Tampa Market would have a salutary effect on the existing high degree of concentration present in this area and could have a beneficial effect on competition in the relevant areas. The Board con cludes, therefore, that the competitive factors re lating to this application are adverse; that con summation of the proposed transaction would (1) eliminate some existing competition between Applicant’s Tampa subsidiary and Seminole Bank; (2) eliminate a banking alternative in this concen trated market; and, most importantly, (3) remove Seminole Bank as a potential means of entry by other organizations not presently represented in this market. Accordingly, competitive consid erations require denial of this application unless the anticompetitive effects of the proposal are outweighed by benefits to the public in meeting the convenience and needs of the communities to be served. The financial conditions of Applicant and its subsidiaries are considered to be generally satis factory, and their managements are deemed capa ble. Prospects for the group appear favorable. The financial condition and managerial resources of Seminole Bank are considered to be generally satisfactory, and prospects for its future growth and development are also favorable; its deposits increased 54 per cent from 1967 to 1971. Thus, banking factors are consistent with approval but provide no significant support for such action. There are 19 banking organizations operating in the Tampa Market. No prime banking needs or conveniences are going unserved at this time. Applicant’s proposed initiation of trust services and the hiring of a business development officer at Seminole Bank would not be important conse quences of the proposed affiliation. Accordingly, considerations relating to the convenience and needs of the communities to be served, while consistent with approval of the application, do not outweigh the adverse competitive effects of the proposed acquisition. It is the Board’s judgment that consummation of the proposed acquisition would not be in the public interest and the ap plication 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 August 17, 1972. Voting for this action: Chairman Burns and Governors Robertson, Brimmer, Sheehan, and Bucher. Absent and not voting: Governors Mitchell and Daane. (Signed) [s e a l ] T ynan Smith, Secretary of the Board. ALABAMA BANCORPORATION, BIRMINGHAM, ALABAMA O r d e r A p p r o v in g A c q u is it io n s o f B a n k s Alabama Bancorporation, Birmingham, Ala bama, 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 succes sors by merger to (1) The American National Bank & Trust Co. of Mobile, Mobile, Alabama (“ Mo bile Bank” ), and (2) First National Bank of Deca tur, Decatur, Alabama (“ Decatur Bank” ). The banks into which Mobile Bank and Decatur Bank are to be merged have no significance except as a means to facilitate the acquisitions of voting shares of Mobile Bank and Decatur Bank. Ac cordingly, the proposed acquisitions are treated herein as the proposed acquisitions of the shares of Mobile Bank and Decatur Bank. Notice of the applications, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the applications and all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Applicant controls one bank with deposits of approximately $648 million, representing about 12.4 per cent of deposits of commercial banks in Alabama.1 Consummation of the two proposals would increase Applicant’s share by 1.8 per cent, resulting in Applicant controlling approximately 14.2 per cent of deposits in commercial banks in Alabama. However, this would not result in a significant increase in the concentration of banking resources in the State. Mobile Bank (deposits of about $64 million) is the third largest bank in the Mobile market with approximately 11 per cent of market deposits,2 while Decatur Bank (deposits of about $35 mil lion) is the second largest in the Decatur market with approximately 26 per cent of market depos its.3 Acquisition of Mobile Bank and Decatur Bank would not have a substantial effect on existing competition since Decatur Bank is over 70 miles and Mobile Bank about 225 miles from Bir*A11 b a n king da ta are as of Ju n e 30, 1971, w ith the e x ce p tio n o f d ata for the D e ca tu r m a rk e t w here the d a ta is as of June 30, 1970. 2T he M obile b a n k in g m a rk e t is a p p ro x im ated by B aldw in and M obile C o u n ties. 3T he D ecatu r b an k in g m a rk e t is a p p ro x im ated by M o rg an C ounty. 820 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 mingham, the headquarters of Applicant’s banking subsidiary. There is some existing competition between Engel Mortgage Compay (“ Engel” ), a subsid iary of Applicant’s lead bank, and Mobile Bank and Decatur Bank, since Engel participates to a certain degree in the mortgage banking business in both Decatur and Mobile. In 1971, Engel orig inated a total of $7.1 million in loans in the Mobile area, most of which were FHA-VA loans on 1-4 family homes. During the same period of time, Mobile Bank originated approximately $1 million in conventional loans on 1-4 family homes. The total mortgage originations on 1-4 family residences in the Mobile area in 1971 was between $70 to $87 million; thus, it appears that neither Mobile Bank nor Engel has a major share of this market. Therefore, consummation of the transac tion would have only a slightly adverse effect on competition for mortgage originations on 1-4 fam ily residences in the Mobile area. Also, in 1971 Engel had total mortgage origi nations of $1.5 million in the Decatur area. During the same period, Decatur Bank originated a total of $0.7 million in mortgage loans on 1-4 family homes. Total mortgage originations in 1971 in the Decatur area on 1-4 family homes was between $22-$24 million. Thus, both Decatur Bank and Engel accounted for only a modest proportion of the loan origination business in the Decatur mar ket, so that, as in the Mobile market, the competi tive consequences are only slightly adverse. The Department of Justice filed comments with regard to both proposals. The Department con tended that approval of the applications would have a significantly adverse effect on potential competition between Applicant and Mobile Bank and Decatur Bank. In the Department’s view, Applicant, as the largest banking organization in Alabama, is one of the most likely entrants into markets throughout the State. The Department stated that the Mobile market was a highly con centrated one in terms of banking resources, and that Mobile Bank was the third largest bank in the market. For these reasons, the Department asserted that approval of the application would have a substantially adverse effect on competition in the Mobile market. In addition, the Department contended that the acquisition of Mobile Bank would have signifi cantly adverse effects on a Statewide level since Mobile Bank was believed to be one of only a small number of banks in Alabama which were capable of becoming significant components of new bank holding companies. The Department stated that banks comparable in size to Mobile Bank should be preserved in order to facilitate the possibility of the formation of additional holding companies in Alabama. The Department considered the Decatur market, in which Decatur Bank is the second largest bank, to be highly concentrated. Since Applicant was the largest of the three Statewide holding compa nies in Alabama that were not presently repre sented in Decatur, the Department viewed the proposed acquisition of Decatur Bank as having a significantly adverse effect on potential competi tion. Applicant was given an opportunity to reply and did so. In Applicant’s view, the Mobile market is not conducive for de novo entry since both population growth and rate of per capita income growth in the Mobile market were below the State averages between 1960 and 1970. In addition, Applicant pointed out that the Mobile economy had suffered a severe loss with the closing of a nearby air force base. Since the two largest Mobile banks control over 70 per cent of deposits in the Mobile market, Applicant viewed its proposed affiliation to be procompetitive, one likely to aid in the eventual deconcentration of the market. Applicant also viewed the Decatur market as being unattractive for de novo entry by reason of its low population per banking office. No other bank in the Decatur area that would provide more m eaningful com petition to the largest organi zation, which is already affiliated with a bank holding company, was available. The other independent bank headquartered in Decatur has an existing business relationship with a bank holding company, and the two banks located in Morgan County are prevented by law from branching into Decatur. The record indicates that population growth in the Mobile market between 1960 and 1970 was 3.7 per cent. However, the rate of growth between 1965 and 1970 was a negative 4.2 per cent. This decline, plus the curtailment of military expendi tures in the area, make prospects for the area unfavorable. The Board concludes that the Mobile market is not attractive for de novo entry. More over, the proposed acquisition could assist in that area’s economic expansion. Mobile Bank ranks a distant third in the market; the two largest banks are both over three times the size of Bank. Affil iation with Applicant could make Mobile Bank a stronger competitor to these two large banking organizations which now tend to dominate the 821 LAW DEPARTMENT market. The resulting increase in competition would, in the Board’s view, serve to stimulate economic expansion in the Mobile area. The Decatur market does not appear attractive for de novo entry since the population per banking office is considerably less than the Statewide average. A4ditionally, there are no other suitable banks that would be available to Applicant. The largest banking organization in Decatur is already associated with a bank holding company, and the other bank located in Decatur has an existing affiliation with another organization. The only two remaining banks in the Decatur market are both located in Hartselle, about 13 miles from Decatur. Neither of these banks can branch into Decatur under present law so that they are unsuitable for entry by Applicant. Moreover, the proposed affil iation with Decatur Bank could be procompetitive since the largest bank in the market is a subsidiary of Central and State National Corporation of Ala bama and has deposits of $253 million. Moreover, this bank is the third largest in Alabama and operates under grandfather privileges in 12 coun ties. Affiliation with Applicant should enable Decatur Bank to give stronger competition to this large organization. The Board concludes that competitive considerations of the proposed ac quisitions of both Mobile Bank and Decatur Bank are consistent with approval. The financial and managerial resources and fu ture prospects of Applicant, its subsidiary banks, and Mobile Bank and Decatur Bank are regarded as generally satisfactory. Applicant does propose to provide additional capital for Mobile Bank so that banking considerations lend support for ap proval of the acquisition of Mobile Bank and are consistent with approval of the acquisition of Decatur Bank. Considerations relating to the con venience and needs of the communities to be served are consistent with approval of the Decatur application and lend some weight for support of approval of the Mobile Bank acquisition since Applicant will be able to make use of Mobile Bank’s active International Department in the Bir mingham area which presently does not have a bank with an international department. It is the Board’s judgment that the proposed transactions are 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 Atlanta pursuant to delegated authority. By order of the Board of Governors, effective August 17, 1972. Voting for this action: Chairman Burns and Governors Mitchell and Sheehan. Voting against this action: Governors Robertson and Brimmer. Absent and not voting: Governors Daane and Bucher. [sea l] (Signed) T ynan Smith, Secretary of the Board. D issenting Statement of Governors R obertson and B rimmer We would deny both these applications by Ala bama’s largest banking organization. The majority does not deny that there is existing competition between Applicant’s subsidiary, Engel Mortgage Company, and each of the two banks sought to be acquired. There has been no showing that competition between Applicant and the two banks in this market is insubstantial; in fact, the indications are that it is probably sub stantial. The proposed acquisitions are, therefore, likely to cause a substantial lessening of existing competition in the market for mortgage origina tions in both the Mobile and Decatur areas. As regards the application to acquire Mobile Bank, the fact that the Mobile area has experienced little growth in recent years does not, in and of itself, signify that the market is unattractive for de novo entry. The Mobile area is underbanked as measured by population per banking office as compared to the Statewide average. Even if popu lation remains static in the Mobile area, there would be an incentive for Applicant to enter de novo. However, the lack of growth and population decline in Mobile can be traced to the closing of a large military base in 1964. There is no indica tion that the Mobile area will not in the future overcome this setback and expand, both in terms of population growth and economic activity. In our view, the long-term prospects for the Mobile area are favorable and, with the passage of a few years, likely to attract entry of other bank holding companies. The three largest banking organizations in the Mobile market presently hold over 80 per cent of market deposits. Entry by a likely potential com petitor through de novo means is particularly im portant in such a setting. With the financial re sources and strength of Applicant behind a de novo bank, deconcentration of the market and better 822 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 economic performance could result. Additionally, we see no benefits to the public to offset the adverse competitive effects that are present in this application. The majority noted that Applicant has agreed to increase capital of Mobile Bank and also that acquisition of Mobile Bank will enable Applicant to provide international banking services in the Birmingham area. The short answer to these “ benefits” is that the Mobile Bank can surely increase capital without being acquired by the largest banking organization in Alabama, and the latter organization can certainly provide interna tional services for Birmingham— given its size— without having to resort to acquisition of a large Mobile bank. We cannot join the majority in approving the acquisition of Decatur Bank. Decatur Bank is the second largest bank in the Decatur market, with over 26 per cent of market deposits. Moreover, the two largest organizations within the Decatur market have close to 75 per cent of area deposits. Given this concentrated setting, and the fact that Applicant as the largest banking organization in Alabama is one of the most likely potential en trants into the Decatur area, we feel that the competitive considerations alone prohibit con summation of the proposal. We find no public benefits which might out weigh the adverse competitive effects inherent in each application. We believe that Applicant’s ac quisition of each Bank will tend to solidify the already high level of concentration present in both markets. The absence of public benefits and the presence of anticompetitive effects mandate denial of both applications. THE ALABAMA FINANCIAL GROUP, INC., BIRMINGHAM, ALABAMA O r d e r A p p r o v in g A c q u is it io n o f B a n k s The Alabama Financial Group, Inc., Bir mingham, 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 successors by merger to (1) The First National Bank of Dothan, Dothan, Alabama (“ Dothan Bank” ) and (2) Peoples National Bank of Huntsville, Huntsville, Alabama (“ Huntsville Bank” ). The banks into which Dothan Bank and Huntsville Bank are to be merged have no signifi cance except as a means to facilitate the acquisition of voting shares of Dothan Bank and Huntsville Bank. Accordingly, the proposed acquisitions are treated herein as the proposed acquisitions of the shares of Dothan Bank and Huntsville Bank. Notice of the applications affording opportunity for interested persons to submit comments and views has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired and the Board has considered the applications and all comments received in light of the factors set forth in § 3(c) of the Act (12 U .S.C . 1842(c)). Applicant controls one bank with aggregate de posits of approximately $357 million, representing about 6.8 per cent of deposits in commercial banks in Alabama.1 Consummation of both proposals would increase Applicant’s share of deposits by 1.5 per cent so that Applicant would control 8.3 per cent of deposits of commercial banks in the State. Such an increase would not be significant in terms of the concentration of banking resources in Alabama. Dothan Bank (deposits of about $55 million) is the largest bank in the Dothan market, with approximately 54 per cent of market deposits.2 Huntsville Bank (deposits of about $21 million) is the fourth largest of six banks in the Huntsville market, with about 9.3 per cent of market depos its.3 Due to Alabama’s branching laws and the distances between Applicant’s Birmingham loca tion and Huntsville and Dothan, which are, re spectively, over 100 and about 200 miles distant, there is no substantial existing competition be tween Applicant, Dothan Bank and Huntsville Bank. The Department of Justice filed comments with regard to both proposals. In the Department’s view, there are only a relatively few banking organizations in Alabama, including this Appli cant, that are significant potential entrants into all markets in the State. The Department found the Dothan market to be highly concentrated and con sidered it important that Applicant enter the market through some means other than by acquisition of the “ dominant” bank. Affiliation of Dothan Bank, the twelfth largest banking organization in Ala bama, with Applicant would also eliminate the former as a member of another possible Statewide or regional banking group. For these reasons, the Department concluded that the acquisition of *A11 b a n k in g da ta are as of June 30, 1971, w ith the e x ce p tio n of da ta for the H u n tsv ille M ark et w here the da ta are as of June 30, 1970. 2T h e D othan b a n k in g m a rk e t is ap p ro x im ated by the city of D othan. 3T h e H u n tsv ille b an k in g m a rk e t is a p p ro x im a te d by M adison C o u n ty . 823 LAW DEPARTMENT Dothan Bank would have a substantially adverse effect on competition. The Department viewed Applicant as one of the two most likely entrants into the Huntsville mar ket, where the three largest banks control approxi mately 79 per cent of total commercial deposits and, two of the four largest holding companies in Alabama are already present. The Department concluded that Huntsville Bank’s affiliation with Applicant would have an adverse effect on com petition. Applicant replied to the Department’s comments by stating that the Dothan market was not attrac tive for de novo entry. Applicant pointed to such indicia as population and deposits per banking office, per capita income, and the moderate popu lation growth in Dothan as reasons supporting this view. Since each of the two other banks head quartered in Dothan had existing relationships with other holding companies, there was no other means available for Applicant to enter this market. Moreover, Applicant asserted that Dothan Bank was not capable of serving as a lead bank for a new holding company due to its remoteness and relatively small size. Since Huntsville Bank ranks as the fourth largest of six banks in the Huntsville market and must compete with much larger organizations, Appli cant viewed the proposed acquisition of Huntsville Bank as procompetitive in that more vigorous competition would result. The record indicates that the Dothan market is not attractive for de novo entry. Population per banking office is considerably under the compara ble State ratio, while deposits per banking office are also less than the State average. Moreover, the Dothan market had only moderate population growth during the last decade. The Board, there fore, concludes that Applicant is not a likely de novo entrant into this market. It further appears that there is no likelihood that Applicant could enter the City of Dothan other than through ac quisition of Dothan Bank. The two other banks in Dothan have existing relationships with other bank holding companies; a pending application from a holding company seeks approval to acquire one of these banks. In the Huntsville market, deposits per banking office are well below the State average. Although the market’s population growth during the last decade was high, this growth has leveled off substantially from 1965 to 1970. Thus, the Board views the Huntsville market as an unattractive market for de novo entry at this time. Acquisition of the Huntsville Bank, fourth largest of six banks in the market, could strengthen Bank’s competitive position. The three larger banks in the market are substantially larger than Huntsville Bank and two of them are already affiliated with the second and third largest holding companies in Alabama. The proposal offers Applicant the opportunity to in crease Huntsville Bank’s ability to compete with these larger organizations and would, therefore, be procompetitive. For these reasons, the Board concludes that the acquisition of both Dothan Bank and Huntsville Bank are consistent with competi tive considerations. The financial and managerial resources and fu ture prospects of Applicant, its subsidiary bank and Huntsville Bank are regarded as generally satisfactory, and these considerations are consis tent with approval of the application. On the other hand, Applicant proposes to provide needed man agement depth for Dothan Bank so that banking considerations as regards the acquisition of Dothan Bank lend weight for approval of the application. Considerations relating to the convenience and needs of the communities of Dothan and Hunts ville are consistent with approval of the two ap plications. It is the Board’s judgment that the proposed transactions are 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 Atlanta pursuant to delegated authority. By order of the Board of Governors, effective August 17, 1972. Approval of acquisition of First National Bank of Dothan. Voting for this action: Chairman Burns and Governors Mitchell and Sheehan. Voting against this action: Governors Robertson and Brimmer. Absent and not voting: Governors Daane and Bucher. Approval of acquisition of Peoples National Bank of Hunts ville. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, and Sheehan. Absent and not voting: Governors Daane and Bucher. (Signed) T y n a n S m i t h , Secretary of the Board. [s e a l] D is s e n t in g S t a t e m e n t o f G o v e r n o r s R o bertson and B r im m e r We concur in the majority’s approval of the acquisition by Applicant of Peoples National Bank 824 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 of Huntsville. However, we would not approve the acquisition of The First National Bank of Dothan (“ Dothan Bank” ). At present, there are only four existing Statewide bank holding companies in Alabama. Applicant is one of them. As the Department of Justice suggested, these holding companies must be considered the most likely to enter the Dothan market, both in light of objective circumstances and by the expressed intent of the companies themselves. We are confronted here with a dominant bank in a concentrated market being acquired by one of a small number of potential entrants into that market. The Courts have ruled in comparable cases that such an acquisition violates Section 7 of the Clayton Act. (F .T .C . v. Proctor & Gamble Co et al., 386 U.S. 568 (1967), and General Foods Corp. v. F .T .C ., 386 F. (2nd) 936 (3rd Cir. 1968), cert, denied 391 U .S. 919 (1968)). The Board took a similar position in First Financial Corporation, 1972 Federal Reserve B u l l e t i n 480. In our view, the acquisition of Dothan Bank by Applicant falls squarely within the framework of these previous positions and should be denied. Another factor in our consideration is the fact that Dothan Bank will no longer be a likely member of an additional Statewide holding com pany if this application is approved. There are presently only four Statewide holding companies in the entire State of Alabama. We need to keep open avenues for the formation of additional bank holding companies in order to provide the degree of competition in the banking field that is compat ible with the public interest. Approval of the acquisition of a bank the size of Dothan Bank— the twelfth largest in the State— inhibits the formation of alternative holding companies. Unless we are content to let Alabama be divided among a handful of organizations— perhaps no more than four— which we think would not be consonant with the responsibilities imposed on the Board by the Bank Holding Company Act, we should be alert to deny applications for the acquisition of banks of the size and importance of Dothan Bank in the absence of overriding benefits to the public that offset the anticompetitive consequences arising from a pro posal. In this case, we think there must be much more concrete evidence of public benefits flowing from the proposed acquisition before the anticom petitive consequences arising from approval of this acquisition could be considered to be outweighed. Therefore, we would deny the application by this Applicant to acquire Dothan Bank. CENTRAL AND STATE NATIONAL CORPORATION OF ALABAMA, BIRMINGHAM, ALABAMA O r d e r A p p r o v in g A c q u is it io n o f B a n k Central and State National Corporation of Ala bama, Birmingham, Alabama, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s ap proval under section 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to acquire at least 80 per cent of the voting shares of Peoples Bank and Trust Com pany, Montgomery, Alabama (“ Bank” ). Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with section 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of the factors set forth in section 3(c) of the Act (12 U.S.C. 1842(c)). Applicant controls two banks with aggregate deposits of approximately $388 million represent ing about 7.4 per cent of deposits in commercial banks in Alabama.1 Consummation of the proposal would increase Applicant’s share of deposits by only .7 percentage points, and would not result in a significant increase in the concentration of the banking resources in Alabama. There is no substantial existing competition be tween Applicant and Bank (about $36 million in deposits). Moreover, approval of this application may provide procompetitive effects for the Montgomery area. Bank is the fourth largest of five banks, with about 8.8 per cent of area depos its, while the two largest organizations in Montgomery control over 75 per cent of area deposits. The introduction of Applicant into the area, through acquisition of Bank, should provide a more vigorous competitor for these two large organizations and aid in the eventual deconcentra tion of the Montgomery area. For these reasons competitive considerations are consistent with the approval of the application. The financial and managerial resources and fu ture prospects of Applicant, its subsidiary banks, and Bank, are regarded as generally satisfactory, particularly since Applicant has made a commit ment to provide additional capital to one of its subsidiary banks and also to Bank. These consid erations lend weight for approval of the applica tion. Considerations relating to the convenience ‘All banking data are as of June 30, 1971. LAW DEPARTMENT 825 and needs of the community also lend weight for approval, since Applicant proposes to expand Bank’s business development, data processing, and correspondent banking services. It is the Board’s judgment that the proposed transaction is in the public interest and that the application should be approved. On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be 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 August 17, 1972. Voting for this action: Chairman Bums and Governors Robertson, Mitchell, Brimmer, and Sheehan. Absent and not voting: Governors Daane and Bucher. [s e a l] (Signed) T y n a n S m i t h , Secretary of the Board. O r d e r A p p r o v in g A c q u is it io n o f B a n k Central and State National Corporation of Ala bama, Birmingham, Alabama, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s ap proval 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 Citizens’ Bank of Eufaula, Eufaula, Alabama (“ 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 three banks1 with aggregate deposits of approximately $478 million, repre senting about 8.1 per cent of deposits in commer cial banks in Alabama.2 Consummation of the proposal would increase Applicant’s share of de posits by only .2 percentage points and would not ^ h i s in clu d es P eo p les B an k and T ru st C o m p a n y , M o n tg o m e ry , A la b am a, w h o se acq u isitio n by A p p lic a n t w as ap p ro v ed by the B oard on A u g u st 17, 1972. 2A11 b a n k in g d a ta are as o f D ecem b er 3 1 , 1971. result in a significant increase in the concentration of banking resources in Alabama. Bank ($9 million in deposits) is the third largest in Barbour County with about 17 per cent of the market, but is the smallest bank located in the City of Eufaula. Due to Alabama’s branching laws and the fact that the closest banking subsidiary of Applicant to Bank is some 80 miles away, there is no significant existing competition between Applicant, its subsidiary banks, and Bank. There is little probability that Applicant would enter Barbour County on a de novo basis because of the small population growth and the low income per capita figures of the area, and consummation of the proposal would foreclose no substantial potential competition. The Board concludes that competitive considerations are consistent with ap proval of the application. Considerations related to the financial and man agerial resources and future prospects of Appli cant, its subsidiary banks, and Bank are regarded as generally satisfactory and consistent with ap proval, particularly since, as noted in the Order approving the acquisition of Peoples Bank and Trust Company by Applicant dated August 17, 1972, Applicant has made a commitment to pro vide additional capital for its subsidiary banks. The banking considerations are consistent with ap proval of the application. Considerations relating to the convenience and needs of the community lend some weight for approval, since Applicant proposes to provide trust services, data processing and certain marketing functions which are not now readily available in the area. It is the Board’s judgment that the proposed transaction is in the public interest and the application should be ap proved. 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 August 17, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governors Mitchell and Daane. (Signed) T ynan Sm it h , [seal] Secretary of the Board. 826 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 THE ALABAMA FINANCIAL GROUP, INC., BIRMINGHAM, ALABAMA O r d e r A p p r o v in g A c q u is it io n o f B a n k The Alabama Financial Group, Inc., Birming ham, 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 Commercial Guaranty Bank of Mobile, Mobile, Alabama (“ Bank” ). The bank into which Bank is to be merged has no significance except as a means to facilitate the acquisition of voting shares of Bank. Accordingly, the proposed acquisition 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 have 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 controls three banks with aggregate deposits of approximately $470 million, repre senting about 8.1 per cent of deposits of commer cial banks in Alabama.1 Consummation of this proposal would increase Applicant’s share of de posits by only .5 percentage points and would not result in a significant increase in the concentration of banking resources in the State. Bank (deposits of about $27 million) is the fourth largest bank in the Mobile market with control of approximately 4.2 per cent of area deposits. There is no significant existing competi tion between any of Applicant’s subsidiary banks and Bank, nor is there a reasonable probability of competition developing in the future due to the distances between Bank and Applicant’s banking subsidiaries (the closest banking subsidiary is lo cated about 175 miles from Mobile) and Ala bama’s restrictive branching laws. Affiliation by Bank with Applicant could, however, enable it to become a stronger alternative competitive force in the concentrated Mobile market, where the top two banking organizations control over 70 per cent of deposits. The Board concludes that competitive considerations are consistent with approval of the application. *A11 b an k in g d a ta are as o f D ecem b er 3 1 , 1971, adjusted to reflect A p p lic a n t’s acq u isitio n of T h e F irst N atio nal B ank o f D o th an , D o th a n , A la b am a, and P eo p les N ational B ank of H u n tsv ille, H u n tsv ille , A la b am a, ap p ro v ed by the B oard in an O rd er d ated A u g u st 17, 1972. The financial and managerial resources and fu ture prospects of Applicant, its subsidiary banks, and Bank are regarded as generally satisfactory and these considerations are consistent with ap proval of the application. Considerations related to the convenience and needs of the community to be served also are consistent with approval of the application. It is the Board’s judgment that the proposed transaction is in the public interest and that the application should be approved. On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be 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 August 18, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Brimmer, and Bucher. Absent and not voting: Chairman Burns and Governors Daane and Sheehan. [s e a l] (Signed) T y n a n S m i t h , Secretary of the Board. CENTRAL BANCOMPANY, JEFFERSON CITY, MISSOURI O r d e r A p p r o v in g A c q u is it io n o f B a n k Central Bancompany, Jefferson City, Missouri, 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 55 per cent or more of the voting shares of The First National Bank of Clayton, Clayton, Missouri ( “ 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 tenth largest multi-bank holding company in Missouri on the basis of deposits, has two subsidiary banks with aggregate deposits of $134.1 million, representing 1.1 per cent of the total commercial bank deposits in the State. (All banking data are as of December 31, 1971, ad justed to reflect holding company acquisitions and formations approved by the Board through June LAW DEPARTMENT 30, 1972.) Consummation of the proposal herein would increase Applicant’s share of commercial bank deposits in the State by less than 1 per cent, and Applicant would become the State’s ninth largest multi-bank holding company. Bank ($103.1 million deposits), located in Clayton nine miles west of downtown St. Louis, is the ninth largest of 108 banks in the St. Louis market area, and holds about 1.7 per cent of the deposits in that market. There is no significant existing competition between Bank and Appli cant’s present subsidiaries, the closest of which is over 100 miles west of Clayton. Furthermore, in light of the distances separating Applicant’s subsidiary banks and Bank, Missouri’s restrictive branching laws, and the unlikelihood that Appli cant would enter the St. Louis area de novo, there seems to be little prospect for the development of significant competition between Bank and Applicant’s subsidiaries. It appears, therefore, that consummation of the proposal herein would not likely have any adverse effects on competition and should enable Bank to compete more effectively with the larger banks in its market. The financial and managerial resources and prospects of Applicant and its subsidiaries are regarded as satisfactory and consistent with ap proval of the application. The same conclusions apply with respect to Bank’s management. With regard to the financial resources of Bank, capital is lower than the Board considers desirable for subsidiary banks of a holding company. In view of the Board’s concern in this area, Applicant proposes to augment Bank’s capital through the purchase of $1 million of Bank’s common stock and the initiation of a dividend retention program at Bank. Implementation of these measures should strengthen Bank’s financial condition and enhance its prospects. These considerations lend weight toward approval of the application. As a result of its improved financial condition and affiliation with Applicant, Bank should be able to improve and expand its range of services. Accordingly, consid erations relating to convenience and needs are consistent with approval of the application. It is the Board’s judgment that consummation of the proposed acquisition would be in the public inter est, 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 827 period is extended for good cause by the Board, or by the Federal Reserve Bank of St. Louis pursuant to delegated authority. By order of the Board of Governors, effective August 18, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Brimmer, and Bucher. Absent and not voting: Chairman Burns and Governors Daane and Sheehan. [seal] (Signed) T ynan Smith, Secretary of the Board. NORTHERN STATES FINANCIAL CORPORATION, DETROIT, MICHIGAN TWIN GATES CORPORATION, WILMINGTON, DELAWARE Order A pproving Transactions under B ank Holding Company A ct Northern States Financial Corporation, Detroit, Michigan (“ Northern States” ), has applied for the Board’s approval, under § 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 (less directors’ qualifying shares) of the successor by merger to City National Bank of Detroit, D e troit, Michigan (“ City National” ). The bank into which City National is to be merged has no sig nificance except as a means to facilitate the ac quisition of all the voting shares of City National. Accordingly, the proposed acquisition of the suc cessor organization is treated herein as the proposed acquisition of City National. As an inci dent to the acquisition of City National, Northern States would acquire indirectly 13.2 per cent of the voting shares of National Bank of Rochester, Rochester, Michigan (“ Rochester Bank” ), which shares are held by City National’s profit sharing trust for the benefit of City National’s employees; by virtue of § 2(g)(2) of the Act, Northern States would be deemed to control such shares upon its acquisition of City National. In a related application, Twin Gates Corpora tion, Wilmington, Delaware (“ Twin Gates” ), a registered bank holding company owning directly 22.5 per cent of the voting shares of City National1 and 20 per cent of the voting shares of Rochester *In ad d itio n , ten separate trusts esta b lish e d fo r the benefit o f the shareholders of T w in G ates hold an additio n al 15.8 per cent of the outstan d in g sh ares of C ity N a tio n a l. C ontrol of said shares is a ttributed to T w in G a tes by v irtue of § 2(g)(2) of the A ct. 828 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 Bank,1 has applied to the Board for approval to exchange the interest it holds in City National for 22.5 per cent of the voting shares of Northern States. Notice of the applications, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the applications and all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Northern States was organized recently in order to acquire shares of City National. As a result of consummation of the proposed transaction, Twin Gates would acquire 22.5 per cent of the out standing shares of Northern States through the exchange of shares that it holds in City National for shares of Northern States; and Northern States would become a subsidiary of Twin Gates; City National would become a direct subsidiary of Northern States and an indirect subsidiary of Twin Gates; Rochester Bank would remain a subsidiary of Twin Gates; Twin Gates would continue to control, in the aggregate, approximately $539.9 million in deposits, which represents about 2.3 per cent of the total commercial bank deposits in the State. (All banking data are as of December 31, 1971.) City National ($529 million of deposits), head quartered in downtown Detroit, operates 30 offices throughout the Detroit SMSA, and holds about 4 per cent of the commercial bank deposits therein. Rochester Bank ($10.9 million of deposits), lo cated in a suburb about 24 miles from City Na tional’s main office in downtown Detroit, operates its only office in Avon township, and holds about .04 per cent of the commercial bank deposits in the Detroit market. In the Detroit market, City National and Rochester Bank rank, respectively, as the 6th and 37th largest banking organizations among 43 banking organizations. An office of City National is located 3.3 miles south of Rochester Bank. However the banks are already subsidiaries of Twin Gates and do not appear to be in com petition with each other. Rochester Bank was organized de novo in 1964 by individuals asso ciated with City National and has been operated more or less as a branch of City National under R o c h e s te r B ank is also a su b sid iary of T w in G ates by virtue of the fact th at 20 per cen t o f R o ch ester B a n k ’s v o tin g shares are o w n ed d irectly by T w in G a tes, and co n tro l of an additional 13.2 per c en t o f R o ch ester B a n k ’s votin g shares is attributed to T w in G ates becau se of co n tro l o f such shares by a su bsidiary (C ity N atio n al) of T w in G ates. common ownership. On the basis of the facts of record, notably the close working association of the two banks, the common ownership, and the unlikelihood that the banks would become disaf filiated in the reasonably near future, the Board concludes that consummation of the proposal would not have any adverse effects on existing or potential competition. Northern States, having been recently organ ized, has no operating history; its financial condi tion, managerial resources, and prospects depend on those of its proposed subsidiary, City National, at least for the near future. The financial and managerial resources of Twin Gates appear satis factory, and its prospects are considered favorable. The financial condition and managerial resources and prospects of City National and Rochester Bank are regarded as generally satisfactory and consis tent with approval of the applications. The capital position of City National is low for a subsidiary of a bank holding company and should be strengthened. The Board has previously ex pressed the view that a holding company should agree to strengthen the capital position of each of its subsidiaries to a desirable level as a condition to Board approval of the bank holding company formation or expansion. Northern States has com mitted itself to a capital improvement program that will, upon its implementation, increase the capital account of City National by $25 million. As a result of this injection of capital, the financial condition of City National would be strengthened and its prospects enhanced. The improvement ex pected in City National’s capital account as a result of Northern States’ capital improvement program and the greater access that Northern States is likely to have to capital markets than either of the two banks alone lend weight for approval of the ap plications. Inasmuch as the proposed transactions involve essentially a corporate reorganization, there would be no immediate effects on the convenience and needs of the communities involved. However, considerations relating to the convenience and needs of the communities are consistent with ap proval of the applications. It is the Board’s judg ment that consummation of the proposal 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, (b) later than three mon^is after 829 LAW DEPARTMENT the effective date of this Order unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Chicago pursuant to delegated authority. By order of the Board of Governors, effective August 22, 1972. Voting for this action: Governors Mitchell, Brimmer, Shee han, and Bucher. Absent and not voting: Chairman Burns and Governors Robertson and Daane. (Signed) T y n a n S m i t h , Secretary of the Board. [s e a l] UNITED JERSEY BANKS, HACKENSACK, NEW JERSEY O r d e r A p p r o v in g A c q u is it io n o f B a n k United Jersey Banks, Hackensack, New Jersey, 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 (less directors’ qualifying shares) of The Second National Bank of Orange, Orange, New Jersey (“ 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 has twelve subsidiary banks with total deposits of approximately $1.1 billion and ranks as the second largest multi-bank holding company in New Jersey with 6.3 per cent of total deposits in commercial banks in the State.1 (All banking data are as of December 31, 1971 unless otherwise shown.) As a result of consummation of the pro posal herein, Applicant’s rank, in relation to the State’s other bank holding companies, would re main unchanged. Bank ($38 million in deposits), with three of fices in the city of Orange (in Essex County) operates in the Greater Newark banking market. Of the 45 banking organizations operating in that market, Bank ranks nineteenth, based on total market deposits. Two of Applicant’s subsidiary banks, Peoples Trust of New Jersey (“ Peoples” ), Applicant’s lead bank, and Central Home Trust ^ h i s do es not in clu d e T h e D o v er T ru st C o m p a n y , D o v er, N ew Jerse y . B y o rd er o f this d a te , the B o ard has ap p ro v ed A p p lic a n t’s acq u isitio n o f 100 per cen t o f the v o tin g shares of th at ban k . Company of Elizabeth, N.J. (“ Central” ), operate in the market. Together they hold less than 1.3 per cent of total market deposits and Applicant ranks as the fifteenth largest banking organization in the market based on market deposits. After consummation of the proposed acquisition, Appli cant would rank tenth, holding approximately 2.2 per cent of market deposits. Bank derives 2.7 per cent of its loans, 1.3 per cent of its demand deposits, and 0.5 per cent of its time and savings deposits from areas served by Peoples and Central. Conversely, Peoples and Central derive an insig nificant portion of their loan and deposit business from Bank’s service area. Consummation of the proposed transaction would, therefore, eliminate no significant existing competition. Due to Bank’s conservative operation, its limited branching op portunities, and the distances separating its branches from those of Applicant’s subsidiary banks, it is unlikely that consummation of the proposal would foreclose significant potential competition between Bank and any of Applicant’s present subsidiary banks. Taking into account Applicant’s commitment to add $15 million to the equity capital accounts of Peoples discussed in the Board’s Order of this date with respect to The Dover Trust Company, con siderations relationg to the financial and manage rial resources and prospects of Bank and Applicant and its subsidiaries are considered satisfactory and consistent with approval of the application. Al though the proposed new services that Applicant intends to make available through Bank are gener ally available from other banks in the communities to be served, consummation of Applicant’s pro posal would create an alternative source of such services as expanded installment, commercial, and mortgage lending, international banking, data processing, and accounting. The provision of an additional source of these services should better enable Bank to compete in a market in which more than 53 per cent of total deposits are held by the three largest banking organizations. Consid erations bearing on the convenience and needs of the communities to be served are consistent with approval of the application. It is the Board’s judg ment that the proposed transaction is in the public interest and should be approved. On the basis of the record, including the Board’s understanding that Applicant will add $15 million to the equity capital accounts of Peoples, and for the reasons summarized above, the application is approved. The transaction shall not be consum mated (a) before the thirtieth calendar day follow 830 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 ing the effective date of this Order or (b) later than three months after the effective date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of New York pursuant to delegated author ity. By order of the Board of Governors, effective August 22, 1972. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent and not voting: Governor Bucher. [sea l] (Signed) T ynan Smith, Secretary of the Board. Order A pproving A cquisition of B ank United Jersey Banks, Hackensack, New Jersey, 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 Dover Trust Company, Dover, New Jersey (“ 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 have 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 controls 12 banks1 holding deposits of $1.1 billion, representing 6.3 per cent of total deposits in commercial banks in New Jersey.2 Acquisition of Bank would not significantly in crease Applicant’s control of commercial bank deposits in the State. Bank, with deposits of $41.3 million, as of June 30, 1970, controlled approximately 19.4 per cent of deposits in the Dover-Roxbury banking market, held by commercial banks. Based on share of deposits in the market, Bank ranks second among the ten banking organizations in that market, al though Bank ranks seventh among the banking organizations operating in the market, based on total deposits held. Bank also operates a branch office in the Hackettstown banking market. It appears that consummation of the proposed ‘T h is d o es not include the S eco n d N atio n al B ank o f O ra n g e , O ra n g e , N ew Jersey . B y o rd er of this d a te , the B oard has a p p ro v ed A p p lic a n t’s acq u isitio n of 100 per cen t of the voting shares (less d ire c to rs ’ q u a lify in g sh ares) of that bank. 2A11 b an k in g d ata are as o f D ecem b er 3 1 , 1971, unless o th erw ise in d ic a ted , and include fo rm atio n s and acq u isitio n s th ro u g h Ju n e 3 0, 1972. transaction will not adversely affect existing com petition in the Dover-Roxbury market, as Appli cant does not serve that market. Consummation may eliminate some competition in the Hack ettstown market, since Applicant’s lead bank, Peoples Trust of New Jersey (“ Peoples” ), operates branch offices in that market and held 19.5 per cent of total market deposits. The six offices of Peoples in that market are all within fifteen miles of Dover. Bank’s branch in the mar ket is approximately 10.3 miles east of the nearest office of Peoples. As of December 31, 1971, Bank derived 1.1 per cent of its deposits and 1.7 per cent of its loans from the service area of Peoples. Conversely, Peoples derived less than 0.1 per cent of its deposits from Bank’s service area. Con summation of the proposal would eliminate no significant existing competition in the Hack ettstown Market. Consummation of the proposal would have only slightly adverse effects on potential competition in both the Dover-Roxbury and Hackettstown markets. Applicant’s four subsidiary banks located in the First Banking District are permitted to branch into the Dover-Roxbury market. However, nine of the thirteen communities comprising that market are afforded home office or branch office protection and two others lack sufficient population to support additional banking offices. Applicant could enter the Dover-Roxbury market by the establishment of a de novo bank or by acquisition of one of the three smaller independent banks in that market. However, its acquisition of Bank should be a pro-competitive factor in that Bank, which has been rather conservatively managed in the past, should, under Applicant’s guidance, be come a stronger competitive force vis a vis the six larger banks (four of which are subsidiaries of multi-bank holding companies) with which it competes in the Dover-Roxbury market. Bank’s branch in the Hackettstown market controls de posits of less than one million dollars. Due to Bank’s size and conservative management and the presence of five of the State’s multi-bank holding companies in the market it is unlikely that, absent this proposal, Bank would become a significant competitive force in the market. Consummation of the proposal therefore would not eliminate a significant possibility of the development of sub stantial competition between Bank and Applicant. Applicant has indicated its willingness to in crease the equity capital of Bank by $1 million and the equity capital of Peoples by $15 million should the Board deem it necessary. The Board has 831 LAW DEPARTMENT concluded that both Bank and Peoples are in need of such amounts of equity capital. Based on the Board’s understanding that Applicant will make such infusions of equity capital, considerations relating to the financial resources and future pros pects of Applicant, its subsidiaries, and Bank lend weight toward approval. Trust, data processing, and expanded loan services Applicant proposes to provide through Bank are generally available in the communities to be served. However, con summation of the proposed transaction would create another alternative source of such services. Thus, considerations relating to the convenience and needs of those communities are consistent with approval of the application. It is the Board’s judg ment that the proposed transaction is in the public interest and should be approved. On the basis of the record, including the Board’s understanding that Applicant will make infusions of equity capital as referred to above, and for the reasons summarized above, the application is ap proved. 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 New York pursuant to delegated authority. By order of the Board of Governors, effective August 22, 1972. Voting for this action: Chairman Burns and Governors Mitchell, Daane, Brimmer, and Sheehan. Voting against this action: Governor Robertson. Absent and not voting: Governor Bucher. (Signed) T y n a n S m i t h , Secretary of the Board. [s e a l] D is s e n t in g Statem en t of G overnor R obertson Consummation of the acquisition proposed in this case would have adverse effects on potential competition in both the Dover-Roxbury and Hackettstown markets. Under New Jersey law, the four subsidiary banks of Applicant located in New Jersey’s First Banking District are permitted to branch into the Dover-Roxbury market. Applicant could enter the Dover-Roxbury market by estab lishment of a de novo bank. It has the financial and managerial resources to pursue this method of entry and has demonstrated its ability to enter markets de novo by the establishment of a new bank in Cherry Hill Township and its application for permission to establish a new bank in Lake wood. De novo entry through branching or the establishment of a new bank would be less anti competitive than, and therefore preferable to, the instant proposal, as would be acquisition of one of the three smaller independent banks in the Dover-Roxbury market. Consummation of the proposed acquisition will also foreclose the development of competition between Bank and Peoples in the Hackettstown market that could derive from further branching by either within that market. The Hackettstown market is one of the fastest growing areas in the First Banking District and, indeed, in the State. Six municipalities in the market are open to branching. Consummation of the acquisition will therefore adversely affect competition in two mar kets. Major holding companies should be discouraged from seeking to acquire important local competi tors in markets in which they are already repre sented or are likely to enter through less anticom petitive means, as in the case here, especially when, as in this case, there are no derivative public benefits sufficient to outweigh the adverse effects upon potential competition. I therefore would deny the application. ZIONS UTAH BANCORPORATION, SALT LAKE CITY, UTAH O r d e r A p p r o v in g A c q u is it io n o f B a n k Zions Utah Bancorporation, Salt Lake City, Utah, 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 (less director’s qualifying shares) of Zions National Bank of Ogden, Ogden, Utah, a proposed new bank (“ 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, the recommendation of the Comp troller of the Currency that the application should be approved, and all other comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Applicant, the second largest banking organi zation in Utah, controls one bank which has total deposits of approximately $339.2 million,1 repre ^ e p o s i t d ata are as o f D e ce m b e r 31 , 1971 and m a rk e t d ata are as of June 30, 1970, ad ju sted to reflect hold in g c o m pany form atio n s and a cq u isitio n s th ro u g h June 30, 1972. 832 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 senting 16.1 per cent of the total deposits in commercial banks in the State. Since Bank is a proposed new bank, no existing competition would be eliminated nor would concentration be in creased in any relevant area. Applicant’s acquisition of Bank represents its initial commercial banking entry into the Ogden banking market. Applicant’s subsidiary bank, whose nearest office is located 20 miles from Bank, is prohibited by State law from branching into the Ogden banking market. Applicant’s ac quisition of Bank would likely have a procompeti tive effect by introducing a new competitor into the Ogden market, where three of the six banks control over 90 per cent of total market deposits. Applicant’s entry into this market should stimulate competition without having adverse effects on any competing bank. The financial and managerial resources of Applicant and its subsidiaries are regarded as sat isfactory and consistent with approval. Applicant has recently augmented the capital position of its lead bank by contributing a portion of the proceeds from a sale of Applicant’s stock. Applicant has indicated that this contribution is a permanent investment. Since Bank will be able to draw upon Applicant’s financial and managerial resources, its prospects seem favorable and the banking factors are consistent with approval. Applicant proposes to offer extended banking hours and to offer addi tional services, such as guaranteed student loans at Bank. Considerations relating to the conve nience and needs of the communities to be served lend weight toward approval since Bank will be come an additional source of full banking services in a community that has a high ratio of population to banking offices. It is the Board’s judgment that consummation of the proposed acquisition would be in the public interest and that the application should be approved. Applicant is engaged, either directly or through subsidiaries, in several nonbanking businesses. The approval herein neither provides authority to Applicant to continue in the nonbank activities nor to retain nonbank shares nor requires the Applicant to modify or terminate said activities or holdings. However, consummation of the proposal herein is subject to the continuing authority of the Board to require modification or termination of such activities or holdings (within a period no shorter than two years), if the Board determines that the continued combination of banking and nonbanking interests is likely to have an adverse effect on the public interest. The provision of any credit, property or services by the holding company or any affiliate 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 Hold ing Company Amendments of 1970. The non banking activities of Applicant shall not be altered in any significant respect from those engaged in at the time of the filing of the application herein nor shall they be provided at any location other than as described in said application, except upon compliance with the procedures of § 225.4(b)(1) of Regulation Y ; and no merger, or consolidation, or acquisition of assets other than in the regular course of business, to which Applicant or any affiliate thereof is a party shall be consummated without prior Board approval. 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 that date, and (c) Zions National Bank of Ogden, Ogden, Utah, shall be opened for business not later than six months after the effective date of this Order. Each of the periods described in (b) and (c) may be extended for good cause by the Board, or by the Federal Reserve Bank of San Francisco pursuant to delegated authority. By order of the Board of Governors, effective August 29, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Daane, Sheehan, and Bucher. Voting against this action: Governor Brimmer, on the basis of principles previously discussed in his Dissenting Statement in connection with the Board’s Order approving the application of First National City Corporation to acquire the successor by merger to The National Exchange Bank of Castleton-on-Hudson (37 Federal Register 14259). Absent and not voting: Chairman Burns. (Signed) T y n a n S m i t h , Secretary of the Board. [s e a l] FINANCIAL SECURITIES CORPORATION, LAKE CITY, TENNESSEE O r d e r D e n y in g A p p l ic a t io n s t o R e m a in a B a n k H o l d in g C o m p a n y a n d t o R e t a in S hares of B anks Financial Securities Corporation, Lake City, Tennessee, has applied for the Board’s approval under § 3(a)(1) of the Bank Holding Company Act (12 U .S.C. 1842(a)(1)) to remain a bank holding company through the retention of 65.12 per cent of the voting shares of First Farmers Bank, 833 LAW DEPARTMENT Athens, Tennessee, and of 50.56 per cent of the voting shares of First National Bank of Anderson County, Lake City, Tennessee. Financial Securi ties Corporation has also applied for the Board’s approval under § 3(a)(3) of the Act to retain 31.6 per cent (included in the above-mentioned 65.12 per cent) of the voting shares of First Farmers Bank, Athens, Tennessee. Notice of receipt of the applications, affording opportunity for interested persons to submit com ments and views, has been given in accordance with § 3(b) of the Act. The time for filing com ments and views has expired, and the Board has considered the applications and all comments re ceived in light of the factors set forth in § 3(c) of the Act (12 U .S.C . 1842(c)). On the basis of the record, the applications are denied for the reasons set forth in the Board’s Statement of this date. Applicant is directed to take appropriate measures to effect a divestiture of control of First Farmers Bank, Athens, Tennessee, and of First National Bank of Anderson County, Lake City, Tennessee, and is granted until yearend 1972 to effect said divestiture, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Atlanta. No later than two months from the effective date of the Order herein, Applicant is required to report to the Federal Reserve Bank of Atlanta on the progress of said divestiture. A reduction of share holdings to 5 per cent or less of the outstanding voting shares of each of the banks involved would be regarded by the Board as appropriate in con nection with such divestiture. By order of the Board of Governors, effective August 29, 1972. Voting for this action: Chairman Burns and Governors Robertson, Daane, and Sheehan. Absent and not voting: Gov ernors Mitchell, Brimmer, and Bucher. [seal] (Signed) Tynan Smith, Secretary of the Board. S tatement Financial Securities Corporation, Lake City, Tennessee, has applied for the Board’s approval under section 3(a)(1) of the Bank Holding Com pany Act (12 U .S.C . 1842(a)(1)) to remain a bank holding company through the retention of 65.12 per cent of the voting shares of First Farmers Bank, Athens, Tennessee (“ Farmers Bank” ), and 50.56 per cent of the voting shares of First Na tional Bank of Anderson County, Lake City, Ten nessee (“ Anderson Bank” ). Applicant states that it acquired the aforementioned shares in August 1971, from the Athens Financial C o., a partner ship, in the mistaken belief that such a reorgan ization into corporate form did not require Board approval. The partnership, the Athens Financial Co., acquired the aforementioned 50.56 per cent interest in Anderson Bank and a 33.52 per cent interest (included in the aforementioned 65.12 per cent) in Farmers Bank prior to December 31, 1970; such acquisitions did not require Board approval since a partnership did not fall within the definition of “ company” in the Bank Holding Company Act until that date. In a related application, Applicant has applied for the Board’s approval under section 3(a)(3) of the Bank Holding Company Act (12 U.S.C . 1842(a)(3)) to retain 31.6 per cent of the voting shares of Farmers Bank, which Applicant states were acquired by the Athens Financial Co. in January 1971 in the mistaken belief that such action did not require Board approval. No equal offer was made to the minority shareholders of the banks involved. Statutory considerations. Applicant was organ ized in August 1971 for the purpose of acquiring the interests in two banks held by a partnership made up of three individuals who are now the sole stock holders of Applicant. By virtue of its own ership interests in Farmers Bank and Anderson Bank, Applicant controls deposits of $27 million, which represents .3 per cent of the total commer cial bank deposits in the State, and is the smallest of the State’s seven bank holding companies. (All banking data are as of December 31, 1971.) Anderson Bank ($14.8 million of deposits) is the fourth largest of five banks located in Anderson banking market, approximated by all of Anderson County and portions of Knox and Campbell coun ties, and controls approximately 15 per cent of the total deposits therein. Farmers Bank ($12.2 million of deposits) is the third largest of ten banks competing in the Athens banking market, approx imated by all of McMinn County and portions of Meigs, Monroe, and Polk counties, and controls about 13 per cent of the deposits in that banking market. It appears that Anderson Bank and Farm ers Bank do not now compete with each other. Nor does it appear likely that they would compete in the future primarily due to the distances separating their offices (at least 60 miles) and the presence of banks in the intervening areas. Ap proval of Applicant’s proposal would not have an adverse effect on competition in any relevant area. The Board concludes that considerations relating 834 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 to competition are consistent with, but lend no weight toward, approval of the applications. In reviewing the financial resources of Appli cant, as is required by the Bank Holding Company Act, the Board finds that the financial resources of Applicant are not up to Board standards for a bank holding company. Upon acquisition of the shares in the two banks from the partnership in August 1971, Applicant assumed a debt of $1.6 million which had been incurred by the partnership when it made its original stock purchases in the two banks. As of September 1971, Applicant’s balance sheet disclosed shareholders’ equity of only $5,000, compared to liabilities of $1.6 mil lion. On previous occasions, the Board has expressed its concern about the use of debt by a holding company to finance the purchase of bank stock. The presence of significant debt limits a holding company’s ability to assist its subsidiary banks with capital if such a need arises. Furthermore, a heavy debt servicing obligation may result in Applicant being unable to service its debt without unduly straining the bank’s earnings or undertak ing a program of substantial management fees, practices which would impair the capital growth of the banks involved and operate to the detriment of the minority shareholders of the banks. In the present instance, the Board considers that the level of debt in the holding company is so disapportionate to the equity interests of the shareholders that the public interest requires denial of Applicant’s proposal. It appears that the major banking needs of each of the areas served by Applicant’s subsidiaries are being met by existing institutions and no signifi cant public benefits would result from approval of the applications. Rather, the ability of each of Applicant’s subsidiaries to continue to improve or expand the services offered could be hampered because of a need by Applicant to draw on the financial resources of its subsidiaries in order to retire Applicant’s debt. Considerations relating to convenience and needs of the communities to be served lend no weight toward approval of the applications. On the basis of facts of record, the Board concludes that the high level of debt carried and the state of the financial recources of Applicant are adverse factors bearing on the financial condi tion and prospects of Applicant and the banks involved. These adverse findings are not out weighed by any procompetitive factors nor by considerations relating to the convenience and needs of the communities to be served. Accord ingly, approval of the applications is not in the public interest and the applications should be de nied. COMMUNITY BANKS OF FLORIDA, INC., SEMINOLE, FLORIDA Order A pproving Formation of B ank Hold ing Company Community Banks of Florida, Inc., Seminole, Florida, has applied for the Board’s approval under § 3(a)(1) of the Bank Holding Company Act (12 U.S.C . 1842(a)(1)) of formation of a bank holding company through acquisition of 80 per cent or more of the voting shares of Bank of Seminole, Seminole (P. O. Largo) ( “ Seminole Bank” ); First Commercial Bank, St. Petersburg (“ Commercial Bank” ); First Community Bank, Largo (“ Largo Bank” ); First Bank of West Pasco, Pasco County (“ Pasco Bank” ), and Northside Community Bank, St. Petersburg (“ Northside Bank” ), all located in Florida. 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 was formed for the purpose of ac quiring the five proposed subsidiary banks, all of which were organized by the same individuals and have functioned as a group since their establish ment. Upon the acquisition of Seminole Bank (deposits of $42.6 million); Commercial Bank (deposits of $11.7 million); Largo Bank (deposits of $5.9 million); and the Pasco and Northside Banks which were recently opened, Applicant would control aggregate deposits of $60.2 million among commercial banks in Florida and would rank as the State’s twenty-sixth largest banking organization, with .37 per cent of total State de posits. The proposal would represent no significant increase in the concentration of banking resources in the local markets or on a Statewide basis. Seminole, Commercial, Largo, and Northside Banks are located in Pinellas County in the South Pinellas Banking Market where the four banks control 6.14 per cent of total deposits as the sixth largest of the 15 banking organizations represented in the market. Six multi-bank holding companies hold 49.62 per cent of deposits in this market. LAW DEPARTMENT The fifth proposed acquisition, Pasco Bank, is located in Pasco County, some 20 miles to the north. It was opened for business in late January of this year and ranks as the smallest bank in the county. It appears that the change in corporate structure for the group represented by this ap plication would have no adverse effects on any of the competing banks in the relevant market areas. The Seminole and Largo Banks are located approximately three miles apart, but their service areas do not overlap, and there is no significant present competition between them. The remaining three banks are located from 6 to 26 miles apart. There is no meaningful intergroup competition that would be eliminated between any of the subject banks by the proposed formation. All five banks have been closely affiliated since their inception. Senior management of each bank is vested in the same individuals and banking services are inter changed. It appears that this dependence within the group is permanently established, and there exists little likelihood for disaffiliation. Competi tive considerations are consistent with approval of the application. Although Applicant was recently organized and has no operating history, its financial structure and proposed management are deemed to be generally satisfactory. The subject banks have capable man agements and their financial conditions are deemed satisfactory except for needed improvement in the capital account of Seminole Bank which Applicant has agreed to provide. Banking factors are consis tent with approval of the application, and prospects for Applicant and the group of banks appear fa vorable. The primary banking needs of both mar ket areas are served by existing financial institu tions; however, it appears that efficiencies of operation would result from the corporate struc ture, and the public would derive benefits from trust services proposed to be offered at each bank. Considerations relating to the convenience and needs of the communities to be served are consis tent with and lend some support toward approval of the application. It is the Board’s judgment that the proposed transaction would be in the public interest and that the application would be ap proved. 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 835 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 August 29, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Ab sent and not voting: Chairman Burns. [seal] (Signed) T ynan Smith, Secretary of the Board. BEZANSON INVESTMENTS, INC., MORAMERICA FINANCIAL CORPORATION CEDAR RAPIDS, IOWA Order D enying A cquisition of B ank Bezanson Investments, Inc., Cedar Rapids, Iowa, and its subsidiary, MorAmerica Financial Corporation, Cedar Rapids, Iowa, each of which is a registered bank holding company, have ap plied for the Board’s approval under § 3(a)(3) of the Bank Holding Company Act (12 U .S.C. 1842(a)(3)), to acquire 76 per cent or more of the voting shares of First Trust and Savings Bank, Wheatland, Iowa. Notice of receipt of the applications, affording opportunity for interested persons to submit com ments and views, has been given in accordance with § 3(b) of the Act. The time for filing com ments and views has expired, and all those re ceived have been considered. The Board has con sidered the applications in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). On the basis of the record, each of the applica tions is denied for the reasons set forth in the Board’s Statement of this date. By order of the Board of Governors, effective August 29, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governor Daane. [seal] (Signed) Tynan Smith, Secretary of the Board. S tatement Nature of transaction. Bezanson Investments, Inc., Cedar Rapids, Iowa, (“ Bezanson” ) and its subsidiary, Mor America Financial Corporation, Cedar Rapids, Iowa (“ MorAmerica” ), both of which are registered bank holding companies, have applied for the Board’s approval, under § 3(a)(3) of the Bank Holding Company Act (12 U .S.C. § 1842(a)(3)), of the acquisition of 76 per cent or more of the voting shares of First Trust 836 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 and Savings Bank, Wheatland, Iowa (“ Bank” ). The shares of Bank are proposed to be acquired directly by MorAmerica, and Bezanson thus would indirectly acquire such shares. Statutory considerations. Applicants presently control Jackson State Bank and Trust Company, Maquoketa, Iowa, (“ Jackson Bank” ) with depos its of $27.8 million, which accounts for 0.4 per cent of total commercial bank deposits in Iowa. Bank (with deposits of $8.6 million) is the second largest of seven banks in the Wheatland banking market, which is approximated by south western Clinton County and northeastern Cedar County. Bank has an office in the Maquoketa banking market (approximated by southwestern Jackson County and northwestern Clinton County) and is the third largest of five banks competing there. Jackson Bank is the dominant bank in the Maquoketa market, controlling 53.2 per cent of commercial bank deposits in that area. Con summation of the proposed transaction would in crease Applicants’ share of the Maquoketa market to 56.1 per cent. (Banking data are as of December 31, 1971, except that market shares were com puted as of June 30, 1970.) Although some exist ing competition between Bank and Applicants’ subsidiary bank may have been eliminated in early 1971 by the acquisition of Bank by Mr. Peter F. Bezanson, president and principal shareholder of Applicants, consummation of the proposal would formalize existing arrangements and make it less likely that competition between Bank and Jackson Bank would be resumed. Accordingly, it appears that consummation of the proposal would have an adverse effect on competition in the Maquoketa banking market. Considerations related to the convenience and needs of the communities to be served are consis tent with, but do not provide significant support for, approval of the application. Although com petitive considerations and convenience and needs considerations are not such as to bar approval, the Board’s inquiry does not end here. As the Board has stated before, “ [t]he Board believes that a holding company should be a source of financial and managerial strength for the banks in its sys tem, rather than vice versa, and that every proposed acquisition should be closely examined . . . ” in this regard. (Application of First South west Bancorporation, Inc., Waco, Texas, 1972 Federal Reserve B u l l e t i n 302.) The record shows that Bezanson operates a general insurance agency; and MorAmerica has substantial interests in ownership and operation of nursing and convalescent care centers, a new and used car dealership, real estate development, and various servicing companies, among other activi ties. As of September 30, 1971, MorAmerica had a consolidated debt to equity ratio of 376.8 per cent. By March 31, 1972, MorAmerica’s consoli dated debt to equity ratio had increased to 388.9 per cent. Data with respect to MorAmerica’s consolidated net income for the past 5 years indicates that earnings do not average amounts sufficient to am ortize its consolidated debt in a reasonable period of time. Consolidated statements of changes in financial position of MorAmerica for 1970 and 1971 show that MorAmerica has been retiring its debt securities as they become due from the pro ceeds of new debt issues, and debt repayment schedules suggest that MorAmerica will likely refinance a significant portion of its debt in the future. Apparently, MorAmerica has no immediate plans to sell additional capital stock to strengthen its equity position, nor does it plan to reduce debt significantly from earnings or cash reserves. On the facts presented, the Board is unable to conclude that MorAmerica would be a source of strength for banks within its system. The policies of Applicants’ management are regarded by the Board as incompatible with sound banking princi ples and with an expansion of banking activities. Bank’s capital seems adequate, and its prospects appear favorable. However, considerations related to the financial and managerial resources and fu ture prospects of Applicants are not consistent with approval. Conclusion. On the basis of the record and particularly in the light of the considerations dis cussed above, it is the Board’s judgment that the proposed transactions would not be in the public interest and should not be approved. BARNETT BANKS OF FLORIDA, INC., JACKSONVILLE, FLORIDA O r d e r A p p r o v in g A c q u is it io n of B anks Barnett Banks of Florida, Inc., Jacksonville, Florida, a bank holding company within the meaning of the Bank Holding Company Act, has filed separate applications 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 Westchester National Bank of Dade County, Miami, Florida (“ Westchester Bank” ), and Mid 837 LAW DEPARTMENT way National Bank, Miami, Florida (“ Midway Bank” ). Notice of the applications, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the applications and all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Applicant is Florida’s third largest banking or ganization and controls 34 banks with total depos its of $1.0 billion, representing 6.4 per cent of total deposits in commercial banks in the State. (All banking data are as of December 31, 1971, adjusted to reflect holding company formations and acquisitions approved by the Board through July 31, 1972.) The acquisition of Westchester Bank ($17.3 million deposits) and Midway Bank ($2.7 million deposits) would increase Applicant’s share of State deposits by 0.1 percentage points, and Applicant’s rank among banking organizations in Florida would not change. Westchester and Midway Banks are located in Dade County where they control .48 and .07 per cent, respectively, of deposits in this banking market. Although subject banks are located only three miles apart, they do not actively compete with each other. Midway Bank was established in April 1971 by directors of Westchester Bank and is the only bank in its primary service area. Westchester Bank ranks as the smallest bank in its immediate service area. Both banks are under common ownership, control, and management. It appears that no significant present or potential competition would be eliminated by consumma tion of this proposal. Applicant presently controls 2.8 per cent of the Dade County banking market deposits through three subsidiary banks (representing aggregate market deposits for each of $63.6, $26, and $9.7 million, respectively) and ranks as the market’s ninth largest banking organization. Consummation of this proposal would represent an increase in Applicant’s control of market deposits by only .5 percentage points. Applicant’s present subsidiaries in Dade County are located 23, 16, and 10 miles, respectively, from the Westchester and Midway Banks’ offices. There is no significant present competition between any of Applicant’s subsid iaries and subject banks. Due to Florida’s re strictive branching laws and the highly banked areas which intervene, it appears that no substan tial amount of future competition would be elimi nated by consummation of this proposal. There fore, competitive considerations are consistent with approval of the applications. The financial condition of Applicant and its subsidiaries are considered to be generally satis factory in view of Applicant’s plans to improve the capital positions of its subsidiaries where a need exists; management for the system is also considered to be generally satisfactory, and pros pects for the group appear favorable. The financial condition and management of Westchester and Midway Banks are deemed satisfactory, and pros pects for each appear favorable. Banking factors are, therefore, consistent with approval of the applications. Although the proposed affiliation with Applicant would not introduce new services to the market, it would better enable each bank to respond to the increasing financial needs in the expanding western section of the county which they serve. Specialized banking services of Appli cant would be made available to both Westchester and Midway Banks, and the quality and quantity of the banking services offered by each would be improved. Accordingly, considerations relating to the convenience and needs of the communities to be served are consistent with and lend some sup port toward approval of the applications. It is the Board’s judgment that the proposed transactions would be in the public interest and that the ap plications 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 Atlanta pursuant to delegated authority. By order of the Board of Governors, effective August 31, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governors Daane and Mitchell. [seal] (Signed) Tynan Sm ith, Secretary of the Board. WYOMING BANCORPORATION, CHEYENNE, WYOMING O rder A pproving A cquisition of B ank Wyoming Bancorporation, Cheyenne, Wyom ing, a bank holding company within the meaning of the Bank Holding Company Act, has applied 838 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 for the Board’s approval under § 3(a)(3) of the Act (12 U .S.C. 1842(a)(3)) to acquire 100 per cent of the voting shares (less directors’ qualifying shares) of The Stockgrowers Bank of Evanston, Evanston, Wyoming (“ Bank” ). Notice of receipt of the application has been given in accordance with § 3(b) of the Act, and the time for filing comments and views has ex pired. The Board has considered the application and all comments received in the light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Applicant, the second largest banking organi zation in the State, controls nine banks with total deposits of $103.2 million, representing 11.1 per cent of the total commercial bank deposits in Wyoming. (All banking data are as of December 31, 1971, adjusted to reflect holding company acquisitions approved by the Board through July 31, 1972.) Consummation of the proposal would not significantly increase Applicant’s share of total deposits in the State. Bank, located in the southwestern corner of Wyoming about 75 miles northeast of Salt Lake City, Utah, is the smaller of two banks located in Evanston and holds total deposits of $8.6 mil lion. Applicant’s subsidiary located closest to Bank is about 175 miles to the north and neither it nor any of Applicant’s other subsidiaries com pete with Bank to any significant extent. More over, the development of competition between Bank and any of Applicant’s subsidiaries is con sidered unlikely in view of the intervening dis tances between the banks, Wyoming’s restrictive branching laws, and the unlikelihood that Appli cant would enter the Evanston’s area de novo. It appears, therefore, that consummation of the pro posal would not eliminate any existing competition nor foreclose the development of any potential competition. The financial and managerial resources and fu ture prospects of Applicant and its subsidiary banks are regarded as generally satisfactory and consistent with approval of the application. While Applicant will incur acquisition debt as a result of consummation of the proposal, Applicant proposes to retire the entire debt at an early date from the proceeds of a stock offering. In addition, Applicant states that a portion of the proceeds from the stock offering will be used to augment the capital at its lead bank and at Bank, thus strength ening the financial condition of each. Affiliation with Applicant would provide Bank with a source of experienced banking personnel. Thus, consid erations relating to the banking factors lend weight toward approval of the application. Applicant proposes to assist Bank in improving its services by establishing trust services and increasing Bank’s lending capabilities. These considerations relating to the convenience and needs lend some weight toward approval. 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 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 Kansas City pursuant to delegated authority. By order of the Board of Governors, effective August 31, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Ab sent and not voting: Chairman Bums. [seal] (Signed) Tynan Sm ith, Secretary of the Board. TEXAS COMMERCE BANCSHARES, INC., HOUSTON, TEXAS Order A pproving A cquisition of B anks Texas Commerce Bancshares, Inc., Houston, Texas, a bank holding company within the mean ing of the Bank Holding Company Act, has ap plied for the Board’s approval, under § 3(a)(3) of the Bank Holding Company Act (12 U.S.C. 1842(a)(3)), to acquire 100 per cent of the voting shares (less directors’ qualifying shares) of the successor by merger to American National Bank of Beaumont, Beaumont, Texas. As an incident to acquisition of said bank, Applicant necessarily would acquire, and seeks approval for, acquisition of, 37 per cent of the voting shares of Beaumont State Bank, Beaumont, Texas, shares of which are indirectly controlled by American National Bank under a trust relationship. Notice of receipt of the application has been given in accordance with § 3(b) of the Act, and the time for filing comments and views has ex pired. 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)). On the basis of the record, and for the reasons summarized in the Board’s Statement of this date, LAW DEPARTMENT 839 the application is approved on condition that Applicant divest itself of its interest in Beaumont State Bank at the earliest practicable time and, in any event, within two years from the effective date of consummation of the acquisition of shares of American National Bank, unless such period is extended for good cause by the Board. The ap plication to acquire shares of Beaumont State Bank is approved only to the extent necessary, and for the period granted to Applicant, to effect the required divestiture of its interest in Beaumont State Bank. The acquisition of American National Bank of Beaumont 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 Dallas pursuant to delegated authority. By order of the Board of Governors, effective August 31, 1972. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Daane. (Signed) T y n a n S m i t h , Secretary of the Board. [s e a l] Statem ent Nature of transaction. Texas Commerce Banc shares, Inc., Houston, Texas, a registered bank holding company, has applied to the Board of Governors, pursuant to § 3(a)(3) of the Bank Holding Company Act (12 U .S.C. 1842(a)(3)), for prior approval of the acquisition of 100 per cent of the voting shares (less directors’ qualifying shares) of the successor by merger to American National Bank of Beaumont, Beaumont, Texas (“ American Bank” ). The bank into which Amer ican Bank is to be merged has no significance except as a means to facilitate the acquisition of the voting shares of American Bank. Accordingly, the proposed acquisition of the shares of the suc cessor organization is treated herein as the proposed acquisition of the shares of American Bank. Applicant has applied also for approval to acquire 37 per cent of the voting shares of Beau mont State Bank, Beaumont, Texas (“ Beaumont Bank” ) .1 A trusteed affiliate of American Bank *At the tim e this ap p lic atio n w as filed, A m erican G en eral In su ran ce C o m p a n y , H o u sto n , T e x a s, o w n ed m o re than 32 per cen t o f th e votin g sh ares o f T ex as C o m m erce B an csh ares so that an acq u isitio n o f sh ares by T ex as C o m m erce w ould c o nstitute in d irect acq u isitio n by A m erican G en eral. T h e re fo re, separate ap p licatio n s w ith re sp ec t to the acq u isitio n o f the through its trustees, holds 37 per cent of the outstanding voting shares of Beaumont Bank for the benefit of shareholders of American Bank. Therefore, acquisition of American Bank would result in Applicant acquiring 37 per cent of the voting shares of Beaumont Bank. In its Order and Statement dated April 11, 1972, the Board denied Applicant’s application to ac quire American Bank. At the same time, by sepa rate Order, the Board approved Applicant’s ap plication to acquire shares of Beaumont Bank. Subsequently, Applicant filed a Request for Re consideration of its application to acquire Ameri can Bank stating in part, that the proposed ac quisition of shares of Beaumont Bank was incident to, and sought only in connection with, an ac quisition of American Bank; that Applicant did not seek to acquire shares of Beaumont Bank independently of an acquisition of American Bank and could not acquire the shares of Beaumont Bank apart from an acquisition of American Bank. In addition, Applicant supplemented its original application with respect to American Bank with additional information concerning the present condition of that bank and the emerging structure of the Beaumont banking market. In an Order dated June 13, 1972, the Board granted Appli cant’s Request for Reconsideration of the Board’s Order of April 11, 1972; and vacated its Order of April 11, 1972, which had granted approval to Applicant to acquire shares of Beaumont Bank. Notice of the Board’s Order granting Appli cant’s Request for Reconsideration of its ap plication to acquire American Bank has been given and the time for filing comments and views has expired. The Board has reconsidered this applica tion and all comments received in the light of the factors set forth in § 3(c) of the Act and the original and supplemental material received in connection with these applications. Statutory considerations. Applicant controls two banks located in the Houston area with aggre gate deposits of $1.2 billion, representing 3.9 per cent of total commercial bank deposits in the State. Applicant, the fourth largest banking organization in Texas and the second largest in the Houston banking market, controls approximately 16 per shares o f B eau m o n t State and A m e ric a n B ank w ere filed by A m erican G e n eral. H o w ev e r, d u rin g the p e rio d of the B o a rd ’s co n sid eratio n of these ap p lic atio n s, A m erican G en eral effected a div estitu re of its ow n ersh ip and c o ntrol of the v o ting shares of T ex as C o m m erce and has c eased to be a bank hold in g c o m pany un d er the B ank H o lding C o m p a n y A ct. A c co rd in g ly , A m erican G e n e ra l’s a p plications ind irectly to acquire shares of each of said banks have been dism isse d as m o o t by O rd er of the B oard (1972 Federal R eserve B u l l e t i n 7650). 840 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 cent of total commercial deposits in the Houston area. In addition, Applicant controls between 20 and 24.9 per cent of the voting shares of each of five other banks located in the Houston market and holding aggregate deposits of $168.7 million, representing approximately 2.8 per cent of com mercial bank deposits in the Houston area.1 Upon acquisition of both American Bank and Beaumont Bank (respectively $112.5 million and $25.2 mil lion of deposits), Applicant’s position in relation to other Texas banking organizations and holding companies would remain unchanged and Appli cant’s share of deposits in the State would increase by approximately .5 percentage points. (All bank ing data are as of December 31, 1971, and reflect holding company formations and acquisitions ap proved through June 30, 1972.) American Bank (located in downtown Beau mont) and Beaumont Bank (located 2 miles west of downtown Beaumont) both operate in the Beaumont banking market and are, respectively, the second and seventh largest of 18 banking organizations in that market; and they control respectively 17.7 and 4.0 per cent of commercial bank deposits in that market. American Bank, however, has a relatively large share of deposits of other banks and large certificates of deposit. Its market share of total IPC deposits in accounts under $100,000 is only 13.7 per cent; and the share of these smaller accounts is a better measure of the competitive situation in a local market. Upon consummation of the proposals herein, Applicant would control deposits of $137.6 mil lion, representing 21.7 per cent of total commer cial bank deposits in the Beaumont market, and would control 18.8 per cent of total IPC deposits in accounts under $100,000.2 The banking office of Applicant closest to either proposed subsidiary is located approximately 90 miles west of Beaumont in Houston, Texas, and operates in a separate but adjacent banking market. It appears that no meaningful competition exists between any of Applicant’s present subsidiary banks and American or Beaumont Bank; and, on the facts of record, in particular, the Texas law A p p lic a n t has filed ap p licatio n s w ith the B oard to acquire all of the rem ain in g votin g sh ares o f each of tw o of these ban k s. 2B eau m o n t B ank w as o rg a n iz e d in 1955 and has been affiliated w ith A m erican B ank sin ce 1959 as the result of the p u rch ase o f 37 p er cen t of B eau m o n t B a n k ’s o u tstan d in g voting shares by a c o rp o ra tio n , all o f the shares o f w h ich are held in tru st for the benefit o f the sh areh o ld ers o f A m erican B ank. In ad d itio n , it ap p ears th at in d iv id u als o w n in g 18 per cent o f the o u tstan d in g v o tin g sh ares o f A m erican B ank d irectly co n tro l an a d d itio n al 39 p er cen t of the o u tstan d in g voting shares of B eau m o n t B ank. prohibiting branch banking and the distances be tween the banks involved, consummation of the applications is unlikely to foreclose significant potential competition between either of the proposed subsidiaries and any of Applicant’s subsidiary or satellite banks. In its Order of April 11, 1972, denying acquisi tion of American Bank, the Board found that the facts of record indicated that acquisition by Appli cant of control of both American Bank and Beau mont Bank or of American Bank alone, would have serious adverse effects on potential competi tion in the Beaumont banking market. The Board found the market attractive for de novo entry and Applicant a likely entrant into the Beaumont banking market. Acquisition of Beaumont Bank alone, and the resulting disaffiliation of that bank from American Bank was seen as reducing con centration in the Beaumont banking market by the introduction of an additional organization to com pete with the larger banking organizations in that market. American Bank was regarded as strong enough to compete as a viable independent bank and capable of becoming a lead bank or substantial participant in a new or smaller bank holding com pany system. In connection with its Request for Recon sideration, Applicant provided information not previously available to the Board at the time of its earlier consideration of the subject proposals. This information indicates the following: 1. Applicant’s original applications failed to inform the Board that the proposed acquisition of shares of Beaumont Bank was sought only in connection with and as an incident to its acquisition of American Bank. Applicant has been advised by directors of both Beaumont and American banks and by trustees holding shares of Beaumont Bank that they will neither con sider nor cooperate with any efforts of Applicant to acquire Beaumont Bank separate from ac quisition of American Bank. 2. American Bank does not provide signifi cant competition to the largest banking organi zation in the Beaumont market and does not have the management or financial resources to become a substantial member of a small bank holding company system. 3. Subsequent to the Board’s denial of Applicant’s proposal to acquire American Bank, three bank holding company organizations have either reached agreement or have applied to the Board to acquire the third, fourth, and fifth largest banks in the Beaumont market. LAW DEPARTMENT 4. Applicant has committed itself to divest its interest in Beaumont Bank (acquired as a consequence of an acquisition of American Bank), should the Board disapprove of Appli cant’s having control of both banks. The Board has reviewed the information sub mitted by Applicant in connection with its Request for Reconsideration, together with a review of the entire record in this matter; and finds that signifi cant changes have occurred in the Beaumont banking market and with respect to American Bank and that such changes lend weight toward approval of Applicant’s acquisition of American Bank provided Applicant is required to divest the interest in Beaumont Bank that will be acquired as an incident to acquisition of American Bank. Applicant’s inability to acquire shares of Beau mont Bank (independently from an acquisition of American Bank) eliminates the prospect of Beau mont Bank, through affiliation with Applicant, becoming an additional competitor to the larger banking organizations in the Beaumont market. At the time of the Board’s prior consideration of this proposal, the management of American Bank was considered generally satisfactory despite some in dications of a lack of managerial resources; and the prospects for American Bank for operation independently were viewed as favorable. How ever, the most recent examination of American Bank (the results of which were not available to the Board at its earlier consideration of that bank’s condition) indicates considerable executive turn over and a further weakening of management depth. Furthermore, additional analysis of Ameri can Bank’s earnings and growth relative to other banks in its market indicates that American Bank is presently not in a position to provide vigorous competition in that market; and that it is unlikely that the bank could serve as a lead bank or signifi cant participant in a new or smaller bank holding company system. Events occurring subsequent to the Board’s de nial of the proposed acquisition of American Bank by Applicant have changed dramatically the out look with respect to present and potential banking competition in the Beaumont market. Three addi tional banking organizations (two of which are the third and fifth largest banking organizations in the State) seek acquisition of the third, fourth and fifth largest banks in the market and to compete with the dominant banking organization in that market. We express no opinion on those pending applica tions but view as likely the prospect that some of the State’s largest banking organizations will 841 enter the Beaumont market. The competitive posi tion of American Bank would be further weakened by the introduction of additional bank holding company organizations through affiliation with the significant banks in the market. The Board continues to view the acquisition by Applicant of both American and Beaumont banks as having serious adverse effects on potential competition in the Beaumont market. Accord ingly, acquisition by Applicant of American Bank is subject to the condition that Applicant divest its interest in Beaumont Bank (acquired inciden tally to acquisition of American Bank) at the earliest practicable time and, in any event, within two years from its acquisition of 100 per cent of the voting shares (less directors’ qualifying shares) of the successor by merger to American Bank. On the basis of the record before it, the Board concludes that consummation of Applicant’s pro posal, as herein conditioned, would not result in a monopoloy or be in furtherance of any combina tion, conspiracy, or attempt to monopolize the business of banking in any area. Moreover, the competitive effects of the proposal are consistent with approval of the application and to the extent competition among Beaumont banking organi zations is likely to become more aggressive, lend some weight toward approval. The financial and managerial resources and fu ture prospects of Applicant and its subsidiaries appear satisfactory and prospects of all are favor able. Although the financial condition of American Bank is generally satisfactory, the bank has not operated as successfully as competing banks in the market due, in part, to its lack of managerial strength. Affiliation with Applicant will enable American Bank to draw upon Applicant’s finan cial, managerial, and technical resource strength and should result in that bank becoming a vigorous competitor in the Beaumont area. In addition, Applicant proposes to introduce through American Bank specialized banking services such as in ternational petroleum and chemical banking operations to accommodate the large corporations engaged in various aspects of oil and gas opera tions in the Beaumont area. Considerations relating to the convenience and needs of the relevant area are consistent with and lend weight to approval of the applications. It is the Board’s judgment that consummation of the proposed acquisition of American Bank, upon the condition that Applicant divest shares acquired in Beaumont Bank, is in the public interest and that the applications should be approved. 842 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 ORDERS UNDER SECTIONS 3 & 4 OF BANK HOLDING COMPANY ACT CAPITAL MANAGEMENT, INC., AURORA, NEBRASKA Order A pproving Formation of B ank Hold ing C ompany and Retention of B rady Insur ance A gency Capital Management, Inc,. Aurora, Nebraska, has submitted an application for the Board’s ap proval under § 3(a)(1) of the Bank Holding Com pany Act (12 U.S.C . 1842(a)(1)) to become a bank holding company through the acquisition of 80 per cent of the voting shares of Bank of Brady, Brady, Nebraska (“ Bank” ). At the same time, Applicant has submitted its application for the Board’s approval under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regulation Y to engage in certain permissible insurance agency activities through the retention of assets of Brady Insurance Agency, Brady, Ne braska (“ Agency” ). Notice of receipt of these 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 ap plications and all comments received in light of the factors set forth in § 3(c) of the Act, and the considerations specified in § 4(c)(8) of the Act. Applicant’s sole business activity is operating Agency. Bank (deposits of $2.1 million) is the only bank in a community of approximately 300 people. Bank is the smallest of seven banks in the towns of North Platte, Gothenburg, Arnold, and Brady, which approximates Bank’s service area. (All banking data are as of June 30, 1971.) Since the transaction involves only a change from individual to corporate ownership, consummation of the proposal will have no adverse effects on existing or potential competition. The Board notes that Applicant’s president ac quired 34 shares of Bank for a lower sum than that paid for his majority shares. The Board has previously expressed the view that failure to make an equivalent offer to minority shareholders is considered as an adverse circumstance (57 F.R. B ulletin 415, 688). However, Applicant has agreed to compensate the former owners of these minority shares so that they will receive a sum equal to that paid the majority shareholders. Applicant further agreed to make an equal offer to all remaining minority shareholders. The Board’s approval of these applications is subject to the condition that Applicant fulfill such agree ments prior to consummation of the proposed transaction. The financial and managerial resources and fu ture prospects of Applicant, Bank and Agency are consistent with approval. Although Applicant will incur considerable debt in acquiring Bank, its income from Bank and Agency will provide suffi cient revenue to adequately service the debt. (Applicant’s projections concerning the earnings of both Bank and Agency are reasonable and possibly conservative.) In addition, Applicant’s acquisition of Bank will assure continued opera tion of the only bank in Brady. Accordingly, considerations relating to the convenience and needs of the community to be served, with respect to the acquisition of Bank, lend weight toward approval. It is the Board’s judgment that con summation of the transaction would be in the public interest and that the application to acquire Bank should be approved. Agency is the only general insurance agency in Brady, a town of approximately 300, and is lo cated on the premises of Bank. The operation by a bank holding company of a general insurance agency in a community with a population of less than 5,000 is an activity that the Board has pre viously determined to be closely related to banking (12 CFR 225.4(a)(9)(iii)). There is no evidence in the record indicating consummation of the proposal would result in any undue concentration of resources, unfair competi tion, conflicts of interest, unsound banking prac tices or other adverse effects on the public interest. The acquisition would assure continuation of the only source of general insurance in the town of Brady. On the basis of the foregoing and other facts reflected in the record, the Board has deter mined that the considerations affecting the com petitive factors under section 3(c) of the Act and the balance of the public interest factors the Board must consider under section 4(c)(8) in permitting a holding company to engage in an activity on the basis that it is closely related to banking both favor approval of the Applicant’s proposal. 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, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Kansas City pursuant to delegated authority. The determination as to 843 LAW DEPARTMENT Agency’s activities is subject to the Board’s au thority to require reports by, and make examina tions of, holding companies and their subsidiaries and to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the Act and the Board’s regulations and orders issued thereunder, or to prevent evasion thereof. By order of the Board of Governors, effective August 4, 1972. Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, and Sheehan. Absent and not voting: Governors Daane and Bucher. [seal] (Signed) T ynan Smith, Secretary of the Board. CITIZENS INVESTMENT COMPANY, THORNTON, COLORADO Order A pproving Formation of B ank Hold Company and Performance of Insurance A gency A ctivities ing Citizens Investment Company, Thornton, Colo rado, 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 49 per cent or more of the voting shares of North Valley State Bank, Thornton, Colorado (“ Bank” ). At the same time Applicant has applied for the Board’s approval under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regulation Y to conduct the insurance agency business presently conducted by the North Investment Company, Thornton, Colorado (“ Agency” ). 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 ap plications 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 section 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)) and finds that: Applicant is a non-operating corporation formed for the purpose of acquiring Bank ($8.8 million deposits) and Agency. Applicant’s acquisition of Bank arises, in substantial measure, from the ex ercise of buy-sell agreements by major share holders of Bank and would not have any adverse effects on eighter existing or potential competition. The financial and managerial resources and fu ture prospects of Applicant, Bank, and the proposed insurance agency subsidiary are consis tent with approval, as are considerations relating to the convenience and needs of the communities to be served. The business of Agency is currently being con ducted on Bank’s premises by the North Invest ment Company. Applicant proposes to succeed to the business of selling credit life, health and acci dent insurance to Bank’s customers. Selling credit life, health and accident insurance in connection with extensions of credit by a bank or a bankrelated firm is an activity that the Board has previously determined to be closely related to banking (12 CFR 225.4(a)(9)). On the basis of the record, the applications to acquire Bank and Agency are approved. The ac quisition 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, 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 August 18, 1972. Voting for this action: Chairman Burns and Governors Brimmer, Sheehan, and Bucher. Voting against this action: Governor Robertson. Absent and not voting: Governors Mitchell and Daane. [seal] (Signed) Tynan Smith, Secretary of the Board. WESTERN BANCSHARES, INC., STOCKTON, KANSAS Order D enying R etention of B ank and Con tinuation of the A ctivities of a G eneral Insurance A gency Western Bancshares, Inc., Stockton, Kansas, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under § 3(a)(1) of the Act (12 U.S.C. 1842(a)(1)) to retain 89.5 per cent of the voting shares of Rooks County State Bank, Woodston, Kansas (“ 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 continue to engage in certain permissible insurance agency activities through the retention of Woodston Agency, Woodston, Kansas ( “ Agency” ). Notice of receipt of these applications was pub 844 FEDERAL RESERVE BULLETIN. □ SEPTEMBER 1972 lished in the Federal Register on February 16, 1972 (37 Federal Register 3474), 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 set forth in § 3(c) of the Act, and the considerations specified in § 4(c)(8) of the Act. Bank ($1.2 million in deposits, as of December 31, 1971) is the only bank in Woodston, a com munity of 332 persons in central Kansas. Agency conducts a general insurance business from the premises of Bank. Approval of the proposal would have no effect upon either existing or potential competition. On January 8, 1971, Applicant acquired Agency and a majority of the shares of Bank without the prior approval of the Board. On June 22, 1971, the Board, in order to avoid the imposition of unnecessary hardships, issued an Order which provided that any company which acquired a bank between December 31, 1970, and that date, with out securing prior Board approval because the company lacked knowledge of the Bank Holding Company Act Amendments of 1970, might file an application to retain the Bank and, thus, cure its violation of the Act. In this connection, how ever, the Board provided that the standards which were to be applied to such applications to retain would be the same as those normally applied to applications for prior approval. Applicant ap parently acted without knowledge of the Act and the application has been considered on that basis. A principal of Applicant purchased certain of Bank’s shares in late December 1970 and trans ferred them to Applicant on January 8, 1971. Between then and early March 1971, Applicant purchased the remainder of its present interest in Bank. A majority interst in Bank was purchased for about $522 a share, shares of certain employees of the Bank were purchased for $400 a share, and the shares of unrelated minority shareholders were purchased for $160 a share. Applicant has stated that the premium paid to the principal shareholder reflects a payment for the related insurance agency. Such a premium would represent a payment for Agency of over 37 times the net income of Agency for 1971 and the Board concludes that Applicant has not justified the sub stantial disparity in prices paid for the shares. In its consideration of the public interest aspects of this application the Board finds, as it previously has in similar cases, that the failure to make an equivalent offer to all shareholders of Bank is an adverse circumstance weighing against approval of the application. (E.g. 1971 Federal Reserve B ulletin 415 and 688) An examination of considerations relating to the financial and managerial resources and future prospects of Bank and the convenience and needs of the communities to be served indicates that these considerations do not provide sufficient weight toward approval to outweigh the adverse circumstance of the disparate offers to share holders. The Board is aware that since the shares have already been purchased, denial of the application will not necessarily remedy the treatment of the minority shareholders. However, this results not from the Board’s action but from Applicant’s failure to obtain prior Board approval for its ac quisition. Approval of Applicant’s proposal would represent Board sanction of the inequitable treat ment accorded to the minority and the public interest would not be served by such action. On the basis of the record, the Board finds that approval of the § 3 application would not be in the public interest and it is accordingly denied.1 As provided in the Board’s Order of June 22, 1971, Applicant shall take appropriate action to forthwith divest the interest unlawfully held. By order of the Board of Governors, effective August 31, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Brimmer, Sheehan, and Bucher. Voting against this action: Governors Mitchell and Daane. Absent and not voting: Chairman Burns. [seal] (Signed) Tynan Smith, Secretary of the Board. ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT NCNB CORPORATION, CHARLOTTE, NORTH CAROLINA Order A pproving A cquisition of C. D ouglas W ilson & Co ., Inc . NCNB Corporation, Charlotte, North Carolina, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval, under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regulation Y, to acquire all of the voting shares of C. Douglas Wilson & Co., Inc., Greenville, South Carolina, a company that engages in the activity of mortgage banking. Such activity has been determined by the d e n i a l of A p p lic a n t’s 3 (a)(1) a p p lication req u ires d enial of the a ttendant 4(c)(8 ) pro p o sal. 845 LAW DEPARTMENT Board to be closely related to the business of banking (12 CFR 225.4(a)(1)). Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors has been duly published (37 Federal Register 1427). The time for filing comments and views has expired, and none has been timely received. Applicant controls the North Carolina National Bank (“ Bank” ), the second largest bank in North Carolina, and nonbanking subsidiaries engaged principally in installment loan financing, factoring, mortgage banking, and furnishing investment ad vice. Bank’s deposits of $1.5 billion1 represent 18.5 per cent of the total commercial bank deposits in the State. Through its mortgage banking sub sidiary, NCNB Mortgage Corporation, Applicant offers a complete line of mortgage banking ser vices in North Carolina. However, NCNB Mort gage Corporation has no offices in South Carolina and substantially all of its servicing portfolio of $186.1 million2 represents mortgages originated in the State of North Carolina. C. Douglas Wilson & Co., Inc. (“ Wilson” ), engages in the origination and servicing of all types of mortgage loans throughout South Caro lina. However, it obtains the majority of its busi ness in 18 counties in close proximity to its six offices in that State. Of Wilson’s total mortgage originations of $29.6 million in 1970, over 75 per cent were secured by residential property. Wilson competes for these mortgage originations with a number of savings and loan associations, other mortgage banking companies, and commercial banks in each of the local markets in which it maintains offices, including both South Carolina based firms and firms headquartered in other States. The record indicates that Wilson is a strong but not a dominant competitor in South Carolina mortgage markets, and that the demand for mort gage funds in the State may be expected to rise significantly. Between 1967 and 1970, new hous ing unit authorizations increased by 40.4 per cent *Data as o f D e ce m b e r 3 1, 1971. 2D ata as o f Ju n e 3 0 , 1971. 3N ew H o u sin g U n its A u th o rized in So u th C aro lin a and the U nited S tates, 1967-1970* 1967 S. C. 1969 1968 U.S. S.C. in the State, compared to a national increase of 18.4 per cent.3 The proposed acquisition would not result in any elimination of existing competition between NCNB Mortgage Corporation and Wilson in the residential mortgage market on one-four family homes or in the servicing of mortgages for the public. While the two institutions might on occa sion be approached to make construction loans or loans on new income producing properties in the other’s markets, there is no significant existing competition between them in either of these prod uct markets. Applicant’s capability for de novo entry into local mortgage markets in South Carolina is lim ited partially by its lack of personnel who are experienced in those markets. Consummation of the proposed acquisition eliminates the possibility of future competition between the two firms. However, because of numerous other mortgage companies and other financial institutions which both originate and service mortgages in South Carolina, the market is sufficiently unconcentrated to allow approval of the instant proposal without a substantial lessening of future competition. South Carolina’s need for an increasing supply of mortgage funds, including financing of largescale developments, seems clear. The State’s urban population increased by approximately 25 per cent between the period 1960-1970, and is expected to maintain this rate during the next decade. Consummation of the proposed acquisi tion would provide Wilson with access to financial and other resources of Applicant that would enable Wilson to provide more effectively for these needs, and at the same time enable it to compete more effectively for large commercial and construction loans in the State. The resulting benefits in terms of public needs and convenience, and increased competition would, in the Board’s judgment, out weigh any possible adverse effect on competition. In its consideration of the application, the Board noted that Applicant has substantial short-term debt, utilized to carry receivables of nonbank subsidiaries. In addition, long-term debt has been U.S. S.C. per cent change 1967-1970 1970 U.S. S.C. U.S. S.C. U.S. Number of units (000’s) 15.6 1,168.6 16.2 1,387.8 16.8 1,352.4 21.9 1,384.0 40.4 18.4 Value of units ($ millions) 18.4 15,367 19.6 18,799 21.9 19,045 26.7 19,664 45.1 28.0 ♦Based on local building permits issued in 13,000 places. The data exclude hotels, motels, and other group residential structures. Source: Bureau of the Census, Construction Reports, Series C-40. 846 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 used for purchasing capital notes of Bank and for other long-term investments; as a consequence, the resulting debt level is relatively high in relation to other bank holding companies. Debt of Appli cant’s nonbank subsidiaries appears to be reasona bly comparable to that of other similar businesses, and reasonably supportable without dependence upon the prestige or resources of Bank. The Board believes it essential that bank holding companies and their nonbank subsidiaries be soundly financed so that they will, if anything, be in a position to add to the strength of their affiliated banks and in no way dilute or “ trade on” that banking strength. In this, as in every application, the Board looks to the quality of management of the holding com pany itself, as well as to its banking and nonbank ing subsidiaries. Applicant and its subsidiaries are considered capably managed and appear able to operate satisfactorily with the level of the holding company’s debt. The Board notes further that the instant proposal involves an exchange of stock rather than a stock purchase; that Applicant’s existing debt level will not be increased materially; that the earnings record of Wilson has reasonably provided for debt servicing; and that prospects are good for contin ued favorable earnings under Applicant’s control. The Board concludes that the acquisition of Wilson will not place additional demands on Applicant’s earnings or adversely affect Applicant’s financial condition in any manner. Under these circum stances, the Board concludes that financial factors are consistent with approval. Based on the foregoing and other considerations reflected in the record, the Board hereby approves the application. This determination is subject to the conditions set forth in section 225.4(c) of Regulation Y and to the Board’s authority to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the Act and the Board’s regulations and orders issued thereunder, or to prevent evasions thereof. By order of the Board of Governors, effective August 1, 1972. Voting for this action: Chairman Burns and Governors Sheehan and Bucher. Voting against this action: Governors Robertson and Brimmer. Absent and not voting: Governors Mitchell and Daane. (Signed) T ynan Sm it h , [seal] Secretary of the Board D issenting S tatement of Governors Robertson and B rimmer We would deny this application. NCNB Corporation, headquartered in Charlotte, North Carolina, controls financial subsidiaries en gaged principally in installment loan financing, factoring, mortgage banking, and furnishing in vestment advice, in addition to its $1.5 billion (deposit size) North Carolina National Bank. Its mortgage banking subsidiary, NCNB Mortgage Corporation, ranks as the 116th largest mortgage company in the nation. Serving the entire State of North Carolina, this subsidiary originates a complete line of mortgage loans up to— and occa sionally across— the political boundary dividing North Carolina from South Carolina. Other non banking subsidiaries of Applicant have previously extended their services into South Carolina. Moreover, Applicant has applied through the Fed eral Reserve Bank of Richmond to establish a trust company in South Carolina. It is a foregone conclusion that Applicant will, in time, establish de novo mortgage banking offices in South Caro lina, witness the present mortgage offices in South Carolina established by Applicant’s principal holding company competitors in North Carolina— First Union National Bancorporation and the Wachovia Corporation. Expansion into South Carolina would appear essential if Applicant is to compete effectively with these companies on a regional basis. Hence, there are strong grounds for presuming that NCNB Corporation will attempt to enter South Carolina mortgage markets by al ternative means if this application is denied. The foregoing illustrates not only that Applicant has both the proximity and interest in the South Carolina mortgage market to rank it as a leading potential entrant, but that it has the resources through which it is capable of making a successful de novo entry. Indeed, it is Applicant’s capabil ity— in terms of both financial resources and man agement— that would permit it to overcome what ever short-term risks were entailed in such entry. The record in this case does not disclose any other potential entrant with the strong interest, incen tives, and proximity to the South Carolina mort gage market which Applicant has, nor is there one with its capability. We can only conclude that significant potential competition exists between Wilson and NCNB Corporation and this competi tion would be eliminated by approval of this ap plication. The vehicle through which Applicant has chosen to enter the South Carolina mortgage market— C. 847 LAW DEPARTMENT Douglas Wilson & Co., Inc.— is the largest mort gage banking firm headquartered in South Carolina and the 72nd largest mortgage banking firm in the nation.1 W ilson’s servicing portfolio in 1971 represented 36.6 per cent (by value) of all mort gages serviced by South Carolina-based mortgage companies. The combined mortgage servicing portfolio of Wilson and Applicant would total $452.4 million and would rank 44th nationally. Such a combination would have, in our opinion, a significantly adverse effect on competition among mortgage banking firms in South Carolina, and it would accelerate the trend toward acquisi tion of the remaining independents in that State. Elimination of the potential competition be tween Wilson and Applicant would cause no con cern were a number of other potential entrants standing in the wing, ready to enter the South Carolina mortgage markets. Such remaining po tential entrants would have a competitive influence on the practices of policies of mortgage bankers in South Carolina. However, while there are a number of bank holding companies in the country having Applicant’s capability, none have the same proximity or interest in entering local mortgage markets in South Carolina on a de novo basis. Undoubtedly, this is due to the fact that the greater the distance separating a de novo entrant from the market, the greater its start-up costs and costs of operation. In short, inability to make a successful de nova entry, i.e ., one that is profitable early in its operation, deters many from entering at all. We conclude that such is the case here and that few but this Applicant can be shown to have the capability of making a successful de novo entry. The elimination of the prospective competition now offered by Applicant thus constitutes the elimination of significant potential competition from the most likely source— an adverse effect which we believe to be seriously detrimental to the public interest. The majority concludes that approval of the proposed acquisition would be in the public inter est and that the benefits to the public would out weigh the adverse effects caused by the elimination of potential competition by reason of additional funds Wilson could bring to the mortgage markets in South Carolina. We disagree. A mortgage banker acts only as a conduit through which funds flow from an institutional investor to the ultimate borrower. The funds in most cases— and certainly in the case of Wilson— come from the treasury xB ased on a m o rtg ag e serv icin g p o rtfo lio of $ 2 6 6 .3 m illio n as of Ju n e 3 0 , 1971. of the institutional investor, not the treasury of the mortgage banker. We are therefore obliged to paraphrase an earlier view set forth in our dissent to the Board’s approval of the application of First Union National Bancorp., Inc., to acquire ReidMcGee & Company,2 where we stated: “ [Appli cant’s] stated intent to make mortgage funds available in the [South Carolina] region is depend ent on the ability or desire of its institutional investors, not the ability or desire of [Applicant]. Under these circumstances, we would require a clear showing that the institutional investors themselves intend to inject additional capital into the [South Carolina] mortgage market.” Such a showing has not been made in the record before the Board on this application. Had Applicant been required to carry the burden of proof of establish ing public benefits that outweigh the adverse ef fects of the proposal, we believe that Applicant would have failed to meet that burden. However, the majority has concluded that public benefits not only exist, but are sufficient to outweigh the ad verse effects. The additional funds the majority expects to see channeled into the South Carolina mortgage market are actually non-existent, since one mortgage banker in that market has simply been replaced by another. On the other hand, were Applicant to enter this market de novo, the public would be doubly enriched: additional funds would flow into the market from the new entrant, and a competitive force would be added in the market to generate greater competition. O r d e r A p p r o v in g A c q u is it io n o f T r u s t C o m p a n y o f F l o r id a NCNB Corporation, Charlotte, North Carolina, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regulation Y, to acquire all of the voting shares of Trust Com pany of Florida “ (Trust” ), Orlando, Florida, a company that engages in the activities performed or carried on by a trust company in the manner authorized by State law, but not the acceptance of demand deposits. Such activity has been deter mined by the Board to be closely related to the business of banking or managing or controlling banks (12 CFR 225.4(a)(4)). Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors, has been duly *5 8 F ed eral R eserve B u l l e t i n 7 2 , 7 4 . 848 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 published (37 Federal Register 7272). The time for filing comments and views has expired, and none have been timely received. Trust, which administered total trust assets of approximately $33 million as of December 31, 1971, operates its sole office in Orlando, and primarily serves Orange and all but the northern portion of Seminole Counties. With 7.3 per cent of the total trust assets held by institutions in the area, Trust is the fourth largest of seven corporate fiduciaries in that area and does not appear to be dominant. North Carolina National Bank ( “ Bank” ), a subsidiary of Applicant, engages, among other things, in a fiduciary business. Bank is located in Charlotte, North Carolina, and does not solicit trust business in the State of Florida. Bank’s only trust business originating in Trust’s service area is as trustee under a bond indenture for which it receives an annual fee of $250. Bank also does a nominal amount of trust business with former residents of North Carolina who, subsequent to the establishment of fiduciary relationships with Bank, moved into Trust’s service area. BullockNCNB Company, the only other subsidiary of Applicant which performs services that are per formed by trust companies, provides investment advisory and management services principally for pension and profit-sharing plans and tax-exempt institutional and endowment funds; it derives no business from Trust’s service area. Nor does Trust derive any business from the service area of any subsidiary of Applicant. It therefore does not ap pear that any significant existing competition will be eliminated by consummation of the proposed acquisition. Nor does it appear that consummation would have any adverse effect on potential com petition in that a recently-enacted Florida statute, inapplicable to the transaction proposed in this case, appears to prohibit the acquisition or owner ship of Florida trust companies by out-of-State corporations. There is no evidence on the record indicating that consummation of the proposed transaction would result in any undue concentration of re sources, unfair competition, conflicts of interests, unsound banking paractices, or other adverse ef fects on the public interest. On the other hand, consummation of the proposal would enhance Trust’s ability to offer a broadened range of fidu ciary and trust-related services to the residents of the Orlando area by providing Trust with invest ment research and portfolio management services, computer services, and marketing materials. Consequently, Trust would be better able to serve the public and to compete more effectively with the three larger trust departments of commercial bank subsidiaries of Florida holding companies which together hold approximately 80 per cent of the total trust assets in the area. The Board also concludes for reasons evident from its order of this date approving Applicant’s acquisition of shares of C. Douglas Wilson & Co., Inc., Greenville, South Carolina, that financial factors are consistent with approval. Based upon the foregoing and other consid erations reflected in the record, the Board has determined that the balance of the public interest factors the Board is required to consider under section 4(c)(8) is favorable. Accordingly, the ap plication is hereby approved. This determination is subject to the conditions set forth in section 225.4(c) of Regulation Y and to the Board’s au thority 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 pur poses of the Act and the Board’s regulations and orders issued thereunder, or to prevent evasion thereof. By order of the Board of Governors, effective August 1, 1972. Voting for this action: Chairman Burns and Governors Brimmer, Sheehan, and Bucher. Voting against this action: Governor Robertson, who dissents from this order for reasons enumerated in his Statement dissenting from the Board’s Order of December 7, 1971, approving the acquisition of Security Trust Company, Miami, Florida, by Nortrust Corporation, Chicago, Illinois (58 Federal Reserve B u l l e t in 67 (1972)). Absent and not voting: Governors Mitchell and Daane. (Signed) T y n a n S m i t h , Secretary of the Board. [s e a l] MIDWESTERN FINANCIAL CORPORATION, DENVER, COLORADO O rder A p p r o v in g A c q u is it io n of C ra w sh a w M ortgage and In v estm en t C o . Midwestern Financial Corporation, Denver, Colorado, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval, under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regu lation Y, to acquire all of the voting shares of Crawshaw Mortgage and Investment Co., Encino, California, a company that engages in the activity of mortgage banking. Such activity has been de LAW DEPARTMENT termined by the Board to be closely related to the business of banking (12 CFR 225.4(a)(1)). Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors has been duly published (37 Federal Register 9805). The time for filing comments and views has expired, and none has been timely received. Applicant is a one-bank holding company through its ownership of The First National Bank in Golden (deposits of $39.8 million), Golden, Colorado.1 Applicant’s major activity of mortgage banking is conducted through three subsidiaries: Kassler & Co., Kassler-West Mortgage Corpora tion and Kassler of California. As of June 30, 1971, Kassler & Co. serviced $701 million of permanent mortgages and ranked as the 18th larg est mortgage banking firm in the nation. Until March, 1970, when it acquired Kassler of Califor nia, Applicant was not active in the California mortgage banking markets. Crawshaw Mortgage and Investment Co. (“ Crawshaw” ) is a small mortgage company2 operating out of one office in Encino, California. It engages in originating, brokering and servicing FHA and VA loans on single-family residences and construction loans on commercial properties. In its most recent fiscal year, Crawshaw originated a total of $11.3 million in single family mortgages (primarily in Ventura County and the San Fer nando Valley— including the northern part of Los Angeles County) and $8.8 million in commercial mortgages (throughout the Los Angeles area). During 1971, Crawshaw had 0.17 per cent of the total mortgage recordings in Los Angeles County, while Kassler of California had about 0.51 per cent. In view of the relatively large number of other mortgage lenders in the Los Angeles area, elimination of this small amount of local competi tion would have no significantly adverse effect on mortgage lending in the area. Kassler of California does not presently compete in the Los Angeles area for commercial mortgage loans. Therefore, consummation of the proposal would not eliminate any existing competition in this product market. Since Applicant could com mence commercial mortgage lending on its own, however, its removal as a potential competitor to Crawshaw for such loans could have a slightly adverse effect. It is anticipated that the proposed acquisition b a n k i n g d ata as of D e ce m b e r 3 1 , 1971. 2A s o f S ep tem b er 3 0 , 1971, C ra w sh a w ’s serv icin g p o rtfo lio w as ap p ro x im ately $28 m illio n . 849 would enable Kassler of California to compete more effectively with the numerous mortgage departments of large banks and savings and loan associations in the Los Angeles area. Present and potential mortgage customers could be served more conveniently out of Kassler of California’s established offices in the area. On balance, the Board concludes that these public benefits out weigh any possible adverse effect on competition. Based upon the foregoing and other consid erations 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(a) of Regu lation Y and to the Board’s authority to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the Act, and the Board’s regulations and orders issued thereunder, or to prevent evasions thereof. By order of the Board of Governors, effective August 31, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Ab sent and not voting: Chairman Burns. (Signed) T y n a n S m i t h , Secretary of the Board. [s e a l] ORDER UNDER SECTION 4(d) OF BANK HOLDING COMPANY ACT BENEFICIAL CORPORATION, WILMINGTON, DELAWARE O r d e r A p p r o v in g E x e m p t io n o f N o n b a n k in g A c t iv it ie s o f B a n k H o l d in g C o m p a n y Beneficial Corporation, Wilmington, Delaware, a bank holding company within the meaning of the Bank Holding Company Act of 1956 (12 U.S.C. 1841), by virtue of ownership of 73.3 per cent of the voting shares of Peoples Bank and Trust Company, Wilmington, Delaware (“ Bank” ), has applied to the Board of Governors, pursuant to § 4(d) of the Act, for an exemption from the prohibitions of § 4 (relating to nonbanking activi ties and acquisitions). Notice of receipt of the application was pub lished in the Federal Register on June 14, 1972 (37 Federal Register 11804). Time for filing com- 850 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 ments and views has expired. No request for a hearing has been received. Section 4(d) of the Act provides that to the extent such action would not be substantially at variance with the purposes of the Act and subject to such conditions as the Board considers neces sary to protect the public interest, the Board may grant an exemption from the provisions of § 4 of the Act to certain one-bank holding companies in order (1) to avoid disrupting business relationships that have existed over a long period of years without adversely affecting the banks or commu nities involved, or (2) to avoid forced sales of small locally owned banks to purchasers not simi larly representative of *community interests or (3) to allow retention of banks that are so small in relation to the holding company’s total interests and so small in relation to the banking market to be served as to minimize the likelihood that the bank’s powers to grant or deny credit may be influenced by a desire to further the holding com pany’s other interests. The Board has considered the application and all comments received in the light of the factors set forth in § 4(d) of the Act and finds that: Beneficial Corporation is a diversified holding company that operates the sixth largest consumer finance company in the country, and owns Speigel, Inc., Western Auto Supply Company, and over 60 other firms. The record shows that, in the early 1920’s, Beneficial organized Bank (under another name), but Bank did not open for business until December 1952. As of December 20, 1971, Ben eficial owned 73.3 per cent of Bank’s outstanding voting shares; and the remaining shares are owned by present or former directors, officers, or em ployees of Beneficial or of its subsidiaries (25.2 per cent), and by individuals residing in the Wil mington area. Furthermore, it appears that, as of February 29, 1972, approximately one-third of Bank’s demand deposits represent deposits on be half of Beneficial or its subsidiaries, or their directors, officers, or employees; and 17.6 per cent of Bank’s total loans represent loans to directors, officers, or employees of Beneficial or its sub sidiaries. The record contains nothing to suggest that permitting Bank’s affiliation with Applicant to continue indefinitely will adversely affect either the Bank or the community of Wilmington. Bank’s total assets ($20.4 million) at year-end 1971 were about 0.7 per cent of the total assets of Applicant and all of its subsidiaries ($2.8 bil lion). Applicant indicates that neither Beneficial nor any of its subsidiaries has borrowed from Bank. During 1971, Beneficial had short-term borrowings of $275.7 million and long-term bor rowings of $955 million. In contrast, Bank’s total of loans outstanding as of February 29, 1972, amounted to $5.3 million, with a statutorily im posed lending limit of $200,000 to any one affili ate of Bank and $400,000 in aggregate to all such affiliates. The record contains nothing to suggest that Beneficial has misused Bank’s services for the benefit of Applicant’s other interests and, in view of the size disparity between Bank and Applicant, and the small size of Bank in relation to the surrounding banking market and to the credit needs of Beneficial, future misuse of Bank by Beneficial seems unlikely. Bank ($16.3 million in deposits) operates in the Wilmington banking market where it is the fifth largest of eight banks in the market and controls about 1.2 per cent of total deposits in the market. (All banking data are as of December 31, 1971, and reflect bank holding company formations and acquisitions approved by the Board through July 7, 1972.) Each of the four larger banks in the market has deposits in excess of $245 million. There are at least four other subsidiaries of large consumer finance companies and seven other commercial banks in the same market. It does not appear that there would be any adverse competitive effects from permitting Beneficial to continue its ownership of Bank. Based on the foregoing and other considerations reflected in the record, the Board concludes that the facts of record do not warrant disrupting a business relationship that has existed over a long period of years without adversely affecting the banks of the community involved; and that Bank is so small in relation to the total interests of Beneficial and so small in relation to the banking market served by Bank as to minimize the likeli hood that Bank’s powers to grant or deny credit may be influenced by a desire to further Benefi cial’s other interests. Accordingly, an exemption pursuant to § 4(d) of the Act is hereby granted; provided, however, that this determination is sub ject to revocation if the facts upon which it is based change in any material respect. By order of the Board of Governors, effective August 29, 1972. Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Ab sent and not voting: Chairman Burns. (Signed) T ynan Sm it h , [seal] Secretary of the Board. Announcements FEDERAL RESERVE BANK BRANCH DIRECTORS E. Stanley Robbins, who had served since January 1, 1970, as a Board-appointed Director of the Birmingham Branch of the Federal Re serve Bank of Atlanta, resigned effective June 30, 1972. Wade C. Barton, who had served since January 1, 1972, as a Board-appointed Director of the Memphis Branch of the Federal Reserve Bank of St. Louis died on July 26, 1972. Mr. Barton was President of First Citizens National Bank, Tupelo, Mississippi. John G. Beam, who had served since January 1, 1969, as a Board-appointed Director of the Louisville Branch of the Federal Reserve Bank of St. Louis, died on August 29, 1972. Mr. Beam was President of Thomas Industries Incorporated, of Louisville. 851 National Summary of Business Conditions Released for publication September 18 Industrial production, nonfarm employment, and retail sales advanced in August. The unemploy ment rate was about unchanged. The wholesale price index rose further. Commercial bank credit, the money stock, and time and savings deposits increased. Between mid-August and mid-Sep tember, yields on Treasury and municipal securi ties rose and yields on seasoned corporate securi ties remained relatively steady. INDUSTRIAL PRODUCTION Industrial production rose 0.5 per cent further in August to 114.3 per cent (1967=100), with gains in output general among final products and mate rials. The higher August level of the index re flected in part a pickup of production following the effects of the hurricane in late June. The July index was revised slightly upwards to 113.7. The total index in August was 8.2 per cent above a year earlier. Auto assemblies, after allowance for the model changeovers, were at an 8.5 million unit annual rate in August, the same as in July. Among other consumer goods, production of some home goods and consumer nondurable goods also rose. Output in most business equipment industries increased and production of defense equipment advanced further. Gains continued in output of construction products and steel, and in the textile, paper, and chemical materials grouping. INDUSTRIAL PRODUCTION EMPLOYMENT Nonfarm payroll employment rose in August, with advances in trade, services, State and local gov ernments, and manufacturing. The average factory workweek edged up 0.1 hour to 40.7 hours. The unemployment rate was essentially unchanged at 5.6 per cent as the labor force increased consid erably. RETAIL SALES The value of retail sales rose 1.5 per cent in August and was 9.5 per cent above a year earlier, accord ing to the advance report. Sales at durable goods stores rose sharply from July, reflecting mainly strong gains in the automotive and the lumberhardware-farm equipment groupings. Sales at nondurable goods stores were also higher. WHOLESALE AND CONSUMER PRICES The wholesale price index, seasonally adjusted, rose 0.6 per cent between July and August, as prices of farm and food products increased 1.4 per cent. The index of industrial commodities increased 0.4 per cent with important advances being posted for fuels, hides and skins, lumber and plywood, and motor vehicles and equipment. The consumer price index rose 0.4 per cent in July, seasonally adjusted. Food prices were up 0.6 per cent, boosted by substantial advances for meats. Prices of other commodities and of services both increased 0.3 per cent. BANK CREDIT, DEPOSITS, AND RESERVES F .R . in d ex es, seaso n ally ad ju sted . L atest figures: A ugust. 852 Commercial bank credit, adjusted for transfers of loans between banks and their affiliates, increased rapidly in August— at an annual rate of about 18 per cent. Loan growth was very strong reflecting continued heavy borrowing in most major cate gories— business, real estate, consumer, and non bank financial institutions. Holdings of municipal and Federal agency issues rose somewhat follow ing little net change over the previous 2 months, but holdings of U.S. Treasury securities declined 853 further, probably associated with a smaller-thanusual volume of Treasury financing. The narrowly defined money stock increased at an annual rate of 6 per cent, much less rapidly than in July. U.S. Government deposits declined. Growth in time and savings deposits other than large negotiable CD’s was at a faster pace than in July, but less rapid than earlier in the year. Sales of large negotiable CD’s accelerated some what further. Net borrowed reserves of member banks averaged about $180 million over the 5 weeks ending August 30 compared with $25 million in July. Member bank borrowings increased substan tially further to an average level of about $370 million while excess reserves remained close to $190 million. SECURITY MARKETS Treasury bill rates rose by about 60 to 80 basis points between mid-August and mid-September. The 3-month bill was bid at around 4.70 per cent in the middle of September, up from 3.90 per cent a month earlier. Yields on U .S. Government notes and bonds advanced by some 10 to 35 basis points over the same period. Yields on new corporate securities fluctuated narrowly from mid-August to mid-September, ris ing slightly on balance. Seasoned corporate secu rity yields remained relatively steady. Municipal security rates rose steadily but leveled off in midSeptember. Common stock prices increased moderately on average to light volume. IN T ER ES T R A TES P R IC E S 1967=100 130 Wholesale Consumer 1967=100 130 LONG-TERM GOVERNMENT SECURITIES B ureau o f L ab o r S tatistics. “ F arm p ro d u c ts and fo o d s ” is B LS “ F arm p ro d u c ts, an d p ro c e sse d fo o d s and fe e d s .” L atest figures: C o n su m e r, Ju ly ; W h o le sa le , A ug. D isco u n t rate, range o r level for all F .R . B anks. W ee k ly average m arket y ields fo r U .S . G o v t, b o nds m a tu rin g in 10 years or m ore and fo r 9 0 -d a y T rea su ry b ills. L atest figures: w eek ending Sept. 2. 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 8 9 10 11 12 14 15 16 Member bank reserves, Federal Reserve Bank credit, and related items Federal funds— Major reserve city banks Reserve Bank interest rates Reserve and margin requirements Maximum interest rates; bank deposits Federal Reserve Banks Open market account Reserve Banks; bank debits U.S. currency A A A A A A A A A A A A A 17 18 19 20 26 31 32 33 33 34 37 38 39 Money stock Bank reserves; bank credit Banks and the monetary system 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 41 42 44 47 50 51 56 Federally sponsored credit agencies Federal finance U.S. Government securities Security issues Business finance Real estate credit Consumer credit Continued on next page FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 U.S. STATISTICS— Continued A A A A A A A A 60 64 64 66 68 68 70 72 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 74 75 76 77 78 93 94 95 96 97 A 106 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 Money rates in foreign countries 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 par ticular 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 in stances: (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 politi cal subdivisions. In some of the tables details do not add to totals because of rounding. The footnotes labeled N o t e (which always appear last) provide (1) the source or sources of data that do not originate in the System; (2) notice when figures are estimates; and (3) information on other characteristics of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Flow of funds . Issue June 1972 Page Annually— Continued A-72— A-73.9 Semiannually Banking offices: Analysis of changes in number ... On, and not on, Federal Reserve Par List, n u m b er......................... Banks and branches, number, by class and S ta te .................. Issue Apr. 1972 Page A-98— A-99 Flow of funds: Aug. 1972 A-98 Aug. 1972 A-99 Assets and liabilities: 1960-71 .................. June 1972 A-73.10— A-73.21 Flows: 1965-71 data (revised) . June 1972 A -73.1— A-73.9 Annually Bank holding companies: List of, Dec. 31, 1971....................... June 1972 Banking offices and deposits of group banks, Dec. 31, 1971......... Aug. 1972 A-98 A-101 Banking and monetary statistics: 1971 ......................................... Mar. 1972 July 1972 A-98— A -110 A-98— A-101 Income and expenses: Federal Reserve B anks.................... ... Feb. Insured commercial banks................ ... May Member banks: Calendar y e a r................................ ... May Income ratios................................. ... May Operating ratios............................. ... July 1972 1972 A-96— A-97 A-98— A-99 1972 1972 1972 A-98— A -107 A -108— A -113 A -102— A -107 Stock market cre d it..................................Feb. 1972 A -102—A -103 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Anticipated schedule of release dates for individual releases............................................................................................................................ June 1972 Page A -115 A 4 BANK RESERVES AND RELATED ITEMS □ SEPTEMBER 1972 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period o r date U.S. Govt, securities 1 Total Bought o u t right Held under repur chase agree ment G old stock O ther F.R . assets 3 Loans Special D rawing Rights certificate account T reas ury c u r rency o u t stan d ing Averages of daily figures 5 381 142 83 170 652 1,117 2,612 2,404 24,744 21,606 17,518 22,759 20,047 22,879 2,956 3,239 4,322 4,629 78 113 81 75 205 378 94 490 238 765 ,086 321 1,665 2,349 2.030 3,251 3,235 3,570 2,204 1,032 29,060 43,853 51,268 56,610 64,100 66,708 17,954 13,799 12,436 10.367 10.367 11,105 400 5,396 5,565 6,777 6,810 6,841 7,145 181 312 804 501 360 407 107 2,572 2,974 3,122 3,129 3,905 991 900 1,105 1,013 982 70,749 71,568 72,349 72,694 74,255 10,184 10.132 10.132 10.132 10.132 400 400 400 400 400 7,460 7,523 7,545 7,573 7,611 20 1,177 957 780 990 934 933 439 3,405 2,959 2,948 3.031 3,140 3,370 3,548 3,347 75,415 73,994 73,181 75,171 75,705 76,108 77,035 76,679 10.132 9,851 9.588 9.588 10,224 10.410 10.410 10.410 400 400 400 400 400 400 400 400 7,656 7,795 7,859 7,922 7,991 8,043 8,080 8,137 58 94 59 129 3,297 2,950 3,704 3,497 878 896 941 75,962 75,747 76,101 76,367 10.410 10.410 10.410 10.410 400 400 400 400 8,023 8,032 8.055 8,057 1,061 1,115 1,156 76,939 76,923 77,663 76,991 10.410 10.410 10.410 10.410 400 400 400 400 8.056 8,077 8,082 8,089 1939—D ec............................. 1941—D ec............................. 1945—D ec............................. 1950—D ec............................. 2,510 2,219 23,708 20,345 2,510 2,219 23,708 20,336 I960—D ec............................. 1965—D ec............................. 1967—D e c 1968—D ec . 1969—D e c 1970—D e c 27,248 40,885 48,891 52,529 57,500 61,688 27,170 40,772 48,810 52,454 57,295 61,310 1971—Au g Sept............................. Oct.............................. N ov............................. D ec.............................. 66,324 67,106 67,690 68,052 69,158 66,143 66,794 67,488 67,655 1972—Ja................................. n Feb.............................. M ar............................. A pr.............................. M ay ............................ Ju n e ............................ July............................. Aug.*1......................... 70,687 69,966 69,273 70,939 71,428 71,632 72,089 71,858 70,300 69,862 69,133 70,770 71,391 71,624 71,972 71,732 387 104 140 169 37 68,868 202 397 290 8 117 126 33 99 109 119 94 202 1,111 957 Week ending— 1972—June 7..................... 14..................... 21..................... 28..................... 71,643 71,728 71,325 71,658 71,620 71,728 71,325 71,648 23 July 5 ..................... 12..................... 19..................... 26..................... 72,487 71,785 72,353 71,909 72,431 71,688 71,988 71,909 56 97 365 312 227 173 172 3,053 3,767 3,896 3,689 Aug. 2 ..................... 9 ..................... 16..................... 23 ^ ................... 30* ............. 71,990 72,102 72,045 71,731 71,448 71,890 71,967 71,922 71,731 71,356 100 3,195 3.300 3.301 3,737 3,227 1,212 1,265 1,112 92 363 287 382 350 477 670 729 76,832 77,037 76,922 76,557 75,957 10.410 10.410 10.410 10.410 10.410 400 400 400 400 400 8,096 8,116 8,135 8,151 8,153 72,462 71,901 71,890 6 72,462 6 71,901 71,104 786 130 83 1,091 3,299 2,224 3,368 990 1,268 774 76,954 75,539 77,219 10.410 10.410 10.410 400 400 400 8,066 8,095 8,157 7 ..................... 14..................... 21..................... 28..................... 71,888 71,728 71,298 72,094 6 71,728 6 71,728 6 71,298 6 72,022 160 135 72 3,125 3,440 3,950 3,488 893 940 181 474 1,012 1,042 76,171 76,247 76,507 77,246 10.410 10.410 10.410 10.410 400 400 400 400 8,028 8,037 8.057 8.057 5 ..................... 12..................... 19..................... 26..................... 72,969 69,515 72,443 71,959 6 72,582 6,769,515 6 72,039 6 71,959 387 513 404 82 637 3,072 3,909 4,049 3,569 1,062 1,107 1,155 1,168 77,731 74,683 77,839 77,397 10.410 10.410 10.410 10.410 400 400 400 400 8,056 8,081 8,087 8,093 2 p ................... 9 v .................. 16p................... 23 p ................... 30? ............ 72,544 72,565 72,709 70,964 72,033 6 71,864 6 71,953 6 72,031 6,7 70,964 6 71,389 680 612 678 1,271 842 535 878 1,330 3,406 3,135 3,628 3,395 3,053 1,233 1,320 676 727 766 78,572 78,024 77,693 76,031 77,307 10.410 10.410 10.410 10.410 10.410 400 400 400 400 400 8,101 10 135 123 1,002 1,010 End of month 1972—Ju n e ............................ July............................. A ug.?......................... W ednesday 1972—June July Aug. For notes see opposite page. 644 66 86 8,132 8,146 8,152 8,157 SEPTEMBER 1972 □ BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— C ontinued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank reserves, with F.R. Banks Cur rency in cir cula tion Treas ury cash hold ings 7,609 10,985 28,452 27,806 2,402 2,189 2,269 1,290 616 592 625 615 33,019 42,206 47.000 50,609 53,591 57,013 408 808 1,428 756 656 427 58,906 59,012 59,185 59,939 61,060 Treas ury For eign Other F.R. ac counts3 Other2 Other F.R. lia bilities and capital3 Member bank reserves With F.R. Banks Cur rency and coin* Period or date Total Averages of daily figures 72\9 1,531 1,247 920 353 522 683 902 360 1,194 849 250 154 150 225 146 145 495 231 451 458 458 735 477 466 464 470 453 1,121 1,621 2,100 1,723 1,926 181 151 152 133 290 60,201 59,681 60,137 60,717 61,182 61,874 62,669 62,726 487 436 388 405 573 356 342 319 2,821 2,421 933 1,688 2,170 2,673 2,398 2,025 61,632 61,944 61,958 61,871 361 354 355 354 62,384 63,005 62,829 62,530 248 292 493 739 11,473 12,812 16,027 17,391 1,029 389 -2 0 4 -1 ,1 0 5 2,192 2,265 16,688 18,747 20,753 22,484 23,071 23,925 712 712 736 714 728 2,298 2,296 2,327 2,320 2,287 181 172 170 200 185 153 209 171 750 683 597 615 574 598 617 604 2,559 2,602 2,435 3,173 134 138 150 154 362 352 330 335 2,166 2,427 2,388 2,533 62,448 62,681 62,921 62,785 62,544 336 330 313 315 316 62,201 62,435 62,752 11,473 12,812 16,027 17,391 . 1939—Dec. .1941—Dec. . 1945—Dec. . 1950—Dec. 2,595 3,972 4,507 4,737 4,960 5,340 19,283 22,719 25,260 27,221 28,031 29,265 . 1960—Dec. . 1965—Dec. . 1967—Dec. .1968—Dec. .1969—Dec. .1970—Dec. 25,098 25,365 25,463 25,500 25,653 5,357 5,437 5,397 5,453 5,676 30,455 30,802 30,860 30,953 31,329 .1971—Aug. ............Sept. .............. Oct. 2,208 2,273 2,247 2,313 2,289 2,304 2,329 2,324 26,955 26,374 26,555 27,144 27,347 27,002 27,361 27,457 5,910 5,548 5,366 5,421 5,465 5,537 5,660 5,698 32,865 31,922 31,921 32,565 32,812 32,539 33,021 33,155 .1972—Jan. ...........Feb. ..........Mar. .......... Apr. .......... May ............ June ............July ..........Aug.* 611 588 575 571 2,415 2,203 2,253 2,330 27,083 26,760 27,240 26,780 5.594 5,657 5,356 5,521 32,677 32,417 32,596 32,301 .1972—June 7 ....................... 14 252 176 199 271 722 599 621 584 2,372 2,364 2,264 2,303 27,548 26,889 27,926 27,334 5.595 5,858 5,369 5,706 33,143 32,747 33,295 33,040 2,464 2,531 2,132 1,780 1,609 150 159 167 177 183 611 633 611 581 584 2,377 2,379 2,235 2,289 2,351 27,352 27,251 27,489 27,590 27,333 5,787 5,882 5,837 5,325 5,709 33,139 33,133 33,326 32,915 33,042 351 337 305 2,344 2,298 1,727 257 160 192 836 620 592 2,359 2,406 2,420 27,482 26,185 28,198 5,594 5,789 5,798 33,076 31,974 33,996 61,936 62,123 62,014 62,161 360 357 368 357 2,356 2,121 2,954 2,923 145 126 186 194 615 533 554 585 2,442 2,223 2,290 2,365 27,155 27.611 27,008 27,528 5.593 5,655 5,357 5,524 32,748 33,266 32,365 33,052 62,926 63,125 62,795 62,582 367 339 337 349 1,795 2,816 2,426 2,490 189 172 236 156 575 561 615 601 2,414 2,216 2,294 2,328 28,331 24,345 28,033 27,794 5.594 859 368 708 33,925 30,204 33,401 33,502 62,642 63,020 63,018 62,766 62,769 345 325 319 325 316 2,137 2,473 1,792 1,919 1,406 168 156 171 187 168 690 562 658 573 602 2,420 2,205 2,266 2,315 2,402 29,080 28,224 28,426 26,908 28.611 787 882 837 325 5,709 34,867 34,106 34,263 32,233 34,320 .............Nov. ............Dec. Week ending— .................21 ....................... 28 .July 5 ........12 ..........19 .......... 26 . Aug. 2 .......... 9 ..........16 ....... 23* ..........30* End of month •June . .July .Aug.* Wednesday 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 B u l l e t i n , p. 164. 8 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 .1972—June 7 ..................... 14 ................ 21 ..................... 28 .July 5 ........12 ..........19 ..........26 . Aug. 2* ..........9p ....... 16* ..........23* ..........30* on Wed. and end-of-month dates, see tables on F.R. Banks on following pages. See also note 2. 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; 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. 6 Includes securities loaned—fully secured by U.S. Govt, securities pledged with F.R. Banks. 7 Reflects securities sold, and scheduled to be bought back, under matched sale/purchase transactions. A 6 BANK RESERVES AND RELATED ITEMS □ SEPTEMBER 1972 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New Y ork City Period Reserves T otal held R e q u ire d 1 Excess Bor row ings at F.R. Banks Reserves Free T otal Re held quired 1 Excess City o f Chicago Bor row ings at F.R . Banks Reserves Free re serves Total held R e quired 1 Excess B or row ings at F.R . Banks Free re serves 5,011 3,390 1,491 1,027 3 5 334 142 5,008 3,385 1,157 885 5,623 5,142 4,118 4,742 3,012 4,153 4,070 4,616 2,611 989 48 125 192 58 2,611 989 -1 4 4 67 1,141 1,143 939 1,199 601 848 924 1,191 540 295 14 8 5 540 295 14 3 18,527 22,267 24,915 26,766 27,774 28,993 756 452 345 455 257 272 87 454 238 765 1,086 321 669 107 -3 1 0 -8 2 9 -4 9 3,687 4,301 5,052 5,157 5,441 5,623 3,658 4,260 5,034 5,057 5,385 5,589 29 41 18 100 56 34 19 111 40 230 259 25 10 -7 0 -2 2 -1 3 0 -2 0 3 9 958 1,143 1,225 1,199 1,285 1,329 953 1,128 1,217 1,184 1,267 1,322 4 15 8 15 18 7 8 23 13 85 27 4 -4 -8 —5 -7 0 -9 3 30,455 30,802 30,860 30,953 31,329 30,257 30,596 30,653 30,690 31,164 198 206 207 263 165 804 501 360 407 107 -6 0 6 -2 9 5 -1 5 3 -1 4 4 58 5,693 5,683 5,678 5,644 5,774 5,640 5,674 5,667 5,608 5,749 53 9 11 36 25 164 38 67 107 35 -1 1 1 -2 9 -5 6 -7 1 c- 1 0 1,417 1,417 1.425 1,408 1.426 1,410 1,423 1,408 1,400 1,425 7 -6 17 8 1 7 4 15 22 8 -1 0 2 -1 4 -7 32,865 31,922 31,921 32,565 32,812 32,539 33,021 33,155 32,692 31,798 31,688 32,429 32,708 32,335 32,874 32,894 173 124 233 136 104 204 147 261 33 99 109 119 94 20 153 91 134 27 -1 5 6,066 5,775 5,815 5,938 6,045 5,956 6,129 5,988 6,058 5,807 5,758 5,940 6,031 5,922 6,097 5,994 8 -3 2 57 -2 14 34 32 -6 5 71 48 50 6 15 117 8 -3 7 -1 4 -5 0 -3 6 28 17 -1 2 3 1,503 1,446 1,434 1,482 1,514 1,488 1.510 1.511 1,512 1,442 1,443 1,476 1,505 1,489 1,502 1,500 -9 4 -9 6 9 -1 8 11 4 5 12 -9 4 -1 3 1 -3 —1 2 1 18. . . 25. . . 30,894 30,330 30,605 30,111 30,460 30,303 30,381 30,020 434 27 224 91 764 593 1,179 771 5,781 5,625 5,816 5,456 5,677 5,699 5,748 5,522 104 -7 4 68 -6 6 342 267 61 -7 4 -2 7 4 -3 3 3 1,447 1,419 1,416 1,387 1,434 1,431 1,412 1,383 13 -1 2 4 4 1972—Feb. 2... 9... 16. . . 23... 32,435 31,892 32,257 31,823 32,190 31,842 31,946 31,693 245 50 311 130 16 42 18 14 5,936 5,733 6,078 5,686 5,880 5,825 5,895 5,789 56 -9 2 183 -1 0 3 56 -1 1 4 183 -1 0 3 1,460 1,439 1,450 1,453 1,451 1,445 1,466 1,427 9 -6 -1 6 26 9 -6 -1 6 26 Mar. 1... 8. . . 15 . . . 22. . . 29... 31,614 31,465 32,108 31,558 32,219 31,532 31,289 31,715 31,691 31,934 82 176 393 -133 285 67 103 13 115 153 5,643 5,649 5,982 5,605 5,911 5,679 5,658 5,796 5,725 5,820 -3 6 -9 186 -1 2 0 91 95 94 -3 6 -1 0 8 186 -2 1 5 -3 1,411 1,435 1,473 1,421 1,442 1,425 1,419 1,479 1,433 1,436 -1 4 16 -6 -1 2 6 4 14 -1 4 16 -6 -1 6 -8 5... 12. . . 19... 26... 32,604 32,345 32,565 32,666 32,230 32,179 32,624 32,448 374 166 -5 9 218 141 14 43 279 : : 5,991 5,963 5,947 5,913 5,933 5,953 6,055 5,824 58 10 -1 0 8 89 23 124 -2 8 10 -1 3 1 -3 5 1,521 1,446 1,498 1,441 1,472 1,482 1,489 1,456 49 -3 6 9 -1 5 23 49 -3 6 9 -3 8 3... 10. . . 17... 24... 31. . . 32,840 32,757 33,157 32,646 32,814 32,704 32,566 32,963 32,560 32,726 136 191 194 117 87 39 63 254 > t ; t I 5,862 6,019 6,223 6,007 5,975 5,927 5,978 6,218 5,994 6,001 -6 5 41 5 13 -2 6 60 49 21 39 51 -1 2 5 -8 -1 6 -2 6 -7 7 1,513 1,486 1,566 1,443 1,520 1,480 1,506 1,535 1,491 1,496 33 -2 0 31 -4 8 24 54 33 -2 0 31 -4 8 -3 0 7... 14. . . 21.. . 28... 32,677 32,417 32,596 32,301 32,346 32,308 32,384 32,177 331 109 212 124 58 94 59 129 I i t i 6,020 5,889 6,047 5,793 5,931 5,920 5,975 5,809 89 -3 1 72 -1 6 18 6 89 -3 1 54 -2 2 1,490 1,506 1,492 1,480 1,491 1,491 1,497 1,476 -1 15 -5 4 -1 15 -5 4 July 5... 12. . . 19. . . 26... 33,143 32,747 33,295 33,040 32,815 32,524 33,148 32,961 328 223 147 79 312 227 173 172 ; I 5 1 6 ,n i 6,014 6,184 6,123 6,097 5,991 6,209 6,124 74 23 -2 5 -1 42 26 32 23 -2 5 -2 7 1,532 1,484 1,519 1,501 1,507 1,485 1,530 1,489 25 -1 -1 1 12 25 -1 -1 1 -1 4 Aug. 2... 9... 16. .. 23*\. 30*>.. 33,139 33,133 33,326 32,915 33,042 32,897 33,003 33,072 32,784 32,762 242 130 254 131 280 363 287 382 350 477 I 1 I > 1 6,052 6,037 6,138 5,889 5,981 6,051 6,038 6,102 5,935 5,900 1 -1 36 -4 6 81 144 39 76 79 85 -1 4 3 -4 0 -4 0 -1 2 5 -4 1,485 1,533 1,503 1,496 1,482 1,498 1,518 1,516 1,486 1,482 -1 3 15 -1 3 10 1939—D ec............. 1941—D ec............. 1945—D ec............. 1950—D ec............. 11,473 6,462 12,812 9,422 16,027 14,536 17,391 16,364 I960—D ec............. 1965—D ec............. 1967— De c 1968—D e c 1969—D e c 1970—D e c 19,283 22,719 25,260 27,221 28,031 29,265 1971—Au g Sept............ Oct.............. N ov............ D ec............. 1972—Ja................ n Feb............. Mar............ Apr............. M ay........... June........... July............ Aug.®......... 202 439 -2 110 -5 5 -1 7 8 6 10 Week ending— 1971—Aug. Apr. May June 4... 11. . . For notes see opposite page. 86 ' i 15 • -6 1 43 22 99 86 31 26 11 35 13 -1 2 -2 7 4 -2 4 -2 0 -1 3 10 SEPTEMBER 1972 □ BANK RESERVES AND RELATED ITEMS A 7 RESERVES AND BORROWINGS OF MEMBER BANKS— C ontinued (In millions o f dollars) Country banks O ther reserve city banks Reserves Reserves Borrow ings at F.R. Banks Free eserves Borrow ings at F.R. Banks Period Free reserves Total held R equired1 Excess 1,188 1,302 322 182 1,568 2,210 4,576 4,761 897 1,406 3,566 4,099 671 804 1,011 663 3 4 46 29 668 800 965 634 80 -1 6 1 -5 5 -1 8 0 -4 7 3 -2 2 2 6,689 8,219 8,901 9,875 10,335 10,765 6,066 7,889 8,634 9,625 10,158 10,576 623 330 267 250 177 189 40 92 80 180 321 28 583 238 187 70 -1 4 4 161 425 318 163 177 22 -4 3 7 -2 8 0 -1 4 4 -1 1 2 -5 7 11,474 11,587 11,688 11,795 11,931 11,324 11,422 11,528 11,641 11,757 150 165 160 154 174 208 141 115 101 42 -5 8 24 45 53 132 13 5 26 16 -2 4 7 -4 1 99 12 9 22 31 40 64 134 13 -7 17 -6 -5 5 -3 3 -1 0 5 -3 5 12,342 12,123 12,113 12,325 12,379 12,349 12,533 12,649 12,181 11,976 11,954 12,209 12,274 12,185 12,385 12,492 161 147 159 116 105 164 148 157 20 16 15 34 26 48 117 178 141 131 144 82 79 116 31 -2 1 11,973 11,898 11,901 11,788 121 -4 2 -1 8 10 429 375 545 372 -3 0 8 -4 1 7 -5 6 3 -3 6 2 11,572 11,430 11,490 11,470 11,376 11,275 11,320 11,327 196 155 170 143 292 218 261 132 -9 6 -6 3 -9 1 11 ...............................................11 ...............................................18 ...............................................25 12,686 12,577 12,602 12,583 12,688 12,567 12,636 12,537 -2 10 -3 4 46 1 -2 10 -3 5 46 12,353 12,143 12,127 12,101 12,171 12,005 11,949 11,940 182 138 178 161 16 20 17 14 166 118 161 147 ....................... 1972— Feb. 2 ............................................... 9 ............................................... 16 ............................................... 23 12,464 12,396 12,605 12,465 12,651 12,492 12,384 12,554 12,539 12,609 -2 8 12 51 -7 4 42 2 8 21 -8 5 12 49 -8 2 21 12,096 11,985 12,048 12,067 12,215 11,936 11,828 11,886 11,994 12,069 160 157 162 73 146 10 4 11 8 24 150 153 151 65 122 12,804 12,740 12,816 12,865 12,718 12,705 12,903 12,827 86 35 -8 7 38 8 86 86 35 -9 5 -4 8 12,288 12,196 12,304 12,447 12,107 12,039 12,177 12,341 181 157 127 106 55 14 12 46 126 143 115 60 12,894 12,815 12,966 12,884 12,920 12,866 12,804 12,983 12,850 12,966 28 11 -1 7 34 -4 6 2 19 4 8 106 26 -8 -2 1 26 -1 5 2 12,571 12,437 12,402 12,312 12,399 12,431 12,278 12,227 12,225 12,263 140 159 175 87 136 55 19 14 16 43 85 140 161 71 93 12,867 12,772 12,712 12,642 12,791 12,792 12,706 12,639 76 -2 0 6 3 20 44 12 67 56 -6 4 -6 -6 4 12,300 12,250 12,345 12,386 12,133 12,105 12,206 12,253 167 145 139 133 38 50 29 56 129 95 110 77 ...............................................14 ...............................................21 ...............................................28 12,924 12,827 13,046 12,783 12,846 12,814 13,057 12,849 78 13 -1 1 -6 6 126 78 64 33 -4 8 -6 5 -7 5 -9 9 12,516 12,422 12,546 12,633 12,365 12,234 12,352 12,499 151 188 194 134 144 149 109 87 7 39 85 47 ...............................................12 ...............................................19 ...............................................26 12,942 12,982 13,039 12,894 12,875 12,870 13,005 12,990 12,844 12,829 72 -2 3 49 50 46 96 95 170 95 120 -2 4 -1 1 8 -1 2 1 -4 5 -7 4 12,660 12,581 12,646 12,636 12,704 12,478 12,442 12,464 12,519 12,551 182 139 182 117 153 112 118 136 176 272 70 21 46 -5 9 -1 1 9 Total held Required Excess 3,140 4,317 6,394 6,689 1,951 3,014 5,976 6,458 1,188 1,303 418 232 1 96 50 7,950 9,056 10,081 10,990 10,970 11,548 7,851 8,989 10,031 10,900 10,964 11,506 100 67 50 90 6 42 20 228 105 270 479 264 11,871 12,115 12,069 12,106 12,198 11,883 12,077 12,050 12,041 12,233 -1 2 38 19 65 -3 5 12,954 12,578 12,559 12,820 12,874 12,746 12,849 13,007 12,941 12,573 12,533 12,804 12,898 12,739 12,890 12,908 12,094 11,856 11,883 11,798 ..............................1939—Dec. ..............................1945—Dec. ..............................1950—Dec. ..............................1960—Dec. ..............................1968— Dec. ..............................1970—Dec. ............................... 1972__ Jan. ............................................July W eek ending 57 i Beginning Sept. 12, 1968, am ount is based on close-of-business figures for reserve period 2 weeks previous to report date. N ote .—Averages o f daily figures. M onthly data are averages of daily figures within the calendar m onth; they are not averages of the 4 or 5 weeks ending on Wed. that fall within the month. Beginning w ith Jan. 1964 reserves are estimated except for weekly averages. ............................................... 8 ............................................... 22 Apr. 5 ............................................... 12 ...............................................19 ............................................... 26 ............................................... 9 ...............................................16 ...............................................23^ ...............................................30* Total reserves held: Based on figures at close o f business through Nov. 1959; thereafter on closing figures for balances with F.R . Banks and open ing figures for allowable cash; see also note 3 to preceding table. Required reserves: Based on deposits as o f opening o f business each day. Borrowings at F.R. Banks: Based on closing figures, A 8 MAJOR RESERVE CITY BANKS □ SEPTEMBER 1972 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Less- Reporting banks and week ending— N e t- Gross transactions N et transactions Per cent of Surplus or avg. required deficit reserves Pur chases Sales Total tw o-w ay trans actions2 -4,678 -6,340 -5,548 -5,304 34.0 46.5 39.5 38.4 11,315 12,440 12,117 11,856 6,580 6,035 6,534 6,597 5,211 7,016 6,959 7,067 5,766 -5,389 -7,027 -6,982 -7,139 -5,870 39.1 50.8 50.3 52.5 43.3 11.724 13,343 13.724 13,524 12,357 -2,673 -3,176 -2,846 -3,230 49.2 60.2 51.4 59.2 Excess Borre serves 1 rowings at F.R. Banks Net inter bank Federal funds trans. 113 30 64 4,735 6,405 5,583 5,259 213 77 96 79 166 Related transactions with U.S. Govt, securities dealers Interbank Federal funds transactions Bor row ings from dealers4 Pur chases o f net buying banks Sales o f net selling banks Loans to dealers 3 3,952 4,018 3,965 3,921 7,363 8,423 8,152 7,935 2,628 2,018 2,569 2,675 1,707 1,721 1,293 1,592 437 344 526 513 1,270 1,377 768 1,079 6,513 6,327 6,765 6,457 6,590 4,320 4,173 4,468 4,680 4,426 7,404 9,170 9,256 8,844 7,931 2,193 2,153 2,297 1,777 2,164 1,650 1,943 2,148 1,873 1,624 548 659 644 415 328 1,102 3,442 3,824 3,693 3,886 728 609 817 663 710 609 743 663 2,732 3,215 2,950 3,224 1,182 1,268 854 1,138 58 53 49 43 1,124 1,215 805 1,096 1,158 1,411 1,610 47 51 72 N et loans Total—46 banks 1972—July August 5.... 1 2 .... 19.... 26.... 170 2 ----9.... 16.... 23.... 30.... 35 67 73 66 65 19 8 62 1,284 1,504 1,458 1,296 8 in New York City 1972—July August 5.... 1 2 .... 19.... 26.... 83 39 30 17 42 23 2,713 3,215 2,876 3,224 2 ----9.... 16.... 23.... 30.... 18 132 39 69 79 85 2,621 4,334 4,359 3,742 3,297 -2,736 -4,353 -4,375 -3,859 -3,321 50.7 80.9 80.2 72.9 63.2 3,590 4,985 4,978 4,489 4,075 969 651 619 747 778 969 650 619 747 758 2,621 4,334 4,359 3,742 3,317 21 1,247 3,190 2,707 2,035 2,022 -2,005 -3,163 -2,702 -2,075 24.1 37.8 31.7 24.8 7,874 8,616 8,424 7,970 5,852 5,426 5,717 5,935 3,242 3,409 3,222 3,259 4,631 5,208 5,202 4,711 2,609 2,018 2,496 2,675 -2,654 -2 ,6 7 4 -2 ,6 0 7 -3 ,2 8 0 -2 ,5 5 0 31.7 31.6 30.9 39.5 30.8 8,134 8,358 8,746 9,035 8,282 5,544 5,676 6,145 5,710 5,812 3,352 3,523 3,849 3,934 3,668 4,782 4,835 82 2,590 2,682 2,600 3,324 2,470 26 1,614 1,926 1,555 1,458 -1,584 -1,919 -1,558 -1,481 115.1 141.3 111 .4 108.7 2,166 2,524 2,298 2,154 552 598 743 696 1,551 1,658 1,708 1,522 1,130 -1,564 -1,687 -1,703 -1,515 -1,131 114.2 2,264 2,403 2,424 2,372 408 1,264 1,152 577 -4 2 0 -1,244 -1,143 -5 9 4 1,039 1,024 892 1,803 1,340 -1,090 -9 8 6 -9 0 4 -1,765 -1 ,4 1 9 20 52 -3 7 61 1,111 68 64 1,360 1,538 1,152 1,183 525 453 439 454 379 291 477 470 146 162 -3 8 -1 7 4,614 2,193 2,153 2,297 1,777 2,144 492 533 538 653 377 501 608 572 347 264 -9 -7 6 -3 4 306 113 528 585 649 590 1,638 1,939 1,649 1,564 24 13 94 106 259 291 203 214 259 291 203 214 620 702 678 802 869 1,644 1,701 1,746 1,570 1,233 93 43 38 48 103 235 291 295 235 291 295 161 161 1,220 38 outside New York City 1972—July August 70 5.... 1 2 . .. . 19.... 26.... 2.... 9.... 16.... 23.... 30.... 30 41 17 46 20 45 2 81 38 27 ’5’ioi 5 in City o f Chicago 1972—July August 30 7 5.... 1 2 ... . 19.... 26.... -3 2.... 9.... 16. .. . 23.... 30.... -2 58 6 7 -1 3 83.6 2,102 713 745 716 850 973 6.1 5,708 6,092 6,126 5,816 5,300 4,828 4,974 5,239 2,714 2,824 2,573 2,668 2,993 3,269 3,553 3,148 2,586 2,005 2,402 2,570 266 162 237 240 379 291 477 470 -113 -130 -240 -230 15.6 14.0 5,870 5,955 6,322 6,663 6,180 4,831 4,931 5,430 4,860 4,840 2,732 2,821 3,171 3,131 2,799 3,138 3,135 3,151 3,532 3,381 2,099 257 241 243 443 216 501 608 572 347 264 -244 -367 -329 96 -4 8 121.6 122.8 111.6 210 210 33 others 1972—July August 5.... 1 2 . .. . 1 9. . . . 26.... 58 20 38 -2 2 ----9.... 16.... 23.... 30.... -1 9 41 15 38 3 70 17.8 16.1 8.5 12.8 25.4 20.5 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 o f all carry over reserves. 2 Derived from averages for individual banks for entire week. Figure for each bank indicates extent to which the bank’s weekly average pur chases and sales are offsetting. 3 Federal funds loaned, net funds supplied to each dealer by clearing 2,110 2,259 1,729 2,040 banks, repurchase agreements (purchases o f 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 o f securities to dealers subject to repurchase), resale agreements, and borrowings secured by Govt, or other issues. N o t e .—Weekly averages o f daily figures. F or description o f series and back data, see Aug. 1964 B u l l e t in , pp. 944-74. SEPTEMBER 1972 □ F.R. BANK INTEREST RATES A 9 CURRENT RATES (Per cent per annum) Loans to member banks U nder Secs. 13 and 13a 1 Loans to all others under last par. Sec. 133 Under Sec. 10(b)* Federal Reserve Bank Rate on Aug. 31, 1972 Boston.................................................. New Y o rk ........................................... Philadelphia........................................ Cleveland............................................. Richm ond............................................ A tla n ta ................................................. Chicago................................................ St. Louis.............................................. M inneapolis........................................ K ansas C ity ........................................ D allas................................................... San Francisco.................................... Effective date Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 4Vi 4Vi 4Vi 4% 4Vi 4Vi 41/2 4Vi 4Vi 4Vi 4Vi 41/2 13, 17, 17, 17, 24, 23, 17, 13, 23, 13, 24, 13, Previous rate R ate on Aug. 31, 1972 4 V4 4% 434 434 434 434 4!4 434 434 434 434 434 5 5 5 5 5 5 5 5 5 5 5 5 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 Effective date Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 13, 17, 17, 17, 24, 23, 17, 13, 23, 13, 24, 13, 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 Previous rate R ate on Aug. 31, 1972 5V4 51,4 5V4 514 5Vi 5V4 514 514 514 514 514 514 6Vi 6Vi 6 Vi 6% 6Vi 6^ 6i/i 6Vi 6 Vi 6Vi 6Vi 6Vi Effective date Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 13, 17, 17, 17, 24, 23, 17, 13, 23, 13, 24, 13, 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 Previous rate 634 634 634 6*4 634 634 634 634 634 634 634 634 1 Discounts o f eligible paper and advances secured by such paper or by 2 Advances secured to the satisfaction o f the F.R . Bank. M aximum U.S. Govt, obligations or any other obligations eligible for F.R. Bank m aturity: 4 months. purchase. M aximum m aturity: 90 days except th at discounts o f certain 3 Advances to individuals, partnerships, or corporations other than bankers’ acceptances and o f agricultural paper may have maturities not member banks secured by direct obligations of, or obligations fully over 6 months and 9 m onths, respectively. guaranteed as to principal and interest by, the U.S. Govt, or any agency thereof. M aximum m aturity: 90 days. SUMMARY OF EARLIER CHANGES (Per cent per annum) Effective date Range (or level)— All F.R. Banks F.R . Bank of N .Y . In effect Dec. 31, 1954 Wi 1 Vi 1955—Apr. 14............. 15............. M ay 2 ............. Aug. 4 ............. W2-IV4 11/2 m -W 4 iy 4 l% -2% W4-2V4 2 -2 % 2 -2V4 1% 1% 1 34 21/4-21/2 2Vi 2 2 2V4 2V4 21/2 21/2 1956— Apr. 13............. 20............. Aug. 24 ............. 31............. 2Vi-3 2V4-3 2V4-3 3 2V4 2V4 3 3 1957—Aug. 9 ............. 2 3 Nov. 15............. Dec. 2 ............. 3 - 31/2 3i/i 3 -3i/i 3 3 31/2 3 3 1958—Jan. 22............. 2 4 M ar. 7 ............. 13............. 21............. A pr. 18............. M ay 9 ............. Aug. 15............. Sept. 12............. 23............. Oct. 2 4 ............. Nov. 7 ............. 234-3 2 ^ -3 21^-3 2 l/4-2Y4 3 2% 2% 2% 2V4 Y.Y.'.Y. 9 ............. 13............. Nov. 18............. 23............. m Sept. 2V4 Effective date 1959—M ar. 6 16 M ay 29 June 12 Sept. 11 18 1960—June 3 10, 14, Aug. 12, Sept. 9, 1963—July 17, 26, 134-214 iy 4 134-2 1 3 /4 -2 2 2 -2Vi 21/2 iy4 1% 1% 2 2 2 21/i 1965—Dec. 3 Vi-4 3 Vi-4 3Vi 3 -3 Vi 3 3 -3 Vi 31/2 3Vi-4 4 4 7, 14, Nov. 20, 27, 4 1968—M ar. 15 22, Apr. 19 26 Aug. 16 30 Dec. 18 20 F.R. Bank of N.Y. 3 3 3Vi 3% 4 4 4 3Vi 3* Effective date 4 6 6 1970—Nov. 11..................... 13..................... 16..................... Dec. 1..................... 4 ..................... 11..................... 534-6 534-6 534 5 Vi-5 34 5Vi-534 51/i 6 534 534 534 5Vi 51/2 3V i 1971—Jan. 5i4-5V i 514 5 -514 5 -514 5 4 34 - 5 434 434-5 5 434-5 434 4Vi-434 4i/i-434 41/2 514 514 514 5 5 5 434 5 5 5 434 434 4Vi 41/4 4Vi 41/2 31/2 4 4 41/2 41/2 - 41/2 4 4 4Vi 41/2 -4 Vi 4Vi 4Vi-5 5 5 -51/2 51/2 5 V4-5 Vi 5% 514-51/2 5 Vi F.R . Bank of N.Y . 4 ..................... 8..................... 3 -4 Vi 4% 4 R ange (or level)— All F.R . Banks 5 Vi-6 6 1969—Apr. Feb. 6, 13. N o t e . —Rates under Secs. 13 and 13a (as described in table and notes above). F o r data before 1955, see Banking and Monetary Statistics , 1943, pp. 439-42, and Supplement to Section 12, p. 31. 2i/i-3 3 3 -3 Vi 31/2 3 Vi-4 4 1964—Nov. 24, 30 1967—Apr. 2V4 Range (or level)All F.R. Banks 4Vi 5 5 Vi 51/2 5Vi 5Va 51/2 5Vi July Nov. Dec. 8 ..................... 15..................... 19..................... 22...................... 29...................... 13..................... 19..................... 16..................... 2 3 ..................... 11..................... 19..................... 13..................... 17..................... 24 ..................... In effect Aug. 31, 1972........ A 10 RESERVE AND MARGIN REQUIREMENTS □ SEPTEMBER 1972 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent o f deposits) Beginning July 14, 1966 Dec. 31, 1949, through July 13, 1966 N et demand deposits 2, 7 Central reserve city banks Re serve city banks Coun try banks Time depos its (all classes of banks) In effect Dec. 31, 1949......... 22 18 12 5 1951—Jan. Jan. 1953—j uiy 1954—June July 1958—Feb. M ar. Apr. A pr 1960—Sept. Nov. Dec 1962—July 23 24 22 21 20 191/2 19 I 8I/2 18 171/2 19 20 19 13 14 13 6 Effective date 1 1 1 ,1 6 ................. 25, Feb. 1 . . . . 9} i ................... 24, 16................. 29, Aug. 1 . .. . 27, M ar. 1 . . . . 20, Apr. 1 . . . . 17........................ 24 . . . . 1....................... 24 ....................... 1 28....................... N et dem and deposits 2, 4, 7 Reserve city banks Effective date 1 1966—July 1 4 ,2 1 ........ Sept. 8, 15........ 12 H i/i 11 64 « 12 6 16i/i Sav ings depos its 1967—M ar. 2 ............... Mar. 16............... 1968—Jan. 1 1 ,1 8 ........ 16i/i 17 12 12i/i 1969—Apr. 17............... 17 171/2 12i/i 13 17 171/i 12i/i 13 12 In effect Aug. 31, 1972. 4 Present legal requirement: M inim um .................... M axim um ................... 1 W hen two dates are shown, the first applies to the change at central reserve or reserve city banks and the second to the change at country banks. For changes prior to 1950 see Board’s Annual Reports. 2 D em and deposits subject to reserve requirements are gross demand deposits minus cash items in process o f collection and demand balances due from domestic banks. 3 Authority o f the Board o f Governors to classify or reclassify cities as central reserve cities was term inated effective July 28, 1962. 4 Since Oct. 16, 1969, member banks have been required under Regula tion M to maintain reserves against balances above a specified base due from domestic offices to their foreign branches. Effective Jan. 7, 1971, the applicable reserve percentage was increased from the original 10 per cent to 20 per cent. Regulation D imposes a similar reserve requirement on bor rowings above a specified base from foreign banks by domestic offices On margin stocks 3 5 3 10 3 10 3 10 5 10 22 7 14 o f a member bank. F or details concerning these requirements, see Regula tions D and M and appropriate supplements and amendments thereto. 5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation club accounts became subject to same requirements as savings deposits. 6 See preceding columns for earliest effective date o f this rate. 7 For amendment to Regulation D which will change structure o f member bank reserve requirements effective with the weekly period begin ning Sept. 21, 1972, see “Announcements” beginning on p. 679 o f the July 1972 B u l l e t i n . N o t e . —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 o f 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. On convertible bonds Ending date 1968—Mar. 11 June June 8 1970—M ay 1970—May 6 1971—Dec. Effective Dec. 6, 1971 , 4, 4, 20, 31 , 29, 16, 19, 3, 22 15, 4 15 27 9 5 10 7 5 3 On short sales (T) 40 50 75 100 75 50 75 50 60 70 50 70 90 70 50 70 50 50 75 100 75 50 75 50 60 70 50 70 90 70 50 70 70 80 65 55 50 60 50 50 70 80 65 55 N o t e . —Regulations G, T, and U , prescribed in accordance with the Securities Exchange Act o f 1934, limit the am ount o f credit to purchase and carry margin stocks th at may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage o f the m arket value o f the collateral at the time the credit is extended; margin requirements are the difference between the m arket 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 o f Governors effective M ar. 11, 1968. 5 6 3 For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) 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.. 64 3^ 3 (Per cent o f market value) 1937—Nov. 1 1945—Feb. 5 5 July 21 1946—Jan. 1 1947— Feb. 1949—M ar. 30 17 1951—Jan. 1953— Feb. 20 4 1955—Jan. Apr. 23 1958—Jan. 16 Aug. 5 Oct. 16 1960—July 28 1962—July 10 1963—Nov. 6 Under Over $5 mil $5 mil lion lion 3 Vi 3 MARGIN REQUIREMENTS Beginning date O ther time deposits 1970—Oct. 1................... 16Vi I 6I/2 ( 3) Country banks U nder Over U nder Over $5 mil $5 mil $5 mil $5 mil lion lion lion lion 5 18 171/i 17 Time deposits 4.5 (all classes o f banks) SEPTEMBER 1972 □ MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) R ates Jan. 1, 1962—July 19, 1966 R ates beginning July 20, 1966 Effective date Type o f deposit Jan. 1, 1962 July 17, 1963 4 3% 4 3V4 Savings deposits: 1 12 m onths or m o re . . , Less than 12 m onths. O ther time deposits: 2 12 m onths o r m o r e .. . , 6 m onths to 12 months 90 days to 6 m o n th s.. . Less than 90 days.......... (30-89 days) 4 3% 2% 1 Nov. 24, 1964 Effective date Dec. 6, 1965 4% 5% 4 1 Closing date for the Postal Savings System was M ar. 28, 1966. M ax imum rates on postal savings accounts coincided with those on savings deposits. 2 F o r exceptions with respect to certain foreign time deposits, see B u l l e t i n s for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, p. 167. 3 M ultiple-maturity time deposits include deposits that are autom ati cally renewable at m aturity without action by the depositor and deposits that are payable after written notice o f withdrawal. 4 The rates in effect beginning Jan. 21 through June 23, 1970, were 6 l/4 per cent on maturities o f 30-59 days and 6 Vi per cent on maturities of Type of deposit July 20, 1966 Savings deposits............... O ther time deposits:2 M ultiple m aturity:3 30-89 days............ 90 days-1 y e a r ... 1 year to 2 years.. 2 years and over.. Single-m aturity: Less than $100,000: 30 days to 1 y e a r .. 1 year to 2 years. . 2 years and o v e r. . $100,000 and over: 30-59 days........... 60-89 days............ 90-179 d ays......... 180 days to 1 year. 1 year or m o re . . . Sept. 26, 1966 Apr. 19, 1968 Jan. 21, 1970 4% 4 4% 5 5 5^ 5V4 5 Vi 5 5% 5Y4 5% 5V4 6 W /4 5V2 ( 4) ( 4) 6V4 7 m 60-89 days. Effective June 24, 1970, maximum interest rates on these maturities were suspended until further notice. N o t e . —M aximum rates that may be paid by member banks are estab lished by the Board o f Governors under provisions o f Regulation Q ; however, a member bank may not pay a rate in excess o f the maximum rate payable by State banks or trust companies on like deposits under the laws o f the State in which the member bank is located. Beginning Feb. 1, 1936, maximum rates that may be paid by nonm em ber insured commercial banks, as established by the FD IC , have been the same as those in effect for member banks. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions o f dollars) Reserve city banks All member banks Item New York City City of Chicago Reserve city banks Country banks Item O ther All member banks Four weeks ending June 14, 1972 G ross demand—T o ta l. Interb an k ................... U.S. G ovt.................. O ther........................... N et demand i ............... T im e................................ D em and balances due from domestic banks Currency and c o in . . . . Balances with F.R. B anks.......................... Total reserves h e ld . . . . Required..................... Excess......................... 196,077 25,252 6,142 164,682 149,937 224,607 41,147 11,481 948 28,718 26,506 27,779 8,108 1,360 252 6,496 6,429 8,170 13,424 5,468 3,616 442 147 103 27,171 32,639 32,485 154 5,531 5,973 5,962 11 1,387 1,490 1,492 -2 City of Chicago C ountry banks O ther F our weeks ending July 12, 1972 70,345 76,477 Gross demand—T o ta l.. In te rb a n k .................... 9,314 3,097 U.S. G ovt................... 2,481 2,461 O th er........................... 58,550 70,919 53,178 63,825 Net demand i ................ 81,710 106,947 Tim e................................. Demand balances due 6,936 from domestic banks. 2,725 1,716 3,206 Currency and coin........ Balances with F.R. B anks........................... 11,145 9,109 12,861 12,315 Total reserves held........ Required...................... 12,850 12,182 11 133 Excess.......................... i Dem and deposits subject to reserve requirements are gross demand deposits minus cash items in process o f collection and demand balances due from domestic banks. New Y ork City 202,732 26,670 6,434 169,629 153,361 225,532 43,143 12,169 996 29,979 27,666 27,702 8,156 1,414 238 6,505 6,420 8,493 13,955 5,583 3,619 458 132 109 2,869 1,743 7,335 3,271 27,114 32,697 32,475 222 5,548 6,006 5,968 38 1,388 1,497 1,491 6 11,033 12,776 12,751 25 9,147 12,418 12,265 153 Note.—Averages of daily figures, close of business. 72,656 78,778 9,778 3,309 2,730 2,471 60,148 72,997 54,160 65,116 81,709 107,628 A 12 FEDERAL RESERVE BANKS □ SEPTEMBER 1972 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month 1972 Item Aug. 30 Aug. 23 Aug. 16 10,303 400 10,303 400 10,303 400 1972 Aug. 9 Aug. 2 Aug. 31 1971 July 31 Aug. 31 Assets Gold certificate acco u n t.................................... Special Drawing Rights certificate account. C ash........................................................... Loans: M ember bank borrow ings............... O th e r..................................................... Acceptances: Bought o u trig h t.................................. Held under repurchase agreements. Federal agency obligations: Bought outright................................... Held under repurchase agreem ents. U.S. Govt, securities: Bought outright: B ills.............................. Certificates—Special. O th e r.. N o tes........................... Bonds......................... Total bought o utright....................... H eld under repurchase agreements. Total U.S. Govt, securities. 10,303 400 10,303 400 10,303 400 10,303 400 9,875 400 324 328 325 323 322 327 324 280 1,330 878 535 842 1,271 1,091 83 858 67 58 67 68 77 65 97 63 55 66 30 63 52 55 1,076 118 1,169 1,169 29 1,169 3 1,041 48 1,076 74 1,079 30,099 29,581 30,764 30,686 30,725 29,814 30,724 28,937 36,703 3,511 36,703 3,511 36,607 3,491 36,596 3,502 36,596 3,502 36,703 3,511 36,596 3,502 34,513 3,185 i 70.313 '526 1-269,795 i 70,862 649 i 70,784 609 i 70,823 632 i 70,028 712 i 70,822 66,635 233 69 70,839 69,795 71,511 71,393 71,455 70,740 70,822 66,868 Total loans and securities..................... Cash items in process o f collection. . . Bank prem ises......................................... O ther assets: D enom inated in foreign currencies. IM F gold deposited 3 ....................... All o th e r............................................... 73,488 *10,526 164 71,909 *1 1,182 165 73,389 *13,382 164 73,569 *11,204 164 73,933 *11,930 164 73,077 *9,948 164 72,047 9,968 164 67,902 9,232 142 Total assets. *95,807 34 25 14 14 7 34 7 568 ‘537' 498 "1,142 i ' 062 ’576 ^097 23 144 477 *98,475 *97,119 *98,121 *94,829 94,310 88,475 54,897 51,887 26,185 2,298 160 25,467 987 122 *94,849 Liabilities F.R . notes.............................................. D eposits: M ember bank reserves.................... U.S. Treasurer—General account. F o reig n ............................................... O ther: IM F gold deposited 3 ................. All o th e r........................................ 55,145 55,160 55,408 55,430 55,102 55,120 *28,611 1,406 168 *26,908 1,919 187 *28,426 1,792 171 *28,224 2,473 156 *29,080 2,137 168 *28,198 1,727 192 562 690 592 Total deposits. 144 525 *30,787 *29,587 *31,047 *31,415 *32,075 *30,709 29,263 27,245 Deferred availability cash item s............ O ther liabilities and accrued dividends. 7,473 577 7,787 554 9,754 570 8,069 573 8,524 575 6,580 587 7,744 577 6,982 617 Total liabilities.......................................... *93,982 *93,088 *96,779 *95,487 *96,276 *92,996 92,481 86,731 C apital paid in ................................................................... Surplus................................................................................. O ther capital accounts..................................................... 778 742 305 777 742 242 775 742 179 775 742 115 773 742 330 778 742 313 775 742 312 731 702 311 Total liabilities and capital accounts............................ *95,807 *94,849 *98,475 *97,119 *98,121 *94,829 94,310 88,475 Capital accounts Contingent liability on acceptances purchased for foreign correspondents................................................ M arketable U.S. Govt, securities held in custody for foreign and international accounts........................ 287 286 267 265 263 287 263 245 30,551 30,671 30,580 30,260 29,923 30,337 29,804 20,351 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R . notes outstanding (issued to B ank)....................... Collateral held against notes outstanding: Gold certificate acco un t................................................ U.S. Govt, securities....................................................... 59,047 59,105 59,021 58,917 58,854 59,088 58,917 55,161 1,945 58,365 1,945 58,365 1,945 58,165 1,945 58,065 1,945 58,055 1,945 58,365 1,945 58,055 3,190 53,440 Total collateral..................................................................... 60,310 60,310 60,110 60,010 60,000 60,310 60,000 56,630 1 See note 6 on p. A-5. 2 See note 7 on p. A-5. 3 See note 1(b) to table at top of p. A-77. SEPTEMBER 1972 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON AUGUST 31, 1972 (In millions o f dollars) Item Total Boston New York Phila del phia Cleve land Rich mond A tlan ta Chi cago an M inne Ksas apolis City St. Louis Dallas San Fran cisco Assets Special Drawing Rights certif. acct.. . . L oans: Secured by U.S. G ovt, and agency A cceptances: Held under repurchase agreem ents.. Federal agency obligations: Bought outright................................... Held under repurchase agreem ents.. U.S. G ovt, securities: H eld under repurchase agreem ents.. 10,303 400 1,227 327 593 23 188 18 2,182 93 219 25 734 23 53 12 876 33 55 36 796 36 119 40 413 22 243 36 2,129 70 55 45 392 15 38 19 156 7 36 7 475 15 70 38 513 14 50 14 1,044 49 101 37 1,091 135 744 1 6 58 46 72 5 3 2 5 14 66 30 66 30 1,076 74 48 277 74 57 83 80 58 173 40 22 44 49 145 170,028 712 3,135 17,996 712 3,719 5,378 5,204 3,803 11,259 2,613 1,408 2,883 3,180 9,450 73,077 3,318 19,899 3,777 5,467 5,342 3,907 11,504 2,658 1,433 2,929 3,234 9,609 C ash items in process o f collection. . . 13,404 164 781 2 2,228 8 794 4 933 28 1,107 13 1,481 16 2,059 17 694 15 524 25 905 17 874 12 1,024 7 O ther assets: D enom inated in foreign currencies.. All o th e r............................................... 34 576 2 49 29 168 2 28 3 37 2 40 2 28 5 75 1 19 1 12 1 21 2 23 4 76 T otal assets............................................... 99,512 4,974 24,831 5,427 7,468 7,495 6,148 15,959 3,851 2,201 4,471 4,736 11,951 Liabilities F.R . n o tes................................................. D eposits: Member bank reserves....................... U.S. Treasurer—General account.. Foreign.................................................. O ther: All o th e r........................................... 56,347 2,955 14,000 3,327 4,480 4,931 2,841 9,603 2,191 975 2,195 2,172 6,677 28,198 1,727 192 1,144 80 7 7,543 468 3 74 1,323 79 8 1,853 129 14 1,455 122 8 1,862 127 11 4,146 121 24 965 80 5 655 91 4 1,294 156 7 1,722 76 9 4,236 198 21 592 3 531 4 1 15 5 3 1 2 3 24 Total deposits.......................................... 30,709 1,234 8,616 1,414 1,997 1,600 2,005 4,294 1,051 750 1,459 1,810 4,479 Deferred availability cash item s.......... O ther liabilities and accrued dividends 10,036 587 678 27 1,572 167 562 31 783 44 821 41 1,149 33 1,687 90 526 21 424 12 717 22 633 25 484 74 Total liabilities........................................ 97,679 4,894 24,355 5,334 7,304 7,393 6,028 15,674 3,789 2,161 4,393 4,640 11,714 201 193 82 39 38 16 71 68 25 41 38 23 54 50 16 120 111 54 26 25 11 18 17 5 33 32 13 42 41 13 99 95 43 4,974 24,831 5,427 7,468 7,495 6,148 15,959 3,851 2,201 4,471 4,736 11,951 15 26 15 19 43 10 6 12 16 37 7,134 Capital accounts C apital paid i n ........................................ Surplus....................................................... O ther capital accounts........................... 778 742 313 Total liabilities and capital a cc o u n ts.. 99,512 Contingent liability on acceptances purchased for foreign correspond en ts......................................................... 287 34 34 12 13 4 75 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R . notes outstanding (issued to B an k )................................................. Collateral held against notes out standing : Gold certificate a cco u n t.................... U.S. G ovt, securities......................... Total collateral........................................ 59,088 3,167 14,730 3,406 4,655 5,129 3,072 9,871 2,308 1,017 2,289 2,310 1,945 58,365 150 3,050 14,850 300 3,250 350 4,400 285 4,915 3,150 700 9,300 155 2,230 1,040 2,400 5 2,380 7,400 60,310 3,200 3,550 4,750 5,200 3,150 10,000 2,385 1,040 2,400 2,385 7,400 14,850 1 See note 6 on page A-5. 2 After deducting $25 million participations o f other Federal Reserve Banks. 3 After deducting $118 million participations o f other Federal Reserve Banks. 4 After deducting $212 million participations o f other Federal Reserve Banks. N o t e . — Some figures for cash items in process o f collection and for member bank reserves are preliminary. A 14 OPEN MARKET ACCOUNT □ SEPTEMBER 1972 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity Total Treasury bills Others within 1 year 1-5 years M onth Gross pu r chases Gross sales 1971—July. Aug. Sept. Oct.. Nov. Dec. 2,067 1,818 2,102 772 1,883 3,160 1,617 1,024 1,088 1,133 1,070 1,981 1972—Jan.. Feb. Mar. Apr. May June July. 915 2,036 2,009 2,666 475 1,294 2,753 248 3,481 298 1,478 291 335 3,286 Redemp tions 127 83 ’266’ 110 410 155 135 96 Gross pur chases Gross sales 2,067 1,709 1,818 772 1,129 3,055 1,617 1,024 1,088 1,133 1,070 1,981 499 1,894 1,829 2,254 475 1,094 2,753 248 3,481 298 1,478 291 335 3,286 Redemp tions 1971—July, A ug.. S ept.. O ct... N ov.. D ec.. 1972—J a n .. Feb.. M ar.. A pr.. M ay. June. Ju ly . Gross sales 16 34 -5 4 7 267 67 1,920 191 52 31 126 - 2 ,2 6 0 Gross pur chases Gross sales Exch. or ma turity shifts 14 58 6 150 23 8 47 23. 20 109 Exch. Gross sales m aturity shifts 46 991 104 84 189 -4 4 4 -1 0 4 ’266* 24 11 -3,548 130 406 21 1,478 -1 3 0 110 410 155 133 16 10 11 7 1,301 187 73 92 255 959 Repurchase agreements (U.S. Govt, securities) Over 10 years Exch. or ma turity shifts Gross pur chases 83 -2 2,626 -9 0 N et change in U.S. Govt, secur ities M onth Gross pur chases Exch., m aturity shifts, or redemp tions Gross sales 127 I O utright transactions in U.S. Govt, securities—Continued 5-10 years Gross pur chases Gross pur chases Gross sales 3,044 2,184 3,697 2,616 5,003 4,830 3,044 1,951 3,930 2,616 5,003 3,607 323 1,027 698 -3 6 1 613 2,401 4,722 1,694 2,695 2,625 1,115 211 1,736 5,945 1,694 2,022 3,298 -6 6 6 - 1 ,8 5 4 2,229 380 1,299 -2 5 1 -5 3 3 1 Net change in U.S. Govt, securities, Federal agency obligations, and bankers’ acceptances. 1,326 1,736 Federal agency obligations (net) Outj right 61 35 244 145 165 77 83 169 -2*626 69 R epur chase agree ments 69 -6 9 101 -1 0 1 16 -1 6 25 -25 + 127 -2 6 Bankers* acceptances O ut right, net -7 -3 -1 1 6 22 -4 -1 2 19 1 -4 -6 -1 0 U nder repur chase agree ments, net 55 -55 181 -1 8 1 61 -6 1 65 -6 5 Net change1 316 1,148 634 -3 2 6 862 2,850 -7 8 7 - 1 ,7 8 9 2,408 472 1,386 -221 -5 7 0 N o t e . —Sales, redemptions, and negative figures reduce System hold ings ; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions o f U.S. dollar equivalent) 1968— Dec., 1969—Dec.. 1970—Dec., 2,061 1,967 257 1,444 1,575 154 1971— May, June, July. Aug. Sept. O ct.. Nov. Dec. 94 96 23 23 23 30 15 18 87 87 12 12 12 12 2 2 1972—Jan.. Feb. Mar. Apr. May 17 17 17 17 57 2 2 2 2 2 Canadian dollars French francs Pounds sterling A ustrian schillings Belgian francs D anish kroner Total End o f period 433 199 G erm an m arks 165 60 98 Italian lire Japanese yen N ether lands guilders Swiss francs 1 125 8 8 8 8 50 SEPTEMBER 1972 □ FEDERAL RESERVE BANKS; BANK DEBITS A 15 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions o f dollars) W ednesday End o f m onth 1972 Item Aug. 30 1972 1971 Aug. 23 Aug. 16 Aug. 9 Aug. 2 Aug. 31 July 31 Aug. 31 1,330 1,330 878 878 535 534 1 843 842 1 1,273 1,272 1 1,091 1,090 1 83 81 2 858 857 1 125 77 48 67 24 43 145 102 43 162 114 48 118 74 44 96 48 48 63 17 46 107 67 40 U.S. Government securities—T o tal................................. Within 15 days1................................................................ 16 days to 90 days........................................................... 91 days to 1 y e ar............................................................. Over 1 year to 5 years.................................................... Over 5 years to 10 years................................................. Over 10 years.................................................................... 70,839 4,999 14,420 18,945 24,859 6,102 1,514 69,795 3,707 14,477 19,136 24,859 6,102 1,514 71,511 5,275 14,492 19,385 24,781 6,079 1,499 71,393 6,051 15,100 18,972 24,108 5,913 1,249 71,455 6,175 15,089 18,921 24,108 5,913 1,249 70,740 3,212 14,497 20,556 24,859 6,102 1,514 70,822 4,209 15,726 19,617 24,108 5,913 1,249 66,868 2,542 18,904 15,904 23,240 5,377 901 Federal agency obligations—T o tal.................................. W ithin 15 days1............................................................... 16 days to 90 d ay s........................................................... 91 days to 1 y e ar............................................................. Over 1 year to 5 years.................................................... Over 5 years to 10 years................................................ Over 10 years................................................................... 1,194 152 31 117 519 227 148 1,169 44 67 149 534 227 148 1,198 30 110 149 534 227 148 1,172 3 111 149 534 227 148 1,089 48 99 146 475 197 124 1,150 109 30 117 519 227 148 1,079 38 99 146 475 197 124 69 69 W ithin 15 days.................................................................. 16 days to 90 days........................................................... 91 days to 1 y e a r...................................... ....................... Acceptances—T otal............................................................. W ithin 15 days.................................................................. 91 days to 1 y e ar.............................................................. 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum m aturity o f the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 (billions of dollars) Turnover o f demand deposits Period 6 others2 Total 232 SMSA’s (excl. N.Y.) 226 other SMSA’s Total 233 SMSA’s N.Y. 5 ,210.2 5,408.9 5,570.3 5,755.8 5,918.9 5,523.3 2 ,6 8 1 .0 2 ,7 8 3 .7 2 ,7 5 7 .5 2 ,6 8 3 .2 2 ,9 4 5 .2 2 ,859.8 6 ,493.6 6,684.8 6,631.9 6,465.6 6,996.9 6,859.9 3,812.6 3,901.2 3,874.4 3,782.5 4 ,051.6 4,000.2 80.0 81.6 82.2 82.6 86.4 83.7 5 ,687.0 6,013.9 5,631.4 5,801.4 5,939.2 5,780.8 5,633.0 2,803.1 2,913.1 2,932.9 3,053.1 3,148.8 3,096.4 2,996.3 6,843.7 7,013.9 7,154.2 ’•7,367.9 r7,461.1 H , 500.7 7,367.1 4,040.6 4,100.9 4,22 1 .2 '4 ,3 1 4 .8 '4 ,3 1 2 .2 r4,404.4 4,370.8 83.9 84.5 83.0 85.6 85.6 84.7 82.3 Leading SMSA’s Total 233 SMSA’s N.Y. 11,703.8 12,093.8 12,202.2 12,221.4 12,915.7 12,383.2 L972—Jan ................................... 12,530.7 F eb .................................. 13,027.8 M ar................................. 12,785.5 A pr.................................. ’■13,169.3 M ay ................................ M 3,400.3 J u n e ................................ ’•13,281.6 July................................. 13,000.1 1971—July.............................. A ug................................. Sept................................. O ct................................... N ov................................. D ec.................................. 1 Excludes interbank and U.S. Govt, demand deposit accounts. 2 Boston, Philadelphia, Chicago, D etroit, San Francisco-O akland, and Los Angeles-Long Beach. Leading SMSA’s 6 others2 Total 232 SMSA’s (excl. N.Y.) 226 other SMSA’s 184.4 189.0 190.6 199.5 203.7 196.1 80.4 82.8 82.3 80.0 87.2 85.2 55.0 55.9 55.6 54.3 58.1 57.3 45.0 45.4 45.2 44.2 46.7 46.4 205.3 205.1 195.2 202.1 200.8 199.9 194.4 82.0 82.6 83.3 87.3 89.8 88.1 84.2 56.3 56.2 57.2 58.9 58.7 ’’58.6 57.1 46.2 45.8 47.0 r4 7 .8 46.9 47.5 46.8 N o t e . —Total SMSA’s includes some cities and counties not designated as SMSA’s. F or back data see pp. 634-35 o f July 1972 B u l l e t i n . A 16 U.S. CURRENCY □ SEPTEMBER 1972 DENOMINATIONS IN CIRCULATION (In millions o f dollars) Coin and small denomination currency Total in cir cula tion 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. 1959. 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 8,529 6,617 9,940 6,672 10,476 8,438 9,136 9,326 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. 1961 . 1962. 1963. 1964. 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 9,348 10,935 9,531 11,395 9,983 12,109 10,885 12,717 11,519 2,815 2,869 2,990 3,221 3,381 5,954 6,106 6,448 7,110 7,590 249 242 240 249 248 316 300 293 298 293 3 3 3 3 2 10 10 10 4 4 1965. 1966. 1967. 1968. 1969. 1970. 42,056 44,663 47,226 50,961 53,950 57,093 29,842 31,695 33,468 36,163 37,917 39,639 4,027 4,480 4,918 5,691 6,021 6,281 1,908 2,051 2,035 2,049 2,213 2,310 127 137 136 136 136 136 2,618 2,756 2,850 2,993 3,092 3,161 7,794 8,070 8,366 8,786 8,989 9,170 13,369 14,201 15,162 16,508 17,466 18,581 12,214 12,969 13,758 14,798 16,033 17,454 3,540 8,135 3,700 8,735 3,915 9,311 4,186 10,068 4,499 11,016 4,896 12,084 245 241 240 244 234 215 288 286 285 292 276 252 3 3 3 3 3 3 4 4 4 4 1971--Ju ly ............ 58,558 Aug............ 58,904 Sept............ 58,797 Oct.............. 59,216 Nov............ 60,636 D ec............. 61,068 40,238 40,442 40,284 40,559 41,699 41,831 6,493 6,537 6,556 6,589 6,714 6,775 2,260 2,267 2,273 2,302 2,360 2,408 136 136 135 135 135 135 3,068 3,058 3,053 3,071 3,186 3,273 9,031 9,045 8,987 9,054 9,329 9,348 19,251 18,321 19,398 18,462 19,279 18,514 19,408 18,657 19,975 18,936 19,893 19,237 5,129 12,735 5,162 12,845 5,155 12,906 5,183 13,024 5,272 13,216 5,377 13,414 208 207 206 205 204 203 242 241 240 239 237 237 3 2 2 2 2 2 4 4 4 4 4 4 59,429 59,795 60,388 60,535 61,702 62,201 62,435 40,388 40,725 41,182 41,140 42,056 42,399 42,449 6,774 6,812 6,860 6,902 6,969 7,016 7,052 2,281 2,275 2,279 2,276 2,334 2,328 2,326 135 135 135 135 135 135 135 3,083 3,087 3,106 3,094 3,170 3,178 3,155 8,900 9,010 9,110 9,028 9,243 9,295 9.231 19,215 19,405 19,692 19,705 20,204 20,446 20,550 5,261 13,337 5,257 13,371 5,275 13,490 5,351 13,606 5,425 13,785 5,446 13,923 5,502 14,052 202 201 200 199 198 197 196 235 234 233 232 232 230 229 2 2 2 2 2 2 2 4 4 4 4 4 4 4 End o f period 1972--Ja n .............. Feb............. M ar............ A p r............ M[ay........... J u n e ........... July............ 1 Outside Treasury and F .R . Banks. Before 1955 details are slightly overstated because they include small amounts o f paper currency held by the Treasury and the F .R . Banks for which a denominational breakdown is not available. Large denom ination currency 19,042 19,070 19,205 19,395 19,647 19,803 19,986 $1,000 $5,000 $10,000 4 2 Paper currency only; $1 silver coins reported under coin, N o t e . —Condensed from Statement o f United States Currency and Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement o f United States M oney, issued by Treasury D epartm ent. In millions o f dollars) Held in the Treasury Kind o f currency Total, out standing, As security July 31, against Treasury gold and 1972 cash silver certificates G o ld ........................................................................................ Gold certificates.................................................................... Federal Reserve n o tes......................................................... Treasury currency—T o ta l.................................................. 10,410 (10,303) 58,917 8,095 D o llars................................................................................ Fractional C o in ................................................................ United States notes......................................................... In process o f retirement 3.............................................. 719 6,761 323 292 Total—July 31, 1972........................................................... June 30, 1972.......................................................... July 31, 1971........................................................... 4 77,422 4 76,761 4 72,880 (10,303) (10.303) (10.303) (10,075) 1 Outside Treasury and F.R. Banks. Includes any paper currency held outside the United States and currency and coin held by banks. Esti mated totals for Wed. dates shown in table on p. A-5. 2 Consists o f credits payable in gold certificates, the Gold Certificate Fund—Board o f Governors, FRS. 3 Redeemable from the general fund o f the Treasury. 107 For F.R. Banks and Agents 2 10,302 Currency in circulation 1 H eld by F.R . Banks and Agents 1972 July 31 June 30 July 31 54,771 7,664 54,572 7,629 51,448 7,111 633 6,383 320 292 482 6,011 322 296 125 105 1 4,021 326 31 72 2 49 276 638 6,414 320 292 4,348 3,907 3,760 62,435 337 351 487 10.302 10.302 10,074 1971 62,201 58,558 4 Does not include all items shown, as gold certificates are secured by gold. Duplications are shown in parentheses. N o t e . — Prepared from Statement o f United States Currency and Coin and other data furnished by the Treasury. For explanation o f currency reserves and security features, see the Circulation Statement or the Aug. 1961 B u l l e t i n , p. 936. SEPTEMBER 1972 □ MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted r M onth o r week Mx (Currency plus demand deposits) N ot seasonally adjusted r M2 Ms (Mi plus time (M 2 plus deposits deposits at coml. at nonbank thrift institutions) 2 banks other than large time C D ’s) 1 Mi (Currency plus demand deposits) Mi M% (Mi plus time (M 2 plus deposits deposits at coml. at nonbank thrift banks other than institutions) 2 large tim e C D ’s) 1 1968—D e c 1969—De c 1970—D e c 197.4 203.7 214.8 378.0 386.8 418.2 572.6 588.3 633.9 203.4 209.8 221.2 383.0 392.0 423.5 577.5 593.4 639.1 1971— Au g Sept......... O ct.......... N ov......... Dec.......... 228.0 227.6 227.7 227.7 228.2 454.5 455.6 458.3 460.8 464.7 697.6 701.2 706.5 711.6 718.1 224.9 226.2 227.5 229.6 235.1 451.7 454.3 458.0 461.4 470.2 694.5 699.5 705.9 711.4 723.4 1972—Ja n Feb.......... M ar......... A pr.......... M ay........ Jun e........ Ju ly r ----Aug.**. . . 228.8 231.2 233.5 235.0 235.5 236.6 239.4 240.4 469.9 475.5 480.1 483.0 486.1 490.4 495.0 498.1 727.3 737.4 745.9 752.7 758.8 766.1 774.8 781.5 235.3 229.0 231.3 236.1 231.3 234.7 237.9 237.1 475.3 472.7 478.7 485.4 483.2 488.9 493.6 495.3 732.8 734.1 744.9 755.6 755.9 765.5 774.0 778.1 239.7 240.1 240.9 240.4 241.2 496.2 497.2 498.6 498.3 499.7 237.4 237.4 238.2 235.8 236.3 494.1 494.9 496.4 494.2 495.3 Week ending— 1972—Aug. 2. 9. 16. 23 p 30p COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions o f dollars) N o t seasonally adjusted Seasonally adjusted Commercial banks Commercial banks M onth or week C ur rency D e m and depos its Time and savings deposits C D ’s 3 O ther Total N on bank thrift institu tions 4 C ur rency D e mand depos its Time and savings deposits C D ’s 3 O ther N on bank thrift institu tions 4 U.S. Govt. depos its 5 Total 1968—D ec...................... 1969—Dec...................... 1970—Dec...................... 43.4 46.0 49.0 154.0 157.7 165.8 23.6 11.0 25.5 180.6 183.2 203.4 204.2 194.1 228.9 194.6 201.5 215.7 44.3 46.9 50.0 159.1 162.9 171.3 23.6 11.1 25.8 179.6 182.1 202.3 203.2 193.2 228.1 194.6 201.4 215.6 5 .0 5 .6 7.3 1971—Aug..................... Sept..................... O ct....................... Nov..................... D ec...................... 51.7 51.9 52.2 52.2 52.5 176.3 175.7 175.5 175.5 175.7 30.8 31.6 32.7 32.2 33.4 226.5 228.0 230.6 233.1 236.4 257.3 259.6 263.3 265.3 269.9 243.1 245.6 248.3 250.8 253.4 51.9 51.9 52.2 52.8 53.5 173.0 174.3 175.3 176.9 181.5 31.2 32.1 33.6 33.7 33.9 226.9 228.1 230.5 231.8 235.1 258.1 260.3 264.1 265.5 269.0 242.8 245.2 247.9 250.0 253.2 6.8 7.5 5.3 3.9 6.7 1972—Jan ....................... Feb...................... M ar..................... A pr...................... M ay.................... Jun e.................... July..................... Aug.p ................. 52.8 53.2 53.7 54.0 54.4 54.7 54.9 55.1 176.0 178.0 179.9 180.9 181.1 181.9 r 184.5 185.3 33.2 33.8 33.4 34.7 36.3 37.1 38.1 39.3 241.2 244.3 246.5 248.1 250.7 253.8 255.6 257.7 274.4 278.1 279.9 282.8 287.0 290.9 293.7 297.0 257.4 261.8 265.8 269.7 272.6 r275.7 r279.7 283.2 52.6 52.6 53.2 53.6 5 4.0 54.6 ’55.3 55.3 182.7 176.4 178.1 182.6 177.3 180.1 r 182.6 181.8 33.7 33.6 33.3 33.8 35.1 35.8 37.0 39.9 240.0 243.7 247.5 249.3 251.9 254.2 255.7 258.2 273.7 277.3 280.8 283.1 286.9 290.0 292.7 298.1 257.5 261.4 266.2 270.2 272.7 276.6 r280.4 282.8 7.2 7 .2 7 .7 7.6 10.4 6.8 7.2 5.3 54.9 55.2 55.0 55.2 55.2 184.8 185.0 185.9 185.2 186.0 38.6 38.6 38.8 39.7 4 0 .4 256.5 257.0 257.7 257.8 258.5 295.1 295.6 296.5 297.5 298.9 54.9 55.8 55.5 55.2 54.8 182.6 181.7 182.7 180.6 181.5 38.2 38.9 39.4 40.3 4 1 .2 256.7 257.5 258.2 258.3 259.0 294.9 296.4 297.6 298.6 300.2 Week ending— 1972__Aug. 2 ............. 9 ............. 16............. 2 3 ^........... 30^........... 1 Includes, in addition to currency and demand deposits, savings de posits, tim e deposits open account, and time certificates o f deposits other than negotiable tim e certificates o f deposit issued in denominations o f $100,000 or more by large weekly reporting commercial banks. 2 Includes M 2, plus the average o f the beginning and end o f m onth deposits o f m utual savings banks and savings and loan shares. 3 Negotiable time certificates o f deposit issued in denominations of $ 100,000 o r more by large weekly reporting commercial banks. 4 Average o f the beginning and end-of-month deposits o f m utual savings banks and savings and loan shares. s A t all commercial banks. 7.8 6.4 5.3 4 .6 4 .4 N o t e . —F or description of revised series and for back data, see pp. 88093 o f the November B u l l e t i n . Average o f daily figures. M oney stock consists o f (1) demand deposits at all commercial banks other than those due to domestic commercial banks and the U.S. Govt., less cash items in process o f 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 all commercial banks. Time de posits adjusted are time deposits at all commercial banks other than those due to domestic commercial banks and the U.S. G ovt. A 18 BANK RESERVES; BANK CREDIT □ SEPTEMBER 1972 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS Member bank reserves, <z> > (In billions o f dollars) Deposits subject to reserve requirements 3 S.A. Period Total N on bor rowed Re quired Avail able2 Total Total member bank deposits plus nondeposit item s4 N .S.A . Dem and Time and savings Private U.S. Govt. Total D em and Time and savings Private U.S. Govt. S.A. N.S.A. 1968—Dec. 1969—Dec , 1970—D e c ... . 27.25 27.98 29.13 26.47 26.83 28.76 26.89 27.75 28.92 24.96 25.25 26.75 297.6 285.4 319.0 164.5 150.3 178.6 128.3 129.8 133.8 4 .8 5.3 6 .5 301.2 288.8 322.8 163.8 149.7 178.2 133.3 134.6 138.7 4.1 4 .6 6 .0 304.6 305.4 330.6 308.1 308.8 334.4 1971— A u g .... Sept___ Oct........ N ov___ D ec....... 30.74 31.07 30.88 30.97 31.25 r29.99 30.56 '30.49 30.54 31.08 30.57 30.91 30.69 30.75 31.10 28.52 28.50 28.59 28.73 28.84 347.1 349.2 349.8 352.7 357.9 200.2 202.2 205.2 206.4 210.2 141.0 140.5 139.9 140.9 141.5 5.8 6.5 4.7 5 .4 6.2 344.6 348.2 350.2 351.6 362.2 200.8 202.7 205.9 206.9 209.7 138.1 139.2 139.9 141.6 146.7 5.8 6.3 4.3 3 .2 5.7 351.0 353.3 354.7 358.0 361.9 348.6 352.2 355.0 357.0 366.2 1972—Jan ........ Feb....... M ar___ Apr. . . . M a y .. . . J u n e .. . . July. . . . Aug.®... 31.77 31.62 32.03 32.64 32.83 33.06 33.14 33.42 31.68 31.58 31.93 32.53 32.73 32.97 r32.92 33.05 31.56 31.47 31.82 32.47 32.69 32.84 32.96 33.21 29.06 29.24 29.63 29.80 29.95 '30.15 30.37 30.59 360.9 363.1 368.4 372.7 377.1 378.7 '3 8 2 .4 384.9 213.7 216.4 217.4 219.8 223.4 226.1 228.2 230.5 141.0 142.9 144.9 145.5 146.3 147.3 '148.9 149.8 6.3 3.7 6.1 7.4 7 .4 5.3 5.3 4 .6 366.3 363.4 368.0 373.1 374.9 376.4 '380.9 382.2 213.4 215.9 218.1 219.8 223.1 225.2 227.1 231.3 146.9 141.5 143.4 146.8 142.9 145.6 '147.7 146.6 6 .0 6.1 6 .6 6.5 8.8 5.7 6.1 4.3 364.9 366.7 372.1 376.3 380.9 382.4 '386.3 389.1 370.3 367.1 371.8 376.6 378.6 380.2 '384.8 386.4 1 Averages o f daily figures. M ember bank reserve series reflects actual reserve requirement percentages with no adjustment to eliminate the effect o f changes in Regulations D and M. Required reserves were in creased by $660 million effective Apr. 16, 1969, and $400 million, effective Oct. 16, 1969. Required reserves were reduced by $500 million (net) effective Oct. 1, 1970. 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 re quirements, and (2) excess reserves. This series excludes required reserves for net interbank and U.S. G ovt, demand deposits. 3 Averages o f 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 o f collection and demand balances due from domestic commercial banks. D ata for 1968 are not comparable with later data due to the withdrawal from the System on Jan. 2, 1969, o f a large m ember bank. 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 ad justed bank credit proxy.” N o t e . — D ue to changes in Regulations M and D , member bank re serves include reserves held against nondeposit funds beginning Oct. 16, 1969. Back data may be obtained from the Banking Section, Division o f Research and Statistics, Board o f Governors o f 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 invest m ents1, 2 T o tal1,2 D ate Plus loans sold N ot seasonally adjusted Securities Commercial and industrial 1 2 3 Total Plus loans sold3 U.S. Treas ury Securities Total loans and invest O ther2 m ents1,2 T o t a l 1, 2 Plus loans sold 1 2 3 Commercial and industrial Total Plus loans sold3 U.S. Treas ury O ther2 1968—Dec. 3 1 .. 1969—Dec. 314. 390.6 402.1 258.2 279.4 283.3 95.9 105.7 108.3 61.0 51.5 71.4 71.2 400.4 412.1 264.4 286.1 290.0 98.4 108.4 111.0 64.5 54.7 1970—Dec. 3 1 .. 435.9 292.0 294.9 109.6 111.7 58.0 85.9 446.8 299.0 301.9 112.5 114.6 61.7 86.1 1971—Aug. Sept. Oct. Nov. Dec. 2 5 .. 2 9 .. 2 7 .. 2 4 .. 3 1 .. 468.4 472.4 477.2 479.8 485.7 309.7 313.0 317.0 318.7 320.6 312.4 316.0 319.9 321.6 323.4 115.2 116.2 116.6 116.0 115.5 117.0 118.1 118.4 117.8 117.1 60.9 59.9 59.1 58.8 60.7 97.8 99.5 101.1 102.2 104.5 466.1 472.0 476.5 479.9 497.9 309.3 313.4 315.1 317.3 328.3 312.0 316.4 318.0 320.1 331.1 114.2 115.9 115.6 115.6 118.5 116.0 117.8 117.4 117.4 120.1 58.7 58.7 60.0 61.0 64.9 98.1 99.9 101.5 101.6 104.7 1972—Jan. Feb. M ar. A pr. M ay June July Aug. 2 6 .. 2 3 .. 29® . 26® . 31® . 30® . 26®.. 30®.. 491.4 496.6 504.3 505.8 513.8 514.0 518.4 526.3 325.7 328.5 333.3 334.8 340.3 341.2 345.9 353.6 328.7 331.5 336.1 337.5 342.8 343.5 348.3 355.9 116.4 117.3 118.1 119.4 120.7 5119.4 120.8 123.1 118.1 119.0 119.9 121.1 122.2 5120.8 122.2 124.7 59.7 61.0 62.2 62.4 62.8 62.8 61.8 61.0 106.0 107.1 108.7 108.6 110.7 110.0 110.7 111.7 490.1 492.4 500.7 505.1 511.4 518.2 518.5 522.9 322.7 324.3 330.0 334.1 340.0 347.4 348.4 351.9 325.6 327.3 332.8 336.7 342.4 349.7 350.8 354.3 115.2 116.1 118.1 119.6 120.3 5121.8 121.6 121.4 116.9 117.8 119.9 121.3 121.8 5123.2 123.0 123.0 62.7 61.9 62.4 61.6 61.0 59.9 59.2 58.9 104.8 106.2 108.4 109.4 110.5 110.9 110.9 112.1 1 Adjusted to exclude domestic commercial interbank loans. 2 Beginning June 30, 1971, Farmers H om e Administration insured notes totaling approximately $700 million are included in “ Other securities” rather than in “Loans.” 3 Loans sold outright by commercial banks to own subsidiaries, foreign branches, holding companies, and other affiliates. 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, w ithout valuation reserves deducted, rather than net o f valuation reserves as was done previously. For a description o f the revision, see Aug. 1969 B u l l e t i n , pp. 642-46. D ata shown in this table beginning January 1959 have been revised to include valuation reserves. 71.5 71.3 5 Beginning June 30, 1972, commercial and industrial loans were re duced by about $400 million as a result o f loan reclassifications at one large bank. N o t e . —For monthly data on total loans and investments 1959-70, see Dec. 1971 B u l l e t i n , pp. 974-75. For monthly data, 1948-58, see Aug. 1968 B u l l e t i n , pp. A-94-A-97. F or a description o f the seasonally ad justed series see the following Bulletins: July 1962, pp. 797-802; July 1966, pp. 950-55; Sept. 1967, pp. 1511-17; and Dec. 1971, pp. 971-73. For monthly data on commercial and industrial loans, 1959-71, see July 1972 B u l l e t i n , p. A-109. F or description o f series, see July 1972 B u l l e t i n , p. 683. D ata are for last Wednesday of m onth except for June 30 and Dec. 31; data are partly or wholly estimated except when June 30 and Dec. 31 are call dates. SEPTEMBER 1972 □ BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and canital Loans net 2 Total Coml. and savings banks Federal Reserve Banks Other 3 Other secu rities Total assets, net— T otal liabil ities and capital, net Bank credit D ate G old stock and SD R certifi cates i Treas ury cur rency out stan d ing U.S. Treasury securities Total 4 Total deposits and currency Capital and misc. ac counts, net 1947—Dec. 1950—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 3 1 .. 30 .. 30 .. 3 1 .. 315. 3 1 .. 22,754 22,706 11,982 10.367 10.367 11,132 4,562 4,636 6,784 6,795 6,849 7,149 160,832 171,667 468,943 514,427 532,663 580,899 43,023 60,366 282,040 311,334 335,127 354,447 107,086 96,560 117,064 121,273 115,129 127,207 81,199 72,894 66,752 68,285 57,952 64,814 22,559 20,778 49,112 52,937 57,154 62,142 3,328 2,888 1,200 51 23 251 10,723 14,741 69,839 81,820 82,407 99,245 188,148 199,008 487,709 531,589 549,879 599,180 175,348 184,384 444,043 484,212 485,545 535,157 12,800 14,624 43,670 47,379 64,337 64,020 1971—Aug. Sept. Oct. Nov. Dec. 2 5 .. 2 9.. 27.. 24.. 31.. 10.500 10.500 10.500 10.500 10,532 7.500 7.500 7.600 7.600 7,627 611,300 617,000 622,200 626,700 650,677 365,700 368,100 369,500 370,900 386,010 130,000 131,300 133,600 136,400 141,547 62,200 62,200 63,300 64,400 68,198 66,400 67,600 67,800 69,500 70,804 1,400 1,600 2.500 2.500 2,545 115,600 117,500 119,100 119,400 123,120 629.300 635,000 640.300 644,800 668,837 563.500 567.500 571,600 575,800 604,415 65.800 67,600 68.800 69,000 64,423 1972—Jan. Feb. M ar. Apr. M ay June July Aug. 26.. 23.. 29*. 26*. 31*. 28*. 26*. 30*. 10,500 10,000 10,000 10,000 10,800 10,800 10,800 10,800 7,700 7,800 7.900 7.900 8,000 8,100 8,100 8,200 642,600 643.300 653,700 660,000 665.300 669.300 674,100 678.300 380,600 381.000 386,900 391.000 395.000 400,700 405,200 408,800 138,400 136.600 138.200 138,900 138.600 136.600 136.200 135,700 66,000 65,200 65,800 65.000 64,400 63.000 62,700 62,300 69.900 68.900 69.900 71,300 71,600 71,000 70.900 70,800 2.500 2.500 2,600 2,600 2,600 2,600 2,600 2,600 123,600 125.700 128,500 130.100 131.700 132.100 132.700 133,800 660,800 661,100 671,600 677,900 684.100 688,200 693.100 697,300 593,000 592.900 606,700 612,500 619,400 622.900 628,100 630,200 67.900 68,200 64.900 65,400 64,700 65,300 65,000 67,100 DETAILS OF DEPOSITS AND CURRENCY M oney stock Seasonally adjusted 6 D ate Total C ur rency outside banks Related deposits (not seasonally adjusted) N ot seasonally adjusted D e mand deposits ad justed 7 Total C ur rency outside banks Time D e mand deposits ad justed7 Total U.S. Governm ent F or Postal eign, C om M utual Savings net 10 mercial savings Sys banks 8 banks 9 tem 3 1947—Dec. 1950—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 3 1 . .. . 3 0 . .. . 3 0 . .. . 3 1 . .. . 3 1 5 ... 3 1 . .. . 110,500 114,600 181,500 199,600 206,800 209,400 26,100 24,600 39,600 42,600 45,400 47,800 84,400 90,000 141,900 157,000 161,400 161,600 113,597 117,670 191,232 207,347 214,689 219,422 26,476 87,121 25,398 92,272 41,071 150,161 43,527 163,820 46,358 168,331 49,779 169,643 56,411 59,246 242,657 267,627 260,992 302,591 35,249 36,314 182,243 202,786 193,533 230,622 17,746 20,009 60,414 64,841 67,459 71,969 1971—Aug. Sept. Oct. Nov. Dec. 2 5 . .. . 2 9 . .. . 2 7 .... 2 4 .... 3 1 .... 214,700 213,800 215,900 216,700 224,600 50,300 50,400 51,000 51,100 51,100 164,400 163,400 164,900 165,600 173,500 213,000 212,400 216,800 220,100 234,876 50,600 50,500 50,900 52,500 53,141 162,300 161,900 165,900 167,600 181,735 336,300 340,700 343,700 346,400 353,638 257,700 261,400 263,900 266,100 271,760 78,600 79,400 79,800 80,300 81,877 1972—Jan. Feb. M ar. Apr. May June July Aug. 2 6 .... 2 3 .... 2 9 * ... 2 6 * ... 3 1 * ... 2 8 * ... 2 6 * ... 3 0 * ... 217,200 220,400 230,300 227,400 233,800 233,400 233,100 235,900 51,700 52,100 52,600 52,700 53,300 53,300 53,600 53,500 165,500 168,300 177,700 174,700 180,500 180,100 179,500 182,400 220,000 219,300 227,000 227,400 230,900 230,200 232,800 233,800 51,000 51,500 52,100 52,200 53,100 53,300 53,700 53,800 169,000 167,800 174,900 175,200 177,800 177,000 179,100 180,000 357,300 361,700 366,600 369,400 374,100 377,000 380,400 387,300 274,900 278,300 281,700 284,000 288,000 289,900 292,800 299,000 82,500 83,400 84,900 85,400 86,100 87,100 87,600 88,300 1 Includes Special Drawing Rights certificates beginning Jan. 1970. 2 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits accumulated for payment o f 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), D eposits Accum ulated fo r Paym ent o f Personal Loans, p. A-32. See footnote 1 on p. A-23. 3 After June 30, 1967, Postal Savings System accounts were eliminated from this Statement. 4 See second paragraph o f note 2. 5 Figures for this and later dates take into account the following changes (beginning June 30, 1969) for commercial banks: (1) inclusion o f con solidated reports (including figures for all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries) and (2) reporting o f figures for total loans and for individual categories o f securities on a gross basis—th at is, before deduction o f valuation reserves. See also note 1. 6 Series began in 1946; data are available only for last Wed. o f month. 7 Other than interbank and U.S. Govt., less cash items in process o f collection. 3,416 2,923 Treas ury cash hold ings At coml. At and F.R . savings Banks banks 1,452 2,989 5,508 5,385 5,273 8,409 870 668 1,123 703 1,312 1,156 2,500 2,400 2,500 2,600 2,719 500 10,000 500 9,500 500 6,500 500 4,700 464 10,698 1,400 2,000 1,700 1,400 2,020 2,400 2,600 2,500 2,500 2,900 2,900 3,000 2,900 500 9,900 400 7,800 400 9,200 400 11,000 400 9,000 400 9,500 300 9,000 300 4,500 2,900 1,100 900 1,800 2,100 2,900 2,500 1,400 1,682 2,518 2,179 2,455 2,683 3,148 1,336 1,293 1,344 695 596 431 8 See first paragraph o f note 2. 9 Includes relatively small amounts o f demand deposits. Beginning with June 1961, also includes certain accounts previously classified as other lia bilities. 10 Reclassification o f deposits o f foreign central banks in M ay 1961 re duced this item by $1,900 million ($1,500 million to time deposits and $400 million to demand deposits). N o te . —For back figures and descriptions o f the consolidated condition statement and the seasonally adjusted series on currency outside banks and demand deposits adjusted, see “ Banks and the M onetary System,” Section 1 of Supplement to Banking and M onetary S tatistics, 1962, and B u lle t in s for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly esti mated and are rounded to the nearest $100 million. F o r description of substantive changes in official ca ll reports o f condition beginning June 1969, see B u lle t in for Aug. 1969, pp. 642-46. A 20 COMMERCIAL BANKS □ SEPTEMBER 1972 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions o f dollars) Loans and investments Securities Class o f bank and date All commercial banks: 1941—Dec. 3 1 . .. 1945—Dec. 3 1 . .. 1947—Dec. 31 6. Total 50,746 124,019 116,284 Loans l U.S. Treas ury 21,714 21,808 26,083 90,606 38,057 69,221 Other 2 Total assets— Total Cash lia assets 3 bilities and T o tal3 capital ac counts4 D eposits Interbank3 Bor row ings D em and D e mand U.S. Govt. 7,225 26,551 79,104 71,283 10, S>82 7,331 34,806 160,312 150,227 14,( )65 9,006 37,502 155,377 144,103 12,792 240 3 1 . .. 3 0 . .. 3 1 . .. 31 7. 3 1 ... 322,661 359,903 401,262 421,597 461,194 217,726 235,954 265,259 295,547 313,334 56,163 62,473 64,466 54,709 61,742 48,772 61,477 71,537 71,341 86,118 69,119 77,928 83,752 89,984 93,643 403,368 451,012 500,657 530,665 576,242 352,287 395,008 434,023 435,577 480,940 19,770 967 21,883 1,314 24,747 1,211 27,174 735 30,608 1,975 1971—Aug. Sept. Oct. Nov. Dec. 2 5 ... 2 9 ... 2 7 ... 2 4 ... 3 1 ... 482,230 489,640 492,020 497,070 516,564 325,450 331,000 330,570 334,420 346,930 58,720 58,740 59,960 61,030 64,930 98,060 99,900 101,490 101,620 104,704 85,300 88,180 95,590 95,350 99,832 591.080 602,070 611,630 616.080 640,255 491,180 497,530 506,710 506,340 537,946 1972—Jan. Feb. M ar. Apr. M ay June July Aug. 2 6 ... 2 3 ... 29p. . 2 6 * \. 3125.. 2 8 ^ .. 26v. . 30p. . 508,200 511,360 521,870 523,760 529,510 535,580 539,130 543,820 340,730 343,300 351,130 352,770 358,080 365,380 369,060 372,850 62,690 104,780 61,860 106,200 62,380 108,360 61,620 109,370 60,960 110,470 59,600 110,600 59,190 110,880 58,920 112,050 92,690 96,130 91,350 95,300 101,360 92,730 92,270 92,070 624,750 631,330 638,210 643.770 656.770 653,980 656,960 661,850 521,320 524,280 525,520 531,990 542,940 538,620 542,830 544,230 Member of F.R. System: 1941—Dec. 3 1 ... 1945—Dec. 3 1 ... 1947—Dec. 3 1 ... 43,521 107,183 97,846 Total capital ac counts N um ber of banks Time 5 Time 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 18,021 19,539 22,775 78,338 32,628 57,914 O ther O ther 44, 349 105 ,921 1,343 94,367 15,952 30,241 35,360 23 7,173 14,278 219 8,950 14,011 65 10,059 14,181 4,992 5,234 5,010 5,054 7,938 167,751 184,066 199,901 208,870 209,335 158,806 4,859 32,054 13,767 182,511 5,777 34,384 13,722 203,154 8,899 37,006 13,679 193,744 18,360 39,978 13,661 231,084 19,375 42,958 13,686 26,380 27,050 28,920 28,200 32,205 2,110 9,390 2,500 8,920 2,610 5,950 2,600 4,210 2,908 10,169 195,020 197,180 204,800 204,670 220,375 258,280 261,880 264,430 266,660 272,289 44,980 45,110 45,530 45,710 47,211 13,739 13,753 13,768 13,776 13,783 28,480 31,050 26,430 26,140 28,240 26,520 27,250 27,030 2,960 9,280 205,160 275,440 26,370 46,600 2,990 7,270 204,080 278,890 29,190 47,050 2,950 8,740 205,210 282,190 32,810 47,450 2,870 10,470 207,990 284,520 31,520 47,780 3,020 8,430 214,640 288,610 33,110 48,310 3,000 8,920 209,710 290,470 34,240 48,340 3,230 8,480 210,500 293,370 34,050 48,710 3,310 3,900 210,370 299,620 35,700 49,140 13,787 13,799 13,806 13,823 13,838 13,875 13.877 13.877 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 12,353 140 1,709 64 22,179 50 1,176 37,136 69,640 80,609 12,347 24,210 28,340 24,620 26,850 27,240 30,870 25,912 4 208 54 5,886 7,589 8,464 6,619 6,884 6,923 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 3 1 ... 3 0 . .. 31 . . . 31 7. 3 1 ... 263,687 293,120 325,086 336,738 365,940 182,802 196,849 220,285 242,119 253,936 41,924 46,956 47,881 39,833 45,399 38,960 49,315 56,920 54,785 66,604 60,738 68,946 73,756 79,034 81,500 334,559 373,584 412,541 432,270 465,644 291,063 326,033 355,414 349,883 384,596 794 18,788 20,811 1,169 23,519 1,061 25,841 609 29,142 1,733 4,432 4,631 4,309 4,114 6,460 138,218 151,980 163,920 169,750 168,032 128,831 4,618 26,278 147,442 5,370 28,098 162,605 8,458 30,060 149,569 17,395 32,047 179,229 18,578 34,100 6,150 6,071 5,978 5,869 5,766 1971—A ug. Sept. Oct. Nov. Dec. 2 5 ... 2 9 ... 2 7 ... 2 4 ... 3 1 ... 379,269 385,391 386,028 389,468 405,087 261,993 266,575 2,64,847 267,287 277,717 42,337 42,369 43,586 44,630 47,633 74,939 76,447 77,595 77,551 79,738 74,807 77,361 83,963 83,788 86,189 473,923 483,064 490,047 492,995 511,353 389,558 394,598 401,167 399,678 425 380 25,169 25,829 27,616 26,941 30,612 1,883 2,274 2,385 2,372 2,549 7,907 7,369 4,840 3,317 8,427 155,336 157,000 162,600 161,905 174,385 199,263 202,126 203,726 205,143 209,406 23,749 25,843 26,203 29,776 25,046 35,723 35,827 36,179 36,303 37,279 5,730 5.724 5.725 5,729 5,727 1972—Jan. Feb. M ar. Apr. M ay June July Aug. 2 6 ... 2 3 ... 2 9 ... 2 6 ... 3 1 ... 2 8 ... 2 6 ... 30p. . 397,951 400,338 409,024 409,925 414,469 419,412 422,102 425,392 272,452 274,508 281,182 282,298 286,310 292,333 2,95,275 297,851 45,723 45,102 45,486 44,643 44,403 43,251 42,932 42,727 79,776 80,728 82,356 82,984 83,756 83,828 83,895 84,814 80,580 83,258 78,710 82,345 87,524 80,019 79,164 79,057 498,591 503,720 508,747 513,123 523,538 520,769 522,562 525,983 411,462 413,339 413,132 418,730 427,426 423,451 426,242 426,716 27,230 29,738 25,154 24,893 26,913 25,272 25,923 25,742 2,596 2,627 2,590 2,510 2,663 2,644 2,867 2,954 7,643 5,931 7,216 8,939 6,825 7,301 6,953 2,966 162,307 161,031 161,976 164,071 169,496 165,349 165,393 164,851 211,686 214,012 216,196 218,317 221,529 222,885 225,106 230,203 25,429 28,227 31,792 30,406 31,907 32,965 32,725 34,315 37,028 37,340 37,683 37,928 38,356 38,355 38,649 38,979 5,718 5,720 5.713 5.713 5.713 5.714 5.705 5.705 Reserve city member: New York C ity :8, 9 1941—Dec. 3 1 ... 1945—Dec. 3 1 ... 1947—Dec. 3 1 ... 12,896 26,143 20,393 4,072 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 i95 30 1,648 2,120 2,259 36 37 37 467 741 622 268 956 1,016 1,084 888 694 1,039 26,535 31,282 33,351 36,126 32,235 17,449 20,062 20,076 14,944 20,448 1,874 1,880 2,733 4,405 4,500 5,298 5,715 6,137 6,301 6,486 12 12 12 12 12 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 3 1 ... 3 0 ... 3 1 ... 31 7. 3 1 ... 46,536 52,141 57,047 60,333 62,347 35,941 39,059 42,968 48,305 47,161 4,920 6,027 5,984 5,048 6,009 5,674 7,055 8,094 6,980 9,177 14,869 18,797 19,948 22,349 21,715 64,424 74,609 81,364 87,753 89,384 51,837 6,370 60,407 7,238 63,900 8,964 62,381 10,349 67,186 12,508 1971—Aug. Sept. Oct. Nov. D ec. 2 5 ... 2 9 ... 2 7 ... 2 4 ... 3 1 ... 60,886 61,997 61,734 61,776 63,342 47,659 48,700 47,971 47,626 48,714 4,793 4,713 5,088 5,582 5,597 8,434 8,584 8,675 8,568 9,031 21,431 23,254 24,405 23,026 22,663 88,217 90,982 91,671 90,162 91,461 67,392 68,633 68,923 67,792 71,723 11,918 12,471 13,005 12,988 13,825 939 1,013 1,086 1,196 1,186 1,564 1,283 710 392 1,513 28,578 29,229 29,561 28,785 30,943 24,393 24,637 24,561 24,431 24,256 6,201 6,818 6,748 6,954 5,195 7,078 7,061 7,207 7,257 7,285 12 12 12 12 12 1972—Jan. Feb. M ar. Apr. M ay June July Aug. 2 6 ... 2 3 ... 2 9 ... 2 6 ... 3 1 ... 2 8 ... 2 6 ... 3 0 ... 62,539 61,856 64,450 63,467 65,719 66,761 66,331 67,353 48,337 48,221 50,063 49,539 50,799 51,973 51,408 52,031 5,405 8,797 5,190 8,445 5,567 8,820 4,825 9,103 5,257 9,663 4,962 9,826 4,954 9,969 5,158 10,164 23,684 23,615 21,400 21,014 22.516 19,971 19.517 19,152 91,726 91,094 91,687 90,364 93,765 92,258 91,247 92,066 71,017 69,674 68,029 68,798 70,852 70,213 69,508 69,330 13,443 15,152 11,674 11,451 12,303 11,790 11,580 11,679 1.258 1.258 1,231 1,162 1,198 1,156 1,312 1,345 1,395 878 1,360 2,013 1,038 989 1,170 288 30,660 28,084 28,793 28,842 29,918 29,649 28,396 27,497 24,261 24,302 24,971 25,330 26,395 26,629 27,050 28,521 5,854 6,906 8,428 6,650 8,103 7,528 7,431 8,188 7,253 7,306 7,342 7,372 7,618 7,559 7,612 7,736 12 12 12 12 13 13 13 13 For notes see p. A-23. SEPTEMBER 1972 □ COMMERCIAL BANKS A 21 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Securities Class o f bank and date Reserve city member (cont.) City of Chicago: * 1941—Dec. 3 1 ............ 1945—Dec. 3 1 ............ 1947—Dec. 3 1 ........... Total Loans U.S. Treas ury O ther Total assets— Total lia Cash bilities and assets3 capital T o tal3 ac counts4 D eposits O ther D em and D e m and 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 1,035 1,312 1,217 Total N um capital ber ac of counts banks Bor row ings Tim es Time U.S. G ovt. O ther 127 1,552 72 2,419 3.462 4,201 476 719 913 288 377 426 13 12 14 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 3 1 . .. 3 0 . .. 3 1 . .. 31 7. 3 1 ... 11,802 12.744 14,274 14,365 15.745 8,756 9,223 10,286 10,771 11,214 1,545 1,574 1,863 1,564 2,105 1,502 1,947 2,125 2,030 2,427 2,638 2,947 3,008 2,802 3,074 14,935 16,296 18,099 17,927 19,892 12,673 13,985 14,526 13,264 15,041 1.433 1.434 1,535 1,677 1,930 25 21 21 15 49 310 267 257 175 282 6,008 6,250 6,542 6,770 6,663 4,898 6,013 6,171 4,626 6,117 484 383 682 1,290 1,851 1,199 1,346 1,433 1,517 1,586 11 10 9 9 9 1971—Aug. Sept. Oct. Nov. Dec. 25., 29. 27. 24. 31. 16,346 16,704 16,526 16,651 17,133 12,113 12,273 11,938 11,945 12,285 1,528 1,671 1,732 1,780 1,782 2,705 2,760 2,856 2,926 3,067 3,089 2,756 3,576 3,856 3,011 20,364 20,438 21,049 21,333 21,214 15,234 15,571 15,933 15,364 16,651 1,365 1,339 1,553 1,431 1,693 142 191 228 219 168 380 374 240 102 364 5,997 6,028 6,386 6,097 6,896 7,350 7,639 7,526 7,515 7,530 2,447 1,952 2,462 2,712 1.935 1,638 1.649 1,669 1.649 1,682 9 9 9 9 9 1972—Jan. Feb. M ar. Apr. M ay June July Aug. 2 6., 23. 29. 26. 31. 28. 26. 30. 16,614 17,234 17,668 17,761 18,147 18,529 18,582 19,200 11,901 12,505 12,898 12,998 13,283 13,934 14,130 14,701 1,657 1,576 1,582 1,510 1,665 1,456 1,398 1,455 3,056 3,153 3,188 3,253 3,199 3,139 3,054 3,044 3,488 3,311 3,204 3,207 3,538 2,902 3,070 2,880 21,059 21.489 21,806 21,858 22,697 22.489 22,727 23,128 15,730 15,791 15,912 16,017 16,509 16,688 16,695 17,147 1,460 1,509 1,398 1,344 1,412 1,329 1,447 1,487 213 207 191 191 182 c191 194 196 378 267 341 465 282 243 310 68 6,243 7,436 6,305 7,503 6.462 7,520 6,381 7,636 6,631 8,002 6,533 c8 ,392 6,157 8,587 6,226 9,170 2,673 2.935 3,180 2,972 3,280 2,926 3,187 2,985 1,781 1,796 1,820 1,829 1,836 1,839 1.850 1.850 9 9 9 9 9 9 9 9 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 9,760 22 405 28,990 11,423 2 1 1,967 2,566 2,844 351 359 353 O ther reserve city: * 1941—Dec. 3 1 . . . . 1945—Dec. 3 1 . . . . 1947_D ec. 3 1 ___ 13,326 17,487 20,337 18,484 22,860 24,228 26,867 28,136 29,954 31,263 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 3 1 . .. 3 0 . .. 3 1 . .. 31 7. 3 1 ... 95,831 105,724 119,006 121,324 133,718 123,863 136,626 151,957 157,512 171,733 108,804 8,593 120,485 9,374 132,305 10,181 126,232 10,663 140,518 11,317 233 310 307 242 592 1,633 1,715 1,884 1,575 2,547 49,004 53,288 57,449 58,923 59,328 49,341 1,952 55,798 2,555 62,484 4,239 54,829 9,881 66,734 10,391 9,471 10,032 10,684 11,464 12,221 169 163 161 157 156 1971- -Aug. Sept. Oct. Nov. Dec. 25. 29. 27. 24. 31. 137,513 98,538 13,132 25,843 27,341 172,142 140,060 100,339 13,121 26,600 27.832 175,407 139,515 98,621 13,810 27,084 30,995 177,945 141,421 100,284 14,203 26,934 32,048 180,956 149,401 106.361 15,912 27,129 33,732 190,880 138,865 9,111 140,334 9,237 143,113 10,006 142,820 9,537 155,226 11,241 667 846 847 733 933 3,366 2,982 1,963 1,264 3,557 54,235 54.557 56,832 57,068 62,474 71,486 72,712 73,465 74,218 77,020 12,375 13.927 13,732 16,692 14,799 12,854 12,922 13.012 13.012 13,197 156 156 156 156 156 1972—Jan. Feb. M ar. Apr. M ay June July Aug. 26. 23. 29. 26. 31. 28. 26. 30. 145,436 146,609 149,384 149,586 151,153 152,851 154,528 153,956 901 938 944 894 1,020 1,034 1,098 1,150 3,057 2,492 2,889 3,839 2,763 3,310 2,867 1,015 56,144 57,121 57,001 58,129 60,716 58,398 58,980 58,564 77,944 78,372 78,099 79,453 80,690 80,632 81,139 82,383 13,528 14.927 16,508 16,766 16,435 18,156 17,595 18,421 13,427 13,463 13,657 13,725 13,890 13,903 14,011 14,062 156 156 156 156 156 156 156 156 225 10,109 6,258 30 17 5,465 24,235 12,494 432 28,378 14,560 17 4 11 23 69,464 73,571 83,634 90,896 96,158 103,311 104,067 106,665 107.362 108,846 111,037 113,172 112,637 13,040 14,667 15,036 11,944 14,700 14,796 14,768 14,583 14,434 14,362 13,999 13,873 13,501 27,329 27,774 28,136 27,790 27,945 27,815 27,483 27,818 29,154 30,945 29,082 32,579 34,413 32,122 30.832 31,452 182,373 185,420 186,613 190,334 193,947 193,131 193,689 193,592 147,352 148,824 147,937 151,394 155,174 152,512 153,772 152,570 9,306 9,901 9,004 9,079 9,985 9,138 9,<— 9,458 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 Country member: 8-9 1941—Dec. 3 1 .. 1945—Dec. 3 1 .. 1947_D ec. 3 1 .. 12,518 35,002 36,324 1966—Dec. 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 3 1 .. 3 0 .. 3 1 .. 317. 3 1 .. 109,518 122,511 134,759 140,715 154,130 68,641 74,995 83,397 92,147 99,404 22,419 24,689 24,998 21,278 22,586 18,458 22,826 26,364 27,291 32,140 19,004 20,334 22,664 23,928 25,448 131,338 146,052 161,122 169,078 184,635 117,749 131,156 144,682 148,007 161,850 2,392 2,766 2,839 3,152 3,387 69 96 111 84 135 1,474 1,564 1,281 1,671 2,592 56,672 61,161 66,578 67,930 69,806 57,144 65,569 73,873 75,170 85,930 308 552 804 1,820 1,836 10,309 11,005 11.807 12,766 13.807 5,958 5,886 5,796 5,691 5,589 1971—Aug. Sept. Oct. Nov. Dec. 2 5 .. 2 9 .. 2 7 .. 2 4 .. 3 1 .. 164,524 166,630 168,253 169,620 175,211 103,683 105,263 106,317 107,432 110,357 22,884 22.864 22,956 23,065 24,343 37,957 38,503 38,980 39,123 40,511 22,946 23,519 24,987 24,858 26,783 193,200 196,237 199,382 200,544 207,798 168,067 170,060 173,198 173,702 181,780 2,775 2,782 3,052 2,985 3,853 135 224 224 224 263 2,597 2,730 1,927 1,559 2,993 66,526 67,186 69,821 69,955 74,072 96,034 97,138 98,174 98,979 100,600 2,726 3,146 3,261 3,418 3,118 14,153 14,195 14,291 14,385 15,114 5,553 5.547 5.548 5,552 5,550 1972—Jan. Feb. M ar. Apr. M ay June July Aug. 2 6 .. 2 3 .. 2 9 .. 2 6 .. 31 .. 2 8 .. 2 6 .. 30*V 173,362 174,639 177,522 179,111 179,450 181,271 182,661 184,883 108,903 109,715 111,556 112,399 113,382 115,389 116,565 118,482 23.865 23,568 23,754 23,874 23,119 22,834 22,707 22,613 40,594 41,356 42,212 42,838 42,949 43,048 43,389 43,788 24,254 25,387 25.024 25,545 27,057 25.024 25,745 25,573 203,438 205,717 208,641 210,567 213,129 212,891 214,899 217,197 177,363 179,050 181,254 182,521 184,891 184,038 186,267 187,669 3,021 3,176 3,078 3,019 3,213 3,015 3.208 3,118 224 224 224 263 263 263 263 263 2,813 2,294 2,626 2,622 2,742 2,759 2,606 1,595 69,260 69,521 69,720 70,719 72,231 70,769 71,860 72,564 102,045 103,835 105,606 105,898 106,442 107,232 108,330 110,129 3,374 3,459 3,676 4,018 4,089 4,355 4,512 4,721 14,567 14,775 14,864 15,002 15,012 15,054 15,176 15,331 5,541 5,543 5.536 5.536 5.535 5.536 5.527 5.527 For notes see p. A-23. 5,890 4,377 5,596 26,999 10,199 22,857 1,982 6,219 2,525 6,476 2,934 6,519 A 22 COMMERCIAL BANKS □ SEPTEMBER 1972 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions o f dollars) Loans and investments Classification by FR S membership and FD IC insurance Securities Total Insured banks: Total: 1941—Dec. 3 1 .. 49,290 1945_D ec. 3 1 .. 121,809 1947—Dec. 3 1 .. 114,274 Loans l U.S. Treas ury 21,259 21,046 25,765 88,912 37,583 67,941 Other 2 Total assets— Total Cash lia assets 3 bilities and capital ac counts4 Deposits Interbank3 O ther Total 3 D em and D e mand Time 5 Time 6,984 25,788 76,820 69,411 10,(554 7,131 34,292 157,544 147,775 13,!383 8,750 36,926 152,733 141,851 12,615 54 U.S. Govt. Other 1,762 23,740 1,325 41,298 80,276 92,975 15,699 29,876 34,882 Bor row ings Total capital ac counts 10 215 61 N um ber of banks 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. 3 1 .. 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. 3 1 .. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 1967—Dec. 3 0 .. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1968—Dec. 3 1 .. 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—June 307. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889 Dec. 3 1 .. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 800 695 5,624 192,357 200,287 14,450 38,321 13,464 5,038 207,311 194,237 18,024 39,450! 13,464 1970—Dec. 3 1 .. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,,874 7,898 208,037 231,132 19,149 42,427| 13,502 1971—June 3 0.. 478,302 321,575 59,991 96,735 95,181 595,819 501,283 30,953 2,166 8,391 205,736 254,036 22,297 44,816 13,547 Dec. 3 1.. 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 1 National member: 1 1,088 23,262 8,322 4 3,640 5,117 6 , ’786 1941—Dec. 3 1 .. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 14,013 45,473 16,224 78 4,644 5,017 1945—Dec. 3 1 .. 69,312 13,925 51,250 4,137 20,144 90,220 84,939 9,: 129 35 795 53,541 19,278 45 5,409, 5,005 1947—Dec. 3 1 .. 65,280 21,428 38,674 5,178 22,024 88,182! 82,023 8,375 1963—Dec. 2 0 .. 137,447 84,845 33,384 19,218 28,635 170,233| 150,823 8,863 1964—Dec. 3 1 .. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 1965—Dec. 3 1 .. 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 61,288 70,746 85,522 1,704 13,548 1,109 15,048; 2,627 17,434 4,615 4,773 4,815 1966—Dec. 3 1 .. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 1967—Dec. 3 0 .. 208,971 139,315 34,308 35,3481 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 3,035 96,755 93,642 3,142 106,019 107,684 3,090 116,422 122,597 3,120 18,459i 3,478 19,730 5,923 21,524 4,799 4,758 4,716 1969—June 307. 242,241 170,834 29,481 41,927 52,271 305,800 251,489 14,324 Dec. 3 1 .. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299 437 361 3,534 113,134 120,060 9,895 22,628 3,049 121,719 114,885 12,279 23,248 4,700 4,668 1970—D ec. 3 1 .. 271,760 187,554j 34,203 50,004 56,028 340,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,868 4,620 1971—June 3 0.. 281,830 192,339 33,759 55,732 57,244 352,807 294,025 16,575 Dec. 31.. 302,756 206,758 36,386 59,612 59,191 376,318 314,085 17,511 1,441 1,828 5,118 121,096 149,795 15,629 25,999 6,014 128,441 160,291 18,169 27,065 4.598 4.599 State member: 1941—Dec. 3 1 .. 1945—Dec. 3 1 .. 1947—Dec. 3 1 .. 15,950 37,871 32,566 6,295 7,500 8,850 27,089 11,200 19,240 2,155 8,145 1,933i 9,731 2,125 10,822 24,688 48,084 43,879 22,259 44,730 40,505 3,'739 4,<411 3,978 1963—Dec. 2 0 .. 1964—Dec. 3 1 .. 1965—Dec. 3 1 .. 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. 3 1 .. 1967—Dec. 3 0 .. 1968—Dec. 3 1 .. 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—June 307. Dec. 3 1 .. 88,346 90,088 64,007 9,902 14,437 26,344 119,358 65,560 10,257 14,271 24,313 119,219 1970—Dec. 3 1 .. 94,760 66,963 11,196 16,600 25,472 125,460 101,512 11,091 1971—June 3 0.. Dec. 31.. 96,939 102,813 67,726 10,279 18,934 27,499 129,955 107,484 13,389 71,441 11,247 20,125 26,998 135,517 111,777 13,102 Nonmember: 1941—Dec. 3 1 .. 1945—Dec. 3 1 .. 1947—Dec. 3 1 .. 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 1963—Dec. 2 0 .. 1964—Dec. 3 1 .. 1965—Dec. 3 1 .. 42,464 46,567 52,028 23,550 i 13,391 26,544 13,790 i 30,310 i 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 1966—Dec. 3 1 .. 1967—Dec. 3 0 .. 1968—Dec. 3 1 .. 56,857 64,449 73,553 33,636 1 13,873 9,349 ' 7,777 37,675 i 15,146 1 11,629 ' 8,403 43,378 16,155 ; 14,020 I 9,305 i 65,921 74,328 84,605 59,434 67,107 76,368 1969—June 307. Dec. 3 1 .. 78,032 82,133 48,358 ! 14,341 15,333 8,696 i 88,802 : 51,643 1 14,565 i 15,925 i 10,056> 94,453 . 78,610 83,380 1970—Dec. 3 1 .. 92,399 57,489» 16,039' 18,871 11,208: 106,457r 93,998 1,091 141 1971—June 30 .. Dec. 31 .. 99,532 108,527 61,509 ►15,953 1 22,07C> 10,439►113,0581 99,774 67,188 1 17,058 ! 24,282 t 12,092» 123,97CI 109,841 989) 1,212> 1861 1,40S) 241I 1,722\ For notes see p. A-23. 76,836 84,534 92,533 15 621 8,166 381 13,874 24,168 27,068 4,025 7,986 9,062 1 130 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 93,858 94,445 9,773 9,541 285 248 1,341 1,065 45,152 48,030 37,307 35,560 4,104 5,116 8,689 8,800 1,236 1,201 750 1,720 45,734 42,218 5,478 9,232 1,147 539 721 1,865 2,412 44,731 45,945 46,959 49,597 6,071 9,823 6,878 10,214 1,138 1,128 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 61 701 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 7,320 709 786 908 87 89 94 543 588 691 28,471 29,625 31,004 ■ 34,640 34,615 i 40,060 99 162 217 5,342 5,830 6,482 7,384 7,440 7,504 791 1,017r 78 85i 749> 34,070 I 42,921 924|. 37,561 43,792 : 129 244 1,4381 40,005i 51,322: 39,9081 57,2831 4 4 ,7 1 'f 61,946i 451 7,004 ■ 7,528 629• 7,403 . 7,595 8,326i 7,735 591r 8,993 t 582> 9,451 I 7,811 7,875 571 SEPTEMBER 1972 □ COMMERCIAL BANKS A 23 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions o f dollars) Loans and investments Classification by FRS membership and FD IC insurance Securities Total Loans l U.S. Treas ury Other 2 Total assets— Total Cash lia assets 3 bilities and capital T o tal3 ac counts 4 Deposits Interbank3 O ther Bor row ings Dem and D e mand Time U.S. Govt. Noninsured nonmember: 1941—Dec. 31........... 1945—Dec. 31........... 1947—Dec. 316......... 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 1963—Dec. 2 0 ........... 1964—Dec. 31........... 1965 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—June 30 7........ Dcc. 31........... 2,809 2,982 1,800 2,041 321 310 688 632 898 895 3,942 4,198 2,556 2,570 Time 5 Total capital ac counts N um ber of banks O ther 1,: 91 1,905 18 1,392 253 365 478 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 1,559 731 638 290 336 502 528 209 197 185 1970—Dec. 31........... 3,079 2,132 304 642 934 4,365 2,570 375 101 40 1,298 756 226 532 184 1971—June 3 0 ......... Dec. 3 1 ......... 2,968 3,147 2,057 2,224 263 239 648 684 960 1,551 4,356 5,130 2,480 2,923 360 380 41 116 20 19 1,182 1,273 877 1,134 250 283 495 480 182 181 Total nonmember: 1941_D ec. 31 ........... 1945—Dec. 31........... 1947—Dec. 31........... 7,233 16,849 18,454 3,696 2,270 3,310 12,277 5,432 11,318 1,2 66 1,262 1,703 3,431 10,992 9,573 4,962 22,024 20,571 4,659 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. 2 0 ........... 1964—Dec. 31........... 1965—Dec. 3 1 ........... 44,035 24,295 48,879 27,899 54,483 31,858 13,854 14,273 14,555 5,885 6,707 8,070 6,316 51,304 45,743 7,752 57,780 51,447 8,085 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 12,162 16,585 14,617 8,983 77,732 69,279 9,997 88,394 78,887 1,071 1,227 147 150 603 32,085 35,372 701 35,981 40,827 408 441 6,286 6,945 7,651 7,701 1969—June 30 7........ Dec. 3 1 ........... 80,841 50,159 14,662 16,021 9,594 92,743 81,166 85,115 53,683 14,875 16,556 10,950 98,651 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 1 9 7 0 -D e c . 31 ........... 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 7,919 1971—June 3 0 ......... 102,500 63,566 Dec. 3 1 ......... 111,674 69,411 16,216 22,718 11,398 117,414 102,254 17,297 24,966 13,643 129,100 112,764 1,348 1,592 227 359 1,429 41,091 58,160 1,742 45,990 63,081 847 866 9,489 9,932 7,993 8,056 1 Beginning June 30, 1966, loans to farmers directly guaranteed by CCC were reclassified as securities, and Export-Im port Bank portfolio fund participations were reclassified from loans to securities. This reduced Total loans and increased “ O ther 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-24. Beginning June 30, 1971, Farmers H om e Administration notes are classified as “ Other securities” rather than “ Loans.” As a result o f 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 o f p. A-32. 2 See first two paragraphs o f note 1. 3 Reciprocal balances excluded beginning with 1942. 4 Includes items n o t shown separately. See also note 1. 5 See last paragraph o f note 1. 6 Beginning with Dec. 31, 1947, the series was revised; for description, see note 4, p. 587, M ay 1964 B u lle t in . 7 Figure takes into account the following changes beginning June 30, 1969: (1) inclusion o f consolidated reports (including figures for all bankpremises subsidiaries and other significant majority-owned domestic subsidiaries) and (2) reporting o f figures for total loans and for individual categories o f securities on a gross basis—that is, before deduction o f valuation reserves—rather than net as previously reported. 8 Regarding reclassification as a reserve city, see Aug. 1962 B u lle t in , p. 993. F or various changes between reserve city and country status in 1960-63, see note 6, p. 587, M ay 1964 B u lle t in . 9 Beginning M ay 6, 1972, two New Y ork City country banks, with deposits o f $1,412 million, merged and were reclassified as a reserve city bank. N o t e . —D ata are for all commercial banks in the United States (includ ing Alaska and Hawaii, beginning with 1959). Commercial banks represent all commercial banks, both m ember and nonm em ber; stock savings banks; and nondeposit trust companies. F or the period June 1941-June 1962 member banks include m utual 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. Comparability o f figures for classes of banks is affected somewhat by changes in F.R. membership, deposit insurance status, and the reserve classifications o f cities and individual banks, and by mergers, etc. D ata 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 B u lle t in , pp. 870-71. A 24 COMMERCIAL BANKS □ SEPTEMBER 1972 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Class o f bank and call date Total loans i and invest ments T o tal;2 1947—Dec. 3 1 .. 116,284 Fed eral funds sold, etc.2 Total 3 .4 Investments For To U.S. Treasury purchasing financial securities 6 or carrying institutions O ther, Com to mer Agri- securities Real in- Other cial cules ditate and tur- To vidal 5 bro Bills in uals3 dus kers T o Banks Others Total and Notes Bonds and others trial certifi cates deal ers 38,057 18,167 1,660 115 830 1,220 9,393 5,723 947 69,221 9,982 6,034 53,205 5,276 3,729 1969—Dec. 31 io 422,728 9,928 286,750 108,443 10,329 5,739 4,027 2,488 15,062 70,020 63,256 7,388 54,709 1971—June 30. 481,270 15,663 307,969 114,362 12,226 5,634 3,493 2,844 16,958 75,777 69,149 7,527 60,254 Dec. 31. 517,244 19,954 327,656 118,526 12,497 7,292 3,659 4,591 16,926 81,601 74,514 8,049 64,930 All insured: 1941— Dec. 3 1 .. 49,290 1945—Dec. 3 1 .. 121,809 1947—Dec. 3 1 .. 114,274 40 49 114 21,259 9,214 1,450 614 662 25,765 9,461 1.314 3,164 3,606 37,583 18,012 1,610 823 1,190 State and ther local Osecu govt. rities 5 secu rities 59,183 12,158 77,994 19,389 82,420 22,284 4,773 21,046 4,505 988 3,159 16,899 3,651 3,333 4,677 2,361 1,132 88,912 21,526 16,045 51,342 3,873 3,258 9,266 5,654 914 67,941 9,676 5,918 52,347 5,129 3,621 1969—Dec. 31 io 419,746 9,693 284,945 107,685 10.314 5,644 3,991 2,425 14,890 69,669 63,008 7,319 54,399 58,840 11,869 1971—June 30. 478,302 15,381 306,194 113,411 12,211 5,555 3,480 2,718 16,825 75,615 68,942 7,437 59,991 i i ’729 38j 540 12j 509 77,687 19,048 Dec. 31. 514,097 19,623 325,764 117,603 12,482 7,201 3,644 4,405 16,792 81,434 74,263 7,939 64,691 82,099 21,921 Member—T otal: 1941—Dec. 3 1 .. 43,521 1945—Dec. 3 1 .. 107,183 1947_D ec. 3 1 .. 97,846 39 47 113 18,021 8,671 972 594 598 22,775 8,949 855 3,133 3,378 32,628 16,962 1,046 811 1,065 3,494 19,539 3,653 971 3,007 15,561 3,090 2,871 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815 7,130 4,662 839 57,914 7,803 4,815 45,295 4,199 3,105 1969—Dec. 31 337,613 7,356 235,639 96,095 6,187 5,408 3,286 2,258 14,035 53,207 48,388 6.776 39,833 47,227 7,558 1971—June 30. 378,769 12,026 248,040 98,573 7,094 5,333 3,024 2,496 15,770 56,934 52,037 6.777 44,038 *5^444 25*365 '9*791 61,963 12,702 65,244 14,494 Dec. 31. 405,570 15,373 262,826 101,479 7,311 6,895 3,167 4,123 15,713 61/091 55,839 7,207 47,633 New York C ity: 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 1969—Dec. 31 io 60,333 1971—June 30. 61,059 Dec. 31. 63,342 802 47,503 28,189 996 46,247 26,948 774 47,941 26,526 3,695 3,822 4,701 2,760 5,931 5,088 732 954 1,333 760 1,801 1,418 48 211 73 52 233 87 1969—Dec. 31io 14,365 1971—June 30. 16,477 Dec. 31. 17,162 215 10,556 6,444 612 11,164 6,515 621 11,693 6,355 337 373 527 262 245 263 Other reserve city: 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 City o f Chicago: 1941—Dec. 3 1 .. 1945—Dec. 3 1 .. 1947—Dec. 3 1 .. 300 205 225 20 42 23 183 471 227 1969—Dec. 31 io 141,286 3,31 89,401 23,762 4,739 1971—June 30. 163,782 5,407 98,452 26,922 5,433 Dec. 31. 175,582 6,208 104,520 28,201 5,599 498 352 474 947 723 821 Nonmember: 1947—Dec. 3 1 .. 614 20 156 1969—Dec. 31 io 85,115 2,572 51,111 12,348 4,141 1971—June 30. 102,500 3,638 59,929 15,789 5,131 Dec. 31. 111,674 4,581 64,830 17,046 5,187 329 301 398 741 468 492 18,454 5,432 1,205 22 36 46 186 1,219 218 1,465 382 1,568 4 17 15 114 194 427 1,503 170 484 659 648 818 5,890 1,676 5,596 1,484 10,199 3,096 7,265 522 311 1,623 5,331 287 272 17,574 3,910 3,325 10,339 564 238 11,972 1,642 558 9,772 95 51 149 842 862 861 1,078 949 1,167 1,527 1,459 3,147 811 2,274 1,561 1,430 256 40 4,213 1,600 26 2,890 367 354 1,564 367 1,736 431 1,782 473 153 1,022 749 1,864 248 2,274 717 729 606 638 830 629 604 6,192 788 7,298 1,401 7,729 1,302 182 181 213 193 204 185 1,837 276 2,580 2,688 192 384 379 1,508 6,467 751 5,421 295 855 387 29.552 8,016 5,653 15,883 1,969 351 20,196 2,731 1,901 15,563 956 820 1,126 916 1,342 1,053 876 6,006 19,706 17,569 2,757 11,944 16,625 1,859 893 7,517 20,722 17,929 3,120 14.552 1,850 7,752 3,445 22,409 3,304 1,671 7,497 22,300 19,405 3,173 15,912 23,459 3,670 1 Beginning with June 30, 1948, figures for various loan items are shown gross (i.e., before deduction o f 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, they 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 o f Personal Loans, p. A-32. 123 80 111 776 1,047 4,547 3,835 3,595 1,807 5,048 637 1,106 4,210 4,202 3,916 1,385 5,116 677 1,722 3,997 4,496 4,151 1,641 5,597 1969—Dec. 31 io 121,628 3,021 88,180 37,701 1,386 878 1,300 786 1,419 1971—June 30. 137,451 5,010 92,176 38,189 1,601 Dec. 31. 149,484 7,771 98,673 40,397 1,630 1,193 1,407 Country: 1941—Dec. 3 1 .. 12,518 1945—Dec. 3 1 .. 35,002 1947—Dec. 3 1 .. 36,324 32 26 93 412 169 2,453 1,172 545 267 2 4 5 1,823 1,881 3,827 110 4,377 1,528 481 3,787 1,222 1,028 707 359 26,999 5,732 4,544 16,722 1,342 1,067 1,979 224 22,857 3,063 2,108 17,687 2,006 1,262 148 2,263 28,824 26,362 1,858 21,278 22,572 4,718 279 2,577 31,148 29,113 1,905 22,634 2,310 14,622 4,510 29,675 7,614 348 2,651 33,347 31,117 1,962 24,343 31,367 9,144 2,266 1,061 231 1,028 16,813 14,868 348 1,187 18,843 17,112 468 1,213 20,509 18,675 109 11,318 2,179 612 14,875 749 16,216 842 17,297 1,219 7,920 1,073 625 11,956 4,600 16,031 6,687 17,176 7,790 4 Breakdowns o f loan, investment, and deposit classifications are not available before 1947; summary figures for 1941 and 1945 appear in the table on pp. A-20—A-23. 5 Beginning with June 30, 1966, loans to farmers directly guaranteed by CCC were reclassified as “ O ther securities,” and Export-Im port Bank portfolio fund participations were reclassified from loans to “ O ther securities.” This increased “ O ther 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. For other notes see opposite page. SEPTEMBER 1972 □ COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions o f dollars) D em and deposits Class o f bank and call date T otal:3 1947—Dec. 3 1 . . . . 1969—Dec. 31 io .. 1971—June 3 0 . . . Dec. 3 1 . . . All insured: 1941_D ec. 3 1 . . . . 1945—Dec. 3 1 . . . . 1947—Dec. 3 1 . . . . R e serves with F.R . Banks D e Bal mand C ur ances de rency with posits and do ad coin mestic banks7 justed 8 17,796 2,216 10,216 87,123 Interbank State and local govt. U.S. F o r Govt. D o mestic7 eign9 11,362 1,430 1,343 6,799 Time deposits Certi fied and offi cers* checks, etc. 2,581 IPC 84,987 U.S. Govt. State Inter and and bank Postal local Sav govt. ings 240 735 21,449 7,320 20,314 172,079 24,553 2,620 5,054 17,558 11,899 179,413 24,066 7,634 21,546 168,263 28,699 2,614 8,412 17,276 11,949 177,692 2,207 27,478 7,541 25,548 185,907 29,349 2,855 10,169 17,665 10,130 192,581 2,908 12,396 1,358 8,570 37,845 15,810 1,829 11,075 74,722 17,796 2,145 9,736 85,751 9,823 673 1,762 12,566 1,248 23,740 11,236 1,379 1,325 3,677 5,098 6,692 1,077 2,585 2,559 36,544 72,593 83,723 158 70 54 695 1969—Dec. 31 i o . . 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 1971—June 3 0 . . . 24,066 7,610 20,748 168,860 28,519 2,434 8,392 17,185 11,736 176,815 2,166 184,366 2,680 10,150 17,547 7,532 29,145 191,746 2,792 27,478 24,171 9,810 Dec. 3 1 . . . Member—T o tal: 1941—Dec. 3 1 . . . . 1945—Dec. 3 1 . . . . 1947— Dec. 3 1 . . . . 1969—Dec. 31 io .. 1971—June 3 0 . . . Dec. 3 1 . . . 12,396 1,087 15,811 1,438 17,797 1,672 671 1,709 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 5 105 4,015 4,639 93 111 151 1969—Dec. 31 io .. 1971—June 3 0 . . . Dec. 31. . . 4,358 4,716 5,362 463 466 459 City o f Chicago: 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 1,027 1,292 1,196 1969—Dec. 3110.. 1971—June 3 0 . . . Dec. 3 1 . . . 869 991 956 123 126 133 150 247 202 5,221 5,044 5,335 1,581 1,439 1,592 96 51 101 Other reserve city: 1941—Dec. 3 1 . . . . 1945—Dec. 3 1 . . . . 1947—Dec. 3 1 . . . . 4,060 6,326 7,095 425 494 562 2,590 11,117 2,174 22,372 2,125 25,714 Country: 1941—Dec. 3 1 . . . . 1945—Dec. 3 1 . . . . 1947—Dec. 3 1 . . . . 1969—Dec. 31 *o.. 1971—June 3 0 . . . Dec. 3 1 . . . 1,009 2,450 2,401 33,061 62,950 72,704 140 64 50 609 21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483 145,992 24,066 5,870 12,971 127,670 27,605 2,360 6,983 12,953 10,654 142,220 1,980 27,478 5,778 14,893 140,446 28,056 2,556 8,427 12,955 8,587 152,843 2,549 New York City: 1941—Dec. 3 1___ 1945— Dec. 3 1 . . . . 1947—Dec. 3 1 . . . . 1969—Dec. 31 io .. 1971—June 3 0 . . . Dec. 3 1 . . . 3,066 4,240 5,504 9,044 1,787 10,394 1,822 12,264 1,819 319 237 290 450 1,338 1,105 11,282 15,712 17,646 694 1,199 1,513 1,168 789 909 6,605 6,032 3,841 28,354 268 25,994 937 26,193 1,186 8 127 20 1,552 72 21 233 237 285 34 66 63 2,152 3,160 3,853 175 318 363 268 352 333 229 211 240 6,273 6,084 6,323 4,302 6,307 5,497 54 491 110 8,221 131 405 1,144 1,763 2,282 286 611 705 3,456 44,169 10,072 4,069 43,872 9,631 4,222 48,063 10,637 590 1,575 535 2,954 604 3,557 3,934 3,716 3,600 141 10,761 78 15,065 70 16,653 3,595 607 866 3,535 1,105 6,940 267 3,236 1,217 455 21,316 8,708 1,641 1,193 15,264 13,504 1,717 1,806 18,315 12,047 1,779 6 17 12 242 735 933 3,080 3,031 3,779 72 1,671 56 2,513 73 2,993 7,905 8,095 8,113 1,721 1,956 1,973 58,304 58,691 63,986 84 223 263 385 167 1,295 180 12,284 190 222 940 254 1,429 299 1,742 55 4,284 4,323 4,710 1,416 1,295 1,543 33,420 35,472 39,737 126 227 359 7 Beginning with 1942, excludes reciprocal bank balances. 8 Through 1960 dem and deposits other than interbank and U.S. G ovt., less cash items in process o f collection; beginning with 1961, demand deposits other than domestic commercial interbank and U.S. G ovt., less cash items in process o f collection. 9 F or reclassification o f certain deposits in 1961, see note 6 , p. 589, May 1964 B u lle t in . 10 Beginning June 30, 1969, reflects (1) inclusion o f consolidated reports (including figures for all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries) and (2) reporting o f figures for total loans and for individual categories o f securities on a gross basis—that is, before deduction o f valuation reserves. See also notes 1 and 6. 4 5,886 208 7,589 54 8,464 778 1,648 1,206 * 195 2,120 1,418 30 2,259 207 14,692 4,405 6,301 45 68 1,896 21,572 4,531 6,860 51 2,060 22,145 5,195 7,285 53,062 51,451 56,341 7,870 62,729 7,461 63,490 8,663 68,733 1,112 1,094 1,293 29 20 14 1,928 2,455 2,533 7,179 3,302 7,964 3,455 8,896 3,367 13,595 10 12 20 38 45 30 17 17 10 6,844 215 8,671 61 9,734 186 9,951 140,308 17,395 32,047 462 20,534 175,757 21,700 35,822 445 23,890 185,553 25,046 37,279 104 30 22 8,500 21,797 25,203 3,947 418 11,878 399 23,712 693 27,542 11,127 22,281 26,003 239 435 528 544 50 99 105 216 741 809 1,370 2,004 2,647 65 10,059 211 13,166 180,860 18,024 39,450 517 26,132 227,387 22,297 44,816 529 30,303 241,003 25,628 46,731 1 3 1 2 225 8 5,465 7 432 1,644 8,383 38,644 1,765 8,576 40,593 1,763 10,655 45,462 492 15,146 496 29,277 826 33,946 15 85 168 790 1,199 1,049 1969—Dec. 31 io 1971—j une 30 Dec. 31 59 103 111 9 3,216 9,661 4,665 23,595 3,900 27,424 Nonmember:3 1947—Dec. 31 866 34,383 211 13,221 181,443 18,360 39,978 517 26,221 228,176 22,547 45,311 529 30,384 242,055 25,912 47,211 2 526 796 929 2,210 4,527 4,993 111 IPC 3 Capi Bor tal row ac ings counts 476 719 902 288 377 426 4,409 1,290 1,517 6,353 2,359 1,636 6,749 1,935 1,682 243 4,542 160 9,563 332 11,045 1,967 2 2,566 1 2,844 86 4,609 50,439 9,881 11,464 249 8,863 62,312 12,153 12,826 225 10,516 66,362 14,799 13,197 31 52 45 146 6,082 219 12,224 337 14,177 4 1,982 11 2,525 23 2,934 54 4,920 70,768 1,820 12,766 143 9,033 85,521 2,656 14,499 167 10,505 90,298 3,118 15,114 6,858 12 1,596 25 3,269 41,135 55 5,688 52,419 85 6,494 56,502 6 172 965 7.931 847 9,489 866 9.932 N o t e . —D ata 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 m ember bank for the period June 30, 1969—June 30, 1970. Comparability o f figures for classes o f 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 26 WEEKLY REPORTING BANKS □ SEPTEMBER 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Wednesday O ther To brokers and dealers involving— Total loans and invest ments Total To com mer cial banks U.S. Treas ury se curi ties F o r purchasing o r carrying securities To others Total Other curities Com mer cial and indus trial To brokers and dealers Agri cul tural U.S. Treas ury secs. O ther secs. To nonbank financial institutions To others U.S. Treas ury secs. Other secs. Pers. and sales finan. cos., etc. O ther Large banks'— Total 1971 Aug. 4 ............... 11............... 18................ 2 5 265,418 264,797 266,380 266,399 8,829 8,594 8,825 8,600 8,263 8,119 8,083 7,699 409 386 504 679 144 72 172 158 181,714 181,671 183,615 183,873 81.528 81,356 82.248 82,310 2,210 2,207 2,191 2,185 482 613 724 780 4,074 3,791 3,907 3,951 148 149 118 119 2,403 2,394 2,405 2,428 7,057 7,180 6,764 6,601 7,081 7,121 7,226 7,105 2,708 2,693 2,684 2,690 7,064 6,495 6,637 6,433 9,558 9,553 9,576 9,613 6,362 6,339 6,275 6,144 6,247 9,807 9,839 9,972 10,097 10,188 1972 July 5 ............... 12................ 19................ 2 6 298,209 297,337 296,385 296,091 12,901 11,683 12,250 9,566 11,951 10,916 11,571 10,567 638 2,228 536 597 359 269 287 250 221 187 212 157 205,496 205,134 205,144 204,904 85,442 85,267 85,314 85,188 2,552 2.554 2.555 2.549 589 1,319 653 717 7,425 158 160 155 167 Aug. 2*............. 9*.............. 16*.............. 23 *.............. 30*............... 298,463 297,328 298,503 298,951 297,630 11,804 11,523 12,069 12,171 10,677 10,692 10,326 11,073 10,278 9,792 682 718 583 1,496 499 252 300 259 216 216 178 179 154 181 170 206,701 205,983 206,793 206,917 206,978 85,321 84,981 85,239 85,157 85,026 2.550 2.543 2.543 2,537 2,535 892 750 862 970 848 7,658 7,277 7,204 7,104 7,133 176 165 165 185 184 57,062 56,624 57,335 57,203 1,367 1,162 1,194 884 1,218 1,128 1,153 853 115 31 35 12 43,300 43,221 44,050 44,068 25,608 25,617 25,965 26,087 380 508 581 625 2,841 2,485 2,526 2,645 579 575 578 583 2,238 2,317 2,113 2,030 1,590 1,624 1,646 1,561 5 ................ 12................. 19................. 2 6 62,409 62,043 61,474 61 ,C— 1,816 1,219 1,264 1,039 1,768 1,196 1,223 1,028 47,076 47,018 46,618 46,280 24,452 24,224 24,270 24,126 478 1,179 546 584 4,857 4,640 4,534 4,582 674 663 663 657 2,039 1,735 1,809 1,752 2,488 2,470 2,516 2,521 2*.............. 9 v ............. 1 6 * ........... 2 3 * ........... 30*.............. 62,620 62,070 62,084 62,635 62,067 1,196 1,142 975 1,356 985 1,177 1,059 970 1,220 954 47,315 46,862 47,036 47,054 46,937 24,232 24,105 24,095 24,170 24,168 733 651 750 836 727 4,935 4,609 4,511 4,417 4,448 652 652 648 650 652 1.791 1.792 1,783 1,684 1,781 2,590 2,592 2,694 2,748 2,742 208,356 208,173 209,045 209,196 7,462 7,432 7,631 7,716 7,045 6,991 6,930 6,846 294 355 469 667 110 69 166 139 138,414 138,450 139,565 139,805 55,920 55,739 56,283 56,223 2,195 2,191 2,174 2,168 102 105 143 155 1,233 1.306 1,381 1.306 127 129 98 97 1,824 1,819 1,827 1,845 4,819 4,863 4,651 4,571 5,491 5,497 5,580 5,544 N ew York C ity 1971 Aug. 4 . ............. 11................. 18................. 2 5 1971 July Aug. 10 68 132 Outside N ew Y ork C ity 1971 Aug. 4 ............... 11............... 18............... 25............... 1972 July 5 . ............. 1 2 .............. 1 9 .............. 2 6 .............. 235,800 235,294 234,911 235,003 11,085 11,031 10,687 10,532 9,915 8,370 9,693 9,539 638 2,228 536 597 359 269 277 250 173 164 181 146 158,420 158,116 158,526 158,624 60,990 61.043 61.044 61,062 2.519 2.521 2.522 2.519 111 140 107 133 2,568 2,506 2,623 2,534 115 116 112 125 2,034 2,030 2,021 2,033 5,025 4,760 4,828 4,681 7,070 7,083 7,060 7,092 Aug. 2 p . . ......... 9j3, ........... 16*............ 2 3 * .......... 30 * ............ 235,843 10,608 235,258 10,381 236,419 11,094 236,316 10,815 235,563 9,692 9,515 9,267 10,103 9,058 8,838 682 718 583 1,364 499 252 232 259 216 216 159 164 149 177 139 159,386 159,121 159,757 159.863 160,041 61,089 60,876 61,144 60,987 60,858 2.520 2.513 2.513 2,498 2,495 159 99 112 134 121 2,723 2,668 2,693 2,687 2,685 135 124 124 144 144 2,078 2.085 2,075 2.085 2,123 4,571 4,547 4,492 4,460 4,466 7,217 7,247 7,278 7,349 7,446 For notes see p. A-30. SEPTEMBER 1972 □ WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Loans (cont.) Investments O ther (cont.) U.S. Treasury securities Notes and bonds m aturing— To commercial banks W ednesday Real estate D o mes tic F o r eign C on sumer instal ment F or eign govts.2 All other Total Bills Certif icates W ithin 1 yr. 1 to 5 yrs. A fter 5 yrs. Large banks— Total 1971 36,216 36,371 36,518 36,653 561 579 777 794 1,860 1,974 2,682 2,819 22,849 22,884 22,935 23,015 802 809 820 823 14,443 14,243 14,300 14,290 25,182 25,030 25,006 24,952 3,431 3,300 2,901 2,858 3,556 3,593 3,350 3,367 14,923 14,876 15,831 15,853 3,272 3,261 2,924 2,874 ........................... Aug. 4 ...................................... 11 ...................................... 18 ...................................... 25 42,025 42,213 42,395 42,561 1 ,403 1,432 1 ,429 1,339 2,838 2,869 2,966 2,932 25,733 25,747 25,792 25,900 1,023 1,018 1,020 1,011 16,978 16,668 16,811 16,688 26,225 25,696 25,581 25,804 3,901 3,523 3,422 3,498 4,823 4,780 4,841 5,014 14,728 14,694 14,714 14,667 2,773 2,699 2,604 2,625 ........................... July 5 ...................................... 12 ...................................... 19 ...................................... 26 42,742 42,922 43,219 43,366 43,432 1,376 1,377 1 ,368 1,475 1,450 2,997 2,977 2,955 2,927 2,869 26,008 26,089 26,167 26,276 26,379 1,029 1,050 1,043 1,034 1,078 17,053 16,937 17,058 16,910 16,834 25,770 25,466 25,246 25,417 25,639 3,268 3,072 2,997 3,131 3,549 5,328 5,308 4,281 4,582 4,641 14,489 14,415 14,860 14,448 14,292 2,685 2,671 3,108 3,256 3,157 ........................... Aug. 2p ....................................9 v ....................... \6 V ...................................... 23^ ...................................... 302* 1972 New York City 1971 3,813 3,824 3,853 3,857 195 211 278 303 911 977 1,383 1,328 1,874 1,877 1,894 1,891 554 558 561 558 2,681 2,612 2,635 2,561 4,378 4,310 4,424 4,597 741 663 525 645 522 502 446 404 2,774 2,800 3,203 3,294 341 345 250 254 ........................... Aug. 4 ...................................... 11 ......................................18 ......................................25 4,524 4,548 4,570 4,591 419 418 445 346 1,164 1,183 1,281 1,259 1,956 1,965 1,970 1,967 627 631 623 616 3,322 3,285 3,315 3,207 4,737 4,518 4,494 4,660 1,150 1,013 1,014 1,099 964 966 1,008 1,085 2,357 2,366 2,388 2,372 266 173 84 104 ........................... July 5 ...................................... 12 ...................................... 19 ...................................... 26 4,648 4,665 4,718 4,740 4,693 400 481 462 472 452 1,284 1,272 1,275 1,267 1,243 1,972 1,985 1,996 2,008 2,006 626 634 627 632 661 3,381 3,353 3,406 3,350 3,284 4,851 4,760 4,546 4,697 4,877 881 733 703 839 1,209 1,349 1,369 878 912 917 2,464 2,477 2,551 2,470 2,328 157 181 414 476 423 ........................... Aug. 2p .................................... 9 p ...................................... 16p ......................................23 p ......................................2>Qp 1972 Outside New York City 1971 20,804 20,720 20,582 20,355 2,690 2,637 2,376 2,213 3,034 3,091 2,904 2,963 12,149 12,076 12,628 12,559 2,931 2,916 2,674 2,620 ........................... Aug. 4 ......................................11 ......................................18 ......................................25 13,656 13,383 13,496 13,481 21,488 21,178 21,087 21,144 2,751 2,510 2,408 2,399 3,859 3,814 3,833 3,929 12,371 12,328 12,326 12,295 2,507 2,526 2,520 2,521 ........................... July 5 ...................................... 12 .......................................19 ...................................... 26 13,672 13,584 13,652 13,560 13,550 20,919 20,706 20,700 20,720 20,762 2,387 2,339 2,294 2,292 2,340 3,979 3,939 3,403 3,670 3,724 12,025 11,938 12,309 11,978 11,964 2,528 2,490 2,694 2,780 2,734 ........................... Aug. 2 p .................................. gp ....................... 16 p ......................................23 p ......................................30p 32,403 32,547 32,665 32,796 366 368 499 491 949 997 1,299 1,491 20,975 21,007 21,041 21,124 248 251 259 265 11,762 11,631 11,665 11,729 37,501 37,665 37,825 37,970 984 1 ,014 984 993 1,674 1,686 1,685 1,673 23,777 23,782 23,822 23,933 396 387 397 395 38,094 38,257 38,501 38,626 38,739 976 896 906 1,003 998 1,713 1,705 1,680 1,660 1,626 24,036 24,104 24,171 24,268 24,373 403 416 416 402 417 1972 For notes see p. A-30. EPORTING BANKS o SEPTEMBER 1972 S AND LIABILITIES OF URGE COMMERCIAL BANKS— Continue (In millions of dollars) Investments (cont.) O ther securities Obligations o f State and political subdivisions Tax war ra n ts3 All other Other bonds, corp. stock, and securities Certif. of partici pation4 Cash items in process of collec tion Re serves with F.R. Banks Cur rency and coin liab itie All others 7,801 7,675 7,466 7,424 34,967 35,089 34,851 34,954 1,364 1,342 1,282 1,260 5,561 5,396 5.335 5.336 31,875 31,516 30,303 29,811 20,057 17,972 18,588 19,311 3,220 3,486 3,494 3,615 343, 339, 340, 341, 8,449 8,856 8,534 8,881 37,301 37,585 37,401 37,104 1,556 1,553 1,527 1,532 6,281 6,263 6,247 6,295 35,551 30,060 29,878 27,826 21.326 17,799 21,005 20,503 3,456 3,894 3,775 3,900 386, 375, 377, 374, 8,946 9,081 9,278 9,186 9,053 37,276 37,285 37,172 37,340 37,275 1.568 1.569 1,541 1,547 1,549 6,398 6,421 6,404 6,373 6,459 30,040 27,030 29,385 26,076 27,012 21,966 21.326 21,532 19,877 21,295 3,651 3,686 3,703 3,851 3,924 380, 275, 379, 374, 376, 1,433 1,373 1,346 1,351 5,217 5,284 5,122 5,115 226 211 217 207 1,141 1,063 982 981 14,018 14,937 12,981 14,135 5,534 4,506 4,458 5,241 431 436 430 426 83, 83, 82, 83, 2,318 2,650 2,574 2,844 5,351 5,540 5,443 5,135 275 275 272 277 836 823 809 853 13,289 9,414 9,996 9,821 5,651 4.239 4,662 5,130 438 448 434 442 91, 84, 85, 85, 2,869 2,868 3,072 3,031 2,910 5,212 5,271 5,270 5,326 5,159 286 285 278 264 271 891 882 907 907 928 10,276 9,485 8,915 8,558 9,554 4,442 5.239 5,191 4,684 5,287 435 435 434 438 459 86. 85; 85! 84; 85; 6,368 6,302 6,120 6,073 29,750 29,805 29,729 29,839 1,138 1,131 1,065 1,053 4,420 4,333 4,353 4,355 17,857 16,579 17,322 15,676 14,523 13,466 14,130 14,070 2,789 3,050 3,064 3,189 259, 256; 258; 257; 6,131 6,206 5,960 6,037 31,950 32,045 31,958 31,969 1,281 1.278 1.255 1.255 5,445 5,440 5,438 5,442 22,262 20,646 19,882 18,005 15,675 13,560 16,343 15,373 3,018 3,446 3,341 3,458 295 290; 292; 289; 6,077 6,213 6,206 6,155 6,143 32,064 32.014 31,902 32.014 32,116 1,282 1,284 1,263 1,283 1.278 5,507 5,539 5,497 5,466 5,531 19,764 17,545 20,470 17,518 17,458 17,524 16,087 16,341 15,193 16,008 3,216 3,251 3,269 3,413 3,465 294 289; 293; 289; 290; SEPTEMBER 1972 □ WEEKLY REPORTING BANKS A 29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Deposits D emand Time and savings Domestic interbank Total IPC States and polit ical sub divi sions U.S. Govt. Com mer cial Foreign IPC Com M utual Govts., mer sav etc. 2 cial ings banks Certi fied and offi cers* checks T otal6 Sav ings Other States and polit ical sub divi sions D o mes tic inter bank Wednesday F or eign gov ts.2 Large banks— Total 1971 139,404 138,109 139,164 139,672 97,190 96,119 96,218 95,700 6,620 6,611 6,212 6,062 2,890 2,333 6,001 6,272 21,489 21,126 20,164 20,562 703 617 620 608 760 1,283 949 803 2,358 2,298 2,461 2,416 7,394 7,722 6,539 7,249 132,924 133,179 133,494 133,827 53,133 53,113 53,070 52,986 57,472 57,708 58,082 58,184 15.067 15,111 15.068 15,258 1,566 1,536 1,597 1,691 5,144 5,208 5,173 5,195 ...............Aug. 4 ..........................11 ..........................18 ..........................25 157,679 146,907 148,811 145,194 108,396 105,800 104,317 102,644 6,806 6,317 5,887 5,895 4,345 3,237 6,321 5,326 24,531 20,729 21,690 20,395 920 846 728 694 1,175 958 1,038 893 3,157 2,773 2,898 2,988 8,349 6,247 5,932 6,359 149,337 149,874 150,883 151,358 58,014 58,003 57,983 57,939 65,242 18,033 65,645 18,090 66,483 18,202 66,907 18,176 2,261 2,323 2,442 2,482 5,292 5,322 5,273 5,363 ...............July 5 ..........................12 ..........................19 ..........................26 147,379 140,911 143,100 138,859 140,296 104,096 101,382 104,684 102,010 102,300 6,749 5,999 6,266 5,811 6,055 4,467 3,396 1,976 2,043 1,715 20,957 20,140 20,195 19,350 20,359 747 700 688 632 681 953 800 774 715 837 2,959 2,926 2,984 2,719 2,996 6,451 5,568 5,533 5,579 5,353 152,123 152,996 153,485 154,475 155,538 57,892 57,925 57,901 57,868 57,836 67,564 68,466 68,942 69,812 70,794 18,332 18,320 18,286 18,436 18,487 2,474 2,433 2,480 2,501 2,550 5,362 5,358 5,381 5,355 5,329 ...............Aug. 2 p ..........................9 p ..........................16p ..........................23 p ..........................30* 1972 New York City 1971 39,282 39,928 38,495 40,456 21,711 20,764 20,896 21,626 509 795 769 468 545 428 1,545 1,506 9,610 9,973 8,747 9,888 378 319 308 311 586 1,116 777 635 1,648 1,598 1,695 1,611 4,295 4,935 3,758 4,411 23,013 22,980 23,379 23,346 5,191 5,176 5,169 5,151 12,439 12,339 12,659 12,568 1,515 1,548 1,542 1,566 751 746 820 886 2,928 3,014 3,026 3,013 ...............Aug. 4 ..........................11 ..........................18 .......................... 25 45,187 38,053 39,529 38,853 24,397 22,596 22,455 22,375 473 452 366 294 637 11,328 630 8,397 1,307 9,415 1,118 8,863 536 460 385 362 1,039 812 858 748 2,290 1,945 2,039 2,107 4,487 2,761 2,704 2,986 25,140 25,407 25,846 25,815 5,745 5,732 5,724 5,714 13,446 13,578 13,924 13,758 1,957 2,075 2,112 2,144 1,088 1,115 1,225 1,249 2,814 2,824 2,778 2,865 ...............July 5 ......................... 12 ..........................19 ..........................26 38,806 36,860 36,504 35,912 37,256 22,651 21,716 22,336 22,043 22,169 352 357 460 381 363 398 369 348 319 349 810 653 633 558 674 2,116 2,032 2,112 1,873 2,153 3,006 2,483 2,322 2,458 2,291 26,023 26,182 26,395 26,819 27,268 5.695 5.696 5,699 5,702 5,673 13,987 14,343 14,527 14,901 15,384 2,183 2,060 2,043 2,097 2,070 1,243 1,186 1,234 1,246 1,280 2,831 2,813 2,809 2,787 2,775 ...............Aug. 2 p ..........................9 p ..........................16* ..........................23* ..........................30* 1972 832 633 253 315 274 8,641 8,617 8,040 7,965 8,983 Outside New York City 1971 100,122 98,181 100,669 99,216 75,479 75,355 75,322 74,074 6,111 5,816 5,443 5,594 2,345 1,905 4,456 4,766 11,879 11,153 11,417 10,674 325 298 312 297 174 167 172 168 710 700 766 805 3,099 109,911 2,787 110,199 2,781 110,115 2,838 110,481 47,942 47,937 47,901 47,835 45,033 45,369 45,423 45,616 13,552 13,563 13,526 13,692 815 790 777 805 2,216 2,194 2,147 2,182 ...............Aug. 4 ..........................11 ..........................18 ..........................25 112,492 108,854 109,282 106,341 83,999 83,204 81,862 80,269 6,333 5,865 5,521 5,601 3,708 2,607 5,014 4,208 13,203 12,332 12,275 11,532 384 386 343 332 136 146 180 145 867 828 859 881 3,862 3,486 3,228 3,373 124,197 124,467 125,037 125,543 52,269 52,271 52,259 52,225 51,796 52,067 52,559 53,149 16,076 16,015 16,090 16,032 1,173 1,208 1,217 1,233 2,478 2.498 2,495 2.498 ...............July 5 ..........................12 ..........................19 ..........................26 108,573 104,051 106,596 102,947 103,040 81,445 79,666 82,348 79,967 80,131 6,397 5,642 5,806 5,430 5,692 3,635 2,763 1,723 1,728 1,441 12,316 11,523 12,155 11,385 11,376 349 331 340 313 332 143 147 141 157 163 843 894 872 846 843 3,445 3,085 3,211 3,121 3,062 126,100 126,814 127,090 127,656 128,270 52,197 52,229 52,202 52,166 52,163 53,577 54,123 54,415 54,911 55,410 16,149 16,260 16,243 16,339 16,417 1,231 1,247 1,246 1,255 1,270 2,531 2,545 2,572 2,568 2,554 ...............Aug. 2 p ....................... 9 j> ! ....................... 16* ..........................23* ..........................30p 1972 For notes see p. A-30. A 30 WEEKLY REPORTING BANKS □ SEPTEMBER 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Reserves for— Borrowings from— Wednesday Federal funds F.R. pur chased, Banks etc. 7 Others Other liabili ties, etc.8 Loans M em oranda Total capital Secur ac ities counts Total loans (gross) ad justed 9 Large negotiable Total time C D ’s loans included in time and De and savings deposits n invest mand ments deposits ad (gross) Issued Issued justed 1o Total ad to to justed 9 IPC ’s others Gross liabili ties o f banks to their foreign bran ches Large banks— Total 1971 23,195 21,657 20,827 19,499 552 454 1,017 1,692 5 ........................ 12........................ 19........................ 2 6 30,696 29,362 29,495 28,653 420 58 47 593 2 * ...................... 30,164 31,162 31,997 30,285 29,539 1,200 777 439 809 1,178 6,532 5,913 5,520 4,584 100 1,025 Aug. 4 ........................ 11........................ 18........................ 2 5 July 1,146 15,750 1,140 14,997 1,058 15,043 1,203 15,269 4,013 4,012 4,011 4,008 1,518 1,647 1,638 1,543 14,147 14,796 14,401 14,623 76 113 77 77 26,161 26,156 26,129 26,147 181,719 181,567 183,580 183,980 256,594 256,099 257,520 257,906 83,150 83,134 82,696 83,027 30,428 18,569 11,859 30,750 18,783 11,967 31,302 19,239 12,063 31,512 19,273 12,239 1,912 1,104 1,374 1,409 4.159 4,148 4,142 4.159 28,359 28,350 28,281 28,354 205,311 206,386 204,750 204,569 285,123 286,339 284,040 284,185 93,252 92,881 90,922 91,647 35,685 36,358 37,047 37,706 22,499 22,976 23,518 23,938 13,186 13,382 13,529 13,768 824 1,375 974 1,342 1,488 15,459 1,528 14,952 1,486 15,810 1,555 15,661 1,475 15,258 4,171 4.166 4,168 4.167 4,181 28,514 28,547 28,489 28,537 28,584 206,437 205,803 206,421 207,335 206,413 286,395 285,625 286,062 287,198 286,388 91,915 90,345 91,544 91,390 91,210 38,231 38,937 39,389 40,288 41,247 24,243 25,031 25,418 26,213 27,038 13,988 13,906 13,971 14,075 14,209 1,829 i;2 5 0 1,778 1,839 1,262 202 207 209 311 6,684 6,165 6,373 6,118 1.191 1.191 1,193 1,196 6,774 6,786 6,778 6,765 43,254 43,044 43,813 43,796 55,649 55,285 55,904 56,047 15,109 10,873 14,590 10,880 15,222 11,437 14,927 11,456 7,185 7,112 7,562 7,532 3,688 3,768 3,875 3,924 1,209 759 977 720 4,658 5,248 4,855 5,160 1,218 1,218 1,213 1.224 7,165 7,161 7,158 7,135 46,705 46,623 46,214 45,945 60,222 60,429 59,806 59,714 19,933 19,612 18,811 19,051 12,279 12,594 13,061 13,129 8,284 8,432 8,812 8,707 3,995 4,162 4,249 4,422 553 1,013 653 1,051 7.202 7.202 7,188 7,183 7,258 46,934 46,464 46,579 46,718 46,516 61,043 60,530 60,652 60,943 60,661 19,057 18,125 19,296 19,074 18,445 13.304 13,542 13,830 14.304 14,678 8,827 9,243 9,498 9,947 10,354 4,477 4,299 4,332 4,357 4,324 1,446 972 1,448 1,543 931 19,387 19,370 19,351 19,382 138,465 138,523 139,767 140,184 200,945 200,814 201,616 201,859 68,041 19,555 68,544 19,870 67,474 19,865 68,100 20,056 11,384 11,671 11,677 11,741 8,171 8,199 8,188 8,315 703 345 397 689 1972 Aug. 9 p ....................... 16 * ...................... 23 p ...................... 30 p ...................... New York City 1971 Aug. 4 ........................ 11........................ 18........................ 2 5 20 1972 July Aug. 5 ........................ 12........................ 19........................ 2 6 7.471 6; 749 6,250 6,300 160 413 411 447 373 2 p ...................... 9 p ...................... 16*...................... 23*...................... 30*...................... 6,324 8,032 7,755 6,962 6,794 511 275 37 570 482 371 335 339 354 316 5,805 5,320 5,686 5,837 5,277 1.224 1,221 1,222 1,227 1,235 16,663 15,744 15,307 14,915 532 454 917 667 944 933 849 892 9,066 8,832 8,670 9,151 2,822 2,821 2,818 2,812 Outside New York City 1971 Aug. 4 ........................ 11........................ 18........................ 2 5 76 113 77 77 1972 July 5 ........................ 12........................ 19........................ 2 6 23,225 22,613 23,245 22,353 420 58 47 433 1,105 1,236 1,191 1,170 9,489 9,548 9,546 9,463 2,941 2,930 2,929 2,935 21,194 21,189 21,123 21,219 158,606 159,763 158,536 158,624 224,901 225,910 224,234 224,471 73,319 73,269 72,111 72,596 23,406 14,215 23,764 14,544 23,986 14,706 24,577 15,231 9,191 9,220 9,280 9,346 271 362 321 291 Aug. 2 p ...................... 9 p ...................... 16p ...................... 23*...................... 30*...................... 23,840 23,130 24,242 23,323 22,745 689 502 402 239 696 1,117 9,654 1,193 9,632 1,147 10,124 1,201 9,824 1,159 9,981 2,947 2.945 2.946 2,940 2.946 21,312 21,345 21,301 21,354 21,326 159,503 159,339 159,842 160,617 159,897 225,352 225,095 225,410 226,255 225,727 72,858 72,220 72,248 72,316 72,765 24,927 25,395 25,559 25,984 26,569 9,511 9,607 9,639 9,718 9,885 383 278 330 296 331 1 Includes securities purchased under agreements to resell. 2 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. 15,416 15,788 15,920 16,266 16,684 8 Includes minority interest in consolidated subsidiaries. 9 Exclusive o f loans and Federal funds transactions with domestic com mercial banks. 10 All demand deposits except U.S. Govt, and domestic commercial banks, less cash items in process o f collection. 11 Certificates o f deposit issued in denominations o f $100,000 or more. SEPTEMBER 1972 □ BUSINESS LOANS OF BANKS A 31 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1972 Industry Aug. 30 D urable goods m anufacturing: Primary m etals.................................... M achinery............................................ Transportation equipm ent................ Other fabricated metal p roducts. . . Other durable go o d s.......................... Nondurable goods manufacturing: Food, liquor, and to b acco ............... Textiles, apparel, and leather........... Petroleum refining.............................. Chemicals and ru b b e r....................... O ther nondurable g oods................... Mining, including crude petroleum and natural gas............................. T rade: Commodity dealers................... O ther wholesale......................... R etail............................................ T ransportatio n ........................................ C om m unication....................................... O ther public utilities.............................. C onstruction ............................................ Services..................................................... All other domestic loans....................... Bankers’ acceptances.............................. Foreign commercial and industrial loans.................................................. Total classified lo an s.............................. Aug. 23 1972 Aug. 16 Aug. 9 Aug. 2 Aug. 1972 July June 1971 1972 1971 II I IV 1st half 2nd half 1,978 4,211 2,228 1,724 2,850 1,974 4,200 2,245 1,716 2,832 1,973 4,209 2,217 1,742 2,828 1,976 4,138 2,203 1,684 2,772 2,008 4,138 2,236 1,686 2,800 -6 8 4 39 22 65 -4 7 -8 -1 7 0 -9 -4 1 -3 3 -5 5 -6 0 21 76 30 -7 4 -3 1 7 -2 2 185 54 -9 1 14 17 146 -1 6 2 -6 0 0 -1 0 1 -2 5 9 -3 2 8 84 -1 6 5 -3 0 3 -5 331 -2 8 2 -8 3 1 -7 7 -3 8 9 -3 1 7 2,730 2,981 915 1,935 1,666 2,761 3,000 942 1,910 1,654 2,740 3,016 904 1,916 1,650 2,725 2,984 957 1,899 1,652 2,721 2,960 965 1,913 1,671 54 48 -6 0 -4 6 -4 51 78 -1 4 -1 4 7 16 58 88 -2 9 -3 9 -2 3 -4 1 281 -8 8 -2 3 -9 3 -2 2 7 281 -9 7 -1 0 3 -7 5 205 -2 7 3 56 -4 3 7 -9 6 -2 6 8 562 -1 8 5 -1 2 6 -1 6 8 498 -3 0 4 52 -5 9 2 -3 6 3,687 1,251 4,468 4,666 5,430 1,577 3,060 4,420 8,462 5,644 1,230 3,692 1,253 4,459 4,606 5,395 1,570 3,048 4,441 8,531 5,705 1,241 3,669 1,233 4,491 4,624 5,404 1,592 2,978 4,438 8,525 5,817 1,278 3,671 1,248 4,492 4,571 5,413 1,594 2,934 4,331 8,496 5,921 1,323 3,648 1,190 4,474 4,672 5,476 1,594 2,934 4,343 8,488 6,003 1,346 42 42 -3 0 -5 0 -3 3 -2 4 266 84 -8 -2 9 3 -1 1 2 41 31 6 197 -1 8 3 166 95 38 -1 3 4 241 -9 9 -7 6 -1 8 4 77 9 77 151 40 171 325 -3 4 8 -1 8 3 -6 6 -3 0 4 111 138 33 195 247 325 358 -1 3 4 -3 0 0 -1 3 7 -1 9 4 -5 2 259 -3 3 -7 4 -2 7 4 156 372 176 -5 5 3 -1 7 460 132 -3 4 0 -7 8 -2 4 9 176 77 276 305 696 -2 0 3 -4 9 8 59 397 121 -2 7 481 730 42 -8 5 3 187 532 524 -2 5 9 —324 -2 2 5 525 183 289 610 1,158 3,436 3,452 3,444 3,471 3,460 70,549 70,627 70,688 70,455 70,726 -2 0 -8 2 59 167 19 82 83 524 89 -3 4 6 254 -3 0 3 172 178 578 1,500 -1 6 2 235 233 1,136 47 335 1,183 1,614 Total commercial and industrial loans. *>85,026 85,157 85,239 84,981 85,321 See N ote to table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions o f dollars) O utstanding N et change during— 1972 1971 1972 1971 1972 Industry July 26 June 28 May 31 Apr. 26 Mar. 29 Feb. 23 Jan. 26 Dec. 29 II 1,313 1,968 1,266 1,354 1,935 1,244 1,369 1,958 1,360 1,381 1,986 1,370 1,367 2,005 1,389 1,342 2,072 1,493 1,330 2,001 1,553 1,315 2,179 1,605 1,362 2,285 1,620 27 -1 1 4 -1 3 3 -2 0 -2 1 3 -1 2 7 -1 6 2 -1 9 4 -6 9 -6 2 -5 7 130 7 -3 2 7 -2 6 0 713 1,147 711 1,130 677 1,183 685 1,144 695 1,163 688 1,145 683 1,118 699 1,117 713 1,135 -1 1 38 -2 5 10 -6 2 -7 9 -3 9 -1 9 -3 6 48 1,084 1,034 931 947 909 912 937 987 1,021 19 -1 0 9 36 17 -9 0 689 652 1,188 882 701 685 1,200 860 666 694 1,234 875 646 726 1,245 930 667 714 1,238 960 651 757 1,226 980 580 818 1,315 973 567 848 1,330 1,010 576 892 1,441 1,024 15 -6 3 8 -1 0 5 75 -1 3 5 -2 1 5 -4 4 -3 1 35 -3 4 4 6 10 -3 4 -3 2 -2 90 -1 9 8 -2 0 7 -1 4 9 2,724 107 866 1,375 4,197 516 1,643 1,453 3,811 1,491 2,723 110 905 1,345 4,243 517 1,471 1,392 3,747 1,549 2,667 109 902 1,297 4,314 502 1,423 1,404 3,706 1,465 2,785 128 912 1,332 4,285 427 1,218 1,371 3,555 1,787 2,870 125 889 1,328 4,400 460 1,161 1,376 3,593 1,805 2,872 125 927 1,340 4,383 440 1,160 1,417 3,657 1,703 2,891 132 883 1,352 4,314 417 1,191 1,327 3,545 1,602 2,927 119 915 1,349 4,397 432 1,305 1,257 3,542 1,545 3,039 115 893 1,383 4,440 427 1,316 1,244 3,488 1,431 -2 0 5 -1 6 -2 5 -4 3 -6 9 62 263 -1 3 49 -2 3 8 -1 6 7 10 34 -4 3 -5 7 13 -1 5 6 173 169 272 105 6 46 -8 8 -1 3 1 7 44 52 141 41 -5 6 12 11 57 -2 6 -4 8 178 5 89 141 -3 7 2 -6 9 -8 6 -1 2 6 75 107 160 218 34 2,064 2,028 2,033 1,995 1,981 1,939 1,898 1,995 2,076 94 -1 3 7 184 -4 3 31,229 30,860 31,440 31,921 -4 6 0 -6 9 2 -4 5 7 275 -1 ,1 5 2 Aug. 30 Durable goods manufactur ing : Primary metals..................... M achinery............................ Transportation equipment. O ther fabricated metal prod u cts............................ Other durable goods........... Nondurable goods manufac turing: Food, liquor, and tobacco. Textiles, apparel, and leather................................ Petroleum refining............... Chemicals and rubber........ O ther nondurable g o o d s. . Mining, including crude pe troleum and natural gas. Trade: Commodity d e a le rs.. O ther wholesale......... R etail............................ T ransportation......................... C om m unication....................... O ther public utilities............... C onstruction............................ Services...................................... All other domestic loans . . . . Foreign commercial and in dustrial loans................... Total loans................................ 31,149 30,884 30,769 30,855 31,095 N o t e . —A bout 160 weekly reporting banks are included in this series; these banks classify, by industry, commercial and industrial loans am ount ing to about 90 per cent o f such loans held by all weekly reporting banks and about 70 per cent o f those held by all commercial banks. For description o f series see article “ Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 B u lle t in , p. 209. I IV III 1st half Commercial and industrial “ term ” loans are all outstanding loans with an original m aturity o f more than 1 year and all outstanding loans granted under a formal agreement—revolving credit or standby—on which the original maturity o f the commitment was in excess o f 1 year. A 32 DEMAND DEPOSIT OWNERSHIP □ SEPTEMBER 1972 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions o f dollars) Type o f holdei Class o f bank, and quarter or month Total deposits, IPC Financial business Nonfinancial business Consumer Foreign All other 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— M ar........................................................................................ Ju n e........................................................................................ Sept........................................................................................ 18.3 17.9 17.9 18.5 86.1 89.9 91.5 98.4 54.1 56.0 57.5 58.6 1.4 1.3 1.2 1.3 10.4 10.7 9 .7 10.7 170.3 175.8 177.9 187.5 1972—M ar........................................................................................ 18.1 17.9 93.9 97.1 59.1 59.9 1.3 1.4 10.6 10.9 183.1 187.2 14.1 13.5 13.8 13.9 13.7 14.4 54.7 53.4 54.6 55.5 55.8 58.6 24.8 24.1 24.5 24.5 24.6 24.6 1.2 1.2 1.2 1.1 1.1 1.2 5 .4 5.1 5.5 5.4 5 .4 5.9 100.3 97.2 99.6 100.4 100.7 104.8 14.4 13.7 13.9 14.3 13.7 14.1 14.4 56.8 55.4 56.1 56.9 56.2 57.1 58.4 25.4 24.4 25.2 27.0 25.4 25.8 26.0 1.1 1.1 1.2 1.2 1.2 1.3 1.3 5.9 5.9 5.9 5.9 5.7 5.9 5.9 103.7 100.5 102.1 105.4 102.1 104.2 106.1 All commercial banks: W eekly reporting banks: 1971—July......................................................................................... Sept........................................................................................ O ct..................................................................................... 1972—Jan .......................................................................................... Feb......................................................................................... M ar........................................................................................ A pr......................................................................................... July*....................................................................................... 1 Including cash items in process o f collection. N o t e .— Daily-average balances maintained during m onth as estimated from reports supplied by a sample o f commercial banks. F o r a detailed description o f the type of depositor in each category, see June 1971 B u lle t in , p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions o f dollars) Class o f bank Dec. 31, 1969 All com m ercial............................ Insured...................................... N ational m em ber................... State m em ber........................... All m em ber.................................. 1,131 1,129 688 188 876 Dec. 31, 1970 804 803 433 147 580 June 30, 1971 746 745 407 129 536 Dec. 31, 1971 680 677 387 95 482 N o te . —These hypothecated deposits are excluded from Time deposits and Loans at all commercial banks beginning with June 30, 1966, as shown in the tables on pp. A-20, A-21, and A-26—A-30 (consumer instal ment loans), and in the table at the bottom o f p. A -18. These changes Class o f bank All member—Cont. O ther reserve city................ C ountry................................. All nonm em ber........................ In su red ................................... N oninsured........................... Dec. 31, 1969 304 571 255 253 2 Dec. 31, 1970 143 437 224 223 1 June 30, 1971 125 411 210 209 1 Dec. 31, 1971 112 371 197 195 2 resulted from a change in Federal Reserve regulations. See June 1966 B u lle t in , p. 808. These deposits have not been deducted from Time deposits and Loans for commercial banks as shown on pp. A-22 and A-23 and on pp. A-24 and A-25 (IPC only for time deposits). SEPTEMBER 1972 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 33 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (A m o u n ts o u t s t a n d i n g ; in m illio n s o f d o lla r s ) To own subsidiaries, foreign branches, holding companies, and other affiliates To all others except banks By type o f loan By type o f loan D ate Total Total Commercial and industrial Commercial and industrial All other All other 1972—M ay 3 ........... 10........... 17........... 2 4 ........... 31........... 2,610 2,571 2,485 2,446 2,450 1,618 1,612 1,557 1,564 1,472 992 959 928 882 978 1,654 1,659 1,670 1,660 1,674 368 357 r362 366 362 1,286 1,302 *•1,308 1,294 1,312 June 7 ........... 14........... 2 1 ........... 2 8 ........... 2,413 2,346 2,268 2,296 1,513 1,499 1,439 1,422 900 847 829 874 1,697 1,688 1,680 1,675 374 366 357 353 1,323 1,322 1,323 1,322 July 5 ........... 12 19........... 2 6 ........... 2,238 2,217 2,304 2,327 1,298 1,347 1,384 1,426 940 870 920 901 1,666 1,662 1,710 1,687 336 331 368 340 Aug. 2 ........... 9 ........... 16........... 2 3 .......... 3 0 ........... 2,381 2,481 2,432 2,520 2,380 1,433 1,516 1,524 1,519 1,550 948 965 908 1,001 830 1,688 1,688 1,698 1,699 1,701 334 320 316 317 321 1,330 1,331 1,342 1,347 1,354 1,368 1,382 1,382 1,380 N o t e .— A m o u n ts s o ld u n d e r r e p u r c h a s e a g re e m e n t a r e e x c lu d e d . F ig u re s in c lu d e s m a ll a m o u n t s s o ld b y b a n k s o t h e r t h a n la rg e w e e k ly r e p o r tin g b a n k s . COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS9 ACCEPTANCES OUTSTANDING (In millions o f dollars) Commercial and finance company paper Placed through dealers End o f period D ollar acceptances Total Based on— Held by— Placed directly Accepting banks F.R. Banks Total Others Bank Bank related O th er1 related O ther2 5 6 7 8 9 0 9,058 13,279 16,535 20,497 31,709 31,765 1971—July. Aug. Sept. O ct.. Nov. Dec. ^ Dec. 29,746 30,057 29,946 31,205 31,164 29,934 31,103 469 454 395 454 406 495 495 11,001 11,494 11,909 11,897 11,825 10.923 10.923 1972—Jan.. Feb. M ar. A pr. M ay June July. 32,167 32,579 32,681 32,814 33,055 33,482 33,891 505 525 545 532 517 542 604 11,922 12,262 12,233 12,394 12,043 12,325 12,319 196 196 196 196 196 197 1,903 3,089 4,901 7,201 1,216 10,601 409 12,262 Total Bills bought Own b ills a c c t. Im Ex ports ports from into United United States States All other 7,155 10,190 11,634 13,296 3,078 16,814 1,940 17,154 3,392 3,603 4,317 4,428 5,451 7,058 1,223 1,198 1,906 1,544 1,567 2,694 1,094 983 1,447 1,344 1,318 1,960 129 215 459 200 249 735 187 193 164 58 64 57 144 191 156 109 146 250 1,837 2,022 2,090 2,717 3,674 4,057 792 997 1,086 1,423 1,889 2,601 974 829 989 952 1,153 1,561 1,626 1,778 2,241 2,053 2,408 2,895 1,339 1,338 1,505 1,527 1.624 1.478 1.478 16,937 16,771 16,137 17,327 17,309 17,038 18,207 7,454 8,377 8,148 7,811 7,479 7,889 2,594 2,612 2,803 3,000 2,852 3,480 2,168 2,131 2,227 2,350 2,204 2,689 426 481 575 650 648 791 55 107 51 52 58 261 228 245 259 261 258 254 4,577 5,413 5,036 4,499 4,312 3,894 3,118 3,405 3,286 3,148 2,848 2,834 1,388 1,505 1,470 1,366 1,392 1,546 2,948 3,467 3,391 3,296 3,239 3,509 1,582 1.624 1,627 1,644 1,482 1,429 1,652 18,158 18,168 18,276 18,244 19,013 19,186 19,316 7,601 7,935 7,985 7,734 7,443 7,069 6,643 2,917 3,123 3,083 2,840 2,874 2,817 2,430 2,157 2,408 2,246 2,009 2,117 2,082 1,873 761 715 837 830 757 735 557 75 63 143 83 143 73 63 253 267 263 265 261 251 263 4,356 4,482 4,496 4,547 4,165 3,927 3,887 2,558 2,589 2.597 2.597 2,683 2,657 2,492 1,584 1,717 1,774 1,707 1,596 1,569 1,606 3,458 3,629 3,613 3,431 3,164 2,843 2,545 D ata for commercial and finance company paper on new basis beginning Dec. 1971. The new series reflects inclusion o f paper issued directly by real estate investment trusts and several additional finance companies. Own F or eign corr. 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. A 34 INTEREST RATES □ SEPTEMBER 1972 PRIME RATE CHARGED BY BANKS (Per cent per annum) Rate In effect during— 192 9 51/2-6 193 193 193 193 3 Vi-6 2% -5 3V4--4 1 % -4 0 1 2 3 1934— 1947 (Nov.) Effective date Effective date 1956—Apr. Aug. 1 3 ... 2 1 ... 1957—Aug. 6 ... Rate Effective date Rate m 4 1969—Jan. Mar. June 41/2 1970—Mar. 25 Sept. 2 1 .. .. Nov. 12, , , 2 3 .......... Dec. 2 2 .......... 1958—Jan. 2 2 ... Apr. 2 1 ... Sept. 1 1 ... 4 1959—May 1 8 ... Sept. 1 ... 41/2 1960—Aug. 2 3 . .. 4% 3% 4 5 1947—Dec. i. m 1965—Dec. 6 ... 1948— Aug. 1 2 1950—Sept. 2 2 ........... 2% 1966—M ar. June Aug. 1 0 ... 2 9 ... 1 6 ... 1951—Jan. Oct. Dec. 8 ........... 17........... 19........... 21/z 234 3 1967—Jan. 26-27 M ar. 2 7 ... Nov. 2 0 ... 5% -5M 5% 6 1953—Apr. 27........... 3% 1954—Mar. 17........... 3 1955—Aug. Oct. 4 .......... 1 4.......... 3% 3y2 1968—Apr. 1 9 ... Sept. 2 5 ... Nov. 1 3 ... Dec. 2 ... 1 8 ... 61/2 6 -6% 61/4 6% 6% 1 9 7 1 -Ja n . Feb. M ar. 5 5V4 5y4 6 7 .......... 17.......... 9 ........... 6 15 1 8 .......... 16.......... 11 19.......... 1971—Apr. 2 3 ........... M ay 11........... 6 ........... July 7........... Oct. 2 0 .......... 1........... Nov. 4 .......... 8 .......... 2 2 .., . 29, , Dec. 6 .......... 2 7 .......... 31........... 7 m 81/2 8 m 7M Effective date Rate 1972—Jan. 3 ........... 17........... 2 4........... 31........... Feb. 2 8 ........... M ar. 13........... 2 3 ........... 27 ........... Apr. 3 ........... 5 ........... 17........... M ay 1........... 30........... June 12........... 2 6 ........... 29........... July 3 ........... 10........... 7 634 6i/i 6% 6 5 14-51/i 51/4 514-51/2 51/2 5 Vi-6 6 534 534*-55/ l 5i/2*-55/8 51/2* 5% -5% * 514-51/2* 5i4-53/851/ 2 * 514-51/2* 514* 1 7 .......... 31........... Aug. 3 ........... 7 ........... 14........... 2 1 ........... 5-5i/8-5 i4 * 434-514* 45/8-5* 41/ 2- 434* 43/8-41/2434* 41/2- 434* 434* 4 % * -4 % -5 434 *-5 5* 5*-5V4 5*-5i/8-5 i4 5 5 *-51/8 5-514 *-5 3/s 5 -5 14 *-5 3/s 514 *-5 3/s 514 *-53/851/2 5 14 *-51/2 514 *-5 3/851/2 5 *4-51/2* 514 *-5i/2 514 514 *-53/8 1 D ate o f change not available. N o t e . —Beginning Nov. 1971, several banks adopted a floating prim e rate keyed to money m arket variables. Asterisk denotes prime rate charged by the majority o f commercial banks. RATES ON BUSINESS LOANS OF BANKS Size o f loan (in thousands o f dollars) A lls izes 1-9 10-99 100-499 500-999 1,000 and over Center May 1972 Feb. 1972 M ay 1972 Feb. 1972 May 1972 Feb. 1972 May 1972 Feb. 1972 M ay 1972 Feb. 1972 May 1972 Feb. 1972 5.76 5.27 5.91 5.60 6.11 5.81 6.08 5.57 5.28 5.72 5.64 5.47 5.71 5.55 5.44 4.97 5.54 5.46 5.76 5.60 5.46 5.33 5.21 5.46 5.34 5.30 5.60 5.35 5.31 5.38 5.45 5.17 5.29 5.58 5.07 5.60 5.34 5.44 5.55 5.56 5.69 5.72 5.60 5.35 6.09 5.73 6.22 5.47 5.31 5.22 5.28 5.32 5.86 6.44 5.10 5.57 5.44 5.76 5.86 4.91 5.85 5.55 5.18 5.05 5.38 5.73 5.74 5.73 5.04 6.19 5.83 6.51 6.08 6.78 6.42 6.02 5.87 5.54 6.01 6.12 7.05 6.29 5 .25 6.13 5.62 6.88 6.04 9.53 6.68 5.04 5.78 5.64 5.85 5.84 5.50 6.35 5.79 5.44 5.29 5.52 5.17 5.50 5.87 5.87 Short-term 35 centers......................................... New Y ork C ity .......................... 7 Other N o rth east..................... 8 N orth C entral......................... 7 Southeast.................................. 8 Southw est................................ 4 West C oast............................... 5.59 5.28 5.81 5.54 5.78 5.88 5.60 5.52 5.35 5.72 5.37 5.87 5.79 5.39 7.07 6.54 7.25 6.70 7.30 7.02 7.45 7.08 6.47 7.20 6.72 7.39 7.05 7.41 6.53 6.10 6.73 6.31 6.77 6.44 6.77 6.44 5.92 6.58 6.21 6.73 6.43 6.69 5.94 5.61 6.10 5.85 5.96 6.04 6.12 Revolving credit 35 centers......................................... New Y ork C ity ........................ .. 7 O ther N o rth east................... .. 8 N orth C entral....................... .. 7 Southeast.................................. 8 Southw est................................. 4 W est C o ast............................ .. 5.59 5 .44 5.82 5.84 5.13 5.98 5.57 5.24 5.07 5.41 5.67 5.76 5.91 5.13 6.52 5.92 7.56 6.36 5.95 6.52 6.90 6.60 6.06 7.37 7.14 6.03 6.65 6.67 6.28 5.97 6.73 6.00 6.05 6.48 6.37 6.16 5.51 6.56 5.95 6.13 5.94 6.36 5.69 5.41 5.87 5.74 5.44 5.91 5.72 Long-term 35 centers......................................... New Y ork C ity ........................ .. 7 Other N o rth east................... .. 8 N orth C entral....................... .. 7 Southeast.................................. 8 Southw est.............................. .. 4 West C o ast.............................. 5.87 5.66 6.03 5.92 6.45 6.37 5.80 5.64 5.35 5.99 5.42 7.07 6.16 5.80 7.03 5.55 7.76 6.83 6.58 6.92 7.49 6.98 5.75 7.59 6.39 7.81 6.57 7.55 N o t e . —Beginning Feb. 1971 the Quarterly Survey o f Interest Rates on Business Loans was revised. F o r description o f revised series see pp. 46877 o f the June 1971 B u lle t in . 6.65 6.26 6.60 6.94 6.63 6.95 6.35 6.85 5.77 7.07 6.75 9.03 6.67 6.24 6.26 5.99 6.45 6.00 7.10 6.33 6.37 SEPTEMBER 1972 □ INTEREST RATES A 35 MONEY MARKET RATES (Per cent per annum) Finance Prime coml. paper, 4- to 6m o n th s1 Period CO. paper placed directly, 3- to 6m onths2 U.S. G overnment securities (taxable)4 Prime bankers’ accept ances, 90 days1 Federal funds ra te 3 3-month bills5 6-m onth bills5 9- to 12-month issues R ate on new issue M arket yield Rate on new issue M arket yield 1-year bill (mar ket yield)5 O ther6 3- to 5year issues7 1964.............................. 1965.............................. 1966.............................. 1967.............................. 1968.............................. 1969.............................. 3.97 4.38 5.55 5.10 5.90 7.83 3.83 4.27 5.42 4.89 5.69 7.16 3.77 4.22 5.36 4.75 5.75 7.61 3.50 4.07 5.11 4.22 5.66 8.22 3.549 3.954 4.881 4.321 5.339 6.677 3.54 3.95 4.85 4.30 5.33 6.64 3.686 4.055 5.082 4.630 5.470 6.853 3.68 4.05 5.06 4.61 5.48 6.84 3.74 4.06 5.07 4.71 5.45 6.77 3.76 4.09 5.17 4.84 5.62 7.06 4.06 4.22 5.16 5.07 5.59 6.85 1970.............................. 1971............................... 7.72 5.11 7.23 4.91 7.31 4.85 7.17 4.66 6.458 4.348 6.42 4.33 6.562 4.511 6.55 4.51 6.53 4.67 6.90 4.75 7.37 5.77 1971—Aug................... Sept................... O ct..................... N ov................... D ec.................... 5.73 5.75 5.54 4.92 4 .74 5.57 5.44 5.30 4.81 4.60 5.57 5.49 5.05 4.78 4.45 5.57 5.55 5.20 4.91 4.14 5.078 4.668 4.489 4.191 4.023 4.93 4.69 4.46 4.22 4.01 5.363 4.934 4.626 4.338 4.199 5.22 4.97 4.60 4.38 4.23 5.52 5.20 4.75 4.49 4.40 5.67 5.31 4.74 4.50 4.38 6.39 5.96 5.68 5.50 5.42 1972—Jan ..................... Feb.................... M ar................... A pr.................... M ay................... J u n e .................. July ................... Aug................... 4.08 3.93 4.17 4.58 4.51 4.64 4.85 4.82 3.95 3.78 4.03 4.38 4.38 4.45 4.72 4.58 3.92 3.52 3.95 4.43 4.25 4.47 4.73 4.67 3.50 3.29 3.83 4.17 4.27 4.46 4.55 4.80 3.403 3.180 3.723 3.723 3.648 3.874 4.059 4.014 3.38 3.18 3.72 3.70 3.68 3.91 3.97 4.01 3.656 3.594 4.086 4.218 4.064 4.270 4.583 4.527 3.66 3.63 4.12 4.22 4.12 4.35 4.49 4.53 3.78 4.05 4.42 4.65 4.44 4.70 4.91 4.90 3.99 4.07 4.54 4.84 4.58 4.87 4.89 4.91 5.33 5.51 5.74 6.01 5.69 5.77 5.86 5.92 Week ending— 1972—M ay 6 ........... 13........... 2 0 ........... 2 7 ........... 4.55 4 .50 4.50 4 .5 0 4.38 4.38 4.38 4.38 4.25 4 .25 4.25 4.25 4.25 4 .20 4.32 4 .24 3.604 3.462 3.699 3.825 3.56 3.58 3.74 3.78 3.998 3.907 4.118 4.233 4.03 4.03 4.23 4.19 4.37 4.42 4.53 4.47 4.52 4.55 4.67 4.57 5.72 5.73 5.71 5.62 June 3 ........... 1 0 ........... 1 7 ........... 2 4 ........... 4 .50 4.50 4.63 4.65 4.38 4.38 4.38 4 .50 4.25 4.35 4.38 4.53 4.38 4.48 4.46 4.39 3.762 3.861 3.798 3.924 3.82 3.86 3.87 3.97 4.106 4.243 4.187 4.328 4.20 4.25 4.29 4.40 4.51 4.62 4.62 4.69 4.66 4.80 4 .80 4.89 5.64 5.71 5.73 5.81 July 1 ........... 8 ........... 15........... 2 2 ........... 2 9 ........... 4.83 4.88 4.88 4.88 4.80 4.58 4.70 4.75 4.75 4.63 4.70 4.75 4.75 4.75 4.68 4.49 4.61 4.62 4 .4 6 r 4.54 4.023 4.138 4.102 3.948 4.047 3.96 4.05 4.03 3.92 3.93 4.484 4.688 4.605 4.455 4.585 4.50 4.54 4.54 4.46 4.46 4.92 5.00 4.94 4.86 4.86 5.02 5.01 4.97 4.84 4.79 5.87 5.86 5.85 5.84 5.87 Aug. 5 ........... 12........... 1 9........... 2 6 ........... 4.73 4 .70 4.85 4.88 4.58 4 .50 4.58 4.63 4.63 4.63 4.63 4.75 4.56 4.69 4.87 4.75 3.794 3.928 3.956 4.058 3.79 3.85 3.89 4.11 4.298 4.431 4.464 4.623 4.30 4.37 4.46 4.68 4.78 4.75 4.75 5.00 4.72 4.71 4.78 5.05 5.85 5.85 5.87 5.94 Sept. 2 ........... 4.95 4.63 4.75 4.90 4.332 4.46 4.818 4.90 5.28 5.38 6.11 1 Averages o f daily offering rates o f dealers. 2 Averages o f daily rates, published by finance companies, for varying maturities in the 90-179 day range. 3 Seven-day average for week ending Wednesday. 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. A 36 INTEREST RATES □ SEPTEMBER 1972 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds State and local Period United States (long term) Total i Aaa Stocks Seasoned issues Newissue Aaa utility Baa By selected rating Dividend/ price ratio Earnings/ price ratio By group Total i Aaa Baa Indus trial R ail road Public utility Pre ferred Com mon Com m on 1962................................... 1963.................................... 1964.................................... 3.95 4 .0 0 4.15 3.30 3.28 3.28 3.03 3.06 3.09 3.67 3.58 3.54 4.19 4.21 4 .3 4 4.62 4.50 4.57 4.33 4.26 4.40 5.02 4.86 4.83 4.47 4.42 4.52 4.86 4.65 4.67 4.51 4.41 4.53 4.50 4.30 4.32 3.37 3.17 3.01 6.06 5.68 5.5 4 1965.................................... 1966.................................... 1967.................................... 1968.................................... 1969.................................... 1970.................................... 1971.................................... 4.21 4.66 4.85 5.25 6 .10 6.59 5 .74 3.34 3.90 3.99 4.48 5.73 6.42 5.62 3.16 3.67 3.74 4 .2 0 5.45 6.12 5.22 3.57 4.21 4 .30 4.88 6.07 6.75 5.89 4 .50 5.43 5.82 6.50 7.71 8.68 7.62 4.64 5.34 5.82 6.51 7.36 8.51 7.94 4.49 5.13 5.51 6.18 7.03 8.04 7.39 4.87 5.67 6.23 6.94 7.81 9.11 8.56 4.61 5.30 5.74 6.41 7.22 8.26 7.57 4.72 5.37 5.89 6.77 7 .46 8.77 8.38 4 .6 0 5.36 5.81 6.49 7 .49 8.68 8.13 4.33 4.97 5 .34 5.78 6.41 7.22 6.69 3.00 3.40 3.20 3.07 3.24 3.83 3.14 5.87 6.72 5.71 5.84 6.05 6.28 5.44 1971 _ A u g ........................ Sept....................... O ct......................... N ov........................ D ec........................ 5.78 5.56 5.46 5 .44 5.62 5.84 5.45 5.05 5.20 5.24 5.56 5.09 4.75 4.94 4.99 6.21 5.86 5.38 5.53 5.55 7.71 7.68 7 .5 0 7.38 7.28 8.12 7.97 7.88 7.77 7.75 7.59 7.44 7.39 7.26 7.25 8.76 8.59 8.48 8.38 8.38 7.80 7.64 7.58 7.46 7.42 8.48 8.39 8.25 8.13 8.12 8.30 8.12 8.04 7.96 7.92 7.04 6.90 6.75 6.78 6.81 3.18 3.09 3.16 3.31 3.10 1972—Jan ......................... Feb......................... M ar........................ A pr........................ M ay ....................... Ju n e....................... Ju ly ........................ Aug........................ 5.62 5.67 5.66 5.74 5.64 5.59 5.57 5.54 5.13 5.29 5.31 5.45 5.33 5.35 5.50 5.36 4.84 5.01 4.99 5.16 5.09 5.07 5.23 5.10 5.49 5.63 5.61 5.79 5.65 5.72 5.78 5.66 7.21 7.34 7.2 4 7.45 7.38 7.32 7.38 7.37 7.66 7.68 7.66 7.71 7.71 7.66 7.66 7.61 7.19 7.27 7.24 7.30 7.30 7.23 7.21 7.19 8.23 8.23 8.24 8.24 8.23 8 .20 8.23 8.19 7.34 7.39 7.35 7.42 7.43 7.36 7.39 7.35 7.98 8.00 8.03 8.04 8.01 7.98 8.00 7.99 7.85 7.84 7.81 7.87 7.88 7.83 7.80 7.69 6.57 6.67 6.76 6.91 6.90 6.93 6.99 6.90 2.96 2.92 2.86 2.83 2.88 2.87 2.90 2.80 5.65 4 .86 Week ending— July 1 ................ 8 ............... 15............... 2 2 ................ 2 9 ............... 5.61 5.61 5.59 5.56 5.54 5.45 5.51 5.53 5.50 5.45 5.20 5.20 5.25 5.25 5.20 5.80 5.80 5.80 5.75 5.70 7.42 7.35 7.32 7.37 7.48 7.65 7.64 7.66 7.67 7.68 7.21 7.20 7.20 7.20 7.22 8.20 8.19 8.20 8.25 8.27 7.36 7.37 7.38 7.40 7.41 7.99 7.98 7.99 8.00 8.00 7.80 7.77 7.78 7.81 7.82 6.95 6.98 6.99 7 .0 0 7.00 2.90 2.87 2.91 2.92 2.89 Aug. 5 ................ 12................ 19............... 2 6 ............... 5.51 5.48 5.53 5.56 5.40 5.35 5.31 5.36 5.10 5.10 5.05 5.10 5.70 5.65 5.60 5.65 7 .40 7.37 7.32 7.66 7.63 7.60 7.59 7.22 7.20 7.19 7.17 8.25 8.23 8.19 8.16 7.39 7.36 7.35 7.34 8.00 7.99 7.98 8.00 7.80 7.73 7.67 7.64 6.97 6.96 6.90 6.79 2.84 2.80 2.78 2.77 Sept. 2 ............... 5.62 5.41 5.15 5.70 7.41 7.59 7.16 8.15 7.32 8.02 7.63 6.87 2.81 N um ber o f issues2.......... 9 20 5 5 121 20 30 41 30 40 14 500 1 Includes bonds rated Aa and A , data for which are not shown sep arately. Because o f a limited num ber o f suitable issues, the number o f corporate bonds in some groups has varied somewhat. As o f Dec. 23, 1967, there is no longer an A aa-rated railroad bond series. 2 N um ber o f issues varies over tim e; figures shown reflect most recent count. N o te . —Annual yields are averages o f monthly or quarterly data. Bonds: M onthly and weekly yields are computed as follows: (1) U.S. G ovt.: Averages o f daily figures for bonds maturing or callable in 10 years or more. (2) State and local govt.: General obligations only, based on 500 Thurs. figures. (3) Corporate: New-issue A aa utility rates are weekly aver ages compiled by the Board o f G overnors o f the Federal Reserve System. Rates for seasoned issues are averages o f daily figures from M oody’s In vestors Service. Stocks: Standard and P oor’s corporate series. D ividend/price ratios are based on Wed. figures; earnings/price ratios are as o f end o f period. Preferred stock ratio is based on eight median yields for a sample o f noncallable issues— 12 industrial and two 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 M ortgages: i Begins June 30,1965, at 10.90. On th at day the average price of a share o f stock listed on the American Stock Exchange was $10.90. i Fees and charges—related to principal mortgage am ount—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 o f property ownership. N o te . —Annual data are averages o f monthly figures. Monthly and weekly data are averages o f daily figures unless otherwise noted and are computed as follows: U.S. Govt, bonds, derived from average market yields in table on preceding page on basis o f an assumed 3 per cent, 20-year bond. Municipal and corporate bonds, derived fro m average yields as computed by Standard and Poor’s Corp., on basis o f a 4 per cent, 20-year bond; Wed. closing prices. Common stocks, derived from com ponent common stock prices. Average daily volume o f trading, normally conducted 5 days per week for 5 Vi hours per day, or 27 l/ i hours per week. In recent years shorter days and/or weeks have cut total weekly trading to the following num ber o f hours: 1967—Aug. 8-20, 20; 1968—Jan. 22M ar. 1 ,2 0 ; June 30-Dec. 31,22; 1969—Jan. 3-July 3, 20; July 7-D ec. 3122.5; 1970—Jan. 2-M ay 1, 25. N o te . —Compiled by Federal Home Loan Bank Board in cooperation with Federal D eposit Insurance C orporation. D ata are weighted averages based on probability sample survey o f characteristics o f mortgages originated by major institutional lender groups (including mortgage companies) for purchase o f single-family homes. D ata exclude loans for refinancing, reconditioning, or m odernization; construction loans to homebuilders; and perm anent loans th a t are coupled with construction loans to owner-builders. Series beginning 1965, not strictly comparable with earlier data. See also the table on Home-M ortgage Yields, p. A-55. SEPTEMBER 1972 □ SECURITY MARKETS A 37 SECURITY PRICES C om m on stock prices New Y ork Stock Exchange Bond prices (per cent o f par) Standard and Poor’s index (1941-43= 10) Period U.S. Govt. (long term) State and local C or porate AAA 86.94 86.31 84.46 83.76 78.63 76.55 72.33 64.49 60.52 68.80 112.0 111.3 111.5 110.6 102.6 100.5 93.5 7 9.0 72.3 80.0 1971—Au g Sept O ct......... N o v ... . , D ec........ 67.33 69.35 70.33 70.47 68.80 1 9 7 2 -J a ..........n Feb........ M ar. A p r........ M ay June July........ Aug........ 196 196 196 196 196 196 196 196 197 197 2 3 4 5 6 7 8 9 0 1 New York Stock Exchange index (Dec. 31, 1965 = 50) Trans porta tion Indus trial Rail road Public utility 96 .2 96.8 95.1 93.9 86.1 81.8 76.4 68.5 61.6 65.0 62.38 65.54 69.87 73.39 81.37 86.19 88.17 93.48 85.26 91.09 91.93 99.18 98.70 107.49 97.84 107.13 83.22 91.29 98.29 108.35 30.56 37.58 45.46 46.78 46.34 46.72 48.84 45.95 32.13 41.94 59.16 64.99 69.91 76.08 68.21 68.10 66.42 62.64 54.48 59.33 44.16 50.77 55.37 54.67 45.72 54.22 43.79 51.97 58.00 57.45 48.03 57.92 48.23 53.51 50.58 46.96 32.14 44.35 44.77 45.43 44.19 42.80 37.24 39.53 77.4 81.7 84.7 84.1 83.5 63.4 64.2 65.2 66.4 66.5 97.24 99.40 97.29 92.78 99.17 107.26 109.85 107.28 102.21 109.67 43.55 47.18 44.58 41.19 43.17 57.51 56.48 57.41 55.86 57.07 53.73 54.95 53.76 51.17 54.76 57.62 59.13 57.52 54.50 58.85 44.83 48.09 47.02 44.29 48.34 68.79 68.32 68.43 67.66 68.59 69.05 69.23 69.55 84.6 83.8 84.1 82.5 84.6 83.4 83.1 65.8 67.1 103.30 114.12 66.7 105.24 116.86 66.2 107.69 119.73 65.1 108.81 121.34 65.3 107.65 120.16 65.6 108.01 120.84 65.6 107.21 119.98 84.2 111.01 124.35 45.16 45.66 46.48 47.38 45.06 43.66 42.00 43.28 60.19 57.41 57.73 55.70 54.94 53.73 53.47 54.66 57.19 58.45 59.96 60.65 59.82 59.87 59.21 61.07 61.33 63.36 65.18 66.10 65.30 65.76 65.13 67.25 Total Total Indus trial Utility Fi nance Amer ican Stock Ex change total in d e x 1 Volume of trading in stocks (thousands o f shares) NYSE A M EX 44.43 49.82 65.85 70.49 54.64 70.38 8.52 9.81 12.05 14.67 19.67 27.72 28.73 22.59 25.22 3,820 4,573 4,888 6,174 7,538 10,143 12,971 11,403 10,532 17,429 1,225 1,269 1,570 2,120 2,752 4,508 6,353 5,001 3,376 4.234 38.17 37.53 37.93 36.87 37.52 69.41 72.14 71.24 68.98 72.28 24.84 25.47 25.24 24.10 25.04 14,574 12,038 13,340 13,163 17,171 3,473 3,259 3,622 3.234 4,777 50.56 52.80 53.71 55.50 53.43 51.26 48.45 48.97 40.02 38.56 38.56 37.48 37.04 36.32 36.02 36.87 74.24 73.74 77.15 80.36 78.32 76.59 75.41 78.27 26.46 18,072 27.52 18,817 28.03 18,351 28.24 18,402 27.63 15,270 27.47 14,298 26.97 14,450 26.85 15,522 5,516 6,328 5,680 5,584 4,184 3,872 3,546 3,807 Week ending— Aug. 5, 12, 19, 26, 69.82 70.09 69.60 69.32 65.9 65.6 65.6 66.7 83.8 84.5 84.9 84.2 109.13 109.23 111.87 111.62 122.32 124.50 125.43 124.89 42.41 41.94 41.46 42.08 53.28 53.89 54.48 55.87 60.04 61.05 61.52 61.44 66.19 67.40 67.90 67.47 48.82 49.76 48.96 48.74 35.99 36.21 36.72 37.78 76.22 77.58 78.47 79.52 26.83 16,055 26.92 15,070 26.97 16,201 26.83 16,729 3,872 3,878 3,998 3,598 Sept. 2, 68.79 65.9 83.5 110.76 123.89 43.64 55.68 60.94 66.87 48.28 37.57 79.17 26.63 3,283 11,889 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Con tract rate (per cent) Fees & charges (per cent) 1 M aturity (years) Loan / price ratio (per cent) 1965.......................... 1966.......................... 1967.......................... 1968.......................... 1969.......................... 1970.......................... 1971......................... 5.74 6.14 6.33 6.83 7.6 6 8.27 7.60 .49 .71 .81 .89 .91 1.03 .87 2 5.0 24.7 25.2 25.5 25.5 25.1 26.2 73.9 73.0 73.6 73.9 72.8 71.7 74.3 25.1 26.6 28.0 30.7 34.1 35.5 36.3 18.3 19.2 20.4 22.4 24.5 25.2 26.5 5.87 6.30 6.40 6.90 7.68 8.20 7.54 1971—J u n e ............ July.............. Aug.............. Sept.............. O ct............... N ov.............. D ec............... 7.38 7.51 7.60 7.67 7.68 7.65 7.62 .74 .90 .84 .97 .97 .87 .93 26.3 26.3 26 .2 25.8 26.4 26.7 26.6 73.7 74.5 73.9 75.3 75.5 75.4 74.5 37.5 36.8 36.5 35.1 35.2 36.7 36.4 27.3 27.1 26.5 25.9 26.3 27.3 26.5 1972—Jan ................ Feb............... M ar.............. A pr............... M ay............. Ju n e r ........... July.............. 7.62 7.45 7.38 7.38 7 .4 0 7.41 7.45 .95 1.02 .84 .83 .84 .85 .83 26.5 2 7.0 27.2 27.2 27.2 27.2 27.3 75.0 76.5 76.2 76.0 76.2 76.5 77.2 37.3 37.2 37.7 38.3 38.2 37.2 37.1 27.6 27.8 28.2 28.5 28.5 27.8 28.2 Period For notes see opposite page. Pur Loan chase amount price (thous. (thous. o f dollars)o f dollars) Pur Loan chase am ount price (thous. of (thous. o f dollars) dollars) M aturity (years) Loan / price ratio (per cent) .55 .72 .76 .83 .88 .92 .77 21.8 21.7 22.5 22.7 22.7 22.8 24.2 72.7 72.0 72.7 73.0 71.5 71.1 73.9 21.6 22.2 24.1 25.6 28.3 30.0 31.7 15.6 15.9 17.4 18.5 19.9 21.0 23.1 7.38 7.50 7.58 7.63 7.62 7.56 7.51 .74 .75 .76 .79 .79 .79 .80 24.3 24.2 24.5 24.2 24.1 24.3 24.6 73.9 74.5 74.2 74.5 74.2 74.6 74.6 32.9 31.6 31.9 30.7 31.2 31.6 32.5 23.9 23.2 23.5 22.5 22.9 23.2 23.9 7.45 7.35 7.31 7.30 7.33 7.36 7.37 .82 .79 .77 .78 .77 .78 .78 24.9 25.4 25.1 25.2 25.2 25.5 25.5 74.7 75.8 75.6 75.3 75.4 76.1 76.0 32.5 33.1 32.7 33.6 33.3 33.8 33.6 24.1 24.8 24.4 24.9 24.6 25.2 25.0 Con tract rate (per cent) Fees & charges (per cent) 1 A 38 STOCK MARKET CREDIT o SEPTEMBER 1972 STOCK MARKET CUSTOMER FINANCING (In millions of dollars) M argin credit at brokers and banks 1 Regulated 2 By type By source End o f period M argin stock Total Unregu lated 3 Convertible bonds Subscription issues Brokers Banks Brokers Banks Brokers Banks Brokers Banks O ther security credit at banks 4 Free credit balances at brokers 5 N onm argin stock credit at banks M argin accts. Cash accts. 1971—J u ly .. . A u g .. . S ep t... O c t .. . . N o v ... D e c .. . 5,860 5,917 5,990 6,016 5,995 6,835 5,050 5,121 5,208 5,238 5,198 5,700 810 796 782 778 797 835 4,790 4,850 4,930 4,950 4,910 5,400 737 723 713 711 731 764 215 227 230 239 242 258 56 58 54 53 51 57 45 44 48 49 46 42 1,091 1,208 1,182 1,194 1,193 1,197 1,183 1,206 1,237 1,204 1,209 1,298 410 405 364 393 412 387 1.841 1,838 1,734 1,765 1,758 1,837 1972—Jan. . F e b ... M a r.. A p r.. M ay. J u n e ., July. • 6,850 7,427 7,847 8,250 8,472 5,989 6.477 6,896 7,283 7.478 7,792 7,945 861 950 951 967 994 5,700 6,180 6,620 7,010 7,200 7,510 7,660 789 877 883 898 924 252 256 240 240 241 244 248 56 56 53 57 58 37 41 36 33 37 38 37 1,182 1,170 1,158 1,150 1,141 1,313 1,327 1,294 1,278 1,296 448 434 442 433 403 386 403 2,040 2,108 2,070 2,030 1,930 1,845 1.842 1 M argin 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 B u lle t in ) . Credit extended by brokers is end-of-month data for m em ber firms o f the NYSE. 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 o f 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 perm it special loan values for convertible bonds and stock acquired through exercise o f subscription rights. 3 N onm argin stocks are those not listed on a national securities exchange and not included on the Board o f Governors o f the Federal Reserve System’s list o f OTC margin stocks. A t banks, loans to purchase or carry nonm argin stocks are unregulated; at brokers, such stocks have no loan value. 4 Includes loans to purchase or carry m argin stock if these are unsecured or secured entirely by unrestricted collateral (see Dec. 1970 B u lle t in ) . 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 o f total debt, except as noted) (Per cent o f total, except as noted) End o f period Total debt (mil lions of dol lars) 1 1971—J u ly .. Aug.. Sept.. O ct... N ov.. D e c .. 1972—J a n ... F e b .. M ar.. A p r .. M ay . June. J u ly .. Equity class (per cent) End o f period 80 or more 70-79 60-69 50-59 40-49 Under 40 4,790 4,850 4,930 4,950 4,910 5,400 8 .3 9.3 8 .7 7 .5 7.3 8 .6 12.2 14.4 13.1 10.9 10.7 12.7 29.1 35.4 34.3 28.7 25.9 27.1 25.2 19.6 20.7 24.4 26.2 29.9 11.0 8.9 9 .9 12.1 13.1 10.2 14.1 12.6 13.3 16.3 16.8 11.5 5,700 6,180 6,620 7,010 7,200 7,510 7,660 8.7 8 .4 7 .6 7.1 6.9 6 .0 5.5 13.5 12.4 11.2 10.2 9 .9 9.1 8 .3 27.1 25.9 22.3 19.5 19.3 15.9 14.6 32.6 35.1 38.5 4 0 .0 38.6 33.9 30.8 8.5 8 .5 10.6 12.8 15.0 2 2.0 24.9 9 .6 9 .7 9 .7 10.5 10.4 13.2 15.7 1972—Jan .......................... Feb......................... M ay....................... J u n e ....................... N et credit status Equity class of accounts in debit status Total balance (millions 60 per cent Less than o f dollars) or more 60 per cent 45.2 44.6 44.2 45.5 44.6 35.0 46.7 48.0 47.0 45.2 45.1 55.7 8.1 7 .4 8.8 9.3 10.2 9 .4 4,190 4,230 4,160 4,060 4,000 7,300 36.8 35.1 35.8 35.5 34.7 34.3 34.4 55.9 57.0 56.0 56.5 57.1 56.3 55.2 7.3 7.9 8.1 8 .0 8 .0 9 .4 11.4 5,780 5,910 5,990 5,920 5,860 5,770 5,930 N o t e . —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 o f other N o t e . —Each custom er’s equity in his collateral (market value of col collateral in the custom er’s margin account or deposits o f cash (usually lateral less net debit balance) is expressed as a percentage o f current col sales proceeds) occur. lateral values. i See note 1 to table above. SEPTEMBER 1972 □ SAVINGS INSTITUTIONS A 39 MUTUAL SAVINGS BANKS (In millions o f dollars) Securities Loans End o f period M ort gage Other U.S. Govt. C orpo rate and o th e r1 State and local govt. O ther assets Cash Total assets— Total liabili ties and general reserve accts. Depos its2 M ortgage loan commitments 3 classified by m aturity (in m onths) Other General liabili reserve ac ties counts 3 or less 3-6 6-9 Over 9 Total 1963................. 36,007 1964 ............... 40,328 1965 ........... 44,433 1966 ............... 47,193 607 739 862 1,078 5,863 5,791 5,485 4,764 440 391 320 251 5,074 5,099 5,170 5,719 912 1,004 1,017 953 799 886 944 1,024 49,702 54,238 58,232 60,982 44,606 48,849 52,443 55,006 943 989 1,124 1,114 4,153 4,400 4,665 4,863 1967................. 1968................. 1969................. 1970................. 50,311 53,286 55,781 57,775 1,203 1,407 1,824 2,255 4,319 3,834 3,296 3,151 219 8,183 194 10,180 200 10,824 197 12,876 993 996 912 1,270 1,138 1,256 1,307 1,471 66,365 71,152 74,144 78,995 60,121 64,507 67,026 71,580 1,260 1,372 1,588 1,690 4,984 5,273 5,530 5,726 742 811 584 619 1971—June. . Ju ly . . . Aug. .. S e p t.. . O ct.. .. N o v .. . D ec__ 59,546 59,935 60,350 60,622 61,036 61,473 62,069 2,696 2,545 2,685 2,782 2,840 2,891 2,808 3,409 3,558 3,517 3,467 3,382 3,346 3,334 319 326 338 339 343 357 385 16,649 16,969 17,159 17,282 17,292 17,452 17,674 1,281 1,198 1,151 1,177 1,250 1,280 1,389 1,665 1,750 1,692 1,742 1,712 1,695 1,711 85,565 86,282 86,892 87,410 87,856 88,495 89,369 77,683 78,130 78,437 79,236 79,648 80,165 81,440 1,956 2,198 2,423 2,129 2,150 2,218 1,810 5.926 5; 924 6,031 6,045 6,059 6,112 6,118 1,118 1,015 978 1,086 1,125 1,129 1,047 517 582 557 509 415 554 627 343 347 374 422 484 461 463 1,244 1,260 1,246 1,196 1,230 1,231 1,310 3,222 3,204 3,155 3,213 3,253 3,375 3,447 1972—Jan. 4 .. F e b .... M a r ... A pr__ M a y ... Ju n e ? .. 62,258 62,517 62,947 63,299 63,753 64,333 3,224 3,523 3,660 3,452 3,499 3,439 3,261 3,306 3,380 3,425 3,450 3,397 433 459 515 548 598 642 18,417 19,055 19,659 20,192 20,615 20,857 1,246 1,255 1,256 1,239 1,238 1,332 1,802 1,808 1,852 1,868 1,881 1,948 90,641 91,924 93,268 94,022 95,035 95,947 82,327 83,269 84,809 85,299 85,976 87,027 1,962 2,229 1,991 2,231 2,493 2,254 6,352 6,427 6,468 6,492 6,565 6,667 1,045 1,277 1,448 1,720 1,654 1,612 676 759 769 747 778 925 409 533 681 742 737 540 1,442 1,414 1,429 1,437 1,591 1,603 3,572 3,983 4,327 4,646 4,760 4,679 1 Also includes securities o f foreign governments and international organizations and nonguaranteed issues o f U.S. Govt, agencies. 2 See note 8, p. A-19. 3 Commitments outstanding o f banks in New Y ork State as reported to the Savings Banks Assn. o f the State o f New York. D ata include building loans beginning with Aug. 1967. 4 Balance sheet data beginning Jan. 1972 are reported on a gross o f valuation reserves basis. The data differ somewhat from balance sheet 2,549 2,820 2,697 2,010 982 799 2,523 1,034 1,166 3,011 452 485 946 2,467 322 302 688 1,931 d a ta p re v io u s ly r e p o r t e d b y NAMSB w h ic h w e r e n e t o f v a lu a tio n re s e rv e s. F o r m o s t ite m s , h o w e v e r , t h e d iffe re n c e s a r e r e la tiv e ly s m a ll. N o t e .— N a tio n a l A s s n . o f M u tu a l S a v in g s B a n k s d a t a ; fig u re s a r e e s tim a te s f o r a ll s a v in g s b a n k s in t h e U n i t e d S ta te s a n d d iffe r s o m e w h a t fro m t h o s e s h o w n e ls e w h e re in t h e B u l l e t in ; t h e la t t e r a r e f o r c a ll d a te s a n d a re b a s e d o n r e p o r t s filed w ith U .S . G o v t, a n d S ta te b a n k s u p e rv is o ry a g e n cie s. LIFE INSURAf 2E COMPANIES (In millions o f d o lla r s ) Business securities G overnm ent securities End o f period Total assets Total United State and Foreign1 States local Total Bonds Stocks M ort gages Real estate Policy loans O ther assets Statem ent value: 1963 1964. 1965. 1966. 1967. 1968. 141,121 149,470 158,884 167,022 177,832 188,636 12, 438 12, 322 11,,679 10,,837 10,,573 10,,509 5,813 5,594 5,119 4,823 4,683 4,456 3,852 3,774 3,530 3,114 3,145 3,194 2,773 2,954 3,030 2,900 2,754 2,859 60,780 63,579 67,599 69,816 76,070 82,127 53,645 55,641 58,473 61,061 65,193 68,897 7,135 7,938 9,126 8,755 10,877 13,230 50,544 55,152 60,013 64,609 67,516 69,973 4,319 4,528 4,681 4,883 5,187 5,571 6,655 7,140 7,678 9,117 10,059 11,306 6,385 6,749 7,234 7,760 8,427 9,150 Book value: 1966. 1967. 1968. 1969. 1970. 167,022 177,361 187,695 197,208 207,254 10,,864 10,,530 IO!,483 10;,914 11,,068 4,824 4,587 4,365 4,514 4,574 3,131 2,993 3,036 3,221 3,306 2,909 2,950 3,082 3,179 3,188 68,677 73,997 79,403 84,566 88,518 61,141 65,015 68,575 70,859 73,098 7,536 8,982 10,828 13,707 15,420 64,661 67,575 70,071 72,027 74,375 4,888 5,188 5,573 5,912 6,320 9,911 10,060 11,284 13,825 16,064 8,801 11,011 10,881 9,964 10,909 1971-—Ju n e r .............................. 214,532 July................................. 215,284 Aug................................. 216,436 Sept................................. 217,489 O ct.................................. 218,257 N ov................................. 219,353 Dec.................................. 221,573 10 ,717 11 ,031 11 ,076 11 ,000 11 ,016 11 ,150 11 ,129 4,261 4,466 4,475 4,345 4,331 4,473 4,427 3,339 3,430 3,452 3,484 3,485 3,484 3,518 3,117 3,135 3,149 3,171 3,200 3,193 3,184 95,262 95,683 96,429 97,199 97,778 98,443 99,430 76,854 77,333 77,581 78,121 78,890 79,384 78,912 18,408 18,350 18,848 19,078 18,888 19,059 20,518 74,509 74,583 74,707 74,799 74,864 74,903 75,596 6,552 6,729 6,749 6,811 6,876 6,949 7,097 16,531 16,590 16,679 16,782 16,850 16,948 17,027 10,961 10,668 10,796 10,898 10,873 10,960 11,294 223,312 224,736 226,024 227,893 229,336 230,182 11 ,325 11 ,341 11 ,517 11 ,083 11 ,128 11 ,105 4,594 4,609 4,744 4,476 4,516 4,394 3,535 3,535 3,532 3,373 3,366 3,355 3,196 3,197 3.241 3,234 3,246 3,356 101,350 102,821 103,798 105,249 106,434 107,074 80,087 80,795 81,099 82,293 83,060 83,382 21,263 22,026 22,699 22,956 23,374 23,692 75,517 75,456 75,424 75,469 75,493 75,547 7,097 6,999 7,048 7,034 7,094 7,149 17,074 17,132 17,212 17,360 17,441 17,528 10,949 10,987 11,025 11,698 11,746 11,779 1972-—Jan .................................. Feb.................................. M ar................................. A pr.................................. M ay ................................ Ju n e ................................ Figures are annual statement asset values, with bonds carried on an 1 Issues o f foreign governments and their subdivisions and bonds of amortized basis and stocks at year-end m arket value. Adjustments for the International Bank for Reconstruction and Development. interest due and accrued and for differences between m arket and book N o t e . —Institute o f Life Insurance estimates for all life insurance values are not made on each item separately but are included in total, in companies in the United States. “ Other assets.” A 40 SAVINGS INSTITUTIONS □ SEPTEMBER 1972 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets End o f period Other* Total assets— Total liabilities 3,315 3,926 3,979 4,015 3,900 3.366 3,442 2,962 2,438 3,506 4,775 5,346 6,191 7,041 7,960 8,378 9,107 9,571 8,606 9,326 19,281 18,972 18,663 18,971 19,096 18,293 2,139 2,077 2,056 2,166 2,284 2,783 19,691 20,682 21,427 21,449 22,070 21,644 22,145 2,785 2,829 2,521 2,551 2,456 2,414 2.366 M ort gages Invest ment secur ities 1 196 1 196 2 196 3 196 4 196 5 196 6 196 7 196 8 1969 5......... 1970 5.......... 68,834 78,770 90,944 101,333 110,306 114,427 121,805 130,802 140.232 150,331 5,211 5,563 6,445 6,966 7,414 7,762 9,180 i 11,116 10,873 13,020 1971 _ j u l y . . Aug.. Sept.. O ct.. Nov.. D ec.. 163,720 166,111 168.233 170,106 172,047 174,385 1971—Jan.. Feb.. M ar.. A p r.. M ay. Ju n e. July*, 175,838 177,614 180,145 182,711 185,431 188,884 191,703 Cash M ortgage loan com m itm ents4 Liabilities Savings capital Reserves and un divided profits Bor rowed money 3 Loans in process 82,135 93,605 107,559 119,355 129,580 133,933 143,534 152,890 162,149 176,183 70,885 80,236 91,308 101,887 110,385 113,969 124,531 131,618 135,538 146,404 5,708 6,520 7,209 7,899 8,704 9,096 9,546 10,315 11,228 11,991 2,856 3,629 5,015 5,601 6,444 7,462 4,738 5,705 9,728 10,911 1,550 1,999 2,528 2,239 2,198 1,270 2,257 2,449 2,455 3,078 1.136 1,221 1.499 1,729 1,849 2.136 2,462 2,803 3,200 3,799 807 1,602 1,872 2,193 2,572 2,549 2,707 1,482 3.004 3,584 2,812 4,393 10,084 10,312 10,474 10,603 10,811 10,842 195,224 197,472 199,426 201,846 204,238 206,303 164,524 165,633 168,303 169,796 171,358 174,472 12,337 12,329 12,339 12,327 12,325 13,187 8,011 8,203 8,388 8,353 8,439 9,048 4,944 5,023 4,996 5,001 4,960 5,072 5,408 6,284 5,400 6,369 7,156 4,524 3,144 2,880 2,639 2,537 2,511 2,345 8,555 8,311 8.004 7,806 7,759 7,237 10,926 11,144 11,291 11,440 11,691 11,865 11,953 209,240 212,269 215,384 218,151 221,648 224,807 228,167 177,738 180,556 184,843 186,617 188,826 192,564 194,853 13,250 13,248 13.261 13.262 13,257 13,583 13,581 8,053 7,275 6,759 6,847 6,802 7,273 7,220 4,874 4,853 5,077 5,283 5,608 5,887 5,992 5,325 6,337 5,444 6,142 7,155 5.500 6,521 2,508 3,354 4,110 4,047 4,545 4,198 4,011 7,510 8,659 9,864 10,837 11,793 11,663 11,875 1 U.S. Govt, securities only through 1967. Beginning 1968 the total fleets liquid assets and other investment securities. Included are U.S. G ovt, obligations, Federal agency securities, State and local govt, securi ties, tim e deposits at banks, and miscellaneous securities, except FHLBB stock. 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 note 1. 3 Consists o f advances from FHLBB and other borrowing. 4 Insured savings and loan assns. only. D ata on outstanding commit O ther O utstand ing at end o f period Made during period ments are 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 m utual savings banks. 5 Balance sheet data for all operating savings and loan associations were revised by the Federal Home Loan Bank Board for 1969 and 1970. N o t e . — Federal Home Loan Bank Board data; figures are estimates for all savings and loan assns. in the United States. D ata are based on monthly reports o f insured assns. and annual reports o f noninsured assns. D ata for current and preceding year are preliminary even when revised. MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions o f dollars) Federal home loan banks Assets End o f period Liabilities and capital Cash and de posits M em ber de posits A d vances to mem bers Invest ments 1967. 1968. ............. 1969. 1970. 1971. 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 1971-- J u l y . . Aug... S e p t.. O c t... N o v .. D e c ... 7,338 7,513 7,637 7,640 7,708 7,936 3,211 2,744 2,584 2,740 2,545 2,520 85 86 117 99 101 142 7,297 7,218 7,190 7,390 7,139 7,139 1972-- J a n . . . F e b ... M a r .. A p r... M a y .. J u n e .. J u ly .. 7,238 6,515 5,992 5,913 5,853 6,075 6,138 3,412 3,805 4,342 4,233 4,067 3,850 3,579 156 115 113 81 108 118 118 7,139 6,731 6,730 6,729 6,528 6,527 6,526 Bonds and notes Banks for cooperatives M ort gage loans (A) Deben tures and notes (L) Loans to cooper atives (A) Deben tures 1,395 1,402 1,478 1,607 1,618 5,348 6,872 10,541 15,502 17,791 4,919 6,376 10,511 15,206 17,701 1,699 1,532 1,522 1,450 1,548 1,789 1,600 1,603 1,600 1,603 1,607 1,618 15,674 16,304 16,732 17,202 17,535 17,791 1,949 2,014 2,008 1,762 1,789 1,746 1,497 1,647 1,696 1,708 1,717 1,718 1,721 1,722 17,977 18,220 18,342 18,403 18,598 18,628 18,740 Capital stock N ote.—D ata from Federal H om e Loan Bank Board, Federal N ational M ortgage Assn., and Farm Credit Admin. Among omitted balance sheet items are capital accounts o f all agencies, except for stock o f FH LB ’s. Bonds, debentures, and notes are valued at par. They include only publicly Federal National Mortgage Assn. (secondary m arket operations) Federal intermediate credit banks Deben tures (L) Loans and dis counts (A) 1,506 1,577 1,732 2,030 2,076 1,253 1,334 1,473 1,755 1,801 15,638 15,260 16,241 16,984 17,138 17,701 1,997 1,942 1,942 2,030 2,076 2,076 17,442 17,814 17,992 18,131 17,959 18,560 18,194 2,098 2,149 2,267 2,260 2,181 2,145 2,137 Federal land banks Bonds (L) M ort gage 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 1,726 1,791 1,791 1,745 1,763 1,801 5,905 5,866 5,841 5,763 5,633 5,669 5,712 5,742 5,713 5,680 5,606 5,503 7,650 7,709 7,767 7,826 7,870 7,917 6,884 6,884 6,884 7,063 7,063 7,063 1,867 1,840 1,840 1,833 1,852 1,786 1,731 5,785 5,720 5,967 6,105 6,229 6,378 6,330 5,537 5,591 5,689 5,879 6,018 6,118 6,174 7,970 8,039 8,139 8,238 8,343 8,430 8,517 7,063 7,186 7,186 7,382 7,382 7,382 7,659 (L) offered securities (excluding, for FH L B ’s bonds held within the FHLB System) and are not guaranteed by the U.S. G ovt.; for a listing o f these securities, see table below. Loans are gross o f valuation reserves and represent cost for FN M A and unpaid principal for other agencies. EMBER 1972 □ FEDERALLY SPONSORED CREDIT AGENCIE )ING ISSUES OF FEDERALLY SPONSORED AGENCIES, Cou pon rate 6V4 1% A m ount (millions o f dollars) 2* 5 8.3 5.70 4 .2 0 7.20 8 .4 0 8 .4 0 7.10 6.35 7.65 8.00 6.10 8.05 7.95 6 .5 0 7H 6.95 7.75 7.80 6.60 394 250 310 350 400 400 450 300 250 300 300 181 227 250 265 300 350 300 200 350 200 200 7.10 7.75 5.30 6.15 8.60 7.75 7.15 175 150 200 350 140 150 150 387 6 .00 8 .00 4.38 250 200 249 7 .50 8.38 8.63 400 250 200 Agency, and date o f issue and m aturity Federal National M ortgage Association— Cont. D ebentures: 5/11/70 - 9/11/72........... 6/10/70 - 9/11/72........... 11/10/69 - 12/11/72___ 10/13/70 - 1 2 /1 1 /7 2 .... 11/10/70 - 3/12/73......... 12/12/69 - 3/12/73......... 6/12/61 - 6/12/73........... 7/10/70 - 6/12/73........... 7/12/71 -6 /1 2 /7 3 ............. 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 9/10/74........... 2/10/71 - 9/10/74............. 5/10/71 - 12/10/74........... 9/10/71 - 12/10/74........... 11/10/70 - 3/10/75......... 10/12/71 - 3/10/75......... 4/12/71 -6 /1 0 /7 5 ............. 10/13/70 - 9/10/75......... 3/10/72 - 12/10/75......... 3/11/71 - 3/10/76............. 6/10/71 -6 /1 0 /7 6 ............. 2/10/72 - 6/10/76............. 11/10/71 -9 /1 0 /7 6 ........... 6 /1 2 /7 2 -9 /1 0 /7 6 ............ 7/12/71 - 12/10/76........... 2/13/62 2/10/77........... 12/10/70 - 6/10/77......... 5/10/71 -6 /1 0 /7 7 ............. 9 /1 0 /7 1 -9 /1 2 /7 7 ............. 10/12/71 - 1 2 /1 1 /7 8 .... 6 /1 2 /7 2 -9 /1 0 /7 9 ............. 12/10/71 - 12/10/79___ 2/10/72 - 3/10/80............. 6 /2 9 /7 2 - 1/29/81............. 1/21/71 - 6/10/81 ........... 9/10/71 -9 /1 0 /8 1 ............. 6 /2 8 /7 2 -5 /1 /8 2 ............... 2/10/71 - 6/10/82............. 3/11/71 6/10/83............. 11/10/71 -9 /1 2 /8 3 .......... 4/12/71 -6 /1 1 /8 4 ............. 12/10/71 - 12/10/84___ 3/10/72 - 3/10/92........... 6 /1 2 /7 2 -6 /1 0 /9 2 ............ C ou A mount pon (millions rate o f dollars) 8.40 7.40 8.00 7.20 7.30 8 .30 4% 8.35 6.75 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 5.70 5.65 6.70 5.85 6.13 5.85 7.45 4% 6.38 6.50 6.88 6.75 6.40 6.55 6.88 6.15 7.25 7.25 5.84 6.65 6.75 6.75 6.25 6 .90 7.0 0 7.05 400 200 200 400 450 250 146 350 550 300 350 500 500 400 350 400 350 250 300 250 450 300 600 500 350 500 500 250 450 300 500 300 198 250 150 300 300 300 350 250 156 250 250 58 250 200 250 200 250 200 200 JULY 31, 1972 Agency, and date o f issue and m aturity illioi lollai Banks for cooperatives D ebentures: 2 /1 /7 2 - 8 /1 /7 2 ........... 4/3/72 - 10/2/72......... 5 /1 /7 2 - 11/1/72........ 6 /1 /7 2 - 12/4/72......... 7 /3 /7 2 - 1/3/73........... 10/1/70 - 10/1/73.. . 458 269 317 299 288 100 Federal intermediate credit banks D ebentures: 11/1/71 - 8/1/72......... 12/1/71 - 9 /5 /7 2 .... 1 /3 /7 2 - 10/2/72......... 2 /1 /7 2 - 11/1/72......... 3 /1 /7 2 - 12/4/72......... 4 /3 /7 2 - 1/2/73........... 5 /1 /7 2 -2 /1 /7 3 ........... 3/2/70 - 3/1/73......... 6 /1 /7 2 - 3/1/73........... 7/3/72 - 4/2/73......... 9 /1 /7 0 -7 /2 /7 3 ........... 7/1/71 - 1/2/74........... 1/4/71 - 7/1/74......... 5/1/72 - 1/2/75........... 1 /3 /7 2 -7 /1 /7 5 ........... 594 593 454 634 558 514 482 203 489 475 200 212 224 240 302 Federal land banks Bonds: 9/14/56 - 9 /1 5 /7 2 ... 9/22/69 - 9 /1 5 /7 2 ... 10/23/72 - 10/23/72. 7/20/71 - 10/23/72... 7/20/70 - 1/22/73. . . 2/20/63 - 2/20/73-78 4/20/72 - 4 /2 3 /7 3 .... 1/20/70 - 7 /2 0 /7 3 ... 8/20/73 - 7 /2 0 /7 3 .... 4/20/70 - 10/22/73.. 7/20/72 - 1/21/74. . . 2/20/72 - 2 /2 0 /7 4 ... 10/20/70 - 4 /2 2 /7 4 .. 10/21/71 - 7 /2 7/74.. 4/20/71 - 10/21/74... 2/20/70 - 1 /2 0 /7 5 ... 4/20/65 - 4 /2 1 /7 5 ... 2/15/72 - 7/21/75 7/20/71.- 10/20/75... 4/20/72 - 1 /2 0 /7 6 .... 2/21/66 - 2 /2 4 /7 6 ... 7/20/66 - 7 /2 0 /7 6 ... 10/27/71 - 10/20/77. 5/2/66 - 4 /2 0 /7 8 .... 7/20/72 - 7/20/78. . . 2/20/67 - 1 /2 2 /7 9 ... 2/23/71 -4 /2 0 /8 1 ___ 4/20/72 - 4 /2 0 /8 2 .... 109 337 200 446 407 148 433 198 350 300 450 155 354 326 300 220 200 425 300 300 123 150 300 150 269 285 224 200 n ot guaranteed by the U.S. G o v t.; see also note to table at bottom of opposite page. A 42 FEDERAL FINANCE □ SEPTEMBER 1972 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expenditure account Borrowings from the public 2 Period N et lend ing Budget out lays i Budget surplus or deficit (-) Less: Cash and monetary assets Less: Invest Public Plus ments by Govt, Equals: Trea debt Agency accounts Less: Total sury securi securi Special borrow operat ties ties notes 3 ing ing Special Other balance issues O ther means of financ ing, n e t4 Budget receipts N et ex pendi tures Fiscal year: 196 9 197 0 197 1 197 2 187,784 193,743 188,392 208,596 183,072 194,456 210,318 230,514 3,236 6,142 633 1,476 184,548 2,131 196,588 -2 ,8 4 5 17,198 -1,739 1,107 211,425 -23,033 27,211 -3 4 7 1,105 231,619 -23,023 29,131 -1,269 7,364 9,386 6,616 6,795 2,089 - 1 ,3 8 4 2-1 ,2 9 5 676 5,397 800 19,448 1,625 19,442 H alf year: 1970—July-Dee. 1971—Jan.-June July-Dee. 1972—Jan.-June 87,583 100,809 93,100 115,496 104,117 106,201 110,608 119,906 99 1,008 948 157 -2 1 104,216 -16,633 18,240 6,400 8,971 107,209 -3 2 6 111,557 -18,377 26,001 -1,119 3,130 -1 5 0 120,062 -4 ,6 4 6 1,807 4,809 2,803 3,992 157 647 523 1,102 16,257 3,189 21,556 - 2 ,1 1 4 54 656 973 389 -882 -4 5 3 303 4,039 80 -2 ,1 2 2 835 7,971 M o n th : 1971—Jul y Aug.......... Sept......... O ct.......... N ov......... Dec.......... *•13,221 15,652 19,710 12,462 14,945 17,213 18,507 19,276 18,265 18,677 18,798 17,085 49 306 -6 9 115 149 399 *•-959 1,861 20 2,309 -5 0 3 -1,019 50 -1,690 -1 0 40 284 1,291 122 150 + 194 -1 47 22 4,227 6,854 - 2 ,0 0 3 1,407 2,590 8,482 -1 ,5 5 9 2,337 470 -3,3 1 8 -2 ,3 2 4 1,328 *•-630 -1,069 -8 1 9 -1 ,4 0 7 281 1,239 -2 9 0 1,314 -1 7 -9 2 8 5,653 -1 ,2 3 0 1972—J a.............n Feb.......... M ar......... A pr.......... M ay........ Ju n e........ Ju ly ......... 17,596 15,239 15,237 24,534 17,275 25,537 15,207 19,226 18,589 20,000 19,113 19,723 23,255 243 175 327 -5 1 5 237 -3 1 0 -4 7 4 -1,508 568 1,450 -1 0 3 -6 8 3 - 4 4 -1,770 272 3,527 - 3 7 0 2,975 9 1,409 -3 6 9 286 97 1,746 -2 9 -6 2 8 -6 134 1 3,795 - 2 ,0 5 9 -6 1 8 -3 ,3 6 8 3,730 -1 9 1 -4 ,0 1 8 591 4,047 -2 ,0 3 0 417 -1 ,1 2 9 1,026 2,573 -2 0 8 -7 0 2 -1 6 1,869 1,338 1,508 -1 ,6 1 7 -3 4 6 1,877 3,070 -1 ,8 1 0 -3 ,2 8 4 7.169 *•18,568 ‘-5 ,3 4 8 19,582 - 3 ,9 3 0 9,293 18,196 + 1,513 -2,324 -3 3 4 18,791 -6 ,6 3 0 18,947 -4 ,0 0 2 2,686 17,484 271 9,511 19,469 18,764 20,327 18,598 19,960 22,945 18,591 -1 ,8 7 3 -1,269 1.169 -3 ,5 2 5 3,312 -5 ,0 9 0 5,935 -2,039 -2 ,6 8 5 2,607 -6 5 1 2,591 -3 ,3 8 4 5,123 O ther 596 2,151 710 1,362 1,616 -5 8 1 -9 7 9 905 269 -9 8 2 3,586 5,849 Selected balances Federal securities Treasury operating balance End of period F .R . Banks Tax and loan accounts O ther deposi taries5 Total Public debt securities Agency securities Less: Investments o f Govt, accounts Special issues O ther Less: Special n otes3 E quals: T otal held by public M em o: D ebt o f G ovt.sponsored corps.— N ow private 6 Fiscal year: 196 9 197 0 197 1 197 2 1,258 1,005 1,274 2,344 4,525 6,929 7,372 7,934 112 111 109 5 139 5,894 8,045 8,755 10,117 353,720 370,919 398,130 427,260 14,249 12,510 12,163 10,894 66,738 76,124 82,740 89,539 20,923 21,599 22,400 24,023 825 825 825 825 279,483 284,880 304,328 323,770 24,991 35,789 36,886 Calendar year: 197 0 197 1 1,156 2,020 6,834 9,173 109 113 8,099 11,306 389,158 424,131 12,491 11,044 77,931 85,544 21,756 22,922 825 825 301,138 325,884 38,802 39,860 M o n th : 1971—J u l y .. .. A u g .. . . S ep t.. . . O ct........ N o v .. . . Dec....... 1,274 987 2,102 1,876 1,996 2,020 7,372 8,408 7,763 4,667 2,223 9,173 113 113 113 113 113 113 8,755 9,508 9,978 6,655 4,331 11,306 405,299 414,962 412,268 411,934 414,620 424,131 11,203 11,223 10,720 10,770 10,760 11,044 84,601 86,910 85,904 84,213 84,253 85,544 22.522 22,672 22.853 22.853 22,900 22,922 825 825 825 825 825 825 308,554 315,408 313,406 314,812 317,402 325,884 37,985 37,116 37,380 39,530 39,392 39,860 1972—Ja n Feb....... M a r.. . . A pr....... M ay___ J u n e .. .. J u ly .. . . 2,860 884 1,293 1,871 2,144 2,344 2,298 8,118 6,075 6,391 9,724 7,420 7,934 6,547 5 134 134 2 136 136 139 144 11,112 7,094 7,685 11,732 9,700 10,117 8,988 422,862 424,032 427,343 425,304 427,912 427,260 432,383 10,570 11,137 11,034 10,991 11,263 10,894 10,903 84,037 85,486 84,804 83,034 86,561 89,539 90,944 22.522 22,839 22,935 24.681 24,652 24,023 24,018 825 825 825 825 825 825 825 326,017 326,019 329,814 327,755 327,137 323,770 327,499 39,701 39,883 40,109 40,632 40,426 41,044 1 Equals net expenditures plus net lending. 2 The decrease in Federal securities resulting from conversion to private ownership o f Govt.-sponsored corporations (totaling $9,853 million) is not included here. In the bottom panel, however, these conversions de crease the outstanding amounts o f Federal securities held by the public mainly by reductions in agency securities. The Federal N ational Mortgage Association (FNM A ) was converted to private owership in Sept. 1968 and the Federal intermediate credit banks (FICB) and banks for coopera tives in Dec. 1968. 3 Represents non-interest-bearing public debt securities issued to the International M onetary 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 o f Jan. 3, 1972, the Treasury operating balance was redefined to exclude the gold balance and to include previously excluded “ O ther deposi taries” (deposits in certain commercial depositaries that have been con verted from a time to a demand basis to permit greater flexibility in Treasury cash management). 6 Includes debt o f Federal home loan banks, Federal land banks, R .F .K . Stadium Fund, FN M A (beginning Sept. 1968), FICB, and banks for cooperatives (beginning Dec. 1968). Note.—Half years may not add to fiscal year totals due to revisions in series which are not yet available on a monthly basis. SEPTEMBER 1972 □ FEDERAL FINANCE A 43 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts C orporation income taxes Individual income taxes Period Total on Re W ith N held with held funds Fiscal year: 1969........................................ 1970........................................ 1971....................................... 1972....................................... 187,784 193,743 188,392 208,596 70,182 77,416 76,490 83,282 27,258 26,236 24,262 25,683 N et total 1,660 2,208 3,535 2,760 H alf year: 565 42,469 12,744 1970—July-D ee................... 87,584 37,465 5,569 1971—Jan .-Ju n e................. r100,808 '39,025 18,693 13,957 ^43,761 17,576 574 43,465 13,262 July-D ee................... 93,180 38,449 5,589 1972—J an .-Ju n e................. 115,416 44,833 20,094 13,567 51,359 21,535 1,467 r2,069 1,448 1,312 490 r6,245 306 6,706 5,513 3,755 396 5,941 264 7,245 6,823 379 1972—Jan............................. 17,596 6,627 Feb............................. 15,239 7,581 M ar........................... 15,237 7,782 A pr............................ 24,534 6,599 M a y .......................... 17,275 8,141 June........................... 25,537 8,102 Ju ly ............................ 15,207 7,052 4,318 682 1,323 8,650 1,413 3,708 548 191 91 76 55 55 106 87,249 90,412 86,230 94,824 Em ployment taxes and Gross R e contributions1 Un- O ther N et re empl. net re total ceipts funds Pay insur. ceipts2 Selfroll taxes empl. 38,338 35,037 30,320 34,797 M onth: 1971—July............................ r13,221 Aug............................ 15,652 19,710 O ct............................. 12,462 Nov........................... 14,945 D ec............................ 17,213 10,191 13,240 14,522 14,141 Social insurance taxes and contributions r6,543 6,920 9,192 6,282 7,455 7,096 1,163 688 4,505 1,111 730 5,064 1 10,944 1,416 6,846 5,200 3,905 3,284 11,985 2,997 6,557 668 11,142 245 7,355 1,228 878 4,995 5,145 967 8,324 1,258 32,521 37,190 39,751 44,087 1,715 1,942 1,948 2,032 Estate Misc. and re gift ceipts3 15,222 15,705 16,614 15,484 2,319 2,430 2,591 3,285 3,491 3,644 3,735 5,412 2,908 3,424 3,858 3,624 8,153 1,317 8,462 1,274 8,961 1,838 6,523 1,447 1,537 2,198 2,395 3,017 2,006 1,853 1,718 1,906 3,328 3,465 3,673 4,377 2,353 2,700 3,206 3,434 39,918 45,298 48,578 53,929 17,768 133 1,348 21,983 1,815 2,325 19,643 155 1,518 24,444 1,877 4,736 1,576 1,630 1,673 1,761 20,826 '27,753 22,989 30,940 205 660 60 116 424 52 272 287 273 274 288 278 3,464 5,996 3,784 2,983 4,120 2,642 1,532 1,482 1,490 1,412 1,656 1,389 227 244 363 334 343 329 319 311 263 391 566 545 r257 245 312 324 293 286 124 153 147 545 167 71 1,153 343 223 1,636 111 64 260 295 274 325 283 303 281 289 3,615 743 5,740 819 4,350 1,130 5,655 1,091 7,443 1,371 4,137 1,370 4,277 1,442 259 224 264 215 235 250 237 621 596 602 372 461 364 334 344 347 263 342 475 135 492 284 2,987 236 5,049 198 3,299 152 Sept............................ 375 2,592 218 3,408 138 2,308 3 158 212 273 250 234 185 187 Excise Cus taxes toms 3,044 4,774 3,787 3,877 5,281 3,681 3,727 Budget outlays4 Period Educa N at Com ComH ealth mun. tion ural merce develop. and and and re and welfare man sources transp. housing power Intragovt, trans ac tions * Total N a tional de fense Fiscal year: 1969........................................ 1970........................................ 1971........................................ 1972r...................................... 1973®6................................... 184,548 196,588 211,425 231,619 7246,257 81,232 80,295 77,663 78,150 78,310 3,785 3,570 2,884 3,659 3,844 4,247 3,749 3,381 3,424 3,191 6,221 6,201 5,312 7,276 6,891 7,921 2,081 2,480 9,310 2,713 11,283 3,754 11,055 2,450 11,550 6,525 49,395 7,640 15,791 1,961 8,677 18,312 2,965 7,289 56,785 3,382 8,650 70,164 9,787 19,608 4,230 10,200 81,492 10,748 20,607 4,844 11,281 87,775 11,745 21,161 H alf year: 1970—July-D ee................... 1971—Jan .-Ju n e ................. July-D ee................... 1972—J a n .-Ju n e ................. 104,216 107,242 111,557 120,063 38,521 39,178 35,755 42,396 1,409 1,475 1,752 1,906 1,720 1,661 1,777 1,647 4,633 679 5,999 1,278 1,561 1,152 1,952 1,801 5,808 5,475 6,030 5,025 1,677 1,705 2,181 2,048 3,744 4,906 4,355 5,845 32,710 37,454 38,131 43,362 M onth: 1971—J u ly............................ '18,568 Aug............................ 19,582 Sept........................... 18,196 O ct............................. 18,791 18,947 D ec............................ 17,484 '5,203 5,595 5,979 6,106 6,175 6,713 340 308 303 303 286 181 377 291 273 266 286 285 '1,783 963 336 1,134 568 852 '292 432 344 309 302 271 '573 1,643 947 1,030 892 875 545 291 292 272 256 402 684 661 924 501 851 722 '6,190 6,385 6,169 6,499 6,437 6,444 '799 892 758 833 942 896 '1,655 1,668 1,800 1,418 1,811 1,702 '370 '- 2 4 4 533 386 287 -2 4 6 396 -2 7 6 334 -3 4 3 473 - 2 ,3 3 2 19,469 18,764 20,327 18,598 19,960 22,945 18,591 6,161 6,333 7,158 6,738 7,107 8,899 5,139 347 307 361 265 268 358 313 259 276 310 238 207 294 289 699 298 16 -1 9 6 126 335 2,397 264 237 265 255 265 515 -8 2 1 813 619 876 793 713 1,211 827 434 254 342 9 490 519 529 813 908 932 728 1,033 1,431 764 6,807 6,938 7,111 6,936 6,914 8,657 6,214 1,023 864 1,045 929 973 911 884 1,737 1,714 1,801 1,792 1,784 1,728 1,695 390 -2 7 7 400 -3 8 5 -2 9 3 401 419 -3 0 8 -3 7 1 389 495 -2 ,4 0 8 612 -2 5 2 1972—Jan ............................. Feb............................. M ar........................... M a y .......................... J u n e .......................... Ju ly ............................ Intl. affairs Space re search Agri cul ture 1 Old-age, disability, and hospital insurance, and Railroad Retirement accounts. 2 Supplementary medical insurance premiums and Federal employee retirement contributions. 3 Deposits o f earnings by Federal Reserve Banks and other miscellane ous receipts. 4 Outlays by functional categories are published in the Monthly Treasury Statement (beginning April 1969). M onthly back data (beginning July 1968) are published in the Treasury Bulletin o f June 1969. 5 Consists o f government contributions for employee retirement and interest received by trust funds. Vet erans Inter est 4,626 9,597 5,162 10,014 5,003 10,050 5,745 10,556 G en eral govt. 2,866 3,336 3,970 4,888 5,531 - 5 ,1 1 7 - 6 ,3 8 0 - 7 ,3 7 6 - 7 ,8 6 4 - 8 ,5 9 0 1,818 2,147 2,392 2,494 -3 ,6 0 7 -3 ,7 7 0 - 3 ,8 2 2 - 4 ,0 4 2 6 Estimates presented in the Jan. 1973 Budget Document. Breakdowns do not add to totals because special allowances for contingencies, Federal pay increase (excluding D epartm ent o f Defense), and revenue sharing, totaling $6,275 million for fiscal 1973, are not included. 7 On June 5, 1972, the adm inistration revised the Budget estimates— increasing total outlays to $250.0 billion; revised figures for the functional breakdown are not available. Note.—Half years may not add to fiscal year totals due to revisions in series which are not yet available on a monthly basis. A 44 U.S. GOVERNMENT SECURITIES □ SEPTEMBER 1972 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total gross public debt 1 End o f period M arketable Total Total Bills C on vert ible B onds 2 bonds Certifi cates Notes 30.0 6.0 10.1 33.6 119.5 50.2 48.3 61.4 76.5 85.4 101.2 104.2 99.2 95.2 85.3 69.9 58.6 N onm arketable Special issues 4 Total 3 Sav ings bonds & notes 8.9 56.5 6.1 49.8 7 .0 24.6 2.8 2.7 2 .6 2.5 2 .4 2 .4 52.9 52.3 54.9 56.7 56.9 59.1 50.3 50.8 51.7 52.3 52.2 52.5 46.3 52.0 57.2 59.1 71 .0 78.1 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. 1970—Dec. 320.9 329.3 344.7 358.0 368.2 389.2 270.3 273.0 284.0 296.0 295.2 309.1 214.6 218.0 226.5 236.8 235.9 247.7 60.2 64.7 69.9 75.0 80.6 87.9 1971— Aug. Sept. O ct.. Nov. Dec.. 414.6 412.3 411.9 414.6 424.1 325.8 324.5 325.8 328.4 336.7 249.7 249.9 252.2 254.5 262.0 89.6 88.6 89.0 89.8 97.5 108.2 109.5 111.5 114.0 114.0 51.9 51.8 51.8 50.7 50.6 2.3 2.3 2.3 2.3 2.3 73.8 72.2 71.3 71.6 72.3 54.0 54.2 54.4 54.7 54.9 87.0 86.0 84.3 84.4 85.7 1972—Jan.. Feb.. M ar. Apr.. M ay June. July. Aug. 422.9 424.0 427.3 425.3 427.9 427.3 432.4 435.4 336.9 336.5 340.6 340.4 339.5 335.8 339.6 339.9 261.9 261.2 265.4 263.0 261.9 257.2 257.7 258.1 97.5 98.1 102.4 98.3 98.1 94.6 95.2 96.2 114.0 112.9 112.9 114.7 113.4 113.4 113.4 115.7 50.4 50.2 50.1 50.0 50 .4 49.1 49.1 46.2 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 72.7 73.0 72.9 75.1 75.2 76.3 79.5 79.5 55.1 55.3 55.6 55.9 56.2 56.5 56.7 57.0 84.2 85.6 84.9 83.1 86.6 89.6 91.0 93.6 1 Includes non-interest-bearing debt (of which $622 million on Aug. 31, 1972, was not subject to statutory debt limitation). 2 Includes Treasury bonds and m inor am ounts o f Panam a Canal and postal savings bonds. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign currency series, foreign series, and R ural Electrification A dm inistration bonds; before 1954, Armed Forces leave bonds; before 5.9 1956, tax and savings notes; and before Oct. 1965, Series A investment bonds. 4 Held only by U.S. Govt, agencies and trust funds and the Federal home loan banks. N o t e . —Based on Daily Statement o f U.S. Treasury. See also second paragraph in N o t e to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions o f dollars) Held by private investors Held b y Total gross public debt U.S. Govt. agencies and trust funds F.R . Banks 1939—D ec................. 1946—D ec................. 41.9 259.1 6.1 2 7 .4 2 .5 23.4 1965—D ec................. 1966—D ec................. 1967—D ec................. 1968—D ec................. 1969— D ec................. 1970—Dec................. 320.9 329.3 344.7 358.0 368.2 389.2 59.7 65.9 73.1 76.6 89.0 97.1 1971—Ju ly................. Aug................. Sept................. O ct.................. N ov................. D ec.................. 405.3 414.6 412.3 411.9 414.6 424.1 1972—Jan .................. Feb.................. 422.9 424.0 427.3 425.3 427.9 427.3 432.4 End o f period A pr................. M ay ............... Ju n e ................ July................. M utual savings banks Insur ance com panies O ther corpo rations 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 57.2 62.1 220.5 219.2 222.4 228.5 222.0 229.9 60.7 57.4 63.8 66.0 56.8 62.7 5.3 4 .6 4.1 3.6 2 .9 2.8 10.3 9.5 8 .6 8.0 7.1 7 .0 15.8 14.9 12.2 14.2 13.3 10.5 22.9 24.3 24.1 24.4 25 .4 23.1 49.7 50.3 51.2 51.9 51.8 52.1 22.4 24.3 22.8 23.9 29.1 29.8 16.7 14.5 15.8 14.3 11.4 20.6 16.7 19.4 19.9 22.4 24.1 21.4 104.9 107.3 106.5 104.7 104.7 106.0 65.8 66.9 67.6 67.2 67.8 70.2 234.6 240.4 238.2 240.0 242.1 247.9 60.5 59.5 60.0 60.9 61.5 65.3 2.9 2.8 2.8 2.8 2.7 2.7 6.7 6 .7 6 .5 6.5 6.5 6.6 11.6 10.9 10.0 11.1 12.0 12.6 21.9 21.1 21.0 20.8 20.6 20.4 53.4 53.6 53.7 54.0 54.2 54.4 24.8 24.5 24.1 23.7 23.4 23.0 35.4 42.7 42.4 42.8 44.1 46.9 17.3 18.6 17.7 17.4 17.1 16.0 104.4 106.2 105.5 105.5 109.1 111.5 112.8 69.6 67.7 69.9 70.3 71.6 71.4 70.8 248.9 250.2 251.9 249.5 247.2 244.4 248.8 62.8 62.1 63.3 61.9 60.8 59.9 57.6 2 .7 2 .7 2.7 2.7 2.8 2.7 2 .7 6.5 6.5 6.5 6 .4 6.3 6 .2 6.1 12.2 12.5 12.3 11.2 12.0 10.4 10.0 21.1 22.0 21.6 21.5 21.4 21.8 22.4 54.6 54.9 55.2 55.5 55.8 56.0 56.3 22.8 2 2.4 22.3 21.9 21.4 20.8 20.7 48.2 48.9 49.9 49.8 49 .4 50.0 54.6 18.0 18.2 18.1 18.5 17.4 16.7 18.3 1 C onsists of investm ents of foreign and in tern atio n al accounts in the U nited States. 2 C onsists o f savings and lo an assns., nonprofit institutions, cor porate pension tru st funds, and dealers and brokers. A lso included are certain G ovt, deposit accounts and G ovt.-sponsored agencies. N o t e . —Reported data for F.R . Banks and U.S. G ovt, agencies and trust funds; Treasury estimates for other groups. Individuals Com mercial banks Total Other Savings bonds securities Foreign O ther and misc. inter inves national 1 tors 2 T he debt and ow nership concepts were altered beginning w ith the M ar. 1969 B u l l e t i n . The new concepts (1 ) exclude guaranteed se curities and (2 ) rem ove from U .S. G ovt, agencies and tru st funds and add to other m iscellaneous investors the holdings o f certain Govt.-sponsored but privately owned agencies and certain Govt, deposit accounts. SEPTEMBER 1972 □ U.S. GOVERNMENT SECURITIES A 45 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions o f dollars) W ithin 1 year Type o f holder and date All holders: 1969 Dec. 1970—Dec. 1971—Dec. 1972 June July Total Total Bills O ther 1-5 years 5-10 years 10-20 years Over 20 years 3 1............................................................. 31............................................................. 3 1 ............................................................. 30............................................................. 3 1 ............................................................. 235,863 247,713 262,038 257,202 257,717 118,124 123,423 119,141 121,944 122,528 80,571 87,923 97,505 94,648 95,234 37,553 35,500 21,636 27,296 27,294 73,301 82,318 93,648 89,004 89,004 20,026 22,554 29,321 26,852 26,851 8,358 8,556 9,530 9,343 9,317 16,054 10,863 10,397 10,059 10,015 U.S. Govt, agencies and trust funds: 1969—Dec. 31..................................................... 1970—Dec. 3 1 ..................................................... 1971—Dec. 3 1 ..................................................... 1972—June 30..................................................... July 3 1 ..................................................... 16,295 17,092 18,444 19,868 19,785 2,321 3,005 1,380 2,350 2,213 812 708 605 1,671 1,598 1,509 2,297 775 679 615 6,006 6,075 7,614 7,739 7,760 2,472 3,877 4,676 4,906 4,950 2,059 1,748 2,319 2,358 2,350 3,437 2,387 2,456 2,514 2,512 Federal Reserve Banks: 1969 Dec. 31..................................................... 1970 Dec. 31..................................................... 1971—Dec. 3 1 ..................................................... 1972 June 30..................................................... July 3 1 ..................................................... 57,154 62,142 70,218 71,356 70,822 36,023 36,338 36,032 40,085 39,552 22,265 25,965 31,033 31,258 30,724 13,758 10,373 4,999 8,827 8,828 12,810 19,089 25,299 24,109 24,107 7,642 6,046 7,702 5,913 5,913 224 229 584 627 627 453 440 601 622 622 Held by private investors: 1969 Dec. 31..................................................... 1970—Dec. 31..................................................... 1971—Dec. 3 1 ..................................................... 1972 June 30..................................................... July 3 1 ..................................................... 162,414 168,479 173,376 165,978 167,110 79,780 84,080 81,729 79,509 80,763 57,494 61,250 65,867 61,719 62,912 22,286 22,830 15,862 17,790 17,851 54,485 57,154 60,735 57,156 57,137 9,912 12,631 16,943 16,033 15,988 6,075 6,579 6,627 6,358 6,340 12,164 8,036 7,340 6,923 6,881 Commercial banks: 1969 Dec. 31 ............................................ 1970 Dec. 31............................................. 1971—Dec. 3 1 ............................................ 1972 June 30............................................ July 3 1 ............................................ 45,173 50,917 51,363 47,028 44,778 15,104 19,208 14,920 14,337 13,371 6,727 10,314 8,287 6,335 5,131 8,377 8,894 6,633 8,002 8,240 24,692 26,609 28,823 26,326 25,505 4,399 4,474 6,847 5,688 5,337 564 367 555 500 411 414 260 217 178 154 M utual savings banks: 1969 Dec. 3 1 ............................................. 1970— Dec. 3 1 ............................................. 1971—Dec. 3 1 ............................................ 1972 June 30............................................ July 3 1 ............................................ 2,931 2,745 2,742 2,668 2,649 501 525 416 388 368 149 171 235 175 162 352 354 181 213 206 1,251 1,168 1,221 1,192 1,188 263 339 499 502 502 203 329 281 298 297 715 385 326 287 294 Insurance companies: 1969 Dec. 3 1 ............................................. 1970—Dec. 31............................................. 1971—Dec. 3 1 ............................................ 1972 June 3 0 ............................................ July 3 1 ............................................ 6,152 6,066 5,679 5,340 5,276 868 893 , 720 525 528 419 456 325 208 220 449 437 395 317 308 1,808 1,723 1,499 1,362 1,335 253 849 993 1,027 1,021 1,197 1,369 1,366 1,356 1,357 2,028 1,231 1,102 1,068 1,034 Nonfinancial corporations: 1969 Dec. 31............................................. 1970—Dec. 31............................................. 1971—Dec. 3 1 ............................................ 1972 June 30............................................ July 3 1 ............................................ 5,007 3,057 6,021 4,182 4,830 3,157 1,547 4,191 3,010 3,491 2,082 1,194 3,280 1,945 2,160 1,075 353 911 1,065 1,331 1,766 1,260 1,492 1,020 1,194 63 242 301 135 127 12 2 16 10 9 8 6 20 9 9 Savings and loan 1969 Dec. 1970—Dec. 1971—Dec. 1 9 7 2 -Ju n e July associations: 31............................................. 31............................................. 3 1 ............................................ 30............................................ 3 1 ............................................ 3,851 3,263 3,002 2,849 2,787 808 583 629 675 652 269 220 343 359 329 539 363 286 316 323 1,916 1,899 1,449 1,250 1,236 357 281 587 608 594 329 243 162 140 132 441 258 175 175 173 State and local governments: 1969—Dec. 31............................................. 1970—Dec. 3 1 ............................................. 1971—Dec. 3 1 ............................................ 1972 June 30............................................ July 3 1 ............................................ 13,909 11,204 9,823 10,314 10,408 6,416 5,184 4,592 5,298 5,379 5,200 3,803 3,832 4,441 4,512 1,216 1,381 760 857 867 2,853 2,458 2,268 2,223 2,227 524 774 783 749 793 1,225 1,191 918 773 766 2,893 1,598 1,263 1,270 1,244 All others: 1969 Dec. 1970—Dec. 1971—Dec. 1972 June July 85,391 91,227 94,746 93,597 96,382 52,926 56,140 56,261 55,276 56,974 42,648 45,092 49,565 48,256 50,398 10,278 11,048 6,696 7,020 6,576 20,199 22,037 23,983 23,783 24,452 4,053 5,672 6,933 7,324 7,614 2,545 3,078 3,329 3,281 3,368 5,665 4,298 4,237 3,936 3,973 31............................................. 3 1 ............................................. 3 1 ............................................ 30............................................ 3 1 ............................................ N o t e . —D irect public issues only. Based on Treasury Survey o f Ownership. Beginning with Dec. 1968, certain Govt.-sponsored but privately owned agencies and certain Govt, deposit accounts have been removed from U.S. Govt, agencies and trust funds and added to “ All others.” Comparable data are not available for earlier periods. D ata complete for U.S. Govt, agencies and trust funds and F.R. Banks but for other groups are based on Treasury Survey data. O f total m ar- ketable issues held by groups, the proportion held on latest date by those reporting in the Survey and the num ber o f owners surveyed were: (1) about 90 per cent by the 5,635 commercial banks, 485 m utual savings banks, and 738 insurance companies com bined; (2) about 50 per cent by the 466 nonfinancial corporations and 487 savings and loan assns.; and (3) about 70 per cent by 504 State and local govts. “ All others,” a residual, includes holdings o f all those not reporting in the Treasury Survey, including investor groups not listed separately. A 46 U.S. GOVERNMENT SECURITIES □ SEPTEMBER 1972 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Governm ent securities By m aturity By type o f custom er Period Total W ithin 1 year Dealers and brokers 1-5 years 5-10 years Over 10 years U.S. G ovt, securities Com mercial banks O ther All other U.S. Govt. agency securities D ec.................................. 2,484 2,482 2,115 2,646 2,691 3,139 2,103 1,848 1,598 1,905 1,668 2,317 280 512 271 438 523 497 74 97 219 268 418 266 28 25 26 36 81 58 814 859 759 988 906 1,006 131 129 99 117 157 214 837 855 725 906 940 1,190 702 640 532 634 687 730 471 462 482 659 547 569 1972—Jan ................................... F eb.................................. M ar................................. A p r.................................. M ay ................................ Ju n e ................................ July................................. 3,191 3,260 3,177 2,990 2,542 2,452 2,571 2,268 2,339 2,443 2,300 1,939 2,001 2,124 571 652 464 460 348 257 283 309 242 241 203 221 161 131 44 27 29 28 35 34 33 i 879 913 800 704 589 545 633 2 391 363 437 450 364 355 382 1,120 1,170 1,060 1,002 821 759 851 3 801 815 881 835 767 793 704 623 611 459 609 485 411 438 Week ending— 1972—July 5 ......................... 12......................... 19......................... 26......................... 2,926 2,130 2,286 2,080 2,601 1,874 1,938 1,880 199 146 165 116 107 89 156 65 19 21 26 19 609 420 588 581 401 310 367 265 932 710 709 636 983 691 622 599 328 419 366 587 4,990 2,337 2,038 2,245 2,751 3,313 1,687 1,600 1,781 2,005 1,121 329 250 251 361 399 175 119 108 226 157 145 69 104 159 1,228 487 398 513 606 725 359 233 300 605 1,864 852 726 815 886 1,174 639 681 616 654 531 341 349 405 606 1971—July................................. A ug................................. Sept................................. Aug. 2 ......................... 9 ......................... 16......................... 23......................... 30......................... 1 Beginning Jan. 5, 1972, represents transactions dealers. 2 Beginning Jan. 5, 1972, represents transactions brokers. 3 Beginning Jan. 5, 1972, includes transactions in securities other than U.S. Govt., previously dealers and brokers. o f U.S. Govt, securities o f U.S. Govt, securities o f dealers and brokers shown under “ other” N o te .— The transactions data combine m arket purchases and sales o f U.S. Govt, securities dealers reporting to the F.R. Bank o f New York. They do not include allotments of, and exchanges for, new U.S. Govt, securities, redemptions o f called or m atured securities, or purchases or sales o f securities under repurchase agreement, reverse repurchase (resale), or similar contracts. Averages o f daily figures based on the num ber of trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions o f dollars) (In millions o f dollars) U.S. Governm ent securities, by maturity Period W ithin All 1 m aturi y ear ties 1-5 years 5-10 years Over 10 years U.S. Govt. agency securi ties Commercial banks Period All sources 1,296 1,456 1,347 1,044 1,107 1,056 753 904 719 907 746 931 838 496 1,750 1,344 949 657 755 804 820 1,763 1,686 1,458 953 1,280 1,108 986 4,237 3,980 3,905 3,271 1,091 1,047 1,174 969 1,005 944 831 630 891 860 759 709 1,250 1,129 1,142 962 3,093 2,796 2,865 3,240 798 635. 594 922 602 463 483 442 746 684 793 989 947 1,014 996 887 June............ July............. Week ending— 1972—June 7 . . . 1 4 ... 21. .. 28. .. -1 1 11 36 37 265 232 771 698 926 903 1,063 1,101 1971—J uly ............. 1972—Jan ................... F eb.................. M ar................. A pr.................. M ay................. Ju n e................. Ju ly ................. 5,561 4,960 4,933 3,573 4,257 3,733 3,252 4,665 4,094 4,710 3,713 4,089 3,903 3,626 437 479 228 20 84 -5 5 -1 4 6 365 304 -3 2 -1 3 1 102 -9 9 -2 1 6 94 83 27 -2 9 -1 8 -1 6 -1 1 847 554 489 422 551 532 356 1972—Jan ............... Feb.............. M ar............. Week ending— 1972—June 7 ......... 14 21 , 2 8 ......... 3,963 3,845 3,891 3,511 4,054 3,932 4,011 3,813 -2 9 -2 1 -3 8 -1 0 4 -3 9 -4 6 -7 0 -1 8 7 -2 4 -2 1 -1 2 -1 1 526 488 594 533 3,129 2,920 3,109 3,560 3,547 3,374 3,431 3,870 -1 4 9 -1 8 3 -1 3 4 -1 2 5 -2 5 6 -2 5 9 -1 8 8 -1 8 0 -1 3 -1 2 470 276 279 456 1,254 967 1,430 1,699 2,082 1,571 5,714 5,205 4,662 3,400 4,073 3,804 3,055 26 70 377 310 943 600 N o te . —The figures include all securities sold by dealers under repur chase contracts regardless o f the maturity date o f 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 am ount of securities. Included in the repurchase contracts are some th at more clearly represent investments by the holders o f the securities rather than dealer trading positions. Average o f daily figures based on num ber o f trading days in the period. 721 821 811 921 1,564 1,659 1,151 894 1,049 1,188 1,877 1,375 -2 3 344 355 394 914 626 -4 391 390 856 704 932 912 3,516 3,071 4,146 4,511 6,455 5,517 3,018 2,473 3,089 3,612 3,725 3,877 5 ......... 12 19......... 2 6 ......... All other Else where 1971—Ju ly ................. 3,011 Aug.................. 2,897 Sept.................. 3,856 O ct................... 4,353 5,846 Dec.................. 5,335 July Corpora tions 1 New Y ork City Sept............. July 5. .. 1 2 ... 1 9 ... 26. .. 1 All business corporations, except commercial banks and insurance companies. N o t e . —Averages o f daily figures based on the num ber of calendar days in the period. Both bank and nonbank dealers are included. See also N o t e to the table on the left. SEPTEMBER 1972 □ GOVERNMENT SECURITIES A 47 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, AUGUST 31, 1972 (In millions of dollars) A m ount Issue and coupon rate Issue and coupon rate Treasury bills— Cont. Feb. 15, 1 9 7 3 .... 4,102 Feb. 22, 1 9 7 3 .... 4.101 4.102 Feb. 28, 1973.. .. M ar. 1, 1973 . . . 4,105 M ar. 31, 1 9 7 3 .... 1,702 4.098 Apr. 30, 1973___ 4.102 M ay 31, 1 9 7 3 .... June 30, 1 9 7 3 .... 4.101 July 31, 1 9 7 3 .... 4.102 Aug. 28, 1 9 7 3 .... 1.700 4.102 4.099 4.102 4.103 5,803 1,800 1,802 Treasury notes Oct. 1, 1972.........li/i 1,802 1.799 Nov. 15, 1972..........6 Feb. 15, 1973..........6'A 1.701 Feb. 15, 1973..........4% 1.799 1,801 Apr. 1, 1973.........1Vi 1.800 M ay 15, 1973..........7y4 May 15, 1973..........4 y4 1,800 1,700 Aug. 15, 1973..........8Vg 1,800 Oct. 1, 1973.........m 1,801 Feb. 15, 1974..........iy 4 Treasury bills Sept. 7, 1972 Sept. 14, 1972 Sept. 21, 1972 Sept. 28, 1972 Sept. 30, 1972 Oct. 5, 1972 Oct. 12, 1972 Oct. 19, 1972 Oct. 26, 1972, Oct. 31, 1972 Nov. 2, 1972, Nov. 9, 1972, Nov. 16, 1972, Nov. 24, 1972, Nov. 30, 1972, Dec. 7, 1972. Dec. 14, 1972, Dec. 21, 1972. Dec. 28, 1972. Dec. 31, 1972. Jan. 4, 1973. Jan. 11, 1973. Jan. 18, 1973. Jan. 25, 1973. Jan. 31, 1973. Feb. 1, 1973. Feb. 8, 1973. Issue and coupon rate Amount Treasury notes—Cont. Apr. 1, 1974.........UA May 15, 1974.........7% Aug. 15, 1974.........5Ys Oct. 1, 1974.........1% Nov. 15, 1974.........5V4 Feb. 15, 1975.........5% Feb. 15, 1975.........5% Apr. 1, 1975.........li/i May 15, 1975.........5% M ay 15, 1975.........6 Aug. 15, 1975.........5% Oct. 1, 1975........ IVi Nov. 15, 1975.........7 Feb. 15, 1976.........6 Va Feb. 15, 1976.........5% Apr. 1, 1976.........li/i M ay 15, 1976.........5% May 15, 1976 ......... 6V£ 33 Aug. 15, 1976.........7i/i 1,327 2,514 Oct. 1, 1976.........li/i 4,268 Nov. 15, 1976.........614 Feb. 15, 1977.........8 34 Apr. 1, 1977......... li/i 5,844 Aug. 15, 1977.........734 3,792 Feb. 15, 1978........ 614 1,839 Nov. 15, 1978.........6 30 Aug. 15, 1979.........614 2,960 1,800 1,801 1.701 1,801 1.702 1.700 1.701 1,201 1,201 1,804 t Tax-anticipation series. A m ount Issue and coupon rate A m ount 34 Sept. 15, 1967-72. • 2i/i 4,334 Dec. 15, 1967-72. • 2Vi 10,284 Aug. 15, 1973 .4 42 Nov. 15, 1973 • 41/g 5,440 Feb. 15, •41/g 4,016 M ay 15, .414 1,222 Nov. 15, 1974 •37/s 8 M ay 15, 1975-85. .414 1,776 June 15, 1978-83. .314 6,760 Feb. 15, 1 9 8 0 .... .4 7,679 Nov. 15, 1980 • 3i/i 30 Aug. 15, 1981 .7 3,115 Feb. 15, 1982 , •63/g Aug. 15, 1 9 8 4 .... •63/8 3,739 4,945 M ay 15, 1 9 8 5 .... .314 27 Nov. 15, 1986 .61/8 2,802 Aug. 15, 1987-92. .414 2,697 Feb. 15, 1988-93. .4 4,194 M ay 15, 1989-94. .41/s 11 Feb. 15, 1 9 9 0 .,.. •3i/i 1,283 Feb. 15, 1 9 9 5 ,,,. .3 5,163 Nov. 15, 1998 , , , •31/i 5 2,264 8,389 Convertible bonds 8,207 Investment Series B A pr. 1, 1975-80.. 234 4,563 454 1,350 3,894 4,339 2,467 2,852 1,212 1,207 1,511 2,582 1,899 807 2,702 2,354 1,008 1,216 3,775 242 1,524 4,347 998 3,445 2,308 N o t e .— D irect public issues only. Based on Daily Statement o f U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions o f dollars) All issues (new capital and refunding) Type o f issue Issues for new capital Type o f issuer Period Total 196 196 196 196 4 5 6 7 196 8 196 9 197 0 197 1 G ener al obli gations Reve nue HAA1 U.S. Govt. loans State Special district O ther2 and stat. auth. 120 2,838 50 3,311 3,667 5,867 6,523 4,884 7,526 9,293 905 707 1,044 548 761 1,058 1,942 1,894 2,053 1,626 2,134 2,042 301 352 463 291 418 353 120 158 65 210 338 137 231 377 458 353 500 239 219 159 271 96 246 298 1,071 846 796 678 631 1,016 591 670 849 969 785 778 680 1,696 1,930 2,111 2,075 1,919 1,959 1,762 377 531 463 490 657 334 325 147 78 134 229 214 144 120 440 433 348 434 295 523 208 56 29 329 10 67 393 152 676 858 837 912 684 563 957 171 “ *258 5 9 3 3 1 477 459 348 341 629 441 606 735 706 840 874 568 639 354 434 471 374 246 647 545 977 954 674 828 1,199 444 1,776 2,002 2,237 2,114 1,986 2,224 1,771 1,120 1,049 1,289 1,382 990 975 1,315 654 948 718 725 992 1,035 454 253 225 209 1 Only bonds sold pursuant to 1949 Housing Act, which are secured by contract requiring the Housing Assistance Adm inistration to make annual contributions to the local authority. 2 Municipalities, counties, townships, school districts. 3 Excludes U.S. Govt, loans. Based on date o f delivery to purchaser and payment to issuer, which occurs after date o f sale. 4 W ater, sewer, and other utilities. O ther H ous Veter ans’ pur ing^ aid poses 727 626 533 645 787 543 466 2,068 1,628 2,401 2,590 2,842 2,774 3,359 4,174 5,999 1972—J a n ... F e b ... M ar.. A p r... M a y .. J u n e .. J u ly .. Util ities4 2,437 1,965 1,880 2,404 2,833 1,734 3,525 5,214 208 170 312 334 282 197 103 62 506 754 523 890 869 440 oads Edu Rand cation bridges 688 900 1,476 1,254 1,526 1,432 1,532 2,642 637 464 325 477 528 402 131 1,000 1,306 1,141 1,313 836 1,394 1,367 Total 3,392 3,619 3,738 4,473 4,820 3,252 5,062 5,278 3,585 3.517 3,955 5,013 6.517 3,556 6,082 8,681 1,989 1,903 2,098 1,728 2,264 2,068 Use o f proceeds 3,812 5,407 10,069 10,201 3,784 5,144 11,538 10,471 11,303 4,110 4,695 14,643 4,810 7,115 5,946 7,884 16,489 3,596 4,926 11,838 18,110 5,595 8,399 8,714 10,246 24,495 10,847 6,417 11,329 7,177 6,804 11,405 14,766 8,985 16,596 9,269 11,881 7,725 18,164 11,850 24,962 15,220 1971—July. . A u g .. S e p t.. O c t... N o v .. D ec... Total amount deliv ered 3 5 Includes urban redevelopment loans. N o t e . —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 am ounts o f long-term issues based on date o f sale unless otherwise indicated. C omponents may not add to totals due to rounding. A 48 SECURITY ISSUES □ SEPTEMBER 1972 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 N oncorporate C orporate Period Total U.S. G o v t.2 U.S. Govt, agency3 State and local (U.S.)* Bonds O ther5 Stock Total Total Publicly offered Privately placed Preferred C om m on 1964...................... 1965...................... 1966...................... 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 1967...................... 1968...................... 1969...................... 1970....................... 1971....................... 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 1971—June.......... Ju ly ........... Aug........... Sept........... O c t.c......... N ov. c. . . . D e c.c........ 10,994 9,316 9,346 9,445 9,410 10,568 6,911 2,779 1,153 3,228 1,698 2,455 3,254 443 1,812 2,049 1,500 1,774 1,876 1,300 698 1,988 1,951 1,850 2,044 1,679 2,286 2,058 40 17 237 161 12 24 39 4,375 4,147 2,532 3,768 3,387 3,704 3,673 3,042 1,951 1,844 2,573 2,665 2,436 2,473 2,283 1,331 1,428 1,966 1,942 2,003 1,190 760 619 416 607 723 433 1,283 104 1,527 270 165 86 270 169 1,228 669 418 1,031 637 999 1,031 1972—Jan ............ Feb............ M ar........... A pr. r........ M ay r ........ Ju n e.......... 7,188 7,302 6,556 8,635 9,547 7,588 529 539 586 2,281 1,090 1,500 1,401 1,325 400 1,090 1,500 300 1,737 1,942 2,185 1,963 1,924 2,222 316 126 156 26 165 190 3,205 3,369 3,229 3,275 3,597 4,341 2,371 2,329 2,253 2,411 2,450 2,556 1,767 1,917 1,677 1,622 1,676 1,336 604 412 577 789 774 1,218 303 195 282 263 130 612 531 846 694 601 1,017 1,174 Gross proceeds, major groups of corporate issuers M anufacturing Commercial and miscellaneous Transportation Bonds Stocks Bonds Stocks Bonds 1964. 1965. 1966. 2,819 4,712 5,861 228 704 1,208 902 1,153 1,166 220 251 257 944 953 1,856 1967. 1968. 1969. 1970. 1971. 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 1971—June. J u ly .. A ug.. Sept.. Oct.. , N ov. D ec.. 1,031 383 262 991 571 637 687 175 200 212 154 91 174 293 497 159 76 123 150 61 246 1972—J a n ... Feb.. M ar.. A p r.r M ay r Ju n e. 321 428 448 383 607 468 71 101 155 197 154 299 163 67 178 235 193 181 Period Com m unication R eal estate and financial Bonds Stocks Bonds Stocks Bonds Stocks 38 60 116 2,139 2,332 3,117 620 604 549 669 808 1,814 1,520 139 189 3,391 3,762 1,747 466 514 193 1,859 1,665 1,899 2,213 1,998 466 1,579 247 47 420 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 6,601 186 662 1,671 1,638 2,212 290 188 175 295 172 232 127 182 157 76 120 185 145 199 115 62 12 29 5 6 33 616 520 687 578 703 672 520 439 212 162 492 230 545 371 204 232 359 235 432 261 311 14 1,390 9 42 513 500 385 525 624 660 510 300 144 126 179 224 303 335 138 104 264 178 281 341 268 142 102 129 142 171 14 4 3 3 71 15 418 388 386 924 381 1,018 115 600 354 295 357 520 458 438 197 177 376 368 294 60 30 1 16 431 742 865 942 562 751 349 202 171 170 190 270 179 1 Gross proceeds are derived by multiplying principal amounts or num ber o f units by offering price. 2 Includes guaranteed issues. 3 Issues not guaranteed. 4 See n o te to table at bottom o f preceding page. Stocks Public utility 46 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organ izations. N o t e . —Securities and Exchange Commission estimates o f new issues m aturing in more than 1 year sold for cash in the United States. SEPTEMBER 1972 □ SECURITY ISSUES A 49 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) D erivation o f change, all issuers1 All securities Period Bonds and notes C om m on and preferred stocks New issues Retirements N et change New issues Retirements N et change New issues Retirements N et change 7 8 9 0 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 -9 0 0 4,272 6,801 13,452 1971—1 .. II. III IV 11,241 13,212 10,746 11,488 2,015 2,979 1,992 2,521 9,226 10,233 8,754 8,967 8,765 8,974 6,159 8,019 1,776 2,681 1,649 2,084 6,989 6,294 4,510 5,935 2,476 4,238 4,586 3,469 239 299 343 437 2,237 3,939 4,244 3,032 1972—1 .. 10,072 2,691 7,381 6,699 2,002 4,698 3,373 690 2,683 196 196 196 197 197 Type o f issuer M anu facturing Period Bonds & notes Transpor tation 3 Commercial and other 2 Stocks Public utility Communi cation Real estate and financial 1 Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks 7,237 4,418 3,747 6,641 6,585 832 - 1 ,8 4 2 69 870 2,534 1,104 2,242 1,075 853 827 282 821 1,558 1,778 2,290 1,158 987 946 1,104 900 165 -1 4 9 186 36 800 3,444 3,669 4,464 6,861 6,486 652 892 1,353 2,917 4,206 1,716 1,579 1,834 4,806 3,925 467 120 241 94 1,600 1,302 1,069 1,687 2,564 5,005 -1 3 0 -7 4 1 866 1,107 2,017 - I ................... I I .................. I l l ................ IV ................. 2,076 2,296 852 1,361 520 885 676 453 201 446 -1 0 190 416 757 678 445 271 461 195 -2 7 33 374 230 163 1,897 1,347 1,493 1,749 948 1,261 814 1,183 1,194 919 832 980 66 38 1,442 54 1,349 825 1,148 1,683 255 624 404 734 - I ................... 696 423 31 545 267 15 827 872 1,020 402 1,856 425 1967. 1968. 1969. 1970. 1971. 1 Excludes investment companies. 2 Extractive and commercial and miscellaneous companies. 3 R ailroad and other transportation companies. N o t e . —Securities and Exchange Commission estimates o f cash transactions only. As contrasted with data shown on opposite page, new issues exclude foreign sales and include sales o f securities held by affiliated companies, special offerings to employees, and also new stock issues and cash proceeds connected with conversions o f bonds into stocks. Retirements are defined in the same way and also include securities retired with internal funds or with proceeds o f issues for that purpose, OPEN-END INVESTMENT COMPANIES (In millions o f dollars) Year Sales and redem ption o f own shares Sales 1 R edem p tions N et sales Assets (m arket value at end o f period) T otal 2 Cash position 3 O ther Sales and redem ption o f own shares Sales 1 Redem p tions Assets (m arket value at end o f period) N et sales T otal 2 Cash position 3 O ther 1971—Ju ly ... A ug... Sept... O c t.... N ov... D e c... 371 432 304 596 397 453 444 394 471 419 334 411 -7 3 38 -1 6 7 177 63 42 51,424 53,798 53,291 51,160 50,958 55,045 2,856 3,016 2,511 2,885 3,172 3,038 48,568 50,782 50,780 48,275 47,786 52,007 1972—J a n .... F e b ... M ar... 42,135 A pr.. . 49,490 M a y .. 44,445 Ju n e r . J u ly . . 43,969 53,531 521 404 472 405 378 393 398 475 514 667 655 585 544 424 46 -1 1 0 -1 9 5 -2 5 0 -207 -1 5 1 -2 6 56,694 58,536 58,740 58,870 59,736 57,708 56,932 3,163 3,478 3,251 2,827 2,763 3,015 3,219 53,531 55,058 55,489 56,043 56,973 54,693 53,713 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 1970............... 1971................ 4,624 5,145 2,987 4,751 1,637 774 47,618 56,694 3,649 3,163 1 Includes contractual and regular single purchase sales, voluntary and contractual accumulation plan sales, and reinvestment o f investment in come dividends; excludes reinvestment o f realized capital gains dividends. 2 M arket value at end o f period less current liabilities. M onth 3 Cash and deposits, receivables, all U.S. G ovt, securities, and other short-term debt securities, less current liabilities. N o te . —Investment Com pany Institute data based on reports o f m em bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. D ata reflect newly formed companies after their initial offering o f securities. A 50 BUSINESS FINANCE □ SEPTEMBER 1972 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Profits before taxes In come taxes Profits after taxes Cash divi dends Undis tributed profits Corporate capital consump tion allow ances1 19 66 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 1968 1969 1970, 1971 87.6 84.9 74.3 83.3 39.9 40.1 34.1 37.3 47.8 44.8 40.2 45.9 23.6 24.3 24.8 2 5.4 24.2 20.5 15.4 20.5 46.8 51.9 55.2 60.3 Y ear Q uarter Profits before taxes In come taxes Profits after taxes Cash divi dends Undis tributed profits Corporate capital consum p tion allow ances 1 1970—1 1 . .. I I I . .. IV ... 75.2 76.6 69.6 34.6 35.4 32.2 40.6 41.2 37.4 24.7 24.9 24.7 15.8 16.3 12.7 54.8 55.2 56.1 1971—I . . . . I I .. . I I I .. . I V ... 81.3 84.5 84.1 83.2 38.0 38.6 37.5 35.3 43.2 45.8 46.6 48.0 25.5 25.4 25.5 25.2 17.7 20.4 21.0 22.7 57.5 59.4 61.2 63.0 1972—1 . . . . I I .... 88.2 93.1 38.8 40.7 49.5 52.4 26.0 26.2 r23.5 2 .2 64.8 68.4 i Includes depreciation, capital outlays charged to current accounts, and N ote.— D ept, o f Commerce estim ates. adjusted annual rates. accidental damages. Quarterly data are at seasonally CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets N et working capital End o f period Total Cash U.S. Govt. securi ties C urrent liabilities Notes and accts. receivable N otes and accts. payable Inven tories U.S. G o v t.1 Other Other U.S. G o v t.1 Other Accrued Federal income taxes Total O ther 1967................................. 1968................................. 1969................................ 198.9 212.0 213.2 470.4 513.8 555.9 54.1 58.0 54.9 12.7 14.2 12.7 5.1 5.1 4.8 216.0 237.1 261.0 153.4 165.8 184.8 29.0 33.6 37.8 271.4 301.8 342.7 5.8 6 .4 7.3 190.6 209.8 238.1 14.1 16.4 16.6 60.8 69.1 80.6 1970—1........................... I I ......................... I l l ....................... I V ....................... 213.3 213.6 214.0 217.0 561.0 566.3 567.6 572.1 52.9 52.5 53.7 56.9 12.5 10.7 9 .3 9 .7 4.7 4 .4 4.2 4 .2 264.5 268.7 270.0 268.1 188.0 190.2 191.8 194.4 38.5 39.9 38.5 38.8 347.7 352.7 353.6 355.2 7 .2 7 .0 6.8 6.6 238.4 244.1 243.0 244.5 18.0 14.6 15.4 15.9 84.2 87.1 88.3 88.1 1971—1........................... I I ......................... I l l ....................... IV 2 ..................... 220.4 226.3 231.3 235.3 576.9 582.6 591.9 601.5 55.8 58.6 59.8 63.0 10.1 10.3 10.6 13.0 4 .2 3.9 3.9 3.5 269.8 273.2 276.9 277.6 196.8 197.4 199.5 201.3 40.1 39.3 41.2 43.0 356.5 356.3 360.6 366.2 6.1 5.3 5 .2 4 .9 240.3 241.2 242.2 247.4 18.6 16.8 18.7 19.5 9 1 .4 93.0 94.7 9 4.4 1972—1........................... 240.6 611.8 62.7 12.3 3.4 282.7 205.4 45.2 371.2 4.9 247.3 21.4 97.7 1 Receivables from, and payables to, the U.S. Govt, exclude amounts offset against each other on corporations’ books. 2 New series (for which figures for the third and fourth quarters o f 1971 were published in the April B u l l e t i n ) has been tem porarily abandoned by SEC. N o te . —Securities and Exchange Commission estim ates; excludes banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions o f dollars) Public utilities Transportation M anufacturing Period Mining T otal D urable N on durable Commu nications Gas and other Other i Rail road Air Other Electric 6.75 7.66 8.94 10.65 12.86 14.58 2.00 2.54 2.67 2.49 2.44 2.86 6.34 6.83 8.30 10.10 10.77 12.30 14.59 15.14 16.05 16.59 18.05 19.51 Total (S.A. A.R.) 196 7 196 8 196 9 197 0 197 1 1972 2 . . . . 65.47 67.76 75.56 79.71 81.21 89.77 14.06 14.12 15.96 15.80 14.15 16.11 14.45 14.25 15.72 16.15 15.84 16.50 1.65 1.63 1.86 1.89 2.16 2.20 1.86 1.45 1.86 1.78 1.67 1.75 2.29 2.56 2.51 3.03 1.88 2.42 1.48 1.59 1.68 1.23 1.38 1.55 1970—IV .. 21.66 4 .26 4.4 0 .50 .43 .76 .33 3.12 .63 2.81 4.42 78.63 1971—1 . . . 1 1 ... 111.. IV .. 17.68 20.60 20.14 22.79 3.11 3.52 3.40 4.12 3.58 4.03 3.91 4.32 .49 .54 .55 .59 .34 .47 .42 .45 .34 .60 .39 .56 .28 .36 .37 .37 2.70 3.20 3.35 3.60 .41, .63 .71 .69 2.50 2.81 2.62 2.84 3.94 4.4 4 4.42 5.26 79.32 81.61 80.75 83.18 1972—1 . . . II 2. III 2 19.38 22.90 22.41 3.29 4.09 3.95 3.32 4.09 4.00 .58 .61 .58 .48 .47 .49 .50 .76 .50 .32 .38 .34 3.19 3.56 3.72 .44 .71 .87 2.72 4.55 86.79 90.69 89.72 1 Includes trade, service, construction, finance, and insurance. 2 Anticipated by business. 8.24 7.96 N o te . —D ept, o f 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. SEPTEMBER 1972 □ REAL ESTATE CREDIT A 51 MORTGAGE DEBT OUTSTANDING (In billions of dollars) End o f period All properties Farm O ther holders2 Finan All cial hold Indi insti U.S. viduals ers tutions 1 agen and cies others Finan O ther All cial hold hold insti ers tutions 1 e rs 3 N onfarm 1- to 4-family houses4 All hold ers Total Finan. O ther hold insti tutions 1 ers M ultifamily and commercial properties 5 Total Finan. O ther hold insti tutions 1 ers M ortgage ty p e6 FH A VAunderwritten C on ven tional 1941 1945 37.6 35.5 20.7 21.0 4 .7 2 .4 12.2 12.1 6 .4 4 .8 1.5 1.3 4 .9 3 .4 31.2 30.8 18.4 18.6 11.2 12.2 7.2 6 .4 12.9 12.2 8.1 7 .4 4.8 4.7 3.0 4.3 28.2 26.5 1964 1965 1966 1967 1968 1969. 300.1 325.8 347.4 370.2 397.5 425.3 241.0 264.6 280.8 298.8 319.9 339.1 11.4 12.4 15.8 18.4 21.7 26.8 47.7 48.7 50.9 53.0 5 5.8 59.4 18.9 21.2 23.3 25.5 27.5 29.5 7 .0 7 .8 8 .4 9.1 9.7 9 .9 11.9 13.4 14.9 16.3 17.8 19.6 281.2 304.6 324.1 344.8 370.0 395.9 197.6 212.9 223.6 236.1 251.2 266.8 170.3 184.3 192.1 201.8 213.1 265.0 27.3 28.7 31.5 34.2 38.1 1.8 83.6 9 1.6 100.5 108.7 118.7 129.1 63.7 72.5 80.2 87.9 97.1 105.5 19.9 19.1 20.3 20.9 21.6 23.6 77.2 81.2 84.1 88.2 93.4 204.0 223.4 240.0 256.6 276.6 1969—III. IV . 418.7 425.3 335.7 339.1 24.9 26.8 58.1 5 9.4 29.2 29.5 10.1 9 .9 19.1 19.6 389.5 395.9 263.4 266.8 222.5 223.6 40.9 43.2 126.0 129.0 103.1 105.5 22.9 23.5 98.5 100.2 291.0 295.7 1970—1 . .. 11.. III. IV . 429.4 435.6 443.4 451.7 340.7 344.5 349.7 355.9 28.6 30.0 31.7 33.0 60.1 61.1 61.9 62.8 29.8 30.3 30.8 31.2 9 .8 9 .8 10.0 10.1 20.0 20.5 20.8 21.1 399.6 405.2 412.5 420.5 268.5 271.7 276.0 280.2 223.8 225.7 228.5 231.4 44.7 46.0 47.5 48.8 131.1 133.5 136.5 140.3 107.1 109.1 111.4 114.6 23.9 24.5 25.1 25.7 101.9 103.2 106.8 109.2 297.6 302.0 305.7 311.3 1971—1 ... 11.. III. IV . 459.0 471.1 485.6 499.9 361.8 372.0 383.6 394.5 33.6 35.2 37.4 105.4 63.6 63.9 64.6 66.8 31.8 31.9 32.4 32.9 10.1 9 .7 9 .8 9 .9 2 1.7 22.2 22.6 23.0 427.2 439.3 453.2 467.0 283.6 290.8 299.7 307.8 234.5 240.7 248.0 254.2 49.1 50.1 51.7 53.6 143.6 148.3 153.5 159.2 117.5 121.6 125.8 130.5 26.1 26.7 27.7 28.7 111.0 114.4 316.2 324.9 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 FN M A and, beginning fourth quarter 1968, new G N M A as well as FH A , VA, PH A , Farmers Home Admin., and in earlier years, R FC, HOLC, and FFM C. They also include U.S. sponsored agencies—new FN M A , Federal land banks, G N M A (Pools), and the FH LH C . Other U.S. agencies (amounts small or sep arate 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. 4 For multifamily and total residential properties, see tables below. MORTGAGE DEBT OUTSTANDING ON RESIDENTIAL PROPERTIES 5 Derived figures; includes small am ounts o f farm loans held by savings and loan assns. 6 D ata by type o f mortgage on nonfarm 1- to 4-family properties alone are shown in table below. N o t e . —Based on data from Federal D eposit Insurance Corp., Federal H om e Loan Bank Board, Institute o f Life Insurance, D epts. o f Agricul ture and Commerce, Federal N ational M ortgage Assn., Federal Housing Admin., Public Housing Admin., Veterans Admin., G overnment N ational M ortgage Assoc., Federal H om e Loan M ortgage Corp., and Comptroller o f the Currency. Figures for first three quarters o f each year are F.R. estimates. MORTGAGE DEBT OUTSTANDING ON NONFARM 1- to 4-FAMILY PROPERTIES (In billions o f dollars) (In billions o f dollars) End of period Total G overnmen itUJnderwritte :n All residential M ultifamily i Finan cial insti tutions O ther holders Total F inan cial insti tutions Other holders End o f period 1941................. 1945................. 1963................ 1964................ 2 4.2 24.3 211.2 231.1 14.9 15.7 176.7 195.4 9 .4 8 .6 34.5 35.7 5 .9 5 .7 29.0 33.6 3 .6 3 .5 20.7 25.1 2 .2 2 .2 8.3 8.5 1965................ 1966................. 1967................. 1968................. 1969................. 250.1 264.0 280.0 298.6 319.0 213.2 223.7 236.6 250.8 265.0 36.9 40.3 43.4 47.8 54.0 37.2 40.3 43.9 47.3 52.2 29.0 31.5 34.7 37.7 41.3 8 .2 8.8 9 .2 9 .6 10.9 1970—1........... I I ......... I l l ___ IV ........ 321.7 326.3 332.2 338.2 265.9 268.9 272.8 277.2 55.8 57.4 59.4 61.0 53.2 54.5 56.1 58.0 42.9 43 .2 44.3 45.8 10.3 11.3 11.8 12.2 1971—1........... II, . , I I I ___ IV ........ 343.3 353.1 364.0 374.7 281.6 290.1 298.4 306.1 61.7 63.0 65.6 68.6 59.7 62.3 64.3 66.8 47.2 4 9.4 50.4 52.0 12.5 12.9 13.9 14.8 i Structures o f five o r m ore units. N o t e . — Based on data from same source as for “ M ortgage D ebt Out standing” table. Total Total FH A insured VAguaranteed i Con ven tional 1954.................................. 1963.................................. 1964.................................. 18.6 182.2 197.6 4.3 65.9 69.2 4.1 35.0 38.3 .2 30.9 30.9 14.3 116.3 128.3 1965.................................. 212.9 223.6 236.1 251.2 266.8 73.1 76.1 79.9 84.4 90.2 42.0 44.8 47.4 5 0.6 54.5 31.1 31.3 32.5 33.8 35.7 139.8 147.6 156.1 166.8 176.6 268.5 271.7 276.0 280.2 91.6 92.2 95.1 97.3 55.6 56.1 58.1 59.9 36.0 36.0 37.0 37.3 176.9 179.6 181.0 182.9 283.6 290.9 299.7 307.8 98.2 100.4 102.9 105.2 61.0 62.8 64.4 65.7 37.3 37.6 38.5 39.5 185.3 190.5 196.8 202.6 1968.................................. 1969................................... 1970—1 ............................ I l l ......................... 1971—1............................. I I ........................... I l l ......................... 1 Includes outstanding am ount o f VA vendee accounts held by private investors under repurchase agreement. N o t e . — F or total debt outstanding, figures are FHLBB and F.R . estimates. F or conventional, figures are derived. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. A 52 REAL ESTATE CREDIT □ SEPTEMBER 1972 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 M utual savings bank holdings 2 Residential Total Total FH A in sured VAguar anteed 4,906 4,772 3,292 3,395 4 5 6 7 8 43,976 49,675 54,380 59,019 65,696 28,933 32,387 34,876 37,642 41,433 7,315 7,702 7,544 7,709 7,926 2,742 2 ,( 2,599 2,696 2,708 1969— 1 . .. I I .'. III. IV .. 67,146 69,079 70,336 70,705 42,302 43,532 44,331 44,573 7,953 8,060 8,065 7,960 1970—1 . .. II. . III. IV .. 70,854 71,291 72,393 73,275 44,568 44,845 45,318 45,640 1971—I . .. II .. II I. IV. 74,424 76,639 79,936 82,515 46,343 48,163 50,280 52,004 1941........... 1945........... 196 196 196 196 196 Residential O ther nonfarm End o f period Con ven tional VAguar anteed Total sured 1,048 856 566 521 4,812 4,208 18,876 21,997 24,733 27,237 30,800 12,405 14,377 16,366 17,931 20,505 2,638 2,911 3,138 3,446 3,758 40,556 44,617 47,337 50,490 53,456 36,487 12,287 40,096 13,791 42,242 14,500 44,641 15,074 46,748 15,569 2,711 2,743 2,793 2,663 31,638 32,729 33,470 33,950 20,950 21,459 21,924 22,113 3,894 4,088 4,081 4,019 7,* 7,800 7,885 7,919 2,496 2,575 2,583 2,589 34,184 34,469 34,850 35,131 22,248 22,392 22,825 23,284 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 1 Includes loans held by nondeposit trust companies, but not bank trust depts. 2 D ata for 1941 and 1945, except for totals, are special F.R. estimates. N o t e . — Second and fourth quarters, Federal D eposit Insurance C orpo ration series for all commercial and mutual savings banks in the United Other nonfarm Total Con ven tional 3,884 3,387 Farm 900 797 28 24 11,121 13,079 11,408 14,897 11,471 16,272 11,795 17,772 12,033 19,146 4,016 4,469 5,041 5,732 6,592 53 52 53 117 117 54,178 54,844 55,359 56,138 47,305 15,678 12,097 19,530 47,818 15,769 12,151 19,898 48,189 15,813 12,169 20,207 48,682 15,862 12,166 20.654 6,756 6,908 7,053 7,342 117 117 117 114 4,038 4,054 4,250 4,351 56,394 56,880 57,402 57,948 48,874 15,865 12,105 20,904 49,260 15,931 12,092 21,237 49,628 16,017 12,127 21.654 49,937 16,087 12,008 21,842 7,413 7,519 7,671 7,893 107 101 103 119 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 c8,636 c8,951 113 107 75 50 States and possessions. First and third quarters, estimates based on special F.R. interpolations after 1963 or beginning 1964. For earlier years, the basis for first- and third-quarter estimates included F.R. commercial bank call report data and data from the N ational Assn. of M utual Savings Banks. MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end o f period) N onfarm N onfarm Period Total Farm Total FH A insured VAguar anteed Other i Total Total FH A insured Farm VAguar anteed O ther 1945................................................... 976 6,637 5,860 1,394 4,466 766 1964.................................................. 1965.................................................. 1966................................................... 10,433 11,137 10,217 9,386 9,988 9,223 1,812 1,738 1,300 674 553 467 6,900 7,697 7,456 1,047 1,149 994 55,152 60,013 64,609 50,848 55,190 59,369 11,484 12,068 12,351 6,403 6,286 6,201 32,961 36,836 40,817 4,304 4,823 5,240 1967................................................... 1968.................................................. 1969................................................... 1970................................................... 1971.................................................. 8,470 7,925 7,531 7,137 7,684 7,633 7,153 6,943 6,785 7,185 757 755 663 397 320 444 346 220 80 98 6,432 6,052 6,108 6,268 6,584 837 722 537 315 497 67,516 69,973 72,027 73,227 74,700 61,947 64,172 66,254 67,555 69,125 12,161 12,469 12,271 11,551 11,086 6,122 5,954 5,701 5,540 5,195 43,664 45,749 48,282 49,898 52,274 5,569 5,801 5,773 5,672 5,574 1971—J u n e ...................................... J u ly ....................................... A ug..................................... .. Sept..................................... .. O ct...................................... .. D ec........................................ 537 590 735 672 607 607 1,346 494 551 684 636 568 565 1,285 29 20 23 73 28 20 18 9 8 8 10 11 9 10 456 523 601 515 487 492 1,252 42 39 51 36 39 42 61 74,535 74,583 74,707 74,799 74,864 74,903 75,596 68,973 69,017 69,121 69,209 69,270 69,302 69,995 11,123 11,048 10,975 10,950 10,884 10,843 10,760 5,219 5,180 5,142 5,104 5,071 5,047 5,001 52,631 52,789 52,438 52,590 52,749 52,854 c54,228 5,562 5,566 5,586 5,590 5,594 5,596 5,601 1972—Jan......................................... F eb........................................ M ar..................................... .. A pr........................................ M ay r .................................... Ju n e ................................... .. 503 436 569 560 600 708 475 392 484 504 540 643 37 26 24 30 15 31 16 12 18 15 13 21 393 354 442 459 512 591 28 44 85 54 60 65 81,056 75,456 75,424 75,469 74,931 74,987 75,517 69,940 69,897 69,163 69,379 69,409 10,722 10,674 10,599 10,535 10,467 10,391 4,986 4,952 4,932 4,903 4,873 4,838 53,704 53,750 54,366 53,725 54,039 54,180 5,539 5,516 5,527 5,543 5,552 5,578 1 1 Includes mortgage loans secured by land on which oil drilling or the end-of-Dec. figures may differ from end-of-year figures because (1) extracting operations are in process. monthly figures represent book value o f ledger assets, whereas year-end figures represent annual statement asset values, and (2) data for year-end N o t e . —Institute o f Life Insurance data. F or loans acquired, the adjustments are more complete. Beginning 1970 monthly and year-earlier monthly figures may not add to annual to tals; and for loans outstanding data are on a statem ent balance basis. SEPTEMBER 1972 □ REAL ESTATE CREDIT A 53 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages N um ber o f loans Period Total am ount committed (millions o f (dollars) Loan am ount (thousands o f dollars) C ontract interest rate (per cent) M aturity (yrs./mos.) Loanto-value ratio (per cent) Capitaliza tion rate (per cent) D ebt coverage ratio Per cent constant 1968.............................. 1969.............................. 1970............................. 1971.............................. 2,569 1,788 912 1,664 3,244.3 2 ,9 2 0 .7 2,341.1 3,982.5 1,263 1,6 33 2,567 2,393 7.66 8.69 9.93 9.07 22/11 21/8 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 9.5 10.2 11.1 10.4 1971—Jan ................... Feb.................. M ar.................. A pr.................. June................. Ju ly ................. Aug.................. Sept.................. O ct................... N ov.................. D ec.................. 69 90 124 137 146 203 183 153 178 112 136 133 141.4 237.7 351.5 302.1 257.3 729.0 386.5 434.4 366.1 198.4 288.2 290.0 2,050 2,641 2,835 2,205 1,762 3,591 2,112 2,839 2,057 1,771 2,119 2,181 9.69 9.47 9 .14 8.98 8.91 8.92 8.94 9.08 9.15 9.20 9.01 8.96 22/8 22/11 23/4 22 23/4 23/8 21/10 23/1 22/6 22/7 23/5 23 74.3 72.9 75.0 75.2 75.6 75.5 74.4 74.9 74.8 75.8 75.6 74.4 10.5 10.2 10.2 9 .9 10.0 9 .8 9 .8 9 .9 9 .8 10.0 9 .9 9.9 1.31 1.32 1.32 1.28 1.27 1.29 1.26 1.27 1.28 1.28 1.27 1.30 10.7 10.6 10.4 10.4 10.4 10.2 10.4 10.4 10.4 10.4 10.2 10.2 1972—Jan ................... Feb.................. M ar................. 107 122 220 198.6 423.5 530.4 1,856 3,471 2,411 8.78 8.62 8.50 22/1 22/6 24/2 73.3 73.3 76.3 10.0 9 .7 9 .5 1.31 1.31 1.29 10.2 10.0 9 .7 N o t e . —Life Insurance Association o f America data for new commit ments o f $100,000 and over each on mortgages for multifamily and non residential nonfarm properties located largely in the U nited States. The 15 companies account for a little more than one-half o f both the total assets and the nonfarm mortgages held by all U.S. life insurance companies. Averages, which are based on number o f loans, vary in part with loan composition by type and location o f property, type and purpose o f loan, and loan amortization and prepayment terms. D ata for the following are limited to cases where inform ation 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 o f debt). All statistics exclude construction loans, increases in existing loans in a com pany’s portfolio, reapprovals, and loans secured by land only. MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions o f dollars) (In millions o f dollars) Advances outstanding (end o f period) Loans outstanding (end o f period) Loans made Period Period Total i 1945............... New home con struc tion 1,913 181 Home pur chase 1,358 FH A - VAin guar sured anteed T o tal 2 24,913 6,638 10,538 101,333 4,894 24,192 6,013 10,830 110,306 5,145 16,924 3,653 7,828 114,427 5,269 1967............... 1968............... 1969............... 1970............... 1971............... 20,122 21,983 21,847 21,383 39,472 1971—J u ly ... A u g ... S ep t... O ct.. . N o v ... D e c .. . 4,151 4,111 3,672 3,405 3,298 3,592 686 641 628 609 589 573 1972—J a n .... Feb.. . M ar... A p r... M ay. . Ju n e r . Ju ly ... 2,632 2,849 2,849 3,819 4,603 5,449 4,565 481 518 712 707 836 872 745 4,243 9,604 4,916 11,215 4,757 11,254 4,150 10,237 6,835 18,811 6,683 89,756 6,398 98,763 6,157 103,001 121,805 130,802 140,347 150,331 174,385 5,791 6,658 7,917 10,178 13,798 6,351 7,012 7,658 8,494 10,848 109,663 117,132 124,772 131,659 149,739 2,087 2,225 1,951 1,717 1,661 1,590 163,951 166,342 168,464 170,106 172,047 174,385 12,592 12,852 13,130 13,278 13,521 13,798 9,784 10,034 10,232 10,374 10,582 10,848 141,575 143,456 145,102 146,454 147,944 149,739 1,253 1,400 1,861 1,819 2,276 2,920 2,514 175,838 177,614 180,145 182,711 185,431 188,884 191,703 13,976 14,167 14,450 14,697 14,878 15,019 15,159 11,013 11,264 11,546 11,789 12,010 12,293 12,615 150,849 152,183 154,149 156,225 158,543 161,572 163,929 1 Includes loans for repairs, additions and alterations, refinancing, etc. not shown separately. 2 Beginning with 1958, includes shares pledged against mortgage loans; beginning with 1966, includes junior liens and real estate sold on contract; and beginning with 1967, includes downward structural adjustment for change in universe. Note.—Federal Home Loan Bank Board data. Repay ments Total Con ven tional 5,376 1964............... 1965............... 1966............... A d vances M em bers’ deposits (end of Short Long period) term 1 term 2 278 213 195 176 19 46 1964......................... 1965......................... 1966......................... 5,565 5,007 3,804 5,025 4,335 2,866 5,325 5,997 6,935 2,846 3,074 5,006 2,479 2,923 1,929 1,199 1,043 1,036 1968......................... 1969......................... 1970......................... 1971......................... 1,527 2,734 5,531 3,256 2,714 4,076 4,386 1,861 5,259 1,500 9,289 1,929 10,615 5,392 7,936 3,985 4,867 8,434 3,081 3,002 401 392 855 7,534 4,934 1,432 1,382 1,041 2,331 1,789 N ov............. D ec.............. 358 327 306 364 490 183 203 303 296 262 7,514 7,637 7,640 7,709 7,936 2,812 2,844 2,874 2,829 3,002 4,702 4,793 4,766 4,880 4,934 1,528 1,522 1,450 1,549 1,789 Feb.............. M ar.............. A pr.............. M ay............. June ............ Ju ly ............. 186 148 165 318 260 420 285 885 871 689 396 320 198 222 7,238 6,515 5,992 5,913 5,853 6,074 6,138 2,569 2,342 2,125 2,049 2,019 1,944 1,990 4,669 4,173 3,867 3,864 3,835 4,130 4,148 1,948 2,014 2,008 1,762 1,789 1,746 1,497 1971—Aug.............. Sept............. 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities o f more than 1 year but not more than 10 years. Note.—Federal Home Loan Bank Board data. A 54 REAL ESTATE CREDIT □ SEPTEMBER 1972 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY (In millions o f dollars) M ortgage transactions (during period) M ortgage holdings End o f period 196 196 196 197 197 Pur chases Sales 1,474 2,046 3,270 4,431 1,400 1,944 4,121 5,078 3,574 12 15,674 11,184 4,490 16,204 11,562 4,642 16,732 17,202 17,535 17.791 407 659 635 553 406 350 FH A insured 5,522 4,048 7,167 5,121 10,950 7,680 15,502 11,071 17.791 7 8 9 0 1 1971-July.. A ug.. Sept.. Oct. . N ov.. D e c .. 1972-Jan... F eb .. M ar.. A p r.. M ay. Ju n e. J u ly .. D ate o f auction VAguaranteed Total 17,977 18,220 18,342 18,403 18,599 18,628 18,740 16,926 13,654 13,744 13,923 13,952 14,013 1,178 4,687 4,659 4,674 4,670 4,714 G overnment-underwritten Conventional hom e loans home loans M ortgage commitments M ade during period Out stand ing 1,736 2,697 6,630 8,047 4,986 501 1,287 3,539 5,203 5.694 576 1,219 572 655 893 1,014 5,709 5,146 5,327 5,208 5,466 5.694 574 598 469 281 324 316 246 321 223 258 M ortgage amounts Offered Average Average M ortgage yield amounts yield (short (short term term commit com m it Ac Ac cepted ments) Offered cepted ments) In millions o f dollars In per cent 1972—Feb. 28. M ar. 6 ... 1 3 ... 2 0 ... Apr. 5,558 5,696 5,635 5,853 6,186 5,957 3 . .. 1 0 ... 1 7 ... M ay June N o t e . —Federal N ational M ortgage Assn. data. T otal holdings include conventional loans. D ata prior to Sept. 1968 relate to secondary m arket portfolio o f former FN M A . M ortgage holdings include loans used to back bond issues guaranteed by GN M A . M ortgage commitments made during the period include some multifamily and nonprofit hospital loan commit ments in addition to 1- to 4-family loan commitments accepted in F N M A ’s free m arket auction system, and through the F N M A -G N M A Tandem Plan (Program 18). July Aug. 86.9 50.6 7.56 202.9 86.2 7 .54 258.8 178.5 7.56 347.4 176.3 7.60 1 ... 364.9 336.4 7.63 1 5 ... 3 0 ... 266.3 133.4 188.2 76.4 7.63 7.62 1 ... 1 2 ... 2 6 ... 83.5 97.8 48.1 76.6 7.62 7.62 1 0 ... 1 7 ... 2 4 ... 134.6 92.1 7.62 123.9 113.0 7.62 7 . .. 1 4 ... 2 1 ... 106.2 81.7 7.63 ii4 .'6 87.2 7.62 In millions of dollars In per cent 21.1 11.5 10.1 5.5 7.61 27.1 14.9 7.66 35.0 20.4 7.77 28.2 22.7 7.80 32.4 22.7 7.80 24.7 24.2 7.80 N o t e . —Average secondary m arket yields are gross—before deduction o f 38 basis-point fee paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period o f 12 years for 30-year loans, without special adjustm ent for FN M A com m it ment fees and FN M A stock purchase and holding requirements. Begin ning Oct. 18, 1971, the m aturity on new short-term commitments was extended from 3 to 4 months. M ortgage amounts offered by bidders are total eligible bids received. GNMA MORTGAGE-BACKED SECURITY PROGRAM GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ACTIVITY (In millions o f dollars) (In millions o f dollars) Pass-through securities M ortgage transactions (during period) M ortgage holdings End o f period M ortgage commitments Total FH A in sured VAguar anteed Pur chases Sales 1967............. 1968............. 1969............. 1970............. 3,348 4,220 4,820 5,184 2,756 3,569 4,220 4,634 592 651 600 550 860 1,089 827 621 1 1971-July... A u g ... Sept... Oct. .. N o v ... D e c .. . 5,282 5,279 5.259 5,245 5.260 5,294 4,761 520 4,749 510 25 29 17 15 24 32 1972-Jan.... F e b .. . M ar.. . A p r.. . M a y .. J u n e .. J u ly ... 5.287 5,281 5,243 5,125 5,214 5,235 5.287 Applications received Securities issued 1,126.2 4,3 7 3 .6 452.4 2,701.9 M ade during period O ut stand ing 197 0 197 1 1,045 867 615 897 1,171 1,266 1,130 738 1971—July. Aug. Sept. Oct.. Nov. Dec., 104.2 121.1 254.2 226.1 533.7 318.3 116.4 118.0 71.5 112.6 244.2 212.8 487 1,586 1972—Jan.. Feb.. M ar. Apr., May. June, July. 384.1 511.2 528.3 187.8 216.4 245.8 135.5 247.7 391.2 322.5 275.1 212.9 193.2 145.8 N o t e . — G overnm ent N ational M ortgage Assn. data. D ata prior to Sept. 1968 relate to Special Assistance and M anagement and Liquidating portfolios o f former F N M A and include mortgages subject to participation pool o f G overnment M ortgage Liquidation Trust, b u t exclude conven tional mortgage loans acquired by form er F N M A from the R F C M ortgage C o., the Defense Homes Corp., the Public Housing A dmin., and C om m unity Facilities Admin. Bonds sold Period 1,315.0 300.0 300.0 200.0 *566. 0 * N o t e . —Government N ational M ortgage Assn. data. U nder the M ortgage-Backed Security Program , G N M A guarantees the timely paym ent o f principal and interest on both pass-through and bond-type securities, which are backed by a pool o f mortgages insured by FH A or Farmers H om e Admin, or guaranteed by VA and issued by an approved mortgagee. To date, bond-type securities have been issued only by FN M A and FH LM C. SEPTEMBER 1972 □ REAL ESTATE CREDIT HOME-MORTGAGE YIELDS GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE (In per cent) F H A series New homes Yield on FH A insured new home loans 7.03 7.82 8.35 7 .54 7.12 7.99 8.52 7.75 7.21 8.26 9.05 7 .7 0 7.66 7.74 7.83 7.84 7.79 7.77 7.63 7.71 7.76 7.75 7.69 7.64 7.80 7.85 7.85 7.80 7.75 7.70 7.97 7.92 7.84 7.75 7.62 7.59 7.78 7.60 7.52 7.51 7.53 r7 . 55 7.58 7.58 7.49 7.44 7.42 7.46 7.49 7 .50 7.60 7.60 7.55 7.60 7.60 7.60 7.65 7.49 7.46 7.45 7.50 7.53 7.54 7 .54 FH LBB series (effective rate) New homes Existing homes 1968......................... 1969......................... 1970......................... 1971......................... 6.97 7.81 8.44 7 .60 1971---JUly ............. Aug.............. Sept.............. Oct............... N ov.............. Dec.............. 1972—Jan ............... Feb.............. M ar.............. A pr.............. M ay............. Ju n e............. J u ly ............. (In millions o f dollars) Secondary m arket Prim ary m arket (conventional loans) Period A 55 FH A -insured M ortgages Period Total 1945............. N ote.—Annual data are averages o f monthly figures. The FH A data are based on opinion reports submitted by field offices on prevailing local conditions as o f the first o f the succeeding month. Yields on FH A -insured mortgages are derived from weighted averages o f private secondary m arket prices for Sec. 203, 30-year mortgages with minimum downpayment and an assumed prepayment at the end o f 15 years. Gaps in data are due to periods o f adjustm ent to changes in maximum permis sible contract interest rates. The FH A series on average contract interest rates on conventional first mortgages in prim ary 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 firstmortgage terms, p. A-37) and an assumed prepayment at end of 10 years. Ex New isting homes homes 665 257 217 8,130 1,608 4,965 8,689 7,320 1967............. 7,150 1968............. 8,275 9,129 11,981 1971—J u n e . J u ly .. Aug.. Sept.. Oct. . Nov.. D e c .. V A -guaranteed 1,705 1,729 1,369 1,572 1,551 2,667 Pro jects1 Mortgages P rop erty im T o tal3 New Ex prove homes isting m ents2 homes 20 895 171 663 192 2,846 1,023 1,821 5,760 591 4,366 583 4,516 642 4,924 1,123 5,570 1,316 5,447 3,250 634 641 623 656 693 617 2,652 2,600 3,405 3,774 4,072 3,442 876 980 1,143 1,430 1,493 1,311 1,774 1,618 2,259 2,343 2,579 2,131 1,372 1,340 1,393 1,242 1,202 1,220 1,598 322 338 407 320 318 358 358 629 646 710 543 504 511 502 399 304 216 290 276 273 691 21 53 60 89 105 77 47 519 561 577 693 514 757 685 127 135 146 188 135 226 220 392 426 431 506 379 526 465 1972—Jan . . 1,277 F e b .. 1,094 M ar.. 1,253 A p r.. 954 M ay. 628 June. 643 420 366 349 272 259 27 516 448 449 381 369 372 280 237 401 249 217 197 62 44 54 51 56 71 629 460 658 509 603 848 204 199 231 170 185 239 425 361 427 339 418 609 1 M onthly figures do not reflect mortgage amendments included in annual totals. 2 N ot ordinarily secured by mortgages. 3 Includes a small am ount o f alteration and repair loans, not shown separ ately; only such loans in am ounts o f more than $1,000 need be secured. N ote.— Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross am ount o f insurance w ritten; VA-guaranteed loans, gross am ounts o f loans closed. Figures do not take into account principal repayments on previously insured or guaranteed loans. F or VA-guaranteed loans, am ounts by type are derived from data on num ber and average am ount o f loans closed. FEDERAL HOME LOAN MORTGAGE CORPORATION ACTIVITY DELINQUENCY RATES ON HOME MORTGAGES (Per 100 mortgages held o r serviced) (In millions o f dollars) Loans n o t in foreclosure but delinquent for— End o f period Loans in fore closure Total 30 days 60 days 90 days or more 1965................. 1966................. 1967................. 1968................. 1969................. 1970................. 1971................. 3.29 3.40 3.47 3.17 3.22 3.64 3.93 2.40 2.54 2.66 2.43 2.43 2.67 2.82 .55 .54 .54 .51 .52 .61 .65 .34 .32 .27 .23 .27 .36 .46 .40 .36 .32 .26 .27 .33 .46 1969—1........... I I ......... I ll.... IV ___ 2.77 2.68 2.91 3.22 2.04 2.06 2.18 2.43 .49 .41 .47 .52 .24 .21 .26 .27 .26 .25 .25 .27 1970—1........... I I ......... I l l ___ IV ........ 2.96 2.83 3.10 3.64 2 .1 4 2.1 0 2.26 2.67 .52 .45 .53 .61 .30 .28 .31 .36 .31 .31 .25 .33 1971—1 ........... I I .......... I l l ........ 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 1972—1........... 3.16 2.21 .58 .37 .50 M ortgage transactions (during period) End o f period N ote.—M ortgage Bankers Association o f America data from reports on 1- to 4-family FHA-insured, VA-guaranteed, and con ventional mortgages held by more than 400 respondents, including mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. M ortgage holdings C on ven tional P ur chases Sales 325 821 147 325 778 64 328 346 485 637 689 798 902 976 968 322 339 454 587 625 695 761 800 821 6 7 31 50 65 103 141 176 147 8 20 141 154 54 111 108 91 45 979 893 988 1,110 1,324 1,415 828 844 928 1,040 1,239 1,344 151 49 60 70 86 72 17 23 98 126 220 194 Total FH A VA 1970.................... 1971.................... 325 968 1971—A pr M ay. . . . Ju n e . . . . July Aug......... Sept........ Oct.......... N o v ........ Dec......... 1972—Jan.......... Feb......... M ar........ A pr......... M ay. . . . June........ 15 49 2 104 97 M ortgage commitments M ade during period O ut stand ing 182 49 76 117 49 23 7 283 305 376 300 227 182 17 126 258 232 156 117 182 290 373 455 398 313 N ote.—F ederal H om e Loan M ortgage Corp. data. D ata for 1970 include only the period beginning Nov. 26 when the FH L M C first became operational. Holdings, purchases, and sales include participations as well as whole loans. M ortgage holdings include loans used to back bond issues guaranteed by GN M A . Commitment data cover the conventional and G ovt.-underwritten loan programs. A 56 CONSUMER CREDIT □ SEPTEMBER 1972 TOTAL CREDIT (In millions o f dollars) Instalment End o f period Total A uto mobile paper Other consumer goods paper Total Noninstalment Repair and mod ernization loans i Personal loans Total Single payment loans Charge accounts Service credit 1939. 1941. 1945. 7,222 9,172 5,665 4,503 6,085 2,462 1,497 2,458 455 1,620 1,929 816 298 376 182 1,088 1,322 1,009 2,719 3,087 3,203 787 845 746 1,414 1,645 1,612 518 597 845 1950. 1955. 1960. 21,471 38,830 56,141 14,703 28,906 42,968 6,074 13,460 17,658 4,799 7,641 11,545 1,016 1,693 3,148 2,814 6,112 10,617 6,768 9,924 13,173 1,821 3,002 4,507 3,367 4,795 5,329 1,580 2,127 3,337 1965. 1966. 1967. 1968. 1969. 1970. 1971. 90,314 97,543 102,132 113,191 122,469 126,802 137,237 71,324 77,539 80,926 89,890 98,169 101,161 109,545 28,619 30,556 30,724 34,130 36,602 35,490 38,310 18,565 20,978 22,395 24,899 27,609 29,949 32,447 3,728 3,818 3,789 3,925 4,040 4,110 4,356 20,412 22,187 24,018 26,936 29,918 31,612 34,432 18,990 20,004 21,206 23,301 24,300 25,641 27,692 7,671 7,972 8,428 9,138 9,096 9,484 10,300 6,430 6,686 6,968 7,755 8,234 8,850 9,818 4,889 5,346 5,810 6,408 6,970 7,307 7,574 1971--Ju ly ................................. A ug................................. Sept................................. N ov................................. D ec.................................. 128,354 129,704 130,644 131,606 133,263 137,237 102,848 104,060 104,973 105,763 107,097 109,545 36,763 37,154 37,383 37,759 38,164 38,310 29,165 29,477 29,840 30,072 30,586 32,447 4,240 4,295 4,330 4,357 4,370 4,356 32,680 33,134 33,420 33,575 33,977 34,432 25,506 25,644 25,671 25,843 26,166 27,692 9,854 9,997 10,061 10,097 10,182 10,300 8,271 8,305 8,305 8,435 8,634 9,818 7,381 7,342 7,305 7,311 7,350 7,574 Feb.................................. M ar................................. A pr.................................. M ay ................................ Ju n e................................ July................................. 135,830 135,253 136,135 137,791 139,963 142,215 143,456 108,826 108,634 109,481 110,734 112,477 114,567 115,832 38,111 38,239 38,762 39,337 40,119 41,104 41,678 32,096 31,615 31,682 31,882 32,309 32,841 33,203 4,319 4,332 4,354 4,417 4,497 4,571 4,617 34,300 34,448 34,683 35,098 35,552 36,051 36,334 27,004 26,619 26,654 27,057 27,486 27,648 27,624 10,324 10,433 10,511 10,620 10,749 10,851 10,917 8,929 8,141 8,011 8,306 8,692 8,870 8,846 7,751 8,045 8,132 8,131 8.045 7,927 7,861 1972- i Holdings o f financial institutions; holdings o f retail outlets are ineluded in “ other consumer goods paper.” hold, family, and other personal expenditures, except real estate mortgage loans. For back figures and description o f the data, see “ Consumer Credit,” Section 16 (New) o f Supplement to Banking and, Monetary Statistics, 1965, and pp. 983-1003 o f the B u l l e t i n for Dec. 1968. N o te .—Consumer credit estimates cover loans to individuals for house- INSTALMENT CREDIT (In millions o f dollars) Financial institutions End o f period Total Retail outlets Total Com mercial banks Finance cos. 1 Credit unions Mis cellaneous lenders i Total A uto mobile dealers 2 O ther retail outlets 1939. 1941. 1945. 4,503 6,085 2,462 3,065 4,480 1,776 1,079 1,726 745 1,836 2,541 910 132 198 102 18 15 19 1,438 1,605 686 123 188 28 1,315 1,417 658 1950. 1955. 1960. 14,703 28,906 42,968 11,805 24,398 36,673 5,798 10,601 16,672 5,315 11,838 15,435 590 1,678 3,923 102 281 643 2,898 4,508 6,295 287 487 359 2,611 4,021 5,936 1965. 1966. 1967. 1968. 1969. 1970. 1971. 71,324 77,539 80,926 89,890 98,169 101,161 109,545 61,533 66,724 69,490 77,457 84,982 87,064 94,086 28,962 31,319 32,700 36,952 40,305 41,895 45,976 24,282 26,091 26,734 29,098 31,734 31,123 32,140 7,324 8,255 8,972 10,178 11,594 12,500 14,191 965 1,059 1,084 1,229 1,349 1,546 1,779 9,791 10,815 11,436 12,433 13,187 14,097 15,459 315 277 285 320 336 327 360 9,476 10,538 11,151 12,113 12,851 13,770 15,099 1971--J u ly ...................................... ................ 102,848 104,060 104,973 105,763 107,097 109,545 89,458 90,536 91,279 91,943 92,901 94,086 43,509 44,112 44,603 44,947 45,396 45,976 30,906 31,098 31,133 31,331 31,643 32,140 13,296 13,570 13,780 13,875 14,052 14,191 1,747 1,756 1,763 1,790 1,810 1,779 13,390 13,524 13,694 13,820 14,196 15,459 344 347 349 354 359 360 13,046 13,177 13,345 13,466 13,837 15,099 1972—Jan ......................................................... 108,826 108,634 109,481 110,734 112,477 114,567 115,832 93,668 93,955 94,853 96,104 97,748 99,734 100,913 45,878 45,963 46,415 47,148 48,032 49,167 49,879 31,948 31,979 32,221 32,530 32,957 33,470 33,823 14,062 14,126 14,328 14,494 14,797 15,175 15,293 1,780 1,887 1,889 1,932 1,962 1,922 1,918 15,158 14,679 14,628 14,630 14,729 14,833 14,919 359 360 366 372 381 391 397 14,799 14,319 14,262 14,258 14,348 14,442 14,522 M ay...................................................... Ju n e ...................................................... J u ly ....................................................... 1 Finance companies consist o f those institutions formerly classified as sales finance, consumer finance, and other finance companies. Miscellaneous lenders include savings and loan associations and m utual savings banks. 2 Automobile paper only; other instalment credit held by automobile dealers is included with “ other retail outlets.” See also N o t e to table above, SEPTEMBER 1972 □ CONSUMER CREDIT INSTALMENT CREDIT HELD BY COMMERCIAL BANKS A 57 INSTALMENT CREDIT HELD BY FINANCE COMPANIES (In millions of dollars) (In millions o f dollars) Autoi nobile pa]per End o f period Total Pur chased D irect Other con sumer goods paper R epair and m odern ization loans Per sonal loans End o f period Total A uto mobile paper O ther con sumer goods paper R epair and modern ization loans Per sonal loans 1939. 1941. 1945. 1,079 1,726 745 237 447 66 178 338 143 166 309 114 135 161 110 363 471 312 1939.................................. 1941.................................. 1,836 2,541 910 932 1,438 202 134 194 40 151 204 62 619 705 606 1950. 1955. 1960. 5,798 10,601 16,672 1,177 3,243 5,316 1,294 2,062 2,820 1,456 2,042 2,759 834 1,338 2,200 1,037 1,916 3,577 1950.................................. 1955.................................. 1960.................................. 5,315 11,838 15,435 3,157 7,108 7,703 692 1,448 2,553 80 42 173 1,386 3,240 5,006 1965. 1966. 1967. 1968. 1969. 1970. 1971, 28,962 31,319 32,700 36,952 40,305 41,895 45,976 10,209 11,024 10,927 12,213 12,784 12,433 13,003 5,659 5,956 6,267 7,105 7,620 7,587 8,752 4,166 4,681 5,126 6,060 7,415 8,633 9,805 2,571 2,647 2,629 2,719 2,751 2,760 2,864 6,357 7,011 7,751 8,855 9,735 10,482 11,552 1965.................................. 1966.................................. 1967.................................. 1968.................................. 1969.................................. 1970.................................. 24,282 26,091 26,734 29,098 31,734 31,123 32,140 9,400 9,889 9,538 10,279 11,053 9,941 10,279 4,425 5,171 5,479 5,999 6,514 6,648 6,521 224 191 154 113 106 94 107 10,233 10,840 11,563 12,707 14,061 14,440 15,233 1971--J u ly . . . Aug. .. S ep t.. . Oct---N o v .. . Dec__ 43,509 44,112 44,603 44,947 45,396 45,976 12,614 12,753 12,831 12,932 13,015 13,003 8,220 8,318 8,380 8,509 8,680 8,752 8,931 9,074 9,235 9,301 9,412 9,805 2,803 2,838 2,860 2,874 2,875 2,864 10,941 11,129 11,297 11,331 11,414 11,552 1971—July ....................... 30,906 31,098 31,133 31,331 31,643 32,140 10,037 10,077 10,077 10,177 10,248 10,279 6,230 6,249 6,268 6,306 6,325 6,521 101 103 104 105 106 107 14,538 14,669 14,684 14,743 14,964 15,233 1972-- J a n .. . . F e b .... M ar. .. A p r.. . . M a y ... J u n e ... July. .. 45,878 45,963 46,415 47,148 48,032 49,167 49,879 12,957 13,007 13,167 13,369 13,647 14,028 14,315 8,734 8,763 8,903 9,065 9,264 9,487 9,612 9,783 9,769 9,833 10,004 10,208 10,486 10,644 2,835 2,824 2,835 2,873 2,925 2,985 3,019 11,569 11,600 11,677 11,837 11,988 12,181 12,289 1972—Jan ......................... Feb........................ 31,948 31,979 32,221 32,530 32,957 33,470 33,823 10,197 10,207 10,340 10,474 10,642 10,865 10,974 6,501 6,508 6,554 6,574 6,686 6,820 6,936 108 107 109 112 113 114 117 15,142 15,157 15,218 15,370 15,516 15,671 15,796 S ee N o t e t o firs t ta b le o n p r e c e d in g p a g e . Sept....................... N ov....................... M ay....................... Ju n e ...................... J uly ....................... N o t e . —Finance companies consist o f those institutions formerly clas sified as sales finance, consumer finance, and other finance companies. NONINSTALMENT CREDIT INSTALMENT CREDIT HELD BY OTHER FINANCIAL LENDERS (In millions o f dollars) (In millions o f dollars) End o f period T otal A uto mobile paper O ther con sumer goods paper R epair and modern ization loans Per sonal loans Single payment loans End o f period Total Charge accounts C om mer cial banks O ther finan cial insti tutions Retail outlets Credit cardsi Service credit 1939................................... 1941................................... 1945................................... 150 213 121 27 47 16 5 9 4 12 11 10 106 146 91 1950................................... 1955................................... 1960................................... 692 1,959 4,566 159 560 1,460 40 130 297 102 313 775 391 956 2,034 1939................. 1941................. 1945................. 2,719 3,087 3,203 625 693 674 162 72 1,414 1,645 1,612 1965................................... 1966................................... 1967................................... 1968................................... 1969................................... 1970................................... 1971................................... 8,289 9,314 10,056 11,407 12,943 14,046 15,970 3,036 3,410 3,707 4,213 4,809 5,202 5,916 498 588 639 727 829 898 1,022 933 980 1,006 1,093 1,183 1,256 1,385 3,822 4,336 4,704 5,374 6,122 6,690 7,647 1950................ 1955................. 1960................. 6,768 9,924 13,173 1,576 2,635 3,884 245 367 623 3,291 4,579 4,893 76 216 436 1,580 2,127 3,337 1971—Ju ly ....................... Aug....................... Sept....................... O ct......................... N ov....................... D ec........................ 15,043 15,326 15,543 15,665 15,862 15,970 5,548 5,659 5,746 5,787 5,862 5,916 958 977 992 999 1,012 1,022 1,336 1,354 1,366 1,378 1,389 1,385 7,201 7,336 7,439 7,501 7,599 7,647 196 196 196 196 196 197 197 18,990 20.004 21,206 23,301 24,300 25,641 27.692 6,690 6,946 7,340 7,975 7,900 8,205 8.916 981 1,026 1,088 1,163 1,196 1,279 1.384 5,724 5,812 5,939 6,450 6,650 6,932 7.597 706 874 1,029 1,305 1,584 1,918 2,221 4,889 5,346 5,810 6,408 6,970 7,307 7.574 1972—Jan......................... Feb........................ M ar....................... A pr........................ M ay ...................... Ju n e....................... Ju ly....................... 15,842 16,013 16,217 16,426 16,759 17,097 17,211 5,864 5,902 5,986 6,057 6,185 6,333 6,380 1,013 1,019 1,033 1,046 1,067 1,093 1,101 1,376 1,401 1,410 1,432 1,459 1,472 1,481 7,589 7,691 7,788 7,891 8,048 8,199 8,249 1971—J u ly ... Aug— Sept. . . O c t.. . . Nov. . . Dec---- 25,506 25,644 25,671 25,843 26,166 27.692 8,498 8,633 8,694 8,722 8,795 8.916 1,356 1,364 1,367 1,375 1.387 1.384 6,173 6,120 6,101 6,269 6,482 7.597 2,098 2,185 2,204 2,166 2,152 2,221 7,381 7,342 7,305 7,311 7,350 7.574 1972—J a n .. . . F e b .... M a r .. . A p r.... M a y ... J u n e ... J u ly ... 27.004 26,619 26,654 27,057 27,486 27,648 27,624 8,937 9,008 9,083 9,176 9,294 9,406 9,473 1.387 1,425 1,428 1.444 1,455 1.445 1,444 6,719 6,008 5,969 6,239 6,638 6,764 6,680 2,210 2,133 2,042 2,067 2,054 2,106 2,166 7,751 8.045 8,132 8,131 8.045 7,927 7,861 N o t e .— O t h e r fin a n c ia l le n d e r s c o n s is t o f c r e d it u n io n s a n d m is c e l la n e o u s le n d e rs . 5 6 7 8 9 0 1 152 518 597 845 1 Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank credit card accounts outstanding are included in estimates o f instalment credit outstanding. See also N o t e to first table on preceding page. A 58 CONSUMER CREDIT □ SEPTEMBER 1972 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions o f dollars) Total Automobile paper O ther consumer goods paper Period S.A .i N.S.A. S .A .1 N.S.A. S .A .1 N.S.A. R epair and modernization loans S .A .1 N.S.A. Personal loans S .A .1 N.S.A. Extensions 78,586 82,335 84,693 97,053 102,888 104,130 117,638 1965............................................. 1966............................................. 1967............................................. 1968............................................. 1969............................................. 1970............................................. 1971............................................ 27,227 27,341 26,667 31,424 32,354 29,831 34,638 22,750 25,591 26,952 30,593 33,079 36,781 40,979 2,266 2,200 2,113 2 ’268 2,278 2,145 2,550 26,343 27*203 28*961 32,768 35]177 35*373 39*471 1971—July................................. Aug................................. Sept................................. Oct.................................. N ov................................. D ec................................. 9,675 10,049 10,156 10,031 10,572 10,130 10,098 10,300 9,849 9,797 10,711 11,966 2,773 3,004 3,147 2,992 3,162 2,973 3,032 3,066 2,927 3,037 3,105 2,780 3,399 3,465 3,462 3,467 3,595 3,604 3,415 3,465 3,454 3,423 3,737 5,061 218 222 227 229 214 217 248 253 237 225 215 181 3,285 3,358 3,320 3,343 3,601 3,336 3,403 3,516 3,231 3,112 3,654 3,944 1972—Jan ................................... Feb.................................. M ar................................. A pr................................. M ay ................................ Ju n e ................................ July................................. 10,184 10,339 10,996 10,777 10,998 11,118 10,811 8,766 8,902 10,951 10,563 11,677 12,062 11.032 2,978 3,046 3,143 3,194 3,239 3,398 3,182 2,470 2,762 3,358 3,257 3,666 3,885 3,415 3,706 3,698 3,921 3,824 3,938 3,969 4,061 3,297 2,926 3,727 3,591 3,986 4,066 3,962 221 243 249 256 243 249 236 156 202 230 262 307 290 264 3,279 3,352 3,683 3.503 3,578 3,502 3,332 2,843 3,012 3,636 3,453 3.718 3,821 3,391 Repayments 69,957 76,120 81,306 88,089 94,609 101,138 109,254 1965............................................. 1966............................................. 1967............................................. 1968............................................. 1969............................................. 1970............................................. 1971............................................. 23,543 25,404 26,499 28,018 29,882 30,943 31,818 20,518 23,178 25,535 28,089 30,369 34,441 38,481 2,116 2,110 2,142 2,132 2,163 2,075 2,304 23,780 25*428 27*130 29*850 32*195 33*679 36,651 1971—July................................. A ug................................. Sept................................. O ct.................................. N ov................................. D ec.................................. 8,914 9,222 9,157 9,107 9,306 9,230 9,112 9,088 8,936 9,007 9,377 9,518 2,565 2,697 2,732 2,634 2,662 2,696 2,618 2,675 2,698 2,661 2,700 2,634 3,203 3,262 3,172 3,219 3,254 3,188 3,226 3,153 3,091 3,191 3,233 3,200 188 196 199 197 199 198 194 198 202 198 202 195 2,958 3,067 3,054 3,057 3,191 3,148 3,074 3,062 2,945 2,957 3,252 3,489 1972—Jan................................... F eb.................................. M ar................................. A pr.................................. M ay ................................ Ju n e ................................ July................................. 9,547 9,373 9,632 9,681 9,557 9; 791 9; 784 9,485 9,094 10,104 9,310 9,934 9,972 9,767 2,761 2,693 2,693 2,767 2,748 2,851 2,835 2,669 2,634 2,835 2,682 2,884 2,900 2,841 3,501 3,408 3,422 3,531 3,457 3,526 3,681 3,648 3,407 3,660 3,391 3,559 3,534 3,600 201 200 204 207 214 207 215 193 189 208 199 227 216 218 3,084 3,072 3,313 3,176 3,138 3,207 3,053 2,975 2,864 3,401 3,038 3,264 3,322 3,108 N et change in credit outstanding 2 1965............................................. 1966............................................. 1967............................................. 1968............................................. 1969............................................. 1970............................................. 1971............................................ 3,684 1,937 168 3,406 2,472 - 1 ,1 1 2 2,820 8,629 6,215 3,387 8,964 8,279 2,992 8,384 2,232 2,413 1,417 2,504 2,710 2,340 2,498 150 90 -2 9 136 115 70 246 2,563 1,775 1,831 2,918 2,982 1,694 2,820 1971—Ju ly ................................. A ug................................. Sept................................. Oct.................................. N ov................................. D ec................................. 761 827 999 924 1,266 900 986 1,212 913 790 1,334 2,448 208 307 415 358 500 277 414 391 229 376 405 146 196 203 290 248 341 416 189 312 363 232 514 1,861 30 26 28 32 15 19 54 55 35 27 13 -1 4 327 291 266 286 410 188 329 454 286 155 402 455 1972—Jan.................................. F eb.................................. M ar................................. A pr................................. M ay ................................ J u n e ................................ July................................. 637 966 1,364 1,096 1,441 1,327 1,027 -7 1 9 -1 9 2 847 1,253 1,743 2,090 1,265 217 353 450 427 491 547 347 -1 9 9 128 523 575 782 985 574 205 290 499 293 481 443 380 -3 5 1 -4 8 1 67 200 427 532 362 20 43 45 49 29 42 21 -3 7 13 22 63 80 74 46 195 280 370 327 440 295 279 -1 3 2 148 235 415 454 499 283 1 Includes adjustm ents fo r differences in trading days. 2 N et changes in credit outstanding are equal to extensions less repaym ents. N ote .—E stim ates are based on accounting records and often include financing charges. Renewals and refinancing of loans, purchases and sales of instalm ent paper, and certain other transac tions may increase the am ount of extensions and repaym ents w ithout affecting the am ount outstanding. F o r back figures and description of the data, see “ Consum er C redit,” Section 16 (N ew ) of Supplement to Banking and M onetary Statistics, 1965, and pp. 983-1003 of the B u l l e t i n for Dec. 1968. SEPTEMBER 1972 □ CONSUMER CREDIT A 59 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Period S.A.1 N.S.A. Commercial banks Finance companies S.A.1 S.A.1 N.S.A. N.S.A. O ther financial lenders S.A.1 N.S.A. Retail outlets S.A.1 N.S.A. Extensions 29,528 30,073 30,850 36,332 38,533 39,136 45,099 78,586 82,335 84,693 97,053 102,888 104,130 117,638 1965. 1966. 1967. 1968. 1969. 1970. 1971. 25,192 25,406 25,496 28,836 30,854 29,662 32,036 9,436 10,362 10,911 12,850 14,245 14,619 17,312 14,430 16,494 17,436 19.035 19,256 20,713 23,191 1971—July.. Aug.. Sept.. O ct.. N ov.. D ec.. 9,675 10,049 10,156 10,031 10,572 10,130 10,098 10,300 9,849 9,797 10,711 11,966 3,644 3,919 3,989 3,832 4,140 3,939 3,917 4,062 3,932 3,752 3,931 4,023 2,676 2,699 2,718 2,733 2,853 2,760 2,791 2,729 2,549 2,655 3,015 3,370 1,423 1,452 1,488 1,490 1,564 1,454 1,506 1,582 1,439 1,414 1,535 1,477 1,932 1,979 1,961 1.976 2,015 1.977 1,884 1,927 1,929 1,976 2,230 3,096 1972—J a n ... F eb.. M ar.. A p r.. M ay. June. J u ly .. 10,184 10,339 10,996 10,777 10,998 11,118 10,811 8,766 8,902 10,951 10.563 li;6 7 7 12,062 11,032 3,826 3,947 4,117 4,156 4,250 4,565 4,273 3,366 3,539 4,237 4,215 4,701 4,968 4,510 2,695 2,666 2,906 2,908 2,912 2,777 2,773 2,247 2,354 2,890 2,793 3,009 3,106 2,840 1.482 1,602 1,737 1,583 1,614 1,656 1.483 1,244 1,465 1,743 1,577 1,792 1,870 1,541 2,181 2,124 2,236 2,130 2,222 2,120 2,282 1,909 1,544 2,081 1,978 2,175 2,118 2,141 Repayments 25,663 27,716 29,469 32,080 35,180 37,961 41,018 69,957 76,120 81,306 88,089 94,609 101,138 109,254 1965. 1966. 1967. 1968. 1969. 1970. 1971. 13,433 15,470 16,815 18,038 18,502 19,803 21,829 8.310 9.337 10,169 11,499 12,709 13,516 15,388 22,551 23,597 24,853 26,472 28,218 29,858 31,019 1971—July.. Aug.. Sept. O ct.. Nov.. D e c .. 8,914 9,222 9,157 9,107 9,306 9,230 9,112 9,088 8,936 9,007 9,377 9,518 3,351 3,456 3,460 3,439 3,470 3,451 3,419 3,459 3,441 3,408 3.482 3,443 2,485 2,590 2,614 2,495 2.579 2,596 2,494 2,537 2,514 2,457 2,703 2,873 1,293 1,288 1,266 1,319 1.360 1,324 1,387 1,299 1,222 1,292 1.338 1,369 1,785 1,888 1,817 1,854 1,897 1,859 1,812 1,793 1,759 1,850 1,854 1,833 1972—Jan ........ Feb___ M ar___ A pr___ M ay . . . June. . . Ju ly .. . . 9,547 9,373 9,632 9,681 9,557 9,791 9,784 9,485 9,094 10,104 9,310 9,934 9,972 9,767 3.620 3,538 3,574 3,598 3.621 3,755 3,796 3,464 3,454 3,785 3.482 3,817 3,833 3,798 2,586 2,463 2,513 2.579 2,489 2,528 2,523 2,439 2.323 2,648 2,484 2,582 2,593 2,487 1,346 1,377 1,527 1,424 1,408 1,480 1.361 1,372 1,294 1,539 1,368 1,459 1,532 1,427 1.995 1.995 2,018 2,080 2,039 2,028 2,104 2,210 2,023 2,132 1,976 2,076 2,014 2,055 N et change in credit outstanding 2 2,641 1,809 643 2,364 2,636 -6 1 1 1,017 3,865 2,357 1,381 4,252 3,353 1,590 4,081 8,629 6,215 3,387 8,964 8,279 2,992 8,384 1965. 1966. 1967. 1968. 1969. 1970. 1971. 1,126 1,025 742 1,351 1,536 1,103 1,924 997 1,024 621 997 754 910 1,362 —July................................. Aug................................. Sept................................. O ct................................... N ov................................. D ec.................................. 761 827 999 924 1,266 900 986 1,212 913 790 1,334 2,448 293 463 529 393 670 488 498 603 491 344 449 580 191 109 104 238 274 164 297 192 35 198 312 497 130 164 222 171 204 130 119 283 217 122 197 108 147 91 144 122 118 118 72 134 170 126 376 1,263 —Jan................................... Feb.................................. M ar................................. A pr.................................. M ay ................................ Ju n e ................................ J u ly ................................. 637 966 1,364 1,096 1,441 1,327 1,027 -7 1 9 -1 9 2 847 1,253 1,743 2,090 1,265 206 409 543 558 629 810 477 -9 8 85 452 733 884 1,135 712 109 203 393 329 423 249 250 -1 9 2 31 242 309 427 513 353 136 225 210 159 206 176 122 -1 2 8 171 204 209 333 338 114 186 129 218 50 183 92 178 -3 0 1 -4 7 9 -5 1 2 99 104 86 1 Includes adjustments for differences in trading days. 2 N et changes in credit outstanding are equal to extensions less re payments, except in certain months when data for extensions and re payments have been adjusted to eliminate duplication resulting from large transfers o f paper. In those months the differences between ex tensions and repayments for some particular holders do not equal the changes in their outstanding credit. Such transfers do not affect total instalment credit extended, repaid, or outstanding. N o t e . — “ Other financial lenders” include credit unions and miscellaneous lenders. See also N o t e to preceding table and Note 1 at bottom o f p. A-56. A 60 INDUSTRIAL PRODUCTION: S.A. □ SEPTEMBER 1972 MARKET GROUPINGS (1967 = 100) Grouping 1967 p ro p or tion 1971 1971 aver age1* July Aug. Sept. T otal in d ex .......................................... 100.00 106.8 106.8 105.6 107.1 Products, to ta l........................................ Final products...................................... Consumer goods............................. Equipm ent....................................... Interm ediate products....................... M aterials.................................................. 62.21 48.95 28.53 20.42 13.26 37.79 106.4 104.7 115.7 89.4 112.6 107.4 107.0 105.0 116.3 89.3 114.6 106.4 1972 Oct. Nov. Dec. Jan. Feb. M ar. Apr. M ay June July*5 108.7 110.0 111.2 112.8 113.2 113.4 113.7 106.1 107.0 107.0 104.8 105.5 105.4 115.9 116.7 116.6 89.8 89.8 89.5 110.9 112.3 113.2 104.8 107.3 106.6 107.9 106.1 118.0 89.6 114.3 106.5 108.0 106.2 118.0 89.6 114.9 108.4 108.4 106.4 118.5 89.5 115.9 109.2 109.5 107.6 119.6 90.9 117.0 110.8 110.1 108.2 119.6 92.4 117.3 113.1 111.4 109.8 122.0 92.7 117.3 115.0 112.1 110.2 122.2 93.4 119.3 115.6 112.1 110.3 122.2 93.3 119.3 115.9 112.0 110.1 121.8 93.7 119.2 116.5 116.0 117.4 119.7 119.9 109.2 109.4 140.1 140.0 117.5 116.6 102.8 143.4 120.3 119.5 106.4 144.5 118.9 119.3 104.6 147.5 125.9 128.9 114.3 157.0 125.3 127.4 111.3 158.3 125. 125.7 108.2 159.2 125.2 125.6 108.2 159.3 116.0 116.9 135.8 81.3 120.4 113.7 118.1 123.8 143.4 87.1 121.7 113.5 120.7 123.1 146.9 78.3 126.1 117.2 118.7 115.1 131.9 84.0 127.1 117.2 124.2 132.2 149.3 100.1 131.3 116.9 124.3 129.3 148.2 93.7 132.0 118.2 125.8 125.9 141.2 97.2 134.0 122.3 124.7 124.2 142.4 89.9 135.9 120.3 106.8 107.4 108.1 Consumer goods Durable consumer goods........................ Automotive products......................... A utos................................................ A uto parts and allied goods........ 7.86 115.1 117.4 2.84 119.5 121.7 1.87 108.3 107.9 .97 140.9 148.0 117.3 117.1 122.3 122.9 108.5 108.0 148.9 151.5 H om e go o d s............................................ Appliances, TV, and rad io s............. Appliances and A /C ................. TV and home audio................ Carpeting and furniture.................. Misc. home g o ods............................ 5.02 112.6 115.0 1.41 111.5 115.5 .92 127.6 126.7 .49 81.4 94.5 1.08 117.2 121.2 2.53 111.2 112.1 114.4 113.8 113.9 113.8 112.4 110.4 109.7 110.5 128.5 129.0 129.5 131 82.4 75.6 72.6 71.8 121.7 121.9 120.7 122.2 112.7 112.3 113 112.0 Nondurable consumer goods................ Clothing.............................................. Consumer staples.............................. Consumer foods and to b acco ... N onfood staples........................... Consumer chemical products. Consumer paper p ro d u c ts.. . . Consumer fuel and lighting. . Residential utilities.............. 20.67 4.32 16.34 8.37 116.0 101.4 119.8 113.6 7.98 126.3 2.64 133.9 1.91 107.9 3.43 130.8 2.25 137.6 116. 121.9 107.8 149.0 115.9 115.4 116.5 102.5 100.3 103.6 119.4 119 119.9 112 112.8 114.1 116.6 103.2 120.2 113 118.8 103.7 122.8 117.2 118.4 105.0 121.9 115.5 119.0 105.8 122.5 115.4 119.3 102.7 123.7 115.5 119.9 105.0 123.9 116.3 120.5 105.0 124.6 116.8 121.0 106.2 124.9 117.2 120.8 120.5 106.6 124.6 123.9 117.5 115.4 126.4 133.3 106 132.3 138.6 126.1 133.6 109.2 129.6 136.5 126.7 132.0 111.0 131.6 138.5 128 137.2 111.5 131.6 138.8 128.7 134.3 114.8 132.1 139.0 129.8 137.6 111.4 134.2 141.8 132.4 144.3 112.1 134.5 142.5 132.0 141.4 113.9 134.9 142.3 132.8 145.4 111.4 134.8 142.1 133.1 144.8 111.1 136.3 143.2 132.0 140.2 112.2 136.8 145.0 97.5 98.2 92.8 93.2 96 .4 96.6 82.1 81 119.0 118.7 98.2 93 95.5 83.1 118.8 97.9 94.2 95.2 83.5 121 98.0 94.2 94.0 83.8 121 98.4 99.9 101.3 101.3 102.5 102.2 102.2 95.4 96.3 95.7 96.3 97.2 96.9 94.1 98.0 99.6 101.2 98 .4 97 .0 98.3 9 9 .4 82.4 83.4 84.5 86.7 84.9 85.9 86.5 121.0 122.7 122.0 121.4 122.8 123.5 121.8 126.9 132.7 106.9 133.8 141.8 132.9 140.4 110.9 139.4 148.0 Equipment Business equipment....................... Industrial equipm ent............... Building and mining eq u ip ., M anufacturing equipm ent. Power equipm ent................. Commercial, transit, farm eq.. Commercial eq u ip m en t.. . . Transit equipm ent............... Farm equipm ent................... Defense and space equipment. M ilitary products................. 97.1 12.74 96 6.77 92.9 9 2.0 1.45 92.9 88.9 82.6 82.5 3.85 1.47 119.8 119.9 5.97 101.2 102.9 102.8 104.0 103.6 102.1 102.4 103.3 105.1 107.0 107.6 109.6 108.3 108.0 3.30 110.0 111.7 111.1 113.1 112.2 110.2 109.4 109.1 111.9 114.7 114.1 116.4 116.7 116.9 2.00 89.4 89.3 90.7 90.8 91.1 89.4 93.1 95.1 94.7 95.4 97.0 98.9 94.0 92.2 .67 93.2 100.2 97.7 98.5 98.8 100.0 96.1 98.6 102.4 103.5 106.8 108.2 109.7 111.1 7.68 5.15 77.1 79 76.3 78.8 76.3 79.2 76.0 79.0 75.7 75.6 78.3 74.8 77.6 111.5 112.8 114.2 115.2 112.9 113.5 114.4 114.5 115.7 116.1 79.0 75.9 78.8 76.0 78.5 77.6 80.7 78.5 81 78.2 81.1 78.9 81.4 79.5 82.5 Interm ediate products Construction products........... Misc. intermediate products. 5.93 112.6 115.2 109.3 7 .34 112.6 114.4 112.1 115.8 115.9 118.0 118.5 116.5 118.0 117.7 118.1 118.0 120.4 120.6 119.8 M aterials Durable goods materials.. . . Consumer durable p a rts . Equipm ent p arts.............. D urable materials n e c ... 20.91 101.7 99 .7 9 6.5 100.6 102.2 100.5 101.6 103.5 105.8 107.8 110.4 111.1 110.9 111.0 4.75 104.2 101.1 105.6 103.3 104.1 101.8 104.0 105.1 107.1 110.2 113.8 112.0 111.6 111.7 87.1 88.0 83.1 87.1 5.41 87 88.1 87.9 88.8 90.7 91.0 95.4 95.3 95.0 96.8 99.3 106.2 108.5 106.5 107.4 110.2 112.8 115.2 116.5 118.6 118.7 117.9 105.1 10.75 107 Nondurable goods materials............ Textile, paper, and chem. m a t.. N ondurable materials n.e.c. Fuel and power, industrial............. 13.99 8.58 5.41 2.89 114.1 116.6 110.3 116.3 113.6 115.5 110.6 119.6 114.7 117.7 110.0 117.4 114 115.0 115.9 118.8 119.0 121.5 108.2 108.4 107.2 119.5 98.7 104.6 116.7 123.0 106.8 117.6 116.0 120.8 108.3 117.4 117.0 121.5 109.9 117.7 119.8 125.0 111.4 118.9 120.6 125.9 112.3 121.6 121.3 127.1 112.3 120.7 122.5 128.7 112.7 121.7 123.3 129.9 112.3 122.9 Supplementary groups H om e goods and clothing. C ontainers........................... . 9.3 4 107.4 109.2 107.9 109.1 1.82 116.8 118.3 117.3 115.1 108.9 109. 116.9 119. 110.9 112.4 112.4 112.3 121.0 120.6 123.7 120.3 115.3 115.9 116.9 116.4 127.5 127.0 130.2 131.0 Gross value of products in market structure (In billions of 1963 dollars) Products, total................... Final p ro d u cts............. Consumer go o d s. . . Equipm ent................ Interm ediate p roducts. For Note see p. A-63. 392.0 391.8 390.0 392.1 393.2 396.5 396.5 398.7 402.0 405.6 409.7 413.0 412.1 410.0 302.6 300.7 302.4 303.5 303.8 306.7 305.8 306.7 309.2 312.3 317.1 318.5 317.8 315.5 213.8 213.3 213.9 214.2 215.0 217.9 217.4 217.4 218.8 220.4 224.8 225.1 224.5 221.8 88.8 87.7 88.6 89.4 89.2 89.0 88.9 89.2 90.4 91.9 92.4 93.3 93.4 93.7 89.5 91.4 87.8 88.9 89.4 90.2 90.6 92.5 92.9 93.2 92.8 94.5 94.3 94.6 SEPTEMBER 1972 □ INDUSTRIAL PRODUCTION: S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) G rouping 1967 p ro p o r tion 1972 1971 1971 aver age* July 88.55 105.2 105.8 D u rab le................................................. 52.33 9 9.4 100.3 N ondurable.......................................... 36.22 113.6 113.8 M ining and utilities................................ 11.45 118.9 119.2 6.37 107.0 105.6 5.08 133.9 136.2 U tilities................................................. Aug. Sept. Oct. Nov. Dec. Jan. Feb. M ar. Apr. M ay June 104.2 91A 114.0 118.6 106.3 134.1 105.7 99.3 115.1 118.3 105.9 134.0 106.1 100.1 114.7 114.3 97.7 135.2 106.0 99.1 115.9 117.4 102.5 136.0 106.2 99.5 116.0 120.1 107.8 135.8 107.1 100.4 116.8 120.6 107.3 137.4 108.5 102.1 117.8 121.6 107.2 139.7 109.7 103.4 118.8 122.3 108.5 139.7 111.8 105.8 120.3 122.9 109.0 140.2 112.3 106.3 120.8 122.6 107.9 141.1 112.8 113.0 106.8 107.2 121.3 121.1 122.7 122.2 107.5 107.1 141.8 141.1 July* Durable manufactures Primary and fabricated metals............. Primary m etals.................................... Iron and steel, subtotal................. Fabricated metal p ro d u cts............... 12.55 104.0 104.6 6.61 100.9 98.9 4.23 96.6 9 9 .0 5.94 107.5 110.9 Machinery and allied goods................... M achinery............................................ Nonelectrical m achinery............... 32.44 17.39 9.17 8.22 9.29 4.56 4.73 2.07 3.69 Transportation equipm ent............... M otor vehicles and p a rts ............. Aerospace and misc. trans. e q . . . Instrum ents.......................................... Ordnance, private and G ovt............ 94 .9 96.2 94.3 98.3 92.9 114.1 72.5 108.5 86.1 94.0 99.5 101.3 81.2 93.8 96.1 66.5 85.9 89.4 108.2 105.9 107.1 95.8 95.4 97.7 96.7 95.8 95.5 99.9 97.9 93.2 93.9 115.5 116.3 71.7 72.3 110.9 109.1 85.0 85.5 98.8 100.6 104.0 105.4 107.4 110.4 112.7 91.4 94.3 102.4 102.6 105.1 110.2 113.5 81.9 85.5 95.2 95.9 98.8 105.5 108.3 107.1 107.6 106.0 108.6 110.1 110.8 111.9 9 6.2 96.6 95.9 95.6 95 .7 97.3 98.4 99.5 100.3 97.9 98.3 97.8 91.9 98.5 97.0 97.4 95.9 94.8 95.1 96.2 97.6 99 .0 99.3 99.9 101.3 102.2 103.2 103.3 94.2 94.5 93.4 92.7 92.0 94.7 95.9 115.8 116.0 115.7 116.1 114.0 117.7 118.8 73.4 73.7 72.0 70.1 70.8 72.7 73.9 110.5 111.2 110.4 109.3 111.3 114.5 114.2 85.2 85.3 84.4 83.2 83.7 84.9 86.4 101.1 102.6 98.6 107.1 100.4 125.6 76.1 116.1 87.3 101.0 103.0 100.4 105.9 98.9 122.6 76.1 117.3 87.6 111.4 110.7 105.1 112.3 113.3 112.8 108.5 113.9 101.9 105.1 102.9 107.4 9 7 .4 119.1 76.4 119.3 89.2 101.9 104.5 102.1 107.3 98.2 121.2 76.1 119.7 89.3 Lumber, clay, and glass......................... L um ber and p ro d u cts....................... Clay, glass, and stone products----- 4 .44 111.5 111.4 111.0 112.1 113.2 113.7 114.8 115.5 118.0 118.1 118.1 118.2 119.2 118.1 1.65 113.9 114.1 113.9 114.8 118.2 119.4 121.7 122.0 119.7 119.6 119.9 119.1 121.8 121.0 2.79 110.0 109.8 109.3 110.6 110.1 110.4 110.7 111.6 117.0 117.2 117.1 117.5 117.7 116.4 Furniture and miscellaneous.................. Furniture and fixtures....................... Miscellaneous m anufactures............ 2.9 0 111.7 115.9 114.0 114.2 114.0 113.3 114.3 115.0 117.3 118.4 119.9 120.6 122.1 122.7 1.38 102.1 104.8 105.2 105.3 104.5 105.4 103.8 104.0 108.4 108.7 111.7 110.7 113.9 114.5 1.52 120.5 126.1 122.0 122.2 122.6 120.5 123.9 125.1 125.4 127.2 127.4 129.6 129.6 130.0 Nondurable manufactures A pparel p ro d u cts................................ Leather and p ro d u cts........................ 6.90 100.7 100.9 100.8 102.5 102.3 101.8 103.1 102.0 101.1 103.7 106.1 104.9 105.8 104.7 2.69 108.6 108.6 110.5 111.0 110.1 110.2 112.6 108.9 107.0 110.9 113.5 112.8 113.8 114.0 3.33 97.8 98.3 97.4 99.5 100.0 99.8 99.7 99.8 100.1 102.7 103.3 102.8 103.0 87.4 83.3 87.1 89.6 86.9 85.4 94.4 89.2 92.1 ' '90.'5 .88 87.4 87.0 84.2 87.7 Paper and printing.................................. Paper and p ro d u cts............................ Printing and publishing..................... 7.92 107.8 108.4 108.1 108.2 109.4 110.5 110.7 111.3 112.6 112.6 112.3 114.1 114.7 115.1 3.18 115.8 115.3 117.5 116.2 116.9 119.2 119.8 122.2 122.8 122.5 124.4 127.2 126.7 128.0 4.74 102.5 103.8 101.7 102.9 104.3 104.5 104.7 103.9 105.8 105.9 104.2 105.3 106.8 106.4 Textiles, apparel, and leather............... Chemicals, petroleum, and rubber----Chemicals and pro d u cts................... Petroleum p ro d u cts............................ R ubber and plastics products.......... Foods and tobacco.................................. F oods.................................................... Tobacco products............................... 11.92 7.86 1.80 2.26 124.8 126.4 115.7 126.0 124.7 126.0 114.8 128.1 126.3 127.7 115.8 129.9 127.5 129.9 113.7 129.6 126.6 128.4 115.7 129.1 127.9 130.8 116.0 127.7 127.9 130.4 118.3 126.6 129.8 131.2 119.3 133.3 132.6 135.1 118.7 135.0 133.4 135.7 117.9 138.1 136.1 137.9 117.0 144.7 137.5 138.9 119.5 146.5 137.4 139.3 117.3 146.5 137.3 138.9 118.7 146.6 9 .48 113.7 114.1 113.1 114.2 113.3 115.8 115.0 115.7 115.9 116.3 117.6 117.1 117.6 117.2 8.81 114.9 115.5 114.1 115.2 114.4 117.1 116.6 116.5 116.9 117.5 118.6 118.5 119.3 118.8 .67 97.7 96.6 98.2 100.3 98.5 98.2 93.8 103.8 102.5 101.9 103.9 99.1 96.4 Mining Metal, stone, and earth minerals.......... M etal m ining....................................... Stone and earth m inerals................. C o a l....................................................... Oil and gas extraction....................... 1.26 104.6 .51 121.4 .75 93.2 91.5 93.3 90.2 96.8 98.1 102.0 110.9 111.1 108.0 109.8 108.3 104.6 99.4 104.8 109.7 117.1 136.7 137.7 128.9 133.7 131.0 122.2 110.7 91.7 93.4 92.7 93.8 93.5 91.4 90.1 92.7 92.6 91.7 98.6 104.3 94.7 98.0 106.3 92.4 5.11 107.6 109.1 108.7 107.9 96.6 100.4 107.1 107.1 106.5 108.6 110.0 109.9 109.7 109.4 55.7 112.4 106.3 99.6 104.1 112.9 105.0 103.8 103.8 .69 99.8 109.3 110.7 111.0 29.5 4.42 108.9 109.1 108.4 107.4 107.1 107.4 106.3 107.2 107.6 109.3 109.6 110.7 110.7 110.3 Utilities Electric...................................................... G as............................................................. For Note seep. A-63. 3.91 1.17 138.1 140.9 119.8 138.6 138.6 140.6 141.9 141.9 1........... 141.2 144.4 144.8 145.6 147.1 1........... 148.0 146.8 A 62 INDUSTRIAL PRODUCTION: N.S.A. □ SEPTEMBER 1972 MARKET GROUPINGS (1967 = 100) G rouping 1967 p ro p or tion 1971 1971 aver age* Total index .............................. ............ 100.00 106.8 July Aug. 102.8 Sept. 1972 Oct. Nov. Dec. Jan. Feb. M ar. Apr. May June July* 105.8 110.3 110.3 107.7 104.5 106.6 110.3 111.6 113.6 113.4 116.4 109.2 62.21 48.95 28.53 20.42 13.26 37.79 106.4 104.5 107.4 104.7 102.0 105.5 115.7 112.6 118.4 89.4 87.3 87.5 112.6 113.5 114.3 107.4 99.9 103.1 112.2 110.6 124.2 91.7 118.0 107.3 111.5 109.7 123.0 91.1 118.0 108.2 107.7 105.9 117.2 90.1 114.1 107.6 103.0 101.2 109.9 89.0 109.8 106.9 105.5 104.4 115.7 88.6 109.4 108.3 109.0 107.7 119.4 91.4 113.8 112.4 110.0 108.3 119.2 93.1 116.5 114.5 111.7 110.2 122.4 93.2 117.4 116.6 110.8 108.5 119.6 93.1 119.5 117.7 115.2 113.3 125.8 95.8 122.2 118.5 Automotive products......................... A u to s................................................. Auto parts and allied goods........ 7.86 2.84 1.87 .97 115.1 102.7 109.7 119.5 94.9 102.0 108.3 69.4 76.5 140.9 144.0 151.1 122.5 128.7 112.0 160.6 126.6 119.9 107.7 117.1 135.9 123.9 102.5 120.7 124.0 115.6 87.5 112.0 158.7 139.8 131.3 137.5 122.9 126.5 117.0 144.8 121.8 126.3 115.1 147.8 128.8 138.2 128.0 157.8 126.0 132.6 121.3 154.3 129.1 108.2 133.5 93.6 120.1 61 .0 159.2 156.3 Home goods........................................ Appliances, TV, and rad io s......... Appliances and A /C .................. TV and home au d io.................. Carpeting and fu rn itu re................ Misc. home goods.......................... 5.02 112.6 107.1 114.1 1.41 111.5 102.9 104.5 .92 127.6 122.9 115.0 .49 81.4 65.4 84.8 1.08 117.2 103.4 121.9 2.53 111.2 111.1 116.2 119.0 113.9 128.6 86.2 125.4 119.1 121.4 125.7 143.5 92.5 122.0 118.8 117.6 110.7 115.1 120.8 119.3 116.7 98.4 123.1 127.2 120.1 132.3 108.2 143.8 150.3 139.3 87.4 80.1 84.3 83.9 84.1 125.5 123.0 123.5 131.4 130.8 114.7 112.3 107.1 112.7 113.9 123.5 131.9 156.6 85.6 131.8 115.3 122.3 124.9 146.9 83.7 128.3 118.2 126.6 125.6 147.4 84.8 132.8 124.6 124.8 107.0 129.5 123.9 121.6 116.2 110.8 110.4 100.6 90.6 124.6 120.3 116.2 120.5 115.8 109.0 115.1 118.1 100.8 106.6 118.9 121.2 109.2 111.2 118.2 108.1 120.9 113.0 119.9 113.2 121.7 114.8 117.1 102.7 120.9 114.7 124.5 120.7 113.0 127.6 126.8 120.8 116.2 129.0 129.3 106.3 141.4 152.3 129.2 135.0 110.8 135.0 144.2 128.9 142.3 110.3 129.0 136.3 127.4 143.9 107.9 125.5 128.7 134.8 152.3 114.8 132.4 137.5 Products, to ta l......................................... Final products...................................... Consumer goods............................. Equipm ent........................................ Interm ediate p ro d u cts....................... M aterials.................................................. 109.0 106.5 117.3 9 1 .4 118.1 109.4 Consumer goods Nondurable consumer goods.................. C lothing................................................ Consumer staples................................ Consumer foods and tobacco___ 20.67 4.32 16.34 8.37 116.0 116.4 121.7 101.4 93.7 105.6 119.8 122.4 126.0 113.6 112.9 118.7 N onfood staples.............................. Consumer chemical p ro d u c ts.. C onsumer paper products........ C onsumer fuel and lighting. . . Residential utilities................ 7.98 2.64 1.91 3.43 2.25 126.3 133.9 107.9 130.8 137.6 132.4 138.0 109.6 140.8 151.6 133.7 139.6 113.9 140.2 149.6 Business equipment.................................. Industrial equipm ent.......................... Building and mining equip........... M anufacturing equipm ent........... Power equipm ent............................ 12.74 6.77 1.45 3.85 1.47 96.8 92.9 92.9 82.6 119.8 94.4 91.0 87.0 80.7 121.7 94.7 101.1 100.3 90.8 95.7 95.2 90.5 98.2 97.0 80.0 85.0 83.9 119.1 121.2 123.1 98.3 96.4 94.6 93.4 99.0 95.7 83.2 83.1 120.2 118.1 Commercial, transit, farm eq........... Commercial equipm ent................. Transit equipm ent.......................... Farm equipm ent............................. 5.97 3.30 2.00 .67 101.2 98.2 110.0 114.5 89.4 75.5 93.2 85.8 99.1 111.9 83.1 83.8 102.4 99.9 100.7 110.5 107.4 105.3 91.8 90.8 93.5 93.7 90.6 99.1 Defense and space equipment................ M ilitary products................................ 7.68 5.15 75.4 78.2 75.5 78.6 135.3 128.9 145.4 139.4 116.0 114.7 138.3 128.8 148.6 134.8 125.0 137.1 110.7 123.7 126.9 123.7 124.9 108.9 131.0 135.5 131.7 137.7 109.1 139.6 150.1 116.5 112.0 138.6 62.2 115.9 119.2 138.0 146.0 113.7 145.3 155.8 Equipment 77.1 79.9 107.3 106.1 116.7 113.2 92.9 96.0 103.7 101.2 76.1 78.9 75.7 78.7 76.4 79.0 76.6 78.8 96.6 100.7 102.2 102.3 102.2 105.5 9 9 .2 93.0 96.2 96.4 95.7 95.7 99 .0 95.8 99.5 97.9 99.0 96.3 101.4 97.3 97.1 81.4 85.6 86.2 84.8 85.5 88.2 84.6 119.3 120.6 121.4 121.2 121.8 124.9 123.6 75.3 77.8 105.8 108.7 110.1 112.6 97.3 99.5 109.9 117.2 75.9 78.4 77.9 81.0 109.8 112.2 104.8 113.2 78.0 81.1 109.6 112.9 103.0 114.7 121.9 119.8 100.9 97.5 77.9 110.0 114.4 95.1 78.1 81.3 79.6 82.7 78.5 81.9 Intermediate products Misc. intermediate products................. 5.93 7.34 112.6 112.2 111.8 116.1 117.6 112.7 109.1 107.6 113.7 112.6 114.5 116.4 119.6 118.4 115.2 110.4 110.9 113.9 116.9 118.9 120.6 122.0 116.1 116.1 116.2 118.7 122.4 119.8 M aterials D urable materials n.e.c..................... 20.91 101.7 4.75 104.2 5.41 87.1 10.75 107.9 93.1 90.4 82.6 99.6 Textile, paper, and chem. m at.......... N ondurable materials n.e.c.............. Fuel and power, industrial................... 13.99 114.1 8.58 116.6 5.41 110.3 2.89 116.3 107.7 107.3 108.3 111.6 Durable goods materials......................... Consumer durable p a rts ................... 93.5 100.8 103.3 101.2 100.1 102.2 107.5 110.2 112.4 113.8 114.7 103.9 96.7 102.7 106.6 106.3 109.0 108.8 110.5 111.6 112.9 113.3 112.5 99.9 93.7 96.5 81.1 88.0 87.8 86.5 87.1 89.1 92.1 95.9 9 9.2 90.9 98.3 106.4 109.6 106.3 102.7 105.8 114.0 117.8 120.1 123.1 123.5 112.2 114.4 116.8 110.7 118.0 114.8 117.6 117.5 118.7 121.5 122.8 108.6 111.3 109.0 118.5 97.9 105.3 114.4 119.2 106.8 119.2 115.1 120.0 107.4 119.4 118.3 124.3 108.8 119.6 119.8 126.0 110.0 119.6 121.8 123.0 123.8 128.5 129.6 130.5 111.2 112.6 113.2 121.8 120.7 120.8 116.5 120.7 109.9 114.7 Supplementary groups H om e goods and clothing..................... Containers................................................ For Note seep. A-63. 9.34 107.4 100.9 1.82 116.8 113.1 110.2 113.4 116.3 109.7 101.4 108.5 114.2 114.1 118.7 113.2 120.3 107.8 121.3 120.2 123.6 118.3 111.9 114.0 123.3 120.3 127.9 128.9 134.2 125.2 SEPTEMBER 1972 □ INDUSTRIAL PRODUCTION: N.S.A. A 63 INDUSTRY GROUPINGS (1967= 100) Grouping Manufacturing, total. . D urable ................... N ondurable............. Mining and utilities... M ining..................... U tilities................... 1967 p ro por tion 1971 averagep 88.55 52.33 36.22 11.45 6.37 5.08 105.2 99.4 113.6 118.9 107.0 133.9 1971 1972 Jan. Feb. M ar. Apr. M ay June July2* 110.5 105.5 117.8 120.7 106.4 138.7 112.7 107.5 120.2 120.4 108.8 134.9 112.7 107.6 120.0 120.0 109.9 132.6 115.7 109.4 124.7 122.7 109.5 139.4 107.1 100.2 117.1 124.7 105.9 148.4 109.4 112.6 98.9 98.0 102. 90.2 89.4 101.0 108.6 113.5 80.7 93.7 101.3 107.4 81 108.6 107.6 104.8 110.2 111.5 114.3 117.2 113.2 111.1 115.7 118.9 114.3 112.2 114.4 115.3 108.8 113.3 104.8 101.4 100.0 108.6 89.2 91.0 9 8.0 99.2 96 .7 93 .7 95. 99.1 100.2 93.1 93.5 100.4 100.6 98.1 95.6 97.8 101.7 102.2 93.6 92.0 98.6 97.1 95.0 93.7 93.9 99.4 100.2 92.6 95.2 102.5 104.4 101.5 97.7 102.1 104.3 104.5 84.4 94.8 99.0 95.4 90.3 94.0 97.5 79.0 99.0 88.0 98.0 116.6 124.8 119 110.8 119.1 123.3 123.8 70.4 71.2 73.8 74.1 72.6 75.0 71.9 70.6 69.8 110.9 111.4 114.9 114.4 111.0 109.2 108.1 111.2 112.3 84.5 84.3 84.7 85.0 84.8 83.7 84.0 87.1 84.9 102.3 103.4 99.8 107.4 103.8 131.8 76.8 112.5 87.3 101.7 102.9 100.9 105.1 101.7 128.1 76.3 116.1 87.8 104.2 9 4 .7 107.0 100.3 104.8 99.8 109.5 100.8 81.0 100.7 125.8 87.6 76.6 74.7 121.8 119.7 88.6 89.6 July Aug. Sept. Oct. Nov. Dec. 100.3 93.7 109.9 121.3 103.0 144.2 103.5 94.3 116.8 123.5 107.9 143.0 108.8 101.0 120.0 122.8 106.5 143.4 109.7 102.4 120.2 114.2 97.9 134.7 106.8 99.8 116.8 113.9 101.8 129.1 102.7 104.7 109.0 99.2 103.8 91A 110.9 112.6 116.4 118.1 121.0 121.1 107.5 104.7 105.4 131.5 141.5 140.8 Durable manufactures Primary and fabricated metals. Primary m etals....................... Iron and steel, su b to ta l... Fabricated metal pro d u cts. . 12.55 104.0 9 6 .2 90.2 16 A 6.61 100.9 88.5 4.23 96.6 9 0.4 62.1 5.94 107.5 104.8 105.5 Machinery and allied goods............... M achinery........................................ Nonelectrical machinery........... Electrical m achinery.................. Transportation equipm ent........... M otor vehicles and p a rts......... Aerospace and misc. trans. eq. Instrum ents...................................... Ordnance, private and G ovt........ 32.44 9 4.9 17.39 96.2 9.17 94.3 8.22 98.3 9.29 92.9 4.56 114.1 4.73 72.5 2.07 108.5 3.69 86.1 99.1 101.6 94.5 91.1 81.9 86.2 107.9 109.5 Lumber, clay, and glass................... Lum ber and p ro d u cts................. Clay, glass, and stone p roducts. 4 .44 111.5 111.5 116.7 117.6 118.6 113.5 107.1 105.9 112.3 115.9 118.5 120.4 124.3 118.2 1.65 113.9 113.2 118.5 120.4 122.6 116.2 109.3 111.1 119.5 121.5 122.1 121.8 126.5 120.0 2.79 110.0 110.5 115.6 115.9 116.3 111.9 105.8 102.8 108.1 112.5 116.3 119.6 123.0 117.1 Furniture and miscellaneous.. . . Furniture and fixtures........... Miscellaneous manufactures. 2 .9 0 111.7 106.2 114.6 118.1 117.3 117.5 115.2 111.3 118.4 118.8 119.1 118.1 123.1 114.3 91.1 103.5 106.4 104.8 108.6 106.9 106.2 113.7 112.7 111.6 108.7 112.1 100.9 1.38 102.1 1.52 120.5 120.0 124.8 128.8 128.7 125.6 122.7 116.0 122.8 124.4 125.9 126.6 133.2 126.6 Nondurable manufactures 90.8 104.4 105.0 107.5 101.3 92.6 100.4 105.4 106.7 109.9 103.9 110.7 95.0 97.0 114.5 113.6 113.8 111.0 101.9 106.6 110.3 114.0 115.9 115.8 118.9 103.7 89.9 100.4 102.4 106.7 98.1 87.7 98.4 105.3 105.0 109.5 98.7 108.9 75.4 91.5 88.1 83.9 83.0 88.9 90.6 90.4 93.3 87.3 92.7 78-5 Textiles, apparel, and leather. Textile mill p ro d u cts........... Apparel p roducts................. Leather and products.......... 6 .9 0 100.7 2.69 108.6 3.33 97.8 87.4 Paper and printing............... Paper and p ro d u cts........ Printing and publishing., 7.92 107.8 105.1 111.4 113.3 115.2 112.0 104.9 105.2 109.9 111.2 112.9 114.1 117.5 111.9 3.18 115.8 105.5 117.3 115.9 123.0 120.2 110. 120.7 125.9 125.3 128.1 128.5 130.2 118.3 4 .74 102.5 104.9 107.5 111.5 109.9 106.5 100.9 94.8 99.2 101.7 102.7 104.4 109.0 107.6 Chemicals, petroleum, and rubber. , Chemicals and pro d u cts............. Petroleum p ro d u cts..................... Rubber and plastics p ro d u cts.., Foods and tobacco. . , F oods....................... Tobacco products. 11.92 7.86 1.80 2.26 124. 126.4 115.7 126.0 122.3 125.2 118.9 114.9 126.8 128.7 120.9 124.7 130.9 130.1 129.1 125.9 126.0 133.3 131.0 131.3 127.7 126.6 118.9 117.8 115.2 116.5 114.4 131.9 136.7 132.3 126.9 133.0 131.1 132.0 115.0 140.8 132.5 134.1 113.5 142.2 135 138.0 141.3 134.6 138.9 140.7 144.0 138-1 112.1 118.4 121.5 123.0 144.1 144.0 147.5 131.5 9 .48 113.7 112.3 117. 122.9 121.2 116. 110.4 110.8 111.4 112.9 114.2 114.1 120.1 115.6 8.81 114.9 114.3 118.7 124.1 122.4 118.2 112.8 111.3 111. 113.7 115.3 115.3 121.4 117.8 86.2 105.7 106.5 106.1 .67 97.7 99.0 78.7 103.6 105.5 102.1 99.4 98.1 103.0 Mining Metal, stone, and earth minerals.. M etal m ining.............................. Stone and earth m inerals......... 1.26 104.6 97.2 104.1 104.1 105.8 103.9 100.5 93.1 .51 121.4 106.6 116.9 118.7 117.9 114.8 111 105.8 .75 93.2 90.9 95 .4 94.2 97.6 96.6 93.1 84.4 Coal, oil, and g a s............. C o a l................................ Oil and gas extraction. 5.11 107.6 104.5 108.8 107.1 83.7 117.9 113.9 .69 99.8 4.42 108.9 107.8 107.4 106.1 95.4 98.0 105.3 110.8 110.6 104.6 113.8 114.4 123.5 131.5 131.3 121.4 82.8 86.8 92.8 96.7 96.6 93.1 95.9 101.3 109.2 107.6 107.9 108.5 109.7 109.7 109.2 106.2 31.5 56.9 111.7 105.1 99.9 102.7 114.9 107.1 104.8 87.6 106.0 108.2 108.8 108.0 109.2 109.4 108.9 110.1 109.9 109.1 U tilities Electric. G as. 3.91 1.17 138.1 151.3 119.8 150.0 150.8 139.9 132.8 136.2 146.6 145.8 143.5 N o t e . —Published groupings include series and subtotals not shown separately. A description and historical data will be available at a later 138.5 136.4 144.9 156.2 date. Figures for individual series and subtotals are published in the monthly Business Indexes release. A 64 BUSINESS ACTIVITY; CONSTRUCTION □ SEPTEMBER 1972 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production M arket Period Products Total Fin al prodiicts Total Inter M ate mediate rials C on Equip p rod sumer Total ucts goods ment 1952....................... 1953....................... 1954....................... 51.9 51.8 50.8 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 I960....................... 1961....................... 1962....................... 1963....................... 1964....................... 66.2 66.7 72.2 76.5 81.7 66.2 66.9 72.1 76.2 81.2 M anu facturing 2 Ca N onag pacity C on ricul utiliza- stru c tural tion tion em in mfg. con ploy Em (1967 tracts ment— ploy Pay M anu output rolls factur = 100) Total i m ent ing Prices 4 In dustry T otal retail sales3 C on sumer W hole sale com m odity 53.3 47.9 55.1 52.0 51.5 92.8 95.5 84.1 74.1 76.3 74.4 93.4 98.2 89.6 54.5 60.3 55.1 52 54 54 79.5 80.1 80.5 88.6 87.4 87.6 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 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 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....................... 89.2 88.1 86.8 93.0 78.7 9 3.0 97.9 96.8 96.1 98.6 9 3.0 99.2 100.0 100.0 100.0 100.0 100.0 100.0 105.7 105.8 105.8 106.6 104.7 105.7 110.7 109.7 109.0 111.1 106.1 112.0 106.7 106.0 104.5 110.3 96.3 111.7 106.8 106.4 104.7 115.7 89.4 112.6 91.0 99.8 100.0 105.7 112.4 107.7 107.4 89.1 98.3 100.0 105.7 110.5 105.2 105.2 89.0 91.9 87.9 87.7 86.5 r7 8 .3 r75.0 93.2 94.8 100.0 113.2 123.7 132.0 92.3 97.1 100.0 103.1 106.7 107.3 107.4 93.9 99.9 100.0 101.4 103.2 98.1 94.3 88.1 97.8 100.0 108.3 116.6 114.2 116.9 91 97 100 109 114 120 122 94.5 97.2 100.0 104.2 109.8 116.3 121.2 96.6 99.8 100.0 102.5 106.5 110.4 113.9 1971—Ju ly ........... A ug........... Sept........... O ct............ N ov........... D ec............ 106.8 105.6 107.1 106.8 107.4 108.1 107.0 106.1 107.0 107.0 107.9 108.0 105.0 104.8 105.5 105.4 106.1 106.2 116.3 115.9 116.7 116.6 118.0 118.0 89.3 89.5 89.8 89.8 89.6 89.6 114.6 110.9 112.3 113.2 114.3 114.9 106.4 104.8 107.3 106.6 106.5 108.4 105.8 104.2 '7 4 .7 105.7 I 106.1 j 106.0 '7 4 .6 106.2 J 151.0 153.0 156.0 137.0 155.0 160.0 107.1 107.1 107.6 107.6 107.9 108.1 93.9 93.5 94.5 94.1 94.4 94.2 116.8 116.5 117.0 117.8 118.4 121.1 129 133 135 134 136 133 121.8 122.1 122.2 122.4 122.6 123.1 114.6 114.9 114.5 114.4 114.5 115.4 1972—Jan ............. Feb............ M ar........... A pr............ M ay.......... Ju n e.......... Ju ly ........... A ugp . 108.7 110.0 111.2 112.8 113.2 113.4 113.7 114.3 108.4 109.5 110.1 111.4 112.1 112.1 112.0 112.3 106.4 107.6 108.2 109.8 110.2 110.3 110.1 110.7 118.5 119.6 119.6 122.0 122.2 122.2 121.8 122.3 89.5 90.9 92.4 92.7 93.4 93.3 93.7 94.6 115.9 117.0 117.3 117.3 119.3 119.3 119.2 118.7 109.2 110.8 113.1 115.0 115.6 115.9 116.5 117.5 107.1 108.5 '7 5 .3 109.7 j 111.8 j 112.3 \ '7 7 .4 112.8 J 113.0 113.6 165.0 155.0 159.0 167.0 165.0 154.0 155.0 108.7 108.9 109.4 109.7 110.2 110.3 110.2 110.7 94.5 95.0 95.6 96.2 96.8 '97.1 '9 6 .6 97.1 122.2 124.9 125.8 128.7 129.4 130.7 '128.7 131.3 133 135 139 139 142 141 143 123.2 123.8 124.0 124.3 124.7 125.0 125.5 116.3 117.3 117.4 117.5 118.2 118.8 119.7 119.9 86.1 89.4 Construction contracts: F. W. D odge Co. monthly index o f dollar value o f total construction contracts, including residential, nonresidential, and heavy engineering; does not include data for Alaska and Hawaii. Employment and payrolls: Based on Bureau o f Labor Statistics d ata; includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau o f Labor Statistics data. 1 Employees only: excludes personnel in the Armed Forces. 2 Production workers only. 3 F.R . index based on Census Bureau figures. 4 Prices are not seasonally adjusted. Latest figure is final. N o t e . —All series: D ata are seasonally adjusted unless otherwise noted. Capacity utilization: Based on data from Federal Reserve, M cG raw Hill Economics D epartm ent, and D epartm ent o f Commerce. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1972 1971 Type o f ownership and type o f construction 1970 1971 July Total construction 1............................ Aug. Sept. Oct. Nov. Dec. Jan. Feb. M ar. Apr. May June 67,097 78,878 7,670 7,712 6,814 6,568 6,405 6,286 6,234 5,607 7,284 8,100 9,907 8,478 8,067 By type o f ow nership: Public............................................ Private 1....................................... 23,362 24,183 2,683 2,299 2,010 1,837 1,960 1,696 2,137 45,058 56,408 4,987 5,413 4,804 4,731 4,445 4,590 4,097 By type o f construction: Residential building 1............... Nonresidential building............ N onbuilding..................... .......... 24,910 35,226 3,357 3,255 3,196 3,170 3,001 2,997 2,667 2,664 3,617 3,971 4,428 4,375 24,180 26,577 2,621 2,120 2,246 2,064 2,128 1.959 1,728 1,799 2,187 2,182 2,908 2,447 18,489 20,509 1,691 2,337 1,371 1,332 1,274 1.959 1,840 1,144 1,480 1,947 1,762 1,655 Private housing units a u th o riz e d '.. (In thousands, S.A., A.R.) July 1,324 1,885 2,034 1,997 1,944 1,983 2,051 1,634 1,686 1,741 2,574 2,517 2,528 3,973 5,598 6,359 6,524 5,960 5,538 2,142 2,204 2,056 2,007 1,991 1,995 '2,121 2,082 N o t e . —D ollar value o f construction contracts as reported by the F. W. i Because o f improved collection procedures, data for 1-family homes D odge Co. does not include data for A laska or Hawaii. Totals o f monthly beginning Jan. 1968 are not strictly comparable with those for earlier data exceed annual totals because adjustments—negative—are made into periods. To improve comparability, earlier levels may be raised by ap accumulated monthly data after original figures have been published. proximately 3 per cent for total and private construction, in each case, and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. SEPTEMBER 1972 a CONSTRUCTION A 65 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total Buildings Resi dential Total Indus trial Com mercial O ther build ings 1 Other Total Mili tary High way Conser vation & O ther 2 develop ment 1962 3 ___ 1963 4 ___ 1964 1965 1966 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 1967 . . . . . . 1968 1969 1970 197 1 77,503 86,626 93,347 94,265 108.968 51,967 59,021 65,384 66,147 79,080 25,568 30,565 33,200 31,748 42.379 26.399 28,456 32,184 34.399 36,701 6,131 6,021 6,783 6,538 5,423 6,982 7,761 9,401 9,754 11,619 4.993 4,382 4,971 5,125 5,437 8,293 10,292 11,029 12,982 14,222 25,536 27,605 27,963 28,118 695 808 879 719 8,591 9,321 9,252 9,986 1971—July. Aug. Sept. O ct.. Nov. Dec., 109,801 111,778 110,319 114,748 115,186 117,017 80,328 81,939 81,730 82,905 84,764 85,989 42,533 43,795 45,027 46,135 46,841 47,741 37,795 38,144 36,703 36,770 37,923 38,248 5,428 4,852 4,597 4,993 4,885 4,914 12,690 13,069 11,702 11,510 12,188 12,391 5,499 5,482 5,591 5,372 5,670 5,770 14,178 14,741 14,813 14,895 15,180 15,173 29,473 29,839 28,573 31,843 30,422 31,028 1,142 900 786 881 938 918 150 609 570 540 697 454 1972—Jan.. Feb.. M ar. Apr., M ay June July. 120,763 121,728 122.968 120,634 122,443 121,365 121,376 88,580 90,812 92,586 91,686 92,622 92.821 921351 49,587 51,907 53,109 52,766 52,471 52,989 53.380 38,993 31,905 39,477 38,920 40,151 39,832 38,971 4,936 4,674 4,796 4,649 4,723 4,944 4,567 13,272 13,247 13,243 13,411 14,132 13,477 13,123 5,734 5,583 5.993 5.765 5.766 5,907 5,793 15,051 15,401 15,445 15,095 15,530 15,323 15,452 32,183 30,916 30,382 28,948 29,821 28,544 29,025 985 1,002 1,186 965 980 1,088 1,353 943 804 919 644 970 206 468 1 Includes religious, educational, hospital, institutional, and other build ings. 2 Sewer and water, formerly shown separately, now included in “ Other.” 3 Beginning July 1962, reflects inclusion o f new series affecting most private nonresidential groups. 4 Beginning 1963, reflects inclusion o f new series under “ Public” (for State and local govt, activity only). N o t e . — Census Bureau data, m onthly series at seasonally adjusted annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A .R .) Region M obile home ship ments (N.S.A.) Governm ent underwritten (N .S.A .) Private and public (N.S.A.) Period Type o f structure Total N orth N orth South Central east West 5- or 12- to 4- morefamily family family Total Private Public Total FH A VA 1963............................ 1964............................ 1,610 1,529 261 253 328 339 591 582 431 355 1,021 972 108 450 1,642 1,562 1,610 1,529 32 32 292 264 221 205 71 59 151 191 1965............................ 1966............................ 1967............................ 1968............................ 1969............................ 1970............................ 1971............................ 1,473 1,165 1,292 1,508 1,467 1,434 2,051 270 207 215 227 206 218 263 362 288 337 369 349 294 434 575 473 520 619 588 612 869 266 198 220 294 323 310 485 964 779 844 900 810 813 1,151 87 61 72 81 87 85 120 422 325 376 527 571 536 780 1,510 1,196 1,322 1,548 1,500 1,467 c2,087 1,473 1,165 1,292 1,508 1,467 1,434 c2,055 37 31 30 40 33 33 c32 246 195 232 283 288 479 c627 197 158 180 227 237 418 c533 49 37 53 56 51 61 c94 216 217 240 318 413 401 c497 1971—J u ly '............... A ug.r ............. Sept.r ............. O ct.r.............. N o v .r ............. D ec.r ............. 2,034 1,997 1,944 1,983 2,051 2,142 312 309 305 289 304 305 424 422 416 414 443 472 788 757 761 776 796 842 510 509 462 504 508 523 965 910 891 908 952 966 140 142 141 136 133 127 929 945 912 939 966 1,049 197 206 176 182 179 155 194 205 174 180 176 152 3 2 2 2 3 3 52 55 58 47 57 92 43 46 50 39 48 85 9 9 9 8 9 7 45 50 53 50 40 34 1972—J a n . '............... 2,204 F e b . '............. 2,056 M ar.r ............. 2,007 A p r.r ............. 1,991 M ay r ............. 1,955 Ju n e r ............. 2,121 July................. 2,0S2 376 303 257 282 265 271 280 405 377 364 430 422 419 413 841 767 842 820 752 870 874 582 609 544 459 516 561 515 1,098 959 954 963 923 989 997 143 122 134 152 149 146 141 963 975 919 876 883 986 944 151 154 206 213 226 223 204 149 152 204 212 224 220 203 2 1 2 2 2 3 1 45 36 49 38 43 43 38 37 28 38 29 34 33 29 8 8 11 9 9 10 9 33 40 49 53 52 55 N o t e . —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 5;89 units under FHA, based on field office reports of first compliance inspec tions. D ata may not add to totals because o f rounding. Mobile home shipments are as reported by M obile Homes M anufac turers Assn. A 66 EMPLOYMENT □ SEPTEMBER 1972 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total noninstitutional population (N.S.A.) Period N ot in labor force (N.S.A.) Total labor force (S.A.) U nem ployed Unemploy ment ra te 2 (per cent; S.A.) Em ployed1 Total Total In nonagri cultural industries In agriculture 196 6 ..... 131,180 1967 3............................... 133,319 196 8 ..... 135,562 196 9 ..... 137,841 197 0 ..... 140,182 197 1 .....142,596 52,288 52,527 53,291 53,602 54,280 55,666 78,893 80,793 82,272 84.240 85,903 86,929 75,770 77-, 347 78,737 80,734 82,715 84,113 72,895 74,372 75,920 77,902 78,627 79,120 68,915 70,527 72,103 74,296 75,165 75,732 3,979 3,844 3,817 3,606 3,462 3,387 2,875 2,975 2,817 2,832 4,088 4,993 3.8 3 .8 3.6 3.5 4 .9 5 .9 1971 _ A u g ...................... 142,886 Sept...................... 143,104 O ct....................... 143,321 N ov...................... 143,517 D ec.................. .... 143,723 54,433 56,220 55,968 55,802 56,181 87,088 87.240 87,467 87,812 87,883 84.313 84,491 84,750 85,116 85,225 79,199 79,451 79,832 80,020 80,098 75,792 76,088 76,416 76,601 76,698 3,407 3,363 3,416 3,419 3,400 5,114 5,040 4,918 5,096 5,127 6.1 6 .0 5.8 6 .0 6 .0 1972—Jan................... ..... 144,697 Feb........................ 144,895 M ar................. ..... 145,077 A pr.................. .....145,227 M ay......................145,427 June......................145,639 Ju ly ................. .....145,854 Aug.......................146,069 57,550 57,577 57,163 57.440 57.441 55,191 54,850 55,311 88,301 88,075 88,817 88,747 88,905 88,788 88,855 89,256 85,707 85,535 86.313 86,284 86,486 86,395 86,467 86,860 80,636 80,623 81,241 81,205 81,394 81,667 81,682 81,973 77,243 77,266 77,759 77,881 78,041 78,330 78,237 78,348 3,393 3,357 3,482 3,324 3,353 3,337 3,445 3,625 5.071 4,912 5.072 5,079 5,092 4,728 4,785 4,887 5.9 5.7 5.9 5.9 5 .9 5.5 5 .5 5.6 1 Includes self-employed, unpaid family, and domestic service workers. 2 Per cent o f civilian labor force. 3 Beginning 1967, data not strictly comparable with previous data. Description o f changes available from Bureau o f L abor Statistics. N o t e . — Bureau o f Labor Statistics. Inform ation relating to persons 16 years o f age and over is obtained on a sample basis. M onthly data relate to the calendar week that contains the 12th day; annual data are averages o f monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands o f persons) Contract construc tion Period Total M anufac turing 1966............................................................... 1967............................................................... 63,955 65,857 67,915 70,284 70,616 70,699 19,214 19,447 19,781 20,167 19,369 18,610 627 613 606 619 622 601 3,275 3,208 3,285 3,435 3,345 3,259 1971—Aug................................................... Sept................................................... Oct.................................................... Nov................................................... Dec.................................................... 70,529 70,853 70,848 71,042 71,185 18,457 18,616 18,560 18,603 18,566 609 616 521 525 607 1972—Jan ..................................................... Feb.................................................... M ar................................................... A pr.................................................... M ay.................................................. 71,584 71,729 72,030 72,263 72,558 72,630 72,592 72,871 18,609 18,690 18,777 18,870 18,973 18,999 18,915 18,999 70,542 71,184 71,379 71,638 72,034 70,643 70,776 71,374 71,928 72,533 73,345 72,407 72,831 1969............................................................... Transporta tion & pub lic utilities Trade Finance Service G overn ment 4,151 4,261 4,310 4,429 4,504 4,481 13,245 13,606 14,084 14,639 14,922 15,174 3,100 3,225 3,382 3,564 3,690 3,800 9,551 10,099 10,623 11,229 11,630 11,917 10,792 11,398 11,845 12,202 12,535 12,858 3,219 3,250 3,290 3,320 3,245 4,428 4,460 4,442 4,434 4,465 15,223 15,273 15,270 15,278 15,315 3,804 3,821 3,834 3,851 3,860 11,946 11,962 11,996 12,044 12,089 12,843 12,855 12,935 12,987 13,038 616 612 613 603 602 598 597 595 3,320 3,236 3,272 3,233 3,256 3,247 3,177 3,227 4,502 4,479 4,536 4,522 4,539 4,539 4,520 4,524 15,447 15,495 15,518 15,647 15,671 15,712 15,716 15,775 3,872 3,879 3,890 3,897 3,921 3,938 3,930 3,940 12,120 12,177 12,217 12,254 12,303 12,379 12,404 12,442 13,098 13,161 13,207 13,237 13,293 13,218 13,333 13,369 18,651 18,840 18,709 18,693 18,595 625 623 522 524 605 3,509 3,471 3,478 3,410 3,177 4,486 4,509 4,455 4,447 4,469 15,151 15,242 15,327 15,537 16,089 3,865 3,829 3,826 3,836 3,841 11,994 11,986 12,020 12,032 12,029 12,261 12,684 13,042 13,159 13,229 18,440 18,537 18,653 18,713 18,824 19,142 18,749 19,174 602 596 599 597 602 612 613 610 2,965 2,880 2,974 3,117 3,246 3,406 3,425 3,517 4,430 4,407 4,482 4,486 4,521 4,589 4,579 4,583 15,266 15,147 15,274 15,460 15,592 15,771 15,690 15,701 3,833 3,844 3,867 3,885 3,913 3,969 3,993 4,003 11,926 12,031 12,131 12,279 12,401 12,540 12,528 12,492 13,181 13,334 13,394 13,391 13,434 13,316 12,830 12,751 M ining SEASONALLY adjusted July*................................................ not seasonally adjusted 1971—Aug................................................... O ct.................................................... 1972—Jan ..................................................... Feb.................................................... N ote.—Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay pe riod that includes the 12th of the month. Proprietors, self-employed persons, domestic servants, unpaid family workers, and members of the Armed Forces are excluded. Beginning with 1969, series has been adjusted to Mar. 1970 bench mark. SEPTEMBER 1972 □ EMPLOYMENT AND EARNINGS A 67 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands o f persons) Seasonally adjusted1 Industry group 1971 N ot seasonally adjusted1 1972 1971 1972 Aug. June July* Aug.* Aug. June July* Aug.* 13,371 13,886 13,818 13,892 13,524 14,006 13,616 14,024 7,534 94 503 375 497 901 7,899 95 524 406 523 971 7,886 96 528 410 522 966 7,929 99 531 411 522 976 7,514 93 521 378 513 905 7,988 94 544 406 536 994 7,727 96 544 401 534 977 7,888 98 550 414 538 980 1,016 1,159 1,167 1,248 256 318 1,054 1,215 1,247 1,257 273 334 1,052 1,214 1,238 1,257 273 330 1,055 1,232 1,233 1,265 278 327 1,013 1,147 1,176 1,189 257 329 1,065 1,227 1,243 1,269 273 336 1,034 1,210 1,220 1,120 271 322 1,052 1,218 1,237 1,184 279 338 Apparel and related p ro d u cts................................... Paper and allied products.......................................... 5,837 1,179 56 841 1,180 520 5,987 1,193 61 874 1,187 541 5,932 1,183 60 871 1,168 540 5,963 1,169 57 879 1,187 545 6,010 1,302 64 846 1,195 527 6,018 1,185 53 886 1,201 549 5,889 1,208 53 861 1,125 541 6,136 1,292 65 885 1,195 552 Printing, publishing, and allied industries............. Chemicals and allied products.................................. Petroleum refining and related industries............... Rubber and misc. plastic products............................ Leather and leather products.................................... 658 577 115 447 264 667 584 116 492 272 662 579 115 488 266 666 582 115 493 276 656 582 120 450 268 667 588 120 493 276 659 581 120 481 263 664 587 120 496 280 Durable goods........................................................................ Ordnance and accessories.......................................... Lum ber and wood products...................................... Stone, clay, and glass p ro d u cts................................ Fabricated metal pro d u cts........................................ Electrical equipment and supplies........................... T ransportation equipm ent........................................ Instrum ents and related p ro d u c ts........................... Food and kindred p ro d u cts...................................... Tobacco m anufactures............................................... 1 D ata adjusted to 1970 benchmark. N o t e . —Bureau o f 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 o f the month. HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES Average weekly earnings1 (dollars per week; N.S.A.) Average hours w orked1 (per week; S.A.) Industry group 1972 1971 Aug. June July* 1972 1971 Aug.* Aug. June Average hourly earnings1 (dollars per h o u r; N.S.A.) 1972 1971 July* Aug.* Aug. June July* Aug.* T o tal.........................................*............................... 39.8 40.6 40.6 40.7 141.69 154.63 153.12 154.25 3.56 3.79 3.79 3.79 Durable goods........................................................... O rdnance and accessories............................. Lum ber and wood p ro d u c ts........................ Furniture and fixtures............................... Stone, clay, and glass products................... Primary metal industries.............................. 40.0 41.9 40.2 39.9 41.8 38.8 41.4 42 .0 41.3 40.9 42.0 41.5 41.2 42.5 41.1 40.4 41.9 4 1.2 41.2 151.60 168.06 42.9 161.80 172.60 41.5 129.20 138.78 40.5 118.78 125.36 42.1 157.78 165.39 41.9 166.45 193.53 164.42 166.86 171.79 173.79 136.12 139.61 121.60 126.28 165.45 168.27 192.05 197.35 3.79 3.88 3.19 2.94 3.73 4.29 4.04 4.09 3.32 3.05 3.91 4.63 4.02 4.10 3.32 3.04 3.93 4.65 4.05 4.07 3.34 3.08 3.95 4.71 Fabricated metal products............................ M achinery........................................................ Electrical equipment and supplies.............. Transportation equipm ent............................ Instruments and related products............... Miscellaneous m anufacturing industries... 40.2 40.8 4 0.0 39.9 39.8 39.2 41.2 42.1 40.5 42.0 40.6 39.5 4 1.2 4 2.0 40.3 41.5 40.5 39.2 41.2 151.13 42.3 162.01 40.6 140.00 41.2 171.74 40.9 140.58 39.0 115.64 162.38 164.37 175.96 178.07 146.07 150.22 192.92 192.04 149.54 151.81 119.27 121.29 3.75 4.02 3.50 4.37 3.55 2.95 3.98 4.26 3.67 4.73 3.72 3.09 3.98 4.24 3.67 4.66 3.72 3.09 3.98 4.26 3.70 4.73 3.73 3.11 Nondurable goods................................................... Food and kindred products......................... Tobacco m anufactures.................................. Textile-mill products...................................... Apparel and related p ro d u cts..................... Paper and allied p ro d u cts............................ 39.3 40.1 37.1 40.7 35.7 42.4 39.8 40.6 34.3 41.5 35.9 43.0 39.7 40.5 34.6 41.1 35.9 42.9 39.7 129.17 137.66 138.50 40.1 135.94 145.71 146.42 35.6 119.31 122.50 122.11 41.2 104.86 113.42 110.84 35.9 90.00 93.60 92.62 43.0 158.53 168.99 170.74 138.05 143.26 119.57 112.75 94.48 171.54 3.27 3.34 3.19 2.57 2.50 3.73 3.45 3.58 3.52 2.72 2.60 3.93 3.48 3.58 3.56 2.71 2.58 3.98 3.46 3.52 3.34 2.73 2.61 3.98 Printing, publishing, and allied industries. Chemicals and allied products..................... Petroleum refining and related industries . R ubber and misc. plastic products............. Leather and leather products....................... 37.5 41.5 43.4 40.1 37.6 37.9 42.0 42.1 41.5 38.6 38.0 41.9 41.8 41.0 38.4 38.1 41.8 42.5 41.2 39.2 170.62 171.97 176.40 175.14 209.73 208.08 148.10 150.28 104.25 106.23 4.23 3.99 4.59 3.45 2.59 4.46 4.20 4.95 3.58 2.70 4.49 4.22 4.97 3.63 2.68 4.49 4.21 4.99 3.63 2.71 1Data adjusted to 1970 benchmark. 159.47 164.79 195.53 139.04 97.38 165.17 179.35 149.37 199.13 151.40 122.36 169.03 176.40 209.88 148.57 105.84 N o t e . —Bureau of Labor Statistics; data are for production and related workers only. A 68 PRICES □ SEPTEMBER 1972 CONSUMER PRICES (1967 = 100) Housing All items Period Food Total Rent H om e owner ship H ealth and recreation Fuel oil and coal Gas and elec tricity 40.5 48.0 81.4 79.6 1929............................ 1933............................ 1941............................ 1945............................ 51.3 38.8 44.1 53.9 48 .3 30.6 38.4 50.7 53.7 59.1 7 6 .0 54.1 57 .2 58.8 1960............................ 1961............................ 1962............................ 1963............................ 1964............................ 88.7 89.6 90.6 91.7 92.9 8 8.0 89.1 89.9 9 1.2 9 2 .4 90.2 90.9 91.7 92.7 93 .8 91.7 92.9 9 4 .0 9 5 .0 9 5.9 86.3 86.9 87.9 89 .0 9 0.8 89.2 91.0 91.5 93.2 92.7 98.6 99.4 99.4 99.4 99.4 1965............................ 1966............................ 1967............................ 1968............................ 1969............................ 1970............................ 1971............................ 94.5 97.2 100.0 104.2 109.8 116.3 121.3 94 .4 99.1 100.0 103.6 108.9 114.9 118.4 94.9 97.2 100.0 104.2 110.8 118.9 124.3 96.9 98.2 100.0 102.4 105.7 110.1 115.2 92.7 96.3 100.0 105.7 116.0 128.5 133.7 94.6 97.0 100.0 103.1 105.6 110.1 117.5 1971—July................. 121.8 Aug................. fl 22.1 Sept................ tl2 2 .2 O ct.................. fl2 2 .4 N ov................ 122.6 D ec................. 123.1 119.8 120.0 119.1 118.9 119.0 120.3 124.5 125.1 125.5 125.9 126.4 126.8 115.4 115.8 116.1 116.4 116.6 116.9 133.5 134.4 135.1 135.7 136.7 137.0 123.2 123.8 124.0 124.3 124.7 125.0 125.5 120.3 122.2 122.4 122.4 122.3 123.0 124.2 127.3 127.6 127.9 128.2 128.5 129.0 129.5 117.1 117.5 117.7 118.1 118.3 118.8 119.0 137.8 138.0 138.2 138.5 138.9 139.6 140.7 1972—Jan.................. F eb................. M ar................ A pr................. M a y ............... J u n e ............... July................. F u r Apparel Trans nish and porta ings upkeep tion and opera tion Total M ed ical care Per sonal care R ead ing and recrea tion O ther goods and serv ices 37.0 42.1 41.2 55.1 47.7 6 2 .4 4 9 .2 56 .9 48.5 36.9 44.8 61.5 44.2 47.8 93.8 93.7 93.8 94.6 95 .0 89.6 90 .4 90.9 91.9 92.7 89.6 90.6 92.5 93.0 94.3 85.1 86.7 88.4 9 0 .0 91.8 79.1 81.4 83.5 85.6 87.3 90.1 90.6 92.2 93 .4 94.5 87.3 89.3 91.3 9 2.8 9 5 .0 87.8 88.5 89.1 90 .6 9 2 .0 99 .4 99.6 100.0 100.9 102.8 107.3 114.7 95.3 97 .0 100.0 104.4 109.0 113.4 118.1 93.7 96.1 100.0 105.4 111.5 116.1 119.8 9 5.9 97.2 100.0 103.2 107.2 112.7 118.6 9 3 .4 96.1 100.0 105.0 110.3 116.2 122.2 89.5 9 3.4 100.0 106.1 113.4 120.6 128.4 9 5 .2 97.1 100.0 104.2 109.3 113.2 116.8 95.9 97.5 100.0 104.7 108.7 113.4 119.3 94 .2 9 7 .2 100.0 104.6 109.1 116.0 120.9 117.5 117.8 117.8 117.8 118.1 118.1 114.7 115.7 115.7 115.7 116.2 118.2 118.9 119.1 119.4 119.5 119.5 119.6 119.3 119.5 119.0 1119.3 120.6 t 118.6 121.6 fl 19.3 121.9 118.8 121.8 118.6 122.6 123.1 123.6 123.5 123.7 123.9 129.3 130.0 130.4 129.6 129.7 130.1 117.1 117.5 117.6 117.9 117.9 117.9 119.6 119.7 120.5 120.5 120.8 121.1 121.2 121.8 122.4 122.6 122.8 123.0 118.7 118.7 118.7 118.6 118.7 117.8 117.7 119.0 119.4 119.7 120.2 120.5 120.3 120.3 119.5 119.6 120.1 120.5 120.8 121.0 121.1 120.2 119.0 120.7 118.3 121.3 118.4 121.8 118.6 122.5 119.5 122.1 '119.8 121.1 120.3 124.3 124.7 125.0 125.5 125.8 126.1 126.3 130.5 131.0 131.4 131.7 132.0 132.4 132.7 118.1 118.4 118.7 119.1 119.7 120.0 120.0 121.4 121.5 121.7 122.3 122.5 122.9 123.0 123.5 124.3 124.6 125.1 125.4 125.6 125.8 t Reflects effect o f refund o f Federal excise tax on new cars. N o t e . — Bureau o f Labor Statistics index for city wage-eamers and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100) Industrial commodities Period Pro All cessed com Farm rod foods m odi pucts and ties feeds Total Tex tiles, etc. R ub Hides, Fuel, Chem icals, ber, etc. etc. etc. etc. M a Lum Paper, M et chin urni ery Fture, ber, als, etc. and etc. etc. equip etc. ment N on Trans m e porta M is tallic tion cella min equip neous erals m e n t1 95.3 9 1.0 91.6 93.5 95 .4 1960................................ 1961................................ 1962................................ 1963................................ 1964................................ 94.9 94.5 94.8 94.5 94.7 97.2 96.3 98.0 96.0 94.6 89.5 9 1 .0 91.9 92.5 92.3 95.3 94.8 94.8 94.7 95.2 99.5 97.7 98.6 98.5 99.2 90.8 91.7 92.7 9 0 .0 90.3 1965................................ 1966................................ 1967................................ 1968................................ 1969................................ 1970................................ 1971................................ 96.6 99.8 100.0 102.5 106.5 110.4 113.9 98.7 105.9 100.0 102.5 109.1 111.0 112.9 95.5 101.2 100.0 102.2 107.3 112.0 114.3 9 6.4 98.5 100.0 102.5 106.0 110.0 114.0 99.8 100.1 100.0 103.7 106.0 107.2 108.6 94.3 103.4 100.0 103.2 108.9 110.1 114.0 1971— Aug..................... Sept.................... O ct..................... N ov.................... D ec..................... 114.9 114.5 114.4 114.5 115.4 113.2 110.5 111.3 112.2 115.8 115.4 114.6 114.1 114.4 115.9 115.1 115.0 115.0 114.9 115.3 109.7 114.4 114.8 104.3 109.7 114.7 115.3 104.3 109.6 114.7 114.8 104.2 109.8 115.1 114.7 103.8 110.6 116.2 115.0 103.4 1972—Ja n ...................... Feb..................... M ar.................... A pr..................... M ay ................... Ju n e ................... July..................... Aug..................... 116.3 117.8 117.3 120.7 117.4 119.7 117.5 119.1 118.2 122.2 118.8 124.0 119.7 128.0 119.9 128.2 117.2 118.8 118.6 117.7 118.6 119.6 121.5 121.0 115.9 116.5 116.9 117.3 117.6 117.9 118.1 118.5 111.3 112.0 112.1 112.6 113.3 113.6 114.0 114.1 1For transportationequipment, Dec. 1968=100. 117.8 119.1 123.0 127.2 129.5 130.9 131.6 134.6 96.1 101.8 97.2 100.7 96.7 99.1 96.3 97.9 93.7 98.3 92 .4 91.9 9 1.2 91.3 93.8 92.0 91.9 92.0 92.2 92.8 99.0 98.4 97.7 9 7 .0 97.4 97.2 97 .6 97.6 97.1 97.3 93 .0 93.3 93.7 94.5 95 .2 95.5 99.0 95.9 95.9 96.2 96 .4 9 7.8 9 9 .4 97.8 100.2 98.8 98.8 100.0 100.0 100.0 100.0 100.0 100.0 98.9 99.8 103.4 113.3 101.1 102.6 100.9 99.9 105.3 125.3 104.0 108.5 105.9 102.2 108.6 113.7 108.2 116.7 114.2 104.2 109.2 127.0 110.1 119.0 93.9 96.8 100.0 103.2 106.5 111.4 115.5 96.9 98 .0 100.0 102.8 104.9 107.5 109.9 97.5 98.4 100.0 103.7 107.7 113.3 122.4 95.9 97.7 100.0 102.2 100.8 105.2 104.5 109.9 110.3 112.8 116.0 116.1 116.5 116.9 117.5 118.2 118.6 119.7 103.4 103.5 103.4 104.1 104.4 104.3 104.2 104.4 103.1 99.2 96.3 96.8 95.5 98.1 95 .2 96.3 95.6 95.4 109.8 109.7 109.5 109.5 109.4 134.6 134.3 131.8 131.3 132.7 110.6 110.6 110.6 110.6 110.7 121.1 121.1 121.0 120.9 120.8 116.1 116.0 116.0 115.9 116.2 110.2 110.2 110.2 110.2 110.2 124.2 124.2 124.1 124.0 124.2 110.5 109.6 110.7 110.8 112.9 113.0 113.0 113.0 113.1 113.2 109.5 109.2 108.9 108.7 108.8 108.9 109.2 109.5 134.9 137.7 139.5 141.1 142.7 144.2 146.1 148.1 110.8 111.6 112.3 112.8 113.2 113.5 113.7 114.1 121.4 122.6 123.4 123.5 123.6 123.6 123.5 123.7 116.5 117.1 117.3 117.6 117.9 118.1 118.3 118.3 110.2 110.8 110.9 111.0 111.1 111.2 111.4 111.7 124.3 124.6 124.8 125.6 125.9 125.8 126.2 126.7 113.4 113.6 113.8 113.7 113.8 114.2 114.1 114.2 113.7 114.0 114.2 114.1 114.1 114.2 114.9 115.1 SEPTEMBER 1972 □ PRICES A 69 WHOLESALE PRICES: DETAIL (1967= 100) G roup 1972 1971 Group Aug. June July Aug. 115.9 92.8 121.3 100.8 93.4 119.3 110.1 114.3 113.9 121.7 94.5 146.4 102.9 127.3 121.7 91.9 116.9 119.9 129.9 96.3 152.4 118.4 125.4 116.8 121.8 138.9 99.8 148.1 106.8 120.6 122.0 99.3 115.9 134.6 111.4 117.7 115.4 116.2 120.5 116.1 144.0 147.5 140.7 124.6 113.8 104.7 113.3 131.4 115.3 119.5 121.3 117.8 125.8 112.0 119.1 121.5 114-4 107.7 113.6 135.8 117.7 119.6 122.2 117.9 124.1 106.9 115.8 121.4 114.4 110.9 115.3 132.3 118.6 120.2 121.3 118.9 124.0 104.1 107.5 121.5 113.9 111.7 112.5 92.7 103.1 113.6 104.8 117.2 122.6 99.2 108.6 114.4 109.5 125.8 123.0 100.0 108.9 115.1 109.5 122.6 122.8 101.1 108.7 115.1 109.9 121.4 122.0 102.2 Processed foods and feeds: Cereal and bakery p roducts............... M eat, poultry, and fish........................ Dairy p ro d u cts....................................... Processed fruits and vegetables.......... Sugar and confectionery...................... Beverages and beverage m aterials. . . Animal fats and oils.............................. Crude vegetable oils.............................. Refined vegetable oils........................... Vegetable oil end p ro d u cts................. Miscellaneous processed foods........... M anufactured animal feeds................. 114.6 114.4 117.1 108.2 204.1 138.6 125.8 116.7 212.5 138.1 126.5 116.5 243.0 140.6 126.5 118.7 182.9 150.5 107.2 115.3 113.2 107.3 191.2 155.3 112.9 121.5 113.2 108.5 191.2 155.3 113.2 122.1 113.2 109.1 191.5 155.3 114.3 122.1 114.7 110.7 102.4 115.9 99.8 102.7 134.2 9 1 .0 89.0 112.4 101.4 118.3 103.9 103.1 115.9 92.3 87.9 113.8 101.5 118.3 104.2 103.2 113.2 91.9 87.9 113.3 101.3 118.3 105.2 103.3 121.4 92.0 88.2 113.5 113.7 99.6 111.4 119.3 113.3 98.6 108.7 120.8 113.8 98.8 109.5 121.3 114.3 98.7 109.7 122.1 94.1 93.5 93.3 93.3 100.1 98.1 98.2 98.3 8.6 97.9 98.3 97.9 146.7 123.8 120.5 118.9 159.0 128.4 131.7 123.4 161.6 129.6 132.9 125.6 164.1 130.0 135.9 126.8 Fuels and related products, and power: C o a l.......................................................... C oke......................................................... Gas fuels................................................... Electric p o w er........................................ Crude petroleum .................................... Petroleum products, refined............... Rubber and plastic products: R ubber and rubber p ro d u cts.............. C rude rubber...................................... Tires and tu b es.................................. Miscellaneous rubber products___ Plastic construction products (Dec. 1969 = 100).......................................... U nsupported plastic film and sheeting (Dec. 1970= 100).............................. Lam inated sheets, high pressure (Dec. 1 9 7 0= 100)............................... Lumber and wood products: Lum ber.................................................... M illw ork................................................. Plywood................................................... Other wood products............................ Note.—Bureau of Labor Statistics indexes. July Aug. Pulp, paper and products, excluding building paper and b oard............ W oodpulp............................................ W astepaper.......................................... P ap er..................................................... Paperboard.......................................... Converted paper and p ap erb o ard .. Building paper and b o a rd ................ 110.8 112.4 112.8 114.7 102.8 110.1 104.3 113.8 111.5 137.7 116.2 106.0 113.5 106.6 114.0 111.5 137.7 116.7 106.0 113.7 106.8 114.4 111.5 138.9 116.7 106.0 114.3 107.2 Iron and steel....................................... Steelmill products................................ Nonferrous m etals............................... M etal containers.................................. H ardw are............................................... Plumbing equipm ent............................ H eating equipm ent.............................. Fabricated structural metal products Miscellaneous metal p roducts. . . . 125.3 128.1 117.1 124.2 117.7 118.3 116.8 119.6 119.8 128.1 130.4 117.6 128.8 120.4 119.7 118.6 122.2 124.4 128.3 130.3 116.8 129.9 120.5 119.7 119.0 122.2 124.2 128.6 130.2 116.8 130.9 120.7 120.2 119.2 122.5 124.7 Agricultural machinery and equip... Construction machinery and eq u ip .. M etalworking machinery and equip General purpose machinery and equipm ent........................................ . Special industry machinery and equipm ent.......................................... Electrical machinery and equip......... Miscellaneous m achinery................... 117.5 121.9 118.1 122.7 125.9 120.2 122.7 125.9 120.5 122.8 126.1 120.8 120.3 122.7 122.9 123.0 121.6 109.9 118.0 123.7 110.6 120.7 123.9 110.7 120.8 124.0 110.6 120.8 115.5 118.2 97.6 107.4 94.0 122.1 117.2 119.5 98.6 107.1 92.6 125.4 117.4 119.8 98.8 107.3 92.4 126.4 117.8 119.8 98.8 107.7 92.4 126.8 124.3 124.0 122.8 121.1 126.8 125.3 121.8 126.9 126.0 122.8 128.1 126.1 114.9 126.9 131.2 114.3 131.5 125.7 117.4 127.1 131.2 113.9 136.2 127.4 117.5 127.1 131.2 115.7 136.4 127.1 117.5 129.6 131.2 116.1 136.4 127.1 114.9 122.5 118.5 129.6 118.4 130.2 118.5 130.2 112.6 116.8 111.7 106.3 112.9 114.4 117.5 111.7 106.2 115.2 114.5 117.5 111.7 106.3 117.4 114.5 117.5 111.7 107.0 117.6 Furniture and household durables: Household furniture.......................... Commercial furniture........................ Floor coverings.................................. H ousehold appliances....................... H om e electronic equipm ent............. Other household durable g o o d s. . . Nonmetallic mineral products: Chemicals and allied products: Industrial chem icals.............................. Prepared p a in t........................................ Paint m aterials....................................... Drugs and pharm aceuticals................. Fats and oils, inedible.......................... Agricultural chemicals and p ro d u c ts.. Plastic resins and m aterials................. Other chemicals and p ro d u cts............ June Machinery and equipment: Hides, skins, leather, and products: Hides and skins...................................... Leather..................................................... F ootw ear......................*......................... O ther leather products......................... Aug. M etals and metal products: Textile products and apparel: C otton p ro d u cts.................................... Wool products....................................... M anmade fiber textile products A pparel.................................................... Textile housefum ishings...................... Miscellaneous textile p ro d u cts........... 1972 Pulp, paper, and allied products: Farm products: Fresh and dried produce..................... G rains....................................................... Livestock................................................. Live poultry............................................ Plant and animal fibers........................ Fluid m ilk ............................................... Eggs.......................................................... Hay and seeds........................................ O ther farm products............................. 1971 Flat glass.............................................. Concrete ingredients......................... Concrete products.............................. Structural clay products excluding refractories...................................... R efractories......................................... A sphalt roofing.................................. Gypsum p roducts.............................. Glass containers................................. O ther nonmetallic m inerals............. Transportation equipment: M otor vehicles and equipm ent. R ailroad equipm ent..................... Miscellaneous products: Toys, sporting goods, small arms, am m unition....................................... Tobacco products................................ N otions................................................... Photographic equipment and supplies Other miscellaneous products........... A 70 NATIONAL PRODUCT AND INCOME a SEPTEMBER 1972 GROSS NATIONAL PRODUCT (In billions o f dollars) Item 1929 1933 1941 1950 1967 1968 1969 1970 1971 1971 II 103.1 101.4 77.2 9 .2 37.7 30.3 Gross private domestic investment..................... Fixed investment............................................... 16.2 1 .4 14.5 3 .0 10.6 2 .4 5 .0 .9 5 .6 1.5 4 .0 .6 3.8 .5 1.7 - 1 . 6 1.8 - 1 . 4 45.8 3 .5 22.3 20.1 80.6 191.0 492.1 536.2 579.5 616.8 664.9 9 .6 30.5 73.1 84.0 90.8 90.5 103.5 42.9 98.1 215.0 230.8 245.9 264.4 278.1 28.1 62.4 204.0 221.3 242.7 261.8 283.3 IV I II 660.4 101.9 277.2 281.3 670.7 106.1 278.5 286.1 680.5 106.1 283.4 290.9 696.1 111.0 288.3 296.7 713.4 113.9 297.2 302.4 54.1 116.6 126.0 139.0 137.1 152.0 153.0 152.2 47.3 108.4 118.9 131.1 132.2 148.3 146.4 150.9 27.9 83.3 88.8 98.5 100.9 105.8 105.0 106.3 9 .2 28.0 30.3 34.2 36.0 38.4 38.3 38.7 18.7 55.3 58.5 64.3 64.9 67.4 66.7 67.6 19.4 25.1 30.1 32.6 31.2 42.6 41.4 44.5 18.6 24.5 29.5 32.0 30.7 42.0 40.9 43.9 6 .8 8 .2 7.8 4.9 7.1 3.6 6.6 1.3 6 .0 7 .5 7.7 4.8 2.4 6.9 -.2 5.1 158.8 157.2 109.8 38.8 71.0 47.3 46.7 1.7 .8 168.1 167.7 116.1 41.3 74.8 51.6 51.0 .4 .1 177.0 172.0 119.2 42.0 77.2 52.8 52.1 5 .0 4.3 1.8 13.8 12.0 .4 68.5 68.2 -2 .1 63.0 65.1 - 4 .6 70.7 75.3 -5 .2 70.0 75.2 37.9 180.1 199.6 210.0 219.0 232.8 229.5 233.6 18.4 90.7 98.8 98.8 96.5 97.8 96 .3 97 .9 14.1 12. A 78.3 78.4 75.1 71.4 71.2 70.1 4 .3 18.4 20.5 20.4 21.5 26.3 25.0 27.8 19.5 89.4 100.8 111.2 122.5 135.0 133.3 135.7 240.9 100.7 71.9 28.7 140.2 249.4 105.7 76.7 28.9 143.7 254.1 108.1 78.6 29.6 146.0 203.6 141.5 263.7 355.3 j 675.2 706.6 725.6 722.1 741.7 737.9 742.5 754.5 766.5 783.9 17.9 13.4 9.5 2.9 6 .6 3.9 3.7 4 .5 4 .0 Net exports of goods and services..................... E xports............................................................... Im ports............................................................... 1.1 7 .0 5.9 .4 2 .4 2 .0 1 .3 5.9 4 .6 Government purchases of goods and services.. Federal............................................................ N ational defense...................................... O ther............................................................... 8 .5 1 .3 8 .0 2 .0 7 .2 6 .0 24.8 16.9 13.8 3.1 7 .9 Gross national product in constant (1958) dollars................................................................. III 55.6 124.5 284.8 793.9 864.2 930.3 976.4 1050.4 1043.01056.9 1,078.1 1,109.1 1,139.4 57.2 120.1 278.0 785.7 857.1 922.5 971.5 1046.7 1036.4 1055.6 1,076.4 1,108.6 1,134.4 Personal consumption expenditures................... Structures................................................... Producers’ durable equipment.............. Residential structures.................................. N onfarm .................................................... Change in business inventories................. 1972 N o t e . —Dept, o f Commerce estimates., Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation o f series, 5 .2 4 6.2 41 .0 2.5 50.6 48.1 1.9 55.5 53.6 3 .6 62.9 59.3 .7 66.1 65.4 .1 66.7 66.6 see the Survey o f Current Business, July 1968, July 1969, July 1970, July 1971, July 1972, and Supplement, Aug. 1966. NATIONAL INCOME (In billions o f dollars) 1929 1933 1941 1950 1967 1968 1969 1972 1971 1970 1971 Item II III IV I IIP National income..................................................... 86.8 4 0.3 104.2 241.1 653.6 711.1 766.0 798.6 855.7 851.4 860.8 876.2 903.1 923.6 Compensation of employees................................ 51.1 29.5 64.8 154.6 467.2 514.6 566.0 603.8 644.1 639.6 648.0 660.4 682.7 697.8 Wages and salaries........................................... Private............................................................. 50.4 45.5 .3 4 .6 29.0 23.9 .3 4 .9 62.1 146.8 423.1 464.9 509.7 541.9 573.5 569.6 576.5 587.3 606.6 620.0 51.9 124.4 337.3 369.2 405.6 426.8 449.7 447.0 451.6 460.9 475.8 487.1 1.9 5 .0 16.2 17.9 19.0 19.6 18.8 19.4 20.8 19.4 19.4 20.5 8.3 17.4 69.5 77.8 85.1 95.5 104.4 103.3 106.0 107.0 110.0 112.4 Government civilian............................. .. Supplements to wages and salaries.......... .. Em ployer contributions for social in surance ................................................... O ther labor income................................. .7 .5 2 .7 7.8 44.2 49.7 56.3 61.9 70.7 70.0 71.5 73.0 76.1 77.8 .1 .6 A .4 2 .0 .7 4 .0 3.8 21.9 22.3 24.3 25.4 27.8 28.4 29.7 32.1 34.1 36.5 33.8 36.1 34.3 37.2 35.0 38.0 37.3 38.8 38.0 39.8 Proprietors’ income.............................................. Business and professional.............................. F a rm ................................................................... 15.1 9 .0 6 .2 5 .9 3.3 2 .6 17.5 11.1 6 .4 37.5 24 .0 13.5 62.1 47.3 14.8 64.2 49,5 14.7 67.2 50.5 16.7 66.8 49.9 16.9 70.0 52.6 17.3 69.3 52.4 16.9 70.7 53.1 17.6 71.8 53.8 18.1 73.3 54.3 19.1 73.2 54.4 18.7 Rental income of persons.................................... 5 .4 2 .0 3 .5 9 .4 21.1 21.2 22.6 23.3 24.5 24.4 24.8 25.0 25.2 24.2 10.5 - 1 .2 15.2 37.7 78.7 84.3 79.8 69.9 78.6 80.1 78.3 79.4 81.8 87.6 74.3 34.1 40.2 24.8 15.4 83.3 37.3 45.9 25.4 20.5 84.5 38.6 45.8 25.4 20.4 84.1 37.5 46 .6 25.5 21.0 83.2 35.3 48.0 25.2 22.7 88.2 38.8 49.5 26.0 23.5 93.1 40.7 52.4 26.2 26.2 Corporate profits and inventory valuation 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 79.8 33.2 46.6 21.4 25.3 87.6 39.9 47.8 23.6 24.2 84.9 40.1 4 4.8 24.3 20.5 Inventory valuation adjustm ent.................... .5 -2 .1 -2 .5 -5 .0 -1 .1 -3 .3 -5 .1 -4 .4 -4 .7 -4 .4 -5 .8 -3 .9 -6 .5 -5 .5 Net interest............................................................. 4 .7 4 .1 3 .2 2 .0 24.4 26.9 30.5 34.8 38.5 38.1 39.1 39.7 40.1 40.9 Profits before ta x ............................................. Profits after tax............................................ D ividends................................................... Undistributed profits.............................. N o t e . —Dept, o f Commerce estimates. Q uarterly data are seasonally adjusted totals at annual rates. See also N o t e to table above. SEPTEMBER 1972 □ NATIONAL PRODUCT AND INCOME A 71 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions o f dollars) 1929 Item 1933 1941 1950 1967 1968 1969 1970 1971 II 103.1 Less: Capital consum ption allowances.......... Indirect business tax and nontax liaBusiness transfer paym ents................... Statistical discrepancy............................. Plus: Subsidies less current surplus o f gov ernment enterprises.............................. III IV Up I 55.6 124.5 284.8 793.9 864.2 930.3 976.4 1050.4 1043.0 1056.9 1,078.1 1,109.1 1 ,139.4 7 .9 7 .0 8 .2 18.3 68.9 95.0 97.4 99.7 105.3 7 .0 .6 .7 7.1 .7 .6 11.3 .5 .4 23.3 .8 1.5 70.4 78.6 85.9 93.4 101.9 100.3 102.6 3.4 4 .7 3.1 3.8 4 .2 4 .6 4 .6 - . 7 - 2 .7 - 6 .1 - 4 .7 - 4 .8 - 4 .9 - 5 .9 105.6 4 .7 -5 .2 106.7 4.8 -4 .1 108.7 4 .9 -1 .6 .1 .2 -.1 86.8 Less: C orporate profits and inventory valu ation adjustm ent.................................. Contributions for social insurance----Excess o f wage accruals over disburse ments ....................................................... 1972 1971 74.5 1.4 .7 81.6 1.0 86.3 .9 92.4 .3 .7 1.2 1.6 40.3 104.2 241.1 653.6 711.1 766.0 798.6 855.7 851.4 860.8 876.2 903.1 923.6 79.4 66.9 81.8 71.9 87.6 73.1 10.5 - 1 . 2 .2 .3 1.5 93.8 15.2 2.8 37.7 6.9 78.7 42.4 84.3 47.1 79.8 54.2 69.9 57.7 78.6 65.3 .8 80.1 64.8 78.3 65.7 .6 .2 .6 1.4 -1 .4 -.5 Plus: Government transfer paym ents............ N et interest paid by government and consum ers.............................................. D ividends................................................... Business transfer paym ents................... .9 1.5 2 .6 14.3 4 8.7 56.1 61.9 75.2 89.0 90.7 90.3 92.1 94.4 95.7 2 .5 5.8 .6 1.6 2 .0 .7 2 .2 4 .4 .5 7 .2 8.8 .8 23.6 21.4 3.1 26.1 23.6 3.4 28.7 24.3 3.8 31.0 24.8 4 .2 31.1 25.4 4 .6 31.0 25.4 4 .6 31.1 25.5 4 .7 30.9 25.2 4 .7 30.9 26.0 4.8 31.8 26.2 4 .9 96.0 227.6 629.3 688.9 750.9 806.3 861.4 858.1 867.9 881.5 907.0 922.1 97.9 116.5 116.7 117.0 115.2 117.5 123.0 136.5 139.5 Equals: Personal income.................................... 85.9 47.0 Less: Personal tax and nontax paym ents.. . . 2.6 1.5 Equals: Disposable personal income................. 83.3 45.5 92.7 206.9 546.3 591.0 634.4 689.5 744.4 742.9 750.4 758.5 770.5 782.6 Less: Personal o u tlay s....................................... Personal consum ption expenditures. Consumer interest paym ents............. Personal transfer payments to for eigners................................................. 79.1 77.2 1.5 46.5 45.8 .5 81.7 193.9 506.0 551.2 596.2 634.7 683.4 678.8 689.4 80.6 191.0 492.1 536.2 579.5 616.8 664.9 660.4 670.7 2 .4 13.2 14.3 15.8 16.9 17.6 17.5 17.6 .9 699.2 680.5 17.7 714.9 696.1 17.8 732.5 713.4 18.0 .3 .2 .2 .5 .7 .8 .9 1.0 1.0 .9 1.1 1.1 1.0 1.1 E quals: Personal saving....................................... 4 .2 -.9 11.0 13.1 40.4 39.8 38.2 54.9 60.9 64.1 61.0 59.3 55.7 50.1 Disposable personal income in constant (1958) dollars.................................................................. 150.6 112.2 190.3 249.6 477.5 499.0 513.6 533.2 554.7 554.6 556.5 560.9 565.7 571.4 M ay June July? 3.3 20.7 83.0 N o t e . —Dept, o f Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also N o t e to table opposite. PERSONAL INCOME (In billions o f dollars) Item 1970 1971 1972 1971 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. M ar. Apr. Total personal income............................ 806.3 861.4 862.4 869.1 872.2 874.8 879.4 890.4 898.9 908.5 913.6 919.4 924.0 922.9 934.2 W age and salary disbursements........... Commodity-producing industries. . Manufacturing only........................ Distributive industries....................... Service industries................................ G overnm ent......................................... 541.9 201.0 158.3 129.2 96.7 115.1 572.9 572.5 577.2 577.9 579.9 206.1 205.5 205.5 206.9 207.9 160.3 160.0 159.5 160.4 161.3 138.2 137.7 139.3 140.2 140.4 105.0 105.7 106.3 106.8 107.5 123.5 123.6 126.1 124.0 124.0 583.4 208.8 161.7 140.8 108.2 125.5 594.3 213.1 165.1 143.8 109.4 128.0 602.6 214.8 165.8 145.5 111.2 131.2 609.0 612.4 617.6 619.9 217.7 220.1 221.7 222.5 169.3 171.3 173.3 173.8 148.1 148.0 149.4 149.4 111.6 112.8 113.9 114.7 131.7 131.5 132.5 133.2 624.0 626.4 223.5 222.7 175.0 174.8 151.4 152.3 115.5 117.2 133.6 134.3 O ther labor incom e................................ 32.1 36.5 36.9 37.2 37.5 37.8 38.0 38.3 38.5 38.8 39.1 39.5 39.8 40.1 40.5 Proprietors’ incom e................................ Business and professional................. F a rm ...................................................... 66.8 49.9 16.9 69.9 52.6 17.3 70.0 52.8 17.2 70.7 53.1 17.6 71.3 53.4 17.9 71.6 53.6 18.0 71.9 53.8 18.1 72.0 53.9 18.1 72.6 54.0 18.6 73.2 54.1 19.1 74.2 54.7 19.5 74.0 54.9 19.1 74.0 55.3 18.7 71.6 53.2 18.4 74.3 55.7 18.6 R ental incom e......................................... 23.3 24.5 24.7 24.9 24.9 24.9 25.0 25.1 25.1 25.2 25.3 25.5 25.6 21.5 25.8 24.8 25 .4 26.0 26.1 26.3 26.3 26.4 65.8 69.6 72.7 73.4 73.8 D ividends................................................. Personal interest incom e....................... Transfer paym ents.................................. Less: Personal contributions for social insurance.......................................... Nonagricultural income.......................... Agricultural income................................ 25.5 69.8 25.6 70.2 25.5 70.5 70.5 25.5 70.6 24.6 70.7 26.0 70.8 26.1 71.0 79.5 93.6 94.2 94.7 96.1 96.2 96.8 97.6 97.6 100.0 28.0 31.2 31.2 31.4 31.5 31.6 31.8 32.3 34.3 34.7 71.3 72.0 100.1 99.7 100.9 101.3 102.4 34.8 35.0 35.1 35.3 35.5 782.8 837.2 838.4 844.7 847.6 850.0 854.5 865.0 873.4 882.4 887.1 893.4 898.3 897.5 908.6 23.5 24.2 24.0 24.4 24.6 24.8 24.9 25.4 25.6 26.0 26.5 26.0 25.8 25.4 25.5 N o t e . —Dept, o f Commerce estimates. M onthly data are seasonally adjusted totals at annual rates. See also N o t e to table opposite. 25.5 A 72 FLOW OF FUNDS □ SEPTEMBER 1972 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual ra te s; in billions o f dollars) 1969 Transaction category, or sector 1965 1966 1967 1968 1969 1970 1970 1971 1972 1971 HI H2 HI H2 HI H2 Ql Funds raised, by type and sector 1 Total funds raised by nonfinancial sectors............................................ 70.4 68.7 83.4 97.8 2 3 4 U.S. Government................................. Public debt securities...................... Budget agency issues...................... 1.8 1.3 .5 3 .6 2 .3 1.3 13.0 8.9 4.1 13.4 10.3 3.1 -3 .6 - 1 .3 -2 .4 5 A ll o th e r n o n fin a n cia l s e c t o r s . . 6 Corporate equity sh ares................. D ebt instrum ents............................. 7 8 D ebt capital instrum ents........... 9 State and local govt. secs.. . . Corporate and fgn. b o n d s. . . 10 11 M ortgages................................. 12 Home mortgages.................. 13 Other residential................... 14 Commercial.......................... 15 68.6 .3 68.3 38.8 7.3 5.9 25.6 15.4 3 .6 4 .4 2 .2 65.0 .9 64.1 39.0 5 .7 11.0 22.3 11.4 3.1 5 .7 2 .1 70.4 2 .4 68.0 46.2 8.3 15.9 22.0 11.6 3 .6 4 .7 2 .1 84.4 -.7 85.1 51.3 10.1 14.0 27.3 15.2 3 .5 6 .6 2 .1 16 17 18 19 20 O ther private credit..................... Bank loans n.e.c........ .............. C onsumer cre d it...................... Open m arket p ap er................. O th er.......................................... 29.5 14.1 10.0 -.3 5 .7 25.1 10.4 7 .2 1.0 6 .4 21.8 9 .9 4 .6 2.1 5 .2 21 22 23 24 25 26 27 28 B y b o rro w in g s e c to r ......... ............ F o reig n .............................................. State and local governm ents......... H ouseholds....................................... Nonfinancial business.................... Corporate...................................... Nonfarm noncorporate................ Farm............................................... 68.6 2 .5 7.6 28.8 29.6 2 0 .6 5 .7 3 .3 65.0 1.3 6.4 23.2 34.1 25.2 5 .5 3 .5 70.4 4 .0 8.5 19.7 38.1 2 9 .7 5 .0 3 .5 91.7 101.6 156.3 92.1 91.0 25.5 26.0 -.5 -6 .4 - 5 .9 -.5 -.6 3.6 -1 .3 8 .2 9 .5 -4 .2 95.3 4.8 90.6 49.0 7.9 13.1 27.9 15.7 4 .8 5 .5 1.9 88.8 130.8 6.8 13.5 81.9 117.4 60.8 87.5 13.8 20.2 21.1 20.3 25.8 47.0 12.8 26.1 5 .9 8 .8 5 .4 10.1 1.8 2 .0 98.5 1.9 96.6 51.8 8.5 14.0 29.3 16.8 4 .6 5 .7 2 .3 91.5 7.6 83.9 46.2 7.4 12.2 26.5 14.6 5.1 5 .3 1 .6 33.8 13.8 11.1 1.6 7.3 41.6 16.8 9.3 3.3 12.2 21.1 5.0 4.3 3.8 8.0 29.9 13.0 10.4 -.4 6.9 44.8 19.4 10.0 4 .6 10.8 84.4 3.1 10.4 31.9 39.1 30 .7 5 .7 2 .7 95.3 3.3 8 .7 32.6 50.8 40.2 7.4 3 .2 88.8 130.8 3.0 5.6 13.9 20.6 22.3 41.6 49.5 63.0 39.8 48.6 6 .4 10.3 3 .2 4.1 98.5 4 .7 8.9 34.2 50.8 39.8 7.6 3 .4 12.8 12.9 -.1 93.8 109.7 142.9 168.9 138.6 17.4 16.3 1.1 22.3 23.8 -1 .6 1 5.3 3.1 2 .2 2 3 4 85.6 6 .0 79.6 52.5 11.8 18.0 22.7 11.2 5 .2 4 .8 1.5 92.3 120.6 140.3 133.3 10.4 7.6 12.7 14.2 84.7 108.0 126.1 122.9 69.2 84.5 90.5 77.7 15.9 22.0 18.4 16.7 24.3 23.2 17.4 11.6 2 9.0 39.3 54.6 49.4 14.4 20.4 31.8 2 7 .2 6 .6 8 .6 9 .0 8 .5 6 .0 8 .6 11.6 11.5 2.1 2 .2 1 .8 2 .3 5 6 7 8 9 10 11 12 13 14 15 37.8 14.2 7.9 2.1 13.6 27.1 9 .0 5 .5 3 .7 8.8 15.5 1.1 3.4 3.8 7.3 45.2 19.7 13.9 2.9 8.6 16 17 18 19 20 91.5 2 .0 8.5 30.3 50.7 40.6 7.2 3 .0 85.6 2.3 11.4 22.0 49.9 41.1 5 .6 3 .2 92.3 120.6 140.3 133.3 3.8 5.8 2.9 5.5 16.4 22.1 19.1 17.8 22.9 31.5 51.0 47.4 4 9.2 61.6 64.4 65.2 38.5 47.0 50.1 49.5 7.4 11.0 9 .7 11.4 3 .3 3 .6 4 .6 4 .2 21 22 23 24 25 26 27 28 23.4 7.9 6.5 -.4 9 .4 28.6 28.1 .5 35.6 18.0 13.5 -.4 4 .5 Private net investment and borrowing in credit markets 1 2 3 T otal, households and business T o ta l c a p ita l o u tl a y s 1............... Capital consum ption2..................... N et physical investm ent................. 4 5 N et funds raised .............................. Excess net investm ent3................... 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 58.5 4 .9 57.3 15.4 57.9 2 .4 84.1 50.5 33.6 97.0 54.2 42.8 94.0 58.5 35.6 29.6 * 4 .0 33.0 1.2 8 .7 35.8 2 .3 -2 .5 N et physical investment................. 62.8 35.2 27.5 77.1 38.2 38.9 72.0 41.5 30.5 76.2 45.1 31.1 84.0 49.9 34.2 Corporate equity issues................. Excess net investment3................... 20.6 * 6.9 2 4.0 1.2 13.7 27.4 2 .3 .8 31.6 -.8 .3 35.9 4 .3 -6 .0 89.6 59.9 29.7 Total business T o ta l c a p ita l o u tl a y s ................. Capital consum ption....................... N et debt funds raised..................... C orporate equity issues.................. Excess net investment3................... Corporate business T o ta l c a p ita l o u tla y s ................. Households T o ta l c a p ita l o u tla y s ................. N et physical investment................. 21 22 O f which: 23 24 25 26 173.6 191.2 188.7 208.7 227.1 225.5 252.9 224.2 229.9 224.3 226.7 247.0 258.8 276.1 110.3 118.5 128.4 140.4 154.4 164.9 178.5 151.0 157.7 162.5 167.3 174.5 182.6 188.7 63.3 72.7 60.3 68.3 72.7 60.6 74.3 73.2 72.2 61.8 59.4 72.5 76.1 87.4 D urables less cons, cre d it.............. Nonprofit P&E less m ortgages. . . Less: Unallocated d e b t.................. 71.0 83.3 71.8 104.6 84.9 - 2 . 7 - 1 0 . 6 - 1 1 . 2 - 3 0 .3 - 1 1 . 7 81.1 71.9 72.1 93.1 115.4 112.6 - 8 . 9 - 1 0 .1 - 1 2 . 7 - 2 0 . 5 - 3 9 . 2 - 2 5 . 2 4 5 99.0 109.3 110.1 118.0 106.1 112.4 108.4 111.9 116.9 119.0 129.4 63.2 69.5 73.6 80.0 67.9 71.1 72.9 74.2 77.8 82.3 85.5 35.8 39.7 36.6 37.9 38.1 41.3 35.5 37.6 39.2 36.7 43.9 6 7 8 40.0 46.5 42.7 49.6 49.5 -.8 4.3 6.8 13.4 1.2 - 3 . 3 - 1 1 .1 - 1 2 . 9 - 2 5 .1 - 1 2 . 6 85.2 57.3 27.9 81.5 48.7 32.9 33.0 35.1 6.8 13.4 - 7 .9 - 2 0 .7 38.6 1.2 -6 .9 9 10 11 12 13 14 31.2 34.7 35.6 39.0 12.3 7.3 14.5 10.5 - 5 .3 -1 7 .6 -2 3 .7 - 1 7 .0 15 16 17 94.2 64.3 29.9 94.6 109.7 117.8 115.3 134.9 118.1 117.5 115.9 114.8 130.1 139.8 146.7 69.9 77.2 84.8 91.3 98.5 83.1 86.6 89.6 93.0 96.7 100.3 103.2 24.7 32.5 33.0 24.0 36.4 35.1 30.9 26.3 21.7 33.4 39.4 43.5 18 19 20 28.8 .9 23.2 6 .7 19.7 5 .0 31.9 .6 32.6 .5 22.3 1.7 41.6 -5 .2 34.2 .9 30.3 .6 22.0 4.3 22.9 -1 .2 31.5 51.0 1.9 - 1 1 .5 47.4 -3 .9 21 22 -3 .3 4 .7 1.8 2.4 - .8 7.9 2 .0 2 .4 -1 .3 7.8 1.9 3.5 -2 .1 5.6 1.9 4.8 -2 .9 7.0 2.2 5.8 -1 .9 5.5 2 .2 4.1 -8 .1 5.7 2.3 5.2 -2 .8 7.7 2 .0 6 .0 -3 .1 6.9 2 .4 5.6 - 1 .0 6.4 2.3 3.3 -2 .8 4 .4 2.1 4.9 - 4 .2 -1 1 .9 8.7 3.5 2.3 2 .4 4.9 5.6 -4 .4 5.4 2 .6 7 .5 23 24 25 26 N o t e . —Capital outlays and capital consum ption allowances reflect 1969-72 revisions published in the July 1972 issue o f Survey o f Current Business. Funds raised by type and sector. Credit flows included here are the 84.6 52.7 31.9 43.4 43.7 41.9 49.2 49.9 54.6 7.4 6.3 7.3 12.3 14.5 10.5 - 9 .5 - 1 4 .4 -1 1 .6 -2 2 .4 -2 7 .7 - 2 1 .3 94 .0 61.5 32.5 1 Capital outlays are totals for residential and nonresidential fixed capital, net change in inventories, and consumer durables, except outlays by financial business. 2 Capital consumption includes amounts for consumer durables and excludes financial business capital consumption. 3 Excess o f net investment over net funds raised. 1 2 3 86.5 51.1 35.4 83.0 52.3 30.7 34.9 33.2 7.4 6.3 - 5 .1 -1 0 .4 86.3 53.1 33.1 85.0 55.6 29.4 85.5 59.0 26.4 net am ounts raised by households, nonfinancial business, governments, and foreigners. All funds raised by financial sectors are excluded. U.S. G overnment budget issues (line 4) are loan participation certificates issued by CCC, Export-Im port Bank, FN M A , and G N M A , together with security issues by F H A , Export-Im port Bank, and TV A. Issues by federally sponsored credit agencies are excluded as borrowing by financial institu tions. Such issues are in U.S. G overnment securities on p. A-73, line 11. C orporate share issues are net cash issues by nonfinancial and foreign corporations. Mortgages exclude loans in process. Open m arket paper is commercial paper issued by nonfinancial corporations plus bankers’ acceptances. SEPTEMBER 1972 □ FLOW OF FUNDS A 73 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1969 Transaction category, or sector 1 Total funds advanced in credit m ar kets to nonfinancial sectors. By public agencies and foreign 2 Total net advances............................... 3 U.S. Governm ent securities......... 4 Residential m ortgages.................... 5 FH LB advances to S&L’s ............. 6 O ther loans and securities............ 1965 1966 1967 1968 1969 1970 1971 HI 1970 H2 HI 1971 H2 HI 1972 H2 Ql 70.1 67.7 81.0 98.5 86.9 94.7 142.9 90.2 83.3 87.8 102.1 130.2 154.7 128.2 1 8 .9 3.7 .4 .7 4.1 11.9 3.4 2.8 .9 4 .8 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 41.2 33.4 5 .7 - 2 .7 4.8 9.9 -2 .7 3 .0 3.1 6.6 22.3 4 .5 6.3 5 .0 6 .6 25.3 27.2 20.4 5.9 -6 .0 6 .9 2 3 4 5 6 By agency— 7 U.S. G overnm ent........................... 8 Sponsored credit agencies.............. 9 Federal R eserve............................... 10 F oreign............................................. 11 Agency borrowing not in line 1 . . . . 2.8 2 .2 3.8 .1 2.1 4.9 5.1 3.5 - 1 .6 4 .8 4 .6 -.1 4 .8 2 .0 -.6 4 .9 3 .2 3 .7 .3 3.5 2.9 9 .0 4 .2 -.3 2.8 9.9 5.0 10.3 8 .7 3 .2 2.8 26.4 3.9 2 .7 6 .2 3 .7 - 2 .6 7.1 3 .7 11.8 4.8 2 .0 11.0 Private domestic funds advanced Total net advances.............................. U.S. Government securities......... M unicipal securities...................... C orporate and foreign bonds----Residential m ortgages................... O ther mortgages and loans........ Less: FHLB advances.................. 63.3 * 7.3 6.0 18.6 32.1 .7 60.6 5 .4 5 .7 10.3 11.6 28.5 .9 69.1 5 .7 8.3 16.0 13.1 23.5 -2 .5 89.8 13.3 10.1 13.8 15.8 37.8 .9 79.9 4.6 7.9 12.6 15.8 43.0 4.0 75.5 105.5 5.8 - 4 . 0 13.8 20.2 20.5 20.0 12.9 29.2 23.8 37.4 1.3 - 2 . 7 87.3 3.5 8.5 13.4 18.3 46.8 3.1 P riv a te fin a n c ia l in te r m e d ia tio n 19 Credit market funds advanced by pri vate financial institutions.......... 20 Commercial b an k in g ...................... 21 Savings institutions......................... 22 Insurance and pension fu n d s........ 23 O ther finance.................................. 62.5 29.1 14.3 13.6 5.5 44 .7 17.0 7.9 15.0 4 .7 62. 35.9 15.0 12.4 -.5 75.0 39.0 15.6 13.9 6 .6 54.0 18.9 14.2 12.2 8.6 70.2 105.8 31.6 49.8 16.6 41.6 17.6 12.0 4 .5 2.3 24 25 26 Sources o f funds.................................... Domestic private deposits............. C redit m arket borrow ing............. 62.5 38.5 6.8 4 4 .7 2 1 .2 3.0 62 4 9.4 -.6 75.0 46.1 6.9 54.0 2 .5 16.8 70.2 105. 60.4 9 2 . 3 1.8 4.5 27 28 29 30 31 O ther sources.................................. Foreign funds............................. Treasury balances..................... Insurance and pension reserves O ther, n e t.................................... 17.2 .8 -1 .0 11.4 5.9 20.5 3.7 -.5 13.2 4 .2 14.0 2 .3 .2 11.8 - .3 2 2.0 2 .6 - .2 11.2 8 .4 34.7 9.3 * 10.3 15.1 8 .0 - 8 .4 2 .9 13.5 P riv a te d o m e s tic n o n fin a n c ia l in v e sto rs 32 D irect lending in credit m k ts........... 33 U.S. G overnment securities......... 34 M unicipal securities...................... 35 C orporate and foreign bonds---36 Commercial p ap er......................... 37 O th er................................................. 7 .6 2.3 2 .6 1.4 .5 18.9 8.8 2 .7 2 .5 2 .0 3 .0 5.8 -1 .3 -2 .0 5.3 1.5 2 .4 21.7 7 .7 .3 5.1 4 .4 4 .2 42.7 16.0 6.7 7.6 8 .7 3.7 12 13 14 15 16 17 18 37.7 32.4 4.2 7.1 4.6 -5 . 6.9 2.J 3.1 11.1 2 .8 8.3 10.8 2 .6 8 .7 7 .2 12.2 6 .6 4 .4 -1 .8 8 .4 26.7 26.1 2 .2 7.3 3.8 13.9 6 .0 7 8 9 10 11 72.0 6.1 7 .4 11.8 13.3 38.5 5.0 73.3 8.6 11.8 17.1 10.0 28.6 2.8 7 8.0 3.1 15.9 23.8 15.7 19.4 -.1 92.8 - 9 .9 22.0 23.0 24.7 27.2 -5 .8 106.9 - 8 .7 16.7 17.1 11.3 33 i 29.6 52.0 - 6 .0 12 13 14 15 16 17 18 64.1 23.1 17.8 12.4 10.9 4 3.7 14.7 10.6 12.1 6.2 54.3 2 1.6 11.7 17.7 3.3 86.1 105.9 105.3 120.9 50.0 55.2 41.5 49.4 37.8 49.8 21.5 45.4 12.4 17.5 11.6 8.1 5 .2 5.5 -.6 7 .9 64.1 5.0 13.4 4 3 .7 -.1 20.1 54.3 32.0 10.7 86.1 105.9 105.3 120.9 88.8 105.8 78.6 112.3 9.2 -7 .0 -.2 7 .2 9 .0 -3 .3 2 .2 8 .2 1.8 45.7 14.4 -2 .1 9 .7 23.7 23.6 4 .2 2.1 10.9 6.3 7 .0 4 .2 - 7 . 6 - 1 3 .1 1.4 5.7 10.4 8.6 - 1 .2 -2 .1 4.1 5.0 36.4 14.6 6 .2 6 .0 6.1 3.5 48.7 17.4 7 .2 9.1 11.2 3.8 10.5 6.3 2.8 5.7 30.6 21.0 5.2 -.1 11.6 4 .3 - 3 . 4 -1 3 .5 3 .4 2 .4 13.0 14.1 -1 .3 1.2 .3 .3 - 7 .6 - 1 .6 7.6 2 .0 29.5 -1 5 .0 - 1 3 . 3 1.8 -1 7 .0 - 2 4 . 7 3.8 - 1 . 1 5.3 12.1 10.3 8 .7 10.9 -1 3 .3 - 7 . 8 4.3 4.3 3.5 17.6 1.0 6.1 8.8 1.6 24 25 26 1.4 1.3 - 7 .9 3.1 4 .9 27 28 29 30 31 21.2 - 6 . 8 - 1 . 6 -1 8 .2 6.1 4 .2 6.8 7.1 3.7 - 3 . 8 6.2 4 .0 32 33 34 35 36 37 38 39 D eposits and currency..................... Time and savings accounts......... 40 .7 32.7 23.1 20.3 51.5 39.3 48.6 34.0 5.3 - 2 .2 63.9 56.2 95.7 81.3 6 .5 5.2 4.1 - 9 .7 35.0 31.1 92. 81.4 110.3 92.4 80.9 70.1 117.4 92.7 38 39 40 41 42 M oney.............................................. D em and deposits........ .............. C urrency....................... .............. 7.9 5.8 2.1 2. .8 2 .0 12.2 10.1 2.1 14.6 12.2 2 .4 7.6 4.7 2.8 7 .7 4 .2 3.5 14.4 11.0 3.4 1.3 - .2 1.5 13. 9 .6 4 .2 3.9 .9 3.0 11.4 7 .4 4 .0 17.9 13.4 4 .5 10.7 24 .7 19.6 5 .0 40 41 42 43 Total of credit m arket instr., de posits, and currency................. 4 8.2 42.1 57.3 70.3 48.8 71.3 99.9 42.1 55.3 65.3 77.8 96.9 102.1 110.6 43 44 45 M em oranda: Public support rate (in per cent) Pvt. fin. interm ediation (in per c en t).......................................• Total foreign funds..................... • 12.7 17.6 13.9 12.3 18.0 29.4 28.9 11.1 26.0 28.6 30.0 28.9 2 9.0 21.2 44 98.8 .8 73.7 2.1 90.8 4 .3 83.5 2 .9 66.9 9 .0 92.6 1.8 100.2 23.1 74.3 11. 58.5 6.2 73.4 4 .9 110.3 - 1 .3 114.0 19.1 89.8 27.1 113.1 15.2 45 46 46 8 .4 2.3 C orporate equities not included above 1 Total net issues..................................... 2 M utual fund shares......................... O ther equities............................. 3 3 .4 3.1 .3 4 .6 3.7 .9 4 .9 2 .6 2.3 4 .0 4 .7 -.7 10.4 5.7 4.7 9.3 2 .4 6.9 14.6 1.1 13.5 8.3 6.4 1.9 12.6 5 .0 7.6 9.1 3.0 6.1 9 .5 1.9 7.6 12.9 .2 12.7 16.3 2.1 14.2 7 .9 - 2 .7 10.6 1 2 3 4 Acq. by financial in stitu tio n ............. 5 O ther net purchases............................ 5.7 -2 .3 6.0 -1 .3 8.4 -3 .5 9.5 -5 .5 12.8 - 2 .4 11.3 - 2 .0 19.1 -4 .5 12.1 -3 .8 13.5 - .9 12.5 -3 .3 10.2 - .7 20.7 -7 .8 17.5 - 1 .2 14.7 - 6 .7 4 5 Notes Line 1. Total funds raised (line 1 o f p. A-72) excluding corporate equities. 2. Sum o f lines 3-6 or 7-10. 6. Includes farm and commercial mortgages. 11. Funds raised by Federally sponsored credit agencies. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum o f lines 27 through 41 excluding subtotals. 17. Includes farm and commercial mortgages. 25. Lines 39 + 41. 26. Excludes equity issues and investment company shares. Includes line 18. 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, and liabilities o f foreign banking agencies to foreign affiliates. 29. Demand deposits at commercial banks. 30. Excludes net investment o f 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. 42. Mainly an offset to line 9. 43. Lines 32 plus 38 or line 12 less line 27 plus line 42. 44. Line 2/line 1. 45. Line 19/line 12. 46. Lines 10 plus 28. Corporate equities Line 1 and 3 Includes issues by financial institutions. A 74 U.S. BALANCE OF PAYMENTS □ SEPTEMBER 1972 1. U.S. BALANCE OF PAYMENTS (In millions o f dollars) 1969 C redits+ , debits — Line 1970 1971 1971 I II 1972 III Ip IV Summary—Seasonally adjusted 621 2,164 -2 ,6 8 9 289 - 1 ,0 1 2 -4 7 2 - 1 ,4 9 4 - 1 ,6 7 3 36,417 41,963 42,770 11,017 10,710 11,479 9,564 11,809 -3 5 ,7 9 6 -3 9 ,7 9 9 -4 5 ,4 5 9 -1 0 ,7 2 8 -1 1 ,7 2 2 -1 1 ,9 5 1 -1 1 ,0 5 8 -1 3 ,4 8 2 1 2 3 M erchandise trade balance 1........................................................ E xports...................................................................................... 4 5 Military transactions, n e t.............................................................. Travel and transportation, n e t..................................................... - 3 ,3 4 4 - 1 ,7 8 4 -3 ,3 7 4 -2 ,0 6 1 -2 ,8 9 4 -2 ,4 3 2 -6 6 5 -4 9 8 -6 9 8 -6 2 5 -7 2 4 -6 0 6 -8 0 7 -7 0 3 -8 6 6 -6 4 3 6 7 8 9 U.S. direct investments abroad............................................ O ther U.S. investments abroad............................................ Foreign investments in the United States......................... 5,975 7,340 3,199 - 4 ,5 6 4 6,259 7,920 3,506 -5 ,1 6 7 7,995 9,455 3,443 -4 ,9 0 3 1,798 2,060 877 -1 ,1 3 9 2,191 2,464 833 -1 ,1 0 6 1,711 2,163 852 -1 ,3 0 4 2,295 2,770 881 - 1 ,3 5 6 1,836 2,271 930 - 1 ,3 6 5 442 574 748 212 180 182 172 199 Balance on goods and services 3............................................................ 1,911 3,563 727 1,136 36 91 -5 3 7 —1,147 12 Remittances, pensions, and other transfers............................. -1 ,3 0 1 - 1 ,4 7 4 -1 ,5 2 9 -3 5 5 -3 6 9 -4 0 2 -4 0 4 -3 8 7 13 Balance on goods, services, and remittances...................................... 610 2,089 -8 0 2 781 -3 3 3 -3 1 1 -9 4 1 - 1 ,5 3 4 14 U.S. Government grants (excluding m ilitary)........................... - 1 ,6 4 4 -1 ,7 3 4 - 2 ,0 4 5 -4 3 6 -4 7 7 -5 4 4 -5 8 8 -5 6 0 15 Balance on current account..................................................................... -1 ,0 3 5 356 - 2 ,8 4 7 345 -8 1 0 -8 5 5 -1 ,5 2 9 - 2 ,0 9 4 16 - 2 ,1 0 6 -8 7 - 1 ,8 2 9 244 - 2 ,1 1 7 225 -6 0 9 4 -6 8 1 102 -4 4 2 72 -3 8 5 48 -2 8 7 45 19 20 21 22 23 24 25 U.S. Government capital flows excluding nonscheduled repayments, net 4 ......................................................................... Nonscheduled repayments o f U.S. Government assets........... U.S. Government nonliquid liabilities to other than foreign official reserve agencies.............................................................. Long-term private capital flows, n e t........................................... U.S. direct investments ab ro ad ............................................ Foreign direct investments in the United States.............. Foreign securities.................................................................... U.S. securities other than Treasury issues......................... O ther, reported by U.S. b an k s............................................ Other, reported by U.S. nonbanking concerns................. 267 -5 0 - 3 ,2 5 4 832 - 1 ,4 9 4 3,112 477 277 -4 3 3 -1 ,3 9 8 - 4 ,4 0 0 1,030 -9 4 2 2,190 198 526 -4 8 6 -4 ,1 4 9 -4 ,7 6 5 -6 7 -9 0 9 2,282 -8 1 4 124 -9 7 -9 2 2 - 1 ,2 9 0 124 -3 6 1 559 -1 2 7 173 -1 8 8 -5 - 1 ,6 0 5 - 1 ,8 8 3 - 1 ,2 7 7 - 1 ,4 1 0 1 -3 7 4 -3 7 2 -2 4 9 196 606 -2 1 4 -3 0 8 61 -1 4 8 -1 9 6 260 -7 8 8 181 73 921 -1 6 5 38 -1 4 3 -7 6 2 -9 9 4 -3 3 5 -3 8 8 1,066 6 -1 1 7 26 Balance on current account and long-term capital 4.......................... -3 ,0 1 1 -3 ,0 5 9 - 9 ,3 7 4 -1 ,2 7 9 - 2 ,9 9 9 - 3 ,2 9 6 - 1 ,8 0 2 -3 ,2 4 1 27 28 29 30 N onliquid short-term private capital flows, net*...................... Claims reported by U.S. b a n k s............................................ Claims reported by U.S. nonbanking concerns............... Liabilities reported by U.S. nonbanking concerns.......... -6 4 0 -6 5 8 -7 3 91 -4 8 2 -1 ,0 2 3 -3 6 1 902 - 2 ,4 2 0 -1 ,8 0 7 -5 5 5 -5 8 -5 3 4 -1 3 9 -1 3 3 -2 6 2 -3 1 5 -9 1 -1 4 5 -7 9 -8 8 3 -8 9 2 -1 4 7 156 -6 8 8 -6 8 5 -1 3 0 127 -5 2 9 -5 6 6 34 3 31 32 Errors and omissions, n e t............................................................. -2 ,4 7 0 867 717 -1 ,1 7 4 -1 0 ,9 2 7 180 -9 4 4 179 - 2 ,5 8 6 179 -5 ,3 8 0 179 -2 ,0 1 8 178 480 - 6 ,1 2 2 -3 ,8 5 1 -2 2 ,0 0 2 10 11 17 18 33 34 35 36 37 38 39 40 41 Liquid claim s............................................................................ Reported by U.S. nonbanking c o n cern s.................. Liquid liab ilities..................................................................... To foreign commercial b a n k s ...................................... To international and regional organizations............ To other foreigners........................................................ 2,702 42 45 Financed by changes in— Nonliquid liabilities to foreign official reserve agencies reported by U.S. G overnm ent.................................................. N onliquid liabilities to foreign official agencies reported by U.S. b anks............................................................................... Liquid liabilities to foreign official agencies.............................. 46 47 48 49 50 U.S. official reserve assets, n e t..................................................... G old........................................................................................... SD R’s ........................................................................................ Convertible currencies........................................................... Gold tranche position in I M F ............................................. 43 44 51 52 53 M emoranda: Transfers under military grant programs (excluded from lines 2, 4, and 14)....................................................................... Reinvested earnings o f foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................. Reinvested earnings o f U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)......................... For notes seeendof table. - 2 ,5 7 7 - 5 ,7 2 1 - 9 ,3 8 0 -4 ,3 2 9 - 3 ,1 1 2 -7 ,7 6 3 -1 ,0 7 2 -5 6 6 -5 0 6 -6 ,6 9 1 - 6 ,9 0 8 682 -4 6 5 -2 ,8 4 8 -2 7 2 -9 4 -1 7 8 - 2 ,5 7 6 -2 ,9 2 8 280 72 -7 4 5 95 32 63 -8 4 0 -8 9 2 198 -1 4 6 -2 ,5 5 1 -5 5 5 -3 9 2 -1 6 3 -1 ,9 9 6 - 1 ,7 7 5 149 -3 7 0 -1 ,6 1 9 -3 4 0 -1 1 2 -2 2 8 -1 ,2 7 9 - 1 ,3 1 3 55 -2 1 -1 6 5 -6 9 3 -5 1 8 -1 7 5 528 438 29 61 - 9 ,8 3 9 -2 9 ,7 6 5 -5 ,4 2 5 - 6 ,4 6 6 -1 1 ,9 3 1 -5 ,9 4 8 - 3 ,2 7 7 8,824 -5 ,9 8 8 162 252 -2 0 9 -9 9 371 351 8,662 - 6 ,2 4 0 9,166 -6 ,5 0 8 -6 3 181 -4 4 1 87 -1 6 2 535 341 -8 -8 —9 366 280 -8 3 6 -5 1 7 -8 1 0 7,637 -5 3 9 27,615 -2 0 1 4,952 -1 6 0 5,975 -1 7 3 10,919 -5 5,774 -4 2,572 - 1 ,1 8 7 -9 6 7 814 -1 ,0 3 4 2,477 787 -8 5 1 2,152 389 2,348 866 -2 4 9 381 1,350 682 109 —55 373 255 659 456 17 -6 6 252 1,194 300 -2 9 72 851 -1 8 7 1 -1 8 2 2 -8 429 544 —178 64 -1 2,856 2,586 3,153 2,614 2,885 ( 5) ( 5) ( 5) ( 5) ( 5) ( 5) 431 434 ( 5) ( 5) ( 5) ( 5) ( 5) ( 5) 735 778 701 939 932 SEPTEMBER 1972 a U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE 1. A 75 U.S. BALANCE OF PAYMENTS-Continued (In millions o f dollars) 1971 1969 Credits + , debits — 1970 1972 1971 II III IV Ip - 2 ,7 5 7 -5 ,6 0 5 - 5 ,9 0 0 - 6 ,6 4 5 -9 ,5 5 9 -1 2 ,1 1 0 - 4 ,5 0 8 - 6 ,1 2 7 - 3 ,2 9 0 -3 ,4 5 5 I Balances excluding allocations o f SD R’s—Seasonally adjusted -6 ,1 2 2 2,702 -4 ,7 1 8 -1 0 ,7 0 6 -2 2 ,7 1 9 -3 0 ,4 8 2 Balances not seasonally adjusted Balance on goods and services (line 11).......................................... Balance on goods, services, and remittances (line 13)................. Balance on current account (line 15)................................................ Balance on current account and long-term capital 4 (line 2 6 )... Balances including allocations o f SD R ’s : N et liquidity (line 33)................................................................... Official reserve transactions (line 42)........................................ Balances excluding allocations o f SD R’s: N et liquidity................................................................................... Official reserve transactions........................................................ 1,911 610 -1 ,0 3 5 -3 ,0 1 1 3,563 2,089 356 -3 ,0 5 9 727 -8 0 2 - 2 ,8 4 7 - 9 ,3 7 4 1,509 1,174 709 - 1 ,2 6 2 251 -1 3 1 -6 5 5 - 3 ,4 6 6 - 1 ,3 3 0 -1 ,7 4 3 - 2 ,2 4 6 - 4 ,6 7 2 296 -1 0 4 -6 5 7 23 -7 8 2 - 1 ,1 4 8 -1 ,7 3 8 - 3 ,2 7 2 - 6 ,1 2 2 2,702 -3 ,8 5 1 -9 ,8 3 9 - 2 2 ,0 0 2 -2 9 ,7 6 5 - 1 ,8 5 8 -4 ,7 1 8 - 6 ,6 1 2 - 6 ,4 6 2 -1 0 ,0 6 6 -1 2 ,7 0 3 - 3 ,4 6 6 - 5 ,8 8 2 - 2 ,3 6 5 - 2 ,5 4 8 - 6 ,1 2 2 2,702 -4 ,7 1 8 -1 0 ,7 0 6 -2 2 ,7 1 9 -3 0 ,4 8 2 -2 ,5 7 5 -5 ,4 3 5 - 6 ,6 1 2 - 6 ,4 6 2 -1 0 ,0 6 6 -1 2 ,7 0 3 - 3 ,4 6 6 - 5 ,8 8 2 - 3 ,0 7 5 -3 ,2 5 8 1 Adjusted to balance o f payments basis; excludes transfers under military grants, exports under U.S. military agency sales contracts and imports o f 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 o f goods and services in national income and product accounts o f the United States. 4 Includes some short-term U.S. Govt, assets. 5 N ot available. N o t e . — D ata are from U.S. D epartm ent o f Commerce, Office o f Busi ness Economics. Details may not add to totals because o f rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions o f dollars) Trade balance Period 1969 1970 1971 1972 1969 1970 1971 1972 M onth: J a n .. . Feb.. M ar.. A pr.. M ay. June. J u ly .. Aug.. Sept.. O c t.., N ov.. D ec.. 32,161 3 2,266 33,188 33,318 3 3,268 3 3,179 3,182 3,366 3.341 3.342 3,398 3,280 3,406 3,547 3,376 3,409 3,661 3,730 3,699 3,592 3,553 3,689 3,499 3,570 3,733 3,691 3,815 3,528 3,776 3,662 3,493 3,678 4,505 2,710 3,160 3,858 4,221 3,806 3,891 3,760 3,914 3,905 4,019 3 2,002 3 2,672 3 2,982 33,183 3 3,257 33,152 3,074 3,163 3.078 3,192 3,180 3.078 3,223 3,278 3,218 3,263 3,338 3,266 3,255 3,346 3.428 3,501 3.428 3,404 3,685 3,546 3,568 3,748 3,988 4,019 3,793 3,928 4,237 3,523 3,379 4,128 4,540 4,403 4,475 4,460 4,466 4,495 4,561 Quarter: I ___ 1 1 ... 111... I V . .. 7,615 9,765 9,889 10,020 10,328 10,800 10,845 10,758 11,239 10,965 11,675 9,726 11,917 11,579 7,655 9,591 9,315 9,450 9,719 9,867 10,029 10,333 10,799 11,747 11,958 11,030 13,418 13,421 Year4 . . 37,332 42,662 43,555 36,043 39,963 45,602 1 Exports o f domestic and foreign merchandise; excludes Dept, o f Defense shipments o f grant-aid military equipment and supplies under M utual Security Program. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. 1970 1971 1972 159 -4 0 6 206 135 11 27 108 203 263 150 218 202 183 269 158 146 323 465 444 246 125 188 71 166 48 145 247 -2 2 0 -2 1 2 -3 5 0 -3 0 0 -2 5 1 268 -8 1 5 -2 1 8 -2 7 0 -3 1 9 -5 9 8 -5 8 4 -6 9 9 -5 5 2 -5 9 0 -5 4 2 -4 0 174 574 570 609 933 816 425 440 -7 8 2 -2 8 3 -1 ,3 0 4 1,289 2,699 - 2 ,0 4 7 1969 -1 ,5 0 1 -1 ,8 4 2 3 Significantly affected by strikes. 4 Sum o f unadjusted figures. N o t e . —Bureau of the Census data. Details may not add to totals be cause o f rounding. A 76 U.S. GOLD TRANSACTIONS □ SEPTEMBER 1972 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) Area and country W estern Europe: A u stria.................................. Belgium................................. F rance.................................... G erm any, Fed. Rep. o f . .. Ireland................................... Italy ........................................ N etherlands.......................... Spain...................................... Switzerland........................... United K ingdom ............. Bank for Intl. Settlements. O th er..................................... T o tal. 1963 -8 2 -5 i8 -130 ‘329 1965 1964 -5 5 -4 0 -4 0 5 -2 2 5 -1 200 -6 0 -3 2 -8 1 618 -3 9 9 -1 0 0 -8 3 -8 8 4 -2 -8 0 -3 5 -1 8 0 -5 0 150 Latin American republics: Argentina ....................... Brazil................................. C olom bia.......................... Venezuela......................... O ther.................................. T o ta l. Asia: I r a q ................. J ap a n ............... L eb an o n ......... M alaysia......... Philippines. . . Saudi A ra b ia . Singapore. . . . O th er............... -1 1 32 -1 3 12 All o th er.......................... -3 6 T otal foreign countries. -392 3 -7 G rand to ta l......... II III -5 8 600 -2 -6 0 325 500 41 -7 6 -2 -8 5 -5 2 -2 0 9 -1 9 -3 0 -8 7 9 -5 0 -8 3 5 -2 5 -1 2 9 -110 -473 -1 1 0 -2 8 2 -1 9 1 -5 0 51 -5 0 -1 7 5 -5 0 -5 0 16 -4 7 -2 9 -1 3 -6 -2 2 -9 8 0 -6 6 9 969 -2 0 4 -7 9 6 -4 4 8 -263 200 150 50 -3 9 -3 7 -1 -1 -2 5 -2 5 -2 8 -2 3 -1 -6 -4 0 -2 9 -80 -4 17 -4 1 -6 5 -5 4 -131 -4 -1 0 -4 -5 6 -1 1 -1 4 -1 4 -2 4 -8 6 -1 6 -2 2 - 3 6 - 1 ,5 4 7 IV I II -2 5 -4 9 « -2 2 5 -392 1971 -659 - 3 6 - 1 ,3 2 2 Intl. M onetary F u n d 5.. 1970 -2 5 -6 0 i -2 1 -4 2 " -i -9 5 -3 4 9 -5 0 -8 1 -7 5 -1 -6 1969 -3 5 25 T o ta l................... 1968 -1,299 -9 56 1967 200 11 C anada ----- 1972 1971 1966 -2 2 -1 1 9 40 11 -9 -3 5 -1 0 -2 -91 -1 0 -1 -1 21 -3 0 -1 10 -32 -3 6 6 -2 1 3 3 -1 6 6 3 -6 8 -8 1 -608 -1 ,0 3 1 -1,118 957 4-6 3 1 -845 -4 4 5 22 -3 10 -1 5 6 -2 2 -1 1 -4 -5 4 4 -431 -1 ,0 0 9 -1,121 967 -7 8 7 -867 -4 5 7 -300 -5 4 4 177 1 Includes purchase from D enm ark o f $25 million. 2 Includes purchase from Kuw ait o f $25 million. 3 Includes sales to Algeria o f $150 million in 1967 and $50 million in 1968. 4 D ata for IM F include the U.S. paym ent o f $385 million increase in its gold subscription to the IM F and gold sold by the IM F to the United States in mitigation o f U.S. sales to other countries making gold payments to the IM F . The country d ata include U.S. gold sales to various countries in connection with the IM F qu o ta payments. Such U.S. sales to countries and resales to the U nited States by the IM F total $548 million each. 5 Includes IM F gold sales to and purchases from the U nited States, -4 -296 U.S. paym ent o f increases in its gold subscription to IM F , gold deposits by the IM F (see note 1 (b) to Table 4), and withdrawal o f deposits. The first w ithdrawal ($17 million) was m ade in June 1968 and the last with drawal ($144 million) was made in Feb. 1972. IM F sold to the U nited States a total o f $800 million o f gold ($200 million in 1956, and $300 million in 1959 and in 1960) with the right o f repurchase; proceeds from these sales invested by IM F in U.S. Govt, securities. IM F repurchased $400 million in Sept. 1970 and the remaining $400 million in Feb. 1972. 6 Payment to the IM F o f $259 million increase in U.S. gold subscription less gold deposits by the IM F. Notes to Table 5 on opposite page: 1 Represents net IM F sales o f gold to acquire U.S. dollars for use in IM F operations. Does not include transactions in gold relating to gold deposit or gold investment (see Table 6). 2 Positive figures represent purchases from the IM F o f currencies of other members for equivalent am ounts o f dollars; negative figures repre sent repurchase o f dollars, including dollars derived from charges on purchases and from other net dollar income o f the IM F. The United States has a commitment to repurchase within 3 to 5 years, but only to the extent th at the holdings o f dollars o f the IM F exceed 75 per cent o f the U.S. quota. Purchases o f dollars by other countries reduce the U.S. commitment to repurchase by an equivalent am ount. 3 Includes dollars obtained by countries other than the United States from sales o f gold to the IM F. 4 Represents the U.S. gold tranche position in the IM F (the U.S. quota minus the holdings o f dollars o f the IM F), which is the am ount that the United States could purchase in foreign currencies automatically if needed. U nder appropriate conditions, the United States could pur chase additional am ounts equal to its quota. 5 Includes $259 million gold subscription to the IM F in June 1965 for a U.S. quota increase, which became effective on Feb. 23, 1966. In figures published by the IM F from June 1965 through Jan. 1966, this gold sub scription was included in the U.S. gold stock and excluded from the reserve position. 6 Includes $30 million o f Special D raw ing Rights. 7 Represents am ount payable in dollars to the IM F to m aintain the value o f IM F holdings o f U.S. dollars. N o t e . —The initial U.S. quota in the IM 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 M ay 1972 as a result o f the change in par value o f the U.S. dollar. U nder the Articles o f Agreement, subscription payments equal to the quota have been m ade 25 per cent in gold and 75 per cent in dollars. SEPTEMBER 1972 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 77 4. U.S. RESERVE ASSETS (In millions of dollars) Gold sto ck 1 End o f year Total 1958. 1959. 1960. C on vertible foreign curren cies G old s to ck 1 Reserve position in IM F 3 T o tal2 Treasury 22,540 21,504 19,359 20,582 19,507 17,804 20,534 19,456 17,767 1961. 1962. 1963. 1964. 1965. 18,753 17,220 16,843 16,672 15,450 16,947 16,057 15,596 15,471 613,806 16,889 15,978 15,513 15,388 613,733 116 99 212 432 781 1,690 1,064 1,035 769 6 863 1966. 1967. 1968. 1969. 1970. 1971. 14,882 14,830 15,710 7 16,964 14,487 812,167 13,235 12,065 10,892 11,859 11,072 10,206 13,159 11,982 10.367 10.367 10,732 10,132 1,321 2,345 3,528 72,781 629 8 276 326 420 1,290 2,324 1,935 585 T o tal2 Treasury C on vertible foreign curren cies 5 End of m onth SD R ’s 4 1,958 1,997 1,555 851 1,100 1 Includes (a) gold sold to the United States by the International M on etary Fund with the right o f repurchase, and (b) gold deposited by the IM F to mitigate the impact on the U.S. gold stock o f foreign purchases for the purpose o f making gold subscriptions to the IM F under quota increases. F o r corresponding liabilities, see Table 6. 2 Includes gold in Exchange Stabilization Fund. 3 The United States has the right to purchase foreign currencies equiva lent to its reserve position in the IM F autom atically if needed. U nder ap propriate conditions the United States could purchase additional am ounts equal to the U.S. quota. See Table 5. 4 Includes allocations by the IM F o f 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 o f 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 IM F in June 1965 for a U.S. quota increase which Reserve position SD R ’s 4 1971 A ug... S ep t... O c t.. . N o v ... D ec... 12,128 12.131 12,146 12.131 8 12,167 10,488 10,209 10.207 10.207 10,206 10,206 10.132 10.132 10.132 10.132 10.132 248 250 259 243 8 276 574 577 580 582 585 1.097 1.097 1,100 1,100 1,100 1972 J a n .. . F e b ... M ar... A p r... M a y .. J u n e .. J u ly .. A ug... 12,879 12,330 12,270 12,285 913,345 13,339 13,090 13,124 10,206 9.662 9.662 9,662 910,490 10,490 10,488 10,132 9.588 9.588 9.588 910,410 10.410 10.410 10.410 276 276 212 429 469 457 203 234 587 582 586 391 9428 434 439 444 1,810 1,810 1,810 1,803 91,958 1.958 1.958 1.958 became effective on Feb. 23, 1966. In figures published by the IM F 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 o f $67 million resulting from revaluation o f the German m ark in Oct. 1969, o f which $13 million represents gain on m ark holdings a t time o f revaluation. 8 Includes $28 million increase in dollar value o f foreign currencies revalued to reflect market exchange rates as o f Dec. 31, 1971. 9 Total reserve assets include an increase o f $1,016 million resulting from change in par value o f the U.S. dollar on M ay 8, 1972; o f which, total gold stock is $828 million (Treasury gold stock $822 million), reserve position in IM F $33 million, and SD R ’s $155 million. N o t e . —See Table 24 for gold held under earm ark at F.R . Banks for foreign and international accounts. G old under earm ark is not included in the gold stock o f the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions o f dollars) Transactions affecting IM F holdings o f dollars (during period) IM F h o ld in g s o f dollars ( e n d o f D e rio d ) U.S. transactions with IM F Transactions by other countries with IM F Period Payments of subscrip tions in dollars 1946— 1957................................ 1958— 1963................................ 1964— 1966................................ 1967............................................. 1968............................................. 1969............................................. 1970............................................. 1971............................................. 2,063 1,031 776 600 150 i,i5 5 22 6712 * For notesseeoppositepage. Transac tions in foreign curren cies 2 1,640 -8 4 1971—Aug................................. Sept................................. O ct................................... N ov................................. D ec.................................. 1972—Jan................................... Feb.................................. M ar................................. A pr.................................. M ay ................................ Ju n e ................................ July................................. A u g ................................ N et gold sales by IM F 1 150 1,362 862 200 7541 IM F net income in dollars Purchases of d o lla rs 3 R e purchases in dollars Total change Amount Per cent of U.S. quota U.S. reserve position in IM F (end o f period) 4 -4 5 60 45 - 2 ,6 7 0 —1,666 —723 827 2,740 6 775 2,315 1,744 775 3,090 4,834 28 75 94 1,975 1,035 5326 20 20 19 25 —28 -1 1 4 —806 -1 ,3 4 3 —854 -2 4 268 741 40 -9 4 -8 7 0 - 1 ,0 3 4 1,929 1,350 4,740 3,870 2,836 4,765 6,115 92 75 55 71 91 420 1,290 2,324 1,935 585 -3 -3 -3 -2 -3 859 -3 -3 -2 -3 6,126 6,123 6,120 6,118 6,115 91 91 91 91 91 574 577 580 582 585 -2 5 —4 —5 —4 —6 -5 —5 -2 5 —4 195 537 —6 —5 —5 6,113 6,118 6,114 6,309 6,846 6,840 6,835 6,831 91 91 91 94 94 94 94 94 587 582 586 391 428 434 439 A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1972 6. U.S. LIQUID AND NONLIQUID LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Official institutions2 End of period Total Liquid liabili ties to IM F arising from gold trans actions 1 Liquid Total Short term liabili ties re ported by banks in U.S. Liquid liabilities to other foreigners Nonliquid N onm ar M arket ketable able con U.S. vertible Govt. U.S. bonds Treas. and bonds n o tes3, 4 and notes N onm ar Long ketable term noncon liabili vertible ties re U.S. ported Treas. by bonds banks and in notes 5 U.S. Liquid liabili ties to com mercial banks abroad 6 Total Short term liabili ties re ported by banks in U.S. Liquid liabili ties to non mone tary M arket inti, able and re U.S. gional Govt. organi bonds zations 8 and notes3,7 195 7 195 8 195 9 9 15,825 9 16,845 19,428 200 200 500 10,120 7,917 8,665 9,154 ( 10) (10) 966 3,472 3,520 4,678 2,940 2,252 2,430 2,399 (10) ( 10) 541 764 1,047 1,190 1960 i i .......... /20,994 \ 2 1,027 800 800 11,078 11,088 10,212 10,212 866 876 4.818 4.818 2,773 2,780 2.230 2.230 543 550 1,525 1,541 1961 i i ........... (22,853 \22,936 800 800 11.830 11.830 10.940 10.940 890 890 5,404 5,484 2,871 2,873 2,355 2,357 516 516 1.948 1.949 1962 i i .......... /24,268 \24,268 800 800 12,948 12,914 11,997 11,963 751 751 5.346 5.346 3.013 3.013 2.565 2.565 448 448 2,161 2,195 1963 i i .......... J26,433 \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 3.046 351 341 1,960 1,965 1964 i i ........... /29,313 \2 9 ,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 3,377 376 376 1.722 1.722 200 200 29,569 834 15,826 13.066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 i i ........... /3 1 ,145 \3 1,020 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 3.744 528 528 906 905 1967 i i .......... /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 4,120 558 558 691 677 1968 i i .......... /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 4.444 609 465 725 722 1969 i i .......... J45,755 \45,914 1.019 1.019 15,975 15,998 11,054 11,077 346 346 i 2 555 555 i 22,515 2,515 1.505 1.505 23,638 23,645 4,464 4,589 3,939 4,064 525 525 659 663 1970—Dec. n f47,009 \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 4,039 647 565 844 846 1971—J u ly ... A u g .. . S ep t... O c t.. . N o v ... Dec. 13 56,603 63,105 63,943 65,262 65,746 /6 7 ,681 \67,810 544 544 544 544 544 544 544 36,259 43,863 45,331 46,574 48,339 51,209 50,651 26,868 34,015 35,080 36.067 37,271 39.679 39,018 632 870 1,015 1,272 1,747 1.955 1.955 5,452 5,785 6.054 6.055 6.055 6,060 6.093 023 021 021 021 096 371 3.441 284 172 161 159 170 144 144 13,937 12,820 12,435 12,478 11,194 10,262 10,950 4,473 4,382 4,160 4,244 4,214 4,138 4,141 3,894 3,839 3,645 3,734 3,733 3,691 3,694 579 543 515 510 481 447 447 1,390 1,496 1,473 1.422 1,455 1,528 1,524 1972—J a n . '. . F e b .r . . M a r.r . A p r.r . M ay. . June**. July2*.. 69,063 69.995 71,015 72,217 72,110 73.996 77,466 544 51,514 52,799 53,811 54,098 53,579 54,630 59,466 39,581 40.679 40,985 38,728 37,850 38,632 39,827 2,260 2,448 2,882 2,933 3,283 3,557 3,781 6.094 6.094 6.094 8.594 8.594 8.594 12,094 3.441 3.441 3.723 3.723 3.723 3.723 3,647 138 137 127 120 129 124 117 11,171 11,373 11,464 12,433 12,821 13,409 12,071 4,153 4,204 4,194 4,242 4,284 4,486 4,507 3,763 3,812 3,818 3,853 3,889 4,114 4,137 390 392 376 389 395 372 370 1,681 1,619 1,546 1,444 1,426 1,471 1.422 196 5 1 Includes (a) liability on gold deposited by the IM F to mitigate the impact on the U.S. gold stock o f foreign purchases for gold subscriptions to the IM F under quota increases, and (b) U.S. Govt, obligations at cost value and funds awaiting investment obtained from proceeds o f sales o f gold by the IM F to the U nited States to acquire income-earning assets. 2 Includes BIS and European Fund. 3 Derived by applying reported transactions to benchm ark data; breakdown o f transactions by type o f holder estimated 1960-63. Includes securities issued by corporations and other agencies o f the U.S. Govt, which are guaranteed by the United States. 4 Includes nonguaranteed securities o f U.S. Federally-sponsored agen cies, beginning Feb. 1972. 5 Excludes notes issued to foreign official nonreserve agencies. 6 Includes short-term liabilities payable in dollars to commercial banks abroad and short-term liabilities payable in foreign currencies to com m er cial banks abroad and to “ other foreigners.” 7 Includes marketable U.S. Govt, bonds and notes held by commercial banks abroad. 8 Principally the International Bank for Reconstruction and D evelop ment and the Inter-American and Asian Development Banks. From D ec. 1957 through Jan. 1972 includes difference between cost value and face value o f securities in IM F gold investment account. 9 Includes total foreign holdings o f U.S. Govt, bonds and notes, for which breakdown by type o f holder is not available. i o N o t available. 11 D ata on the two lines shown for this date differ because o f 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. 12 Includes $101 million increase in dollar value o f foreign currency liabilities resulting from revaluation of the Germ an mark in Oct. 1969 as follows: liquid, $17 million, and nonliquid, $84 million. 13 D ata on the second line differ from those on first line because cer tain 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 o f foreign countries have been increased in value to reflect m arket exchange rates as of Dec. 31, 1971. N o t e . —Based on Treasury D ept, data and on data reported to the Treasury Dept, by banks and brokers in the U nited States. D ata correspond generally to statistics following in this section, except for the exclusion o f nonmarketable, nonconvertible U.S. Treasury notes issued to foreign official nonreserve agencies, the inclusion o f investments by foreign official reserve agencies in nonguaranteed bonds o f U.S. Federally sponsored agencies and m inor rounding differences. Table excludes IM F “holdings o f dollars,” and holdings o f U.S. Treasury letters o f credit and non-negotiable, non-interest-bearing special U.S. notes held by other in ternational and regional organizations. SEPTEMBER 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 7. U.S. LIQUID AND NONLIQUID LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions o f dollars) Total foreign countries End o f period 18,194 (17,407 \17,340 1969 3 ............................................................................................. / 4 15,975 \ 15,998 1970 3 ............................................................................................. /23,786 \23,775 1968 3 ............................................................................................. Western Europe 1 Latin American republics C anada Asia Africa O ther countries 2 10,321 8,070 8,062 4 7,074 7,074 13,620 13,615 1,310 1,867 1,866 1,624 1,624 2,951 2,951 1,582 1,865 1,865 1,888 1,911 1,681 1,681 4,428 5,043 4,997 4,552 4,552 4,713 4,708 250 259 248 546 546 407 407 303 303 302 291 291 414 413 1971—Ju ly ..................................................................................... A ug..................................................................................... Sept..................................................................................... O ct....................................................................................... N ov..................................................................................... D ec.5 ' ............................................................................... 36,259 43,863 45,331 46,574 48,339 /51,209 150,651 23,048 26,059 26,634 27,154 28,157 30,010 30,134 3,210 3,474 3,462 3,530 3,710 3,980 3,980 1,362 1,398 1,275 1,344 1,340 1,414 1,429 7,566 11,788 12,872 13,477 14,009 14,519 13,823 285 312 296 276 248 415 415 788 832 792 793 875 871 870 1972—J a n . '................................................................................... F e b . '.................................................................................. M a r.' ................................................................................. A p r . '.................................................................................. M ay .................................................................................... June*.................................................................................. July*................................................................................... 51,514 52,799 53,811 54,098 53,579 54,630 59,466 30,266 31,190 31,593 31,363 30,935 31,910 36,390 3,974 3,981 4,052 4,181 4,316 4,486 4,446 1,402 1,330 1,323 1,492 1,476 1,485 1,392 14,430 14,792 15,191 15,249 14,967 14,589 14,757 426 449 457 477 458 533 572 1,016 1,057 1,195 1,336 1,427 1,627 1.909 1 Includes Bank for International Settlements and European Fund. 2 Includes countries in Oceania and Eastern Europe, and Western Euro pean dependencies in Latin America. 3 See note 11 to Table 6. 4 Includes $101 million increase in dollar value o f foreign currency liabilities resulting from revaluation o f the G erman m ark in Oct. 1969. 5 D ata on second line differ from those on the first line because certain accounts previously classified as “ Official institutions” are included in “ Banks” ; a number o f reporting banks are included in the series for the first time; and U.S. Treasury liabilities payable in foreign currencies to official institutions o f foreign countries have been increased in value by $110 million to reflect m arket exchange rates as o f Dec. 31, 1971. N o t e . — D ata represent short- and long-term liabilities to the official institutions o f foreign countries, as reported by banks in the United States; foreign official holdings o f m arketable and nonmarketable U.S. Govt, securities with an original m aturity o f m ore than 1 year, except for non marketable notes issued to foreign official nonreserve agencies; and in vestments by foreign official reserve agencies in nonguaranteed bonds o f U.S. Federally-sponsored agencies. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions o f dollars) To nonm onetary international and regional organizations6 To all foreigners Payable in dollars End o f period Deposits Total i Total Demand U.S. Treasury bills and Time 2 certifi cates 3 Other short term liab.4 Payable in foreign cur rencies IM F gold invest m ent5 D eposits Total Demand U.S. Treasury bills and Tim e2 certifi cates Other short term liab .4 1969................................ 40,199 19707............................... /4 1 ,719 141,761 39,770 41,351 41,393 20,460 15,785 15,795 6,959 5,924 5,961 5,015 14,123 14,123 7,336 5,519 5,514 429 368 368 800 400 400 613 820 820 62 69 69 83 159 159 244 211 211 223 381 381 1971—July..................... 46,346 Aug..................... 52,416 Sept..................... 52,878 Oct...................... 53,946 Nov..................... 53,898 D ec.8 ' ............... /55,404 \55,430 45,693 51,766 52,481 53,566 53,527 55,018 55,038 10,274 9,294 10,605 11,860 10,883 10,399 6,460 4,955 5,026 5,054 5,088 5,219 5,209 4,217 23,439 30,198 29,772 29,758 30,723 33,025 33,025 7,025 7,248 7,050 6,860 6,702 6,385 11,336 653 650 397 380 371 386 392 400 400 400 400 400 400 400 1,247 1,342 1,318 1,267 1,300 1,372 1,368 79 61 92 78 69 73 73 224 202 212 177 205 192 192 170 269 146 168 157 210 210 774 810 867 843 870 896 892 56,439 57,326 57,656 56,289 55,825 57,465 57,295 56,007 56,853 57,140 55,795 55,326 56,948 56,816 6,157 6,019 5,991 6,460 6,570 7,216 7,338 4,220 4,331 4,428 4,499 4,650 4,827 4,743 33,902 34,490 34,929 32,324 31,498 31,871 32,878 11,728 12,013 11,792 12,512 12,608 13,034 11,857 432 473 516 494 499 517 479 400 1,524 1,462 1,389 1,275 1,265 1,310 1,260 86 85 88 87 84 85 101 201 164 186 195 183 235 259 338 295 275 177 198 212 142 899 918 839 817 800 779 758 1972—J a n . '................... F e b .' ................... M a r.' ................. A p r .'.................. M ay.................... June*.................. July*................... For notes seethe following page. A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1972 SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) To residents o f foreign countries To official institutions? Payable in dollars End o f period T otal Dem and T im e2 U.S. Treasury bills and certifi cates3 Deposits Payable in dollars O ther short term liab.4 Payable in foreign cur rencies Total D eposits D em and Tim e2 U.S. Treasury bills and certifi cates 3 O ther short term liab.4 Payable in foreign currencies 1969................. 19707............... 38,786 /40,499 \40,541 20,397 15,716 15,726 6,876 5,765 5,802 3,971 13.511 13.511 7,113 5,138 5,133 429 368 368 11,077 19.333 19.333 1,930 1.652 1.652 2,942 2.554 2.554 3,844 13.367 13.367 2,159 1,612 1,612 202 148 148 1971*—J u ly .. . . A u g ... . S e p t.... O c t... . N o v .... Dec.* r 44,699 50,674 51,160 52,279 52,198 53,632 53,662 10,195 9,233 10,513 11,781 10,814 10,326 6,387 4,732 4,823 4,843 4,911 5,014 5,017 4,025 22,869 29,529 29,226 29,190 30,166 32.415 32.415 6,249 6,438 6,182 6,016 5,831 5,489 10,443 653 650 397 380 371 386 392 26,868 34,015 35,080 36,067 37,271 39.679 39,018 1,469 1,264 1,450 1,231 1,263 1,620 1,327 2,307 2,371 2,392 2.465 2.465 2,504 2,039 19,605 26,674 27,855 28,982 30,071 32.311 32.311 3,067 3,285 3,225 3,231 3,314 3,086 3,176 420 421 158 158 158 158 165 1972—J a n .r . .. F e b .r . . M a r.r . . A p r.r . . M ay. . . Ju n e* .. Ju ly * ... 54,515 55,864 56,267 55,014 54,560 56,155 56,035 6,071 5,934 5,903 6,373 6,486 7,131 7,237 4,020 4,167 4,242 4,304 4,468 4,592 4,484 33,164 34,195 34,654 32,147 31,300 31,659 32,736 10,828 11,095 10,952 11,696 11,808 12,256 11,100 432 473 516 494 499 517 479 39,581 40.679 40,985 38,728 37,850 38,632 39,827 1,185 1,099 1,128 1,246 1,224 1,540 1,521 2,024 2,119 2,148 2,270 2,379 2,469 2,377 33,045 34,092 34,548 32,047 31,209 31,573 32,655 3,161 3,202 2,994 2,998 2,871 2,883 3,104 166 167 167 167 167 167 170 To b an k s1° To other foreigners Payable in dollars End o f period T otal Deposits D em and Tim e2 U.S. Treasury bills and certifi cates Total O ther short term liab.4 D eposits Total D em and Tim e2 U.S. Treasury bills and certifi cates To banks and other . foreigners: Payable in foreign O ther cur short rencies term liab.4 1969............. 19707 ......... 27.709 /2 1 ,166 \2 1 ,208 23,419 16,917 16,949 16,756 12,376 12,385 1,999 1,326 1,354 20 14 14 4,644 3,202 3,197 4,064 4,029 4,039 1,711 1,688 1,688 1,935 1,886 1,895 107 131 131 312 325 325 226 220 220 1971—J u ly .. Aug.. Sept.. Oct.. . N ov.. D ec.8 17,831 16,659 16,080 16,212 14,927 fl 3,953 \14,644 13,704 12,590 12,196 12,256 10,981 10,034 10,722 7,030 6,284 7,486 8,845 7,871 7,047 3,400 600 665 739 786 879 850 320 3,168 2,769 1,286 120 9 8 8 2,905 2,872 2,686 2,504 2,223 2,130 6,995 3,894 3,839 3,645 3,734 3,733 3,691 3,694 1,696 1,684 1,577 1,705 1,680 1,660 1,660 1,825 1,787 1,712 1,660 1,670 1,663 1,666 96 87 85 89 87 96 96 277 280 272 281 296 274 271 233 230 239 222 213 228 228 1972—J a n .r . F e b .r M ar.r A pr.. M ay. June* July*. 14,934 15,185 15,282 16,286 16.710 17,523 16,208 10,904 11,067 11,115 12,106 12,488 13,059 11,762 3,183 3,121 3,093 3,372 3,569 3,791 3,877 335 349 359 352 307 310 286 4 4 4 4 3 5 5 7,382 7.593 7,658 8,379 8,609 8,953 7.594 3,763 3,812 3,818 3,853 3,889 4,114 4,137 1,703 1,714 1,682 1,756 1,693 1,799 1,839 1,660 1,699 1,735 1,682 1,781 1,813 1,820 116 99 102 96 88 81 75 285 299 299 318 328 421 402 267 306 349 327 333 350 309 1 D ata exclude “holdings o f dollars” o f the International M onetary Fund. 2 Excludes negotiable time certificates o f deposit, which are included in “ O ther.” 3 Includes nonmarketable certificates o f indebtedness issued to official institutions o f foreign countries. 4 Principally bankers’ acceptances, commercial paper, and negotiable time certificates o f deposit. See also note 8(a). 5 U.S. Treasury bills and certificates obtained from proceeds o f sales of gold by the IM F to the United States to acquire income-earning assets. U pon term ination o f investment, the same quantity o f gold was reac quired by the IM F. 6 Principally the International Bank for Reconstruction and Develop ment and the Inter-American Development Bank. Includes difference between cost value and face value o f securities in IM F gold investment account. 7 D ata on the two lines shown for this date differ because o f 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 D ata on second line differ from those on first line because (a) those liabilities o f U.S. banks to their foreign branches and those liabilities o f U.S. agencies and branches o f 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 num ber o f reporting banks are included in the series for the first time. 9Foreign central banks and foreign central govts, and their agencies, and Bank for International Settlements and European Fund. i o Excludes central banks, which are included in “ Official institutions.” N o t e . —“Short term” refers to obligations payable on demand or having an original m aturity o f 1 year or less. For data on long-term liabilities reported by banks, see Table 10. D ata exclude the “holdings o f dollars” o f the International M onetary F u n d ; these obligations to the IM F consti tute contingent liabilities, since they represent essentially the am ount o f dollars available for drawings from the IM F by other member countries. D ata exclude also U.S. Treasury letters o f credit and non-negotiable, noninterest-bearing special U.S. notes held by the Inter-American Develop ment Bank and the International Development Association. SEPTEMBER 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 81 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End o f period. Amounts outstanding; in millions o f dollars) 1970 1971 1972 Area and country Nov. Switzerland................................................... T u rk ey ........................................................... U nited K ingdom ......................................... Yugoslavia..................................................... O ther W estern E urope2............................ U.S.S.R.......................................................... O ther Eastern E u ro p e................................ 185 597 189 117 2,267 7,520 184 1,330 762 324 274 198 503 1,948 46 5,504 37 594 15 54 246 736 168 134 2,858 5,733 175 1,953 291 714 308 185 757 3,265 67 7,711 40 1,401 8 67 254 701 168 160 3,150 6,596 170 1,888 271 685 303 203 791 3,248 68 7,374 34 1,369 14 53 Europe: A ustria........................................................... Belgium-Luxembourg................................. D en m ark ....................................................... Finland........................................................... F ran ce............................................................ G erm any....................................................... G reece............................................................ Ita ly ................................................................ N etherlands................................................... N orw ay.......................................................... P ortugal......................................................... S pain............................................................... J a n .r F e b .r M a r.r A p r.r May June* July* 254 701 168 160 3,150 6,596 170 1,888 270 685 303 203 792 3,249 68 7,379 34 1,391 14 53 261 728 177 156 3,234 6,972 167 1,700 306 702 299 187 803 3,256 36 7,908 35 1,367 13 54 252 779 179 150 3,311 7,724 164 1,693 424 675 282 177 871 3,099 34 7,600 40 1,438 11 46 257 888 191 140 3,103 7,670 147 1,572 823 674 267 183 964 2,935 42 8,089 54 1,416 9 58 276 866 218 151 3,043 5,482 163 1,627 878 655 279 219 981 2,942 36 7,954 94 1,391 9 56 283 864 203 131 3,027 5,500 159 1,572 861 669 284 206 1,010 2,709 40 7,954 88 1,388 13 58 254 961 215 148 3,513 6,483 179 1,373 847 654 269 231 1,044 2,626 44 7,913 90 1,367 10 68 261 1,159 216 176 4,324 6,601 168 1,423 1,488 769 290 222 1,036 3,623 55 4,941 87 1,399 18 58 D ec.1 r Dec. T o tal........ .............................................. 22,648 26,816 27,503 27,530 28,361 28,951 29,483 27,321 27,021 28,289 28,314 C anada............................................................... 4,056 3,590 3,441 3,441 3,593 3,574 3,486 3,722 4,146 3,966 3,727 Latin America: A rgentina....................................................... B razil.............................................................. Chile............................................................... C olom bia....................................................... C uba............................................................... M exico........................................................... P a n a m a ......................................................... P e ru ................................................................ Uruguay......................................................... Venezuela....................................................... O ther Latin American republics.............. Bahamas and B erm uda.............................. Netherlands Antilles and Surinam .......... Other Latin A m erica.................................. 539 346 266 247 7 821 147 225 118 735 620 745 98 39 437 383 189 179 6 706 150 163 108 874 615 376 85 46 441 342 191 188 6 709 154 164 108 963 656 657 87 36 441 342 191 188 6 715 154 164 108 963 655 656 87 37 435 376 180 185 6 758 158 164 108 870 645 313 97 43 420 406 146 176 6 748 156 160 111 843 685 278 90 46 541 449 137 163 6 659 156 174 124 740 649 307 81 37 507 543 132 184 7 668 155 174 118 851 695 444 87 29 465 576 134 190 6 761 185 167 122 873 661 440 91 43 459 628 136 190 7 733 154 179 117 919 681 484 94 40 458 619 136 196 6 786 165 178 121 831 671 385 88 47 T o tal....................................................... 4,952 4,317 4,702 4,708 4,337 4,272 4,223 4,593 4,714 4,820 4,686 Asia: China M ainland.......................................... H ong K o n g ................................................... In d ia............................................................... Indonesia....................................................... Israel............................................................... Ja p a n .............................................................. K o rea............................................................. Philippines..................................................... Taiw an........................................................... Thailand......................................................... O th e r.............................................................. 33 258 302 73 135 5,150 199 285 275 508 717 34 336 142 65 133 13,919 216 304 248 107 579 39 312 89 63 150 14,294 201 304 258 126 595 39 312 89 63 150 14,295 196 306 258 126 595 39 304 114 54 133 14,179 224 271 280 121 774 38 335 118 71 143 14,950 220 267 291 116 708 39 306 116 90 143 14,808 204 268 320 120 717 39 299 102 89 145 14,902 178 294 338 170 714 38 328 104 87 148 14,017 196 337 365 174 729 39 311 105 113 139 14,095 198 346 383 177 706 39 341 120 98 128 13,963 205 345 426 120 733 7,936 16,082 16,432 16,429 16,495 17,257 17,131 17,267 16,525 16,612 16,518 Africa: Congo (K inshasa)........................................ M orocco......................................................... South A frica................................................. U.A .R. (Egypt)............................................ O th e r.............................................................. 14 11 83 17 395 12 9 74 13 314 12 9 78 24 474 12 9 78 24 474 12 10 53 14 510 13 9 73 13 538 22 9 70 13 526 14 11 79 15 542 16 8 70 18 522 18 11 76 19 608 27 11 92 17 620 T o tal....................................................... 521 422 597 597 599 646 640 661 635 731 768 O ther countries: A ustralia........................................................ All other........................................................ 389 39 919 51 916 42 916 42 1,087 42 1,124 41 1,257 47 1,405 43 1,482 39 1,692 45 1,977 45 T o tal....................................................... 428 970 957 957 1,129 1,165 1,304 1,448 1,520 1,737 2,022 Total foreign co u n tries.................................. 40,541 52,198 53,632 53,662 54,515 55,864 56,267 55,014 54,560 56,155 56,035 International and regional: International 3............................................... Latin American regional............................ O ther regional4............................................ 975 131 114 1,269 287 144 1,332 298 142 1,327 298 143 1,475 306 142 1,000 316 146 941 301 147 808 333 134 802 329 134 817 346 147 792 298 170 T otal....................................................... 1,220 1,700 1,772 1,768 1,924 1,462 1,389 1,275 1,265 1,310 1,260 G rand to tal........................................... 41,761 53,898 55,404 55,430 56,439 57,326 57,656 56,289 55,825 57,465 57,295 For notesseethe followingpage. A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1972 SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY— Continued (End o f period. Amounts outstanding; in millions o f dollars) Supplementary data 5 1970 Area and country 1971 1972 Apr. Dec. A pr. Dec. A pr. Other Western Europe: Cyprus....................................... Iceland...................................... Ireland, Rep. o f........................ 15 10 32 10 10 41 7 10 29 2 11 16 2 9 15 Other Latin American republics: Bolivia....................................... Costa Rica................................ Dominican Republic................ Ecuador..................................... El Salvador............................... Guatemala................................. Haiti.......................................... Honduras.................................. Jamaica..................................... Nicaragua................................. Paraguay................................... Trinidad & Tobago.................. 76 43 96 72 79 110 19 29 17 76 17 11 69 41 99 79 75 100 16 34 19 59 16 10 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 Other Latin America: British West Indies................. . 38 33 38 32 23 Other Asia: Afghanistan............................. Burma...................................... . Cambodia................................ Ceylon..................................... . Iran.......................................... . Iraq.......................................... 15 5 1 4 41 6 26 4 2 4 32 11 15 3 2 4 50 7 19 10 5 4 59 10 17 5 2 6 88 ( 6) 1 D ata in the two columns shown for this date differ because o f changes in reporting coverage. Figures in the first column are comparable in cov erage with those shown for the preceding date; figures in the second column are com parable with those shown for the following date. 2 Includes Bank for International Settlements and European Fund. 3 D ata exclude “ holdings o f dollars” o f the International M onetary F und b u t include IM F gold investment until Feb. 1972, when investment was terminated. 1970 Area and country 1971 1972 A pr. Dec. A pr. Dec. A pr. Other Asia—Cont.: Jordan......................................... Kuwait........................................ Laos............................................ Lebanon..................................... Malaysia..................................... Pakistan...................................... Ryukyu Islands (incl. Okinawa) Saudi Arabia.............................. Singapore................................... Syria............................................ Vietnam...................................... 30 66 4 82 48 34 26 166 25 6 91 14 54 5 54 22 38 18 106 57 7 179 3 36 2 60 29 27 39 41 43 3 161 2 20 3 46 23 33 29 79 35 4 159 2 16 3 60 25 58 ( 6) 80 45 6 185 Other Africa: Algeria........................................ Ethiopia (incl. Eritrea).............. Ghana......................................... Kenya......................................... Liberia........................................ Libya.......................................... Nigeria........................................ Southern Rhodesia.................... Sudan.......................................... Tanzania..................................... Tunisia........................................ Uganda....................................... Zambia....................................... 13 33 7 47 41 430 11 2 1 18 7 7 38 17 19 8 38 22 195 17 1 1 9 7 8 10 13 12 6 13 21 91 25 2 1 10 6 5 14 23 11 8 9 23 274 46 2 1 6 9 3 13 31 29 11 14 25 (<) (‘> All other: New Zealand.............................. 18 25 22 23 27 (7 7 («) (*) 4 Asian, African, and European regional organizations, except BIS and European Fund, which are included in “Europe.” 5 Represent a partial breakdow n o f the am ounts shown in the “ other” categories (except “ O ther Eastern Europe” ). 6 N ot available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions o f dollars) C ountry or area To foreign countries E nd o f period Total To inti. and regional Total Official institu tions O ther B anks1 foreign ers G er many United K ing dom O ther Europe T otal L atin America Japan O ther Asia All other coun tries 196 8 196 9 197 0 3,166 2,490 1,703 777 889 789 2,389 1,601 914 2,341 1,505 695 56 166 40 40 53 2 * 110 46 42 16 7 26 541 239 152 658 655 385 1,093 582 137 80 70 62 1971—J u ly .. A ug.. S ep t.. O ct.r . N o v .. D e c.r 1,024 895 885 942 917 902 501 480 480 490 452 446 524 415 405 452 465 457 284 172 161 159 170 144 189 190 189 236 237 257 51 53 55 57 59 56 164 164 164 164 165 164 19 19 19 44 45 52 25 25 24 24 25 30 101 80 76 99 115 111 83 12 12 12 100 101 99 101 96 87 31 14 9 7 10 9 1972—J a n .'. F e b .r . M a r.r A p r.r M ay. June® July?. 989 1,026 1,088 1,106 1,154 1,168 1,157 540 558 632 654 689 695 690 449 468 456 453 465 473 467 138 137 127 120 129 124 117 254 252 253 253 253 267 269 58 79 78 80 83 82 81 164 164 165 165 165 165 165 50 67 67 67 66 66 68 30 31 30 32 35 34 33 107 108 103 105 119 135 136 83 83 72 66 60 58 47 14 14 19 18 20 14 18 1Excludescentral banks, whichareincludedwith“Official institutions.” SEPTEMBER 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. GOVERNMENT BONDS AND NOTES (End of period; in millions of dollars) 1971 July Aug. Sept. 1972 Nov. Oct. Dec. Jan. Feb. M ar. Apr. M ay June* July* Europe: Belgium-Luxembourg....................... Switzerland.......................................... United K ingdom ................................ O ther W estern E urope..................... Eastern E u ro p e.................................. 6 29 496 25 6 6 29 460 25 6 6 29 432 49 5 6 29 427 71 5 6 60 362 82 5 6 60 323 85 5 6 53 279 95 5 6 53 283 95 5 6 53 268 95 5 6 52 280 95 5 6 52 288 95 5 6 52 264 96 5 6 49 265 98 5 T o ta l............................................ 562 525 521 538 516 480 438 441 426 438 445 424 422 C an a d a ..................................................... 175 175 175 175 179 181 179 179 178 179 166 313 313 Latin America: Latin American republics................. O ther Latin A m erica........................ 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 1 6 T o tal............................................ 7 7 7 7 7 7 7 7 7 7 7 7 7 Asia: In d ia ..................................................... Jap an .................................................... O ther A sia.......................................... 20 395 10 20 633 10 20 755 10 20 1,009 10 20 1,488 10 1,717 10 2,007 10 2,146 10 2,391 10 2,415 10 2,777 10 2,901 10 3,125 10 T o ta l............................................. 425 663 784 1,038 1,518 1,727 2,017 2,156 2,401 2,425 2,787 2,912 3,136 A frica....................................................... 43 43 43 25 8 8 8 8 8 8 8 8 8 All other................................................... * * * * * * * * * * * * * T otal foreign countries......................... 1,211 1,413 1,530 1,782 2,228 2,402 2,650 2,791 3,020 3,057 3,413 3,664 3,886 International and regional: International....................................... Latin American regional................. 115 28 126 28 126 29 126 29 126 30 126 30 126 31 126 31 126 32 136 33 136 25 136 26 136 27 143 154 155 155 156 156 157 157 158 168 161 161 162 G rand to ta l................................ 1,354 1,567 1,685 1,937 2,383 2,558 2,807 2,948 3,177 3,226 3,574 3,825 4,048 N o t e . —D ata represent estimated official and private holdings o f m ar ketable U.S. Govt, securities with an original m aturity o f more than 1 year, and are based on benchm ark surveys o f holdings and regular monthly reports o f securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions o f dollars or dollar equivalent) Payable in dollars End o f period Payable in foreign currencies Total Total Bel gium C an ada 1 Ger many Total Ger m any 3 Italy Switz erland 100 100 4 1,750 1,083 4 1,084 542 125 541 541 Tai wan Thai land 135 25 20 20 Italy 2 Korea 196 9 197 0 43,181 3,563 1,431 2,480 32 32 1,129 2.289 1971—Aug. Sept. Oct.. Nov. Dec.. 8,924 9,193 9,195 9,271 5 9,657 7.479 7.479 7.479 7,554 7.829 32 32 32 32 32 2.289 2.289 2.289 2,365 2.640 5.000 5.000 5.000 5.000 5.000 23 23 23 22 22 20 20 20 20 20 100 100 100 100 100 1,444 1,714 1.716 1.716 5 1,827 542 542 542 542 612 902 1,172 1.174 1.174 1.215 1972—Jan.. Feb.. M ar. Apr. M ay June July. Aug. 9.658 9.658 9,940 12.440 12.441 12.441 15.864 15.864 7.829 7.829 8,188 10,688 10,688 10,688 14.188 14.188 32 32 32 32 32 32 32 32 2.640 2.640 2.840 2.840 2.840 2.840 2.840 2.840 5.000 5.000 5,158 7.658 7.658 7.658 11.158 11.158 22 22 22 22 22 22 22 22 20 20 20 20 20 20 20 20 100 100 100 100 100 100 100 100 1,828 1,828 1.752 1.752 1.753 1.753 1.676 1.676 612 612 536 536 536 536 459 459 1.216 1,216 1,216 1,216 1.217 1.217 1.217 1.217 1 Includes bonds issued in 1964 to the G overnment o f Canada in connec tion with transactions under the Columbia River treaty. Amounts out standing end o f 1967 through Oct. 1968, $114 m illion; Nov. 1968 through Sept. 1969, $84 m illion; Oct. 1969 through Sept. 1970, $54 million; and Oct. 1970 through Oct. 1971, $24 million. 2 Bonds issued to the G overnment o f Italy in connection with mili tary purchases in the United States. 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 million equivalent were issued to a group of G erm an commercial banks in June 1968. The dollar value o f these notes was increased by $10 million in Oct. 1969 and by $18 million as o f Dec. 31, 1971. 4 Includes an increase in dollar value o f $84 million resulting from revaluation of the German m ark in Oct. 1969. 5 Includes $106 million increase in dollar value o f foreign currency obligations revalued to reflect market exchange rates as o f Dec. 31, 1971. A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1972 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End o f period. Amounts outstanding; in millions o f dollars) 1970 1971 1972 Area and country Dec. Europe: Belgium -Luxem bourg................................ Finland........................................................... G erm any....................................................... G reece............................................................ Ita ly ................................................................ N etherlands............................... ................... N orw ay.......................................................... Portugal...................................... .................. Sweden........................................................... Sw itzerland................................................... T urkey........................................................... United K ingdom ......................................... Yugoslavia............................... ..................... U .S.S.R..................................... ..................... T o tal....................................................... Nov. D ec.1 r F e b .r J a n .r M ar. M ay Apr. June* July* 6 50 40 66 113 186 26 101 61 54 11 52 97 100 9 379 35 13 3 45 10 63 48 116 182 227 23 139 90 66 12 68 120 143 3 536 22 11 10 33 11 57 49 135 267 235 30 159 105 67 12 70 118 145 3 563 19 12 28 37 11 57 49 135 268 235 30 161 105 67 12 70 118 145 3 563 19 12 28 37 8 71 50 137 311 200 30 166 92 72 14 83 125 147 4 526 20 13 33 44 11 102 54 139 344 252 25 182 102 71 14 88 125 181 8 562 15 16 37 48 11 78 55 138 342 258 29 230 117 73 14 105 130 164 3 559 25 17 47 51 12 66 52 137 273 239 28 213 105 72 13 135 128 138 3 537 24 17 70 42 13 72 54 132 295 231 30 231 101 65 24 149 132 193 3 539 27 19 65 43 15 73 52 126 321 315 24 201 117 64 21 141 95 147 3 564 25 24 57 43 16 73 50 124 311 286 25 203 107 71 25 156 114 137 3 756 23 23 62 44 1,449 1,923 2,122 2,124 2,146 2,374 2,445 2,303 2,417 2,429 2,608 1,530 1,530 1,508 1,701 1,942 1,831 1,697 1,737 2,088 1,043 1,138 Latin America: A rgentina....................................................... B razil.............................................................. Chile............................................................... Colom bia....................................................... C uba............................................................... Mexico........................................................... P an am a.......................................................... P e ru ................................................................ U ruguay......................................................... Venezuela....................................................... Other Latin American republics.............. Bahamas and B erm uda.............................. Netherlands Antilles and Surinam .......... O ther Latin A m erica.................................. 326 325 200 284 13 909 112 147 63 283 342 196 19 22 316 410 142 378 13 839 109 201 39 249 337 264 20 23 305 429 139 380 13 936 125 176 41 268 374 262 18 25 305 435 139 380 13 936 125 176 41 268 374 262 18 26 310 447 126 375 13 1,004 110 163 41 271 366 253 20 23 306 465 122 390 13 977 106 159 41 271 364 288 23 21 316 482 106 376 13 1,006 116 155 41 278 352 300 16 20 304 511 108 379 13 1,095 110 163 38 311 376 278 15 27 316 544 94 394 13 1,037 121 177 38 299 359 265 16 24 325 551 78 404 13 1,152 125 160 35 314 366 314 16 25 323 569 77 395 13 1,173 133 157 38 333 357 375 16 22 T o tal....................................................... 3,239 3,340 3,490 3,496 3,521 3,547 3,577 3,727 3,697 3,878 3,980 Ja p a n .............................................................. K o rea............................................................. Philippines..................................................... Taiw an........................................................... Thailand......................... ............................... O th e r.............................................................. 2 39 13 56 120 3,890 178 137 95 109 167 1 71 17 40 132 3,889 329 129 94 148 226 1 68 21 41 129 4,279 348 136 109 164 252 1 70 21 41 129 4,280 348 138 109 173 252 1 61 22 37 124 4,131 330 141 123 176 237 1 81 20 35 106 4,059 394 145 154 200 213 2 90 17 37 98 4,116 403 149 156 201 232 2 99 18 39 84 3,980 399 137 172 203 210 2 107 16 49 81 3,685 377 138 180 193 199 2 111 16 45 78 3,577 346 138 182 188 221 2 100 14 44 101 3,542 344 143 178 181 245 Asia: China M ainland.......................................... H ong K ong................................................... In d ia ............................................................... Indonesia....................................................... T o tal....................................................... 4,807 5,075 5,548 5,561 5,382 5,407 5,502 5,343 5,028 4,903 4,893 Africa: Congo (Kinshasa)........................................ M orocco........................................................ South A frica................................................. U.A .R. (Egypt)............................................ O th e r.............................................................. 4 6 77 13 79 21 4 152 9 90 21 4 156 10 99 21 4 158 10 99 21 4 163 11 91 14 4 166 13 101 13 3 147 11 104 15 4 152 10 120 18 4 161 11 129 14 4 160 16 123 12 4 149 14 121 T o tal....................................................... 180 277 291 292 290 299 278 301 324 318 300 O ther countries: A ustralia........................................................ All other................................. ....................... 64 16 140 24 158 28 158 28 161 32 158 29 165 35 169 34 175 31 176 34 210 38 T otal....................................................... 80 164 186 186 193 188 200 203 206 211 248 Total foreign c o u n trie s................................. 10,798 11,917 13,167 13,189 13,039 13,515 13,944 13,709 13,370 13,475 14,117 International and regional............................. 3 4 3 3 3 5 4 3 7 4 3 G rand to ta l................... ....................... 10,802 11,920 13,170 13,192 13,043 13,520 13,948 13,712 13,376 13,479 14,120 1 D ata in the two columns shown for this date differ because o f changes on demand or with a contractual maturity o f not more than 1 year: loans in reporting coverage. Figures in the first column are comparable in made to, and acceptances made for, foreigners; drafts drawn against coverage with those shown for the preceding date; figures in the second foreigners, where collection is being made by banks and bankers for column are comparable with those shown for the following date. their own account or for account o f their customers in the United States; and foreign currency balances held abroad by banks and bankers and N ote.—Short-term claims are principally the following items payable their customers in the United States. Excludes foreign currencies held by U.S. monetary authorities. SEPTEMBER 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions o f dollars) Payable in dollars Payable in foreign currencies Loans to— End o f period T otal Official institu tions B anks1 Others Collec tions o ut stand ing T otal Total Accept ances made for acct. o f for eigners Other Total Foreign govt, se Deposits curities, with for coml. eigners and fi nance paper O ther 9,680 10,802 9,165 10,192 3,278 3,051 262 119 1,943 1,720 1,073 1,212 2,015 2,389 3,202 3,985 670 766 516 610 352 352 89 92 74 166 1971—July..................... 10,953 A ug..................... 12,441 Sept..................... 11,870 O ct....................... 11,289 N o v .r ................. 11,920 D ec.2 r ............... /13,170 \1 3 ,192 10,423 11,810 11,225 10,668 11,276 12,328 12,351 3,559 4,290 3,831 3,516 4,024 4,503 3,970 200 191 188 135 169 223 224 2,051 2,682 2,236 2,056 2,429 2,613 2,080 1,308 1,417 1,406 1,325 1,426 1,667 1,666 2,364 2,357 2,372 2,307 2,306 2,475 2,475 3,678 4,157 4,049 3,864 3,897 4,243 4,254 821 1,006 974 982 1,050 1,107 1,652 531 631 645 620 644 842 841 374 495 453 406 457 549 548 62 46 104 111 89 119 119 95 90 88 103 99 174 174 1972—J a n . '................... F e b .'................... M ar..................... A pr...................... M ay .................... June?.................. July®................... 12,298 12,733 13,048 12,991 12,616 12,721 13,308 3,875 4,027 4,179 4,455 4,608 4,770 5,068 209 198 167 163 169 163 162 2,053 2,055 2,141 2,354 2,516 2,586 2,796 1,613 1,774 1,870 1,939 1,922 2,021 2,111 2,473 2,430 2,476 2,469 2,541 2,650 2,703 4,234 4,394 4,410 4,252 3,837 3,489 3,227 1,716 1,882 1,983 1,815 1,631 1,812 2,310 744 787 900 721 760 758 811 501 562 579 498 530 477 509 139 127 183 112 112 148 187 104 98 138 111 118 133 115 1969................................. 1970................................. 13,043 13,520 13,948 13,712 13,376 13,479 14,120 1 Excludes central banks, which are included with “ Official institutions.” 2 D ata on second line differ from those on first line because (a) those claims o f U.S. banks on their foreign branches and those claims o f U.S. agencies and branches o f foreign banks on their head offices and foreign branches, which were previously reported as “ Loans” , are included in “Other short-term claims” ; and (b) a num ber o f reporting banks are included in the series for the first time. 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions o f dollars) Type Country or area Payable in dollars End o f period Total Loans to— Total Official institu tions Other B anks1 foreign ers Other long term claims Payable in foreign curren cies United K ing dom O ther Europe Latin C anada America Japan O ther Asia All other countries 1969................... 1970................... 3,250 3,075 2,806 2,698 502 504 209 236 2,096 1,958 426 352 18 25 67 71 411 411 408 312 1,329 1,325 88 115 568 548 378 292 1971—July. . . . A u g .r .. Sept.r .. O c t . '. . . N o v .' . . D e c . '. . . 3,261 3,393 3,440 3,494 3,537 3,661 2,959 3,090 3,121 3,181 3,237 3,338 489 523 524 542 567 575 253 265 269 266 282 315 2,217 2,302 2,328 2,373 2,389 2,448 282 276 291 286 276 300 20 28 28 26 23 22 118 120 126 127 138 130 530 546 570 580 586 593 266 259 264 261 244 228 1,277 1,337 1,351 1,323 1,357 1,456 219 221 225 240 240 246 515 539 536 565 564 582 337 370 367 398 407 426 1972—J a n . '. . . Feb........ M a r.. . . A pr........ M a y .. . . Ju n e* ... July®. . . 3,688 3,739 3,838 3,940 4,046 4,193 4,307 3,369 3,423 3,528 3,619 3,724 3,869 3,993 575 595 644 654 674 712 747 311 324 329 335 335 369 372 2,483 2,503 2,555 2,630 2,715 2,788 2,875 295 292 284 295 291 293 282 24 24 26 27 30 30 32 132 124 131 143 140 139 146 581 592 605 625 636 631 672 256 254 233 230 251 284 283 1,457 1,475 1,496 1,540 1,582 1,642 1,721 241 241 278 290 281 311 295 594 624 651 672 712 739 758 427 430 444 440 444 446 432 1 Excludes central banks, which are included with “Official institutions.” A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1972 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions o f dollars) U.S. corporate securities 2 M arketable U.S. Govt, bonds and notes 1 Foreign bonds Foreign stocks N et purchases o r sales Period Total Intl. and regional Pur chases Foreign Total Official Sales N et pur Pur chases or chases sales Sales 1,582 1,415 1,907 1,490 1,687 1,044 2,441 2,575 1,797 -9 5 1 -8 8 8 -7 5 4 1,033 1,385 1,504 998 1,434 1,388 35 -4 9 117 N et pur Pur chases or chases sales Sales N et pur chases or sales O ther 123 11,426 9,844 - 1 1 9 14,573 13,158 - 7 7 11,054 9,147 56 1,672 1,490 -2 5 130 6 82 1,542 1,484 -4 1 1,661 1,561 O ct.r ................. N ov. r ................ D ec.................... 260 212 118 252 446 175 1 11 1 * 1 1 259 202 117 252 445 175 253 238 145 257 474 209 6 -3 6 -2 8 -5 -2 9 -3 4 1,042 1,185 1,045 965 940 1,673 1,006 1,021 796 974 845 1,207 36 163 249 -9 94 465 112 110 131 163 137 185 138 313 138 245 148 175 -2 7 -2 0 3 -7 -8 2 -1 1 10 102 124 118 157 137 195 144 102 96 104 76 154 -4 2 22 22 52 61 41 1972—Jan ..................... Feb..................... M ar.................... A pr.................... M ay................... June*................. July*................. 248 141 230 48 348 251 223 1 247 141 229 38 356 251 222 305 138 245 25 350 274 224 -5 8 3 -1 6 13 6 -2 3 -2 1,580 1,611 2,025 1,703 1,350 1,652 1,134 1,277 1,312 1,527 1,420 1,111 1,407 1,093 302 299 498 283 239 245 41 126 159 181 161 124 103 188 409 241 248 157 310 332 100 -2 8 3 -8 2 -6 7 4 -1 8 6 -2 2 9 88 191 200 290 197 245 225 157 170 199 269 181 138 269 162 21 1 20 16 107 -4 3 -5 1970............................... 1971 T............................. 1972 Jan.-July*........ 1971 Ju ly ................... Aug.................... 1 11 -8 1 1 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to official institutions o f foreign countries; see Table 12. 2 Includes State and local govt, securities, and securities o f U.S. Govt, agencies and corporations th at are not guaranteed by the U nited States. Also includes issues o f new debt securities sold abroad by U.S. corpora tions organized to finance direct investments abroad. N o t e . —Statistics include transactions o f international and regional organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions o f dollars) Period G er many Total N ether Switzer United land K ingdom lands Other Europe Total Europe Latin Canada Am erica Asia Africa Other Intl. & countries regional 1970....................... 1971r..................... 1972—Jan.-July* 626 731 784 58 87 78 195 131 -7 9 128 219 153 110 168 320 -3 3 -4 9 209 24 71 23 482 627 704 -9 -9 3 -9 4 47 37 -51 85 108 178 1971—Jul y Aug............ Sept........... O c t.r ......... N ov........... D ec............ -3 78 155 -4 8 * 483 12 10 24 8 9 66 -6 7 33 -4 -9 51 15 38 9 2 22 76 -1 0 24 38 4 1 102 6 -3 3 11 -3 0 -1 68 -1 3 -7 17 * 20 32 4 38 132 -2 1 42 394 -2 4 11 10 -2 1 -1 4 2 2 12 7 -1 7 -38 49 15 16 4 5 6 39 -2 * 2 7 4 -2 269 153 177 78 55 31 21 36 13 19 -9 19 8 -6 29 4 -1 2 -2 2 -1 4 -2 0 -4 4 60 37 27 19 8 15 -1 4 98 55 56 1 27 27 56 2 36 95 46 20 -2 14 -7 5 218 149 185 35 62 32 23 1 -3 2 -2 6 -2 3 -1 7 -1 4 11 10 3 13 -2 2 -4 2 -2 5 27 20 8 49 30 32 12 12 6 7 6 2 9 7 1972—Ja............... n Feb............ M ar........... A pr............ M ay.......... J u n e * ...., Ju ly * ........ 1 -2 22 54 48 SEPTEMBER 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions o f dollars) N ether Switzer United land K ingdom lands Other Europe Total Europe 134 197 54 118 327 212 91 39 74 464 612 571 128 37 56 25 19 16 1 -1 • * -1 -2 3 26 21 53 42 -1 2 20 49 69 24 70 18 1 -3 -3 2 6 -6 22 67 86 83 122 -3 -1 0 16 -8 7 -1 3 3 1 5 -2 -1 • 1 -1 « 20 * 8 12 -1 4 -2 0 29 -1 -3 21 42 20 102 54 17 71 4 -5 6 38 -1 1 15 -1 3 15 17 13 49 67 106 63 121 148 16 10 11 -3 -1 11 23 4 -2 -1 3 3 * 26 * 2 Period Total France G er many 1970..................... 1971..................... 1972—Jan.-July*. 956 684 1,123 35 15 188 48 35 2 37 -1 40 40 85 94 40 94 —18 —2 -3 5 « -1 -1 -1 -1 1 4 -1 33 146 321 205 184 214 20 3 -1 5 38 40 95 9 2 -1 3 3 -3 1 -3 1971—July___ Sept........... O ct............. Dec........... 1972—Jan............. Feb............ M a r.. . . . . A pr............ June* . . . . July *......... * N o t e . —Statistics include State and local govt, securities, and securities o f U.S. Govt, agencies and corporations that are not guaranteed by Latin C anada America • Asia Africa 28 -2 293 * 1 1 * * * * * -1 2 1 * * • 3 51 192 27 11 8 1 • * O ther Intl. and countries regional * * • * * -1 2 -2 1 * 324 39 187 * 24 17 -1 4 -3 3 -31 -3 * * • -5 * * * -2 7 29 23 115 14 36 -4 * • * the United States. Also includes issues o f new 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 o f dollars) (Amounts outstanding; in millions o f dollars) Latin Canada Amer Asia ica Period Total Intl. and re gional Total foreign coun tries Eu rope 1970................. 1971r ............... 1972— Jan .-Ju ly * . . -9 1 5 -9 3 7 -2 5 4 -3 1 0 -6 6 2 -6 2 7 50 38 -5 8 6 -2 8 5 -1 1 -4 6 -6 3 7 -1 4 8 -4 9 0 302 -4 7 8 1971—J u ly .... Aug---Sept.. . . O c t.r . .. N o v .r . . D e c .. . . -6 8 -1 8 0 15 -3 0 50 51 7 -1 5 2 8 32 11 2 -7 5 -2 9 6 -6 3 39 49 -1 6 23 1 27 37 23 -6 -2 3 -7 -1 1 1 32 53 1972—Jan ,. F e b .. . . M ar___ A pr. T. . M ay. . . J u n e * .. July * ... -2 6 2 - 2 4 2 -1 2 -8 1 14 -4 6 20 6 3 -7 8 -2 7 2 5 83 78 -2 0 -6 8 -6 0 14 -8 1 -2 7 8 5 11 32 58 65 75 26 36 -2 4 -7 3 -7 4 8 -1 4 3 -1 9 5 23 End o f period Credit balances (due to foreigners) D ebit balances (due from foreigners) 20 32 1969—Sept.............................. 467 434 297 278 -1 3 23 1970—M ar.............................. -1 1 * 1 * -4 2 1 1 2 3 2 368 334 291 349 220 182 203 281 1971—M ar............................... June.............................. Sept............................... 511 419 333 311 314 300 320 314 1972—M ar............................... June*........................... 325 312 379 339 Af rica Other coun tries -1 2 9 -3 6 6 -6 -1 -4 5 -2 8 0 -2 -1 6 3 -6 -2 8 -1 0 -5 3 -1 4 8 24 5 -1 5 -1 6 1 -2 -3 1 14 -1 5 3 5 -2 6 -4 7 -3 6 -2 1 -9 4 -6 0 * ! -2 -5 3 -9 * * 3 * 10 5 2 * 2 N o t e . —D ata represent the money credit balances and money debit balances appearing on the books o f reporting brokers and dealers in the U nited States, in accounts o f foreigners with them, and in their accounts carried by foreigners. Notes to Tables 21a and 21b on following pages: 1 Total assets and total liabilities payable in U.S. dollars am ounted to F or a given m onth, total assets may not equal total liabilities because some branches do not adjust the parent’s equity in the branch to reflect $8,295 million and $8,387 million, respectively, on M ay 31, 1972. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent N o t e . —Components may not add to totals due to rounding. dollar values. A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1972 21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions o f dollars) Claims on U.S. Location and currency form Month-end Total Total IN ALL FO R EIG N CO UNTRIES IN T H E BAHAMAS Total all currencies................................ For notes seep. A-87. O ther Total Other branches o f parent bank Other banks Offi N on cial bank insti for tutions eigners O ther 47,363 9,740 7,248 2,491 36,221 6,887 16,997 1971— M ay ........... Ju n e ........... July............ Aug............ Sept............ Oct............. 50,574 52,732 52,739 54,873 56,967 57,496 58,630 61,474 4,398 4,853 4,833 4,092 5,047 5,844 5,650 4,800 2,191 2,661 2,619 2,036 2,970 3,649 3,341 2,313 2,207 2,191 2,214 2,056 2,077 2,195 2,308 2,487 41,576 43,292 43,088 46,393 48,963 49,716 51,066 54,879 8,317 8,924 8,788 9,126 9,706 10,154 10,416 11,224 18,124 19,062 18,474 20,773 22,305 21,923 22,661 24,630 798 851 1,006 1,129 1,164 1,198 1,195 1,167 14,337 14,456 14,820 15,365 15,788 16,441 16,795 17,858 4,600 4,587 4,817 4,388 2,957 1,937 1,914 1,795 1972—Jan ............. 60,026 Feb............. 61,862 M ar............ 65,053 A pr............ 64,171 M ay ........... 64,372 4,333 4,116 4,565 4,886 4,619 1,987 1,742 2,085 2,426 2,080 2,345 2,374 2,480 2,461 2,539 53,760 55,845 58,662 57,465 57,943 10,445 11,013 10,635 10,544 10,463 24,513 25,618 28,070 26,693 27,060 1,211 1,118 1,176 1,181 1,275 17,591 18,095 18,781 19,048 19,145 1,933 1,901 1,826 1,820 1,810 1970—Dec............ 34,619 9,452 7,233 2,219 24,642 4,213 13,265 362 6,802 525 1971—M ay........... Ju n e ........... July............ Aug............ Dec............ 36,070 37,648 37,117 37,846 38,712 38,570 39,130 40,236 4,193 4,648 4,613 3,875 4,807 5,600 5,368 4,542 2,172 2,651 2,610 2,025 2,950 3,633 3,319 2,306 2,020 1,998 2,003 1,851 1,858 1,968 2,049 2,236 28,296 29,438 28,718 30,703 32,145 32,617 33,118 35,117 5,354 5,609 5,648 5,791 6,029 6,094 6,436 6,659 13,839 14,645 13,799 15,466 16,436 16,302 16,690 18,040 554 587 714 866 875 907 910 864 8,549 8,598 8,557 8,581 8,805 9,013 9,082 9,554 3,581 3,562 3,787 3,268 1,759 653 644 577 1972—Jan ............. Feb............. M ar............ A pr............ M ay ........... 38,928 39,920 43,002 41,757 41,932 4,072 3,864 4,300 4,597 4,393 1,975 1,732 2,062 2,387 2,063 2,097 2,132 2,238 2,210 2,330 34.228 35,374 38,074 36,489 36,886 6,427 17,759 6,637 18,514 6,727 20,608 6,359 19,346 6,475 19,574 822 821 845 883 935 9,220 9,402 9,891 9,902 9,902 629 682 631 671 653 1970—Dec............ 28,451 6,729 5,214 1,515 21,121 11,095 316 6,235 601 1971—M ay........... Ju n e........... Aug............ Sept............ O ct............. N ov............ D ec............ 29,952 31,276 30,710 32,119 33,280 33,408 33,945 34,552 2,746 3,188 3,098 2,608 3,390 4,116 3,845 2,694 1,401 1,827 1,700 1,340 2,143 2,772 2,529 1,230 1,345 1,361 1,398 1,268 1,247 1,344 1,316 1,464 24,627 25,545 25,140 27,249 28,464 28,458 29,203 30,996 4,218 11,957 4,393 12,632 4,448 11,953 4,462 13,744 4,882 14,683 5,189 14,536 5,483 15,040 5,690 16,211 433 418 520 558 512 524 527 476 8,020 8,101 8,218 8,486 8,387 8,210 8,153 8,619 2,579 2,542 2,473 2,262 1,426 834 896 862 1972—Jan ............. Feb............. M ar............ A pr............ M ay........... 33,877 34,712 37,104 36,126 36,311 2,514 2,247 2,503 2,738 2,441 1,228 1,044 1,312 1,574 1,282 1,287 1,204 1,190 1,163 1,160 > 30,447 31,617 33,810 32,585 33,119 5,243 16,411 5,584 17,097 5,380 19,177 5,269 17,945 5,209 18,304 469 454 491 507 585 8,325 8,482 8,762 8,865 9,020 916 848 790 803 750 1970—D ec............ 22,574 6,596 15,655 2,223 9,420 4,012 323 1971—M ay........... Ju n e........... Ju ly ........... Aug............ Sept............ Oct............. N ov............ Dec............ 23,028 24,228 23,282 23,848 24,418 24,481 24,561 24,428 2,651 3,098 3,010 2,528 3,289 4,012 3,717 2,585 18,156 18,918 18,155 19,451 20,123 20,069 20,445 21,493 3,030 3,231 3,219 3,245 3,369 3,440 3,918 4,135 10,128 10,674 10,031 11, 336 11,883 11, 859 12,090 12,762 4,999 5,013 4,906 4,870 4,871 4,771 4,438 4,596 2,221 2,211 2,116 1,868 1,006 399 398 350 1972—Feb............ M ar............ A pr............ M ay........... 23,816 26,097 24,967 24,928 2,153 2,401 2,620 2,356 21,254 23,324 21,943 22,195 3,960 3,926 3,708 3,577 S------------- 13,058 14,865 13,754 14, 101 4,237 4,534 4,481 4,517 409 372 404 377 1970—Dec............ 4,815 1,173 455 717 3,583 y 2,119 1,464 59 1971—M ay ........... Ju n e........... Ju ly ........... Aug............ Sept............ Oct............. N ov. r . . . . D ec............ 5,379 5,760 6,047 5,970 6,208 6,586 7,264 8,493 773 839 890 728 835 887 1,025 1,282 113 203 267 139 219 246 277 505 660 635 623 589 615 641 798 778 3,913 4,238 4,428 4,618 5,039 5,605 6,139 7,119 2,062 2,338 2,357 2,604 2,934 3,019 3,203 3,798 1,850 1,900 2,071 2,014 2,105 2,585 2,936 3,320 694 683 729 624 334 95 101 92 7,973 1972—Jan ............. 8,380 Feb............. 8,836 M ar............ A pr............ 9,038 M ay ........... 19,094 955 994 1,178 1,284 1,361 159 107 126 204 195 796 888 1,052 1,080 1,166 6,925 7,276 7,551 7,643 7,615 3,679 3,819 4,038 4,121 4,181 3,247 3,457 3,513 3,521 3,434 94 110 108 111 117 O ct............. Payable in U.S. d o llars.......................... Parent bank 1970—D ec............ Dec............ IN U NITED KINGDOM Total, all currencies................................ Claims on foreigners 3,475 695 11,643 1,403 SEPTEMBER 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To foreigners To U.S. Total Parent bank Other Total Other branches o f parent bank Offi N on cial bank for insti tutions eigners O ther banks Other M onth-end 4,180 7,377 1,967 .............1970—Dec. 25,039 26,729 26,544 27,178 28,497 28,520 29,350 31,147 5,216 5,339 5,373 5,450 5,476 5,581 5,749 5,491 7,502 7,721 7,670 8,203 8,451 8,638 8,509 8,786 1,835 ............ 1971—M ay 1,824 1,741 ......................... July 1,902 2,014 2,041 ......................... Oct. 2,113 2,119 10,324 10,645 10,363 10,119 10,055 29,763 30,707 '33,692 32,651 33,129 5,869 6,180 '6,331 6,617 6,630 9,091 9,102 9,546 9,723 9,830 2,034 ............ 1972—Jan. 2,058 ..........................Feb. 2,073 2,081 1,908 47, 2,575 716 1,859 42,812 6,426 24,829 50, 52, 52, 54, 56, 57, 58, 61, 2,848 2.565 3,061 3,349 3,015 2,915 2,870 3,114 726 528 477 763 501 474 475 669 2,122 2,038 2,584 2,586 2,514 2,441 2,395 2,445 45,891 48,342 47,934 49,622 51,940 52,540 53,646 56,242 8,134 8,553 8,346 8,792 9,516 9,802 10,038 10,818 60, 61, 65, 64, 64, 2.938 3,170 3,047 2,980 2,818 658 779 636 621 562 2,280 2,391 2,411 2,358 2,256 55,048 56,634 59,933 59,111 59,645 36, 2,334 657 1,677 32,509 4,079 19,816 3,737 4,877 1,243 .............1970—Dec. 37, 39, 38, 39, 40, 40, 40, 42, 2.582 2,293 2,762 2.939 2,638 2,549 2,523 2,674 643 432 393 643 381 352 375 511 1,939 1,861 2,368 2,296 2,257 2,198 2,148 2,163 33,638 35,782 34,571 35,406 36,375 36,331 37,149 38,139 5,469 5,793 5,433 5,735 6,234 6,154 6,479 6,692 19,120 20,610 20,192 20,340 20,981 20,797 21,120 22,069 4,419 4,604 4,416 4,375 4,408 4,503 4,662 4,426 4,630 4,775 4,530 4,956 4,752 4,878 4,888 4,953 1,096 ............ 1971—M ay 1,068 990 ......................... July 1,149 1,195 1,161 1,221 1,276 .........................Dec. 41, 42, 45, 44, 44, 2,556 2,743 2,643 2.591 2.411 546 644 509 514 439 2,010 2,099 2,135 2,077 1,973 37,642 38,607 41,744 40,260 40,751 6,710 6,853 6,945 6,583 6,648 '20,862 21,742 24,425 23,127 23,618 '4 ,7 6 5 4,768 4,947 5,202 5,152 5,306 5,244 5,428 5,349 5,333 1,182 ............ 1972—Jan. 1,212 ......................... Feb. 1,225 1,227 1,058 28, 1.339 116 1,222 26,520 2,320 16,533 3,119 4,548 592 29, 31, 30, 32, 33, 33, 33, 34, 1.591 1.565 1,773 2,000 1,658 1,628 1,618 1,660 301 147 126 300 117 104 77 111 1,291 1,419 1,647 1,700 1,541 1,523 1,541 1,550 27,667 29,021 28,264 29,429 30,877 31,009 31,513 32,128 2,843 2,931 2,762 3*069 3,344 3,250 3,106 3,401 16,387 17,578 16,843 17,310 18,431 18,535 18,901 19,137 3,873 3,967 4,034 4,268 4,318 4,447 4,622 4,464 4,565 4,545 4,625 4,782 4,785 4,777 4,885 5,126 694 ............ 1971—M ay 690 674 691 745 772 814 763 33, 34, 37, 36, 36, 1,626 1.582 1,525 1.340 1,397 132 114 78 68 105 1,494 1,468 1,447 1,272 1,291 31,473 32,371 34,787 33,980 34,090 3,296 3,417 3,209 3,056 3,154 18,076 18,705 20,989 19,893 19,908 4,680 4,788 4,996 5,172 5,158 5,421 5,461 5,594 5,859 5,871 778 ............ 1972—Jan. 759 792 807 824 23, 1,208 98 1,548 13,684 2,859 3,404 302 .............1970—Dec. 23, 24, 23, 24, 24, 24, 25, 24, 1,455 1,432 1,610 1,790 1,460 1,435 1,452 1.412 266 96 89 238 59 49 36 23 1,189 1,336 1,521 1,552 1,401 1,387 1,416 1,389 21,378 22,682 21,428 22,095 22,882 22,875 23,166 23,059 1,902 2,053 1,819 1,900 2,126 2,095 2,028 2,164 12,967 14,071 13,198 13,445 14,160 14,079 14,185 14,038 3,368 3,493 3,382 3,501 3,555 3,660 3,813 3,676 3,142 3,065 3,029 3,249 3,041 3,041 3,140 3,181 365 ............ 1971—M ay 361 361 377 400 417 426 374 24, 1,377 1,327 1,154 1,202 50 19 26 58 1,327 1,308 1,129 1,144 22,985 25,220 24,027 24,168 2,081 13,670 2,093 15,694 1,852 14,465 2,054 14,610 3,824 4,041 4,233 4,141 3,411 3,392 3,477 3,363 403 .............1972—Feb. 424 419 417 90 .............1970—Dec. 26, 25, 25 ; 1,110 21,495 4 542 4,183 488 2,872 823 5 646 446 753 696 719 628 599 750 4,633 5,221 5,197 5,155 5,359 5,805 6,510 7,557 991 1,013 1,126 1,005 931 1,083 1,446 1,649 2,744 3.095 3 ,138 3,029 3,381 3,551 3,943 4,784 898 1,113 933 1,121 1,048 1,170 1,121 1,124 101 ............ 1971—M ay 93 95 119 133 155 155 .........................N o v .' 188 625 858 833 961 812 7,197 7,380 7,876 7,922 8,138 1,563 1,526 1,429 1,494 1,454 4,427 4,676 5 ,142 5 ,224 5,353 1,207 1,178 1,305 1,204 1,330 151 ............ 1972—Jan. 142 ......................... Feb. 128 155 144 5 6 5 6 6 7 8 7 8 8 9 19 seep. A-87. Location and currency form IN ALL FO R EIG N COUN TRIES .. .Total, all currencies .Payable in U.S. dollars IN U NITED KIN G D O M . . .Total, all currencies .Payable in U.S. dollars IN T H E BAHAMAS .Total, all currencies INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1972 A 90 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 o f dollars) (End o f m o n th ; in billions o f dollars) Liabili Wednesday ties1 W ednesday 29............... 28............... 27............... 27............... 3,412 3,166 4,059 4,241 1968 M ar. June Sept. Dec. 4,920 6,202 7,104 6,039 27............... 26............... 25............... 31 (1/1/69) 1969 M ar. June Sept. Dec. 9,621 13,269 14,349 12,805 26............... 25............... 24............... 31............... Jan. Feb. M ar. Apr. M ay June July Aug. Sept. Oct. Nov. Dec. 2 5 ................. 24................. 30................. 30................. 11,885 12,172 9,663 7,676 27. 2 4 ., 31., 28. 26. 30. 28. 25. 29. 27. 24. 29. 1972 Jan. 5. 12. 19. 26. 6,536 5,666 2,858 2,158 1,579 1,492 1,495 1,405 2,475 2,917 3,342 909 1,208 1,721 1,568 1,419 1,301 1,062 1,006 1,068 Feb. M ar. Wednesday Liabili ties1 1972 M aturity o f liability A pr. M ay June 1.91 2.10 1.74 1.91 2.37 2.02 9.00 5.90 5.05 2.16 2.06 2.12 .38 .58 .51 .36 .37 .43 9,48 6.24 3.86 2.43 2.47 2.33 .63 .54 .41 r .41 r .39 .45 11.19 4.92 4.82 2.85 2.61 2.48 .73 .42 .54 .41 .45 .29 1.11 1.05 1.12 1972—Cont. 1970 M ar. June Sept. Dec. Liab. plus sec.2 1971 1967 M ar. June Sept. Dec. Liabili ties1 1., 8. 15. 22. 29. 954 1,164 1,263 1,346 1,532 7,536 6,666 4,358 5,166 4,587 4,500 4,645 4,075 3,578 Apr. 5 . . ’. 1 2 ... 1 9 ... 2 6 ... 1,130 1,052 1,279 1,374 M ay 3 ... 1 0 ... 1 7 ... 2 4 ... 3 1 ... 1,240 1,323 1,544 1,599 1,465 June 7 . . . 1 4 . .. 2 1 ... 28. . . 1,192 1,525 1,740 1,442 July 5 . . . . 1 2 .... 1 9 .... 2 6 .... 824 1,375 974 1,342 Aug. 2. .. 9 ... 1 6 ... 2 3 ... 3 0 ... 1,829 1,250 1,778 1,845 1,262 C all....................................... Other liabilities, maturing in following calendar m onths after report date: 2nd................................ 3rd................................. 6th................................. 11th................................. 12th................................. M aturities o f more than 1 34.05 34.32 37.25 N o t e . — Includes interest-bearing U.S. dollar deposits and direct borrowings o f all branches in the Bahamas and o f all other foreign branches for which such deposits and direct borrowings am ount to $50 million or more. Details may not add to totals due to rounding. 1 Represents gross liabilities o f reporting banks to their branches in foreign countries. 2 F o r period Jan. 27, 1971 through Oct. 20, 1971, includes U.S. Treasury Certificates Euro dollar Series and special Export-Im port Bank securities held by foreign branches. Beginning July 28, 1971, all o f the securities held were U.S. Treasury Certificates Eurodollar Series. 24. DEPOSITS, U.S. GOVT. 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 o f dollars) (In millions o f dollars) Payable in Payable in dollars foreign currencies Assets in custody End of period Deposits U.S. Govt. securities1 Earmarked gold 1969................ 1970............... 134 148 7,030 16,226 12,311 12,926 1971—A u g ... S e p t... O c t.. . N ov. . D e c.. . 122 166 135 177 294 35,914 36,921 38,207 39,980 43,195 13,821 13,819 13,819 13,820 13,815 1972—J a n .... Feb. .. M ar... A p r.. . M a y .. June. . J u ly ... A u g ... 147 137 191 228 157 257 160 192 44,359 45,699 46,837 46,836 46,453 47,176 51,522 51,676 13,815 14,359 14,321 14,315 15,542 15,542 15,542 15,530 1 M arketable U.S. Treasury bills, certificates o f in debtedness, notes, and bonds and nonm arketable U.S. Treasury securities payable in dollars and in foreign currencies. N o t e . —Excludes deposits and U.S. Govt, securities held for international and regional organizations. Ear marked gold is gold held for foreign and international accounts and is not included in the gold stock o f the United States. End of period Total Short Short term D eposits term D eposits invest invest ments 1 ments 1 United K ing dom C anada 1968..................... 10£Q 2 1,638 /1,319 \ 1,491 1,141 1,219 952 1,062 697 87 116 161 150 272 174 183 173 60 76 86 121 979 610 663 372 280 469 534 436 1971—June........ Ju ly ......... Aug.......... Sept.......... O ct........... N ov......... D ec.......... 1,470 1,478 1,661 1,579 1,604 1,622 1,637 932 949 1,085 989 1,015 1,029 1,073 176 189 201 198 206 205 203 240 238 246 285 277 246 241 122 101 128 107 106 143 120 634 579 639 519 540 612 575 365 395 480 489 531 517 577 1972—Jan........... Feb.......... M ar.r ___ A p r.r ___ M ay.r . . . June........ 1,736 1,820 1,982 1,907 1,990 1,994 1,087 1,034 1,235 1,273 1,309 1,342 235 316 266 211 223 208 251 245 281 259 305 273 163 225 200 164 153 170 614 548 653 662 698 693 672 845 847 740 685 652 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 D ata on the two lines for this date differ because o f changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding d a te ; figures on the second line are comparable with those shown for the following date. N o t e . —D ata 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. SEPTEMBER 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 91 26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End o f period. Amounts outstanding; in millions o f dollars) Liabilities to foreigners Area and country 1972 1971 M ar. Europe: A ustria...................................... Belgium-Luxembourg........... D enm ark.................................. F in lan d ..................................... F ran ce...................................... Germany, Fed, Rep. o f .. . . . G reece...................................... Ita ly ........................................... N etherlands............................. N orw ay.................................... Portugal.................................... S pain......................................... Claims on foreigners June Sept. Dec. Mar.® 1972 1971 M ar. June Sept. Dec. Mar.® Turkey...................................... United K in g d o m .................... Y ugoslavia.............................. O ther W estern E u ro p e ......... Eastern E u ro p e....................... 11 47 9 2 112 122 4 71 115 4 14 27 28 122 3 735 4 1 4 12 58 3 2 117 105 5 69 102 5 18 35 31 85 5 659 4 2 3 10 60 3 2 139 125 6 74 85 5 18 37 28 100 3 686 4 2 3 5 66 2 2 142 117 4 108 70 5 16 66 17 91 2 768 3 2 4 5 105 3 2 128 88 5 112 75 6 9 66 16 60 2 870 4 1 5 10 49 16 8 159 191 34 175 65 15 13 93 53 38 17 1,020 16 12 16 10 61 17 15 181 228 27 172 74 14 20 91 40 62 9 961 16 11 16 13 59 14 16 182 209 40 176 66 17 13 89 37 95 9 846 21 14 16 14 62 15 18 208 192 35 191 69 13 16 125 40 63 9 957 13 13 28 17 47 18 19 201 210 36 187 67 16 23 103 35 59 9 976 10 13 25 T o ta l................................. 1,437 1,319 1,391 1,489 1,564 1,997 2,027 1,932 2,080 2,074 C an ad a......................................... 206 193 183 181 188 721 706 800 909 1,217 P e ru ........................................... U ruguay................................... Venezuela................................. O ther L.A. republics............. Bahamas and Berm uda......... Neth. Antilles and Surinam . O ther Latin Am erica............. 14 15 13 6 * 20 6 4 4 17 29 173 5 5 17 17 8 6 * 20 6 4 4 17 29 167 7 6 19 13 14 6 • 23 6 5 4 14 33 232 4 8 18 21 14 7 * 22 5 7 2 16 33 275 3 5 18 20 21 7 « 17 8 8 3 18 28 341 5 12 65 105 40 36 1 143 21 35 7 69 95 222 8 21 66 117 44 31 1 151 17 36 6 69 96 273 9 25 66 127 48 40 1 146 20 34 6 73 105 362 9 21 55 150 47 46 1 151 21 34 5 81 101 366 9 24 49 142 40 41 1 134 19 31 6 77 95 313 8 22 T o ta l................................. 311 307 381 429 506 866 940 1,057 1,090 977 Asia: Hong K ong.............................. In d ia.......................................... Indonesia.................................. Isra e l......................................... Ja p a n ......................................... K orea........................................ Philippines............................... Taiw an...................................... T h ailan d ................................... O ther A sia............................... 8 25 5 28 165 11 7 10 4 59 8 22 6 19 158 10 7 11 3 122 9 26 11 21 178 10 6 17 4 140 12 27 10 10 177 13 7 18 3 143 11 13 6 9 194 12 9 23 4 110 19 39 20 24 349 50 31 32 12 153 25 39 21 25 372 54 56 38 13 158 26 36 24 21 397 52 43 43 16 201 24 37 29 23 411 68 49 41 15 147 21 31 29 23 469 56 64 45 18 173 T o ta l................................. 322 366 421 420 391 729 800 859 844 930 A frica: Congo (K inshasa).................. South A frica............................ U .A .R. (Egypt)....................... O ther A frica............................ 2 31 2 19 2 45 1 33 1 45 1 32 1 31 1 35 1 26 1 31 5 32 10 53 6 38 9 67 4 39 9 70 6 41 9 100 5 42 9 76 T o ta l................................. 54 82 78 68 59 100 120 122 156 130 O ther countries: A ustralia.................................. All o th e r.................................. 81 8 81 8 68 9 46 9 54 10 86 13 82 17 85 24 83 19 86 27 T otal................................. 89 89 77 55 64 99 99 109 102 113 International and regional. . . . * * 1 * * 3 4 4 4 2 G rand to ta l..................... 2,418 2,357 2,532 2,643 2,774 4,515 4,696 4,882 5,185 5,443 Latin America: A rgentina................................. Brazil........................................ C hile.......................................... Colom bia.................................. C uba.......................................... N o t e . —Reported by exporters, im porters, and industrial and commercial concerns and other nonbanking institutions in the United States. D ata exclude claims held through U.S. banks, and intercompany accounts between U.S. companies and their foreign affiliates. A 92 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1972 27. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions o f dollars) Liabilities Claims Payable in foreign currencies End o f period Total Payable in dollars Payable in foreign currencies Total Payable in dollars Deposits with banks abroad in reporter’s nam e O ther 1967—D ec........................ 1,386 1,039 347 3,011 2,599 203 209 1968—M ar........................ Ju n e....................... Sept........................ D ec......................... 1,358 1,473 1,678 1,608 991 1,056 1,271 1,225 367 417 407 382 3,369 3,855 3,907 3,783 2,936 3,415 3,292 3,173 211 210 422 368 221 229 193 241 1969—M ar........................ June....................... Sept........................ 1,576 1,613 1,797 ( 1,786 I 2,124 1,18$ 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—M ar........................ D ec......................... 2,234 2,387 2,512 2,655 1,724 1,843 1,956 2,159 510 543 557 496 4,275 4,457 4,361 4,160 3,738 3,868 3,756 3*579 219 234 301 234 318 355 305 348 1971—M ar........................ Ju n e........................ Sept........................ D ec......................... 2,418 2,357 2,532 2,643 1,957 1,919 2,091 2,180 462 438 442 463 4,515 4,696 4,882 5,185 3,909 4,045 4,174 4,535 232 303 383 318 374 348 326 333 1972—M ar.*..................... 2,774 2,340 433 5,443 4,677 358 408 1 D a ta on the two lines shown for this date differ because o f 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 o f dollars) Claims End o f period Country or area Total liabilities Total U nited Kingdom O ther Europe Canada Brazil Mexico Othei* Latin America Japan O ther Asia Africa All other 1967—D ec........................... 428 1,570 43 263 322 212 91 274 128 132 89 16 1968—M ar.......................... Ju n e ......................... Sept.......................... D ec........................... 582 747 767 1,129 1,536 1,568 1,625 1,790 41 32 43 147 265 288 313 306 330 345 376 419 206 205 198 194 61 67 62 73 256 251 251 230 128 129 126 128 145 134 142 171 84 83 82 83 21 33 32 38 1969—M ar.......................... Ju n e......................... Sept.......................... ( Tif*n 1 ( 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 1970—M ar.......................... Ju n e ......................... Sept.......................... D ec........................... 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—M ar........................... Ju n e.......................... Sept........................... Dec........................... 3,177 3,172 2,922 3,028 2,983 2,994 3,025 3,137 154 151 135 128 688 692 675 715 670 677 753 756 182 180 179 174 63 64 63 60 615 629 598 656 161 138 133 141 302 313 323 327 77 75 91 96 72 76 75 85 1972—M ar.*....................... 2,946 3,214 128 723 775 173 59 662 141 362 104 86 1 D ata on the two lines shown for this date differ because o f changes shown for the preceding date; figures on the second line are com parable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. SEPTEMBER 1972 □ MONEY RATES A 93 FOREIGN EXCHANGE RATES (In cents per unit of foreigncurrency) Argentina (peso) Period Australia (dollar) Austria (schilling) Belgium (franc) C anada (dollar) Ceylon (rupee) D enm ark (krone) Finland (markka) France (franc) .28473 .28492 2 26.589 22.502 111.25 111.10 111.36 113.61 3.8675 3.8654 3.8659 44.0009 2.0026 1.9942 2.0139 2.0598 92.801 92.855 3 95.802 99.021 16.678 16.741 16.774 16.800 13.362 13.299 13.334 13.508 23.761 23.774 23.742 23.758 20.191 1 19.302 18.087 18.148 1971—Aug.. Sep t.. O ct.. N o v .. D ec.. 20.757 19.919 19.923 19.925 19.928 113.17 114.78 115.76 115.89 117.48 4.0264 4.0844 4.1261 4.1280 4.2041 2.0351 2.0921 2.1353 2.1572 2.1986 98.670 98.717 99.537 99.607 100.067 16.792 16.839 16.820 16.806 16.797 13.435 13.672 13.768 13.773 13.994 23.735 23.830 23.800 23.773 23.852 18.130 18.112 18.073 18.096 18.549 1972—Jan .. Feb.. M ar.. Apr.. May. June. J u ly .. Aug.. 19.960 219.960 119.10 119.10 119.10 119.10 119.10 119.10 119.10 119.11 4.2516 4.3108 4.3342 4.3236 4.3277 4.3421 4.3674 4.3470 2.2514 2.2810 2.2757 2.2672 2.2737 2.2758 2.2814 2.2795 99.411 99.528 100.152 100.430 101.120 102.092 101.630 101.789 16.653 16.650 16.650 16.650 16.650 16.772 15.878 15.611 14.219 14.306 14.361 14.301 14.332 14.336 14.368 14.438 24.077 24.099 24.121 24.088 24.084 24.136 24.035 24.020 19.329 19.650 19.835 19.852 19.944 19.937 19.990 19.986 Germany (Deutsche m ark) India (rupee) Ireland (pound) Italy (lira) Japan (yen) M alaysia (dollar) Mexico (peso) N eth erlands (guilder) 25.048 5 25.491 27.424 6 28.768 13.269 13.230 13.233 13.338 239.35 239.01 239.59 244.42 .16042 .15940 .15945 .16174 .27735 .27903 .27921 .28779 32.591 32.623 32.396 32.989 8.0056 8.0056 8.0056 8.0056 27.626 27.592 27.651 6 28.650 1971—Aug. Sept. O ct.. Nov. Dec., 29.277 29.794 30.065 30.005 30.593 13.345 13.401 13.349 13.353 13.388 243.46 246.94 249.06 249.33 252.66 .16157 .16292 .16332 .16324 .16652 .28113 .29583 .30202 .30418 .31249 32.737 33.354 33.573 33.627 34.135 8.0056 8.0056 8.0056 8.0056 8.0056 28.693 29.308 29.772 30.006 30.503 1972—Jan .. Feb.. M ar. Apr., May, June, July , Aug. 30.956 31.390 31.545 31.468 31.454 31.560 31.634 31.382 13.415 13.638 13.716 13.735 13.763 13.754 13.072 13.030 257.05 260.37 261.81 261.02 261.24 256.91 244.47 245.02 .16923 .17036 .17161 .17138 .17175 .17142 .17208 .17203 .31978 .32769 .33054 .32943 .32854 .33070 .33219 .33204 34.737 35.080 35.409 35.406 35.446 35.475 35.918 36.026 8.0002 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 31.072 31.468 31.384 31.142 31.124 31.296 31.424 31.158 Period New Zealand (dollar) Norway (krone) Portugal (escudo) South Africa (rand) Spain (peseta) Sweden (krona) Switz erland (franc) United K ing dom (pound) 1968........................................................................................ 1969........................................................................................ 1970........................................................................................ 111.37 111.21 111.48 113.71 14.000 13.997 13.992 14.205 3.4864 3.5013 3.4978 3.5456 139.10 138.90 139.24 140.29 1.4272 1.4266 1.4280 1.4383 19.349 19.342 19.282 19.592 23.169 23.186 23.199 7 24.325 239.35 239.01 239.59 244.42 1971—Aug............................................... ............................. Sept............................................................................ Oct.............................................................................. N ov............................................................................ D ec............................................................................. 113.28 114.95 115.88 116.01 117.31 14.244 14.494 14.599 14.578 14.816 3.5289 3.5970 3.6275 3.6342 3.6494 141.46 140.88 140.43 140.40 137.22 1.4335 1.4415 81.4457 1.4533 1.4822 19.502 19.732 19.914 19.989 20.434 24.813 25.118 25.157 25.104 25.615 243.46 246.94 249.06 249.33 252.66 1972—Jan.............................................................................. Feb............................................................................. M ar............................................................................. Apr............................................................................. M ay............................................................................ J u n e ........................................................................... J u ly ............................................................................ Aug............................................................................. 119.36 119.39 119.29 119.36 119.41 119.13 119.31 119.45 14.913 15.029 15.161 15.151 15.214 15.303 15.367 15.335 3.6474 3.6690 3.6930 3.6950 3.7075 3.7083 3.7178 3.7211 131.27 132.98 133.77 133.32 133.82 132.63 125.26 125.28 1.5162 1.5170 1.5369 1.5487 1.5492 1.5509 1.5754 1.5752 20.731 20.858 20.956 20.907 21.032 21.101 21.134 21.160 25.693 25.890 25.974 25.920 25.903 26.320 26.561 26.449 257.09 260.37 261.81 261.02 261.24 9256.91 244.47 245.02 1968. 1969. 1970. 1971. Period 196 196 197 197 8 9 0 1 1 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to 5.55 francs per U.S. dollar. 2 A new Argentine peso, equal to 100 old pesos, was introduced on Jan. 1, 1970. Since A pr. 6, 1971, the official exchange rate is set daily by the Government o f Argentina. Average for Feb. 1-27,1972. 3 On June 1, 1970, the Canadian Government announced that, for the time being, C anada will not m aintain the exchange rate o f the Canadian dollar within the margins required by IM F rules. 4 Effective M ay 9, 1971, the A ustrian schilling was revalued to 24.75 per U.S. dollar. 5 Effective Oct. 26, 1969, the new par value o f the G erm an m ark was set at 3.66 per U.S. dollar. 6 Effective May 10,1971, the German m ark and Netherlands guilder have been floated. 7 Effective M ay 10, 1971, the Swiss franc was revalued to 4.08 per U.S. dollar. 8 Effective Oct. 20, 1971, the Spanish peseta was revalued to 68.455 per U.S. dollar. 9 Effective June 23, 1972, the U .K . pound was floated. N o t e . —Effective Aug. 16, 1971, the U.S. dollar convertibility to gold was suspended; as from that day foreign central banks did not have to support the dollar rate in order to keep it within IM F limits. During December 1971, certain countries established central rates against the U.S. dollar in place o f former IM F parities. Averages o f certified noon buying rates in New Y ork for cable transfers. For description o f rates and back data, see “ International Finance,” Section 15 o f Supplement to Banking and Monetary Statistics, 1962. A 94 MONEY RATES □ SEPTEMBER 1972 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Aug. 31, 1971 1971 Country Per cent M onth effective Nov. Dec. Jan. 6 .0 5 .0 6 .0 20.0 5.25 C eylon...................................... C hile.......................................... C olom bia................................. C osta R ica........................... D enm ark.................................. 6.5 8 .0 8 .0 4 .0 7.5 Jan. 1970 July 1971 May 1963 7 .0 Apr. 1971 5.0 7 .0 Ecuador.................................... Egypt, Arab Rep. o f ............. El Salvador.............................. Ethiopia.................................... F in lan d ..................................... 8 .0 5 .0 4 .0 6.50 8.50 Jan. May Aug. Aug. June 1970 1962 1964 1970 1971 F ran ce....................................... G ermany, Fed. Rep. o f .. . . . G h a n a ....................................... G reece....................................... H onduras................................. 6.75 5.0 8.0 6.5 4 .0 M ay Apr. July Sept. Feb. 1971 1971 1971 1969 1966 Iceland...................................... In d ia .......................................... Indonesia.................................. Ira n ............................................ Irelan d ...................................... 5.25 6.0 6 .0 8.0 6.12 Jan. Jan. M ay Aug. Aug. 1966 1971 1969 1969 1971 Ita ly ........................................... Jam aica.................................... J a p a n ........................................ K o rea........................................ Mexico...................................... 5 .0 5.5 5.25 16.0 4.5 Apr. Apr. M ay June June 1971 1971 1971 1971 1942 M orocco................................... Netherlands............................. New Zealand........................... N igeria...................................... N orw ay.................................... 3.50 5.5 7 .0 4.50 4.5 Nov. Apr. Mar. June Sept. 1951 1971 1961 1968 1969 P akistan.................................... P e ru ........................................... Philippine R epublic............... P ortugal.................................... South A frica............................ 5 .0 9.5 10.0 3.75 6.5 June Nov. June Feb. M ar. 1965 1959 1969 1971 1971 S pain......................................... Sweden...................................... Sw itzerland.............................. Taiw an...................................... T hailan d ................................... 6 .0 6 .0 3.75 9.25 5 .0 Apr. Apr. Sept. M ay Oct. 1971 1971 1969 1971 1959 Sept. Sept. Apr. Oct. Sept. 1966 1970 1971 1970 1970 5 .0 9 .0 6 .0 5 .0 18.0 1957 1970 1971 1969 1971 Oct. A rgentina................................. A ustria...................................... Belgium.................................... B razil........................................ C an ad a..................................... Tunisia...................................... Turkey...................................... United K ingdom .................... Venezuela................................. Vietnam.................................... Dec. Jan. Mar. July Feb. Sept. 1972 M ar. May Apr. June July Aug. 18.0 5.5 5 .0 4.5 18.0 5 .0 4 .0 20.0 4.75 4 .0 4.75 6.5 7 .0 8 .0 5 .0 8 .0 8 .0 8 .0 5 .0 4 .0 6.50 7.75 7.75 6.5 4 .5 5.12 7 .0 5.12 4 .0 4.94 6 .0 5.75 5.75 3 .0 8 .0 6.5 4 .0 3 .0 4.81 4.81 5.25 6 .0 6 .0 7 .0 5.19 5.19 4 .0 4.5 5.0 4.75 4 .0 6 .0 4.25 13.0 4.5 6 .0 4 .25 13.0 4.5 5 .0 3.50 4 .0 6 .0 4.5 0 4.5 4 .0 6 .0 6 .0 6 .0 5 .0 5.5 6 .0 9.5 10.0 3.75 6 .0 5 .0 5 .0 3.75 9.25 5 .0 5 .0 5 .0 N o t e . —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. F o r 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 o f its credit operations. O ther rates for some o f these countries follow : Argentina—3 and 5 per cent for certain rural and industrial paper, de pending on type o f 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 o f an individual bank’s q u o ta ; 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. Feb. R ate as o f Aug. 31, 1972 6 .0 5 .0 9 .0 6 .0 5 .0 18.0 Honduras—R ate shown is for advances only. Indonesia—Various rates depending on type o f paper, collateral, com modity involved, e tc.; Japan—Penalty rates (exceeding the basic rate shown) for borrowings from the central bank in excess o f an individual bank’s q u o ta ; Morocco—Various rates from 3 per cent to 4.6 per cent depending on type o f paper, maturity, collateral, guarantee, etc. Peru—3.5, 5, and 7 per cent for small credits to agricultural o r fish produc tion, import substitution industries and manufacture o f exports; 8 per cent for other agricultural, industrial and mining paper; Philippines—6 per cent for financing the production, im portation, and dis tribution o f rice and corn and 7.75 per cent for credits to enterprises en gaged in export activities. Preferential rates are also granted on credits to rural banks; and Venezuela—2 per cent for rediscounts o f certain agriculture paper, 4Vi per cent for advances against government bonds, and 5 per cent for rediscounts o f certain industrial paper and on advances against promissory notes or securities o f 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 o f 24 per cent for banks whose loans exceed quan titative ceilings. SEPTEMBER 1972 □ MONEY RATES; ARBITRAGE A 95 OPEN MARKET RATES (Per cent per annum) United Kingdom C anada M onth Prime Treasury Treasury Day-tobank bills, bills, day bills, 3 3 m onths * money* 3 m o n th s3 months Germany, Fed. Rep. o f France Netherlands Switzer land Day-today money Clearing banks* deposit rates4 Day-today m oney5 Treasury bills, 60-90 d ays6 Day-today m oney7 Treasury bills, 3 months D ay-today money Private discount rate 197 0 197 1 6.12 3.62 6.22 3.76 8.26 6.41 6.70 5.57 5.73 4.93 5.23 3.84 8.67 6.54 4.54 8.67 6 .10 5.97 4.34 6.47 3.76 5.14 5.24 1971—Aug. Sept. O c t., Nov. Dec. 3.88 3.93 3.79 3.31 3.25 3.94 4.16 4.16 3.60 3.63 5.99 3 5.42 8 4.9 0 4.7 4 4.42 5.75 4.83 4.63 4.48 4 .36 5.05 4.39 4.29 3.75 3.46 4.00 4 3.00 2.88 2.70 2.50 5.69 5.99 5.95 5.51 5.28 4.25 4.25 3.75 3.75 3.25 6.18 7.01 7.50 4.58 5.78 4.24 4.34 4.47 4.06 3.90 5.53 3.80 5.35 3.79 4.91 5.25 5.25 5.25 5.25 5.12 1972—Jan .. Feb. M ar. Apr. M ay June July. Aug. 3.29 3.48 3.51 3.65 3.67 3.61 3.48 3.47 3.71 3.79 3.70 3.68 3.73 3.64 3.45 3.54 4.48 4.85 4.77 4.62 4.83 5.86 6.82 6.71 4.36 4.37 4 .3 4 4 .3 0 4.27 5.21 5 .60 5.79 3.94 4.43 4.58 3.82 4.56 3.92 4.99 5.13 2.50 2.50 2.50 2.50 2.50 2.93 4.18 5.25 5.31 5.20 4.76 4.81 5.32 3.81 3.25 2.75 2.75 2.75 2.75 2.75 2.75 4.20 4.15 3.88 3.77 2.95 2.65 2.24 3.61 3.19 2.26 1.84 1.98 1.90 1.09 0.75 4.44 3.38 0.98 0.70 3.03 1.53 0.86 5.00 5.0 0 5.00 4.75 4.75 4.75 4.75 1 Based on 2 Based on 3 D ata for months. 4 D ata for deposits. average yield o f weekly tenders during month. weekly averages o f daily closing rates. 1968 through Sept. 1971 are for bankers’ acceptances, 3 1968 through Sept. 1971 are for bankers’ allowance on 5 R ate shown is on private securities. 6 Rate in effect at end o f month. 7 M onthly averages based on daily quotations. 8 Bill rates in table are buying rates for prim e paper. N o t e . —F or description and back data, see “ International Finance,’ Section 15 o f Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and U nited Kingdom United States and C anada Treasury bill rates D ate United Kingdom (adj. to U.S. quotation basis) United States Treasury bill rate* Spread (favor of London) Premium ( + ) or discount ( - ) on forward pound N et incentive (favor of London) C anada As quoted in Canada Adj. to U.S. quotation basis United States Spread (favor of Canada) Premium ( + ) or discount ( - ) on forward C anadian dollars N et incentive (favor of Canada) 1972 M ar. 3 ............... 10............... 17............... 2 4 ............... 31............... 4 .3 0 4.29 4.29 4.27 4.26 3.40 3.53 3.78 3.69 3.80 .90 .76 .51 .58 .46 - .4 0 .15 .07 .12 -.1 1 .50 .91 .58 .70 .35 3.41 3.40 3.56 3.61 3.55 3.38 3.33 3.48 3.53 3.47 3.40 3.53 3.78 3.69 3.80 -.0 2 -.2 0 -.3 0 -.1 6 -.3 3 -1 .0 8 -1 .2 8 -.7 6 -.7 6 - .7 6 -1 .1 0 - 1 .4 8 -1 .0 6 - .92 - 1 .0 9 A pr. 7 ............... 14............... 2 1 ............... 2 8 ............... 4.27 4.27 4.23 4.21 3.72 3.78 3.48 3.48 .55 .49 .75 .73 .17 .12 .01 -.0 4 .72 .61 .76 .69 3.64 3.71 3.64 3.62 3.56 3.63 3.56 3.54 3.72 3.78 3.48 3.48 -.1 6 - .1 5 .08 .06 -.8 0 -.8 0 -1 .0 4 -1 .2 0 -.9 6 -.9 5 -.9 6 -1 .1 4 M ay 5 ............... 12............... 19............... 2 6 ............... 4.19 4 .2 0 4 .2 0 4 .2 4 3.44 3.55 3.72 3.67 .75 .65 .48 .57 - .2 2 -.2 1 - .3 8 - .4 9 .53 .44 .10 .08 3.61 3.62 3.69 3.75 3.53 3.54 3.61 3.66 3.44 3.55 3.72 3.67 .09 -.0 1 - .1 1 - .0 1 - 1 .2 8 -1 .4 0 -1 .7 2 -1 .7 2 -1 .1 9 - 1 .4 1 -1 .8 3 -1 .7 3 June 2 ............... 9 ............... 16............... 2 3 ............... 30 ............... 4 .3 4 4.78 5.46 5.54 5.56 3.77 3.78 3.85 3.93 3.91 .57 1.00 1.61 1.61 1.65 -.3 9 -.4 9 -1 .6 2 - 7 .7 4 -4 .0 0 .18 .51 -.0 1 -6 .1 3 -2 .3 5 3.73 3.70 3.57 3.53 3.50 3.65 3.62 3.49 3.45 3.42 3.77 3.78 3.85 3.93 3.91 - .1 2 -.1 6 -.3 6 - .4 8 -.4 9 - 1 .8 0 -1 .3 6 -.7 2 - .1 0 -.2 0 -1 .9 2 -1 .5 2 - 1 .0 8 -.5 8 -.6 9 July 7 ............... 14 ............... 2 1 ............... 2 8 ............... 5.41 5.34 5.67 5.69 3.96 3.94 3.85 3.80 1.45 1.40 1.82 1.89 -2 .5 0 - 3 .5 8 -3 .4 3 -3 .4 3 - 1 .0 5 -2 .1 8 -1 .6 1 -1 .5 4 3.56 3.49 3.43 3.46 3.48 3.41 3.33 3.38 3.96 3.94 3.85 3.80 -.4 8 -.5 3 - .5 2 - .4 2 - .0 4 .02 .24 .12 -.5 2 -.5 1 - .2 8 -.3 0 Aug. 4 ............... 11............... 18............... 2 5 ............... 5.71 5.69 5.69 5.75 3.74 3.77 3.80 4.07 1.97 1.92 1.89 1.68 - 3 .5 9 - 2 .9 1 -2 .0 8 - 2 .4 0 -1 .6 2 -.9 9 -.1 9 -.7 2 3.48 3.41 3.44 3.46 3.40 3.34 3.36 3.38 3.74 3.77 3.80 4.07 - .3 4 - .4 3 -.4 4 -.6 9 - .1 6 .00 .00 .00 -.5 0 -.4 3 - .4 4 -.6 9 N o t e . — Treasury bills: All rates are on the latest issue o f 91-day bills. U.S. and Canadian rates are m arket offer rates 11 a.m. Friday; U .K . rates are Friday opening m arket offer rates in London. Premium or discount on forward pound and on forward Canadian dollar: Rates per annum computed on basis o f midpoint quotations (between bid and offer) at 11 a.m. Friday in New Y ork 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 o f New Y ork by market sources. F or description o f series and for back figures, see Oct. 1964 B u l l e t i n , pp. 1241-60. F or description of adjustments to U .K . and C anadian Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260, Oct. 1964 B u l l e t i n . A 96 GOLD RESERVES □ SEPTEMBER 1972 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per fine ouncethrough Apr. 1972 and at $38 per fine ounce thereafter) End o f period 1965. 1966. 1967. 1968. 1969. 1970. 1971—J u ly .. A ug.. Sept.. O c t.., Nov.. D ec1972—Jan.. ., F eb ... M ar.. A p r.. . M ay. . J u n e .. July*. End o f period Esti mated total world i Intl. M one tary Fund United States Esti mated rest o f world Algeria Argen tina 243,230 43,185 41,600 40,905 41,015 41,275 31,869 2,652 2,682 2,288 2,310 4,339 13,806 13,235 12,065 10,892 11,859 11,072 27,285 27,300 26,855 27,725 26,845 25,865 6 6 155 205 205 191 66 84 84 109 135 140 223 224 231 257 263 239 700 701 701 714 715 714 41,210 4,479 4,695 4,722 4,724 4,726 4.732 10,453 10,209 10.207 10.207 10,206 10,206 26,280 26,250' 192 192 192 192 192 192 140 140 140 140 140 90 259 259 259 259 259 259 4.732 5.303 5.304 5,331 5.761 5.761 5.761 10,206 9,662 9,662 26,290 9,662 10.490 10.490 *28*585 10.490 192 192 192 192 208 208 208 90 90 70 70 76 260 260 259 259 282 283 285 41,185 41,260 "*44]835 C o lom bia D en m ark Fin land France G er many, Fed. Rep. of Greece Aus tralia India Aus tria Bel gium Brazil Burma Canada 1,558 1,525 1,480 1,524 1,520 1,470 63 45 45 45 45 45 84 84 84 84 84 63 1,151 1,046 1,015 863 872 791 44 45 45 46 47 47 746 752 722 722 722 729 1,600 1,584 1,572 1,564 1,564 1,544 46 46 46 46 46 46 22 22 22 22 22 22 792 792 792 792 792 792 47 47 47 47 47 47 729 729 729 729 791 792 793 1,544 1,544 1,544 1,544 1,682 1,682 1,682 46 46 46 46 r21 21 20 20 18 16 16 792 792 792 767 836 834 834 47 47 Iran Iraq Ire land Israel Italy Chile Japan 1965............................ 1966............................ 1967............................ 1968............................ 1969............................ 1970............................ 35 26 31 31 26 17 97 108 107 114 89 64 84 45 45 45 45 29 4,706 5,238 5,234 3,877 3,547 3,532 4,410 4,292 4,228 4,539 4,079 3,980 78 120 130 140 130 117 281 243 243 243 243 243 146 130 144 158 158 131 110 106 115 193 193 144 21 23 25 79 39 16 56 46 46 46 46 43 2,404 2,414 2,400 2,923 2,956 2,887 328 329 338 356 413 532 1971---July................. A ug................. Sept................. O ct................... N ov................. D ec.................. 16 14 14 14 14 14 64 64 64 64 64 64 29 49 49 49 49 49 3,523 3,523 3,523 3,523 3,523 3,523 4,077 4,076 4,077 4,077 4,077 4,077 99 99 98 98 98 98 243 243 243 243 243 243 131 131 131 131 131 131 143 143 143 143 143 144 16 16 16 16 16 16 43 43 43 43 43 43 2,884 2,884 2,884 2,884 2,884 2,884 670 679 679 679 679 679 1972—Jan................... Feb.................. M ar................. A pr.................. M ay................ 14 14 14 14 15 16 16 64 64 64 64 69 69 69 49 49 49 49 53 53 53 3,523 3,523 3,523 3,523 3,826 3,826 3,826 4,077 4,077 4,077 4,077 4,437 4,437 4,437 98 98 98 98 132 132 132 243 243 243 243 264 264 131 131 131 131 143 143 143 144 144 144 144 156 156 156 16 16 16 16 17 17 17 43 43 43 43 47 47 2,884 2,884 2,884 2,884 3,131 3,131 3,131 679 711 735 735 801 801 801 M alay sia Mexi co M oroc co N ether lands Philip pines Portu gal Saudi Arabia July*............... End o f period Kuw ait Leb anon Libya N or way Paki stan Peru 1965............................ 1966............................ 1967............................ 1968............................ 1969............................ 1970............................ 52 67 136 122 86 86 182 193 193 288 288 288 68 68 68 85 85 85 2 1 31 66 63 48 158 109 166 165 169 176 21 21 21 21 21 21 1,756 1,730 1,711 1,697 1,720 1,787 31 18 18 24 25 23 53 53 53 54 54 54 67 65 20 20 25 40 38 44 60 62 45 56 576 643 699 856 876 902 73 69 69 119 119 119 1971—July................. Aug................. Sept................. O ct.................. N ov................. D ec.................. 87 87 87 87 87 87 322 322 322 322 322 322 85 85 85 85 85 85 58 58 58 58 58 58 184 184 184 184 184 184 21 21 21 21 21 21 1,888 1,889 1,889 1,889 1,889 1,909 34 34 34 34 34 33 55 55 55 55 55 55 40 40 40 40 40 40 64 65 66 67 67 67 895 907 911 911 918 921 119 127 127 127 127 127 1972—Jan .................. Feb.................. M ar................. A pr.................. M ay................ June ............ J u ly * ............. 87 87 87 89 104 98 94 322 322 322 322 350 350 350 85 85 85 85 93 93 93 58 58 58 58 63 63 181 179 177 174 21 21 21 21 23 23 1,908 1,908 1,908 1,908 2,079 2,079 2,079 33 33 33 33 36 36 36 55 55 55 55 60 40 40 40 40 68 68 68 68 73 72 72 921 921 925 925 1,004 1,004 127 127 127 127 138 138 138 For notes seeend of table. SEPTEMBER 1972 □ GOLD RESERVES AND PRODUCTION A 97 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS— Continued (In millions o f dollars; valued at $35 per fine ounce through Apr. 1972 and at $38 per fine ounce thereafter) End o f period South Africa Spain Sweden Switzer Taiwan land Thai land Turkey U.A.R. (Egypt) U nited K ing dom U ru guay Vene zuela Yugo slavia Bank for Intl. Settle ments 4 1965................................ 1966................................. 1967............... ................ 1968................................ 1969................................. 1970................................. 425 637 583 1,243 1,115 666 810 785 785 785 784 498 202 203 203 225 226 200 3,042 2,842 3,089 2,624 2,642 2,732 55 62 81 81 82 82 96 92 92 92 92 92 116 102 97 97 117 126 139 93 93 93 93 85 2,265 1,940 1,291 1,474 1,471 1,349 155 146 140 133 165 162 401 401 401 403 403 384 19 21 22 50 51 52 -5 5 8 -4 2 4 -6 2 4 -3 4 9 -4 8 0 -2 8 2 1971—July..................... Aug..................... Sept..................... 481 486 479 460 443 410 498 498 498 498 498 498 200 200 200 200 200 200 2,909 2,909 2,909 2,909 2,909 2,909 82 81 81 80 80 80 81 81 82 82 82 82 127 127 127 127 122 130 85 85 85 85 85 85 803 778 778 778 778 775 148 148 148 148 148 148 391 391 391 391 391 391 52 52 52 52 51 51 225 210 215 227 249 310 403 405 405 412 469 506 543 498 498 498 498 541 541 200 200 200 200 217 217 217 2,909 2,909 2,909 2,909 3,158 3,158 3,158 80 80 80 80 87 87 87 82 82 82 82 89 89 89 130 130 129 127 '127 '122 122 85 85 85 85 92 92 778 751 751 751 816 816 146 146 156 156 169 169 169 391 391 391 391 425 425 425 51 51 51 51 56 56 56 332 333 354 347 365 304 276 Nov..................... Dec...................... 1972—Jan ....................... Feb...................... M ar..................... A p r...................... July?*................... 1 Includes reported or estimated gold holdings o f international and regional organizations, central banks and govts, o f countries listed in this table, and also o f a num ber not shown separately here, and gold to be distributed by the Tripartite Commission for the R estitution o f M onetary G old; excludes holdings o f the U.S.S.R., other Eastern European coun tries, and C hina M ainland. The figures included for the Bank for International Settlements are the Bank’s gold assets net o f gold deposit liabilities. This procedure avoids the overstatement o f total world gold reserves since m ost o f the gold deposited with the BIS is included in the gold reserves o f individual countries. 2 Adjusted to include gold subscription payments to the IM F made by some m ember countries in anticipation o f increase in Fund quotas, except those matched by gold mitigation deposits with the United States and U nited K ingdom ; adjustment is $270 million. 3 Excludes gold subscription payments made by some m ember countries in anticipation o f increase in Fund quotas: for m ost o f these countries the increased quotas became effective in Feb. 1966. 4 N et gold assets o f BIS, i.e., gold in bars and coins and other gold assets minus gold deposit liabilities. N o t e . —F or back figures and description o f the data in this and the following tables on gold (except production), see “ G old,” Section 14 o f Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions o f dollars; valued at $35 per fine ounce through 1971 and at $38 per fine ounce thereafter) Africa Period W orld produc tion i 1966............................... 1.445.0 1967................................ 1.410.0 1968................................ 1.420.0 1969................................ 1.420.0 1970................................ 1.4 5 0 .0 1971?.............................. N orth and South America South Africa G hana C ongo (K in shasa) 1 ,080.8 1.068.7 1,088.0 1.090.7 1 ,128.0 1.098.7 24.0 26.7 2 5 .4 24 .8 24.8 24.4 5 .6 5 .4 5 .9 6 .0 6 .2 6 .0 United States Can ada Mex ico 63.1 5 3 .4 53.9 60.1 63.5 114.6 103.7 94.1 89.1 84.3 77.3 7.5 5.8 6.2 6.3 6.9 Asia O ther Nica Colom India ragua bia Japan Philip pines Aus tralia All o th e r1 9 .8 9 .0 8 .4 7.7 7.1 6 .6 4 .2 3 .4 4 .0 3 .4 3.7 4.1 19.4 23.7 21.5 23.7 24.8 27.0 15.8 17.2 18.5 20.0 21.1 22.2 32.1 28 .4 27.6 24.5 21.7 23.5 62.9 59.4 61.6 60.0 54.1 5.2 5.2 4.9 3.7 3.8 1971—June................... Ju ly .................... A ug.................... Sept.................... Oct..................... N ov.................... D ec..................... 92.0 93 .4 92.3 91.3 93.4 91.7 85.7 6.7 5.8 6.3 6.1 6.3 6.6 5.9 .1 1.1 .6 .6 .6 .6 .5 .4 .4 .3 .3 .3 .3 .3 2 .4 2 .4 2 .4 2 .4 2.1 2 .4 2 .2 1.9 2.1 2.1 2.1 2 .0 2.1 2.1 1972—Jan ..................... Feb..................... M ar.................... A pr..................... M ay ................... June................... 95.3 88.2 91.8 9 3.2 9 4 .4 94.3 6.5 6 .4 6 .6 7.5 6.8 6.2 .7 .6 .5 .6 .4 2 .6 2.5 2 .6 3.3 2.3 i Estimated; excludes U.S.S.R., other Eastern European countries, C hina M ainland, and N orth Korea. A 98 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM A r t h u r F. B u r n s, Chairman G e o r g e W. M i t c h e l l John E. S h eehan J. D e w e y D a a n e J. L. R o b e r ts o n , Vice Chairman A n d r e w F. Brimmer Jeffrey M. B ucher R o b e r t C. H o ll a n d , Executive D irector R o b e r t S o lo m o n , A d v ise r to the B oard J. C h a r le s P a r t e e , A d viser to the B oard H o w a rd H. H a c k le y , A ssistan t to the B oard R o b e r t L. C a r d o n , A ssista n t to the B oard E dw in J. J o h n so n , A ssistan t to the B oard F ra n k O ’B r ie n , Jr. , S pecial A ssista n t to the B oard Joseph R. C o y n e , S pecial A ssistan t to the B oard Joh n S. Rippey, S pecial A ssista n t to the B oard OFFICE OF EXECUTIVE DIRECTOR R o b e r t C. H o ll a n d , Executive D irector D a v id C. M e ln ic o f f , D eputy Executive D irector G o rd o n B. G rim w ood , A ssistan t D irecto r and Program D irector fo r Contingency Planning H a r ry J. H a l l e y , Program D irector for M anagem ent System s W illia m W. L a y t o n , D irector o f Equal Em ploym ent Opportunity B r e n to n C. L e a v it t , Program D irector fo r Banking Structure OFFICE OF THE SECRETARY T y n a n S m ith , Secretary M u rr a y A ltm a n n , A ssistan t Secretary N orm and R. V. B e r n a r d , A ssistan t Secretary A r t h u r L. B r o id a , A ssistan t Secretary E liz a b e t h L. C a r m ic h a e l, A ssistan t Secretary M ic h a e l A. G r een sp a n , A ssistan t Secretary LEGAL DIVISION Thom as J. O ’C o n n e l l, G eneral Counsel P a u l G a r d n e r , Jr. , A ssistan t G eneral Counsel P a u lin e B. H e l l e r , A ssistan t G eneral Counsel R o b e r t S. P lo t k in , A dviser DIVISION OF FEDERAL RESERVE BANK OPERATIONS James A. M c In to sh , D irector Joh n N. K ile y , Jr. , A ssociate D irector W a lt e r A. A lt h a u s e n , A ssistan t D irecto r D o n a ld G. B a r n e s, A ssistan t D irector H a r ry A. G u in te r , A ssistan t D irector P. D. R in g, A ssistan t D irector James L. V in in g , A ssistan t D irector C h a r le s C. W a l c u t t , A ssistan t D irector E. M a u rice M c W h ir te r , Chief Federal R eserve Examiner DIVISION OF RESEARCH AND STATISTICS J. C h a r le s P a r t e e , D irecto r S te p h e n H. A x ilr o d , A ssociate D irector S a m u el B. C h a se , A sso cia te D irector L y le E. G r a m le y , A sso cia te D irecto r P e t e r M. K eir, A d viser James L. P ie r c e , A d viser S t a n le y J. S ig e l, A d viser M u rr a y S. W er n ick , A d viser K e n n e th B. W illia m s, A d viser James B. E c k e r t, A ssociate A d viser Joseph S. Z e is e l, A sso cia te A d viser E d w ard C. E t t in , A ssistan t A d viser E le a n o r J. S t o c k w e l l , A ssistan t A d viser S te p h en P. T a y lo r , A ssista n t A d viser L ou is W e in e r , A ssista n t A d viser L ev o n H. G a r a b e d ia n , A ssistan t D irecto r DIVISION OF INTERNATIONAL FINANCE R a lp h C. B r y a n t , D irecto r Joh n E. R e y n o ld s , A sso cia te D irecto r A. B. H e rse y , Senior A d viser R o b e r t F. G em m ill, A d viser R eed J. I r v in e ,A d viser S a m u el I. K a t z , A d viser B e r n a r d N o r w o o d , A d viser S a m u el P iz e r , A d viser R a lp h C. W o o d , A d viser George B. Henry, Assistant Adviser H elen B. Junz, Assistant Adviser DIVISION OF SUPERVISION AND REGULATION F r e d e r ic S o lo m o n , D irector B r e n to n C. L e a v it t , D eputy D irecto r F re d e ric k R. D a h l , A ssistan t D irector Jack M. E g e r t s o n , A ssista n t D irecto r Joh n P. F la h e r t y , A ssista n t D irector J a n e t O. H a r t, A ssistan t D irecto r Joh n N. L y o n , A ssista n t D irector Joh n T. M c C lin to c k , A ssistan t D irector Thom as A. Sidm an, A ssista n t D irector C h a r le s L. M a r in a c c io , A d viser A 99 BOARD OF GOVERNORS Continued DIVISION OF PERSONNEL ADMINISTRATION R o n a ld G. B u r k e , D irector Joh n J. H a r t, A ssistan t D irector OFFICE OF THE CONTROLLER Jo h n K a k a le c , C ontroller H a r r y J. H a l l e y , D epu ty Controller DIVISION OF DATA PROCESSING DIVISION OF ADMINISTRATIVE SERVICES Joseph E. K e l l e h e r , D irector W a lt e r W. K reim an n , D eputy D irector D o n a ld E. A n d e r so n , A ssistan t D irector J oh n D. S m ith , A ssistan t D irector J e r o ld E. S lo c u m , D irecto r C h a r le s L. H am pton , A sso cia te D irecto r G le n n L. Cummins, A ssista n t D irecto r B enjam in R. W . K n o w le s , J r., A ssista n t D irector H e n r y W. M e e t z e , A ssista n t D irecto r R ich a rd S. W a t t , A ssista n t D irecto r E d w a rd K. O ’C o n n o r , A ssistan t D irector A 100 FEDERAL OPEN MARKET COMMITTEE A r t h u r F. B u r n s, Chairman A lf r e d H a y e s, Vice Chairman A n d re w F. Brimmer J. D e w e y D a a n e J. L. R o b e r tso n Jeffrey M. B ucher D avid P. E astburn John E. S heehan P h ilip E. C o l d w e l l B r u c e K. M a c L a u ry W ill is J. W in n G eorge W. M itchell R o b e r t C. H o l l a n d , Secretary A r t h u r L. B r o id a , D eputy Secretary M u rr a y A lt m a n n , A ssistan t Secretary R o b e r t S o lo m o n , Econom ist (International Finance) E d w a rd G. B o e h n e , A sso cia te Econom ist R a lp h C. B r y a n t , A sso cia te Econom ist N orm and R. V . B e r n a r d , A ssistan t Secretary L y le E. G r a m le y , A sso cia te Econom ist H o w a r d H. H a c k le y , G eneral Counsel R a lp h T. G r e e n , A sso cia te Econom ist Thom as J. O ’C o n n e l l , A ssistan t G eneral Counsel A. B. H e r se y , A sso cia te Econom ist J. C h a r le s P a r t e e , Senior Econom ist W illia m J. H o c t e r , A sso cia te Econom ist TT A „ S te p h e n H. A x ilr o d , Econom ist (D om estic Finance) Joh n H. K a r e k e n , A sso cia te Econom ist R o b e r t G. L ink , A sso cia te Econom ist A la n R. H o lm e s, M an ager, System Open M arket A ccou nt C h a r le s A. Coombs, Special M an ager, System Open M arket A ccount FEDERAL ADVISORY COUNCIL A. W. C la u s e n , t w e l f t h f e d e r a l r e s e r v e d is t r ic t , President G. M o rris D o r r a n c e , J r., t h ir d f e d e r a l r e s e r v e d is t r ic t , Vice P resident James F. E n g lish , first federal reserve district D avid R ockefeller , D avid H. M orey , second John S. F ang bo ner , fourth federal C hester C. L in d , nin th federal reserve district fifth federal reserve district M orris F. M iller , ten th federal reserve district H arry H ood B assett , eighth federal reserve district reserve district reserve district seventh federal reserve district federal reserve district Joseph W. B arr , G aylord F reem an , sixth federal L ewis H. B o n d , eleventh federal reserve district H e r b e r t V. P r o c h n o w , Secretary W illia m J. K o rsv ik , A ssista n t Secretary A 101 FEDERAL RESERVE BANKS AND BRANCHES F e d e ra l R e s e rv e B a n k , b ra n c h , o r fa c ility Z ip code C h airm a n D e p u ty C h airm an P resid e n t F irst V ice P resid e n t B o sto n ......................... 02106 Jam e s S. D u e se n b e rry L o u is W . C ab o t F ra n k E . M o rris E arle O . L ath am N ew Y o r k ................... 10045 R o sw e ll L . G ilp a tric E lliso n L . H a za rd M o rto n A d am s A lfred H ayes W illia m F . T reib er 19101 B ay a rd L . E n g lan d Jo h n R . C o le m an D a v id P. E a stb u rn M ark H . W illes C le v e la n d .................. 44101 4 5201 15230 A lb e rt G . C lay J. W ard K e en e r G rah am E . M arx L a w re n c e E . W alk ley W illis J. W in n W alter H . M ac D o n a ld C in c in n ati ............. P ittsb u rg h ............. R o b ert W . L a w so n , Jr. S tu a rt S h u m ate Jo h n H . F e ttin g , Jr. C h arles W . D eB ell A u b re y N . H eflin R o b e rt P. B lack Jo h n C . W ilso n H . G . P a ttillo D avid M ath ew s H en ry K . S tan fo rd Jo h n C . T u n e , Jr. B ro a d u s N . B u tler M o n ro e K im b rel K y le K . F o ssu m E m erso n G . H ig d o n W illiam H . F ran k lin P eter B . C lark R o b ert P. M ay o E rn est T . B au g h m an F red e ric M . P eirce Sam C o o p er R o lan d R . R em m el D a rry l R . F ran cis E u g e n e A . L eo n ard B u f f a lo .................... ....1 4 2 4 0 P h ila d e lp h ia ............ R i c h m o n d ......................... 23261 B a l tim o r e ...................... 21203 C h a r lo tte ........................28201 C u lp ep er C om m un ications C e n te r ........................22701 A tla n ta ....................... 3 0303 B ir m in g h a m .......... Jac k so n v ille .......... N a s h v ille ................. N ew O r le a n s .......... M ia m i O ffice .......... 35 2 0 2 3 2203 37203 70160 33101 C h ic a g o ....................... 60690 D e tr o it...................... 48231 S t. L o u i s ...................... 63166 L ittle R o c k .............. L o u i s v ille ............... M e m p h is ................. 7 2203 4 0201 38101 M in n e a p o lis .............. 55480 H e le n a ...................... 59601 K a n s a s C i t y ............... 64198 D e n v er .................... O k la h o m a C ity .... O m a h a .................... 80217 73125 68102 D a l l a s ........................... 75222 E l P a s o .................... H o u s t o n .................. San A n to n io .......... 79999 77001 78295 S a n F r a n c i s c o ........... 94120 L os A n g e le s .......... P o r tla n d .................. Salt L ak e C i t y ....... S e a t t l e ...................... 90051 97 2 0 8 84110 98124 A . A . M a c ln n e s, Jr. F red O . K iel Jam e s H . C am p b ell H . L ee B o a tw rig h t, III J im m ie R . M o n h o llo n J. G o rd o n D ic k e rso n , Jr. D a n L . H e n d ley E d w a rd C . R ain ey Jeffre y J. W ells G e o rg e C . G u y n n W . M . D avis D an iel M . D oyle Jo h n F . B reen D o n a ld L . H e n ry L a u re n c e T . B ritt W illiam L . G iles D a v id M . L illy B ru ce B . D a y to n W arre n B . Jo n es B ruce K . M ac L a u ry M . H . S tro th m a n , Jr. R o b ert W . W ag staff W illard D . H o sfo rd , Jr. D a v id R . C . B ro w n J o se p h H . W illia m s H e n ry Y . K le in k a u f G e o rg e H . C lay Jo h n T . B oy sen C h as. F . Jo n es P h ilip G . H o ffm an A llan B . B o w m an G eo . T . M o rse , Jr. Irv in g A . M ath e w s P h ilip E . C oldw ell T . W . P lant O . M ered ith W ilso n S. A lfred H a lg re n L e la n d D . P ratt Jo h n R . H o w ard Jo h n H . B re ck e n rid g e C . H e n ry B a c o n , Jr. V ice P resid e n t in ch arg e o f b ran ch H o w ard L . K nous G e o rg e C . R an k in H o w ard W . P ritz R o b ert D . H a m ilto n F red e ric W . R eed Jam e s L . C au th en C arl H . M o o re A . B . M erritt P aul W . C av a n W illia m M . B ro w n A rth u r L . P rice W illia m R . S a n d stro m A 102 FEDERAL RESERVE BOARD PUBLICATIONS A v a i l a b l e f r o m P u b lic a tio n s S e r v ic e s , D iv is i o n o f A d m in is tr a tiv e S e r v ic e s , B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s te m , W a s h i n g to n , D .C . 2 0 5 5 1 . 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A lim ited supply of the follow ing m im eo graphed p a p er is available upon request for single copies: ACADEMIC VIEWS ON IMPROVING THE FEDERAL RESERVE DISCOUNT MECHANISM. 1970. 172 pp. STAFF ECONOMIC STUDIES Studies and papers on econom ic and financial subjects that are of general interest in the field o f econom ic research. Summaries only printed in the BULLETIN. (Lim ited supply of m im eographed copies of full text available upon request for single copies.) MEASURES OF INDUSTRIAL PRODUCTION AND A 103 FINAL DEMAND, by Clayton Gehman and Corne lia Motheral. Jan. 1967. 57 pp. OPERATING POLICIES OF BANK HOLDING COMPA NIES—PART 1, by Robert J. Lawrence. Apr. 1971, 82 pp. THE RELATIVE IMPORTANCE OF MONETARY AND FISCAL VARIABLES IN DETERMINING PRICE LEVEL MOVEMENTS: A NOTE, by Peter S. Rose and Lacy H. Hunt II. June 1971. 7 pp. ESTIMATION OF THE INVESTMENT AND PRICE EQUATIONS OF A MACROECONOMETRIC MODEL, by Robert J. Shiller. 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Mar. 1972. 74 pp. EXPLAINING CHANGES IN EURO-DOLLAR POSI TIONS: A STUDY OF BANKS IN FOUR EUROPEAN COUNTRIES, by Rodney H. M ills, Jr. May 1972. 34 pp. CREDIT RATIONING: A REVIEW, by Benjamin M. Friedman. June 1972. 27 pp. REGULATION Q AND THE COMMERCIAL LOAN MAR KET IN THE 1960’s, by Benjamin M. Friedman. June 1972. 38 pp. FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 A 104 Printed ini full in the BULLETIN. (These studies are included in list of reprints below .) UNDERWRITING OF MUNICIPAL REVENUE BONDS. Aug. 1967. 16 pp. REPRINTS THE FEDERAL RESERVE-MIT ECONOMETRIC MODEL, Staff E conom ic Study by Frank de Leeuw and Edward Gramlich. Jan. 1968. 30 pp. ADJUSTMENT FOR SEASONAL VARIATION. June 1941. 11 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1960-67. Apr. 1968. 23 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. Feb. 1958. 12 pp. MONETARY RESTRAINT AND BORROWING AND CAPITAL SPENDING BY LARGE STATE AND LOCAL GOVERNMENTS IN 1966. July 1968. 30 pp. LIQUIDITY AND PUBLIC POLICY, Staff P aper by Stephen H. Axilrod. Oct. 1961. 17 pp. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. July 1962. 6 pp . INTEREST RATES AND MONETARY POLICY, Staff Paper by Stephen Axilrod. Sept. 1962. 28 pp. MEASURES OF MEMBER BANK RESERVES. July 1963. 14 pp. CHANGES IN BANKING STRUCTURE, 1953-62. Sept. 1963. 8 pp. REVISION OF BANK DEBITS AND DEPOSIT TURN OVER SERIES. Mar. 1965. 4 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff E conom ic Study by Lyle E. Gramley and Sa muel B. Chase, Jr. Oct. 1965. 25 pp. RESEARCH ON BANKING STRUCTURE AND PER FORMANCE, Staff E conom ic Study by Tynan Smith. Apr. 1966. 11 pp. A REVISED INDEX OF MANUFACTURING CAPACITY, Staff E conom ic Study by Frank de Leeuw with Frank E. Hopkins and Michael D. Sherman. N ov. 1966. 11 pp. THE ROLE OF FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS, Staff E conom ic Study by Daniel H. Brill with Ann P. Ulrey. Jan. 1967. 14 pp. REVISED SERIES ON COMMERCIAL AND INDUS TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. 1967. 26 pp. EVIDENCE ON CONCENTRATION IN BANKING MAR KETS AND INTEREST RATES, Staff E conom ic Study by Almarin Phillips. June 1967. 11 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON MEMBER BANKS. July 1967. 6 pp. INTEREST COST EFFECTS OF COMMERCIAL BANK FEDERAL FISCAL POLICY IN THE 1960’s. Sept. 1968. 18 pp. BUSINESS FINANCING BY BUSINESS FINANCE COM PANIES. Oct. 1968. 13 pp. MANUFACTURING CAPACITY: A COMPARISON OF TWO SOURCES OF INFORMATION, Staff Econom ic Study by Jared J. Enzler. N ov. 1968. 5 pp. MONETARY RESTRAINT, BORROWING, AND CAPITAL SPENDING BY SMALL LOCAL GOVERNMENTS AND STATE COLLEGES IN 1966. Dec. 1968. 30 pp. REVISION OF CONSUMER CREDIT STATISTICS. D ec. 1968. 21 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. 7 pp. OUR PROBLEM OF INFLATION. June 1969. 15 pp. THE CHANNELS OF MONETARY POLICY, Staff Econom ic Study by Frank de Leeuw and Edward Gramlich. June 1969. 20 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL BANKS. Aug. 1969. 5 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. 20 pp. RECENT CHANGES IN STRUCTURE OF COMMER CIAL BANKING. Mar. 1970. 16 pp. SDR’s IN FEDERAL RESERVE OPERATIONS AND STATISTICS. May 1970. 4 pp. INFLATION IN WESTERN EUROPE AND JAPAN. Oct. 1970. 13 pp. MEASURES OF SECURITY CREDIT. D ec. 1970. 11 pp. MONETARY AGGREGATES AND MONEY MARKET CONDITIONS IN OPEN MARKET POLICY. Feb. 1971. 26 pp. FEDERAL RESERVE BOARD PUBLICATIONS A 105 BANK FINANCING OF MOBILE HOMES. Mar. 1971. 4 pp. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS. Feb. 1972. 16 pp. RESPONSE OF STATE AND LOCAL GOVERNMENTS TO VARYING CREDIT CONDITIONS. Mar. 1971. 24 pp. WAYS TO MODERATE FLUCTUATIONS IN THE CON STRUCTION OF HOUSING. Mar. 1972. 11 pp. INTEREST RATES, CREDIT FLOWS, AND MONETARY AGGREGATES SINCE 1964. June 1971. 16 pp. TWO KEY ISSUES OF MONETARY POLICY. June 1971. 4 pp. SURVEY OF DEMAND DEPOSIT OWNERSHIP. June 1971. 12 pp. BANK RATES ON BUSINESS SERIES. June 1971. 10 pp. LOANS—REVISED INDUSTRIAL PRODUCTION—REVISED AND NEW MEASURES. July 1971. 26 pp. BANKING AND MONETARY STATISTICS, 1970. Se lected series of banking and monetary statistics for 1970 only. F eb., Mar., and July 1971. 19 pp. REVISED MEASURES OF MANUFACTURING CAPAC ITY UTILIZATION. Oct. 1971. 3 pp. REVISION OF THE MONEY STOCK. N ov. 1971. 14 pp. BALANCE OF PAYMENTS PROGRAM: REVISED GUIDELINES FOR BANKS AND NONBANK FINAN CIAL INSTITUTIONS. N ov. 1971. 11 pp. REVISION OF BANK CREDIT SERIES. D ec. 1971. 5 pp. PLANNED AND ACTUAL LONG-TERM BORROWING BY STATE & LOCAL GOVERNMENTS. D ec. 1971. 11 pp. U.S. BALANCE OF PAYMENTS AND INVESTMENT POSITION. Apr. 1972. 15 pp. OPEN MARKET OPERATIONS AND THE MONETARY AND CREDIT AGGREGATES—1971. Apr. 1972. 23 pp. CHANGES IN BANK LENDING PRACTICES, 1971. Apr. 1972. 5 pp. CONSTRUCTION LOANS AT COMMERCIAL BANKS. June 1972. 12 pp. SOME ESSENTIALS OF INTERNATIONAL MONETARY REFORM. June 1972. 5 pp. CHARACTERISTICS OF FEDERAL RESERVE BANK DIRECTORS. June 1972. 10 pp. CHANGES IN TIME AND SAVINGS DEPOSITS AT COMMERCIAL BANKS, JANUARY-APRIL 1972. July 1972. 11 pp. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN OVER-REVISED SERIES. July 1972. 5 pp. RECENT REGULATORY CHANGES IN RESERVE RE QUIREMENTS AND CHECK COLLECTION. July 1972. 5 pp. FINANCIAL DEVELOPMENTS IN THE SECOND QUARTER OF 1972. August 1972. 9 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX CHANGE OPERATIONS. Sept. 1972. 26 pp. YIELDS ON NEWLY ISSUED CORPORATE BONDS. Sept. 1972. 2 pp. A 106 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 INDEX TO STATISTICAL TABLES A c c e p ta n c e s , b a n k e rs ’, 14, 3 3 , 35 A g ricu ltu ral lo an s of c o m m e rc ial b a n k s, 2 4 , 26 A rb itrag e, 95 A ssets and liab ilities (S ee also F o reig n ers): B an k s, by c la sses, 2 0 , 2 4 , 2 5 , 2 6 , 39 B an k s and th e m o n etary sy ste m , 19 C o rp o ra te , c u rren t. 50 F ed eral R ese rv e B an k s, 12 A u to m o b iles: C o n su m e r in sta lm en t c re d it, 5 6 , 5 7 , 58 P ro d u ctio n in d ex , 6 0 , 61 B a n k c red it p ro x y , 18 B a n k e rs’ b a la n ce s, 2 5 , 28 (See a lso F o reig n e rs, claim s o n , and liab ilities to) B an k s an d th e m o n etary sy ste m , 19 B an k s for c o o p erativ es, 40 B o n d s (See also U .S . G o v t, secu rities): N ew issu es, 4 7 , 4 8 , 4 9 Y ield s and p ric e s, 3 6 , 37 B ran ch b a n k s, fo reig n , 3 0, 8 8, 8 9 , 90 B ro k erag e b a la n ce s, 87 B u sin ess e x p en d itu re s on new p la n t and e q u ip m e n t, 50 B u sin ess in d e x e s, 64 B u sin ess lo an s (S ee C o m m ercial and in d u strial loans) (R eferences are to pages A-4 through A-97 although the prefix “ A ” is omitted in this in d e x ) (F or list o f tab les p u b lish ed p e rio d ic a lly , but not m o n th ly , see page A -3) C a p a c ity u tiliz a tio n , 64 C ap ital accounts: B an k s, b y c lasses, 2 0 , 2 5 , 30 F ed eral R ese rv e B an k s, 12 C en tral b a n k s, 9 4 , 96 C ertificates o f d e p o sit, 30 C o in s, c irc u la tio n , 16 C o m m ercial and in d u strial loans: C o m m ercial b a n k s, 18, 2 4 , 33 W eek ly rep o rtin g b a n k s, 2 6 , 31 C o m m ercial b an k s: A ssets and lia b ilities, 18, 2 0 , 2 4 , 2 5 , 26 C o n su m er lo an s h eld , by ty p e, 57 D ep o sits at, for p a y m e n t o f p e rso n al lo a n s, 32 L oans sold o u trig h t, 33 N u m b e r, by c la sses, 20 R eal estate m o rtg ag es h eld , by ty p e , 52 C o m m ercial p a p er, 33., 35 C o n d itio n statem en ts (S ee A ssets and liab ilities) C o n stru ctio n , 6 4 , 65 C o n su m er cred it: In stalm en t c re d it, 5 6 , 5 7 , 5 8 , 59 N o n in stalm en t c re d it, by h o ld e r, 57 C o n su m er p rice in d e x e s, 6 4 , 68 C o n su m p tio n ex p en d itu re s, 7 0 , 71 C o rp o ratio n s: Profits, tax es, and d iv id e n d s, 50 S ecu rity issu es, 4 8 , 49 S ecu rity y ield s and p ric e s, 3 6 , 37 C o st o f living (See C o n su m e r p rice in d ex es) C u rren cy and c o in , 5, 10, 25 C u rren cy in c irc u la tio n , 5 , 16, 17 C u sto m er c re d it, stock m a rk e t, 38 D e b its to d ep o sit a cc o u n ts, 15 D eb t (S ee specific ty p es o f d eb t or secu rities) D em an d dep o sits: A d ju sted , b an k s an d th e m o n etary sy stem , 19 A d ju sted , c o m m e rc ial b a n k s, 15, 18, 25 B an k s, by c la sses, 11, 2 0 , 2 5 , 29 D em an d s dep o sits— C o n tin u ed O w n ersh ip by in d iv id u a ls, p a rtn e rsh ip s, and co rp o ra tio n s, 32 S u b ject to reserve re q u ire m e n ts, 18 T u rn o v er, 15 D eposits (S ee a lso specific types of d eposits): A ccu m u lated at co m m e rc ial banks for pa y m e n t o f p e r sonal lo a n s, 32 A d ju sted , and c u rre n c y , 19 B an k s, by c la sses, 11, 2 0 , 2 5 , 29 , 39 E u ro -d o lla rs, 90 Federal R eserv e B an k s, 12, 90 P ostal sav in g s, 19, 25 S ubject to reserv e re q u ire m e n ts, 18 D isco u n t rates (See In te re st rates) D isco u n ts and a dvances by R ese rv e B anks (S ee L oans) D iv id e n d s, c o rp o ra te , 50 D ollar a sse ts, fo reig n , 7 7 , 83 E a r n in g s and h o u rs, m a n u fa c tu rin g in d u strie s, 67 E m p lo y m en t, 64 , 66, 67 E u ro -d o llar dep o sits in fo reig n b ran ch es of U .S . b a n k s, 90 F a r m m ortgage lo a n s, 51 , 52 Federal agency o b lig a tio n s, 12, 13, 14, 15 F ederal finance: C ash tra n sac tio n s, 42 R eceip ts and e x p en d itu re s, 43 T reasu ry o p e ra tin g b a la n ce , 42 F ederal fu n d s, 8, 24 , 26 , 30, 35 F ederal hom e loan b a n k s, 4 0 , 4 1 , 53 F ederal H om e L oan M o rtg a g e C o rp o ra tio n , 55 F ederal H o u sin g A d m in istra tio n , 51, 52, 53, 54, 55 Federal in term ed iate c re d it b a n k s, 4 0 , 41 F ederal land b a n k s, 4 0 , 41 F ederal N ational M o rtg ag e A ss n ., 4 0 , 4 1 , 54 Federal R eserve B anks: C ond itio n statem e n t, 12 U .S . G ovt, secu rities h e ld , 4 , 12, 15, 4 4 , 45 F ederal R eserve c re d it, 4 , 6 , 12, 15 F ederal R eserv e n o te s, 12, 16 F ed erally sp o n so red cre d it ag en c ie s, 4 0 , 41 F inance com p an ies: L o a n s, 26, 56, 57 , 59 P ap er, 33, 35 F inancial in stitu tio n s, loans to , 2 4 , 26 F lo a t, 4 F low of fu n d s, 72 F oreign: C u rren cy o p e ra tio n s, 12, 14, 77, 83 D eposits in U .S . b a n k s, 5, 12, 19, 25, 29 , 90 E x ch an g e ra te s, 93 T rad e , 75 F oreigners: C laim s o n , 8 4 , 85 , 9 0 , 9 1 , 92 L iabilities to , 30, 7 8 , 7 9 , 81, 82, 83, 9 0 , 9 1 , 92 G o ld : C ertificates, 12, 13, 16 E a rm ark ed , 90 N et p u rc h a se s by U n ited S tates, 76 P ro d u ctio n , 97 R eserv es of cen tral b an k s and g o v ts ., 96 S to c k , 4 , 19, 77 G o v e rn m e n t N a tional M o rtg a g e A ss n ., 54 G ross n ational p ro d u c t, 7 0 , 71 A 107 N a tio n a l b an k s, 2 2 , 32 N atio n al in c o m e , 7 0 , 71 N a tional d efen se e x p en d itu re s, 4 3 , 70 N o n m em b er b a n k s, 2 2 , 2 4 , 2 5 , 32 O p e n m ark et tra n sac tio n s, 14 P a y ro lls , m a n u fa c tu rin g in d e x , 64 P ersonal in c o m e , 71 P ostal sav in g s, 19, 25 P rices: C o n su m e r and w h o lesale c o m m o d ity , 6 4 , 68 S e c u rity , 37 P rim e ra te , co m m ercial b an k s, 34 T a x re c eip ts, F e d e ra l, 43 T im e d e p o sits, 11, 18, 19, 2 0 , 2 5 , 29 T reasu ry cash , T reasu ry c u rre n c y , 4 , 5 , 16, 19 T rea su ry d e p o sits, 5 , 12, 42 T reasu ry o p e ra tin g b a la n ce , 42 U n e m p lo y m e n t, 66 U .S . b alan ce o f p a y m e n ts, 74 U .S . G o v t, b alances: C o m m ercial bank h o ld in g s, 25 , 29 C o n so lid ate d c o n d itio n statem e n t, 19 M em b e r b ank h o ld in g s, 18 T rea su ry dep o sits at R eserv e B an k s, 5, 12, 42 U .S . G ovt, securities: B an k h o ld in g s, 19, 2 0 , 24, 27, 39, 4 4 , 45 D e ale r tra n sac tio n s, p o sitio n s, and financing, 4 6 F ed eral R eserve B ank h o ld in g s, 4 , 12, 15, 4 4 , 45 F o reig n and intern atio n al h o ld in g s, 12, 83 , 86 , 90 In tern atio n al tra n sac tio n s, 83, 86 N ew issu e s, gross p ro c e ed s, 48 O pen m a rk e t tra n sac tio n s, 14 O u tstan d in g , by type of sec u rity , 4 4 , 4 5 , 47 O w n ersh ip , 4 4 , 45 Y ields and pric e s, 36, 37 U nited S tates no tes, 16 U tilities, p ro d u ctio n in d e x , 6 1 , 63 V e te r a n s A d m in istra tio n , 51 , 52, 53 , 5 4 , 55 W e e k ly re p o rtin g b a n k s, 26 Y ie ld s (S ee In te re st rates) in this in d e x ) is omitted “ A” prefix the although A-97 through M a n u f a c tu r e r s : C ap acity u tiliz a tio n , 64 P ro d u ctio n in d ex , 6 1 , 64 M argin re q u ire m e n ts, 10 M em b er ban k s: A ssets and lia b ilities, b y c la sses, 2 0, 24 B o rro w in g s at F ed eral R eserv e B an k s, 6 , 12 D e p o sits, by c la sses, 11 N u m b e r, b y c la sses, 20 R eserv e o sitio n , b a sic , 8 R eserv e re q u ire m e n ts, 10 R eserv es and related ite m s, 4 , 18 M in in g , p ro d u c tio n in d ex , 6 1 , 63 M obile h o m e sh ip m e n ts, 65 M oney rates (S ee In terest rates) M oney sto ck and related d a ta , 17, 19 M ortg ag es (S ee R eal estate lo an s and R esid e n tia l m o rtg ag e loans) M utual fu n d s (S ee In v e stm e n t co m p an ies) M utual sav in g s b a n k s, 19, 2 9 , 3 9, 4 4 , 4 5 , 52 S a v in g : Flow of funds series, 72 N atio n al incom e series, 71 Savings and loan a ss n s., 4 0 , 4 5 , 53 Savings dep o sits (S ee T im e d e posits) Savings in stitu tio n s, prin cip al a sse ts, 39 , 40 S ecurities (S ee also U .S . G o v t, securities): F e d e ra lly sponsored a g en c ie s, 4 0 , 41 I n t e r n a t i o n a l t r a n s a c t i o n s , 6 , 87 N ew issu e s, 4 7 , 4 8 , 49 S ilver c o in , 16 S pecial D ra w in g R ig h ts, 4 , 12, 13, 19, 74 , 77 State and local go v ts.: D e p o sits, 25 , 29 H old in g s of U .S . G ovt, sec u rities, 4 4 , 45 N ew security issues, 4 7 , 48 O w n ersh ip of securities o f, 24 , 28 , 39 Y ields and prices of sec u rities, 3 6 , 37 State m e m b e r b a n k s, 22 , 32 Stock m a rk e t c re d it, 38 Stocks: N ew issu e s, 4 8 , 49 Y ields and p ric e s, 36 , 37 A-4 L a b o r fo rce , 66 L oans (S ee also specific ty p es o f loans): B an k s, b y c la sses, 2 0 , 2 4 , 2 6 , 2 7, 39 C o m m ercial b a n k s, 18, 2 0 , 2 4 , 2 6 , 2 7 , 3 1 , 3 3 , 34 F ed eral R eserv e B an k s, 4 , 6 , 9 , 12, 13, 15 In su ran ce co m p a n ies, 3 9 , 5 2 , 53 In
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