Full text of H.16 Capital Market Developments : May 21, 1962

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Not for Publication DECONTROLLED AFTER SIX MONTHS
H.lU

~

MAY 2 3

1962

FEDERAL RESERVE BANK

May 21, 1962.
iCAPrr/iT. m RKF.T DEVELOPMENTS
INTHE UNITED STATES

LIBRARY

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

OF RICHMOND

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 i n moderate
volume l a s t week b u t i s expected t o be r a t h e r s u b s t a n t i a l t h i s week.
During t h e week ending %ay 1 8 , 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 '
amounting t o $56 m i l l i o n were s o l d ; f o u r S t a t e and l o c a l government bond
i s s u e s with p a r v a l u e of $63 m i l l i o n were o f f e r e d ; and t h e European Coal
and S t e e l Community and t h e Japan Development Bank s o l d bond i s s u e s of
$25 and $L6 b i l l i o n , r e s p e c t i v e l y . This week, ending May 25, two c o r p o r a t e
i s s u e s t o t a l i n g $51 m i l l i o n a r e scheduled f o r s a l e and f o u r l a r g e S t a t e
and l o c a l i s s u e s amounting t o $200 m i l l i o n 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 bonds
were mixed b u t minor l a s t week,, Y i e l d s on both Aaa- and B a a - r a t e d
c o r p o r a t e bonds d e c l i n e d one b a s i s p o i n t f u r t h e r t o new lows f o r t h e
y e a r . A a a - r a t e d S t a t e and l o c a l government bond y i e l d s increiased one
b a s i s p o i n t t o 2.9h p e r c e n t , while y i e l d s on B a a - r a t e d i s s u e s were
unchanged* Y i e l d s , on U. S„ Government bonds i n c r e a s e d 2 b a s i s p o i n t s 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 ,
d e c l i n e d t o U.02 p e r c e n t l a s t week. At t h i s l e v e l new o f f e r i n g y i e l d s
were a t t h e i r lowest l e v e l s i n c e J u l y 1958, and 10 b a s i s p o i n t s below
t h e p r e v i o u s low f o r t h e y e a r r e a c h e d t h e week ending; A p r i l 13.
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 Treasury
b i l l s were s t a b l e l a s t week while 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 i n c r e a s e d 7 b a s i s p o i n t s . S e v e r a l major f i n a n c e companies
announced a r e d u c t i o n from 3 t o 2 - 7 / 8 p e r c e n t i n t h e r a t e p a i d on p a p e r
with 90-179 m a t u r i t y t h e middle of l a s t week; a s a r e s u l t , t h e weekly
average r a t e on such p a p e r d e c l i n e d 4 b a s i s p o i n t s t o 2,96 p e r c e n t .
The F e d e r a l f u n d s r a t e d e c l i n e d 5 b a s i s p o i n t s t o 2,55 per c e n t .
Housing s t a r t s . P r i v a t e housing s t a r t s ( f a r m and n o n f a r m ) ,
which i n March had advanced 25 per c e n t f r o m t h e reduced February r a t e ,
r o s e 8 p e r cent f u r t h e r i n A p r i l 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 . 5 m i l l i o n . This was 3 p e r c e n t above t h e advanced r a t e reached l a s t
October and t h e h i g h e s t s i n c e t h e summer of 1959. The r i s e so f a r t h i s
s p r i n g h a s , i n p a r t , r e f l e c t e d a s u b s t a n t i a l b u i l d - u p of p e r m i t s during
t h e w i n t e r months whaa the weather-was u n u s u a l l y inclement and s t a r t s
were d e c l i n i n g .
On a three-month moving average b a s i s , t h e annual r a t e of s t a r t s
f o r t h e most r e c e n t p e r i o d was 1.1* m i l l i o n , T h i s was up 7 p e r cent f r o m
t h e f i r s t q u a r t e r average and j u s t below t h e advanced r a t e f o r t h e
September-October-November p e r i o d l a s t y e a r .




While Government--underwritten s t a r t s a l s o r o s e
seasonally i n A p r i l , the increase in conventional s t a r t s
s t r i k i n g „ In March and A p r i l , such s t a r t s accounted f o r
of t h e t o t a l o r s l i g h t l y more than t h e h i g h p r o p o r t i o n a

more t h a n
was p a r t i c u l a r l y 77 p e r cent
year e a r l i e r .

Stock market c r e d i t . Customer c r e d i t i n t h e stock market
i n c r e a s e d s l i g h t l y f u r t h e r i n A p r i l f o r the second month i n a row,
i n c r e a s i n g $34 m i l l i o n t o
b i l l i o n a t t h e end of t h e month. Bank
l o a n s t o o t h e r s i n c r e a s e d f o r t h e s i x t h s t r a i g h t month, r i s i n g $38
m i l l i o n . T h i s i n c r e a s e was p a r t l y o f f s e t by a s l i g h t d e c l i n e ($4 m i l l i o n )
i n customer d e b i t b a l a n c e s ( e x c l u d i n g t h o s e secured by IL 3, Government
securities).
Monqy borrowed by New York Stock Exchange member f i r m s i n c r e a s e d
f o r t h e second c o n s e c u t i v e month 3 r i s i n g by $103 m i l l i o n , w h i l e c u s t o m e r ' s
f r e e c r e d i t b a l a n c e s d e c l i n e d Wj. m i l l i o n f u r t h e r t o t h e i r l o w e s t l e v e l
s i n c e l a t e I96O-,
End of month
Apr,
| Mar,
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 balance
Bank l o a n s t o " o t h e r s "
Net d e b i t b a l a n c e s secured by U. 3, Govt, s e c u r i t i e s
Bank l o a n s t o " o t h e r 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
Broker and d e a l e r c r e d i t
Money borrowed except on U. &. Government s e c u r i t i e s
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 f n e t f r e e c r e d i t b a l a n c e s

Change

5,49%
' 1,079
1,1*12
36

2,167
4,083
1,374
34

+34
-4
+38
+2

117

105

+12

3,01$
2,6#
57
1,110

2,912
2,566
52
1,154

+103
+92
+5
-44

Stock p r i c e s . Common s t c :k p r i c e s i n c r e a s e d moderately from
t h e i r low l a s t week in f a i r l y a c t i v e t r a d i n g
P r i c e s , a s measured by
Standard and P o o r ' s composite index of $00 s t o c k s , i n c r e a s e d by 2 p e r c e n t ,
c l o s i n g a t 63=82 on Kay 18.. Trading volume averaged 3 = 9 m i l l i o n s h a r e s
a day, 0„2 m i l l i o n s h a r e s more t h a n i n t h e p r e v i o u s week,
I 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 i n f l o w of s a v i n g s d u r i n g
March 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 i n s u r a n c e
companies, savings and loan 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 — t o t a l e d
#1.8 b i l l i o n , o n e - t e n t h l a r g e r t h a n l a s t year* (For s e a s o n a l l y a d j u s t e d
d a t a , s e e C a p i t a l Market Developments^for A p r i l 30,) S u b s t a n t i a l l y l a r g e r
i n c r e a s e s t h i s March than a y e a r e a r l i e r i n savings 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 and d e p o s i t s a t mutual s a v i n g s banks were more t h a n
s u f f i c i e n t t o o f f s e t a s m a l l e r r i s e i n a s s e t s of l i f e i n s u r a n c e companies.
(Time and savings d e p o s i t s a t commercial banks i n c r e a s e d $1„9 b i l l i o n i n
March, about t w i c e t h e r i s e a y e a r e a r l i e r , )




-3For the f i r s t q u a r t e r as a whole, savings inflow amounted to
$1|.2 b i l l i o n , s l i g h t l y l e s s than t h e record f i r s t q u a r t e r of 1961, The
smaller inflow t h i s year was due e n t i r e l y to a smaller growth i n a s s e t s
of l i f e insurance companies; t h i s l a t t e r probably r e f l e c t e d in l a r g e
p a r t t h e e f f e c t of the d e c l i n e in common stock p r i c e s t h i s year on t h e
value of insurance company stock holdings in c o n t r a s t to t h e a p p r e c i a t i o n
of a year e a r l i e r . 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 and
d e p o s i t s a t mutual savings banks increased more than l a s t y e a r , with
d e p o s i t s a t mutual savings banks showing t h e l a r g e s t i n c r e a s e . (Time
and savings d e p o s i t s a t commercial banks increased $6.0 b i l l i o n during
the q u a r t e r , considerably more than twice the r i s e l a s t y e a r . )
Assets of l i f e insurance companies increased $1.5 b i l l i o n
during t h e f i r s t q u a r t e r of the y e a r , 13 per c e n t l e s s than l a s t y e a r .
One-third of the i n c r e a s e i n a s s e t s t h i s year was in short-term i n v e s t ments, in c o n t r a s t t o only a small i n c r e a s e l a s t y e a 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 $0.7 b i l l i o n , o n e - t h i r d more than l a s t
y e a 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 were one-fourth l e s s than
l a s t y e a r , however, as t h e s e companies acquired over $0,3 b i l l i o n of
commercial and f i n a n c e company paper t h i s y e a r a s compared with only a
n e g l i g i b l e amount l a s t y e a r . Net a c q u i s i t i o n s of U„ 5, 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 $0,2
b i l l i o n , 70 per cent more than l a s t y e a r . Mortgage a c q u i s i t i o n s were
ana11, t o t a l i n g $0.L b i l l i o n , o n e - f o u r t h l e s s than l a s t year and the
smallest q u a r t e r l y volume s i n c e the second q u a r t e r of 1959« S u b s t a n t i a l
a c q u i s i t i o n s of S t a t e and l o c a l government bonds amounting to $0„2
b i l l i o n r e f l e c t p r i m a r i l y purchases of Massachusettes Turnpike A u t h o r i t y _
bonds i n March.
The n e t inflow of new savings c a p i t a l a t savings and l o a n
a s s o c i a t i o n s during the f i r s t quarter amounted t o $2,0 b i l l i o n , 6 p e r cent
more than l a s t y e a r , as a very l a r g e Warch inflow more than o f f s e t a
y e a r - o v e r - y e a r d e c l i n e i n January. (Contributing to t h e l a t t e r was t h e
i n c r e a s e i n i n t e r e s t r a t e s paid on time d e p o s i t s a t many commercial banks
and t o the former, a r i 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 . ) Net a c q u i s i t i o n s of mortgage loans declined about
seasonally from the l a r g e f o u r t h q u a r t e r 1961 t o t a l , b u t , a t $1,9 b i l l i o n ,
continued t o be s u b s t a n t i a l l y l a r g e r than a y e a r e a r l i e r . Cash holdings
declined as usual during t h e f i r s t q u a r t e r , but the reduction of $13U
million t h i s year was more than t h r e e times l a r g e r than l a s t y e a r .
Acquisition of U. S. Government s e c u r i t i e s , amounting t o $0=3 b i l l i o n ,
were o n e - f i f t h l e s s than l a s t y e a r .
Repayments of borrowings ( p r i m a r i l y
from the Federal home Loan Banks) were seasonally l a r g e and, a t $0,6
b i l l i o n , about the same as l a s t y e a r .
Deposits a t mutual savings banks increased by $0,7 b i l l i o n during
the January-March p e r i o d , one-tenth more t h a n l a s t y e a r . Mortgage
a c q u i s i t i o n s of $0,7 b i l l i o n were i n record volume and t h r e e - t e n t h s
l a r g e r t h a n during the f i r s t q u a r t e r of l a s t y e a r . Cash holdings i n c r e a s e d
by almost $0.1 b i l l i o n , in c o n t r a s t t o a small reduction l a s t y e a r , while
holdings of U. Se Government s e c u r i t i e s ( p a r t i c u l a r l y Treasury b i l l s )
increased $0.1* b i l l i o n , one-sixth more than l a s t y e a r .




More d e t a i l e d infoimation concerning recent c a p i t a l market
developments i s presented in t h e a t t a c h e d e x h i b i t s .

Capital Markets S e c t i o n ,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System,




-5-

Sources and Uses of Funds of Major Types of Savings I n s t i t u t i o n s 1 /
F i r s t Q u a r t e r 1953-1962
( I n m i l l i o n s of d o l l a r s )

Year

Sources of f u n d s
Uses of funds
Total
Net change
State &
u. s. Busis o u r c e s i n d e p o s i t s Borrowl o c a l Other
Other
MortGovt.
or
ing
or savings
Cash s e c u r govt. a s s e t s uses
gages
capital
sec.
ities ities
L i f e Insurance Companies

1962
1961
I960
1959
1958
1957
1956
1955
1951*
1953

-113
-15U
-il*8
-123
-171

153
91
-50
27
58
-77
-500
70
-106
-132

396
553
771*
1*01
1*55
688
957
799
1*91*
1*80

690
518
1*33
61*8
631
571
673
513
563
763

156
•8
U*9
86
21
155
131
168
52

311
590
276
3ll*
318 •
336
235
222
1*79
252

1,519
1,752
1,315
1,390
1,1*25
1,333

I1,261
S

Savings and Loan A s s o c i a t i o n s
1962
19611/
19601/
1959
1958
1957
1956
1955
195k
1953
1962
1961
1960
1959
1958
1957
1956
1955
1951*
1953

267

136

-53
-33
-76
-79
-1*2
22
-1*5

309
391
238
1*51*
26
3U7
21*0
179
5
139
380
323
12
220
20
59
21
1*1*
-30
91*

——

1*3
31*
31
-1*1
332
205
50
26
173
135

1,938
1,1*87
1,262
1,1*140
775
838
907
1,180
736
655

'

671
505
1*25
508
39l*
355
587
550
1*05
299

n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Mutual
-1*3
-6
-12
55
33
7
1*3
51
1*2
75

- 1 6 2,097
87 1,932
56 1,256
11*1 1,710
27 1 , 0 9 5 ,
122 1,070
73 1,118
28 1,329
906
30
782
20
Savings Banks
-1*1* 1 , 0 7 6
909
72
1*75
72
721
12
872
51*
60l*
51*
652
30
671
1*2
657
1*5
602
1*5

¥ / Revised.
n.a.--Not available.
1 / F o r d e s c r i p t i o n of data s e e E x h i b i t s M, N and 0 .
2 / I n c l u d e s F e d e r a l Home Loan Bank advances o n l y .




1,973
1,81*9
1,503
1,378
1,317
997

1,106

1,11*7
1,01*7
877

-566
-571
-699
-21*2
-592
- 2 99
-326
-39
-ll*/

690
618
370
372
338
221
191*
159

720
657
302
51*8

356
252
173
173

566
51*0
506

lltO
105
117
96

s

g

L O N G - T E R M B O N D YIELDS, H I G H - G R A D E

We.kly

v U.S. GOVERNMENT
\

Exhibit A - Part I I

Date

Corporate
Aaa 1 /

U. S. Govt,
long-term 2 /
(per cent)

1957 - High
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - High
Low
Apr. 20
Apr. 27
May it
May 1 1
/ M a y 18 2 /
Note:

4.14
3.55
4.6l
4.21
it. 46
4.1,3
4.28

(9/27)
(5/2)
(1/29/60)
(3/17/61
(9/15)
(2/16)
(5/18)

4.33
4.31
4.30
4.29
4.28/

3.76
3.07
4.42
3.70
4.07
4.12
3.65
3.88
3.90
3.87
3.85
3.87

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




(10/18)
(4/25)
(2/8/60)
(5/12/61)
(12/29)
(2/23)
(5/11)

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

3.45 (8/29)
2.64(5/1)
3.65(9/24/59)
2.99 (9/3/60)
3.37 (7/6)
3.26 ( 1 / 4 )
2.5,2 ( 5 / 3 )

.60
.22
.59
.19
.57
.47
.30

.50
.34
.92
.46
.76
1.04
.80

2.97
2.93
2.92
2.93
2.94

.45
.41
.43
.44
.41

.91
.97
.95
.92
.93

L O N G - T E R M B O N D YIELDS, L O W E R - G R A D E

P OB ATE loo

m
W

!,t

1

/X.V

/

1

V

H ,

W - \ / -

I I BTT
EH
v' \ J J If*It AH0 10CAI GO VEBHM

V

-

Exhibit B - Part I I
Corporate
Baa 1 /

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

S p r e a d between
Aaa and Baa
S t a t e and
Corporate
local govt.

(per cent)
1957 - High
1958 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - 6 I Low
1 9 6 1 - High
1962 - H i g h
Low

5.10
U.5L
5.36
It.98
5.13
5.11
k.99

A p r . 20
A p r . 27
May U
May 1 1
May 18

5.01
5.01
5.02

5.oo
h.99

(11/29)
(7/11)
(2/12/60)
(9/9/60)
(10/27)
(1/5)
(5/18)

-

JU.51
3.6k
"U.i»6
3.93
it.16
U.Oii
3.52
3.55
3.52
3.52
3.52
3.52

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

1.27
.77
.81*
.66

.81
.72
.63

.68
.70
.72
.71
.71

1.21
.93

1.08
.57

:8

.56
.58
.59
.60
.59
.58

57 Preliminary.
1/ Weekly average of daily f i g u r e s . Average term of bonds included in 23-26 years.
/ 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 more.
Digitized 2for
FRASER
3 / Thursday f i g u r e s . Only general obligation bonds are included; average term i s 20 years.
http://fraser.stlouisfed.org/
Ifote.—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
s e r i e s . For spreads, high refers to widest, and low to narrowest.

Federal Reserve Bank of St. Louis

1
E X H I B I T C, P a r i I
SHORT-

AND

INTERMEDIATE-

TERM INTEREST

RATES, G O V E R N M E N T

MONTH IIUS
$ YlAI ISSUES

DISCOUNT IA TI

I I I I I I I [ II I I I I I I 1J.-LL.1J.1JJ IJ I 1.1 LL I.I J.I. J J .L L L L U J „Ll_ij-.LJ-L.I._Ll.l_LI
TfST
1959
1940
Exhibit C - Part I I
Date

1957 - H i g h
1958 - Low
1959-60 - H
1 9 6 0 - 6 1 Low
1961 - High
1962 - H i g h
Low
A p r , 20
A p r . 27
May h
my 11
v May 1 $ 2 /

Discount
rate

v

3.50
1.75
U.00
3.00

3.00
3.00
3.00

3.00
3.00

3.00
3.00

3.00

3-month
b i l l s 2/
3.6k
.58
it.59
2.11
2.66

(10/18)
(5/29)
(1/8/60)
(10/28/60)
(12/29)

2.67

( 5/18)

2.81 (2/16)
2.72
2.73
2.7b
2.67
2.67/

"p
2/

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 13-5 y r . i s s u e s

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

3-5 year
issues 2/

—
3.02
5.07
2.35
2.90

k . O k (10/18)
2.11* (6/6)
5 . 0 0 (12/24/59)
3 . 1 5 ( 5/12/61)
3.86(8/11)

(12/26)
(V8/60)
(4/28/61)
(12/29)

3.02 (1/12) 3.88 (2/2)
2.77 ( 5/18)
2.82
2.83
2.83
2.77
2.77

3.U3
3.U8

if

3.48

3.55

(V*)

.26
.79
.12
.kh
.2k
.09
.10
.10
.09
.10
.10

.86
.01*
1.81
.38
1.51
1.19
.71
.76
.79
.77
.81
.88

Weekly r a t e shown i s t h a t i n e f f e c t a t end of period a t the Federal Reserve Bank of New York.
Market yield* weekly averages computed from daily closing bid p r i c e s . 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 f o r d i f f e r e n t s e r i e s .
Tor spreads, high r e f e r s to widest, and low t o narrowest.




EXHIBIT D, Port I
SHOUT- A N D I N T E R M E D I A T E - T E R M INTEREST RATES,
BANKS A N D OTHER PRIVATE B O R R O W E R S

ANY PAPiB
f
1

1

-A

• i
1959

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

1

I960
E x h i b i t D - P a r t IX

Prime
rate 1/

F i n a n c e company
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. papc

A

(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
A p r . 20
A p r . 27
May h
May 1 1
May 18 2 /

it. 50
3.50
5.50
It. 50
it.5o
lt.5o
L.50

It. 50
3.50
5.oo
lu5o
k.5o
it. 5o
U.50

L50
U.5o
L #
k.50
L.50

it. 50
it. 50
b.50
L.50
it. 50

3 . 8 8 (11/15)
1 . 1 3 (8/8)
5 . 1 3 (1/22/60)
2 . 5 0 (8/5/61)
3 . 0 0 (12/29)
3.13(4/13)
2.96 (5/18)

3 . 5 0 (11/8)
.13(5/29)
it.00 ( 5/13/60)
.it3 (1/27/61)
2 . 8 8 (12/29)
2.95 (3/23)
1.30 (1/26)

3.08
3.06
3.00
3.00
2.96

2.85
2.85
2.65
2.60
2.55

.63
-.35

1.02
.11
.56
.1*1

.19
.36
.33
.26
• 33
.29

y W e e k l y r a t e shown i s t h a t in e f f e c1t a t end of period. Stock Exchange c a l l loan rate i s going rate
on c a l l loans secured by customers stock exchange c o l l a t e r a l a t New York City banks. Prime rate
i s t h a t charged by large banks on short-term loans to business borrowers of the highest c r e d i.tt
standing.
iaturltie|i
2 / Average of d a i l y r a t e s published by finance companies f o r d i r e c t l y placed paper f o r varying roaturltiei
in the 90-179 day range.
&
3 / Weekly average of daily e f f e c t i v e r a t e , which i s the rate f o r the heaviest volume of purchase ;and
s a l e transactions as reported to the Federal Reserve Bank of New -York,
Note.—Highs and lows are f o r individual s e r i e s 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 a e r i e s .
For spreads, high r e f e r s to widest, and low to narrowest.




-

!

STOCK

MARKET

Exhibit E - Part I I

Date

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

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

72.0k
53.32
70.9k
62.65

March
April
May 4
May 1 1
May 18 g /

70.29
68.05

(12/8/61)
(10/23/60)
(3A6)
(5/11)

66.24

62.65
63.82

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

2.82
3.62
2.93
3.31

5.8
2.2
3.9
3.0

2.95
3.05
3.15
3.31
3.25

%
3.9
3.7
3.9

Stock m a r k e t c u s t o m e r c r e d i t
Bank
Customers'
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 cl o l l a r s )

Total

5 , 6 0 2 (12/61)4,259 (12/61)
4 , 1 4 2 (5/60) 3 , 0 0 4 (7/60)
5,491(4) 4,111(1)
5,426 (2) 4,066 (2)

1,377
1,121
1,418
1,348

ids

1,374
1,412

n.a.
n.a.
n.a.

4,083
4,079
n.a.
n.a.
n.a.

(8/30/61)
(5/25/60)
(5/9)
(1/24)

1,416
1,418
n.a.

n.a.—Not a v a i l a b l e .
jg/ Preliminary.
1/ Standard and Poor's oompoaite index of 500 common stocks, weekly closing p r i c e s , 1941-43=10.
Monthly data are averages of d a i l y figures r a t h e r than of Friday's only. Highs and lows are f o r
Friday's data only,
2 j Standard and Poor's composite stock 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
3/
V

Averages of daily trading volume on the New York Stock Exchange.
End of month f i g u r e s f o r member firms ct the New York Stook Exchange which carry margin accounts 1
excludes balances secured by U. S. Government o b l i g a t i o n s .
5/ Wednesday f i g u r e s f o r weekly reporting member banks. Excludes loans f o r purchasing o r carrying
U . S . Government s e c u r i t i e s . P r i o r t o July 1, 1959, suoh loans are excluded only a t banks i n
New York and Chicago. Weekly reporting banks account f o r about 70 per oent of loans t o others.
u r t h e r d e t a i l see B u l l e t i n .
DigitizedFor
forf FRASER



X H I B I T F, P a r i

PRIVATE

HOUSING

STARTS

v

Exhibit C - Part I I
Discount
rate
1/

3-month
b i l l s 2/

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

3-5 year
issues 2/

S p r e a d between y i e l d s on 3 month b i l l s and y i e l d s on
6-KIQ, b i l l s | 3 - 5 y r .

1957 - H i g h
1958 - Low
1959-60 - H
1 9 6 0 - 6 1 Low
1961 - High
1962 - H i g h
Low

3.50
1.75
LOO
3.00
3.00
3.00
3.00

3.6lt (10/18)
. 58 ( 5/29 )
k . 5 9 (1/8/60 )
2 . 1 1 (10/28/60 )
2 . 6 6 (12/29 )
2.81 (2/16)
2.67 ( 5 / 1 8 )

—
3 . 0 2 (12/26)
5 . 0 7 (1/8/60 )
2 . 3 5 (4/28/61)
2 . 9 0 (12/29 )
3.02 (1/12)
2.77 (5/18)

^ o l t (10/18)
2.1k (6/6)
5.00(12/24/59)
3 . 1 5 (5/12/61)
3.86(8/11) •
3.88 (2/2)
3 . 4 3 (k/6)

A p r . 20
A p r . 27
May 1|
May 1 1
May 1 8 g /

3.00
3.00
3.00
3.00
3.00

2.72
2.73
2.7 k
2.67
2.67

2.82
2.83
2.83
2.77
2.77

3.W
3.52
3.51
3.48
3.55

—
.26
.79
.12
.lilt
.21*
.09

.86
.Oil
1.8l
.38
1.51
1.19
.71

.10
.10
.09
.10
.10

.76
.79
.77
.81
.88

Weekly rate shown i s t h a t in e f f e c t a t end of period a t the Federal Reserve Bank of New York.
2 / Market yield? weekly averages computed from daily closing bid p r i c e s . Series of 3-5 year issues
c o n s i s t s of selected'notes and bonds.
Note.—Highs and lows are f o r individual s e r i e s 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 s e r i e s .
Digitized
for For
FRASER
spreads, high r e f e r s to widest, and low t o narrowest.



f

13
tohlbit

0

ii.jj,

Yields on New Corporate bond Issues Adjusted t o an Aaa basis
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

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

Number
of i s s u e s
included

Amount
Average
ox issues
yield
Included
(per
(millions
cent)
of dollars)

December 15
h
h
2

7
9
3
h

6
7

Weekly a v e r a g e s :
19 61 - July 7
lit
21
28
August h
11
18

273.0

115.0

78.8

I96I - h i g h
Low

200.0
- 229.0
115.0
130.0
39U.5
.21*0.0
299.0

10

21
December 1
8

li.21 (11/3)

January 5

iebi-uary 2

8.0
200.0

li.60

65.0

U.I46

55.0
20.0
1*0.0

March

Ai.73^
li.60 A p r i l 6

25

September 1
8
15
22
29.
October 6
13
20
27
November 3

L 6 8 (6/16)

19.5
300.0
50.0
25.0

30.0
65.0

60,0
85.0
98.0
26.0
100.0

18.0
60.8
k5.0
60.0
95.0
15.0

June 1

9h.O
60.0
30.0
75.0

N 0 te: 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 publicly sold bonds rated Aaa, Aa
and A by Moody's Investors Service (except s e r i a l , equipment t r u s t and convertible i s s u e s ,
o f f e r i n g s of natural gas p i p e l i n e and foreign companies, and i s s u e s guaranteed by the
Federal Government) weighted by s i z e of i s s u e s . Yields on Aa- ana A-rated bonds are
f i r s t adjusted to an Aaa b a s i s , using the comparable spreads i n y i e l d s on seasoned bonds
(Moody's averages). Averages r e f l e c t changes in i n d u s t r i a l composition, type, maturity,
and c a l l provisions of new o f f e r i n g s . Weekly averages considered unusually unreliable
as indicators of i n t e r e s t r a t e s on new i s s u e s because of the small number or 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 included e t c , are marked with an a s t e r i s k . Sources weekly
data, Federal Re serve; monthly data, F i r s t National City 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
(In m i l l i o n s of d o l l a r s )

January
February
March
April
May

.

592
859
807

'

July
August
September

quarter
quarter
quarter
quarter

i 2,258

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

New c a p i t a l
I960

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

580
667
562

570
715
860

e/850
e7l000
e/625

2,118
1,259
1,318

761
577
1,044

e/850
1/750

713
689
764

700
611
560

641
1,034

991

736
967
726

485
604
733

492
606
681

1,090
948
1,000

890
#6
852

677
788
£/584

1,809
4,695
2.437
3,038

2,145
2,382
2,428
2,698

1,028
762
61*7

October
November
December
1st
2nd
3rd
4th

Corporate 1 /
1 1961
1

6,504
8,941
11,979

•

III

1962

e/2,475

. 348
- 501
491

•

2,166
2,397
1,823
E/2,0lt9

1,880
2,256
1,700
1,340

1>,563
6,386£/8,1i3S

4,136
5,916
7,257

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

quarter
quarter
quarter
quarter

g/2,1#

Year

1

IS '
2,337
2,807

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

11,253

8,246

.

'

g7Estimated.
1 / 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 proceeds.
2 / Investment Bankers A s s o c i a t i o n of America estimates of p r i n c i p a l anounto.
y
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.




.

tr
Exhibit I

H.ll*

New Corporate S e c u r i t y Issues, 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 n<5W
c a p i t a l and refunding 1 /
new c a p i t a l 1 / 2/
Bonds
Common
and
Public Communi- Other
Total P u b l i c l y P r i v a t e l y p f d .
Mfg. u t i l i t y c a t i o n s i s s u e r s
offered offered
stock
.

I960 - I
II
HI
IV

2,2#
2,537
2,520
2,832

93U
1,071*
1,336
1,1*62

795
770
75U
955

1961 - I
II
III

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

662
2,303
772
967

880
1,275
1,139
1,1*21*

2,378

1,155

716

507

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

601
695
696
2,231
1,31*2
1,779
1,075
813
678
1,155
987
1,091*

178
273
211

291*
255
331
3U8
355
572
392
1*11
336
509
31*8
567

129
167
151*
1,170
.
320
283
259
177
2L8
310
225
310

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

6U7
88U
81*7
1,300

17

1962 - I

298
511
562
625

598
808
652
696

189
11*9
317
381

1,059
913
896
997

515
10*9
1,771* 1,1*66
651*
595
81*5
836

381
1,081
595
836

81
1,095
101*
11*7

832
1,052
803
1,263

655

1*30

1*56

717

I69
99
21*8
571*
1*1*7
1*1*6
1*28
255
252
271
215
306

137
160
8I1
251*
1*39
389
369
215
111
306
362
168

21
ill
19
991*
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
1*1*0

89
11*8
193
380

73
362
21
80

225
218
275
300

536
692
1*29
£l6

III
IV

%

666
921*
1*21*
225
123
336
1*11*
217
273
>97
386
650

232
232
253
325

11*3
155
209
325

Gross proceeds exceed n e t proceeds
by the cost of f l o t a t i o n .
2 / For t e t a l see Exhibit 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 other t r a n s p o r t a 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 other..
Source. — S e c u r i t i e s and Exchange Commission.




H.lU
Other S e c u r i t y O f f e r i n g s
( I n m i l l i o n s of d o l l a r s )
Gross l o n g - t e r m 1 /
Foreign government 2 /
I
F e d e r a l agency 3 /
1962
| 1961
| I960
1962
I 1961
I
6
29
20
2
66
29
5
2

Hi2
10
35
e / 10

k3
3k

e/196

2
175
70
3k
72
ko
25
1
36
3k
2
la

236

533

57

281

2I4.6
156
e/l*60

I960
182
150
150
1U8
35U

252
100
1U9
278
250
193

e/862

199

225

160
2h9
181

ljM8

1,672

352

630

S t a t e and Local government 5 /

-term k/~
F e d e r a l agency 3 /

18
ii66
-2I18
R/ko

2li7
-156
226
£A3li6

160
195
-8
=103
-1*2
-155
109
518
-86
=6
5U
=116

2/276
g/
1/

ia5
-175
-16
50
-189

is

-lhk
-162
-17k
-79
-87
207
22
193
108
98
56
-lilt

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

520

18

=76

-633

2W*

188

-559

-73U

58
lliO
-80
70
=114.6
-157

2 / -29

Preliminary.
e / Estimated by F e d e r a l Reserve.
These d a t a d i f f e r from t h o s e i n E x h i b i t H i n 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-teim 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 maturing
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 United S t a t e s by f o r e i g n governments and t h e i r
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 . Source: S e c u r i t i e s and Exchange Commission,
•3/
I s s u e s not g u a r a n t e e d by t h e U„ S. Government. Sources l o n g - t e r m . S e c u r i t i e s and
Exchange Commissionj s h o r t - t e r m . Treasury Department and F e d e r a l Reserve.
k / 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 above 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 , whether from t h e proceeds of r e f u n d i n g i s s u e s o r from
o t h e r f u n d s , 1 Data i n c l u d e only 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
/
P
r i n cFRASER
i p a l l y t a x and bond a n t i c i p a t i o n n o t e s s w a r r a n t s or c e r t i f i c a t e s and P u b l i c
Digitized for
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 PHA n o t e s included may have a somehttp://fraser.stlouisfed.org/
what l o n g e r than one year„ Sources Bond Buyer and F e d e r a l Reserve.

Federal Reserve Bank of St. Louis

n
H.Ik

Exhibit K
Large Long-term 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
(Other than U. S . Treasury) 1 /
Proceeds of Large 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 )

Total

Month
1961 - A p r i l
May
June
July
1
August
September
'
October
November
December
JL962 - J a n u a r y
j
February
S
March.,.
i
April;

£.

Coipc>rate
Bonds
Convertible
( o t h e r than
bonds
convertibles)
560
480
435
285
165
78
205
320
125
170
425
330
430

1,572
557
532
475
185
168
354
391
255
195
425
366
61*8

__

15
75
33
67
26
'

-

Stocks
. 1,010
62
97
115
20
58
81
45
130
25

—

21
167

15
51

State
iand
local
government

Other
2/
__

383
256
616
179
281
435
326
480
307
561
662
259
423

25
151
100
73
4o
250
145
64
30
55

Large I n d i v i d u a l I s s u e s O f f e r e d May 1 through 18

Issuer

Type J /

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

Rating

CORPORATE
^ P a c i f i c Power & L i g h t Co.
Southern C a l i f . Edison Co.
Wisconsin Telephone Co.
Milwaukee Gas L i g h t Co.
Columbus & Southern Ohio
E l e c t r i c Co.
F l o r i d a Power Corp.

Com.stk.
18.3
l s t & r e f . mtg.bds.U0.0
Deb.
20.0
1 s t mtg. b d s . 1 5 . 0

1987
2002
1987

4-1/4
lt-3/8
lt-5/8

4.25
4.27
4.50

1 s t mtg. bds. 1 6 . 0
1 s t mtg. bds. 25.0

1992
1992

lt-3/8

4.30
4.20

A
Aa

> Aa
Aaa
Baa

STATE AND LOCAL GOVERNMENT
P o r t of New York Auth.
S t a t e of Hawaii
Wash. Sub. S a n i t a t i o n D i s t . ,
Md.
C i n c i n n a t i , Ohio
Georgia S t a t e Sch. Bldg.
Auth.
A u s t i n , Texas
P o r t of New Orleans Board
of Comm., La.

Rev.-Ut.
G.O.
G.O.
G.O.
Rev.-Rent.
Rev.—Ut.
G.O.




35.0
10.0

. 1993
1965-82

3.36
2.71

3.33
1.90-2.90

A
A

15.0
10.0

1964-89
1963-87

3.02
2.77

1.85-3.3oV
1.50-3.00

A
Aaa

26.5
14.0

1963-83
1963-87

3.09
3.04

1.60-3.40
I.60-3.20

A
Aa

25.0

1972-97

3.34

2.70-3.50^/

A

K-2

Large I n d i v i d u a l i s s u e s O f f e r e d May 1 through 18 ( C o n t ' d )

Issuer

Type]/

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

Rating

STATE AND LOCAL GOVERNMENT
(Cont'd)
S a l t Lake C i t y s Utah
Go0o
M e t r o p o l i t a n S e a t t l e s Wash. t Rev.-Ut.
Sacramento Mun. U t i l i t y
D i s t . » Cal.
Rev.-Ut,

lio5
16.0

1965-80
2,69
1961-2000 3-63

1.90-2.80
2.00-3.70

Aaa
A

10=0

1966-82

2.96

2.10-3.15

Aa

Bonds
Bonds

20.0
25o0

1977
1997

5-1/4

Bonds
Bonds

25.0
17=5

1982
1977

OTHER
Kingdom of -Uenmark
Govt, of New Zealand
European Coal and S t e e l
Community
Japan Development Bank

_L

5-1A

5-lA
6

5.W

5-50

5.33

6.ia

Rights o f f e r i n g .
I n c l u d e s c o i 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 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 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 by F e d e r a l a g e n c i e s ,
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.o. denotes g e n e r a l
o b l i g a t i o n s ; Rev,=Ut„ 3 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 ; Rev. - Q . U t . , revenue bonds secured only b> revenue f r o m
qua s i - u t i l i t i e s ; R e v . - S . T . , revenue bonds secured 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 . s revenue bonds s e c u r e d s o l e l y by l e a s e payments,
1/10 p e r c e n t bonds maturing 1990-93 r e o f f e r e d t o y i e l d L W p e r c e n t .
2 / 1=1/2 p e r c e n t bonds maturing 1996-97 r e o f f e r e d t o y i e l d lt.00 p e r c e n t .
1/

¥




A
Baa

—

Exhibit L

H.ll*

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 I s s u e s
During month f o l l o w i n g
date shown
Coiporate S t a t e and
Other 2/
l o c a l govt.

Date of
computation
1961 - Apr. 28
May 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

51*2
1*87
521
170

s3h6

lit

1*80
222
628
185

8
&

Subsequent t o
date shown
Corporate S t a t e and
Other 2/
l o c a l govt.
687
611
666
255

15
75

II

399
251
597
295
223
1*65

61*

to
333

95

2l*0

50l*
&
591

%

II

579
771
291

8
693
1*98
ia5
567
239

81

15
75
73
35

61*

95

Forthcoming Large O f f e r i n g s , a s of May 18
Issuet

Type

Amount
(mill ions
of d o l l a r s )

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

CORPORATE
Gulf S t a t e U t i l i t i e s Co.
Utah Power & Light Co.
Alabama Power Co.
Mountain S t a t e T e l . & Tel. Co.
Virginia E l e c t r i c & Power Co.
United Gas Corp.
Columbia Gas System, Inc.
Northern S t a t e s Power Co.
New England E l e c t r i c System

1 s t ratg. bds.
17.0
1 s t mtg. bds. &pf d. sticjl*. 0
1 s t mtg. bds.
17.0
Deb.
50.0
Com.stk.
1*0.0
1 s t nfcg.&coll.tr. bds.1*0.0
Deb.
25.0
1 s t mtg. bds,
15.0
Com.stk.
20.9

Air Reductipn Co., Inc.

Conv. sub.deb.

Consolidated Edison Co.
Cincinnati Gas & ELec. Co.
* P h i l l i p s , N. V.

1 s t ratg. bds.
1 s t mtg. bds.
Com. s t k .

^Copenhagen Telephone Co.
Commerce Oil Refining Corp.

S.F. deb.
Deb., bds. & com.




31*.5
100.0
25.0
77.0
15.0
1*5.0

May 22
May 23
June 1
June 6
June 6
June 7
June 8
June 13
June lh.
(rights expire)
June 20
( r i g h t s expire)
June 20
June 22
June
( r i g h t s expire)
June
Indefinite

Holii

L-2
Forthcoming Large O f f e r i n g s , as of May 18
Issuer

Type

Amount
(millions
of d o l l a r s

1
Approximate d a t e
of o f f e r i n g

STATE AND LOCAL GOVERNMENT
S t a t e of I l l i n o i s
Wayne Co., Mich.
S t a t e of M i s s i s s i p p i
S t a t e of New York
S a l t River P r o j e c t , Agri. Imp, &
Pwr. D i s t . , Arizona
-x-Maricopa Co., Arizona
*De Kalb Co., Georgia
-sState of C a l i f o r n i a
^Houston Ind. Sch. D i s t . , Tex.
G e o r g i a S t a t e Highway Auth.
P i t t s b u r g h , Penna.
J e f f e r s o n County, Colorado
Tarrant County, Texas
Dade County, Florida
J a c k s o n v i l l e Expressway Auth., F l a .

G.O.
GoOo
G.O.
G.O.

95.0
18.3
19.5
57.3

G.O.
G.O.
G.O.
G.O.
G.O.
Rev.—So T.
G.O.
G.O.
G.O.
G.O.
Rev.-Ut.

10.0
11.2
1U.0
100.0
12.5
15.0
35.0
19.2
13.5
1*6.0
liO.O

May
May
May
May

21
22
23
23

May 2k
June 5
June 12
June 111
June 26
June 27
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

OTHER

*—Included i n t a b l e f o r f i r s t t i m e .
1 / Includes corporate and o t h e r i s s u e s of «£L5 m i l l i o n and over; 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 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 : Only $5.1 m i l l i o n of the
Tucson, Arizona $20*1* m i l l i o n Rev.-Ut. i s s u e was sold f o r new moneye




H.lii

Exhibit M
Sources and Uses of Funds byLife Insurance Companies

Cash
Value of a s s e t s a t
end of period:
1958 - Dec.
1 9 # - Dec.
1960 - Dec.
1961 - Dec.
1962 - Mar .

Uses of funds i/""
S t a t e and
Duall o c a l govt. Mortgages
securi t i e s 2/ i t i e s
ities
(In millions of d o l l a r s )

Other

u. s .
Govt.

6,10U
1,202 6,257

18,896

5l,52li
52,2Ui

3,622
3,922
1i,078

37,092
39,237
ill, 798
Wi,2lil
lili, 637

lb,61i0
16,126
17,625
19,109
19,720

33
99

-132
-168

195
219

18
2li

235
30li

1I16
313

-71
-53
-30
39
-12
33
12
h
-5i
90
-35
99

153
-36
-167
-85
-62
-102
73
-IiO
-6
-62
23
-103

20li
125
loll
1311
231
125
167
168
IiO
311
198
188

-2lt
25
35

336
196

-I16
207
115
95
128
211
206
175
122

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

7,182
6,858

lik, 612
46,901

- Nov.
Dec.
- Jan.
Feb.
Mar.
Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.
2/I96I - Jan.
Feb!
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
- Jan.
Feb.
Mar.

.

6,

-51i 101
-3
-9
-50
-7
-hi
9
63
75
-39 -182
iiO
71
-18
1U -50
13
31
-li3
li3
15 -256
-108
-5
-7li

210
21".
-78

2,691

3,221

21

26
13
lOii
li3
82
33
26
17

225
203
192
63
226
&
208
277

' 11

202
202
186

2li2
128
H18
135
170
270
2li5
211
213
288
206
372

-13
25
36
29
17
36
18

210
135
208
202
170
222
107
I6I1
165
199
235
126

32li
173
193

36
2
118

137
116
11*3

li9
31
3k
5

tnan gross, uses.
2/ Includes s e c u r i t i e s of domestic corporations only.
Source. — I n s t i t u t e of L i f e Insurance.




2k2

102
173

Si

131
Ul2
128
138
105
165
308
123
X

75

H'.llv

Exhibit N
Sources and Uses of Funds by
Savings and Loan A s s o c i a t i o n s

Cash
Value of
a t end of
1958 1959 1960 1961 1962 -

assets
period
Dec.
Dec.
Dec.
Dec.
Mar.

Uses of f u n d s 17"
U. 5.
Mort- Other
Govt,
s e c u r - gages 2 / a s s e t s
ities
( I n m i l l i o n s of

Total
sources
or uses

Sources of f u n d s
Net
Borrowchange
Other
savings ing 3 /
capital

dollars)

2,585
2,183
2,680
3,298
3,16k

3,819
k,k!7
1,595
5,222
5,531

1*5,627
53,Ha
60,070
68,833

3,108
3,729
1,131
l*,7l*3

1*7,976
51*,583
62,11*2
70,851
7 2 , 822*

1,1*1*1*
2,387
2,197
2,863
2,381*

5,719

1,727

55,139
63,530
71,2*76
82,096
8k,193

1 9 5 9 - - Nov.

61
371

-28
-25

2*62*
2*67

137
-62*

63I*
71*9

2*82*
1,205

56
222

9k
-678

i 9 6 0 — Jan.
Feb.
Mar.
Apr.
May

-315
-3k
k9

199
65
-26

-112
62*
102* 108
210
-50
-12*8
-6
50
-1
233
-50

93
1*95
668
6U6
91*1*
889
232
723
736
813
777
930

2*67
2*06
630
370
622
1,220
157

-2*51
-123
-125
39
2*
210

77
212
163
237
318
-51*1
199
215
83
161
173

Changes:
Dec.

July
Aug.

Sept.
Oct.
Dec,
D/1961 - Jan,
' Feb.
Mar.
-Ipr.

May
June
July
Aug.
Sept.
Oct.
Nov,
Dec.
0/1962 - Jan.
Feb. r/
Mar.

::

70,771

6,560

7,137
8,382
8.985

81
320
-233
30
25
102
83
1*15

18
-12*3
-32
-23
5
110
-51*
-1

321
2*00
52*1
562*
635
762
62*5
722
656
602
515
566

-95
59
3
23
150
131
-227

369
2*28
690
695
809
997
737
910
802
810
752
762*

-106
71
122
113
221*
-62+
-150
76
83
103
198
-58

261
71*9
922
813
1,180
1,096
352
966
927
1,039
1,116
1,199

591
553
705
2*17
800
1,362
111
2*96
662
726
775
1,511

-1*65

82*
1*1*8

93
191
107
-18
-3
32
-8
66
-5
2*5
82
1*5

1*18

135
276
22*3
308
339
-52*0
22*2
338
135
239
260
-730

-365
98
133

186
95
28

535
600
803

-115
1*0
59

21*1
833
1,023

1*91
578
901*

-383
-96
-87

133
351
206

-26

-86 .

k7
81


shares as currently reported.
http://fraser.stlouisfed.org/
borrowing.
Source.—FSLIC.
Federal Reserve Bank of St. Louis

3/

1*86

60U
666
552
1,379

-122*
22

2*9
-11*

52
271
-80
-26

88
1*1

271*
-1

132
X

7U

81

-720

ess ssr11-

Advances from home Loan iianks and o t h e r

Exhibit 0

h. I h

Sources and Uses oi Funds
by Mutual Savings Banks
Uses of f u n d s 1 /
Busi- State &
Total
ness
local
Mortsources
s e c u r - govt.
gages Other o r u s e s
ities
ities
ities
2/
(In m i l l i o n s of d o l l a r s )

Cash

U. S.
Govt.

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. r/
1962 - Mar.

921
829
872
828
897

7,266
6,861
6,239
6,136
6,516

1,973
MU9
5,080
5,053
5,096

725
722
672
677
63k

Changes:
1959 - Nov.
Dec.

20
111

-85
-12

-28
23

-8
-2k

-131
37.
1*1
-86
1*2
108
-69
-6
22
-8
9
81*

-9
-11
32
-11*8
-80
-93
-1*8
30
-32
-156
-68
-1*2

-12
-9
52
-19
13
57
38
-8
32
-1*
3k
57

-1
-2
1
23
-2
1
1
-5
-5
-1

i960 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct;
Nov,
Dec,
1961 - Jan.
Feb.
Mar,
Apr.
May
June
July
Aug.
Sept .
Oct.
Nov.
Dec. r j

-1*9
21
9
-51
30
. 30
-26
-ll*
U6
-27
7
-20

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

3
-15
k6
-11
27
3k
2
-23 -19
-56
-20
• 5

1962 - Jan. r /
Feb. .
Mar.

10
1*7
12

9k
77
209

17
1
25

\J

Sources of f u n d s
Net.
change i n
deposits

Other

23,039
855
910
21,768
26,709 .1,001
28,915 1,22k
29,586 1,180

37,779
38,91*2
1*0,573
1*2,833
1*3,909

31*,01*1
3k,983
36,353
38,1*87
39,207

3,738
3;959
1*.220
1*,3U6
1*,702

12k
132

1*2
-12

65
218

-27
31*0

92
-122

-6
-9
3
13
-23
-It
-k
-5
1
-6
-5
-5

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

-12
1*3
kl
-21
63
-59
)i2
6
lit
-25
13
-Ik

-11
167
319
-132
176
178
118
223
233
-31
151*
237

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

57
. 117
-1
-37
118
-1*3
97
118
-1*5
-87
115
-11*8

-5

161
ll*0
201*
176
187
217
201
207
156
178
167
212

233
272
1*01*
-151*
262
228
161*
232
220
-71*
181
292

170
136
351
-51*
111* ,
3673/
23
99
310
-15
1*8
1*71

63
136
53
-100
11*8
-139]/
11*1
133
-90
-59
133
-179

250
307
519

83
165
1*72

-7
-18
-18

253
188
230

17
26
29
-51
30
-23
-28
55
1*9
-1*1*
1*6
117
-118
12
62

166
11*2
1*7

Uses of f u n d s 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 gross, uses.
I n c l u d e s 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
R e c o n s t r u c t i o n and Development, nonguaranteed f e d e r a l agency and o t h e r bonds a s
w e l l a s c o r p o r a t e bonds and s t o c k ,
3 / Conforming t o *DIC r e d e f i n i t i o n , $115 m i l l i o n 1 o t h e r l i a b i l . r e c l a s s i f i e d a s d e p o s i t s .

Source.--NAMSB
and FDIC.
2/



P l e a s e s u b s t i t u t e t h e f o l l o w i n g t a b l e f o r P a r t I I of E x h i b i t F of C a p i t a l
M a r k e t D e v e l o p m e n t s i n t h e U n i t e d S t a t e s f o r May 2 1 , 1 9 6 2 .

Exhibit F - Part I I

Date

1961 - Apr.
May
June
• July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - J a n .
Feb.
Mar.
Apr. 2 /

Total
Seasonally a d j u s t Unadjusted
FHA
ed a n n u a l r a t e
( T h o u s a n d s of u n i t s )

1,166
1,291
1,381
1,31*3
1,326
1,383
1,U3U
1,351
1,297
1,273

111
127
132
125
127
122
12U
103
82
81
76
r/116
11*7

20
2k
22
21
26
21
23
23
17
18
15
21
26

Unadjusted

J

VA

6
8
8
7
8
7
9
7
6
k
5
6
8

Conventional

85
95
103
97
93
91*
91
72
59
58
r/56
5/89
111*

V T o t a l s t a r t s are Census e s t i m a t e s , which are not s t r i c t l y comparable with old nonfarm s e r i e s
developed by BLS. A dwelling u n i t i s s t a r t e d when excavation begins; a l l u n i t s i n an apartment
s t r u c t u r e are considered s t a r t e d a t t h a t time. FHA and VA s t a r t s are u n i t s s t a r t e d under commitments
by t h e s e agencies to insure o r guarantee the mortgages* As reported by FHA and VA, a u n i t i s s t a r t e d
when a f i e l d o f f i c e receives the f i r s t oonplianoe inspection r e p o r t , which is made before footings
are poured i n some oases but normally a f t e r the foundations have been completed# Capehart m i l i t a r y
housing u n i t s are excluded. Conventional s t a r t s are derived as a r e s i d u a l , although t o t a l and FHA
and VA s t a r t s are not s t r i c t l y comparable i n concept or timings they include both u n i t s financed
by conventional mortgages and u n i t s without mortgages.