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Not fQT |Pn>V

+i-nry •SBGtipTROLLED AFTER SIX MONTHS

- LIBRARY
H

-lli

JUN 2 7

June 2 5 , 1962.

1962

FEDERAL RESERVE H
OF RICHMOND "

DEVELOPMENTS
TED STATES

( I n c l u d i n g S e a s o n a l l y A d j u s t e d Savings Flows t o Savings and Loan
A s s o c i a t i o n s and Mutual S a v i n g s Banks i n May)
The volume of 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 m o d e r a t e l y s u b s t a n t i a l l a s t week b u t i s e x p e c t e d t o be f a i r l y l i g h t
t h i s week. During t h e week ending June 22, f o u r 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 ( 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 ) amounting t o $220 m i l l i o n
were p u b l i c l y o f f e r e d and t h e Government of A u s t r a l i a s o l d a $30 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 government bond i s s u e s were
s c h e d u l e d . This week, e n d i n g June 2 9 , two c o r p o r a t e 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 $33 m i l l i o n a r e s c h e d u l e d and seven
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 $90 m i l l i o n a r e
on t h e c a l e n d a r . I n a d d i t i o n t h e P u b l i c S e r v i c e Company of New Hampshire
h a s s c h e d u l e d f o r s a l e a $2li m i l l i o n bond i s s u e t o r e f u n d o u t s t a n d i n g
securities.
Bond y i e l d s . Changes i n y i e l d s on s e a s o n e d , l o n g - t e r a bonds
were mixed a g a i n l a s t week. Y i e l d s on b o t h A a a - and B a a - r a t e d c o r p o r a t e
bonds i n c r e a s e d one b a s i s p o i n t w h i l e y i e l d s on U,^ S. Government bonds
i n c r e a s e d 3 b a s i s p o i n t s . Y i e l d s on S t a t e and l o c a l government b o n d s ,
however, d e c l i n e d f o r t h e f i r s t t i m e s i n c e e a r l y May, w i t h t h o s e on A a a and B a a - r a t e d i s s u e s d e c r e a s i n g one and 3 b a s i s p o i n t s , r e s p e c t i v e l y .
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 4 . 1 1 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 one b a s i s p o i n t
l e s s t h a n t h e a v e r a g e f o r t h e p r e v i o u s week, b u t t h e y were s t i l l 9 b a s i s
p o i n t s above t h i s y e a r ' s low r e a c h e d i n mid-May.
S h o r t - and i n t e 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 T r e a s u r y
b i l l s and on 3 - 5 y e a r U. S, Government o b l i g a t i o n s i n c r e a s e d I4. b a s i s p o i n t s
each l a s t week. One m a j o r f i n a n c e company i n c r e a s e d t h e r a t e on i t s
d i r e c t l y - p l a c e d p a p e r w i t h 90-179 day m a t u r i t y f r o m 3 t o 3 - 1 / 8 p e r c e n t
l a t e l a s t week, r e s u l t i n g i n an i n c r e a s e of one b a s i s p o i n t t o 3 . 0 1 p e r
c e n t i n t h e a v e r a g e y i e l d on a l l such p a p e r . The F e d e r a l f u n d s r a t e r o s e
20 b a s i s p o i n t s f r o m t h e r e v i s e d l e v e l of t h e p r e v i o u s week t o a v e r a g e
2 . 9 5 p e r c e n t , t h e same a s t h e p r e v i o u s h i g h f o r t h e y e a r . O t h e r 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.
Housing s t a r t s .
P r i v a t e housing s t a r t s , i n c l u d i n g farm, rose
3 p e r c e n t f u r t h e r i n May. The i n c r e a s e , which f o l l o w e d a v e r y s u b s t a n t i a l
u p s u r g e i n t h e p r e v i o u s two months, was t o a s e a s o n a l l y a d j u s t e d a n n u a l
r a t e of 1 . 6 m i l l i o n . The May r a t e , which i s p r e l i m i n a r y , e q u a l l e d t h e
h i g h r e a c h e d i n J u l y of 1959 and was n e a r l y t w o - f i f t h s above t h e rectuced
r a t e r e p o r t e d f o r F e b r u a r y of t h i s y e a r .
On a t h r e e - m o n t h moving a v e r a g e , t h e most r e c e n t r a t e was 1 . 5
m i l l i o n , t h e h i g h e s t s i n c e t h e J u l y - A u g u s t - S e p t e m b e r p e r i o d of 1959 and
more t h a n a f i f t h above a y e a r e a r l i e r . I n c l u d i n g t h e r e d u c e d r a t e s




e a r l i e r t h i s y e a r , s t a r t s o v e r t h e f i r s t f i v e months a v e r a g e d I.I4. m i l l i o n .
T h i s was about i n l i n e w i t h t h e more o p t i m i s t i c of t h e i n i t i a l t r a d e
f o r e c a s t s f o r t h e year as a whole.
C o n v e n t i o n a l s t a r t s , which had a l r e a d y r i s e n t o 77 p e r c e n t of
t o t a l s t a r t s i n A p r i l i n c r e a s e d t h e i r s h a r e t o 78 p e r c e n t i n May. This
compared w i t h 75 p e r c e n t a y e a r e a r l i e r and 7 1 p e r c e n t i n May of 1959.
S a v i n g s f l o w t o s a v i n g s and l o a n a s s o c i a t i o n s and mutual s a v i n g s
b a n k s i n May. The s e a s o n a l l y a d j u s t e d n e t i n f l o w of f u n d s t o s a v i n g s and
l o a n a s s o c i a t i o n s i n May was somewhat l a r g e r t h a n i n A p r i l w h i l e t h e n e t
i n f l o w a t m u t u a l s a v i n g s banks was c o n s i d e r a b l y l a r g e r t h a n a month e a r l i e r ,
a s shown i n t h e f o l l o w i n g t a b l e and c h a r t s . The n e t i n c r e a s e i n time and
s a v i n g s d e p o s i t s a t commercial banks i n May was g r e a t e r t h a n i n A p r i l b u t
s m a l l e r t h a n i n t h e e a r l i e r months of t h i s y e a r .
The n e t r i s e i n s a v i n g s c a p i t a l a t s a v i n g s and l o a n a s s o c i a t i o n s
i n May was $719 m i l l i o n , a f t e r a l l o w a n c e f o r s e a s o n a l f a c t o r s , s l i g h t l y
l a r g e r t h a n t h e reduced A p r i l i n f l o w , b u t s n a i l e r t h a n i n most o t h e r
r e c e n t months. Both new s a v i n g s c a p i t a l and w i t h d r a w a l s were lower i n
May t h a n i n A p r i l , b u t t h e f o r m e r d e c l i n e d s l i g h t l y l e s s t h a n t h e
latter.
A f t e r a d j u s t m e n t f o r s e a s o n a l v a r i a t i o n , d e p o s i t s a t mutual
s a v i n g s banks i n May i n c r e a s e d $225 m i l l i o n , t w o - f i f t h s more t h a n t h e
s m a l l A p r i l i n f l o w and somewhat l a r g e r t h a n i n most o t h e r r e c e n t months.
Stock p r i c e s . Common s t o c k p r i c e s d e c l i n e d s h a r p l y ' f u r t h e r
l a s t week i n a c t i v e t r a d i n g . P r i c e s , a s measured by S t a n d a r d and P o o r ' s
c o m p o s i t e index of 500 common s t o c k , d e c l i n e d a l m o s t 6 p e r c e n t , c l o s i n g
on J u n e 22 a t 5 2 . 6 8 . At t h i s l e v e l , stocl- p r i c e s were 27 = 5 p e r c e n t
below t h e i r December 1 2 , 1961 h i g h and t h e l o w e s t s i n c e December 1958.
T r a d i n g volume a v e r a g e d k.2 m i l l i o n s h a r e s a day l a s t week, 1 . 2 m i l l i o n
s h a r e s l e s s t h a n t h e a v e r a g e f o r t h e p r e v i o u s week.
More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l market
developments i s p r e s e n t e d i n t h e a t t a c h e d e x h i b i t .

C a p i t a l Markets S e c t i o n ,
D i v i s i o n of R e s e a r c h and S t a t i s t i c s ,
Board of Governors of t h e F e d e r a l R e s e r v e System.




Table 1 - S e l e c t e d I n s t i t u t i o n a l Savings How

-3-

Savings and Loan A s s o c i a t i o n s 1/

Date

New savings c a p i t a l
Withdrawals of
wet new
(including civicends
savings c a p i t a l
savings c a p i t a l
credited)
l h a d j u s t e d Seasonally Unadjusted Seasonally Unadjusted S e a s o n a l l y
adjusted
adjusted
adjusted
( I n m i l l i o n s of d o l l a r s )

1961 - May
June
July
August
September
October
November
December
1962 - January
February
March
A p r i l yJ

MayfiZ

1,877
2,758
2,97k

2,008

1,965
2,2lll
1,871.
2,73k
3,9li6
1,916
2,305
2,408
2,131

2,358
2,335

2,218

2,308
2,345
2,455
2,512
2,448
2,465
2,337
2,564
2,721
2,674

1,075
1,395
2,866
1,518
1,30k
1,517
1,100
1,226
3,158
1,338
1,371
2,023
1,310

1,609
1,665
1,550
1,610
1,590
1,68a
1,679
1,708
1,796
1,578
1,626
2,021
1,955

802
1,363
108
1*90
661
7214.
774
1,508
1*88
578
93U
385
821

71*9
670
668
698
755
771
833
71*0
669
759
938
700
719

1 / Net new savings c a p i t a l Is derived as the difference between new savings capital and withdrawals, Tfie
unadjusted net new savings c a p i t a l series d i f f e r s from the net change in savings capital s e r i e s shown i n Exhibit N
because of s t a t i s t i c a l discrepancies between the flow series from which the former l i derived and the balance sheet
s e r i e s from which the l a t t e r i s computed. The t o t a l s of the seasonally adjusted and unadjusted data for any 12month period will not necessarily be I d e n t i c a l because of the nature of the adjustment procedure.
Souroe.—Federal Savings and Loan Insurance Corporation; seasonal adjustment by Federal Reserve,

Mutual Savings Banks 1 /

Date

New r e g u l a r d e p o s i t s
Withdrawals of
Net new
(including i n t e r e s t regular deposits
regular deposits
credited)
Unadjusted Seasonally Unadjusted Seasonally l h a d j u s t e d Seasonally
a d j u s t iPU )
ed
adjusted
| OMJUOUPU
adjusted
(In m i l l i o n s of d o l l a r s )

May
898
1,011
June
1,101
983
July
1,053
957
August
818
965
September
950
963
October
1,021
982
November
1,011*
859
December
1,081 •
1,007
January
1,101
1,356
February
71*5
975
March
1,111
1,01*3
April
i/l,011
2/1,059
961
1,085
May£/
1/

793
822
1,010
71*0
661
1,029
682
61*5
1,203
595
659
1,129
775

881
821
796
827
797
81*7
851
827
879
760
785
853
857

105
279
1*3
78
289
-8
177
1*36
153 .
150
1*52
Z/-70
186

133
162
161
138
166
135
163
180
222
215
258
x/158
228

Regular deposits comprise 99 par oent of mutual savings bank deposits, but exclude UhrlsUnas and other oiub,
Industrial (payroll), and school savings deposits. Net new deposits are derived as the difference between
ths new deposit and withdrawal s e r l s s . The unadjusted net new deposit series d i f f e r s from ths net change
In deposit s e r i e s ihom In Exhibit 0 because of the exclusion of apeolal deposits, Ths t o t a l s of the seasonally
adjusted and unadjusted data for any 12-month period will not necessarily be Identical because of the nature
ef the adjustment procedure ,
Soxroe.—National Association rf Mutual Savings Banks| seaeonal adjustment by Federal Reserve,




N E W

S A V I N G S

S A V I N G S

CAPITAL

A N D J . O A N

A N D

W I T H D R A W A L S ^

A S S O C I A T I O N S .

NEW SAVINGS CAPITAL
litledes DIvHigds Credited

I-MO. MOVING AVERAGE




<

DEPOSITS JKND

W I T H D R A W A L S

—

MUTUAL

S A V I N G S

BANKS

monthly, a d j u 11« d loi

J j \

1 RIW PKrUilla A

i
P y

W \
\y\

j 937

1 9 38




1959

h / f l
/F ' '

1960

/

1 VIN 6 AVEIA6E

1961

1962

7
EXHIBIT *, Pari I
[LONG-TERM

B O N D

YIELDS,

HIGH-GRADE

COirOUH A
M

E x h i b i t A - Part I I
L.
Corporate
Aaa 1/

U. S . Govt,
long-term 2 /

S t a t e and
local
government
Aaa 3 /

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

(per cent)
1957 - High
1958 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - 6 1 Low
1 9 6 1 - High
1962 - High
Low

k.lk
3.55
l*.6l
U. 2 1
1*.1*6

(9/27)
(5/2)
(1/29/60)
(3/17/61
(9/15)

h.27

(5/25)

May 25
June 1
June 8
June 15
fune 22 g /

U.27
it. 28
U.28
U.28
.
L29X

Note:

h.k3 (2/16)

3 . 7 6 (10/iB)
3 . 0 7 (4/25)
5:8
U.07
U.12
3.85

3.00
3.01*

3.87
3.90

3.05

3.88

(8/29)
(5/1)
(9/24/59)
(9/1/60)

ll'ii

3.90
3.89

For f o o t n o t e s s e e E x h i b i t B.




n
(12/29)
(2/23)
(5/11)

3.1*5
2.61*
3.65
2.99

3.05

3.06

.60
.22
.59
.19
.57
.1*7
,29

.50
.31*
•?!
.1*6
.76
1.08
.80

.37
.39
.1*0
.1*1
.39

. .90
,85
.83
.81
.85

L O N G - T E R M

B O N D

YIELDS,

LOWER-GRADE

POIATt ».«

r
A
y v

1

> A
v
.

/

'

V

H ,

A - *\(

1
— W ^ v -

s '
1
s i m A ID IQCAl GOVilNM
N

X/

1959
I960
Exhibit B - Part I I

Corporate
Baa 1/

Date

S t a t e and
local govt.
Baa 3 /

Spread between
Aaa a n d Baa
S t a t e and
Corporate
local 1

(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
May
June
June
June
•June

25
1
8
15
22 j d /

5 * 1 0 (11/29)
l u S L (7/11)

5.36 (2/12/60)
U.98
5.13
5.11
U.98

(9/9/60)
(10/27)
(1/5)
(6/1)

It.98
4.98

5.00 .
5.01
5.02-/'

U.51
3.61*
Lit6
3.93
U.16
it.Oit
3.52
3.58

3.60
3-6U
3.65

3.62

(8/29)
(5/1)
(1/7/60)
(11/9/61)
(3/23)
(1/11)
(5/17)

1.27

1.21

M

1.08

.93

.66
.81

.57
.93

.82

.73
.63

.56

.71
.70
.72
.73
.73

.58
.56
.59
.59
.57

57 P r e l i m i n a r y .
"
5 / Weekly a v e r a g e of d a i l y f i g u r e s . Average term of bond8 included in 23-26 y e a r s .
2 / Weekly a v e r a g e of d a i l y f i g u r e s . The s e r i e s i n c l u d e s bonds due o r c a l l a b l e i n 10 y e a r s o r more.
3/ Thursday f i g u r e s . Only g e n e r a l o b l i g a t i o n bonds a r e i n c l u d e d ; average term i s 20 y e a r s .
Note,—Highs and loirs a r e f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s f o r d i f f e r e n t
s e r i e s . For s p r e a d s , h ig h refers t o w i d e s t , and low t o n a r r o w e s t .




EXHIBIT C. Port I
SHORT-

AND

INTERMEDIATE-

TERM

INTEREST

RATES,

G O V E R N M E N T

i - MONTH I I I L S

YEAI ISSUES

1 - MONTH SILLS

Ill

I I I I I 1 I I I I I I I I I I I I I I I I I I I I L U I.

I I I I I I I I I I I

Exhibit C - Part I I

Date

1957 - H i g h
1 9 5 8 - Low
1959-60 - H
1 9 6 0 - 6 1 Low
1961 - High
1962 - High
Low
May 2 5
June 1
June 8
June 15
t / J u n e 22 g /

Discount
rate

1/

3.50
1.75
it. 00

3.00
3.00
3.00

3-month
b i l l s 2/

3.61*
.58
it.59
2.11
2.66

(10/ie)
( 5/29 )
(1/8/60)
(10/28/60 )
(12/29 )

3.00

2.81 (2/16)
2 . 6 5 (6/8)

3.00

2.69

3.00

3.00
3.00
3.00

2.68
2.65
2.69
2.73 •

~p
jg/

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
bills|3-5 yr. issues

Yields
6-month
b i l l s 2/
(per cent)

3-5 year
issues 2/

—
3.02
5.07
2.35
2.90

L o l i (10/18)
2.lU(6/6)
5 . 0 0 (12/24/59)
3 . 1 5 (5/12/61)
3.86(8/11)

(12/26 )
(1/8/60 )
(4/28/61)
(12/29)

3.02 (1/12)

3.88 (2/2)

.26

1.81

$

.38
1.51
1.19
.71

.12

2.71 (6/8)

3.1*3 ( V 6 )

.07

2.77
2.76
2.7k
2.76
2.80

3.57
3.53
3.50

.08
.08

3.1*6

3.50

.86

.01*

.79

.09
.07
.07

.88
.85
.85
.77
.77

Weekly r a t e shown i s t h a t i n e f f e c t a t end of p e r i o d a t t h e F e d e r a l Reserve Bank of New York.
"
Market y i e l d | weekly a v e r a g e s computed from d a i l y c l o s i n g bid p r i c e s . S e r i e s of 3 - 5 y e a r i s s u e s
c o n s i s t s of s e l e c t e d n o t e s and bonds.
Note.—Highs and lows a r e f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s f o r d i f f e r e n t s e r i e s .
F o r s p r e a d s , h i g h r e f e r s to w i d e s t , and low t o n a r r o w e s t .




\ 0
EXHIBIT D. Pari I
S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES,
B A N K S A N D OTHER PRIVATE B O R R O W E R S

STOCK E X C H A N G E
c m 10ANS

HNANCE COMPANY t k t l t

LI U 1

IXXLJ

Exhibit D - Part

Date

Stock Exchange
call loan 1 /

Prime
rate 1/

J-LL.1J .1 . . U _ L . 1 X I . U J _ 1

II

F i n a n c e company
paper 2/

Federal
funds 3/

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

(per cent)
1957 - High
1 9 5 8 - Low
1959-60 - High
1 9 6 0 - 6 1 Low
1961 - High
1962 - High
Low

U.50
3.50
5.50
U.50
U.50
U.50
it. 50

U.50
3.50
5.oo
U.5o
U.50
U.50
U.50

3.68
1.13
5.13
2.50
3.00
3.13
2.88

May
June
June
June
June

it. 5 0
U.50
lt.50
it. 5 0
U.50

U.5o
U.5o
U.50
U.50
k.$o

2.88
2.8b
2.99
3.00
3.01

25
1
8
15
22 p /

.

<11/15)
<4/8)
(1/22/60)
<8/5/61)
(12/29)
(U/13)
(6/1)

3 . 5 0 (11/8)
.13(5/29)
U . 0 0 (5/13/60)
.U3 (3/27/61)
2 . 8 8 (12/29)
2.95 (6/22)
1.30 (1/26)
2.50
1.88
2.15
r/2.75
2.95

.63
-.35
1.02
.11
.56
.U1
.19
.19
.20
.3U
.31
.28

Weekly r a t e shown i s t h a t i n e f f e c t a t end of p e r i o d . S t o c k Exchange c a l l l o a n r a t e i s g o i n g r a t e
on c a l l l o a n s s e c u r e d by c u s t o m e r s 4 s t o c k exchange c o l l a t e r a l a t New York C i t y b a n k s . Prime r a t e
i s t h a t c h a r g e d b y l a r g e banks on s h o r t - t e r m l o a n s t o b u s i n e s s b o r r o w e r s of t h e h i g h e s t c r e d i t
standings
2/ Average of d a i l y r a t e s p u b l i s h e d by f i n a n c e companies f o r d i r e c t l y p l a c e d p a p e r f o r v a r y i n g m a t u r i t i e s
i n t h e 9 0 - 1 7 9 day r a n g e .
3/
Weekly a v e r a g e of d a i l y e f f e c t i v e r a t e , w h i c h i s t h e r a t e f o r t h e h e a v i e s t volume of p u r c h a s e and
s a l e t r a n s a c t i o n s as r e p o r t e d t o t h e F e d e r a l R e s e r v e Bank of New York,
Note.-—Highs and lows a r e f o r i n d i v i d u a l s e r i e s and may b e on d i f f e r e n t d a t e s f o r d i f f e r e n t s e r i e s .
For s p r e a d s , h i g h r e f e r s t o w i d e s t , and lovr t o n a r r o w e s t .




STOCK MARKET

/""TVly

v / ' X ,
r••

—

* « «

^

/
195 7

Exhibit E - Part

Bate

- High
tow
- High
Low

Stock p r i c e
i n d e x 1/

1960-61

7 2 . 0 k (12/8/61)
5 3 . 3 2 (10/21/60)

1962

70.91 (3/16)

April
MayJune 8
June 15
J u n e 22 g /

52.68 (6/22)
68.05
62.99
58.45
55.89
52.68

Common
stock
yields 2/f
(per cent)

II

volume y j
(millions
of s h a r e s )

2.82
3.62
2.93
3.96

5.8
2.2
10.1
3.0

3,05
3.32
3.57
3.73
3.96

3.5
5.0
4.2
5.4
4.2

Stock market customer c r e d i t
Customers1j
Bank
debit balloans to
ances 4 / 1"others"
(Ion m i l l i o n s o f d o l l a r s )

Total

SL

5 , 6 0 2 (12/61)14,259 ( 1 2 / 6 1 ) 1 , 3 7 7 ( 8 / 3 0 / 6 1 )
4 , l 4 2 (5/60) 3 , 0 0 4 (7/60) l , i a (5/25/60)
5,491 (4)
5,408 (5)

4,111 (1)
4,000 (5)

1,418
1,348

5,491
5,408

4,079
4,000

(5/9)
(1/24)

1,412
1,408
1,381
1,354

n.a.—Not available.
j>/ P r e l i m i n a r y #
.
y
S t a n d a r d tod P o o r ' 8 c o m p o s i t e i n d e x erf 5 0 0 common s t o c k s , weekly c l o s i n g p r i c e s , 1941-43*10.
Monthly d a t a a r e a v e r a g e s of d a i l y f i g u r e s r a t h e r t h a n of F r i d a y ' s o n l y . Highs and lows a r e f o r
Friday's data only.
y
S t a n d a r d and P o o r ' s c o m p o s i t e s t o c k y i e l d b a s e d on Wednesday d a t a c o n v e r t e d t o w e e k l y c l o s i n g
p r i c e s by F e d e r a l R e s e r v e . Y i e l d s shown a r e f o r d a t e s on which p r i c e i n d e x r e a c h e d i t s h i g h
3/
4J
5/

A v e r a g e s of d a i l y t r a d i n g volume on t h e New York S t o c k Exchange.
End of month f i g u r e s f o r member f i r m s of t h e New York S t o c k Exchange w h i c h c a r r y m a r g i n a c c o u n t s \
e x c l u d e s b a l a n c e s s e c u r e d by TJ. S . Government o b l i g a t i o n s .
Wednesday f i g u r e s f o r w e e k l y r e p o r t i n g member b a n k s . E x c l u d e s l o a n s f o r p u r c h a s i n g o r c a r r y i n g
U. S . Government s e c u r i t i e s . P r i o r to J u l y 1 , 1959, such l o a n s a r e e x c l u d e d o n l y a t b a n k s i n
New York and C h i c a g o , Weekly r e p o r t i n g beaks a c c o u n t f o r a b o u t 70 p e r c e n t of l o a n s t o o t h e r s .
F o r f u r t h e r d e t a i l see B u l l e t i n .




\ v
EXHIBU_F._Po.rl I

PRIVATE

HOUSING

Exhibit F - Part II
Date

1961 - May
July
Aug.
Sept.
Oct.
Nov.
Dec.

'
1962

-

Jan.

Feb.
Mar.
Apr.
May 2 /

Total
Seasonally adjust- Unadjusted
FA
H
ed annual rate
(Thousands of units;
1,291
1,381
1,3U3
1,326
1,383
1,U3U
1,351
1,297
1,273
1,152
l,i*3U
i/l,538
1,587

127
132
125
127
122
121*
103
82
81
76
1/115
11*7
155

Jnadjusted
I
V
A

Conventional

2h
22
21
26
21
23
23
17
18
15
21

Tj

M H V




%

96
103
97
93
9h
91
72
59
56
56

x/88

113
121

Exhibit G :

H.llt

Y i e l d s on New C o r p o r a t e 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 - J a n u a r y
February
March
April
May
June
Weekly a v e r a g e s :
1961 - J u l y 7
lit
21
28
August 4
11 18
25
September 1
8
15
22
29
October 6
13
20
27
November 3
10
17
2h
December 1
8

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

It
it
- 2
7
9
3
it
5
6
7
7

1
1
2
2
1
1

273.0
115.0
78.8
200.0
229.0
115.0
' 130.0
39L5
2l*0.0
299.0
11*8,0

8.0
200.0
65.0
55.0
20.0
ilO.O

——

U.62
1*. 59
W38
it. 26
It. 32
it. 39
h*k5

L5o

4.23
it. 17
>09

lt«60
it* 61*
l*cl*6
k.5k
lu73*
L60
—-

—-

—
—

1

18.0

U.U6

1
2

60,8
1*5.0

it. 36
It. 25

2
3
3

60.0
95.0
15.0

it . 2 1
it, 2 8
it. 2 1

~U
1
1
2

9k.0

L 29
it, 3 5

60=0
30,0
75.0

Number
of i s s u e s
included
December 1 5
22
29

1

March 2
9
16
23
30
April 6
13
20
27
May k
11
18
25
June 1
8
15
22
29

:

1:0.0

lt.55*

it. 68 C6/16)
it. 21 ( 1 1 / 3 )

1 9 6 1 - 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

U. 50

3

70.0

it.ltO

2
1
1

19.5
300.0
50.0

it.ltO
lt.52*
it.50

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
lt.29
it. 23
it. 21
it.22
it. 2 1
It.12
lt.17*

2
2
2
2
1
3
k
3

115.0
28,0
itl.O
39.0
17.0
115-0
67,0
litS-O

It.lit
it. 2 1 *
it.02
it.07
it.06
lt,2lt*
it. 12
it,H

.

lt,ltO
it. 29

Note:
and A b y 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 , e q u i p m e n t t r u s t a n d 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 a n d f o r e i g n c o m p a n i e s , a n d i s s u e s g u a r a n t e e d b y t h e
F e d e r a l Government) w e i g h t e d b y s i z e of i s s u e s . Y i e l d s on Aa- a n d A - r a t e d b o n d s a r e
f i r s t a d j u s t e d t o a n Aaa b a s i s , u s i n g t h e c o m p a r a b l e s p r e a d s i n y i e l d s on s e a s o n e d b o n d s
(Moody's a v e r a g e s ) . A v e r a g e s r e f l e c t c h a n g e s 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 a v e r a g e s 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 b e c a u s e of t h e s m a l l number o r s p e c i a l
c h a r a c t e 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 .
Source:
'
Digitized k l y FRASERe r a l R e s e r v e ; .monthly d a t a , F i r s t N a t i o n a l Bank o f New York,
w e e for d a t a , F e d
,



If
H.lit

Exhibit H
Long-term C o r p o r a t e 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 P l a c e m e n t s
( 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
1

I960

•
S t a t e and l o c a l 2/
1 I960
1962
1 1961
.0

592
859
807

580
667
562

570
715
860

p/843
glOOO
e/625

713
689
764

•,ud

1,120
e/700
e/[,000

2,118
1,259
1,318

761
577

i,o44

e/850
e/800
e/650

723
641
1,034

719
545
991

July
August
September

1,028
762
64?

736
967
726

485
6o4
734

492
606
683

October
November
December

1,090
918
1,000

890
-956
852

678
789
606

348
501
491

2,258
S/?.

1,809
1,695
2,437
3,038

2,11*5
2,382
2,428
2,698

2/2,468
e/2,300

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

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

^5,o?8

f,50k
8,9a
11,979

4,527
6,955
9,653

2/4,768

4,563
6,366
8,435

4,136
5,916
7,257

April
Hay

1st
2nd
3rd
ii'th

quarter
quarter'
quarter
quarter

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

"

.

E x c l u d i n g f i n a n c e companies 3 /
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

2,199

Year
e/
1/
2/
3/

1,55k
4,552
2,337
2,807

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

11,253

8,246

Estimated
BSdeiBl R e s e r v e 2/
Preliminary c
Securities
kcobaege Commission e s t i m a t e s of n e t p r o c e e d s .
i n v e s t m e n t B a n k e r s 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.
TotAl new c a p i t a l i s s u e s e x c l u d i n g o f f e r i n g s of s a l e s and consumer f i n a n c e
oompanie^o




H. lit.
New Corporate S e c u r i t y I s s u e s , Type of I s s u e and I s s u e r
( I n m i l l i o n s of d o l l a r s )
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
ana
P u b l i c CommuniMfg. u t i l i t y c a t i o n s
Total Publicly Privately pfd.
offered offered
stock

Quarter
or
month

2,265

931+
1,07k
1,336
1,1+62

795
770
75b
955

1,992

I'M
3,236

662
2,303
772
967

880
1,275
1,139
1,1+21+

2,378

1,155

716

507

601
6#
696
2,231
1,31+2
1,779
1,075
813
678
1,155
987
1,091+

178
273
211
713
666
921+
1+21+
225
123
336
1+H+
217

291+
255
331
31+8
355
572
392
l+ll
336
509
31+8
567

129
167
151+
1,170
320
283
259
177
218
310
225
310

273
1+97
386
652
230

#2
232
253
238
350

2,537
2,520
2,832

— Jan.
Feb.
Mar.
Apr.
May
June
- July
Aug.
S e p t.
Oct.
Nov.
Dec.

I

- Jan.
61+7
Feb.
881+
Mar.
81+7
Apr.
1,222
May e / | 71+0

Other
issuers

298
511
562
625

598
808
652
696

189
H+9
317
381

1,059
913
896
997

515
hk9
1,774 1,466
651+
595
81+5
836

381
1,081
595
836

< 81
1,095
lOh
11+7

832
1,052
803
1,263

1+30

1+56

717

169
99
21+8
571+
117
++
1+1+6
1+28
255
252
271
215
306 _
_

137
160
81+
251+
1+39
389
369
215
111
306
362
168

21
1+1
19
99l+,
85
16
16
13
75
25
80
1+2

253
368
211
297
289
1+67
315
279
209
1+87
291
1+85

205
131
318
378_
200

89
11+8
193
376
230

73
362
21
86
1+0

225
218
275
280
230

536
692
1+29
1+16

11+3
155
poo
332
160

655

1

57 P r e l i m i n a r y .
e / Estimated by F e d e r a l Reserve.
T / Gross proceeds exceed
n e t proceeds by t h e c o s t of f l o t a t i o n .
2 / For t o t a l see E x h i b i t Hj 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 o t h e r 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 .
Source. — S e c u r i t i e s and Exchange Commission,




H. lU

Exhibit J
Other S e c u r i t y O f f e r i n g s
.(In millions-of dollars)
Gross l o n g - t e r m 1 /
F e d e r a l agency 3/
F o r e i g n government 2 /
1 1961
|
1962
1962
1 1961
1 I960

/'

JanuaryFebruary
March
April
May

6
29
20
2
66
29
5
2

lh2
10
35
10
e / 88

July
August
September
October
__Noxrember
December

1*3
3k

236

Year
Jan„-May

123

e/265

2k6
156

2
175
70
3U
72
ho
25
1
3.6
3k
2
kl

e/

l*6l
—•

182
150
150
ll*8
351*

252
100
ll*9
278
250
193
225

j
j

I960

—

199
- 160
ll*9
181

1,1*1*8

533
e/863

3#

1,672

5oi

981

Net s h o r t - t e r m h/
F e d e r a l agency 3 /
S t a t e and Local government 5 /
JanuaryFebruary
March
April
May
June
July
August
September
October
November
December

18

I166

-186
PAO
2-216

Year
Jane=\May

-

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

58
11*0
-80
70

-11*6

17
1/

-11*1*
-162
-17k
-79
-87
207
22
193
108
98
56
-Ilk
-76

-633

g / ^7

-61*6

-561*

-157
1*8
10.5

-175

-16
50
-189

520
p/l^P

2l*7
-156
226
-3U6
2/116

-

18 .

202

1*2

i
!
j
!

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

Preliminary,
e / E s t i m a t e d by F e d e r a l R e s e r v e .
These d a t a d i f f e r f r o m t h o s e i n E x h i b i t H in. t h a t r e f u n d i n g i s s u e s . , a s w e l l a s new
c a p i t a l i s s u e s , a r e i n c l u d e d . Long-term s e c u r i t i e s a r e d e f i n e d a s t h o s e m a t u r i n g
i n more t h a n one y e a r .
2 / I n c l u d e s s e c u r i t i e s o f f e r e d i n t h e U n i t e d S t a t e s by f o r e i g n governments and t h e i r
p o l i t i c a l s u b d i v i s i o n s and i n t e r n a t i o n a l o r g a n i z a t i o n s . S o u r c e ; S e c u r i t i e s and
Exchange C o m i s s i o n .
3 / I s s u e s n o t g u a r a n t e e d by t h e U. S. Government, S o u r c e : l o n g - t e r m , S e c u r i t i e s and
Exchange Commission; s h o r t - t e r m , T r e a s u r y Department and F e d e r a l R e s e r v e .
h / These d a t a d i f f e r f r o m t h o s e i n E x h i b i t H and a bove i n t h a t t h e y r e p r e s e n t new
o f f e r i n g s l e s s r e t i r e m e n t s , w h e t h e r f r o m t h e p r o c e e d s of r e f u n d i n g i s s u e s o r f r o m
o t h e r f u n d s . Data i n c l u d e o n l y i s s u e s w i t h o r i g i n a l m a t u r i t y of one y e a r o r l e s s ,
5/ Prin ipally ta
Digitized for cFRASERx and bond a n t i c i p a t i o n - n o t e s , w a r r a n t s o r c e r t i f i c a t e s and P u b l i c
Housing A u t h o r i t y n o t e s . In some i n s t a n c e s PEA. n o t e s i n c l u d e d may have a somehttp://fraser.stlouisfed.org/ y e a r . S o u r c e ; Bond Buyer and f e d e r a l R e s e r v e ,
what l o n g e r t h a n one

Federal Reserve Bank of St. Louis

If
Exhibit K

H.l4

Large L o n g - t e r m P u b l i c 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
( O t h e r t h a n U.' S. T r e a s u r y ) 1/
P r o c e e d s of L a r g e I s s u e s O f f e r e d
( 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
January
February
\
March •
April
May
i
1
\
\
I
i
>1962 -

557
532
1*75
185
168
354
391
255
195
1+25
366
648
200

Corporate
Bonds
Convertible
(other than
bonds
convertibles)
1*80
1*35
285
165
78
205
320
125
170
1*25
330
1*30
170

"

Stocks
62
97
115
20
58
81
1*5 130
25

15
75
33
67
26

21
167
.30

IS
51

State
and
local
government
256
616
179
281
1*35
326
1*80
,307
561
662
259
1*23
373

Other
2/
25
151
——

100
73
1*0
250

,

11*5
61*
30
55
88

L a r g e I n d i v i d u a l I s s u e s O f f e r e d J u n e 1 t h r o u g h 22

Issuer

Type 3 /

Amount
Coupon
(millions
r a t e or O f f e r i n g
Maturity net i n t e r - yield
of
dollars)
est cost

Rating

CORPORATE
/
Alabama Power Co.
1 s t mtg. b d s . 1 7 . 0
„ s . Mountain S t a t e s Tel. & T e l .
\
Co.
Deb.
50.0
U n i t e d Gas Corp.
1 s t rafcg&coH.tr.bdsl*OeO
T r a n s c o n t i n e n t a l Gas P i p e
Line Co.
S.To deb
30.0
d T r a n s c o n t i n e n t a l Gas P i p e
/
L i n e Co.
Pfd.stk.
15.0
,i
Columbia Gas System, I n c .
Deb.
25.0
C o n t a i n e r Corp. of America
S„i. deb.
25.0
N o r t h e r n S t a t e s Power Co.
1 s t mtg* b d s . 1 5 . 0
Texas Gas T r a n s m i s s i o n Co.
Deb.
1*0.0
C o n s o l i d a t e d E d i s o n Co.
l s t & r e f . mtg. bds ,100 0 0
C i n c i n n a t i Gas & E l e c t r i c
Co.
1 s t mtg. b d s . 2 5 . 0
S;X. d e b
P e t Milk Co.
20.0
* P h i l l i p s , No V. ( f o r e i g n c o r p j
Com. s t k .
75.0
STATE AND LOCAL GOVERNMENT
Maricopa Co.s Arizona

1
Monroe FRASER
j
Digitized forCo., New York


G.O.
G.O.

11.2
10.8

1992

4.39

1982
1987
1987
1992
1982
1992

4-1/2
4.1*0
4-3/8
5
4-3/8

1992
1982

4-3/8
4-1/4

1963-73
1963-91

2.72
2.85

.

Baa

4.50
4.4o
4.28
5.00
4.26

5

Aaa
A

5.10

l*-l/2
l*-5/8

A

4.38
4.45

4-3/8

2002
1982

A
A
Aa
Baa
Aa

4.23
4.30

Aaa
A

1.45-2.90
1.50-3.16

A
Aaa

K-2

H.lU

Large I n d i v i d u a l I s s u e s O f f e r e d June 1 through 22 (Cont'd)

Type 3 /

\
Coupon
Amount
r a t e or O f f e r i n g
(millions
Maturity
net inter- yield
of
est cost
dollars)

Rating

STATE AND LOCAL GOVERNMENT
(Cont'd)
~
S t a t e of C a l i f o r n i a
P u b l i c U t i l i t y D i s t . No. 1 3
Chelan Co. 3 Wash.

G.O.
Rev„-Ut„

100.0

I96I1-88

3.21

I.8O-3.I1QV Aa

1 3 o 8 i / 2012

n.a.

n.a,

30o0

5-1/2

5.71

OTHER
Govt, of A u s t r a l i a

1982

^-—Rights o f f e r i n g .
1 / I n c l u d e s c o r p o r a t e 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 m i l l i o n and o v e r ;
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 o v e r .
2 / I n c l u d e s 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 R e c o n s t r u c t i o n and
Development i s s u e s and non-guaranteed i s s u e s b j F e d e r a l a g e n c i e s .
3 / In t h e c a s e of S t a t e and l o c a l government s e c u r i t i e s s J G,0„ denotes g e n e r a l
o b l i g a t i o n s ; R e v . - U t . , revenue o b l i g a t i o n s secured only by income f r o m
p u b l i c u t i l i t i e s ; R e v . - Q . U t . , revenue bonds secured only by revenue from
q u a s i - u t i l i t i e s ; R e v . - S . T . , revenue bonds s e c u r e d by revenue f r o m s p e c i f i c
t a x e s o n l y ; R e v . - R e n t . , revenue bonds secured s o l e l y by l e a s e payments.
h / 1 / 4 p e r c e n t bonds maturing I988 were r e o f f e r e d t o y i e l d ii.35.
By An a d d i t i o n a l $27.6 m i l l i o n was s o l d t o r e f u n d o u t s t a n d i n g bonds.




A

H.ll*

Exhibit L
Forthcoming Large Long-term P u b l i c 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
( O t h e r t h a n U. S . T r e a s u r y ) 3 /
Expected P r o c e e d s f r b m Forthcoming Large I s s u e s
Date of
computation

During month f o l l o w i n g
Subsequent t o
d a t e 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 - May 31
June 30
J u l y 31
Aug. 31
S e p t , 29
Oct,- 3 1
Nov. 30
Dec. 29
1962 - J a n . 31
F e b . 28
Mar. 30
Apr. 30
May 3 1

187
521
170
175
3#
3U6
356
161
U80
222
628
185
587

1*31
195
U06
399
251
597
295
223
1*65
153
1*53
333
1 81*

75
73
35

61*
95
55

611
666
255
21*0
50l*
. Ull
421
591
52531*1
693
598
692

771
291
537
530
1*51*
693
1*98
1*15
567
239
539
1*52
337

Other 2 /
75
73
35

-

6U
95
55

Forthcoming Large O f f e r i n g s , a s of J u n e 22
Issuer

Type

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

Approximate d a t e
of o f f e r i n g

CORPORATE
Puget Sound Power & L i g h t Co.
New England E l e c t r i c System
New England T e l . & T e l . Co.
A t l a n t i c C i t y E l e c t r i c Co.
Houston L i g h t i n g & Power Co.
Southwestern B e l l T e l . Co.
A i r Reduction C o . , I n c .
Commerce O i l R e f i n i n g Corp.
V i r g i n i a E l e c t r i c & Power Co.
Columbia B a n c o i p o r a t i o n

Pfd. stk.
Com. s t k .
Deb.
Deb.
1 s t mtg. bds.
Deb.
Conv.sub.deb.
Deb., b d s . & com.
Com, s t k .
Conv.sub.deb.

15.0
18.3
50.0
15.0
30.0
100.0
31*. 5
1*5.0
1*0.0
30.0

June 27 /"~"
June 29
( r i g h t s expire)
J u l y 11
J u l y 19
July
August 8
Indefinite
Indefinite
Indefinite
Indefinite

j
I

STATE AND LOCAL GOVERNMENT
Houston I n d . Sch. D i s t . , Texas
Penna. P u b l i c School Bldg. Auth.
Wisconsin S t a t e Agencies Bldg. Corp.
B a l t i m o r e C o . , Md.
Georgia S t a t e highway Auth.
D a l l a s I n d . Sch. D i s t . , Tex.
Texas U n i v . / T e x a s A&M, Texas
Memphis, Tenn.
Los Angeles Sch. D i s t . , C a l .
^ G r e a t e r P e o r i a S a n i t a r y & Sewage
Digitized for sFRASER t . , 111.
Di posal D i s
|



G.O.
Rev.-Rent.
"Rev. - R e n t .
G.O.
Rev.-S.T.
G.O.
Rev.-Rent.
G.O.
G.O.
G.O.

12.5
lk.2
13.2
18.8
16.6
10.0
10.0
23.0
21.0

June
June
June
June
June
June
June
July
July

26
26
26
27
27
27
28
10
10

20.0

J u l y 10

.4

L-2

H.lli

Forthcoming L a r g e O f f e r i n g s , a s of June 22 ( C o n t ' d )
Issuer
STATE AND LOCAL GOVERNMENT
(CONT'D)
T a r r a n t County, Texas
^ F l o r i d a Development Comm.
Orlando U t i l i t i e s Comm., F l a .
•^Dallas, Texas
San Diego U n i f , Sch. D i s t . , C a l
San A n t o n i o 3 Texas
De Kalb C o . , Georgia
P i t t s b u r g h , Penna.
J e f f e r s o n County, Colorado
Bade County, F l o r i d a
J a c k s o n v i l l e Expressway A u t h . ,
Fla.

Type

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

Approximate d a t e
of o f f e r i n g

G.O.
Rev.-Rent.
Rev.-lit.
Rev.-Ut.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.

12.it
1U.8
20.0
ik.o
35.0
19.2
1:6.0

Rev.-Ut.

ko.o

Indefinite

Bonds

25.0

rdefinite

13.5
25.0

lLo

.

J u l y 12
- J u l y 12
J u l y 17
J u l y 23
J u l y 31
August 8
Indefinite
Indefinite
Indefinite
Indefinite

OTHER
Kingdom of Norway-

*—Included in t a b l e f o r f i r s t time.
1 / I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of $15 m i l l i o n and o v e r ; S t a t e and l o c a l
government i s s u e s of $10 m i l l i o n and o v e r .
2 / I n c l u d e s 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 R e c o n s t r u c t i o n and
Development i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s .
N o t e . — D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e of i s s u e : None.




i
|
u
4

LIBRARY
J UN 27

1962

FEDERAL HEijERVE BANK
OF RICHMOND

C/4JPz7~/9<L / X / ) * K C
(/N 77)£ U.S.)

^

Corporate Security Offerings in the
First Quarter of 1962

June 25, 19
H.lli
(Supplement)
*

Net proceeds from corporate security offerings during JanuaryMarch of this year totaled $2.3 billion, nearly one-fifth more than the
small volume of the corresponding period of 1961 but well below the high
first quarter totals of 1957 and 1958. Almost all of the proceeds were
for new capital; financing to refund outstanding securities totaled $62
million, less than half of last year's first quarter total.
Industrial distribution. Security sales by communication
companies totaled $1*56 million in the first quarter, reflecting a $300
million debenture issue of AT&T sold in February this year. Other broad
industry groups showing appreciable year-to-year increases included
manufacturing, electric, water and gas utilities, and commercial firms.
New offerings of railroads and mining showed little change, while issues
of other transportation and financial and real estate companies were below
the year-ago volume.
Nejf security offerings of manufacturers totaled $0.7 billion,
one-fourth more than a year earlier and the second largest first quarter
volume (after 1957) on record. Almost one-half of the proceeds were to
finance plant and equipment expenditures, which this year are expected
to be 8 per cent above 1961 but 8 per cent below 1957. No large issues
of $100 million or over were sold during the first quarter, and volume
was spread widely among the major industrial classifications.
New security financing by electric, gas and water utilities
amounted to $0.1* billion during the first three months of 1962, one-tenth
more than last year but considerably less than during the first quarter
of other recent years. Utility outlays for plant and equipment during
the first quarter were slightly larger than a year ago (though no increase
is projected for the year as a whole), but repayment of bank loans nevertheless totaled close to $300 million, more than twice a year earlier.
Thus, internal funds, mainly depreciation allowances, appear to be providing
a larger share of this year's utility financing requirements.
Financial and real estate companies offered securities with net
proceeds of $0.1* billion during the first quarter of this year, one-fifth
less than during January-March last year and the smallest first quarter
volume since 195U. This decline was due entirely to a sharp drop in new
offerings t y sales and consumer finance companies, which amounted to only
%
$59 million, one-fourth the 1961 volume and considerably less than in the
first quarter of any other recent year. Net sales of directly-placed
short-term paper by finance companies, in contrast, were sharply larger
this year than last. Security sales of other financial and real estate
firms of $0.3 billion were a first quarter record and almost one-half more
than a year earlier.
Types of issues. Gross proceeds, which include refundings and
costs of flotation, totaled $2.3 billion during the first quarter of this
year. Publicly-offered issues amounted to $1.6 billion, three-fifths larger




-2-

than last year; private placements of $0.7 billion, on the other hand, were
one-fifth less than last year and in the smallest volume since 195U.
In the January-March period, bond financing of #1.9 billion was
one-fifth larger than last year, while sales of common stock issues of
|0.5 billion were two-fifths larger; both figures, however, were below
earlier highs. Preferred stock financing amounted to only $16 million,
the smallest volume since 19^3. Financing through convertible bonds was
rather light, about #0.1 billion, almost one-third less than last year.

Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




Table 1
Coxporate Security Offerings for New Capital by Type
of Business of Issuer and Use of Proceeds
First Quarter 1957-62
(Net proceeds in millions of dollars)
1962

1961

i960

1959

1958

1957

2,320

1,951

2,211*

2,232

3,273

3,1*93

62
2,258
2,009
250

11*2
1,809
1,61*8
161

69
2,11*5
1,972
171*

28
2,201*
1,899
306

131*
3,139
3,066
73

19
*
3115
,**
3,180
261*

Manufacturing
New money
Other purposes

655
556
99

515
1*13
102

298
261*
3*
1

358
288
70

53i*
1*95
19

1,297
1,11*7
150

Electric, gas & wtr. util.
New money
Other purposes

1*30
1*23
7

381
376
5

598
, 597
2

813
71*5
68

1,091
1,066
25

981
915
66

Communication
New money
Other purposes

1*56
1*53
3

81
75
5

189
189

105
101*
2

867
865
1

1*28
1*25
3

Railroad
New money
Other purposes

18
*
- 18
*

51
51

31
31

52
52

95
95

112
112

—

—

—

—

—

Total corporate offerings
Refunding
New capital
New money
Other purposes
New capital

—

.

y

Other transportation
New money
Other purposes

9*
1
93
1

157
156
1

119
117
2

239
227
13

90
88
2

90
89
1

Commercial and other
New money
Other purposes

181*
155
28

111*
8*
1
30

171*
129
15
*

197
103
9* .
1

16
*
13
*
3

. 67
57
10

12
*
36
.6

57
53
1
*

115
52
63

26
25
1

53
18
*
5

83
71
12

350
21*5
105

1*53
13
*9
15

620
591
29

11*
*1
355
59

382
365
17

387
365
22

59
291

, 255
198

12
*9
191

205
209

21*0
11*2

208
179

Mining
New money
Other purposes
Financial and real estate
New money
Other purposes
Other
Sales and cons. fin.

17 Less than $500,000.
Rote.—Details may not add to totals due to rounding.
Source.--Securities and Exchange Commission and Federal Reserve.




—U—

Table 2
Security Offerings for New Capital by
Manufacturing Companies
First Quarter 1957-62
(New proceeds in millions of dollars)
1962

All Manufacturing
Chemicals
Electrical machinery
Foods
Nonelectrical machinery
Petroleum and refining
Textiles and apparel
Stone, clay and glass
Primary iron and steel
Other transportation equipment
Paper
Printing
Fabricated metal products
Rubber products
Lumber, wood products
Motor vehicle and equipment
Primary nonferrous metals
Beverages
Tobacco
Other 2/

1961

i960

1959

1958

1957

655
91
87
6U
61
57
56
55
28
27
22
20
9
7
5

515
35
18
*
13
9
6U
21
26
31
5
36

298
22
92
12
18
3
21
13
3
11

358
33
25

51U
67

1,297
51
18
17
91
393

h

3
3
|

78

6
19
16
1
13

2
25
11
3
10
1

168

51

h

3k

19
1
6
1/
63
7
38
3
17
h

2

y
?5
15

36

h3

3
58
15
6
Hi
23
i
i
76
1
*
i
t
1
2
15
6h

1

m

1/ Less than $500,000.
2/ Includes small volume of issues of foreign manufacturers not further classified.
Note.—Details may not add to totals due to rounding.
Source. —Securities and Exchange Commission and Federal Reserve.




2h

57
106
36
18
*
h22

6*

51"
30$
5$"
,§
•,

Table 3

-5-

Total Corporate Security Offerings by Type of Issue
First Quarter 1958-62
(Gross proceeds in millions of dollars)
Type of issue

1962

1961

i960

1959

Total corporate offerings

2,378

1,992

2,265

2,282

3,318-

3,558

Type of offering
Public
Private

l,6Wi
731*

1,0U7
91*6

110*
,*1
861

1,1*27
855

2,521
797

2,626
932

880
(120)

1,729
931*
795
(111*)

1,622
787
835
(136)

2,81*6
2,067
779
(805)

2,706
1,798
908
(1*69)

16

96

100

Ik-

182

98

1*90

35U

1*35

518

289

753

Type of security
Bonds and notes
Public
Private
(Memos Convertible)

1,871
1,155
716
^
(78)

Preferred stock
Common stock

Sourceo —Securities and Exchange Commission.




. 1958

1957

CHART 1
CORPORATE SECURITY OFFERINGS)
USE OF NET PROCEEDS
First Quarter 1957-62
Millions of dollars
Refunding

3,000 -

New
Money

^ 3
2,000 •

Other
Purposes

1957




1959

1961

CHART 2
CORPORATE SECURITY OFFERINGS BY TYPE OF BUSINESS
First Quarter 1957-62
Millions of dollars

Manufacturing

2,000

Public
Utilities

1,000 - Communication

Real Estate
Financial

1957




1959

1961

CHART 3
CORPORATE SECURITY OFFERINGS BY TYPE OP ISSUE
First Quarter 1957-62
Millions of dollara

Preferred

Common

2,000
Nonoonvertible

1,000

Convertible

1957




1959

1961

IP

CHAR! 4
PERCENTAGE DISTRIBUTION OF BONES SOLD BETWEEN
THOSE PUBLICLY OFFERED AND PRIVATELY PLACED
First Quarter 1957-62
Per cent

25"




1959

1961


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102