Full text of H.16 Capital Market Developments : June 18, 1962

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Not f o r P u b l i c a t i o n DECONTROLLED AFTER SIX MONTHS
June 1 8 , 1962.

ti.lh
^CAPITAL MARKET DEVELOPMENTS
"nrrflE UNITED STATES
J UN 20
FEDEXS -,S:ori\

1962

(

BANK

tg Monthly Review of Sources and Uses
of F i n a n c i a l I n t e r m e d i a r i e s )

P u b l i c s e c u r i t y f i n a n c i n g t o o b t a i n new c a p i t a l was f a i r l y
s u b s t a n t i a l l a s t week and i s expected t o be moderately l a r g e r t h i s week.
During t h e week ending June 1 5 , t h r e e l a r g e c o r p o r a t e s e c u r i t y i s s u e s
t o t a l i n g $ 8 0 m i l l i o n were o f f e r e d and t h r e e S t a t e and l o c a l government
bond i s s u e s w i t h p a r v a l u e of $125 m i l l i o n were s o l d . This week, ending
June 22, f o u r c o r p o r a t e s e c u r i t y i s s u e s , i n c l u d i n g an e x p i r i n g r i g h t s
o f f e r , t o t a l i n g $220 m i l l i o n a r e scheduled and t h e Government of A u s t r a l i a
i s p l a n n i n g t o s e l l a $25 m i l l i o n bond i s s u e ; no l a r g e S t a t e and l o c a l
bond i s s u e s a r e on t h e c a l e n d a r .
Bond y i e l d s . Changes i n y i e l d s on seasoned, l o n g - t e r m bond
i s s u e s were mixed b u t minor l a s t week. Y i e l d s on A a a - r a t e d c o r p o r a t e bonds
remained s t a b l e a t 1*.28 p e r c e n t w h i l e y i e l d s on B a a - r a t e d i s s u e s i n c r e a s e d
an a d d i t i o n a l b a s i s p o i n t t o 5 . 0 1 p e r c e n t . Y i e l d s on b o t h Aaa- and Baar a t e d S t a t e and l o c a l government bonds i n c r e a s e d a s i n g l e b a s i s p o i n t
f u r t h e r t o 3 . 0 6 and 3 . 6 5 p e r c e n t , r e s p e c t i v e l y . Y i e l d s on U„ s . Government
bonds d e c l i n e d one b a s i s p o i n t t o 3.87 p e r c e n t .
Average y i e l d s on new c o r p o r a t e bonds, a d j u s t e d t o an Aaa b a s i s ,
were I4..I2 p e r c e n t l a s t week. At t h i s l e v e l y i e l d s were 10 b a s i s p o i n t s
above t h i s y e a r ' s low reached i n m i d d a y .
___
S h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s . Y i e l d s on 3-month
and 6-month Treasury b i l l s i n c r e a s e d U and 2 b a s i s p o i n t s , r e s p e c t i v e l y ,
l a s t week, b u t y i e l d s on 3 - 5 y e a r U. S. Government o b l i g a t i o n s d e c l i n e d U
b a s i s p o i n t s . The a v e r a g e r a t e of i n t e r e s t on d i r e c t l y - p l a c e d f i n a n c e
company p a p e r with 90-179 day m a t u r i t y i n c r e a s e d one b a s i s p o i n t t o 3.00
p e r c e n t , r e f l e c t i n g t h e f u l l e f f e c t of t h e r a t e change of t h e p r e v i o u s week.
The F e d e r a l f u n d s r a t e i n c r e a s e d 65 b a s i s p o i n t s from t h e . r e v i s e d average
f o r t h e p r e v i o u s week t o 2 . 8 0 p e r c e n t . Other s h o r t - and i n t e r m e d i a t e - t e r m
i n t e r e s t r a t e s were unchanged.
Mortgage y i e l d s and c o n t r a c t i n t e r e s t r a t e s . Secondary market
y i e l d s on 5 - 1 / u p e r c e n t FHA mortgages continued downward i n May f o r t h e
f o u r t h c o n s e c u t i v e month. At 5.62 p e r c e n t , y i e l d s were 10 b a s i s p o i n t s
below t h e a v e r a g e of l a s t January and 8 b a s i s p o i n t s under t h e l e v e l i n
mid-1961 when t h e 5 - l A p e r cent maximum was r e e s t a b l i s h e d .
O f f e r i n g y i e l d s on new c o r p o r a t e b o n d s — a d j u s t e d t o an JLaa b a s i s —
a l s o d e c l i n e d f u r t h e r i n May, b u t t h e d e c l i n e was l a r g e r t h a n i n mortgage
y i e l d s so t h e spread between mortgage and bond y i e l d s widened t o 153
b a s i s p o i n t s . This compares w i t h a spread of 127 b a s i s p o i n t s l a s t Januaxy
and a low of 108 l a s t J u l y .




Based on a survey conducted by the Federal home Loan Bank &oard,
c o n t r a c t i n t e r e s t r a t e s on conventional loans made by l a r g e savings and
loan a s s o c i a t i o n s in e a r l y May averaged 6.03 per cent f o r new homes, 6,24
per cent f o r e x i s t i n g houses, and 6.15 p e r cent f o r c o n s t r u c t i o n . These
r a t e s were l i t t l e changed from those f o r previous months, but were somewhat
below a year e a r l i e r f o r new home and construction l o a n s . Average f e e s
and commission charges which tend to be more s e n s i t i v e t o p r e v a i l i n g market
conditions than c o n t r a c t i n t e r e s t r a t e s , a r e a l s o included i n t h e Bank
Board survey. Calculated as a p e r cent of loan volume, t h e s e were below
y e a r - e a r l i e r l e v e l s f o r a l l t h r e e types of l o a n s , and p a r t i c u l a r l y so in
the case of new home loans„
Stock market c r e d i t . Customer c r e d i t in t h e stock market declined
moderately in May, decreasing s$3 m i l l i o n t o 85.li b i l l i o n a t t h e end of
t h e month. Host of t h i s decline was a t t r i b u t a b l e t o a decrease of $79
m i l l i o n i n customer debit balances (excluding those secured by U» S, Government s e c u r i t i e s ) . Bank l o a n s to o t h e r than brokers and d e a l e r s f o r
purchasing and carrying s e c u r i t i e s (except U„ S, Government o b l i g a t i o n s )
declined s l i g h t l y ($k m i l l i o n ) a f t e r s i x consecutive month-to-month i n c r e a s e s .
Money borrowed by New York Stock Exchange Member f i r m s , which had
increased during the two previous months, d e c l i n e d r a t h e r sharply i n May,
decreasing $170 m i l l i o n . Customers f r e e c r e d i t balances, on t h e other hand,
which had declined i n a l l previous months thus f a r t h i s y e a r , increased
$95 m i l l i o n . These and other data on stock market c r e d i t a r e shown in t h e
following t a b l e .
End of month
May
1 Apr.
Customer c r e d i t
Excluding Uc S. Government s e c u r i t i e s - t o t a l
Net d e b i t balances
Bank loans to " o t h e r s "
Net debit balances secured by U. S c Govt, s e c u r i t i e s
Bank loans t o "others" f o r purchasing or carrying th S„
Government s e c u r i t i e s
Broker and d e a l e r c r e d i t
Money borrowed except on U„ S c Government.securities
On customer c o l l a t e r a l
Money borrowed on U. S= Government s e c u r i t i e s
Customers' n e t f r e e c r e d i t balances
TJ

Change

5,W8
U,ooo
1,408
35

5,491
a,079
1*412
36

-83
-79

91

117

-26

2,845
2,499
hh
1,205

3,015
r/2,666
57
1,110

-170
-167
-13
95

-1

Revised
Stock p r i c e s . Common stock p r i c e s declined f o u r per cent f u r t h e r
on balance l a s t week in very a c t i v e t r a d i n g , closing on i r i d a y a t 55o89.
P r i c e s declined sharply during t h e f i r s t f o u r t r a d i n g days to a new low
f o r the y e a r but recovered about t w o - f i f t h s of t h e week's l o s s on Friday„
Trading volume averaged 5-4 m i l l i o n shares a day, 1,2 m i l l i o n shares more
than t h e average f o r t h e previous week.




-3I n s t i t u t i o n a l i n v e s t o r s . The n e t inflow of savings during A p r i l
a t t h r e e major types of f i n a n c i a l i n s t i t u t i o n s — l i f e insurance companies,
savings and loan a s s o c i a t i o n s and mutual savings banks—totaled $0.8
b i l l i o n , 6 per cent l e s s than l a s t y e a r . (For seasonally a d j u s t e d d a t a ,
see Capital Market Developments f o r May 28.) This decline was the r e s u l t
of a smaller n e t inflow of savings c a p i t a l t o savings and loan a s s o c i a t i o n s
t h i s A p r i l than a year e a r l i e r ; l i f e insurance company a s s e t s increased
s l i g h t l y more than l a s t year while d e p o s i t s at mutual savings banks declined
s l i g h t l y l e s s . (Time and savings d e p o s i t s a t commercial banks increased
$0.9 b i l l i o n i n A p r i l , t h r e e - t e n t h s more than a year e a r l i e r . )
Assets of l i f e insurance companies increased $0.5 b i l l i o n i n
A p r i l , 2 per cent more than a year e a r l i e r . For t h e f o u r t h month in a row
a s u b s t a n t i a l portion of the increase i n a s s e t s was i n s h o r t - t e r m i n v e s t ments—about one-half i n April as compared with about o n e - s i x t h a year
e a r l i e r . Net a c q u i s i t i o n s of business s e c u r i t i e s t o t a l e d ttO„2 b i l l i o n ,
two-thirds more than i n April a year e a r l i e r ; a c q u i s i t i o n s of long-term
s e c u r i t i e s , however, were one-fourth l e s s than l a s t year as t h e s e companies
increased t h e i r investments in commercial and f i n a n c e company paper by
$171 m i l l i o n , almost t h r e e times t h e i r April 1961 a c q u i s i t i o n s . Net
a c q u i s i t i o n s of U. S. Government s e c u r i t i e s ( p r i m a r i l y Treasury b i l l s and
c e r t i f i c a t e s ) t o t a l e d $0.1 b i l l i o n as compared with a moderate decline i n
holdings oi Governments l a s t A p r i l . Mortgages a c q u i s i t i o n s t o t a l e d $0.1
b i l l i o n , t w o - f i f t h s l e s s tnan l a s t y e a r and the smallest monthly i n c r e a s e
s i n c e July i960.
The net inflow of savings c a p i t a l a t savings and loan a s s o c i a t i o n s
in A p r i l was $0.U b i l l i o n , l h p e r c e n t l e s s than l a s t A p r i l . The March
i n c i e a s e in savings c a p i t a l had been unusually sharp, in p a r t because of
an i n c r e a s e in t h e number of a s s o c i a t i o n s c r e d i t i n g dividends q u a r t e r l y
(and t h e r e f o r e jLn March). The smaller A p r i l inflow r e f l e c t e d p r i m a r i l y
a r i s e i n withdrawals which tend t o be l a r g e following the c r e d i t i n g of
dividends. Net a c q u i s i t i o n s of mortgage loans t o t a l e d $0.8 b i l l i o n , a
record f o r -*pril and one-sixth l a r g e r than a year e a r l i e r . Associations
reduced t h e i r holdings of cash and U„ S„ Government s e c u r i t i e s by $126
m i l l i o n ( t h e s e holdings rose s l i g h t l y l a s t year) and increased t h e i r
borrowing by $12U million ( t w o - f i f t h s more than l a s t year) to provide funds
f o r mortgage a c q u i s i t i o n s .
Deposits a t mutual savings banks declined seasonally i n April a s
withdrawals exceeded d e p o s i t s following q u a r t e r l y payment of i n t e r e s t .
The n e t reduction in d e p o s i t s of $5l mill ion, however, was s l i g h t l y l e s s
than l a s t y e a r , r e f l e c t i n g a l a r g e r r i s e i n new d e p o s i t s than i n w i t h drawals. Mortgage a c q u i s i t i o n s of &0.3 b i l l i o n were in record volume,
one-half l a r g e r than a year e a r l i e r . Holdings of a l l other types of i n v e s t ment were reduced. The reduction i n U. S. Government s e c u r i t y holdings
amounted t o $216 million as Treasuiy b i l l holdings, which had been b u i l t
up e a r l i e r in t h e year, were reduced s h a r p l y .
More d e t a i l e d information concerning recent c a p i t a l market
developments i s presented in the a t t a c h e d e x h i b i t s „
Capital Market Developments,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




5
E X H I B I T A, R o n I
LONG-TERM

BOND

YIELDS, H I G H - G R A D E

V

S T A T E A N D ioCAl
?•«

1957

1958

1959

1940

1961

19*2

Exhibit A - Part I I

m

Date

Corporate
Aaa 3 /

U. S. Govt,
long-term 2 /

S t a t e and ,
local
government
Aaa 3 /

Spread between
U. S. Govt, and
Corporate
S t a t e and
Aaa
l o c a l Aaa

(per cent)
..V
V
C,
jjf

rv
#

1957 - High
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - High
Low
May 18
m y #
June 1
June 8
y J u n e 15 &/
Note;

L l L (9/27)
3 . 5 5 (5/2)
it. 6 1 (1/29/60)
4 . 2 1 (3/17/61
lt.l*6 (9/15)

3 . 7 0 (5/12/61)
it. 07 (12/29)

U.U3 (2/16)
It. 27 (5/25)

it.12 (2/23)
3 . 8 5 (5/11)

It. 28
it. 27
it. 28
it. 26
it. 28 -

3.87
3.90
3.89
3.88
3.87

3 . 7 6 (10/18)
3 . 0 7 (4/25)

it.it2 (1/8/60)

For f o o t n o t e s see Exhibit B.




3 . 4 5 (8/29)

2.61t(s/i)

3 . 6 5 (9/24/59)
2 . 9 9 (9/1/60)
3.37 (7/6)

3.26 (1/1+)
2.92 ( 5 / 3 )

2.9it
3.00
3.0U
3.05
3.06

.60
.22
.59
.19
.57
.it7

.29

.itl
.37
.39

.iiO

.itl

.50
.34
.92
.46
.76
1.08
.80
.93
.90
.85
.83
.81

b
LONG-TERM

BOND

YIELDS,

LOWER-GRADE

\r

Exhibit B - Part I I
Corporate
Baa 1 /

S t a t e and
local govt
Baa 3 /
(per cent)

1957 - High.
1 9 5 8 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - 6 1 Low
1961 - High
1962 - High
Low
Hay 1 8
May 25
June 1
June 8
XTune 1 5 fi/

5.10
kSL
5.36
U.98
5.13
5.11
4.98

(11/29)
(7/11)
(2/12/60)
(9/9/60)
(10/27)
(1/5)
(6/1)

4.99
U.98
1.98
5.00
5.01 /

U.51

(8/29)

3.61;
U.h6
3.93
i|. 16
k.Oh
3.52

(5/1)
(1/7/60)
(11/9/61)
(3/23)
(1/11)
(5/17)

3.52
3.58
3^60
3.6I4
3.65

Spread between
Aaa a n d Baa
S t a t e and
Corporate
l o c a l povt

1.27
.77
.66
.81
.72
.63

1.21
.93
1.08
.57
.93
.82
.56

.71
.71
.70
.72
.73

.56
'.58
.56
.59
.59

.8I4

P7 Preliminary!
~
—
1/ Weekly average of daily f i g u r e s . Average terra of bonds included in 23-26 years.
2 / Weekly average of daily f i g u r e s . The s e r i e s includes bonds due, or callable in 10 years or n
3 / Thursday f i g u r e s . Only general obligation bonds are included; average tern i s 20 years.
Note.—Highs
and lows are f o r individual series and may be on d i f f e r e n t dates f o r d i f f e r e n t
Digitized
fors eFRASER
r i e s . For spreads, high refers to widest, and low to narrowest.



SHORT-

AND

INTERMEDIATE-

6 - MONTH

F.

R.

TERM INTEREST

RATES,

GOVERNMENT

BILLS

DISCOUNT

RATE
3 - MONTH

11 1 1 I 1.1 I i l 111 II II

Ll.Ll.JJ_l u .1J.1.L1 1.1.L 1 1 1 1 I 1 1 l
1958

IILLS

L»6-|.

1959

1962

Exhibit G - Part I I
Date

Discount
rate

v

j 1957 - H i g h
i 1958 - Low
1959- 60 - H
1960- 6 1 Low
1961 - High
1962 - H i g h
Low

3.00
3.00
3-00

May 1 8
May 25
June 1
June 8
^June 15 2 /

3.00
3.00
3.00
3.00
3.00

3.50
1.75
It. 00

3.00

3-month
b i l l s 2/
3.61*
.58
1^.59
2.11
2.66
2.81
2.65

(10/I8)
( 5/29 )
( 3/0/60 )
(10/28/60)
(12/29)
(2/16)
(6/8)

2.67
2.69

2.68

2.65
2.69 /

1/
2/

Yiiel'ds
6-month
b i l l s 2/
(per cent)

3-5 year
issues 2/

—
3 . 0 2 (12/26 )
5.07(1/0/60)
2 . 3 5 (4/28/61)
2 . 9 0 (12/29)
3.02 (1/12)
2.7k ( 6 / 8 )

k.Ok (10/ie)
2.11* (6/6)
5 . 0 0 (12/24/59)
3 . 1 5 (5/12/61)
3.86(8/11)
3.88 (2/2)
3.1*3 (h/6)

2.77
2.77
2.76
2.7U
2.76

3.55
3.57
3.53
3.50
3.1*6

S p r e a d b e t w e e n y i e l d s on 3 month b i l l s and y i e l d s on
6-mo. b i l l s | 3 - 5 y r . i s s u e s

.26
.79

.12

A
.07

.86
.Ok

1.81

.38
1.51
1.19
.71

.10

.08
.08

.88

.09
.07

: !
.77

Weekly rate shown i s that in e f f e c t at end of period at the Federal Reserve Bank of New York.
Market y i e l d ; weekly averages computed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
Note.—Highs and lows are f o r individual series and may be on d i f f e r e n t dates for d i f f e r e n t s e r i e s .
For spreads, high refers to widest, and.low to narrowest.




SHORTBANKS

AND
AND

INTERMEDIATE-TERM
OTHER

INTEREST

RATES,

PRIVATE B O R R O W E R S

hxhibit D - Part I I
Date

S t o c k Exchange
c a l l loan 1 /

Prime
rate 1/

F i n a n c e coup^ny
paper 2/

Federal
funds 3/

S p r e a d between
3-mo. b i l l s and
f i n a n c e Co. p a p e r

(per cent)
1957 - High
.1958 - Low
"1959-60 - High
1 9 6 0 - 6 1 Low
1 9 6 1 - High
1962 - High
Low
May 18
May .25
J u n e 15 £,/

U.50
3.50
5.50
U.5o
U.5o
L5o
L5o

U.50
3.50
5.00
ii.50
U.50
1.50
U.5o

U.5o
4.5o
l.5o
U.5o
U.5o

U.50
u. 50
U.50
U.5o
. U.50

3/

3.88

(11/15.)

1.13 (e/eh
5.13

(1/22/60)

2.50

(8/5/61)

3.00

(12/29)

3 . 5 0 (11/8)
.13(5/29)
U.00 (5/13/60)
.U3 (1/27/61)
2 . 8 8 (12/29)

3 . 1 3 (U/13)
2.88 (6/1)

2.95 (3/23)
1.30 (1/26)

2.96
2.88
2.88

2.55
2.50
1.88

2.99

1/2.15

3.00

2.80

.63
-.35
1.02
.11
.56
.la
.19
.29
.19
.20
.3U
.31

Weekly rate shown i s that in e f f e c t at end of p e r i o d . S t o c k Exchange c a l l loan rate i s going rate
on c a l l loans secured by customers' stock exchange collateral at Mew York City banks. Prime rate
i s that charged by large banks on short-term loans to business borrowers of the highest credit
standing. .
_2/ Average of daily rates published by finance companies for directly placed paper for varying maturities
in the 90-179 day range.
3/ Weekly average of daily e f f e c t i v e rate, which i s the rate Tor the heaviest volume of purchase and
sale transactions as reported to the Federal Reserve Bank of New York.
Note.-—Highs and lows are for individual s e r i e s and may be on different dates for d i f f e t e n t series.
Digitized forForFRASER
spreads, high refers to widest, and low to narrowest.



— EXHIBIT E, Pari I
STOCK

MARKET

1941-43 Av•r 0(1 = 10
<

n i 01 Dollar*

"LU-

ck

1957

1958

72.Oil
53.32
70.9U
55.89

April
Hay
June 1
June 8
June 15 2 /

68.05
62.99
59.38
58.45
5^.89

y

u r n (RED

CH ANGE IN SERIES

1959
19 60
Exhibit E - Part I I

Stock p r i c e
index 1/

1 9 6 0 - 6 1 - High
Low
1962 - High
Low

MA

(12/8/61)
(10/21/60)
(3/16)
(6/15)

19 61

Common
Trading
stock
volume 3 /
yields 2/ (millions
( p e r c e n t ) of s h a r e s )

19 62

Stock market customer c r e d i t
Customers1
Bank
debit b a l - loans t o
ances 4 / " o t h e r s " 5 /
( I n m i l l i o n s of d o l l a r s )

2.82
3.62
2.93
3.73

5.8
2.2
10.1
3.0

5 , 6 0 2 (12/61)4,259 (12/61) 1 , 3 7 7 (8/30/61)
4 , 1 4 2 (5/60) 3 , 0 0 4 (7/60) 1 , 1 2 1 (5/25/60)

5,491 ( 4 )
5,408 (5)

4,111 (l)

1,418 (5/9)

4,000 (5)

1,348 (1/24)

3.05
3.32
3.49
3.57
3.73

3.5
5.0
10.1
4.2
5.4

5,491
5,408
n.a.
n.a.
n.a.

4,079
4,000
n.a.
n.a.
n.a.

1,412
1,408
1,408
1,381
n.a.

n.a.—Not available.
j>/ Preliminary.
~
"
1/ Standard and Poor's composite index of 500 comnon stocks, weekly closing prices, 1941-43=10.
Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are for
Friday's data only.
y
Standard and Poor's composite stook yield based on Wednesday data converted to weekly closing
prices by Federal Reserve. Yields shown are f o r dates on which price index reached i t s high
2/
5/

Averages of daily trading volume on the New York Stock Exchange.
End of month figures for member firms of the New York Stock Exchange which carry margin accounts|
excludes balances secured by U. S. Government obligations.
Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
U. S, Government securities. Prior to July 1, 1959, such loans are excluded only at banks in
New York and Chicago. Weekly reporting banks account f o r about 70 per cent of loans to others*
For further d e t a i l see Bulletin.




MORTGAGE

AND

BOND

YIELDS ^

Exhibit F - Part I I
Date

FHA
mortgages 2 /

1 9 5 3 - 5 8 - High
Low
1 9 5 9 - 6 0 - High
1 9 6 0 - 6 1 - Low

5.63
a.56
6.2U
5-70

1962 - JanuaryFebruary
March
April
May

5.72
5.70
5.68
5.65
5.62

(11/57)
(2/55)
(1/60)
(7/61)

S p r e a d b e t w e e n new
Aaa c o r p o r a t e
c o r p o r a t e bonds and
bonds 1 /
New 3 /
I Seasoned V FHA, m o r t g a g e s | S e a s o n e d bonds
L.81
2.7L
5.29
L.26

( 6 / 5 7 ) L.12 ( 9 / 5 7 )
(3/5L) 2.8a (V5L)
(9/59) L.61 (1/60)
(10/61)
22 ( 3 / 6 1 )

1.96
.5a
1.76
1.08

.90
-.12
.77
-.16

h'hS
U.50
U.23
I4.17
a.09

k-h2
U.U2
a.39
U. 33
a.28

1.27
1.20
l.h$
i.as
1.53

.03
.08
-.16
-.16
-.19

Neither mortgage nor bond yields take into account servicing coats which are much higher for
mortgages than bonds. Generally, bonds pay interest semi-annually; mortgages, monthly. Mortgage
y i e l d s , i f computed as equivalent to a semiannual interest investment, would be s l i g h t l y higher
than given in the table.
2 / Based on FHA f i e l d - o f f i c e opinions about average bid prices in the private secondary market f o r
new-hone mortgages f o r immediate delivery. Since late 1955, data relate only t o 25-year mortgages
•with downpayraents of 10 per cent or more, weighted by probable volume of transactions. Yields
computed by iRB, assuming 25-year mortgages are paid off in 12 "years. Dashed lines indicate
periods of adjustment t o changes in the contractual interest rate.
3 / See note for Exhibit G.
Aj Moody's Investors Service. Monthly averages of daily data. See Exhibit B.




H.Ik

Exhibit G
Y i e l d s on New Corporate Bond I s s u e s A d j u s t e d t o an Aaa B a s i s
Number
of i s s u e s
included
Monthly a v e r a g e s :
1961 - J u l y
August
September
October
November
December
1962 - January
February
March
April
May
June

.

'

1
1
2
2
1
1

273.0
115.0
78.8
200.0
229.0
115.0
130.0
391.5
2L0.0
299.0
1U8.0

8.0
200.0
65.0
55.0
20.0
. 1+0,0

•

——

——

•—

1

18.0

1
2

60,8
U5.0

2
3
3

60.0
95.0
U5.o

it
1
1
2

9k.0
60.0
0 0

Weekly a v e r a g e s :
1961 - J u l y 7
lit
21
28
August it
11
18
25
September 1
8
15
22
29
October 6
13
20
27
November 3
10
17
2it
December.1
8

b
it
2
7
9
3
it
5
6
7
7

Amount
Average
of i s s u e s
yield
included
(per
(millions
cent)
of d o l l a r s )
it. 62
it. 59
it. 38
it. 26
it. 32
it. 39
k.bS
it. 50
it. 23
it. 17
lt.09

Number
of i s s u e s
included
December 15
22
29

1

it. 60
it.6it
March 2
U.it6
9 .
16
it.5U
23
it. 73-*
it. 60
30
——
April 6
—
13
20
it.lt6 '
27
May it
11
it.36
18
it. 25
25
June 1
it. 21
8
It, 28
15
it. 21 22
29
it.29
it. 35
it.itO
it.29

itO.O

it.55*

it. 68 ( 6 / 1 6 )
it. 21 ( 1 1 / 3 )

1961 - High
Low
1962
January 5
12
19
26
February 2
9
16
• 23

Amount
Average
of i s s u e s
yield
included
(per
(millions
cent)
of d o l l a r s )

1

60.0

it. 50

3

70.0

it.ito

2
1
1

19.5
300.0
50.0

Llto
it. 52*
it.5o

1
1
1
2
2
2
2
2

25.0
30,0
65.0
60,0
85.0
98.0
26.0
100.0

it. 37
it.29
it.23
it. 21
it.22
it. 21
it. 12
it.iz*

2
2
2
2
1
3
k

115.0
28.0
itl.O
39.0
17.0
. 115,0
67.0

it. lit
. it. 21*
it.02
it. 07
it.06
it«2it*
it. 12

Note: Averages of o f f e r i n g y i e l d s on a l l new i s s u e s of p u b l i c l y s o l d bonds r a t e d Aaa, Aa
and A by Moody's I n v e s t o r s S e r v i c e ( e x c e p t s e r i a l , equipment t r u s t and c o n v e r t i b l e i s s u e s ,
o f f e r i n g s of n a t u r a l g a s p i p e l i n e and f o r e i g n companies, and i s s u e s guaranteed by t h e
F e d e r a l Government) weighted by s i z e of i s s u e s . Y i e l d s on Aa- and A - r a t e d bonds a r e
f i r s t a d j u s t e d t o an Aaa b a s i s , using t h e comparable s p r e a d s i n y i e l d s on s e a s o n e d bonds
(Moody's a v e r a g e s ) . Averages r e f l e c t changes i n i n d u s t r i a l c o m p o s i t i o n , t y p e , m a t u r i t y ,
and c a l l p r o v i s i o n s of new o f f e r i n g s . Weekly averages c o n s i d e r e d u n u s u a l l y u n r e l i a b l e
a s i n d i c a t o r s of i n t e r e s t r a t e s on new i s s u e s because of t h e s m a l l number o r s p e c i a l
c h a r afor
c t eFRASER
r i s t i c s of o f f e r i n g s i n c l u d e d e t c . a r e marked w i t h an a s t e r i s k . S o u r c e :
Digitized
weekly d a t a , F e d e r a l Reserve; monthly d a t a , F i r s t N a t i o n a l Bank of New York.



Exhibit H
Long-term Corporate and S t a t e and Local Government
S e c u r i t y O f f e r i n g s and Placements
( I n m i l l i o n s of d o l l a r s )
New c a p i t a l
1962
January
February
March

Corporate 1 /
1 1961
|

I960

713
689
764

700
611
568

723
641
1,034

719
545
991

736
967
726

485
6o4
734

492
606
683

890
956
852

678
789
606

348
501
491

592
859
807

580
667
562

570
715
86o

JLA20
e/700
§AA5o

2,118
1,259
1,318

761
577
1,044

July
August
September .

1,028
762
647

October
November
December

1,090
918
1,000

April
May
June

1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Three q u a r t e r s
Year

2,2#
6/2,970

56,228

1,809
4,695
2,437^
3,038
6,50k
8,9k!
11,979

S t a t e and l o c a l 2/
1 i960
1962
1 1961

p/8b3
e/1000—
e/625 e/850
e/800
e/650

2,116
2,382
2,428
2,698

£/2,U68
e/2,300

2,166
2,397
1,823
2,049

1,880
2,256
1,780
1,340

1,527
6,955
9,653

E/4,768

4,563
6,386
3,435

4,136
5,916
7,257

Excluding f i n a n c e companies 3 /
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

2,199
e5/2,870

leaf

1,551
4,552
2,337
2,807

1,716
2,165
2,018
2,347

11,253

8,246

Estimated by F e d e r a l Reserve.
£/ Preliminary.
S e c u r i t i e s and Exchange Commission e s t i m a t e s of n e t p r o c e e d s .
Investment Bankers A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l amounts.
T o t a l new c a p i t a l i s s u e s excluding o f f e r i n g s of s a l e s and consumer f i n a n c e
companies.




H.lk
New Corporate Security I s s u e s , Type of Issue and I s s u e r
(In m i l l i o n s of d o l l a r s )
Quarter
or
month

Net proceeds f o r
Gross proceeds f o r new
new c a p i t a l 1 / 2/
c a p i t a l and r e f u n d i n g 1 /
Common
Bonds
and
Public CommuniMfg. u t i l i t y c a t i o n s
T o t a l P u b l i c l y Privately- p f d .
offered offered
stock

Other
issuers

I960 - I
II
III
IV

2,265
2,537
2,520
2,832

93k
1,07k
1,336
1,1*62

795
770
754
955

536
692
k29
kl6

298
511
562
625

598
. 808
652
696

189
lk9
317
381

1,059
913
896
997

1961 - I
II
III
IV

1,992
5,352
2,566
3,236

662
2,303
772
967

880
1,275
1,139
l,k2k

kk9
1,77k
65k
8k5

515
l,k66
595
836

381
1,081
595
836

•81
1,095
10k
lk7

832
1,052
803
1,263

1962 - I

.2,378

1,155

716

507

655

k30

k56

717

601
695
696
2,231
l,3k2
1,779
1,075
813
678
1,155
987
1,09k

178
273
211
713
666
92k
k2k
225
123
336
klk
217

29k
255
331
3k8
355
572
392
kll
336
509
3k8
567

129
167
15k
. 1,170
320
283
259
177
218
310
225
310

169
99
2k8
57k
kk7
kk6
k28
255
252
271
215
306

137
160
8k
25k
k39
389
369
215
111
306
362
168

21
la
19
99k
85
16
16
13
75
25 .
80
k2

6h7
88k
8U7
1,222
7k0

273
k97
386
652
230

232
232
2<1
238
350

lk3
155
poo
332
160

205
131
318
378
200

89
lk8
193
376
230

73
362
21
86
ko

III
IV
1961 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - Jan.
Feb.
Mar.
Apr.
May e /
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

253
368
211
297
,, 289
k67
315
279
209
k87
291
k85
225
218
275
280
230

£>7 Preliminary.
"e/ Estimated by Federal Reserve.
1 / Gross proceeds exceed
net proceeds by the cost of f l o t a t i o n .
2/ For t o t a l see Exhibit H; o t h e r
i s s u e r s a r e e x t r a c t i v e , r a i l r o a d and other t r a n s p o r t i o n , r e a l e s t a t e and f i n a n c e
and commercial and o t h e r .
S o u r c e . - - S e c u r i t i e s and Exchange Commission.




H.li*

Other%M%&t^ Offerings
(In millions of dollars)
Gross long-term 1/
Federal agency 3/
Foreign government 2/
1962
| 1961
I I960
|
1961
|
I960
1962
ll*2
10
35
10
e/88

6
29
20
2
66
29
5
2
1*3
3k

e/265

.

2
175
70
3h
72
1*0
25
1
36
3h
2
ia

236

533

123

353

21*6
156
1*61
e/ -

182
150
150
11*8
351*

252
100
11*9
278
250
193

199
160
11*9
181

225
—

e/863

1,1*1*8

1,672

501

981*

Net short-term 1*/
Federal agency 3/
State and Local government 5/
18
1*66
-21*8
2/1*0

1/
2/
3/
h/
5/

160
195
-8
-103
-1*2
-155
109
518
-86
-6
51*
-116

-

58
ll*o
-80
70
-11*6
-157
1*6
1*15
-175
-16
50
-189

520

lb .

202

1*2

21*7
-156
226
-31*6
£/ll6

2/G7

-11*1*
-162
-171*
-79
-87
207
22
193
108
98
56
-111*

-196
-202
-59
-277
170
320
95
23
-201
-23
-33
-250

-76

-633

-61*6

-561*

Preliminary.
~ef Estimated by Federal Reserve.
These data d i f f e r from those in Exhibit H in t h a t refunding i s s u e s , as well as new
c a p i t a l issues, a r e included. Long-term s e c u r i t i e s are defined as those maturing
in more than one year.
Includes s e c u r i t i e s o f f e r e d in the United States by foreign governments and t h e i r
p o l i t i c a l subdivisions and i n t e r n a t i o n a l organizations. Source: Securities and
Exchange Comission.
Issues not guaranteed by the U. S. Government. Source: long-term, S e c u r i t i e s and
Exchange Commission; short-term, Treasury Department and Federal Reserve.
These data d i f f e r from t h o s e in Exhibit H and above in t h a t they represent new
o f f e r i n g s l e s s retirements, whether from t h e proceeds of refunding issues or from
other funds. Data include only issues with o r i g i n a l maturity of one year or l e s s ,
P r i n c i p a l l y tax and bond a n t i c i p a t i o n n o t e s , warrants or c e r t i f i c a t e s and Public
Housing Authority notes. In some instances PHA notes included may have a somefor
FRASER
what
longer than one year. Source: Bond Buyer and i e d e r a l Reserve,

Digitized


Exhibit K

Hell*

Large Long-term Public S e c u r i t y I s s u e s f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Proceeds of Large I s s u e s Offered
( I n m i l l i o n s of d o l l a r s )
Month

Total

1961 - May
June
July
August
September
October
November
December
1962 - January
February
March
April
May

557
532
475
185
168
354
391
255
195
425
366
648
200

Corporate
Bonds
Convertible
( o t h e r than
bonds
convertibles)
480
. 15
435
285
75
165
78
33
205
67
26
320
125
170
425
330
15
430
51
170

Stocks
62
97
115
20
58
til
45
130
25
21
167
30

State
and
local
government
256
616
179
281
435
326
480
307
561
662
259
423
373

Other
2/
25
• 151
——

100
73
40
250
3.45
64
30
55
88

Large Individual I s s u e s Offered June 1 through 15

Issuer

Type 3 /

Amount
Coupon
(millions
r a t e or Offering
Maturity
of
net i n t e r - yield t
dollars)
e s t cost

Rating

CORPORATE
Alabama Power Co„
1 s t mtg. bds. 17oO 1992
Mountain S t a t e s T e l . & Tel.
Co.
Deb.
*2002
50o0
United Gas Corp.
Lstmbg&colLtr.bds40.0 1982
T r a n s c o n t i n e n t a l Gas Pipe
Line Co.
S.r. deb.
30.0 1982
Transcontinental Gas Pipe
Line Co.
Pfd. s t k .
15«0
Columbia Gas System, Inc.
Deb.
25.0 1987
Container Corp. of America
S.F. deb.
25.0 1987
Northern S t a t e s Power Co.
1 s t mtg. b d s . 15cO 1992
Texas Gas Transmission Co.
Deb.
40.0 1982

4-3/8.
4-1/2
4-5/8
5
4-1/2
4.4o
4-3/8
5

4.39

A

4.38
4.45

Aaa
A

5.10

Baa

4.50
4.40
4.28
5.00

A
A
Aa
Baa

STATE AND LOCAL GOVERNMENT
Maricopa Co., Arizona
Monroe Co., New York
St a te of C a l i f o r n i a
Public U t i l i t y D i s t . No. 1 ,
Chelan Co., Wash.
OTHER




G.O.
G.O.
G.O.
Rev.-Ut.

11.2 1963-73 2.72
IO08 1963-91 2.85
100,0 1964-88 3.21
13.82/2012

1.65-2.90
A
Aaa
1.50-3.40
1 . 8 0 - 3 . 4 0 4 / Aa
n.a.

vfe
K-2

h lU'

Footnotes
-*—Rights o f f e r i n g ,
—Foreign corporation,
1 / Includes corporate and o t h e r s e c u r i t y o f f e r i n g s of $15 million and over;
S t a t e and l o c a l government s e c u r i t y o f f e r i n g s of $10. m i l l i o n and over.
2/ Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal agencies,
3 / In t h e case of S t a t e and l o c a l government s e c u r i t i e s , G.CL denotes general
o b l i g a t i o n s ; Rev.-Ut., revenue o b l i g a t i o n s secured only by income from
public u t i l i t i e s ; Rev. -Q.Ut,, revenue bonds secured onl; by rcvtr.u<= from
q u a s i - u t i l i t i e s ; Rev. - S . T . 3 revenue bonds secured by revenue from s p e c i f i c
t a x e s only; "Rev.-Rent. s revenue bonds secured s o l e l y by l e a s e payments.
h j l / h per cent bonds maturing 1988 were r e o f f e r e d to y i e l d lu35.
5 / An a d d i t i o n a l *27,6 mill ion was sold t o refund outstanding bonds v




H.l4

Exhibit L

Forthcoming Large Long-term Public S e c u r i t y O f f e r i n g s f o r New C a p i t a l
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
Date of
computation

Subsequent t o
During month following
date shown
d a t e shown
S t a t e and
S t a t e and
Corporate l o c a l govt. Other 2 / Corporate l o c a l govt.

1961 - Hay 31
June 30
J u l y 31
Aug, 31
Sept. 29
Oct. 31
Nov. 30
Dec. 29
1962 - Jan. 31
Feb. 28
Mar. 30
Apr, 30
May 31

1*87
521
170
175
358
346
356
161
480
222
628
185
587

431
195
406
399
251
597
295
223
465
153
453
333
184

611
666
255
240
504
411
421
591
525
341
693
598
692

75
73
35

64
95
55

771
291
537
530
454
- 693
498
415
567
239
539
452
337

Other 2 /
75
73
35

64
/

95
55

Forthcoming Large O f f e r i n g s , a s of June 1$
Issuer

Type

Amount
(millions
of d o l l a r s )

Approximate date
of o f f e r i n g

CORPORATE
Consolidated Edison Co.
Pet Milk Co.
Cincinnati Gas & Elec. Co.
P h i l l i p s , N.V. ( f o r e i g n corporation)
Columbia Bancorporation
Puget Sound Power & Light Co.
New England E l e c t r i c System
Houston Lighting & Power Co.
*New England Tel. & Tel. Co.
•^Atlanta City E l e c t r i c Co.
^Southwestern Bell Tel. Co,
Air Reduction Co., Inc.
Commerce Oil Refining Corp.
Virginia E l e c t r i c & Power Co.

1 s t mtg. bds.
S.F. deb.
1 s t mtg. bds.
Com. stk»
Conv.sub.deb.
Pfd. s t k .
Com. s t k .
1 s t mtg. bds.
Deb.
Deb.
Deb.
Conv.sub.deb.
Deb., bds. & com.
Com. s t k .

100.0
20.0
25.0
75.0
30.0
15.0
20.9
30.0
50.0
15-0
100.0
34.5
45.0
4o.o

June 20
June 20
June_ 22
June 22
(rights expire)
June 25
June 27
June 28
( r i g h t s expire)
June
July 11
J u l y 19
Aug. 8
Indefinite
Indefinite
Indefinite

STATE AND LOCAL GOVERNMENT
Houston Ind. Sch. D i s t . , Texas
Penna. Public School Bldg. Auth.
Wisconsin S t a t e Agencies Bldg. Corp.
Baltimore, Md.
Georgia S t a t e highway Auth.
(




G.O.
Rev.-Rent.
Rev.-Rent.
G.O.
Rev.-S.T.

12.5
14.2
13.2
18.8
16.6

June
June
June
June
June

26
26
26
27
27

h.lli

L-2
Forthcoming Large O f f e r i n g s s a s of June 15 (Cont'd)
Issuer

Type

Amount
(millions
of d o l l a r s )

Approximate date
of o f f e r i n g

STATE AND LOCAL GOVERNMENT (CONT'D)
Dallas Ind„ Sch, D i s t . 3 Tex.
Texas Univ,/Texas A&M, Texas
Memphis Tenn.
Los Angeles Sch. D i s t . , Cal„
-xOrlando U t i l i t i e s Comm., F l a .
%San Diego Unif. Sch. D i s t . , Cal.
%San Antonio s Texas
De Kalb Co., Georgia
P i t t s b u r g h j Penna.
J e f f e r s o n County, Colorado
Tarrant County s Texas
Dade County, Florida
J a c k s o n v i l l e Expressway Auth., F l a .

G.Oo
Rev,-Rent.
G.O.
G.O.
Rev„-Ut.
G.O.
G.O.
Go0»
G.Oo
G.O.
G.Oo
G.Oo
Rev„-Ut,

10 = 0
10,0
23.0
21.0
1U.0
lU.8
20.0
lU-o
35.0
19.2
13 = 5
16.0
IjOoO

June 27
June 28
July 10
July 10
July 17
J u l y 31
Aug. 8
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

->
Af..
'•A
"!;
>;N
:
1

1

OTHER
Govt, of A u s t r a l i a
Kingdom of Norway
1/

Bonds
Bonds

25.0
30,0

June 20
Indefinite

Includes corporate and o t h e r i s s u e s of #15 m i l l i o n and over; State and l o c a l
government i s s u e s of $10 m i l l i o n and over.
2/ Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal agencies.
Note .—Deletions f o r reasons other than s a l e of i s s u e : None.




,;':i

Exhibit M
Sources and Uses of Funds by
L i f e I n s u r a n c e Companies

ities

Value of a s s e t s a t
end of p e r i o d :
1958 - Dec.
1959 - Dec.
i960 - Dec.
1961 - Dec.
1962 - Apr.
Changes:
2/I96O - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
NOT.

Dec.
jg/1961 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
P/1962 - Jan.
Feb.
Mar.
Apr.
May
June

1

r

Other

Total
sources
or u s e s

37 a 092
39,237
41,798
44,241
44,751

14,640
16,126
17,625
19,409
19,751

107,580
113,650
119,717
126,589
128,569

=>46
207
115
95
128
211
206
175
122
11
102
173

il

Cash

Uses of f u n d s 1 /
S t a t e and
Business
l o c a l govt.

U. S.
Govt.

i t i e s 2/ itieb
I n m i l l i o n s of d o l l a r s )

1,363
1,307
1,332
1,389
1,214

7,182
6,858
6,444
6,10k
6,351

Wig 612
1*6,901
48,896
51,521
52,1*38

2,691
3,221
3,622
3,922
4,061;

-71
-53
-30
39
=•12
33
12
4
-51
90
-35
99

153
-36
-167
-85
-62
-102
73
=40
• -6
-62
23
-103

201*
125
104
131*
231
125
167
168
4o
311
198
188

-24
25
35
21
26
13
104
43
82
33
26
17

336
196
242
225
203
192
63
226
179
214
208
277

-5U
-9
-50
9
75
-39
40
-18
Hi
31
43
15

101
-3
-7
-1*7
63
-182
71

49
31
33
34

-50
13
-43
-256

21*2
128
148
135
170
270
21*5
211
213
288
206
372

-13
25
36
29
17
36
18

210
135
208
202
170
222
107
164
165
199
235
426

202
202
186
119
58
131
. 142
128
138
105
165
308

750
484
518
452
541
289
630
521
509
653
642
883

-108
-5
-71+
12

210
21
-78
94

321*
173
193
22k

36
. 2
118
-14

137
116
143
114

123
113
75
31

722
420
377
461

5

-

IT

than g r o s s , u s e s .
2 / I n c l u d e s s e c u r i t i e s of domestic c o r p o r a t i o n s only.
S o u r c e . — I n s t i t u t e of L i f e I n s u r a n c e .




552
464
299
429
514
469
628
576
366
597
522
651

t£>
h.lli
Sources and Uses of Funds bySavings and Loan Associations

Cash
Value of a s s e t s
a t end of p e r i o d
1958 - Dec.
1 9 # - Dec.
I960 - Dec.
1961 - Dec.
1962 - Dec.

Sources of funds
Uses of f u n d s 1 /
Total
Net
U. S.
sources change
BorrowGovt.
Mort- Other
Other
savings
ing 3 /
gages^/
capital
ities
(In mil]Lions of d o l l a r s )

2,585
2,183
2,680
3,298
3,069

3,819
4,477
1,595
5,222
5,506

L5,627
53,1W.
60,070
68,833
71,580

3,108
3,729
UA31
4*743
4,854

55,139
63,530
71,176
82,096
85,009

47,976
51,583
62,312
70,851
73,211

1,444
2,387
2,197
2,863
2,425

5,719
6,560
7,137
8,382
9,373

Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-315
-34
49
-26
81
320
-233
30
25
102
83
hlS

199
65
-26
18
-143
-32
-23
5
no
-54
-1

321
4oo
5la
564
635
762
6U5
722
656
602
515
566

=112
64
104
108
210
-50
=148
-6
50

93
495
668
646
944
889
232
723
736
813
777
930

46?
406
630
370
622
1,220
157
486
604
666
552
1,379

-45i
-123
-125
39
4
210
-124
22
49
-14
52
. 271

77
212
163
237
318
-541
199
215
83
161
173
-720

p/1961 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-95
59
3
23
150
131
-227
-86
47
81
84
448

93
191
107
-18
-3
32
-8
66
-5
15
82
45

369
128
690
695
809
99?
73?
910
802
810
752
7 61

-106
71
122
113
22 h
-150
76
83
103
198
-58

-64

261
7h9
922
813
1*180
1,096
352
#6
927
1,039
1*116
1,199

591
553
7#
417
800
1,362
111
496
662
726
775
1,511

-465
"80
-26
88
41
274
=1
132
130
74
81
418

135
276
243
308
339
-540
242
338
135
239
260
-730

2/1962 -- Jan.
Feb.
Mar>r/
Apr.
May
June

-365
98
131
-93

186
95
36
-33

535
600
801
811

-115
hO
93
93

2iil
833
1,061
778

491
578
934
357

-383
-96
-83
124

133
351
210
297

Changes :
I960

tJ
1/

233
-50

Revised C ™ J 7 Preliminary.
~~~ ~
~
Uses of funds r e p r e s e n t n e t changes i n a s s e t s and t h e r e f o r e r e f l e c t n e t , r a t h e r
than g r o s s , u s e s . Savings and loan a s s o c i a t i o n s do not hold business s e c u r i t i e s
_and data on holdings of S t a t e and l o c a l government bonds, presumed to be small,
a r e n o t a v a i l a b l e , 2/ Data f o r 1957 a d j u s t e d to include mortgage pledged
Digitized shares
for FRASER
as c u r r e n t l y reported,
3 / Advances from Home Loan Banks and other
http://fraser.stlouisfed.org/
borrowing.
Source.—FSLIC,

Federal Reserve Bank of St. Louis

Exhibit 0
Sources and Uses of Funds
by Mutual Savings Banks

Uo s .
Govt,
Cash s e c u r ities
Value of a s s e t s
a t end of period
1958 - Dec.
1959 - Dec.
I960 - Dec,
1961 - Dec.
1962 ~ Apr.
Changes
I960 - Jan.
Feb.
Mar.
Apr 0
May
June
July
Aug,
Sept,
Oct.
Nov,
Dec,
1961 «- Jan,
Feb,
Mar,
Apr,
May
July
Aug,
Sept,
Oct.
Novo
Dec,
1962 - Jan.
Feb,
Mar.
Apr.
May

Uses of funds 1/
Total
State &
sources
local
Mort- 11
jOther
govt,
gages
ities
!
2/
ities
( I n m i l l i o n s of d o l l a r s )

Sources of funds
Net
change i n
deposits

Other

34,041
34,983
36,353
38,487
39,156

3,738
3,959
4,220
4,346
4,622

921
829
872
828
818

7,266
6,86k
6,239
6,136
6,300

1,973
4,849
5,080
5,053
5,061

-131
37
4l
-86
42
108
-69
, =6
22
-8
9
84

=9
-11
32
-11*8
-80
-93
-4B
30
-32
-156
-68
4*2

-12
-9
52
-19
13
57
38
=8
32
-4
34
57.

«>6
~9
3
13
-23
-4
-It
-5
1
=6
-5
-5.

159
116
150
129
161
169
159
206
196
168
171
157

-12
43
hi
-21
63
-59
42
6
14
-25
13
-14

-11
167
319.
-132
176
178
118
#3
233
-31
154
237

-68
50
320
-95
58
221
21
105
278
56
39
385

57
117
-1
-37
118
-43
97
118
-45
—87
115
-148

-49
21
9
-51
30
30
-26
=14
46
-27
7
-20

106
100
117
-216
-13
-52
18
6
-15
-120
-13
-21

3
-15
1*6
-11
27
34
2
=23
-19
-56
-20
5

-5
-1
-2
1
23
-2
1
• 1
-5.
-5
-1

161
IliO
204
176
187
217
201
207
156
178
167
212

17
26
29
-51
30
-23
-28
55
49
-44
46
117

233
272
404
-154
262
228
164
232
220
-74
181
292

170
136
351
-54
114^
3672/
23
99
310
-15
48
471

63
136
53
-100
148 .
-1392/
i4l
133
-90
-59
133
-179

10
1*7
12
-79

94
77
209
-216

17
1
25
=35

-7
-18
-18
-26

#3
188
230
270

-118
12
62
"45

250
307
519
-131

83
165
472
-51

725 23,039
855 37,779
722 24,768
910 38,942
672 26,709 1,001 40,573
677 ' 28,915 1,221* 42,8%
608 29,856 1,135 43,778

166
142
47
-80

_7

"l7

Uses of funds r e p r e s e n t n e t changes i n a s s e t s and t h e r e f o r e r e f l e c t net,, r a t h e r
than gross, u s e s .
2 / Includes Canadian government and p o l i t i c a l s u b d i v i s i o n s , I n t e r n a t i o n a l Bank f o r
Reconstruction and Development, nonguaranteed Federal agency and o t h e r bonds a s
well as corporate bonds and s t o c k .
"
3/ Conforming t o FDIC r e d e f i n i t i o n , $115 m i l l i o n o t h e r l i a b i l o r e c l a s s i f i e d as
Digitized for
d e pFRASER
o s i t s . Source.—NAMSB and FDICo