The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
~~ctSl
HJ
\0
.~I~f>¥
\/.~? 3
TRE'ASURY DEPJ\.R:'fl\1ENT LIBRARY
LIBRARY
ROOM 5030
MAY Ub 1996
TREASURY DEPARTMENT
UBRARY
ROOM 5030
MAY Uti 1996
TREASURY DEPARTMENT
Treas.
HJ
10
.A13P4
v.353
u.s.
Department of the Treasury
PRESS RELEASES
DEPARTMENT
OF
THE
TREASURY
omCE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASfllNGTON~ D.C. - ·20220. (202) 622-2960
ADV 12:45 P.M. EDT
Remarks as Prepared for Delivery
Sept. 18, 1995
REMARKS OF TREASURY SECRETARY ROBERT E. RUBIN
TREASURY DEPARTMENT HISPANIC HERITAGE WEEK LUNCHEON
It's a pleasure to join you today to kick off Hispanic Heritage week here at
Treasury. We have an array of activities planned, including briefings on business and
finance issues and a presentation on Hispanics in the arts.
I enjoy the opportunity to address luncheons such as these, because I can touch
on topics that are of great interest and concern to me and to you.
The Treasury Department is staffed with some of the most talented people in
government. I knew about the Department's reputation when I was on Wall Street, and
I learned more when I chaired the National Economic Council for the President. Since
coming here and learning about all the aspects of Treasury, from taxes and economic
policy to law enforcement, I'm even more impressed by the people who work in this
building.
We have a great number of very talented Hispanic Americans on the career and
appointed staff here and I want to recognize a few. Two of the most senior officials in
the Treasury Department are of Hispanic origin and have been here since the outset of
the administration. They're giving me the same kind of superb assistance they gave
Lloyd Bentsen. They are Ed Knight, our general counsel, and George Munoz, the
assistant secretary for management and our chief financial officer.
We also have in our top appointed ranks Alex Rodriguez, Fe Morales Marks, Vic
Rojas, Clara Apodaca and Ida Hernandez here at Treasury, and Jose Padilla at Customs,
and Belen Robles at Customs, who is the president of LULAC. I also want to recognize
one of my secretaries, Annabella Mejia.
RR-566
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
2
There are a goodly number of Hispanics in the top ranks at Treasury.
Throughout Treasury there are more than 11,500 Hispanic men and women in our ranks.
We recently completed an EEOC study that showed that in a number of areas our
minority employment record is better than the government-wide average or the average
for the rest of the labor force. I am committed to seeing that there are no race or
gender or other discriminatory impediments to opportunity at the Treasu"ry Department.
This is a large organization. Nothing happens overnight, and no one is perfect. When
problems are found, they will be dealt with.
This Treasury Department has reached out, actively and aggressively to minority
business communities. We have gone to great lengths to make it as easy as possible to
do business with the Treasury Department, taken contracting opportunities out on the
road with fairs. We do this for two reasons. One, it is good for Treasury. It gives us
access to more vendors who are able to compete to do business with us. Second, it is
obviously good for the minority business community, which far too often does not have
established networks of business opportunities with larger organizations like the Treasury
Department.
Just as business benefits from our interest and encouragement, the nation benefits
when all Americans are considered in choosing those who will be our leaders, in the
executive branch, the legislative branch and the judiciary. President Clinton chose two
very able Hispanics for the Cabinet, Henry Cisneros at HUD and Federico Pena at
Transportation, and this administration's record on Hispanic judicial appointments is
unequaled.
As I said at the outset, these luncheons allow me to talk about a broad range of
issues, and I also like to philosophize about our society on occasion.
As many of you know, I grew up in Miami, and later in New York. I've had an
exposure to the diversity that's America throughout my life. We are, I believe, the first
nation in history that has become truly racially diverse and done so peacefully.
There is an unusual degree of acceptance and offering of encouragement and
opportunity in this country which I believe is unique to the United States. That's not to
say this nation is race-blind. It isn't and probably never will be, but I believe we do far
better than others in living with differences -- perhaps because of our history of being a
nation of immigrants.
The presence of so many cultural groups in our society provides us with linkages
to disparate cultures. We're not a monolithic culture by any means. We are bound to
the rest of the world by our heritage. Those bonds strengthen our social, economic,
political and security relationships around the globe.
3
The strength of this nation, I believe, is that we have reaped the rewards of
diversity, or at least made it work far better than anyone else has. Perhaps the greatest
challenge we face as a society is continuing to make that work. Diversity presents us
with so many opportunities, and we can be a better and stronger nation if we manage
diversity well.
I mentioned Miami. I'm going back there this week to speak at an awards
banquet. There's a strong Hispanic presence in the area -- one third of everyone in the
entire Miami area is Hispanic. In the city of Miami proper, two and one-half times as
many people speak Spanish at home as speak English. When I grew up there Miami had
a relatively small Hispanic population. I believe Miami is a far richer city today for its
diversity, and much better positioned as the gateway to Latin and South America
because of its diversity.
By the way, on the point about languages, this administration does not believe we
should mandate the use of English. We must encourage its use, but don't believe it
should be written in stone as the official language.
Having said that, I want to spend the time I have left with you today talking about
a few of the issues we are all concerned about. I know you're interested in a number of
issues that we deal with at Treasury -- financial services modernization, free trade, tax
matters, law enforcement, but today I want to touch upon an issue that can have some
alarming consequences if not addressed, and that is the widening income gap.
In the '50s, 60s and 70s, all income groups in this country saw their income rise in
a roughly proportional manner. But for nearly the last 20 years now, that has not been
the case. The lowest 60 percent have seen their incomes falling, and the growth has all
occurred at the upper end of the income scale. The median earnings of year-round, fulltime male workers fell more than 10 percent in real terms from 1973 to 1993.
This trend toward income inequality is a central problem in our society today and
it holds real dangers. It could become an enormous threat to our social fabric on the
one hand, and simultaneously undermine support for the right kinds of policies -- free
trade and the like -- that are absolutely critical to our growth and success in the coming
years and decades.
Many of the issues we are dealing with today with respect to the budget debate
are issues that relate to the question of reversing income disparity and making certain
that all Americans benefit from our economic growth. Before I take up the budget
question, I want to briefly cover another issue very central to our ability to reverse the
income disparity trend, and that is access to capital through programs such as the
Community Reinvestment Act and the Community Development Financial Institutions
Act.
4
This administration has made a very concerted effort to improve access to capital.
We've encouraged and supported the rewriting of the rules for the CRA to make it clear
to the banking community that we want to see results, not piles of paperwork. Some in
Congress want to limit the CRA -- they say to solve problems -- but those issues have
already been addressed in the revised regulations. The President and I feel very strongly
that the new rules, which are consensus rules throughout the lending community, should
be allowed a chance to work.
The CDFI Act had strong bipartisan support in the last Congress. I've been out
and seen some of the excellent work community development financial institutions are
doing around the country. But we're having trouble with the appropriation for 1996.
This is a very important public-private partnership in which public dollars are heavily
leveraged in the private sector. The CDFI transition team is working hard to produce
regulations and expects to have them out this fall. It would be a tragedy if a program
that can produce important benefits in both rural and urban America is put in jeopardy.
Getting adequate appropriations for the CDFI Fund is a top priority for both the
President and me. Other voices must be heard as well.
I have one other area of concern on the capital access issue, and that's the North
American Development Bank which was set up to deal with the problems of safe
drinking water and waste disposal on the border. The bank expects to make its first
infrastructure loans this fall. We were able to make a contribution of $56.5 million for
this fiscal year, but a similar appropriation for 1996 has been zeroed-out in the Senate
Appropriations Committee. The Clinton Administration is strongly opposed to that. We
are firmly committed to NADBank and are working as hard as we can to restore funding
for the bank. Every voice needs to be heard on this because the work NADBank will do
is critical to the lives of people on both sides of the border.
Now, let's get back to the budget. Both sides agree that the budget should be
brought to balance. The debate is over how to accomplish that aim. The President has
said repeatedly that his aim is to prepare our economy for the 21st century. To do that
while balancing the budget you must make the kind of investments necessary to have a
well-educated, well-trained work force which is able to compete and succeed globally.
Education is central to that aim. The President's budget would invest $40 billion
in education and training and related areas over the next seven years, and offer
education incentives such as a tax deduction for families with education and job-training
expenses. The congressional majority'S budget would reduce education and training
spending by $36 billion because that budget is being driven by an arbitrary time line to
reach balance. That's the wrong way to go about balancing the budget. The right way is
to weigh the relative economic impact of various cuts, viewing them over the long term,
make sound policy decisions that bring you to balance.
Education is central to the President's economic program, and I believe it should
5
be central on the agendas of groups whose ability to take advantage of the opportunities
this nation offers is directly related to access to education.
One other point about the budget, and that's about the Earned Income Tax
Credit. This is one of the most bipartisan programs ever to come out of Washington.
Ronald Reagan called it the best pro-family, anti-poverty program ever devised in
Washington. It encourages Americans to work rather than rely on welfare. If the
congressional majority has its way, taxes on lower income Americans who are eligible for
the EITC will be raised by as much as $66 billion over the next seven years. It is
absolutely wrong to tax these people back into poverty and simultaneously provide a tax
increase for the most wealthy in our society -- a tax cut I might add of dubious economic
utility.
These are some of the key issues of the budget debate. The proper resolution of
these issues is absolutely critical to how well this nation will be equipped to compete and
succeed in the global economy. As important as these issues are to the economy as a
whole, they are also important to the issue of whether we can stem the trend toward
income inequality, and offer the opportunity to succeed to greater and greater numbers
of Americans who have not yet been fully able to be part of our American dream.
This administration is committed to balancing the budget and continuing to make
the investments that are essential for this nation's continued success and leadership.
Thank you for coming. I know some of you came from long distances to show
your support of Hispanic Heritage. We are here to serve. I hope you sense the
commitment President Clinton and I have to this and all groups of Americans.
-30-
DEPARTMENT OF THE TREASURY
WASHINGTON. D.C.
September 18, 1995
SECRETARY OF THE TREASURY
The Honorable John R. Kasich
Chairman
Committee on the Budget
United States House of Representatives
Washington, D.C. 20515
Dear John:
On July 17, I wrote to urge the Congressional leadership to take
timely action to increase the permanent statutory limit on the
public debt. Our current projections indicate that the debt
subject to limit will first reach the $4.9 trillion debt ceiling
at the end of October.
It is of critical importance to the
protection of the national interest that the Congress now move
promptly to raise the permanent statutory ceiling.
We see an increasing amount of discussion in the financial
marketplace about the disruption that will inevitably occur if a
debt limit crisis is precipitated by Congress' failure to take
timely and responsible action.
I am confident that we all share
the conviction that a default on the debt of the United States is
unthinkable.
I am deeply concerned, however, that holding a debt
limit increase hostage to a resolution of differences on the
budget could cause profound damage to our country by creating
uncertainty as to whether the United States will meet its
financial obligations.
Let there be no mistake about it:
even the appearance of a risk
that the united States of America would not meet its obligations
because of the failure of Congress to provide the necessary debt
authority in a timely fashion would be likely to impose
significant additional costs on American taxpayers, and could do
permanent damage to our credit standing. The debt obligations of
the united states are recognized throughout the world as the
paradigm of an investment free of credit risk. That credit
standing is a precious asset of the American people.
Furthermore, some suggestions have been made that the Government
can operate on a cash-flow basis without an increase in the debt
limit. This is simply not realistic. The Government's
expenditures do not match its receipts on a day-to-day basis.
Expenditures will far exceed net receipts beginning in october
and throughout November.
On the first of November, veterans',
military, and civil service retirement benefits, medicare
payments, and military active duty pay totaling nearly $9
billion, are due to be paid. On November 3, $16.5 billion of
2
social security benefits are scheduled to be paid by electronic
funds transfer.
Benefit checks totaling another $8.5 billion are
expected to be cashed over the next few days.
On November 15,
Treasury has an interest payment due to the public of $25
billion.
In addition, the debt limit must increase, even when
there is a budget surplus, to accommodate full investment by the
Federal trust funds and net Federal direct lending program
activity.
I urge the leadership to move promptly to pass a permanent debt
limit increase, separate and apart from the debate on the budget.
As the Congressional Budget Office observed in The Economic and
Budget Outlook: An Update, released in August:
"Limiting the Treasury's borrowing
authority is not a productive method of
achieving deficit reduction.
Significant deficit reduction can best
be accomplished by legislative decisions
that reduce outlays or increase
revenues.
Failing to raise the debt
limit in a timely manner, though perhaps
bringing a difficult vote on legislation
to a head, only serves to make the
Treasury's job of paying the
government's bills more difficult.
An
extended delay could have a significant
effect on the government's credibility
and the interest rates that it must pay
on fu ture borrowing . "
CBO also stated:
"The rise in mandatory spending and growth of
the trust fund surplus has turned the
statutory limit on federal debt into an
anachronism. Through its regular budget
process, the Congress already has ample
opportunity to vote on overall revenues,
outlays, and deficits."
Accordingly, any effort to use the debt limit increase as a means
of achieving political leverage in the budget debate must be
viewed as contrary to the public interest. Timely action on the
debt ceiling would provide comfort to financial markets both here
and abroad that the integrity of the obligations of the United
States will not be compromised, nor will even a risk of such
compromise be countenanced.
Sincerely,
4os.s€,~~
Robert E. Rubin
omCE OF PUBliC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960
FOR IMMEDIATE RELEASE
September 18, 1995
CONTACT: Calvin Mitchell
(202) 622-2920
SENATE BUDGET PLAN HITS WORKING FAMILIES WITH TAX HIKE
A plan introduced by members of the Republican Leadership in the U.S. Senate would
increase taxes by an average of $655 on more than 18 million taxpayers, according to a
review of the proposal released today by the U.S. Treasury. The Senate begins work this
week on the plan offered by Senator Roth (R-DE) and Senator Nickles lR-OK).
The RothlNickles plan would slash the Earned Income Tax Credit (EITC) by roughly
$66 billion during the next seven years.
"At a time when wages of lower-income working Americans have not kept pace, it
makes no sense to raise their taxes," Treasury Secretary Robert E. Rubin said. "The EITC is
the best incentive-to-work program this country has. Those working families earning less
than $28,500 should not have to pay the tab for balancing the budget."
The Treasury Department released today a state-by-state study analyzing the impact of
the RothlNickles proposal on working families making less than $28,500 a year. The
legislation would have a serious impact on families working hard to stay off welfare. The
Clinton Administration opposes the tax increase.
The EITC was started 20 years ago during the Ford Administration, and it was
expanded during the administrations of Reagan, Bush and Clinton. President Reagan called
the EITC, "The best anti-poverty, the best pro-family, the best job creation measure to come
out of Congress."
- 30 -
RR-567
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
UNITED STATES
Provided only to those who work, the Earned Income Tax Credit (EITC) is a valuable
tool in encouraging work over welfare. Nationally, the EIIC helps 2 I, 100,000 low-income
workers and their families (or 17.5 percent of American taxpayers) in their struggle to stay even
in our society [n the past, the EITC has received bipartisan acclaim Begun in 1975, the EITC
was expanded by Presidents Reagan. Bush. and Clinton. The Clinton .-\dministratron expanded
and simplified the credit in 1993 and has made great strides in reducln~ error rates and
preventing fraud.
Interestingly, despite the success of the EITC. proposals currenri', being considered
would slash the credit. thereby increasing taxes on millions of working-\mencans. Particularly,
the proposal offered by Senators Roth (R-DE) and 0.'ickles IR-OK) \\'ouij have a disastrous
effect on the EITC and its roughlv 20 mtilion recipients and their fam!: ,c:) The Roth-Nickles
proposal would cut the EITC by about 566 billion m the next seven \~Jrs 'iIashmg the program
nearly in half.
The Treasury Department has estimated the impact of nearly
Nickles proposal on EITC recipients.
SII
:-'ercent of the Roth-
The Roth-Nickles proposal will increase taxes in the year 2002 for
18,393,000 American taxpayers, On average, each affected recipient will
see a tax increase of more than $655 in the year 2002.
Families with two or more children will be the most affected, Nationally,
7,58 LOOO such families will see an average tax increase in 2002 estimated
at $959 per recipient.
Throughout the United States, 4,334,000 workers without qualifying
children will be eliminated from the program under the Roth-Nickles
proposal. These are very-low income working Americans with incomes of
roughly $11,000 per year.
Tax Increases on
Working Families
An Analysis of the Roth-Nickles Proposals
to Cut the Earned Income Tax Credit
: 11111111111::::: :
I
111111111 .. I I I I I
I
. : ::::: 11111111111 :
•••••
I
I I I I I
I~ 111111111
Office of Economic Policy
Department of the Treasury
September 18, 1995
I
Increasing Taxes On Working Families
The Roth-Nickles Plan To Cut the Earned Income Tax Credit
Summary
This analysis shows that the major components of a plan put forth by Senators Roth and Nickles
to cut the Earned Income Tax Credit (EITC) will increase taxes by an average of $655 in the
year 2002 (measured at 1996 income levels) on 18.4 million working taxpayers and their families,
or 89 percent of the total EITC population. Additionally, this study finds that the Roth-Nickles
proposal will raise taxes on families with two or more children by an average $959.
Senators Roth (R-DE) and Nickles (R-OK) have introduced legislation (S 899) to slash the ~ITC
by about $66 billion in the next seven years, cutting the program nearly in half These cuts would
have a serious impact on the millions of working families who receive the credit. The analysis
contained in this document estimates both the number of people affected by the major
components of their proposal in each state and the average tax increase affected recipients would
experience by 2002.
The Roth-Nickles plan achieves its savings through a number of changes to the EITe such as:
rescinding part of the planned credit expansions enacted in 1993, removing automatic inflation
adjustment of the credit (deindexing), and eliminating the credit for workers who do not reside
with children.
The analysis here estimates the impacts of just these three components (which represent
approximately 80 percent) of the Roth-Nickles cuts in the year 2002, the final year of the
Republican budget estimates. Had it included the additional components of their plan -- i.e.
expanding the definition of adjusted gross income for purposes of determining eligibility for the
EITC to include social security benefits, child support payments, etc. -- then the tax increase on
working families would obviously have been even higher. According to the Treasury estimates,
the average tax increase would rise from $655 to $724 as a consequence of these additional
provisions. These further cuts in their proposal were not included because the data do not lend
themselves to distribution by state.
For example, in Florida alone, over 1.1 million EITe recipients would see a tax increase totaling
almost $744 million in the year 2002. That would mean, on average, a tax increase of $674 for
each of these Florida families in 2002. The roughly 455,000 affected Florida families with two or
more children will see their taxes increased by an even larger amount -- $988 in 2002.
EITC recipients in all states would see a sizeable tax increase if the Roth-Nickles plan were
implemented. According to this study, the smallest state-wide per recipient tax increase under the
Roth-Nickles proposal would occur in Alaska, where most of the State's EITe recipients would
see a sizeable $529 increase in 2002.
Tax Increase on Working Families in 2002
An Analysis of the Roth-Nickles EITe Proposals to Reduce and Deindex the EITe *
(1996 $)
T~:r:ers
state
Alabama
Alaska
Arizona
Ar1<ansas
california
Colorado
Connect .cut
Delaware
Distnct d Columbl2
466.3SJ
23.438
324.390
246.180
2,612,388
210,781
102.005
$332.889
512,389
5216.440
$165.622
$1.766.583
$133,375
45,303
$29.401
S40.668
$743,545
S452.278
$27.494
$49.571
S479.227
$215.136
Kentucky
61.317
1 102,837
660,7J3
47.586
77.252
746,268
338,905
140,269
139.951
277,665
LOUISiana
4<l2.~2
FIOOda
Georgia
HawaII
IdahO
lIIillOls
Indiana
Iowa
Kansas
Maine
Maryland
Massachusetts
Michigan
Minnesota
MississIPPI
Missoun
Montana
Nebraska
Nevada
New HampsfHre
New Jersey
New MexICO
New York
North carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South carolina
South Dakota
Tennessee
Texas
Utah
Tax Increase
(Thousands 1
69,7 49
301.149
215.420
475.862
191.404
377.876
353.187
56,934
92.541
100.291
<48,.20
4.47.800
161,616
1,083,237
&49.666
33.875
602.041
256.321
184.094
590.510
47,940
374.998
46,601
457.863
1,653,666
102,511
Amount per
T~:r:e(
$714
S529
$667
$673
$676
S633
$577
S649
$58.692
$663
$674
S685
$578
S642
S642
S635
$85,536
$610
S86.092
$615
S636
$176.537
$330691
$42,010
$193.282
S128,347
$285,277
5115.274
$271.001
5224.514
$35.205
$57.730
$63.322
~
S602
$542
$596
$599
S602
$717
$636
$618
$624
$631
$610
S642
$649
$29.558
$267.569
5105.066
$666.735
$439.475
$20.677
$370.022
5165.907
$116.679
$356.833
$29.876
$259.515
S634
$676
$616
$615
S642
S634
$608
$623
S692
$29,530
$631
$301.613
$1,257.445
$659
$65.435
$636
$678
Vermont
30.388
Virginia
406.4&4
269.4.42
121,687
228,195
29.299
$17,971
$269,442
$1&4.687
$76,294
$140,222
518.141
$612
$627
$614
$619
18.393.000
$12.040.919
$655
Wastllngton
West Virginia
Wisconsin
Wyoming
U.S. Total
$591
$660
"Thil analysis com."... approximately 80 perunt aI the total Roth-NckleS cuts. II
(1)
~
EfTC creel. r.IItn; (2) eliminate !he EITC
tor _
... who dO not,-.oM _
oncI~S
Cl\~ren:
proposals ID:
and (3) deindex!he EITC.
omce III Economic: Policy. DePII.-.t aI!he Tre:uury.$epe.mbef 11. 1996
The pn;IIIOeIIl .. ........, II 19geInCIomI _ . a-.nmg the ,..IU," aI 2002 law.
SIaIa alloc:aUDn8 .,. IMoHd on tabulellOM 110m
NumIIefW may nat add due ID rounding.
~
1lI1nc:omI. Tax Yea, 1993.
Tax Increase on Working Families in 2002
An Analysis of the Roth-Nickles EITC Proposals to Reduce and Delndex the EITC *
(1996 $)
State
Total Tax Increase
Amount per
Total Amount
Taxpayer
Taxpayers (Thousands)
Two-Child Families
Total Amount
Amount per
Taxpayers (Thousands)
Taxpayer
Eliminating Credit tor Childless Wor1<ers
Total Amount
Amount per
Ta)(payers (Thousands)
Taxpayer
Alabama
466,350
$332,889
$714
192,214
$201,047
$1,046
109,888
$20,759
$169
Alaska
Arizona
23,438
324,390
$12,369
$216,440
$529
$667
9,661
133,703
$7,482
$130,719
$775
$978
5,523
$140
76,437
$773
$13,497
Arkansas
California
246,180
$165,622
$1,766,583
$673
$676
101,467
1,076,742
$100,027
$1,066,922
$986
$991
58,008
615,565
$10,328
$110,163
$178
$133,375
$58,892
$633
$577
86,877
42,043
$80,551
$35,568
$927
$846
49,667
24,036
$8,317
$3,672
$167
$153
Colorado
Connecticut
2,612,388
210,781
102,005
45,303
$177
$179
$29,401
$649
18,673
$17,756
$951
$172
$40,668
$743,545
$663
$674
$452,278
$27,494
155,691
$28,204
77,252
746,268
$49,571
$479,227
11,213
18,203
$1,715
Idaho
Illinois
$685
$578
$642
$972
$988
$1,003
$176
660,733
47,586
$24,561
$449,062
$273,152
$16,605
$2,536
$46,367
Georgia
Hawaii
25,273
454,554
272,333
10,675
14,448
259,865
$1,e33
61,317
1,102,837
Indiana
338,906
Iowa
Delaware
District of Columbia
Florida
19,614
31,841
$178
$181
$153
$29,938
$847
$940
$3,091
$170
$642
307,588
$269,427
$941
175,846
$29,864
$170
$215,136
$635
139,686
$129,931
$930
79,858
$13,416
$168
140,269
$85,536
$610
57,814
$51,659
$894
33,052
$5,334
$161
Kansas
139,951
$86,092
$615
57,683
$51,995
$901
32,977
$5,369
$163
Kentucky
2n,665
$636
$686
$106,619
$199,720
$1,005
65,427
113,585
$11,009
$20,622
$168
482,042
114,445
198,682
$932
Louisiana
$176,537
$330,691
69,749
$42,010
$602
28,748
$25,372
$S83
16,435
$2,620
$159
Maryland
Massachusetts
301,149
215,420
$193,282
$126,347
$642
$596
$116,732
$77,515
$940
$873
475,862
$285,277
$12,053
$8,004
$17,790
Minnesota
191,404
$115,274
$599
$602
70,961
50,760
112,129
$170
$158
Michigan
124,124
88,789
196,135
45,101
$7,186
Mississippi
377,876
$271,001
$717
78,891
155,748
Missouri
Montana
353,187
56,934
$224,514
$35,205
$636
$618
145,572
23,466
Nebraska
92,541
$57,730
$624
$63,322
$631
Maine
Nevada
100,291
$172,292
$69,619
$163,670
38,142
$135,594
$21,262
$34,866
41,337
$38,243
$878
$882
$1,051
$182
$159
$159
89,040
$16,899
$190
$14,001
$2,195
$168
$164
$914
83,223
13,415
21,806
$3,600
$165
$925
23,632
$3,949
$167
$931
$906
Tax Increase on Working Families in 2002
An Analysis of the Roth-Nickles EITC Proposals to Reduce and Oeindex the EITC *
(1996 $)
State
Two-Child Families
Total Amount
Amount per
Taxpayers (Thousands)
Taxpayer
Total Tax Increase
Amount per
Total Amount
Taxpayer
Taxpayers (Thousands)
Eliminating Credit for Childless Workers
Total Amount
Amount per
Taxpayers (Thousands)
Taxpayer
Wyoming
33,875
602,041
258,321
184.094
590,510
47,940
374,998
46.801
457.863
1,853,886
102,511
30,388
408,464
269,442
121,687
228,195
29,299
$29,558
$287,569
$105,068
$686,735
$439,475
$20,877
$370,022
$165,907
$116,679
$358,833
$29.878
$259.515
$29.530
$301.613
$1.257,445
$65,435
$17,971
$269,442
$164,887
$76,294
$140,222
$18,141
$610
$642
$649
$634
$676
$616
$615
$642
$634
$608
$623
$692
$631
$659
$678
$638
$591
$660
$612
$627
$614
$619
19,957
184,606
66,696
446,475
267,772
13,962
248,142
106,472
75.878
243,389
19,759
154,562
19,290
188,716
764.112
42,252
12,525
168,356
111,055
50,156
94.055
12.076
$17,851
$173,676
$63,455
$414,751
$265,419
$12,609
$223,473
$100,199
$70.468
$216,716
$18,045
$156,734
$17.835
$182.158
$759,430
$39.519
$10.854
$162.729
$99.583
$46.078
$84.687
$10.956
$894
$941
$951
$929
$991
$903
$901
$941
$929
$890
$913
$1.014
$925
$965
$994
$935
$867
$967
$897
$919
$900
$907
11,409
105,538
38,130
255,246
153,083
7,982
141.861
60.869
43,379
139.144
11,296
88,362
11.028
107.888
436.837
24.155
7,160
96.248
53.489
28.674
53.770
6.904
$1,843
$17,933
$6,552
$42,824
$27,405
$1,302
$23,074
$10,346
$7.276
$22.377
$1,863
$16,183
$1.841
$18.808
$78.414
$4.080
$1,121
$16,802
$10,282
$4,758
$8,744
$1,131
$162
$170
$172
$168
$179
$163
$163
$170
$168
$161
$165
$183
$167
$174
$180
$169
$157
$175
$162
$166
$163
$164
U.S. Total
18.393.000
S12,040.919
$655
7,581.000
$7,272.074
$959
4.334.000
$750,866
$173
New Hampshire
New Jersey
New Mexico
NewYor1<
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
48,420
447,890
161,818
1,083,237
649,666
"This analysis comprlses approximalely 80 percent of Ihe lolal ROlh-Nickles culs. II Includes proposals 10: (1) reduce EITe credil rales; (2) eliminate the EITG for workers who do not
reside with children; and (3) delndex Ihe file. This analysis does nol renect Roth-Nickles proposals 10 expand and lower the Investmenl income cap and expand AGltesl or compliance
proposals.
Office of Economic Policy, Department of lhe Treasury, September
11, 1995
The proposal Is estimated al 1996 Income levels, assuming Ihe fealures of 2002 taw.
State allocations are baaed on tabulation. from Stalistics or Income, Tax Year
Numbera may not add due 10 rounding.
1993.
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239
,.
('
-
'-
UiJi. 0 0 I
.)E? L J ,~.,'
FOR IMMEDIATE RELEASE
September 18, 1995
'/'
;
~
!
I,
- ~ __ I
CONTACT: Office of Financing
202-219-3350
- 'T'
J',
._
I.
'"
,j
RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Tenders for $11,411 million of 26-week bills to be issued
September 21, 1995 and to mature March 21, 1996 were
accepted today (CUSIP: 912794X74).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.21%
5.22%
5.22%
Investment
Rate
5.44%
5.45%
5.45%
Price
97.366
97.361
97.361
Tenders at the high discount rate were allotted 49%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$44,321,861
Accepted
$11,410,581
$37,717,482
1,309,379
$39,026,861
$4,806,202
1,309,379
$6,115,581
3,000,000
3,000,000
2,295,000
$44,321,861
2,295,000
$11,410,581
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
RR-568
UBLIC DEBT NEWS
~
"n'} )
0 ('
1-'
Si.f~~t'r:l6t~ic~ of Financing
FOR IMMEDIATE RELEASE
September 18, 1995
202-219-3350
_,
,-, -, :
~
Jo.
-
I!
'{
RESULTS OF TREASURY'S AUCTiON ~·Ol.r"-i31':'wEEK BILLS
Tenders for $11,436 million of 13-week bills to be issued
September 21, 1995 and to mature December 21, 1995 were
accepted today (CUSIP: 912794W26).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.23%
5.25%
5.25%
Investment
Rate
5.39%
5.41%
5.41%
Price
98.678
98.673
98.673
Tenders at the high discount rate were allotted 20%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$53,322,891
Accepted
$11,436,447
$48,079,379
1,409,202
$49,488,581
$6,192,935
1,409,202
$7,602,137
3,229,310
3,229,310
605,000
$53,322,891
605,000
$11,436,447
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
5.24 -- 98.675
RR-569
.,
~
....
'.
PUBLIC DEBX
,
v
Department of the Treasury • Bureau of {he: Public Debt •
,DC 20239
'.
,
"
FOR IMMEDIATE RELEASE
September 18, 1995
Contact:' Peter Hollenbach
(202) 219-3302
BUREAU OF THE PUBLIC DEBT AIDS SAVINGS BONDS OWNERS
AFFECTED BY HURlUCANE IN TIlE U.S. VIRGIN ISLANDS AND PUERTO RICO
The Bureau of Public Debt took action to assist victims of Hurricane Marilyn that struck the
U.S. Virgin Islands and Puerto Rico by expediting the replacement or payment of United States
Savings Bonds for owners in the affected areas. The emergency procedures are effective
immediately for paying agents and owners in those areas of the U.S. Virgin Islands and Puerto
Rico hit by the hurricane. These procedures will remain in effect through October 31, 1995.
Public Debt's action waives the normal six-month minimum holding period for Series EE savings
bonds presented to authorized paying agents for redemption by residents of the affected area.
Most fmandal institutions serve as paying agents for savings bonds.
The islands of St. Croix, St. John and St. Thomas in the U.S, Virgin Islands and Eastern Puerto
Rico, are included in the initial declaIation. Should additional islands be declared disaster areas
the emergency procedures for savings bonds owners will go into. effect for those areas.
The replacement ef bonds lost er destroyed will also be expedited by Public Debt. Bond owners
should complete fonn PD-I048, available at most fmandal institutions or the Federal Reserve
Bank. Bond owners should include as much infonnation as possible about the lost bonds cn the
form. This infonnation should include how the bonds were inscribed, social security number,
approximate dates of issue, bond denominatiens and serial numbers if available. The completed
form muSt be certified by a notary public or an officer of a fmancial institution. Completed
forms should be forwarded to Public Debt's Savings Bond Operations Office located at 200
Third St., Parkersburg, West Virginia 26106-1328. Bond owners should write the words
"Hunicane Marilyn on the front of their envelopes to help expedite the processing of claims.
II
000
PA-194
(RR-570)
OFFICE OF PUBllC AFFAIRS -1500 PENNSYLVANJAAVENUE, N.W.• WASHINGTON,aD.C .• 20220. (202) 622-2960
FOR RELEASE AT 2:30 P.M.
September 19, 1995
CONTACT:
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $22,800 million, to be issued September
28, 1995. This offering will result in a paydown for the
Treasury of about $3,200 million, as the maturing weekly bills
are outstanding in the amount of $26,001 million.
Federal Reserve Banks hold $6,208 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $3,347 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356) for the sale and issue by the
Treasury to the public of marketable Treasury bills, notes, and
bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
RR-571
Pm- press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED SEPTEMBER 28, 1995
September 19, 1995
Offering Amount .
$11,400 million
$11,400 million
Description of Offering:
Term and type of security
CUSIP number
Auction date
Issue date
Maturity date
Original issue date
Currently outstanding
Minimum bid amount
Multiples .
91-day bill
912794 W3 4
September 25, 1995
September 28, 1995
December 28, 1995
June 29, 1995
$14,416 million
$10,000
$ 1,000
182-day bill
912794 X8 2
September 25, 1995
September 28, 1995
March 28, 1996
September 28, 1995
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
Competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
competitive tenders
Payment Terms .
Prior to 12:00 noon Eastern Daylight Saving time
on auction day
Prior to 1:00 p.m. Eastern Daylight Saving time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
I
DEPARTl\,lENT
OF
THE
TREASURY
NEWS
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.... ~,u. .u
D.C .• 20220 • (202) 622-2960
Testimony by
Deputy Secretary of the Treasury
Lawrence H. Summers
before the
United States Senate
Select Committee on Intelligence
September 20, 1995
Introduction
Mr. Chairman, Members of the Committee, thank you very much for the opportunity
to appear before you. Two of the most urgent imperatives facing us today are the need to
meet changing national security challenges overseas, and the obligation to impose strict
budgetary restraints during this era of dwindling resources here at home. Re-engineering the
Intelligence Community to meet these twin objectives is a pressing task. I'd like to say a
few words about how we at Treasury see national security needs evolving over the coming
years, and how the Intelligence Community can modify its work to meet those challenges as
efficiently, and as cost-effectively as possible.
Economic Security Issues to the Fore
If one looks at the matrix of national security concerns as they have evolved over the
RR 572
1
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
past decade, an important pattern emerges. Military, terrorist, and criminal threats to our
national security remain paramount. Nonetheless, a number of global changes have served to
push the sorts of economic issues with which we at Treasury deal to the fore.
First, the abandonment of socialism and embrace of market-based democracy by
formerly communist countries means that scores of nations in Eastern Europe, Asia, and
elsewhere are now undergoing difficult economic and social transitions. Ensuring that this
process succeeds in strategically sensitive regions is
on~of
the most important tasks we face.
The rise of emerging markets generally has been a second critical development.
Developing countries have become our fastest growing export markets and have become
critical for our prosperity. They now take some 40 percent of our exports, and support
roughly 4 million U.S. jobs. As with the former communist states, sustained economic
growth in sensitive regions of Latin America, Asia, and Africa -- coupled with an expansion
of our own economic ties -- can serve as an important stabilizing force.
Third, a rapid increase in the speed and integration of global financial markets is one
of the defining events of this era. This has brought great economic benefits to much of the
world's population, including our own citizens. But it has also meant that events in one
comer of the globe can spill over rapidly to affect other markets and economies, threatening
our jobs and financial security at home.
2
Mexico's financial difficulties and the ensuing reactions on financial markets as
diverse as Argentina's, South Africa's, and Thailand's, offered a vivid example of the
possibility for such spillover and contagion effects earlier this year.
Fourth, the vast expansion of global commerce means that our prosperity depends
more and more on the matrix of trade, tax, financial and other agreements which govern our
international economic relations. Support for these negotiations must be a high priority.
Designing appropriate policies to meet these economic security issues requires a
complete understanding of the economic, social, and political forces at work in the countries
with which we deal. Precise, accurate, and focussed information from the Intelligence
Community can play a critical role in helping us perform our missions.
Potential for Economies and Savings
That intelligence objective might not seem to square with the wish to conserve
resources and ensure fiscal responsibility here at home. The two objectives, however, can be
comfortably met. Realization of any potential economies that do exist, and honing by the
Intelligence Community of its work to fit client needs, can maximize savings while
increasing the precision and relevance of the Community's product. As John Deutch has
very accurately stated, a "consumer focus," rather than a "supply focus," must now become
the guiding principle for all the Community's work.
3
The Intelligence Community's Role
Secretary Rubin and I have already met with Director Deutch to communicate
Treasury's thoughts on how this process should move forward. Let me offer a number of
principles which I believe can accomplish this objective of conserving resources and
achieving economies, while ensuring that the Community maintains a "consumer focus" in its
work.
First, the Intelligence Community must concentrate limited resources on the kinds of
information gathering and analysis that it does best. A major difference between economic
and military information is that the former is widely and publicly available, while the latter is
often available only through intelligence operations. It is difficult to see how the Intelligence
Community can add much value to reports on European government finances -- whether
generated by U.S. government economists or Wall Street analysts based on public
information -- or for that matter, how the Community can improve on analyses of emerging
market economic prospects. Any wasteful duplication should be eliminated, vis-a-vis both
what private sector analysts are doing, as well as the work being performed within other
government agencies.
Second, even in those analytic activities where the Intelligence Community can playa
value-adding role, the Community must rely more on what outside information exists, in
addition to non-pUblic sources. As many societies become increasingly open, more and more
4
information about them becomes publicly available.
Drawing on reliable public information
ensures that the Community uses the best ingredients for its products, at the lowest possible
cost.
That is not to say that widely available information will always be adequate. Political
and economic developments in many of the key countries with which we deal -- those
undergoing transition, as well as important emerging markets - are not fully transparent.
Yet these are often the very societies in which political and economic forces may be most
volatile, and for which an understanding of the interaction between economics and politics is
critical, if we are to design appropriate United States policies.
The Intelligence Community
can best fulfill its function by providing Treasury with information drawn from all possible
sources on economic issues and the social contexts in which they are unfolding.
Third, the financial problems which pose the most significant risk of contagion, and
which therefore pose the greatest threat to our national financial security, can erupt as a
result both of purer economic factors, as well as the more subtle interplay of economic,
social, and political causes. It is tempting to believe that sufficiently detailed analysis can
give us the capacity to predict such crises. That is obviously not the case. Nonetheless,
information that is geared toward trying to foresee potential problems can serve to warn us of
incipient crises, in time to design more effective responses. The Community must assimilate
that early-warning objective into all its thinking.
5
Fourth, the Community should become more receptive to studying low probability
events. In my experience, analyses produced by the Community tend too often to reproduce
mainstream, middle-of-the-road views, without sufficiently considering extreme, if relatively
unlikely scenarios. Whether the issue is the potential collapse of a nation like the Soviet
Union, or financial crises erupting in important U.S. markets, the Community must be more
sensitive to the possibility that low-probability events with large consequences may occur,
and analyze these possibilities with greater rigor.
Fifth, the Intelligence Community must better target information in support of specific
diplomatic objectives. As complex commercial and financial agreements become ever more
important, the need to understand political and economic developments in the nations with
whom we are engaged in discussions becomes essential. That can help assure the successful
outcome of our negotiations.
In addition, many of the issues, which are now the subject of international economic
discussion are highly complex, with specific facts and assertions that are difficult to verify.
For example, talks on trade barriers which exclude U.S. products may depend on a full
understanding of the many subtle ways in which a country may subsidize its industries, or
otherwise discriminate against foreigners. Agreements that protect U.S. intellectual property
may require verification of approaches taken by foreign governments, or even of criminal
activities that occur overseas. It can be difficult to monitor implementation of complex
accords once they are reached. The information necessary to accomplish these verification
6
objectives can be difficult to gather and analyze. The Intelligence Community can play an
important role in providing it.
Sixth, the Intelligence Community can playa role in detecting foreign attempts to
seek an unfair advantage over U.S. businesses through industrial espionage.
The United
States rejects any effort at assisting our own businesses through the use of intelligence
operations to steal intellectual property or any proprietary information from foreign entities,
whether public or private. Such a practice is abhorrent, and we will not tolerate it.
Unfortunately, there have been past instances in which foreign governments have used
industrial espionage to seek an unfair advantage for their own firms.
Law Enforcement
While I have addressed economic security so far, I would like to touch on another,
equally important area of work in which there may be room for improvements in how the
Intelligence Community and other agencies, including Treasury, interact: law enforcement.
Enhanced law enforcement agency use of Intelligence Community skills and resources
can ensure that those resources are used to their fullest potential. We at the Treasury have
moved with the Intelligence Community in this direction for nearly a decade, and are
beginning to see the fruits of heightened cooperation. Since the early 80s, the Customs
Service has increased its use of intelligence information to track drug traffickers and other
7
smuggling and fraud operations. Several major recent drug seizures have resulted directly
from information provided through such intelligence channels.
The Secret Service has reported improvements in the quality and relevance of
intelligence traffic received through the Community. Investigation of the World Trade
Center bombing marked a watershed in cooperation among the ATF, the Secret Service, the
FBI, other enforcement agencies, and the Intelligence Community in tracking foreign
terrorist cells.
The Joint Intelligence Community Law Enforcement Working Group (JICLE), which
joins all the principle intelligence and enforcement agencies, has stepped up its efforts to
smooth out procedures for cooperation and joint work. In addition, the number of law
enforcement officials now on detail to Intelligence Community counter-terrorism and counternarcotics units has risen slowly but steadily over the past 5 years. These and other forms of
cooperation should increase, so that our enfo,rcement agencies can get maximum utility from
existing Intelligence Community resources.
Conclusion
To conclude, let me say that the evolving complexities of the global landscape make
the need for accurate, relevant, and timely economic information from the Intelligence
Community more, rather than less pressing. The fall of communism and embrace of market
8
forces have widened the range of possible economic outcomes for the United States, for the
emerging market countries which are important to us, and for the global economy as a
whole. The vast increase in international trade and investment mean that prospects for our
own and global prosperity are far more intertwined than they were before. Carefully-honed,
efficiently-derlved reporting from the Intelligence Community is critical, if we are to design
appropriate policies that address the challenges we face, and anchor the establishment of
prosperous, market-based democracies worldwide.
9
DEPARTMENT
OF
lREASURY
THE
TREASURY
NEWS
OFFICE OF PUBliC AFFAIRS • 1500 PENNSYLVANIA AVENllE. N.W.- WASHINGTON, D.C .• 20220. (202) 622-2960
:
FOR IMMEDIATE RELEASE
September 19, 1995
Contact:
Jon Murchinson
(202) 622-2960
STATEMENT BY SECRETARY RUBIN ON CRA REFORM
The CRA provisions adopted today in the budget bill passed by House Banking
represent a step backward for America's communities. The bill exempts nearly 90 percent of
insured depositories from CRA and strikes a blow against the effort to rebuild urban and rural
communities. eRA, by furthering access to capital for creditworthy borrowers, means jobs,
opportunity and hope for distressed communities. These attempts to roll back the eRA didn't
belong in the regulatory relief bill and they don't belong in the budget reconciliation bill.
The Administration led the way last year in a comprehensive rewrite of the regulations
under which
eRA
is administered. These fundamental eRA reforms -- the first since 1977 --
will provide real regulatory burden relief. They deserve a chance to work.
-30RR-573
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT
OF
THE
TREASURY
NEWS
'IREASuRV
OffiCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C.• 20220. (202) 622·2960
'.
-
. '.". ';'
FOR IMMEDIATE RELEASE
September 19, 1995
Contact:
Calvin Mitchell
(202) 622-2920
STATEMENT BY SECRETARY RUBIN ON EITC
The House Ways & Means Committee today voted to raise taxes on over 14 million
working Americans and their families by cutting the Earned Income Tax Credit (EITC) by
$23 billion over seven years. I believe strongly that we should balance the budget. But I
don 't think we should raise income taxes on the lowest-paid working Americans in order to
get theI;'e. President Reagan called this working person s tax credit, "the best anti-poverty,
I
the best pro-family, the best job-creation measure to come out of the Congress." Cutting the
EITC is no way to reward work, strengthen families or move the economy forward.
-30-
RR-574
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT
OF
THE
TREASURY
NEWS
OffiCE OF PUBliC AFFAIRS • 1500 PENNSYLVANIA AVENUE, ~W.~.rw~HlNGTON, D.C.• 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
September 20, 1995
STATEMENT BY TREASURY SECRETARY ROBERT E. RUBIN
"I welcome today's announcement by the Government of Japan of a significant
economic stimulus package.
The Japanese authorities have taken a series of constructive policy actions in keeping
with the cooperative strategy for growth and the adjustment of external imbalances, set out in
the April 25 G-7 communique.
I look forward to rapid implementation of this package, further follow-up on
deregulation, and the adoption of a comprehensive plan to strengthen the financial system.
I look forward to the next G-7 meeting with Minister Takemura and our other G-7
colleagues in October. "
-30-
RR-575
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVAN~t1~l!tEr
FOR RELEASE AT 2:30 P.M.
September 20, 1995
N.\Y! ./WJ1S~I'GTON, D.C.• 20220. (202) 622.2960
CONTACT:· Office of Financing
,
, "_ .. ~ ,) ··202/219-3350
TREASURY TO AUCTION 2-YEAR AND 5-YEAR NOTES
TOTALING $29,250 MILLION
The Treasury will auction $17,750 million of 2-year notes and $11,500
million of 5-year notes to refund $16,943 million of publicly-held securities
maturing September 30, 1995, and to raise about $12,300 million new cash.
In addition to the public holdings, Federal Reserve Banks hold $961
million of the maturing securities for their own accounts, which may be
refunded by issuing additional amounts of the new securities.
The maturing securities held by the public include $1,020 million held
by Federal Reserve Banks as agents for foreign and international monetary
authorities. Amounts bid for these accounts by Federal Reserve Banks will be
added to the offering.
Both the 2-year and 5-year note auctions will be conducted in the
single-price auction format.
All competitive and noncompetitive awards will
be at the highest yield of accepted competitive tenders.
Tenders will be received at Federal Reserve Banks and Branches and at
the Bureau of the Public Debt, Washington, D. C.
This offering of Treasury
securities is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356) for the sale and issue by the Treasury to
the public of marketable Treasury bills, notes, and bonds.
Details about each of the new securities are given in the attached
offering highlights.
If the auction of 2-year Treasury notes to be held Tuesday,
September 26, 1995, results in a high yield in a range of 5.500 percent
through and including 5.624 percent, the 2-year notes will be considered an
additional issue of the outstanding 5-1/2 percent 5-year notes of Series R1997 (CUSIP No. 912827G97) originally issued September 30, 1992. The
additional issue of the notes would have the same CUSIP number as the
outstanding notes, which are currently outstanding in the amount of $12,139
million.
Accrued interest of $0.30055 per $1,000 for September 30, 1995 to
October 2, 1995, would be payable in addition to the auction price of the
notes.
If the auction results in the issuance of an additional amount of the
Series R-1997 notes rather than a new 2-year note, it will be noted at the
bottom of the Treasury's auction results press release.
000
Attachment
RR-576
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
HIGHLIGHTS OF TREASURY OFFERINGS TO THE PUBLIC OF
2-YEAR AND 5-YEAR NOTES TO BE ISSUED OCTOBER 2, 1995
September 20, 1995
Offering Amount .
Description of Offering:
Term and type of security
Series
CUSIP number
Auction date
Issue date
Dated date
Maturity date
Interest rate
Yield .
Interest payment dates.
Minimum bid amount
Multiples .
Accrued interest
payable by investor
Premium or discount .
$17,750 million
2-year notes
AJ-1997
912827 V3 3
September 26, 1995
October 2, 1995
October 2, 1995
September 30, 1997
Determined based on the
highest accepted bid
Determined at auction
.March 31 and September 30
$11,500 million
5-year notes
Q-2000
912827 V4 1
September 27, 1995
October 2, 1995
October 2, 1995
September 30, 2000
Determined based on the
highest accepted bid
Determined at auction
March 31 and September 30
$5,000
$1,000
$1,000
$1,000
None
Determined at auction
None
Determined at auction
The following rules apply to all securities mentioned above:
Submission of Bids:
Accepted in full up to $5,000,000 at the highest accepted yield
Noncompetitive bids
(1) Must be expressed as a yield with three decimals, e.g., 7.123%
Competitive bids
(2) Net long position for each bidder must be reported when the
sum of the total bid amount, at all yields, and the net long
position is $2 billion or greater.
(3) Net long position must be determined as of one half-hour prior
to the closing time for receipt of competitive tenders.
Maximum Recognized Bid
35% of public offering
at a Single Yield
35% of public offering
Maximum Award .
Receipt of Tenders:
Prior to 12:00 noon Eastern Daylight Saving time on auction day
Noncompetitive tenders
Prior to 1:00 p.m. Eastern Daylight Saving time on auction day'
Competitive tenders
Full payment with tender or by charge to a funds account at a
Payment Terms .
Federal Reserve Bank on issue date
U
DOH 5310
DEPARTMENT OF THE TREASURY
WASHINGTON, D.C.
SECRETARY OF THE TREASURY
SEP2S95nO/6~O
Septemoer ~ 1, 19'-5
DEPT. OF THE TREASURY
The Honorable Newt Gingrich
Speaker of the House
United States House of Representatives
Washington, D.C. 20515
The Honorable Robert Dole
Majority Leader
United States Senate
Washington, D.C. 20510
Dear Mr. Speaker and Mr. Majority Leader:
I understand the House Majority is releasing its plan to restructure Medicare today. I am
writing to discuss the condition of the Medicare Hospital Trust Fund in the context of these
reform plans.
As Managing Trustee of the Medicare Hospital Insurance (HI) Trust Fund, I am concerned
by a growing number of statements by Members of Congress which appear to be based on a
misunderstanding of what our annual report said. Because votes for significant changes in
Medicare should not be cast without Members knowing the facts, I want to recount briefly
what the Trustees reported about the funding status of Medicare.
Simply said, no Member of Congress should vote for $270 billion in Medicare cuts believing
that reductions of this size have been recommended by the Medicare Trustees or that such
reductions are needed now to prevent an imminent funding crisis. That would be factually
incorrect.
In the annual report to Congress on the financial condition of Medicare, the Trustees
concluded that the ill Trust Fund will not be depleted until 2002, seven years from now.
When we issued our findings, we asked Congress to take remedial action to fix the HI Trust
Fund on a near-tenn basis and then in the context of health care reform to make long-term
changes in the system that would accommodate the influx of IIbaby-boomerll beneficiaries.
At no time did the Trustees call the funding crisis imminent. Without adequate time for
reflection, a responsible, bipartisan, long-term solution to the financing problem could not be
structured. We therefore did not imply that cuts of the magnitude being proposed now were
needed.
II
II
Nonetheless, the Majority is asking for $270 billion in Medicare cuts, almost three times
what is needed to guarantee the life of the Hospital Insurance (part A) Trust Fund for the
next ten years. Moreover, I understand that the $270 billion of cuts proposed by the
Majority includes increases in costs to beneficiaries under Part B of the Medicare program,
even though increases in Part B do not contribute to the solvency of the Part A Trust Fund.
In this context it is clear that more than $100 billion in Medicare funding reductions are
being used to pay for other purposes -- not to shore up the Medicare HI Trust Fund.
By contrast, the President's proposal, by providing ten years of trust fund security, is
consistent with actions by prior Congresses and would afford us far more than sufficient time
to propose a bipartisan solution to the long-term fiscal needs of Medicare. Such a bipartisan
solution will be needer! regardless of whether the President's plan or Congress's plan is
finall y adopted.
To emphasize, the Trustees did not recommend $270 billion of Medicare cuts at this time nor
state that the funding problems facing Medicare require actions of this magnitude now to deal
with a financing problem that occurs in the next century.
I hope this information can be provided to Members of Congress on both sides of the aisle as
they review the significant changes in Medicare that are being considered so that Members
can have a clear understanding of the facts.
Sincerely,
Robert E. Rubin
DEPARTMENT
OF
THE
TREASURY
OFFICE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
September 21, 1995
TESTIMONY OF THE HONORABLE JOHN D. HAWKE, JR.
UNDER SECRETARY OF THE TREASURY
FOR DOMESTIC FINANCE
ON THE
SA VINGS ASSOCIATION INSURANCE FUND
AND THE THRIFT CHARTER
BEFORE THE SUBCOMMITTEE ON FINANCIAL INSTITUTIONS
AND CONSUMER CREDIT
COMMITTEE ON BANKING AND FINANCIAL SERVICES
UNITED STATES HOUSE OF REPRESENTATIVES
RR-578
F(N'press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-204-0
SAVINGS ASSOCIATION INSURANCE FUND
AND THE THRIFT CHARTER
Testimony of the Honorable John D. Hawke, Jr.
Under Secretary of the Treasury
for Domestic Finance
Before the Subcommittee on
Financial Institutions and Consumer Credit
Committee on Banking and Financial Services
United States House of Representatives
September 21, 1995
TABLE OF CONTENTS
I.
n.
SAIF'S PROBLEMS AND SOLUTION
2
A.
SAIF's PROBLEMS
2
B.
NEED FOR ACTION
3
C.
PROPOSAL TO REsOLVE SAIF's PROBLEMS
4
CONCERNS WITH INSURANCE FUND PROVISIONS
7
A.
ASSESSMENT RATE SETTING TO MAINTAIN THE DESIGNATED REsERVE RATIO
7
B.
REBATE AUTHORITY
8
m.
NO SPECIAL TREATMENT FOR OAKAR AND SASSER DEPOSITS
IV.
THRIFT CHARTER AND RELATED ISSUES
13
A.
TIMET ABLE FOR CHARTER CONVERSION
14
B.
SAVINGS INSTITUTIONS POWERS
14
C.
HOLDING COMPANIES
15
D.
BRANCHING
17
E.
REGULATOR
17
F.
FEDERAL HOME LoAN BANK MEMBERSHIP
17
G.
HOME OWNERS LoAN ACT
18
H.
TAXES
18
v.
CONCLUSION
9
18
SAVINGS ASSOCIATION INSURANCE FUND
AND THE TIIRIFT CHARTER
Testimony of John D. Hawke, Jr.
Under Secretary of the Treasury
Before the Subcommittee on Financial Institutions
and Consumer Credit
Committee on Banking and Financial Services
United States House of Representatives
September 21, 1995
Madam Chairwoman, Mr. Vento, Members of the Subcommittee.
I appreciate this opportunity to present the Administration's initial views on the
Thrift Charter Convergence Act of 1995 (the "Convergence Act" or the "bill"), a draft
bill to resolve the problems of the Savings Association Insurance Fund (SAIF) and to
address thrift charter and related regulatory issues. I want to commend the Committee
for adopting the critical elements of the SAIF solution that the Treasury, jointly with
the Federal Deposit Insurance Corporation (FDIC) and the Office of Thrift
Supervision (OTS), proposed here on August 2. Since then, the Treasury has been
developing proposals on the future of the thrift charter and related rules and
institutional arrangements (as I indicated we would do), and it has been our intent to
present those views to the Banking Committee by the beginning of October. We look
forward to working with you in this area.
In my testimony, I will (1) summarize the main points in our August 2
testimony, i.e., the Treasury's understanding of SAIF's problems, the reasons why
they should be resolved now, and the critical elements of a comprehensive solution
contained both in the joint proposal of the Treasury, the FDIC, and OTS, and in the
Convergence Act; (2) discuss the major concerns we have with some of the bill's
2
related insurance fund provisions; (3) address the complaints about the proposed SAIF
solution raised by banks that have a portion of their deposits insured by SAIF
("Oakar" banks); and (4) provide our initial views on the Convergence Act's
provisions dealing with the thrift charter and related issues.
I. SAIF'S PROBLEMS AND SOLUTION
A.
SAIF's PROBLEMS
As we testified in August, SAIF has four major weaknesses. First, SAIF has
slender reserves. As of June 30, 1995, SAIF held $2.6 billion in reserves to cover
$708.6 billion in insured deposits. These reserves amounted to only 36.5 cents per
$100 of insured deposits - 71 percent below the statutory standard of $1.25 in
reserves per $100 of insured deposits. The failure of one or two large thrift
institutions could exhaust these reserves and leave the Fund insolvent. By contrast,
the Bank Insurance Fund (BIF) had reserves of $24.7 billion as of June 1995 to cover
$1.9 trillion in insured deposits - almost $1.29 in reserves per $100 of insured
deposits.
Second, SAIF has only meager income with which to protect depositors and
build reserves. Roughly forty-five percent of SAIF premiums go to pay interest on
the Financing Corporation (FICO) bonds issued to prop up the former thrift deposit
insurance fund.
Third, SAIF has excessive concentrations of risk because it insures a
specialized industry and because of the industry's concentration in large West Coast
3
institutions. These risk concentrations represent long-term structural problems in the
Fund.
Fourth, and most importantly by far, SAIF has an assessment base in long-term
decline. Over the five and one-half years from the end of 1989 through June 1995,
SAIF's domestic deposits - instead of growing 45 percent (as projected in 1989, when
SAIF was established) have shrunk more than 22 percent, from $950 billion at the end
of 1989 to $739 billion as of March 1995 - an annual shrinkage rate of almost 5
percent. Although SAIF's deposit base has grown slightly since late last year, this
reversal is likely to be short-lived if there is no SAIF solution, as healthy thrifts will
now be charged 575 percent times what healthy banks will pay for the same deposit
insurance. It is very likely that SAIF members, anticipating a legislative solution to
SAIF's problems, have deferred steps to reduce their reliance on SAIF-insured
deposits.
B.
NEED FOR ACI'ION
Without a SAIF solution, SAIF-insured deposits will likely resume their
decline, because depository institutions not only have the motive - a 19-cent premium
differential between the lowest rates charged by SAIF and BIF - but also the means to
reduce their reliance on SAIF-insured deposits. Current law generally prohibits SAIF
members from converting to BIF membership.' But depository institutions can sell off
loans, instead of holding them in portfolio, and thus reduce their need for deposits.
lUntil SAIF's reserves reach 1.25 percent of insured deposits, current law generally
prohibits SAIF members from becoming BIF members and vice versa, and generally
prohibits other "conversion" transactions between BIF and SAIF members, including:
mergers; assumptions of deposit liabilities; transfers of assets in exchange for assumptions of
deposit liabilities; and certain deposit transfers involving receiverships.
4
They can replace deposits with nondeposit funding sources, such as Federal Home
Loan Bank borrowings. Or they can seek to switch from SAIF to BIF, for example,
by forming affiliated BIF-insured banks with branches in their thrift lobbies.
Accordingly, we believe it would be unwise to assume that SAIF's assessment base
will grow, stabilize, or shrink only very slowly.
SAIF's greatest vulnerability arises from the interaction between the payments
on the FICO bonds, which claim the first $793 million in annual SAIF premiums, and
a SAIF assessment base in long-term decline. The combination of fixed FICO
payments and a shrinking assessment base tends to create a vicious circle in which (1)
shrinkage of the assessment base makes FICO payments consume an increasing share
of SAIF premiums, which (2) reduces SAIF's capacity to bear losses and build
reserves and renders increasingly remote the prospect of SAIF ever accumulating
sufficient reserves so that it could cut premiums, which (3) makes SAIF-insured
deposits less attractive as a funding source, which in tum (4) promotes further
shrinkage of the assessment base and leaves SAIF with even less income remaining
after FICO payments.
If not corrected, SAIF's weaknesses could leave the Fund insolvent and the
FICO interest payments in default. They could also make it more difficult for savings
institutions to attract and retain capital, thus harming what remains of the thrift
industry and diminishing the industry's capacity to help solve its problems.
c.
PROPOSAL TO RESOLVE
SAIF's PROBLEMS
The Administration believes that six principles should guide any solution to the
problems of SAIF. First, it should minimize the costs and risks to the taxpayers.
5
Second, it should assure prompt capitalization of SAIF. Third, it should avoid default
on the FICO bonds. Fourth, it should require a fair and substantial contribution from
institutions with SAIF-insured deposits. Fifth, it should allocate burdens fairly, and
avoid market distortions and perverse incentives. And sixth, it should maintain public
confidence in federal deposit insurance by acting promptly, before SAIF's problems
become more serious.
As presented to this Subcommittee in August, the joint proposal of the
Treasury, the FDIC, and OTS has three critical elements:
First, capitalizing SAIF through a special assessment on SAIF-insured deposits.
Institutions with SAIF-insured deposits would pay a special assessment at a rate
sufficient to increase SAIF's reserves to $1.25 per $100 of deposits at the beginning of
1996. The special assessment would be based on institutions' SAIF-assessable
deposits on a specific past date, such as March 31, 1995, which would make the
assessment difficult to evade and would give institutions no new incentives to shrink
their SAIF-insured deposits. The special assessment is entirely attributed to 1996, and
therefore, we understand can be deducted.
To help ensure that the special assessment does not inadvertently contribute to
the failure of institutions that might otherwise have survived, the FDIC's Board of
Directors could exempt weak institutions from the special assessment if the exemptions
would actually reduce risk to the Fund. But any exempted institution would pay
premiums for 1996 through 1999 under the current SAIF risk-based premium schedule
(with rates ranging from 23 to 31 basis points). Thus weak institutions would still,
over time, generally pay more than healthy institutions.
6
Second, spreading FICO payments pro rata over all FDIC-insured institutions.
Spreading FICO payments over a large deposit base ($3.2 trillion as of June 1995)
would avoid the vicious circle of shrinkage, perverse incentives, and record-high
premium rates described above. And it would leave BIF premiums only 2.5 cents
higher per $100 of deposits than they otherwise would have been - still allowing BIF
premiums to decline dramatically from the 23-cent rates prevailing over the past four
years.
Third, merging the deposit insurance funds as soon as practicable -- preferably
no later than the beginning of 1998. Merging the funds would cure the longer-term
weaknesses of SAIF that arise from the Fund's concentrations of risk. Merger would
provide the requisite asset and geographic diversification, and would protect taxpayers
from the possibility of another deposit insurance crisis by ensuring that SAIF's
problems would not need to be revisited.
The joint proposal also includes provisions to restore the FDIC's authority to
rebate excess BIF premiums, and give the FDIC some flexibility to reduce the
frequency of premium rate changes.
Let me emphasize, as we did in August, that the joint proposal provides a
complete and permanent solution to SAIF's problems. It deals comprehensively and
definitively with SAIF's inadequate reserves and income, shrunken deposit base, and
excessive risk concentrations, and with the perverse incentives created by a premium
differential.
7
D. CONCERNS WITH INSURANCE FUND PROVISIONS
We applaud the inclusion of the joint proposal's three critical elements in the
Convergence Act. We also note that the draft released on September .19 resolved
several of the concerns we had voiced informally about earlier versions of the bill.
Let me turn now to remaining concerns we have with some insurance fund provisions
of the Convergence Act.
A.
AsSESSMENT RATE SETflNG TO MAINTAIN THE DESIGNATED REsERVE
RATIO
Current law requires the FDIC to set assessment rates in order to maintain the
designated reserve ratio of the insurance funds, now at 1.25 percent of insured
deposits. The FDIC views the designated reserve ratio as a target, around which the
actual reserve ratio is expected to fluctuate due to economic factors beyond the
FDIC's control. Strict rules apply when the fund becomes undercapitalized. We are
troubled by the provisions in the Convergence Act that would (1) treat the designated
reserve ratio as a rigid limit on the fund's reserves level; and (2) prevent the FDIC
from maintaining a risk-based pricing system under certain conditions when the
fu~d
is fully capitalized. We strongly recommend retaining the rate-setting provisions in
current law, rather than adopting the provisions in the bill.
Attempting to treat the designated reserve ratio as a rigid ceiling would not only
ignore the impossibility of controlling the economic factors that affect fund reserves; it
would also, to a significant degree, make deposit insurance into a pay-as-you-go
system, in which insurance costs are borne at the time the losses are incurred. This
would foreclose the FDIC's ability to spread risk over time and possibly subject banks
to extremely large swings in insurance premiums. Such pricing would inject volatility
8
into bank earnings that would likely increase the industry's costs of attracting and
retaining capital.
We are not arguing that the FDIC should be managing the funds to a level
above the 1.25 percent of insured deposits. Rather, it should remain able to manage
the fund to 1.25 percent over time, allowing for some fluctuations in reserve levels
from one rate-setting period to another.
Allowing the FDIC to set premiums only to the extent necessary to maintain the
reserve ratio rigidly at the designated reserve ratio might imply that, in good economic
times -- i.e., when premium income is not needed - the FDIC would have to set
premiums at zero for all insured institutions. This would effectively undermine the
FDIC's statutory mandate to assess institutions based on the risks they pose to the
insurance fund. In so doing, it would (1) penalize well-managed and well-capitalized
institutions; (2) provide no incentives to institutions to control risk-taking; which (3)
could result in greater costs to the FDIC once the economy or institution behavior
causes losses to the fund; thereby (4) reducing taxpayer protection provided by a
healthy insurance fund. Charging no premium at all would also fail to take account of
the fact that the FDIC's guarantee of deposits confers a significant benefit on all
insured institutions.
We would also note that if the bill precludes the FDIC from collecting
premiums, it may create obstacles to servicing the FICO debt.
B.
REBATE AumORITY
The Convergence Act requires the FDIC to rebate to insured depository
institutions the amount by which actual reserves exceed what is needed to maintain the
9
designated reserve ratio for any semiannual period (but not greater than the amount of
assessments paid). Mandatory rebates of excess assessments would unduly restrict the
FDIC's ability to spread risk over a time and stabilize premium rates, and under
certain conditions, prevent the FDIC from charging institutions based on the risks they
pose to the insurance fund. A better approach would be to provide the FDIC with
discretionary authority to rebate assessments, as a tool to aid in managing the fund at
the designated reserve ratio.
m.
NO SPECIAL TREATMENT FOR OAKAR AND SASSER DEPOSITS
You have asked that we address the effect of the SAIF solution on Oakar and
Sasser banks. Like all other SAIF members, both the joint proposal and the
Convergence Act make Sasser banks' SAIF-assessable deposits subject to the special
assessment and, in return, give them the benefit of the lower regular premium rates
that result from SAIF's capitalization and spreading FICO costs across all FDICinsured institutions.
The joint proposal and the Convergence Act call for Oakar deposits (the portion
of BIF-member banks' deposits that is effectively insured by SAIF) to be subject to
the same special assessment levied on all SAIF-insured deposits, in exchange for the
benefit of lower regular premiums - and a merged fund - to follow.
Recently, groups of Oakar banks have made various arguments why they should
be relieved of some, or all, of the burden of the special assessment. They have also
made various proposals for relief, some of which shift costs from Oakar banks to
other banks, and others of which shift costs from Oakar banks to thrifts.
10
The arguments that the Oakar banks have made generally fall along one or
more of the four following lines: (1) Dakar purchases benefitted the government by
taking troubled thrifts off the government's hands; (2) Dakar banks were not informed
that they might have to pay substantially higher premiums on their SAIF-insured
deposits, much less a special assessment; (3) a large part of the thrift deposits acquired
have "run off," so they are being asked to pay an assessment on "phantom" deposits;
and (4) Oakar banks are being burdened with a new obligation without receiving any
benefit in return.
As we will explain, we see no merit in these arguments.
1. Dakar purchases were profit-motivated business transactions. Banks bought
thrifts - troubled or otherwise - for sound business reasons. They expected to
benefit from the thrift and branch locations they bought. The lower franchise values
of thrifts (relative to banks) have been an attractive way for banks to purchase
branches and expand a stable source of financing (i.e., core deposits).
The Oakar provision was designed to allow banks to engage in transactions that
were otherwise not permitted. It allowed banks to achieve efficiencies by directly
consolidating acquired thrifts, rather than having to hold them separately because of
the statutory moratorium on converting deposits from one insurance fund to another.
It provided an alternative to costly insurance fund entrance and exit fees at the time of
acquisition.
2. Acquirers could have no reasonable expectations that premiums would
remain unchanged. Since FIRREA, the law has been clear that: (1) a portion of the
expanded deposit base that results when a bank acquires a thrift would be assessed by
SAIF; and (2) the FDIC would set premiums for SAIF and BIF independently. No
11
bank that had acquired a thrift had any right or basis to assume that deposit insurance
premiums would not change in the future. Indeed, the more recent the transaction,
the more aware the acquiring banks should have been about SAIF's problems and the
possibility of a premium differential if those problems were not addressed. These
banks likely would have factored these concerns into their business decisions,
including the prices bid on the thrift deposits.
3. Deposit run-off is not the issue. Banks buying thrifts have not merely been
purchasing specific individual deposit accounts. They have been acquiring franchises
- sets of business relationships and prospects for future development of new
relationships. The rules for determining what part of an acquirer's total deposits over
time are subject to SAIF premiums have been prescribed by statute and by the FDIC
regulation since 1989.
Congress has always required Qakar deposit growth to be calculated by
formula, rather than based on what actually happened to the specific deposits acquired.
In fact, when the Qakar amendment was first adopted, it imputed a minimum 7
percent growth rate at a time when SAIF deposits were declining. The formula was
designed to protect SAIF, and it provided a straightforward means for determining .
what portion of an institution's total deposits over time would be assessed by each of
the two insurance funds.
It is extremely difficult to measure run-off, even to define it. Some banks have
identified run-off when an address on an account is changed, when there is a change
in a checking account program, when a spouse is added to an account, or when the
funds from one type of account are rolled into another. Those drafting the Qakar
provisions knew that the FDIC would have difficulty tracking the status of specific
12
acquired deposits, or validating and interpreting banks' own measurement of deposit
run-off.
Moreover, some run-off in the specific accounts acquired was inevitable and
predictable, and banks certainly factored it into the prices they bid for deposits.
But run-off in these specific deposit accounts should not even be an issue. A
much more important question is what happened overall to the franchise that was
acquired. Did it grow under the new management? If not, who should bear the
burden of the acquirer's misjudgment? And by what standard can anyone judge
whether these institutions should now get some relief? We see no principled basis on
which the petitions of the Qakar banks can be given any credence.
4. Finally, the special assessment has ample offsetting benefits. The special
assessment does not alter the existing obligation of either Qakar banks or savings
associations to capitalize SAIF. Under current law, they would have to continue to
pay premiums at the present high rates until SAIF is capitalized. The special
assessment accelerates the fulfillment of their obligation to capitalize SAIF.
Banks with SAIF-insured Qakar deposits would in fact benefit directly from
lower regular premiums following the special assessment. They would also benefit
from the joint proposal's resolution of SAIF's long-tenn weaknesses (i.e., through a
fund merger), and from the continued stability of the deposit insurance system that the
joint proposal would maintain.
13
IV. THRIFT CHARTER AND RELATED ISSUES
As you are aware, the Treasury is developing its proposals for the thrift charter
and related institutional arrangements, including regulatory and tax aspects. Certain
general principles have guided us in our evaluation of proposals concerning these
issues:
•
Decisions about powers, ownership, and regulation in the context of this
legislation should be viewed as transitional: the resolution of the thrift charter
question should not become the vehicle for broad financial modernization.
While modernization is of critical importance, it raises issues that should be
addressed separately. Proposals of the sort now before the Subcommittee
should be confined to issues that arise from folding the thrift charter and
regulatory system into the existing bank system.
•
Proposals should minimize artificial incentives for financial institutions to
maintain a narrow focus, i.e., they should not perpetuate concentrations of
assets and earnings by financial institutions in specialized fields unless
responding to market incentives.
•
Proposals should avoid abrupt termination of institutions' current lawful
activities.
•
Proposals should attempt to level the playing field prospectively among insured
depositories.
14
•
Proposals should preserve the dual banking system and should be strictly
neutral in terms of the incentives they create for choosing a state or federal
charter.
We recognize that these principles can often conflict with each other. The
difficult task before us is to strike an appropriate balance. With that in mind, we are
prepared to discuss some concerns we have based on our initial review of the
Convergence Act's charter and regulatory issues.
A.
TIMETABLE FOR CHARTER CONVERSION
Our concerns about the charter conversion deadline in an earlier draft of the bill
were addressed in the more recent version, which requires conversion by January 1,
1998. In order to facilitate an orderly process, it would be helpful if procedures could
be adopted to streamline and accelerate the conversion process for those thrifts
prepared to convert at an earlier date.
B.
SAVINGS INSTITUTION POWERS
We note conflicting considerations in resolving issues related to the disparity of
powers between thrifts and banks. On the one hand, it is reasonable to be concerned
about competitive equity between former thrifts and existing banks. On the other
hand, those institutions that have exercised such powers, often for many years -profitably, legally, and in accordance with safety and soundness requirements -should not be unfairly penalized. Nor should their capital be jeopardized by the loss
of income from established activities that are safe and sound.
15
The tension between these considerations should be resolved as much as
possible by a reasonable grandfather provision that would not force a precipitous
abandonment of former thrift powers or a disruptive divestiture of nonconforming
assets. A reasonably long grandfather period would allow converting institutions to
make orderly plans for a transition to bank powers. Furthermore, unlike the
grandfather provision proposed in the Convergence Act, the period would be fixed for
all institutions, rather than a short fixed period followed by extensions allowed by
regulators only on a case-by-case basis. Such a process would unnecessarily clog the
regulatory process with petitions for relief.
Such a grandfather provision would have the added benefit of giving Congress
the opportunity to decide the broader questions of financial modernization on a
separate course - before former thrifts would have to terminate grandfathered
activities.
C.
HOLDING COMPANIES
We find the holding company issue one of the most difficult to resolve. Thrift
holding companies cover a wide spectrum: while many are engaged primarily in the
thrift business, others have a wide range of affiliations and activities not permissible
for bank holding companies. There has been no evidence that diversified ownership
has in and of itself been a significant problem from either supervisory or social policy
perspectives. In fact, many diversified holding companies have been a source of
strength to their thrift subsidiaries. We want to prevent a disruption of settled
relationships that have not been problematic in the past.
16
On the other hand, the thrift subsidiaries of these companies would now be
banks. It is not unreasonable to expect that the banks' owners should be treated the
same as owners of existing banks.
At this time, we are leaning towards an arrangement that would provide some
choice for companies that own savings institutions - either to pursue. opportunities in
ways pennitted to them currently as owners of thrifts, or, alternatively, to be
regulated as owners of banks. They could, for example, opt to meet qualified thrift
lender requirements and continue to be regulated as thrift holding companies, allowing
them to expand in areas not authorized for bank holding companies. In this event,
they would be regulated by the successor to the Office of Thrift Supervision, which
currently regulates these companies. Or they could disregard the constraints of the
QTL test and choose to be regulated under the Bank Holding Company Act, with the
right to expand in ways pennissible for other bank holding companies. The latter
choice would precipitate divestiture of activities and affiliations not pennitted for bank
holding companies after two years.
We are concerned about the rigidity of the requirements in the bill to maintain
grandfathered holding company status. A minor infraction of an investment limitation
could result in the forfeiture of grand fathered status. In addition, with respect to the
prohibition on acquiring more than five percent of another insured depository, no
provision is made for shares acquired in the normal course of business, such as shares
held for trading or held temporarily pursuant to an underwriting commitment. We
would be pleased to work with the Subcommittee in addressing other complexities that
might be raised by such an approach.
17
D.
BRANCIDNG
Congress has taken very forthright steps to promote the elimination of
geographic barriers to competition in banking. We think the spirit of.the Interstate
Branching Act should be reflected in the treatment of branching in this legislation.
Accordingly, we do not think it is advisable to limit a former savings association's
ability to establish additional branches in a State in which it already has a branch. As
has historically been the case with national banks having grandfathered interstate
branches, such institutions should have the right to continue to branch in states in
which they presently have lawful branches.
E.
REGULATOR
Our position at this time would be to merge the Office of Thrift Supervision
into the Office of the Comptroller of the Currency as a structural matter, rather than
liquidate the OTS and divide its employees among the three federal bank regulators as
proposed in the Convergence Act. We recognize that in the process of conversion,
some thrifts will end up as state-chartered banks, and therefore will be regulated by an
agency other than the merged OCC/OTS. Thus, some reallocation of personnel will
be necessary. Consideration must be given to the timing and method for reallocating
employees in a way that matches personnel resources to new regulatory constituents at
each of the agencies.
F.
FEDERAL HOME LoAN BANK ME:MBERSmP
We would strongly object to a permanent prohibition on institutions currently
chartered as federal savings associations from withdrawing voluntarily from the
Federal Home Loan Bank System. This would perpetuate current inequities in the
18
treatment of mandatory and voluntary members. However, we understand that this
provision is designed to maintain the status quo until the Federal Home Loan Bank
issues can be addressed in comprehensive legislation.
G.
HOME OWNERS LoAN Acr
The blanket repeal of the Home Owners Loan Act (HOLA) may have
substantial ramifications that need to be explored, among them the effects on the
Federal Home Loan Bank System (e.g., on differential standards for institutions that
do or do not meet HOLA's qualified thrift lender test).
H.
TAXES
We believe that, on a prospective basis, existing banks and former thrifts
should be taxed similarly. There are several alternatives for dealing with the existing
bad debt reserves of converting thrifts, and we are still in the process of considering
those alternatives.
v.
CONCLUSION
As we concluded in our August testimony, we have an opportunity that arises
from identifying problems before they become a crisis. The Administration, the
regulators, the Congress, and large segments of the industry have reached a consensus
on the critical elements of a solution that would permanently resolve SAIF's near-term
problems and long-term deficiencies. As important as the issues concerning future
charter and regulatory options for the current thrift industry are, we should not let
their resolution hinder quick enactment of a comprehensive financial solution to the
remaining thrift deposit insurance problems.
19
We stand ready to work with the Subcommittee and other Members of
Congress to facilitate this solution.
OFFICE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960
!
~
i
.
~
ADV 7 P.M. EDT
Text as Prepared for Delivery
September 21, 1995
REMARKS OF TREASURY SECRETARY ROBERT E. RUBIN
MIAMI HERALD SPIRIT OF EXCELLENCE AWARDS DINNER
MIAMI, FLORIDA
It's nice to be home again and have the opportunity to join you in honoring five
South Floridians who each have made very important contributions to the South Florida
community. It is fitting, and it promotes the long-term health of the area, that once a
year the community stops and recognizes a small group of talented and dedicated people
who make a contribution to one of America's great cities. Their experience shows how
getting involved in the community can be both personally rewarding and enormously
useful to the area and to our society.
More than one hundred and sixty years ago, Touqueville wrote that voluntary
associations -- the informal joining of citizens -- were uniquely important in America;
and so it still is today. Now, nearly two centuries later, there is a resurgent interest in
community involvement -- involvement outside the important and necessary programs of
government -- to make America better. Tonight we celebrate commitment and
involvement in the voluntary sector that plays such a critical and unique role in our
society. That celebration, as well as the example of your five honorees, should inspire all
of us to raise our sights in serving our country through voluntary activity.
Public service, outside and inside government, is enormously rewarding. I spent
26 years in the private sector, and it was challenging and fulfilling. But now, I have the
chance to apply the lessons of those 26 years to the larger economic issues of how to
make the global economy work for all Americans -- and that is a challenging and
remarkable opportunity to have.
I was reflecting on what I could say about the Miami area, and I started thinking
about how different the Miami of today is from the Miami in which I grew up.
RR-579
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
2
Obviously, the portion of the population that is Hispanic has risen substantially. I
saw a statistic the other day that in the city of Miami proper, roughly two and one-half
times as many people speak Spanish at home as speak English. The change in Miami's
demographics has made it a far more exciting, vibrant and vital town than it was when I
was growing up. The presence of different racial and ethnic groups better enables us to
work effectively with the rest of the world and strengthens our social, economic, political
and national security ties around the globe. It is no coincidence that the President chose
Miami for the Summit of the Americas last year. In the span of just a few decades
Miami has positioned itself to serve as the gateway to Latin America, an area with such
great potential.
We are, I believe, the first great and lasting nation in history that has become
truly culturally and racially diverse. If you step back and look at this nation's 200-plus
years of history, it has been a remarkable period. Other nations have been torn apart by
their differences, but ours has survived and prospered. That is not to say we haven't had
and do not now have shortcomings and difficulties -- we have and we do, and they must
be addressed -- but we have come a long way. The diverse composition of our society
presents us with both problems and opportunities. Our challenge, therefore, is to
overcome the problems, and realize the opportunities.
We have had unique advantages. In most of the countries our ancestors came
from, there was a rigid class structure; if your family was poor, that would never change.
Here, we have something called the American Dream -- an ideal that, to be sure, has
worked imperfectly, but nonetheless is real. It is not a guarantee, but the opportunity to
succeed and do well through one's own efforts -- and opportunity that has been a source
of inspiration and unity in our society and around the world.
Our challenge today -- in a global economy and in an information age -- is to
keep that Dream alive and to be sure it works for every American.
We must look both within and without for opportunities to make us stronger
within our borders. We must seize on the opportunities to fruitfully engage with the rest
of the world. A prime example of that is the North American Free Trade Agreement.
It offers a vision for trade and a closer association with different cultures and societies.
Part of NAFTA's importance is our relationship with Mexico, and part is the vision of a
relationship of mutual respect with the entire region. True, Mexico's financial difficulties
mean a delay in the full realization of the benefits of NAFTA, but I am certain we will
eventually reap those benefits, and not just in Mexico but throughout the hemisphere.
There is a great deal going on in Washington now that is central to the questions
of how our society faces its future and what kind of nation we will be in the next century.
Our economy has undergone a stark and profound set of changes, in technology and in
globalization. Our economy's future depends on how well we prepare Americans to
compete effectively in an increasingly global economy.
3
I want to touch briefly tonight on some of the budget issues central to our
economic future.
The debate under way in Washington is not about whether to balance the budget.
There is agreement on that. After decades of deficit spending, after 12 years in which
our debt quadrupled, President Clinton re-established the discipline of fiscal
responsibility. Our economic program, passed in 1993, has resulted in lower deficits for
three fiscal years in a row -- for the first time since Harry Truman was President. Since
President Clinton took office, the deficit has been cut nearly in half, both in dollar terms
and as a percentage of our Gross Domestic product. Now both parties are building on
that progress by committing the country to balancing the budget at the beginning of the
new century, and the only debate is over how balance will be achieved. This is a historic
departure from the budget habits of the past.
I want to discuss two areas where the President and congressional majority differ
in this debate: The President believes that as the budget is balanced, we must maintain a
real and vigorous program of investment in education and training and related areas to
prepare America to compete and succeed in the 21st century. And, he believes the
budget must continue to maintain the social compact amongst Americans.
Why the emphasis on education and training? Because there is nothing more
central to our ability to compete and succeed globally. And because there is a disturbing
trend in this nation which education and training and the programs the President
advances will address. That trend -- if not met head-on -- could undermine the
remarkable success we have achieved in the United States in bringing together so many
disparate groups of people.
If you look back to the '50s, '60s and '70s, across the spectrum of income groups
in the United States, incomes were rising at roughly proportional rates. Everyone was
getting ahead at roughly the same rate. That has not been the case for almost 15 years
now. The top 40 percent of the income brackets are continuing to experience rising
incomes, but the lower 60 percent are seeing their incomes erode. The median income
of year-round, full-time male workers fell more than 10 percent in real terms between
1978 and 1993.
The widening income gap poses very profound and disturbing problems for the
United States. It is already tearing at our social fabric. You can also see it in the
lowered respect many have for our institutions -- government, the media, law
enforcement, business and other national institutions.
4
Beyond that, a trend of this nature can become self-fulfilling. As the income gap
widens and dissatisfaction and unease increase, it becomes harder to obtain public
support for the very kind of forward-looking economic policies requisite for economic
growth, having a better educated work force for the next century, and raising living
standards. One example of that is the backlash against free trade we have seen.
Adopting budget and economic programs that create growth, prepare our
economy for the 21st century and provide Americans the opportunity to prosper will
address the problems of income inequality and falling median incomes.
This is not a problem in the abstract. It is a problem in reality, and it in large
measure is at the heart of the budget debate in Washington.
The critical nature of education in strengthening economies is recognized around
the world. Let me illustrate the point. Earlier this year I was in Indonesia for a meeting
of finance ministers from Asian and Pacific countries. Many of the nations represented
at the table are ones which 20 years ago were asking the United States for aid. Today,
they have strong, growing and vibrant economies. Many, in fact, are now our
competitors in trade. What each of these economies has in common is a very strong and
sustained investment in education. That is what has brought their economies along so
far and so fast, and that is what is absolutely necessary in the United States to strengthen
and sustain our position as the world's most productive and competitive economy.
In preparing the budget, the President started with the question of what is best for
the long term economic growth of the nation. That led to a budget that is balanced and
also makes vigorous investments in education, training, technology and related areas.
The congressional majority, on the other hand, started with an arbitrary date by which to
reach balance. That forced it to make severe reductions in the areas absolutely critical
to determining how prepared Americans and the American economy are for the 21st
Century.
I also want to touch briefly on the very special social compact that exists in the
United States amongst our citizens. This is the 60th anniversary of Social Security, and
the 30th anniversary of Medicare. I had the opportunity last month to speak in Hyde
Park, New York, at the Roosevelt Library and birthplace. I was reminded there about
his absolute commitment to the social compact amongst Americans, to strengthening the
unity of our country.
Part of that compact is protecting the elderly. We all recognize that reducing the
growth in Medicare costs is necessary to achieve a balanced budget. But in the course of
doing so, the President is committed to ensuring that Medicare remains an effective
program. There isn't a community in the nation where respect for the elderly is higher
than this one. That is why the President came here this week to voice his concerns
about Medicare. The social compact that FDR helped create must be preserved.
5
Tonight is a special night. It is about recognizing how talented Americans can
playa role in preparing our nation for the future, in taking advantage of opportunities, in
drawing us closer together as a community and country, and in seeing that the American
Dream is available for all Americans.
Tonight's honorees exemplify the spirit of excellence that will enable the United
States to deal with its problems and meet its challenges as our great country enters the
21st Century.
My congratulations to'the winners, and thank you for asking me to join you this
evening. Thank you.
-30-
DEPARTMENT
OF
THE
TREASURY
NEWS
FOR IMMEDIATE RELEASE
September 21, 1995
STATEMENT OF TREASURY SECRETARY ROBERT E. RUBIN
Frank Newman became one of the Treasury Department's most valued assets in the
nearly three years he spent here. Starting first as Under Secretary for Domestic Finance,
then Deputy Secretary, and for a time as Acting Secretary, Frank handled complex issues,
under intense pressures, and demonstrated the kind of resolve and integrity that has made
him respected throughout the financial community. His counsel has been excellent and his
judgment first-rate. He was a leader in the successful passage of the landmark Interstate
Banking Bill, and made Treasury work better and more efficiently as the department's Chief
Operating Officer.
We wish him well at Bankers Trust. His rare talents will be missed.
-30-
RR-580
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
Department of the Treasury
Bureau of Alcohol, Tobacco and Firearms
';~l'·fl"J~'
ATF'U'{J~'
.
SEP
Washington, DC 20226
~PE1".IAl "'~-'t N I
Z5JJ 0 J i.. GL~ 0
. ; 'T ;,
~
:
-
I
~4
Hour Telephone: (202) 927-8500
(
September 19, 1995
******
PRESS ADVISORY
******
DIRECTOR MAGAW TO SPEAK AT PRESS CLUB LUNCHEON
Picture an agency that:
**
collects 35 dollars in revenues for every dollar it spends;
**
has technical expertise respected by industry and law
enforcement organizations allover the world;
**
has mutually productive working relationships with the
industries it regulates;
**
works closely with its counterparts in State and local
law enforcement agencies.
ATF Director John W. Magaw will discuss how ATF meets this
description by pointing to the accomplishments, history and
programs that define ATF as a successful Federal agency. In the
standard format for Press Club luncheons, Director Magaw will
also respond to queries from the media.
WHEN:
Monday, September 25, 1995, 12:30 pm to 2:00 pm
WHERE:
The National Press Club
14th and F Streets, NW
Washington, DC
CONTACTS: Tickets:
RR-581
Ms. Pat Nelson
(202) 662-7501
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVA,NIAAVENU~, N.W.' • WASHINGTON, D.C .• 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
September 21, 1995
Contact: Michelle Smith
(202) 622-2960
lJNITED STATES AND LUXEMBOURG INITIAL NE\V INCOME TAX TREATY
On September 21, delegations from the United States and Luxembourg initialled the
text of a new income tax treaty between the two countries. The new treaty will replace the
current treaty, which was signed in 1962.
The new treaty reflects important changes in the income tax treaty policies of the
countries since 1962, particularly with respect to exchange of information and limitation on
benefits. After signature by the two governments, the treaty is subject to ratification in each
country. The text of the treaty will be made public after signature.
-30-
RR-582
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
11.)1'\,',, I'~'(
i... l [J
1"-1' . t:; :rdJ
. '.,..
-
~" '~?"i.
,
-
I
\4'
." ; , .
•
•
,
._" _ . _
I,
,."
.'
- ~ I
..,
General Explanation
of the
Administration's Pension
Simplification Proposal
Department of the Treasury
Department of Labor
September 1995
General Explanation
of the
Administration's Pension
Simplification Proposal
Department of the Treasury
Department of Labor
September 1995
ADl\1INISTRATION'S PENSION SIMPLIFICATION PROPOSAL
On June 12, President Clinton proposed significant changes to simplify the pension
system and expand coverage. These proposals would make it simpler and more cost
effective for businesses, tax-exempt organizations, and state and local governments to
provide retirement plans for their workers and to allow their workers to save for retirement
on a tax-deferred basis. The current pension system works well for many, particularly those
who work for large organizations, where almost three quarters of workers are covered by
employer retirement plans. But millions of Americans, particularly those who work for
small organizations, do not have the opportunity to participate in an employer retirement
plan, in part because their employers find it complex, expensive, and frustrating to maintain
these plans. Moreover, employers that do maintain retirement plans want more of the money
they spend on these plans to go to retirees, rather than to paying administrative expenses.
The legislative portions of the Administration's proposal are described below.
Enactment of the proposal would represent an important first step toward creating a pension
system that works better and costs less. It would establish a new retirement savings vehicle
specifically designed to meet the needs of small employers. It also would repeal or
substantially modify complex rules that are outmoded, redundant, or no longer necessary to
achieve policy goals, thus simplifying the pension system and reducing administrative costs
for all employers.
The Administration's proposal would enable businesses, governments, and tax-exempt
organizations with 100 or fewer employees to establish an extremely simple retirement plan - the National Employee Savings Trust, or NEST -- that combines many attractive features of
the 401(k) plan and the IRA. If the employer made contributions on behalf of each eligible
employee under either of two alternative formulas, the NEST would not be subject to any of
the complex nondiscrimination or top-heavy rules, nor to any employer reporting
requiremen ts.
The proposal also would promote retirement savings through improved and expanded
401(k) plans. The proposal would exempt from nondiscrimination testing any 401(k) plan
under which the employer made contributions (either nonelective contributions or a
combination of nonelective and matching contributions) in accordance with alternative
formulas similar to those applicable to the NEST. In addition, all tax-exempt organizations
(other than state and local governments) would be able to provide 401(k) plans for their
employees.
Further, this proposal would simplify the pension system and reduce the
administrative costs of maintaining retirement plans for all employers. It would
•
Repeal the family aggregation rules, so that spouses and children who work in the
same business would be allowed to earn pension benefits of their own;
•
Repeal section 4l5(e) -- an excessively complex limit on contributions and benefits for
employees who participate in a defined contribution plan and a defined benefit plan of
the same employer;
•
Replace the current seven-part definition of "highly compensated employee" with a
simple two-part test that would save many middle-income Americans from being
disadvantaged by nondiscrimination rules that were originally meant to help them;
•
Repeal the requirement that actively working employees begin receiving pension
distributions at age 70 112 and, thus, allow them to continue accumulating new
benefits without simultaneously being required to receive distributions;
•
Modify the definition of "leased employee" to better target the abuses that were
originally intended to be addressed by the leased employee rules.
•
For multiemployer plans, eliminate the special vesting schedule and partial
termination rules, simplify the limits on contributions and benefits, and allow more
pre-funding of benefits; and
'.
For state and local government plans, simplify the limits on contributions and
benefits.
The Administration's proposal would strengthen protection of workers' benefits by
expanding current law to allow all terminating private retirement plans, whether defined
benefit or defined contribution, to transfer the accounts of missing participants to the Pension
Benefit Guaranty Corporation. This would make it easier for all workers to receive the
benefits to which they are entitled.
Finally, the proposal would streamline reporting and disclosure requirements by
eliminating the required filing of summary plan descriptions with the Department of Labor.
Increasing the retirement income security of American workers is important, and
increasing retirement plan coverage and benefits is a logical and effective way for the public
and private sectors to work together with individual workers to achieve this result. The
Administration's proposal is a cost-effective beginning. We look forward to working with
Congress on its enactment and on appropriate measures to offset its revenue cost.
Table of Contents
The NEST -- A Simple Plan for Small Business . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Simplify Definition of Highly Compensated Employee and
Repeal the Family Aggregation Rule . . . . . . . . . . . . . . . . . . . . . . . . . . ..
9
Plans Maintained by Self-Employed Individuals. . . . . . . . . . . . . . . . . . . . . . . . .. 11
Substantial Owner Rules Relating to Plan Terminations ... . . . . . . . . . . . . . . . . . . 12
Simplified Nondiscrimination Testing for 401(k) Plans. . . . . . . . . . . . . . . . . . . . .. 14
401(k) Plans for Tax-Exempt Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Distributions Under Rural Cooperative 401(k) Plans . . . . . . . . . . . . . . . . . . . . . . . . 18
Repeal of Minimum Participation Rule for Defined Contribution Plans . . . . . . . . . . . , 19
Definition of Leased Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Repeal of Slower Vesting Schedule for Multiemployer Plans . . . . . . . . . . . . . . . . .. 22
Partial Termination Rules for Multiemployer Plans . . . . . . . . . . . . . . . . . . . . . . .. 23
Deduction and Actuarial Valuation Rules for Multiemployer Plans . . . . . . . . . . . . . . . 25
Combined Plan Limit on Contributions and Benefits . . . . . . . . . . . . . . . . . . . . . .. 27
Simplified Contribution and Benefit Limits for
Governmental Plans and Multiemployer Plans . . . . . . . . . . . . . . . . . . . . . . . 29
Excess Benefit Plans of Governments and Tax-Exempt Organizations . . . . . . . . . . . . . 31
Commencement of Minimum Distributions Before Retirement . . . . . . . . . . . . . . . .,
33
Simplify Taxation of Annuity Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Uniform Information Reporting Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 36
ERISA Summary Plan Description Filing Requirements .... : . . . . . . . . . . . . . . .. 37
PBGC Missing Participant Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 38
Elimination of Half-Year Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Disabled Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Reversions for Government Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Church Plan Status Under ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Date for Adoption of Plan Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
THE NEST -- A SIl\1PLE PLAN FOR SMALL BUSINESS
Current Law
Under current law, an individual may contribute up to the lesser of $2,000 or the
amount of the individual's compensation (wages and self-employment income) to an
individual retirement arrangement (IRA)l each year. (The dollar limit is $2,250 if the
individual's spouse has no compensation.) These contributions are fully deductible only if
the individual (and spouse, if any) is not an active participant in an employer-sponsored
retirement plan or has adjusted gross income (AGI) no greater than $40,000 for a married
taxpayer filing a joint tax return, $25,000 for a single taxpayer, or $0 for a married taxpayer
filing a separate return. Once AGI exceeds these thresholds, the deduction begins to be
phased out, so that the allowable deduction is zero for a married taxpayer filing a joint
return, a single taxpayer, and a married taxpayer filing a separate return once AGI reaches
$50,000, $35,000, and $10,000, respectively. To the extent that an individual is not eligible
for deductible IRA contributions, he or she may make nondeductible IRA contributions (up to
the contribution limit).
The earnings on IRA account balances are not included in income until they are
withdrawn. Withdrawals from an IRA (other than withdrawals of nondeductible
contributions) are includible in income, and must begin by age 70 112. Amounts withdrawn
before age 59 112 are generally subject to an additional 10% tax. The additional tax does not
apply to distributions upon the death or disability of the taxpayer or withdrawals in the form
of substantially equal periodic payments over the life (or life expectancy) of the IRA owner
or over the joint lives (or life expectancies) of the IRA owner and his or her beneficiary.
Simplified employee pensions (SEPs) and, for employers with 25 or fewer employees,
salary reduction SEPs (SARSEPs), are employer-sponsored plans under which employer
contributions and, in the case of SARSEPs, employee-elected salary reduction contributions
are made to IRAs established by employees. An employer that adopts a SEP must contribute
to the SEP for every employee who has attained age 21, has worked for the employer during
at least three of the immediately preceding five years, and is paid at least $400 (for 1995, as
adjusted for cost of living) by the employer for the year. Thus, for example, an employer
would have to make a SEP contribution for an employee who worked for the employer one
hour per year in the preceding three years and worked 40 hours (and earned $400) in the
current year, if the employer was making contributions for any other employee for the year.
SEPs do not allow employees to make elective contributions through salary reduction.
1 An individual retirement arrangement (IRA) may be an individual retirement account or
an individual retirement annuity. An individual retirement account must generally be a trust.
However, a custodial account generally is treated as a trust if the custodian is a bank (or
other person approved by the IRS) and the custodial account meets all of the requirements
that a trust must meet.
SARSEPs allow employees to make elective contributions, but cannot provide for
employer matching contributions. SARSEPs are available only to for-profit employers that
had 25 or fewer employees at all times during the preceding year. In addition, special
eligibility and nondiscrimination rules apply to SARSEPs. If at least 50% of the eligible
employees do not choose to make elective contributions to a SARSEP in a year, then no
employee can make elective contributions. An employer with 25 or fewer employees may
fall below the 50% threshold (and out of SARSEP eligibility) from year to year.
SARSEPs are subject to the top-heavy rules. A SARSEP is considered top-heavy if
the aggregate accounts of key employees in the plan exceed 60% of the aggregate accounts of
all employees in the plan. If a SARSEP is top-heavy and any key employee of the employer
makes elective contributions of at least 3 % of pay, then the employer must make minimum
contributions of 3 % of pay for all non-key employees -- even if those non-key employees
also make elective contributions of 3 % of pay.
Reasons for Change
The tax-favored employer retirement plans currently available under the Internal
Revenue Code (the "Code") have not been sufficiently successful in attracting small
employers. In 1993, for example, only 24% of full-time workers in private firms with fewer
than 100 employees were covered by employer retirement plans. In contrast, 73 % of fulltime workers in firms with 1,000 or more workers were covered.
The administrative cost and complexity associated with traditional qualified retirement
plans often discourage small employers from sponsoring these plans. For employers with
few employees, the cost of maintaining the plan may even exceed the benefits provided to
employees. As a result, pension coverage of employees of small employers is significantly
lower than the pension coverage of employees of larger employers.
SEPs and SARSEPs, which were designed for small employers, are perceived by
many employers as overly complicated and impractical. The nondiscrimination and
eligibility rules applicable to SARSEPs make it difficult for an eligible employer to maintain
a SARSEP on an ongoing basis. An eligible employer cannot encourage employees to make
elective contributions by offering to match employee contributions dollar-for-dollar or
otherwise. (An employer match is a strong incentive for employees to contribute to a
retirement plan.)
The inability to offer matching contributions also makes it difficult for the employer
to satisfy the SARSEP nondiscrimination test. Under the SARSEP nondiscrimination test,
elective contributions for any highly compensated employee are limited to 125 % of the
average elective contributions for all nonhighly compensated employees for the year. Thus,
highly compensated employees are limited to very low levels of elective contributions unless
other employees make significant elective contributions -- which they are less likely to make
without the incentive of a matching contribution. Concerns have also been raised that, where
-2-
SEPs and SARSEPs are used, there may be significant noncompliance with the statutory
requirements.
Proposal
The proposal would provide a new, simple retirement plan for employers with 100 or
fewer employees. The new plan would be known as the National Employee Savings Trust,
or "NEST."
The NEST would operate through individual IRA accounts for employees, and would
incorporate design-based nondiscrimination safe harbors similar to those the Administration is
proposing for 401(k) plans. Like other IRA accounts, investment in NEST accounts would
be directed by each employee. By eliminating or greatly simplifying many of the rules that
apply to other qualified retirement plans, including 40l(k) plans, the NEST would remove
the key obstacles that currently deter many small employers from setting up retirement plans.
The current SEP and SARSEP rules would not be eliminated or modified, but would remain
in place.
Funding Through [RAs
New plan would use IRAs as the funding vehicle: All employee and employer
contributions to NESTs would be made to IRAs, and the IRA rules would govern except
where specified otherwise.
Initial use of specific financial institution: In order to simplify plan administration for
employers, an employer could, without fiduciary exposure, require that all of its participating
employees use a designated financial institution's IRAs as the recipient of NEST
contributions -- but only if participants were notified in writing that the contributions could
be moved (in a trustee-to-trustee transfer) without penalty to another IRA at any time. This
notification could be incorporated into the annual disclosure to employees regarding the
NEST (described below) or could be provided separately.
Employer Eligibility
100 employee limit: Any employer, including a tax-exempt organization or
government, would be eligible to make a NEST program available to its employees in a
given year if the employer had no more than 100 employees in the prior year. For this
purpose, employees would be counted only if they had at least $5,000 of compensation (as
reported on Form W-2) from the employer. The "employer" would be determined on a
"controlled group" basis (i.e., aggregating 80% affiliates).
Two-year grace period: If an eligible employer established a NEST program and,
subsequently, the number of employees grew to exceed 100 (based on the prior year), the
employer would continue to be eligible for the current and subsequent year. After that two- 3-
year "grace period," the employer would cease to be eligible unless the employee count again
dropped to 100 or fewer (based on the prior year).
For example, assume Company A has 90 employees in Year 1, 95 employees in Year
2, 101 employees in Year 3, 103 employees in Year 4, 102 employees in Year 5, and 99
employees in Year 6. Company A would be eligible to make a NEST program available to
its employees in Years 2 and 3, based on having had no more than 100 employees in the
prior year, and in Years 4 and 5, based on the two-year grace period. Company A would
lose its eligibility for Year 6 (because it had more than 100 employees in Year 5 and was no
longer in the grace period relating to Year 2), but would be eligible again for Year 7 (based
on having had no more than 100 employees in Year 6). No NEST contributions would be
permitted for a year in which the employer was not eligible.
Acquisitions: If an eligible employer ceased to meet the lOa-employee test because it
was acquired by another entity, only the acquired (previously e1igible) entity would continue
to be eligible during the two-year grace period.
Employee Eligibility to Participate and Vesting
Two-year eligibility: Each employee who attained age 21 and completed two
consecutive years of service with the employer would be eligible to participate. A "year of
service" would be defined as a calendar year during which an employee's W-2 compensation
from the employer was at least $5,000. An employer could choose to allow all employees to
participate earlier than upon attainment of age 21 and completion of two years of service.
Participating employees who drop below the $5,000 threshold or whose employment
terminates mid-year: Once an employee became eligible, the employee would be entitled to
make elective contributions and receive any employer matching contributions even if, during
the current calendar year, the employee's W-2 compensation from the employer was less
than $5,000. However, no nonelective employer contributions would be required unless the
employee had at least $5, 000 of compensation from the employer for the calendar year. All
employees with at least $5, 000 of compensation for the year would receive a nonelective
employer contribution for that year.
PortabilityllOO% vesting: All contributions would be 100% vested immediately and
would be fully portable, even during the two-year holding period (described below).
No Nondiscrimination Testing
Nondiscrimination tests not applicable: NESTs would not be subject to:
•
the top-heavy rules;
-4-
•
the nondiscrimination rules that apply to elective contributions under a 401(k) plan
(the "ADP" test);
•
the nondiscrimination rules that apply to matching contributions (the "ACP" test); or
•
the nondiscrimination rules that apply to SEPs and SARSEPs. (Thus, there would be
no 50 % participation requirement, no 125 % test, and no social security integration.)
HCE determinations irrelevant: Because NESTs would not be subject to any
nondiscrimination tests, an employer that offers a NEST would not be required to determine
which employees are "highly compensated employees. "
Contributions
NESTs would receive nonelective employer contributions and, depending on the
option selected by the employer, elective contributions and employer matching contributions.
Design-based safe harbors: In lieu of top-heavy and nondiscrimination rules, every
NEST would be required to choose annually to satisfy one of the following two design-based
safe harbors (generally similar to the Administration's proposed 401(k) safe harbors):
(1)
The employer makes nonelective contributions of at least 3 % of compensation 2 for
each eligible employee. The employer may choose to allow employee elective
contributions in addition to the employer nonelective contributions. If the employer
chose to allow employee elective contributions, the employer could also choose to
make matching contributions. However, the match may be no greater than 100% of
the first 5 % of employee compensation, and employees must be provided notice of the
matching contributions as part of the annual disclosure described below.
(2)
The employer makes nonelective contributions of at least 1 % of compensation for
each eligible employee and allows employee elective contributions. The employer
must provide a 100% matching contribution on the employee's elective contributions
up to 3 % of compensation and a matching contribution of at least 50% (and no
greater than 100 %) on the next 2 % of employees' elective contributions. The
employer may not provide any other matching formula, including a more generous
The $150,000 compensation limit that applies for purposes of the deduction and
contribution limits for qualified plans, SEPs, and SARSEPs would apply for purposes of
determining safe harbor and other contributions. However, for this purpose, a simplified
definition of compensation would apply -- compensation would be determined before elective
contributions were subtracted from compensation. Similarly, the definition of
"compensation" would be simplified for a self-employed individual participating in a NEST
by not subtracting deductible contributions or the self-employment tax deduction.
2
-5-
formula. Although this safe harbor would require a 1 % nonelective employer
contribution, the top-heavy rules would not apply, as noted above. This means that
those employers that otherwise would have been required to make a 3 % top-heavy
minimum contribution for each non-key employee would have to make only a 1 %
nonelective contribution. In addition, all employers that offer a NEST would be
relieved of the requirement to test the NEST for top-heavy status.
Employee elective contributions: The limit on employees' annual elective
contributions (i.e., salary reduction contributions) to a NEST (currently $9,240 in the case of
elective contributions to 401(k) plans) would be $5,000. The limit would remain at $5,000
until the section 402(g) limit exceeded $10,000; then, the NEST limit would be indexed to
(and remain at) one half of the section 402(g) limit for each year.
Employer matching contributions: The limit on employer matching contributions
depends on which of the two design-based safe harbors the employer chooses for the year.
Under the first safe harbor, the "3%-nonelective-contributions safe harbor," no employer
matching contributions are required, but they are permitted. However, if the employer
selects the "matching contribution safe harbor" (the second safe harbor), employer matching
contributions are required. All employer matching contributions are limited in accordance
with the matching formula described above; other formulas and additional matching
contributions are not permitted.
Nonelective employer contributions: A NEST could provide for discretionary
nonelective employer contributions in excess of the safe harbor minimums (1 % or 3 %) from
year to year. Any such nonelective employer contributions in excess of the 1 % or 3 %
minimums would have to be an equal percentage of compensation for all eligible employees.
Total nonelective contributions (both the safe harbor minimums and discretionary
contributions) could not exceed 5 % of compensation.
Section 404 deduction limit not a:g:glicable: The employer would be permitted to
deduct the elective, matching, and nonelective contributions described above (within the
limits described) without regard to any separate percent-of-compensation limitation (i.e.,
there would be no limit comparable to that imposed by section 404(a)(3)).
Timing of Contributions
Quarterly employer contributions: Employer matching contributions would be
required to be deposited in employees' accounts (IRAs) no less frequently than quarterly.
Employer nonelective contributions would also be required to be deposited no less frequently
than quarterly -- but only for employees who were paid at least $5,000 as of the end of the
quarter (measured from January 1 of that year). If an employee did not reach the $5,000
threshold until the second, third, or fourth calendar quarter, the employer would be required,
after the threshold had been reached, to make nonelective contributions for both the current
-6-
and all preceding calendar quarters in the year. Contributions for any calendar quarter
would be required to be deposited within 45 days after the end of that quarter.
Distributions
Two-year holding period: NEST contributions (and attributable earnings) would be
subject to a two-year holding period beginning on the date of contribution. 3 This two-year
restriction on withdrawals would apply whether or not the participant had incurred a
termination of employment.
Otherwise, distributions from NEST lRAs would be subject to the same rules as
distributions from lRAs generally (as distinguished from 40l(k) or other qualified plans) -no other restrictions would be imposed, but an additional 10% tax would apply to
distributions before age 59 1/2. During the two-year holding period, contributions and
earnings could be rolled over to another IRA -- but the original two-year holding period
would continue to apply to the rolled-over amounts in the recipient IRA.
Rollovers: NESTs could originate and receive transfers from other lRAs (whether
NESTs, SEPs, SARSEPs, or other lRAs). NESTs could also receive rollovers from
qualified plans. All movement of NEST funds to other lRAs, whether or not during the twoyear holding period, would be required to be carried out in the form of a trustee-to-trustee
transfer. Any amounts rolled over to a NEST would not be subject to the two-year holding
period unless they were amounts from a NEST for which the two-year holding period had
not yet elapsed.
Miscellaneous
Other plans maintained by the employer: An employer that maintains a NEST could
maintain additional tax-qualified plans, other than a plan that allows for elective contributions
or matching contributions. For example, if the employer maintained a 401(k), salary
reduction or matching 403(b), or SARSEP plan and wished to establish a NEST, it would
have to freeze (but not terminate) the 40l(k), 403(b), or SARSEP plan. However, an
employer could maintain both a NEST and a defined benefit plan.
If an employer did maintain another plan, compliance of the NEST with the NEST
requirements would be determined without regard to the other plan. The other plan would
have to take the NEST into account only for purposes of the section 404 deduction limits and
the section 415 contribution and benefits limitations. The top-heavy rules and
nondiscrimination rules, for example, would apply to the other plan without regard to the
NEST; the NEST would not affect the compliance of the other plan with these rules.
For purposes of this rule, a contribution made on any date within a calendar year
would be deemed to be made on the first day of that year.
3
-7-
If an employee who participates in a NEST also participates in a separate employer's
401(k), 403(b), or SARSEP plan, the section 402(g) elective deferral limit for that employee
would be coordinated. Elective contributions to the NEST would have to be taken into
account in determining whether the $9,240 or $9,500 limit had been exceeded under the
other plan, but any elective contributions made to the other plan would not be taken into
account in determining whether the $5,000 NEST limit had been exceeded.
Coordination with IRA deduction rules: NESTs would be treated as qualified plans
for purposes of the IRA deduction phase-out rules. Thus, employees who participated in a
NEST and had AGI in excess of the applicable thresholds would be phased out of making
deductible IRA contributions. This is the same rule that currently applies to SEPs and
SARSEPs. On the other hand, the $2,000 (or $2,250) IRA contribution limit would not
apply to NEST contributions.
IRS model form: The IRS would be directed to issue a model NEST document.
Vendors and employers would have the option of using their own documents, however.
Reporting: An employer maintaining a NEST would not be subject to any reporting
requirements (e.g., Form 5500 filing). However, the NEST trustee or custodian would be
required to report NEST contributions on Form 5498, on which IRA contributions are
reported.
Disclosure: Employees would be required to be notified annually in writing of their
rights under the plan, including, for example, the right to a matching contribution.
Similarly, if an employer wanted to switch between safe harbor formulas, the employer
would be required to notify eligible employees which formula would be used for a year no
later than a reasonable time before the employer required employees to make their elections
for the year.
Calendar plan year: The calendar year would be the plan year for all NESTs and
would have to be used in applying all NEST contribution limits, eligibility, and other NEST
requirements.
These provisions would be effective for years beginning after December 31, 1996.
Revenue Estimate (in millions of dollars)
Fiscal Years
NEST: Simple plan for
small business
o
o
-58
-8-
-113
-158
-176
-505
SIMPLIFY DEFlNITION OF HIGHLY COMPENSATED EMPLOYEE AND
REPEAL THE FAMILY AGGREGATION RULES
Current Law
Definition of highly compensated employee. A qualified employer retirement plan
must satisfy various nondiscrimination tests to ensure that it does not discriminate in favor of
"highly compensated employees." Thus, all of the nondiscrimination tests require the
employer to identify its "highly compensated employees." This term is currently defined by
reference to a test with seven major parts. Under this definition, an employee is treated as a
highly compensated employee for the current year, if, at any time during the current year or
the preceding year, the employee:
(1)
owned more than 5 % of the employer,
(2)
received more than $100,000 (as indexed for 1995) in annual compensation
from the employer,
(3)
received more than $66,000 (as indexed for 1995) in annual compensation
from the employer and was one of the top-paid 20 % of employees during the
same year, or
(4)
was an officer of the employer who received compensation greater than
$60,000 (as indexed for 1995).
These four rules are modified by three additional rules.
(5)
An employee described in any of the last three categories for the current year
but not the preceding year is treated as a highly compensated employee for the
current year only if he or she was among the 100 highest paid employees for
that year.
(6)
No more than 50 employees or, if fewer, the greater of three employees or
10% of employees are treated as officers.
(7)
If no officer has compensation in excess of $60,000 (for 1995) for a year, then
the highest paid officer of the employer for the year is treated as a highly
compensated employee.
Family aggregation. If an employee is a family member of either a more-than-5%
owner of the employer or one of the employer's ten highest-paid highly compensated
employees, then any compensation paid to the family member and any contribution or benefit
under the plan on behalf of the family member is aggregated with the compensation paid and
contributions or benefits on behalf of the highly compensated employee. Therefore, the
-9-
highly compensated employee and the family member(s) are treated as a single highly
compensated employee. For purposes of this rule, an employee's "family member" is
generally a spouse, parent, grandparent, child, or grandchild (or the spouse of a parent,
grandparent, child, or grandchild).
A similar family aggregation rule applies with respect to the $150,000 annual limit on
the amount of compensation that may be taken into account under a qualified plan.
(However, under these provisions, only the highly compensated employee's spouse and
children or grandchildren under age 19 are aggregated.)
Reasons for Chan&e
The definition of highly compensated employee is not only complicated, it classifies
many middle-income workers as "highly compensated employees" who are then prohibited
from receiving better benefits than others.
The family aggregation rules greatly complicate the application of the
nondiscrimination tests, particularly for family-owned or operated businesses, and may
unfairly reduce retirement benefits for the family members who are not highly compensated
employees.
Proposal
Definition of highly compensated employee. The current seven-part test would be
replaced by a simplified two-part test: an employee would be a "highly compensated
employee" for the current year only if the employee owned more than 5 % of the employer
during the current or preceding year or had compensation from the employer of more than
$80,000 (indexed annually for cost of living) during the preceding year. This dollar
threshold would mean that many middle-income Americans no longer would be subject to
nondiscrimination restrictions.
Family aggregation. The family aggregation rules would be repealed.
These provisions would be effective for years beginning after December 31, 1995.
Revenue Estimate (in mil1ions of dollars)
Fiscal Years
Definition of HCE/repeal
family aggregation
o
3
5
- 10 -
5
6
7
26
PLANS MAINTAINED BY SELF-EMPLOYED INDIVIDUALS
Current Law
Prior to the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), numerous
special rules applied to qualified retirement plans that covered self-employed individuals.
Almost all of these special rules were repealed by TEFRA. However, special aggregation
rules that do not apply to other qualified retirement plans still apply to qualified plans that
cover an "owner-employee" (i.e., a sole proprietor of an unincorporated trade or business or
a more-than-10% partner of a partnership). These aggregation rules generally require
affected plans to be treated as a single plan and affected employers to be treated as a single
employer. For example, under one of the special rules, if an owner-employee controls more
than one trade or business, then any qualified plans maintained with respect to those trades or
businesses must be treated as a single plan and all employees of those trades or business must
be treated as employed by a single employer.
Reasons for Chanee
The special aggregation rules afford plan participants little, if any, protection because
they are largely duplicative of the general aggregation rules that apply to all qualified
employer plans, including plans that cover self-employed individuals.
Proposal
The special aggregation rules for qualified plans that cover owner-employees would
be repealed. As under current law, these plans would be subject to the general plan
aggregation rules that apply to tax-qualified employer retirement plans.
This provision would be effective for years beginning after December 31, 1995.
Revenue Estimate (in millions of dol1ars)
Fiscal Years
1995
Plans covering selfemployed individuals
0
1996
1997
1998
1999
-2
-4
-4
-4
- 11 -
2000
Total
-5
-19
SUBSTANTIAL OWNER RULES RELATING TO PLAN TERMINATIONS
Current Law
The Employee Retirement Income Security Act of 1974, as amended (ERISA)
contains very complicated rules for determining the benefits guaranteed by the Pension
Benefit Guaranty Corporation (PBGC) for an individual who owns more than 10 percent of a
business (a "substantial owner") and who is a participant in the business's terminating plan.
These rules were designed to prevent a substantial owner from establishing a plan,
underfunding it, and terminating it in order to receive benefits from the PBGC. Under the
rules, the PBGC guarantee with respect to a participant who is not a substantial owner is
generally phased in over five years from the date of the plan's adoption or amendment.
However, for a substantial owner, the guarantee is generally phased in over 30 years from
the date the substantial owner begins participation in the plan. The substantial owner's
benefit under each amendment within the 30 years before plan termination is separately
phased in. In addition, a substantial owner's guaranteed benefit cannot exceed twice the
amount guaranteed under the original plan provisions.
Reasons for Chanee
The substantial owner phase-in rules are complex and difficult to apply because of the
need to obtain plan documents going back up to 30 years. The reduced guarantee for
employees with less than a majority ownership interest penalizes employees who may have
little, if any, control over plan benefit levels or funding decisions. It also unfairly penalizes
substantial owners who granted themselves low benefits when they entered the plan.
Proposal
The same five-year phase-in that currently applies to a participant who is not a
substantial owner would apply to a substantial owner with less than a 50% ownership
interest. For a substantial owner with a 50% or more ownership interest (a "majority
owner"), the phase-in would depend on the number of years the plan has been in effect,
rather than on the number of years the owner has been a participant. Specifically, the
guaranteeable plan benefit for a majority owner would be 1/30 for each year that the plan has
been in effect. (Benefits under plan amendments would not be separately phased in.) Under
this approach, the fraction would be the same for each majority owner, eliminating the need
for separate computations based on documents that are up to 30 years old. However, a
majority owner's guaranteed benefit would be limited so that it could not be more than the
amount that would be guaranteed under the regular five-year phase-in applicable to other
participants.
These provisions would be effective for plan terminations for which notices of intent
to terminate were provided on or after the date of enactment.
- 12 -
Revenue Estimate (in millions of dollars)
Fiscal Years
1995
Substantial owner rules
* = revenue loss
1996
1997
0**
of less than $500,000
- 13 -
1998
1999
2000
*
*
*
*
SIMPLIFIED NONDISCRIMINATION TESTING FOR 401 (k) PLANS
Current Law
The actual deferral percentage (ADP) test generally applies to the elective
contributions (typically made by salary reduction) of all employees eligible to participate in a
401(k) plan. The test requires the calculation of each eligible employee's elective
contributions as a percentage of the employee's pay. The ADP test is satisfied if the plan
passes either of the following two tests: (1) the average percentage of elective contributions
for highly compensated employees does not exceed 125 % of the average percentage of
elective contributions for nonhighly compensated employees, or (2) the average percentage of
elective contributions for highly compensated employees does not exceed 200 % of the
average percentage of elective contributions for nonhighly compensated employees, and does
not exceed the percentage for nonhighly compensated employees by more than two
percentage points. The actual contribution percentage (ACP) test is almost identical to the
ADP test, but generally applies to employer matching contributions and after-tax employee
contributions under any qualified employer retirement plan.
Both the ADP test and the ACP test generally compare the average contributions for
highly compensated employees for the year to the average contributions for nonhighly
compensated employees for the same year.
When the ADP or ACP test is violated, correction is made by reducing the excess
contributions of highly compensated employees beginning with employees who have deferred
the greatest percentage of pay.
Reasons for Chan2e
The annual application of these tests, and correcting violations of these tests, can be
complicated and costly. For example, because the current year average for the nonhighly
compensated employees is not known until the end of the year, the tests commonly require
either monitoring and adjustments of contributions over the course of the year or complicated
correction procedures and information reporting after the end of the year.
The current correction method often does not affect the most highly paid of the highly
compensated employees: their contributions, as a percentage of pay, are likely to be lower
than the percentage contributions of lower-paid highly compensated employees, even if the
dollar amount of their contributions is higher. For example, if an officer makes $65,000 and
contributes $5,000 (7.7% of pay), his or her contribution would be reduced before that of a
CEO who makes $150,000 and contributes $9,000 (6% of pay). It also is usually somewhat
simpler to determine the total dollar amount contributed by an employee than to determine
what percentage of pay that dollar amount represents.
- 14 -
Proposal
Design-based safe harbors. The proposal would provide two alternative "designbased" safe harbors. If a plan were properly designed, the employer would avoid all ADP
and ACP testing. Under the first safe harbor, the employer would have to make nonelective
contributions of at least 3 % of compensation for each nonhighly compensated employee
eligible to participate in the plan. Alternatively, under the second safe harbor, the employer
would have to provide a 100% matching contribution on an employee's elective contributions
up to the first 3 % of compensation, and a matching contribution of at least 50% on the
employee's elective contributions up to the next 2 % of compensation. The second safe
harbor also would require the employer to make a nonelective contribution of at least 1 % of
compensation for each eligible nonhighly compensated employee.
A more generous matching contribution formula would also be considered to satisfy
the matching contribution safe harbor, but only if the level of matching contributions did not
increase as employee elective contributions increased and the matching contributions at every
level of compensation were at least as great as they would have been under the safe harbor
formula. However, for purposes of satisfying the matching contribution safe harbor with
respect to the ACP test (but not the ADP test), matching contributions could not be made
with respect to employee elective contributions in excess of 6 % of compensation. The safe
harbors could not be used to satisfy the ACP test with respect to after-tax employee
contributions.
Under both safe harbors, the nonelective employer contributions and the matching
employer contributions would be nonforfeitable immediately (i.e., 100% vested) and
generally could not be distributed prior to the participant's death, disability, termination of
employment, or attainment of age 59 112. In addition, each employee eligible to participate
in the plan would have to be given notice of his or her rights and obligations under the plan
within a reasonable period before the beginning of any year.
Use oj prior-year data and simplified correction procedures. The proposal would also
simplify the nondiscrimination rules for plans that chose not to use the design-based safe
harbors. First, the proposal would modify the ADP and ACP tests to require the average
contributions for highly compensated employees for the current year to be compared to the
average contributions for nonhighly compensated employees for the preceding year. For the
first plan year of a 401(k) plan, the average percentage for nonhighly compensated
employees would be deemed to be 3 % or, at the employer's election, the average percentage
for that first plan year. Second, a simplified correction method would require excess
contributions to be distributed first to those highly compensated employees who deferred the
highest dollar amount (as opposed to the highest percentage of pay) for the year. Under this
approach, the lower-paid highly compensated employees would no longer tend to bear the
brunt of the correction method.
These provisions would be effective for years beginning after December 31, 1996.
- 15 -
Revenue Estimate (in millions of dollars)
Fiscal Years
401(1<) safe harbors and
simplify nondiscrimination
rules
1995
1996
1997
1998
1999
2000
Total
0
o
-38
-69
-92
-113
-312
- 16 -
401(k) PLANS FOR TAX-EXEl\1PT ORGANIZATIONS
Current Law
Except for certain plans established before July 2, 1986, an organization exempt from
income tax is not allowed to maintain a section 401(k) plan.
Reasons for Chan~e
This rule prevents many tax-exempt organizations from offering their employees
retirement benefits on a salary reduction basis. Although tax-sheltered annuity programs can
provide similar benefits, many types of tax-exempt organizations are also precluded from
offering those programs.
Proposal
The proposal would allow organizations exempt from income tax (other than state or
local governments) and Indian tribes to maintain 401(k) plans.
This provision would be effective for years beginning after December 31, 1996.
Revenue Estimate (in millions of dollars)
Fiscal Years
Allow tax -exempt
organizations to have
401 (k)'s
1995
1996
1997
1998
1999
2000
Total
o
o
-36
-63
-71
-76
-246
- 17 -
DISTRIBUTIONS UNDER RURAL COOPERATIVE 401(k) PLANS
Current Law
Under a section 401(k) plan, distributions are generally allowed only after separation
from service, death, disability, attainment of age 59 112, or hardship. However, 401(k)
plans that qualify as "rural cooperative plans" (e.g., 401(k) plans maintained by rural
electrical cooperatives or cooperative telephone companies) are money purchase pension
plans. Therefore, in accordance with the distribution restrictions generally applicable to
pension plans, these plans cannot allow distributions on account of a participant's attainment
of age 59 112.
Reasons for Change
It is appropriate to allow 401 (k) plans maintained by rural cooperatives to permit
distributions to plan participants under the same circumstances as 401(k) plans maintained by
other employers.
Proposal
The rules governing distributions from 401(k) plans of rural cooperatives would be
conformed to those that apply to other 401(k) plans by allowing distributions after attainment
of age 59 112.
This provision would be effective for distributions after December 31, 1995.
Revenue Estimate (in miJ1ions of dollars)
Fiscal Years
Distributions under rural
cooperative 401 (k) , s
o
1
2
- 18 -
2
2
2
9
REPEAL OF MINIMUM PARTICIPATION RULE FOR
DEFINED CONTRffiUTION PLANS
Current Law
Under current law, every qualified defined benefit plan or defined contribution plan is
required to cover at least 50 employees or, in smaller companies, 40% of all employees of
the employer. In general, this rule was intended primarily to prevent an employer from
establishing individual defined benefit plans for highly compensated employees in order to
provide those employees with more favorable benefits than those provided to lower paid
employees under a separate plan. The rule prevents an employer from favoring one small
group of participants over another by, for example, covering them under two separate plans
and funding one plan better than the other.
Reasons for Change
As applied to defined contribution plans, the minimum participation rule adds
complexity for employers without delivering commensurate benefits to the system.
•
The 50-employee/40% rule currently acts as a largely redundant backstop to the
nondiscrimination rules designed to prevent qualified retirement plans from unduly
favoring the top group of employees. Since 1986, when the minimum participation
rule was enacted, other nondiscrimination provisions have further limited the potential
for discriminatory practices that originally caused the minimum participation rule to
be applied to plans other than individual defined benefit plans.
•
Defined contribution plans are generally fully funded and, therefore, there is no risk
that an employer will favor participants in one plan over participants in another by
providing more favorable funding.
Thus, the abuses intended to be addressed by the minimum participation requirement
are unlikely to arise in the context of defined contribution plans. This requirement adds
unnecessary administrative burden and complexity with respect to these plans.
Proposal
The minimum participation rule would be repealed for defined contribution plans.
This provision would be effective for plan years beginning after December 31, 1995.
- 19 -
Revenue Estimate (in millions of do1larsl
Fiscal Years
Repeal minimum
participation rule for DC
plans
1995
1996
1997
1998
1999
2000
Total
o
-4
-6
-6
-6
-6
-28
- 20 -
DEFINITION OF LEASED EMPLOYEE
Current Law
Individuals who are "leased employees" of a service recipient are considered to be
employees of that recipient for all qualified retirement plan purposes. A "leased employee"
is any person who is not a common-law employee of the recipient and who provides services
to the recipient if (1) the services are provided pursuant to an agreement between the
recipient and the employer of the service provider, (2) the person has performed the services
for the recipient on a substantially full-time basis for at least one year, and (3) the services
are of a type historically performed, in the business field of the recipient, by employees.
Reasons for Chanl:e
The historically performed standard produces many unintended and inappropriate
results. For example, under this standard, employees and partners of a law firm could be
leased employees of a client of the firm if they work a sufficient number of hours for the
client and it is not unusual for employers in the client's business to have in-house counsel.
Proposal
The "historically performed" test would be replaced by a test that considers whether
the services performed for the recipient are performed under significant direction or control
by the recipient.
This provision would generally be effective for years beginning after December 31,
1995. The provision would not apply to relationships that have been previously determined
by an IRS ruling not to involve leased employees.
Revenue Estimate (in millions of dollars)
Fiscal Years
Total
1995
Treatment of leased
employees
o
-1
-2
- 21 -
-2
-2
-2
-9
REPEAL OF SLOWER VESTING SCHEDULE FOR MULTIE:MPLOYER PLANS
Current Law
The accrued benefits of a collectively bargained employee under a multiemployer
pension plan are not currently required to become nonforfeitable (i.e., "vested ") until the
employee has completed 10 years of service. If the employee's employment terminates
before then, all benefits can be lost. Accrued benefits of all other employees (i.e.,
employees under all non-multiemployer plans and any noncollectively bargained employees
under a multiemployer plan) must vest after five years of service, or after seven years if
partial vesting begins after three years.
Reasons for Chan2e
The lO-year vesting schedule for multiemployer plans adds to the complexity of the
pension law by providing different vesting schedules for different types of plans and for
different people covered by the same plan. In addition, conforming the multiemployer plan
vesting rules to the vesting rules for other plans would ensure that workers covered by
multiemployer plans would become entitled to pension benefits on the same basis as workers
covered by other plans.
Proposal
The special la-year vesting rule applicable to multiemployer plans would be repealed.
This provision would be effective for plan years beginning on or after the earlier of
(1) the later of January 1, 1996, or the date on which the last of the collective bargaining
agreements pursuant to which the plan is maintained terminates, or (2) January 1, 1998, with
respect to participants who have at least one hour of service after the effective date.
Revenue Estimate (in millions of dollars)
Fiscal Years
Elimination of special
vesting schedule for
multiemployer plans
a
o
-33
- 22 -
-48
-40
-25
-146
PARTIAL TERMINATION RULES FOR :MULTIEMPLOYER PLANS
Current Law
When a qualified employer retirement plan is terminated, all plan participants are
required to become 100% vested in their accrued benefits to the extent those benefits are
funded. In order to prevent an employer from evading this rule simply by amending the plan
to exclude nonvested employees or by laying off nonvested employees before terminating the
plan, a qualified employer retirement plan must also provide that, upon a "partial
termination," all affected employees must become 100% vested in their benefits accrued to
the date of the termination, to the extent the benefits are funded.
Whether a partial termination has occurred in a particular situation is generally based
on the specific facts and circumstances of that situation, including the exclusion from the
plan of a group of employees who have previously been covered by the plan, by reason of a
plan amendment or severance by the employer. In addition, if a defined benefit plan stops or
reduces future benefit accruals under the plan, a partial termination is deemed to occur if, as
a result, a potential reversion of plan assets to the employer is created or increased.
Reasons for Chanee
Over the years, court decisions have left unanswered many key questions as to how to
apply the partial termination rules. Accordingly, applying the rules can often be difficult and
uncertain, especially for multiemployer plans. For example, multiemployer plans experience
frequent fluctuations in participation levels caused by the commencement and completion of
projects that involve significant numbers of union members. Many of these terminated
participants are soon rehired for another project that resumes their active coverage under the
plan. In addition, it is common for participants leaving one multiemployer plan's coverage
to maintain service credit under a reciprocal agreement if they move to the coverage of
another plan sponsored by the same union. As a result, these participants do not suffer the
interruption of their progress along the plan's vesting schedule that ordinarily occurs when an
employee stops being covered by a plan. Given these factors, and the related proposal to
require multiemployer plans to vest participants after five (instead of the current 10) years of
service, the difficulties associated with applying the partial termination rules to
multiemployer plans outweigh the benefits.
Proposal
The requirement that affected participants become 100% vested in their accrued
benefits (to the extent funded) upon the partial termination of a qualified employer retirement
plan would be repealed with respect to multiemployer plans.
This proposal would be effective for partial terminations that begin on or after
January 1, 1996.
- 23 -
Revenue Estimate (in millions of dollars)
Fiscal Years
Repeal partial termination
rules for multiemployer
1995
1996
1997
1998
1999
2000
Total
*
*
*
*
*
*
*
plans
*
= revenue loss of less than $500,000
- 24 -
DEDUCTION AND ACTUARIAL VALUATION RULES FOR
:MULTIEMPLOYER PLANS
Current Law
An employer's annual deduction for contributions to a defined benefit plan is
generally limited to the amount by which 150% of the plan's current liability (or, if less,
100% of the plan's accrued liability) exceeds the value of the plan's assets. The 150%-ofcurrent-liability limit restricts the extent to which an employer can deduct contributions for
liabilities that have not yet accrued.
Defined benefit plans are required to have an actuarial valuation no less frequently
than ann uall y .
Reasons for Chan2e
An employer has little, if any, incentive to make "excess" contributions to a
multiemployer plan. The amount an employer contributes to a multiemployer plan is fixed
by the collective bargaining agreement, and a particular employer's contributions are not set
aside to pay benefits solely to the employees of that employer. Moreover, no reversions are
permitted from multiemployer plans.
Proposal
Because the 150% limit on deductible contributions unnecessarily complicates the
deduction rules for multiemployer plans, the 150 % limit would be eliminated for those plans.
Therefore, the annual deduction for contributions to a multiemployer plan would be limited
to the amount by which the plan's accrued liability exceeds the value of the plan's assets.
Under the proposal, actuarial valuations would be required no less frequently than
every three years for multiemployer plans.
These provisions would be effective for years beginning after December 31, 1995.
- 25 -
Revenue Estimate (in millions of dollars)
Fiscal Years
1995
Full funding limitation for
multiemployer
plans/triennial valuations
o
1996
-6
1997
1998
1999
2000
Total
-8
-8
-8
-8
-38
- 26 -
COl\1BINED PLAN LIMIT ON CONTRIBUTIONS AND BENEFITS
Current Law
An employee who participates in a qualified defined benefit plan and a qualified
defined contribution plan of the same employer must currently satisfy a combined plan limit.
This limit is satisfied if the sum of the 11 defined benefit fraction 11 and the "defined
contribution fraction" is no greater than 1.0.
The defined benefit fraction measures the portion of the maximum permitted defined
benefit that the employee actually uses. The numerator is the projected normal retirement
benefit, and the denominator is generally the lesser of 125 % of the dollar limitation for the
year ($120,000 for 1995), or 140% of the employee's average compensation for the three
years of employment in which the employee's average compensation was highest.
The defined contribution fraction measures the portion that the employee actually uses
of the maximum permitted contributions to a defined contribution plan for the employee's
entire career with the employer. The numerator is generally the total of the contributions
and forfeitures allocated to the employee's account for each of the employee's years of
service with the employer. The denominator is the sum of a calculated value for each of
those years of service. The calculated value is the lesser of 125 % of the dollar limitation for
that year of service ($30,000 for 1995), or 35 % of the participant's compensation. Because
of the historical nature of this fraction, its computation is extremely cumbersome and
requires the retention of various data for an employee's entire career.
The combined plan limit is not the only Code provision that safeguards against an
individual accruing excessive retirement benefits on a tax-favored basis. There are maximum
limits for both defined benefit and defined contribution plans. In addition, a 15% "excess
distribution" penalty was enacted in 1986 to achieve many of the same goals as the combined
plan limit. A distribution is generally considered an "excess distribution" to the extent all
distributions to an individual from all of the individual's qualified employer plans and IRAs
exceed $150,000 during a calendar year. The limit is $750,000 for a lump sum distribution.
Excess distributions made after death are subject to an additional estate tax of 15 %. Other
rules also protect against excessive benefits.
Reasons for Change
Because other provisions of the Code, such as the excise tax on excess distributions,
go far toward ensuring that an individual cannot accrue excessive retirement benefits on a
tax-favored basis, the complexity of the combined plan limit is not justified.
Proposal
The combined plan limit (Code section 415(e» would be repealed.
This provision would be effective for years beginning after December 31, 1995.
- 27 -
Revenue Estimate (in millions of dollars)
Fiscal Years
Repeal 415(e) combined
limit
1995
1996
1997
1998
1999
2000
Total
o
-100
-147
-153
-159
-165
-724
- 28 -
SIMPLIFIED CONTRIBUTION AND BENEFIT LIMITS FOR
GOVERNMENTAL PLANS AND MULTIEMPLOYER PLANS
Current Law
Annual additions to a defined contribution plan for any participant are limited to the
lesser of $30,000 (for 1995) or 25 % of compensation. Annual benefits payable under a
defined benefit plan are limited to the lesser of $120,000 (for 1995) or 100% of "three-yearhigh average compensation." If benefits under a defined benefit plan begin before social
security retirement age, the dollar limit must be reduced. Reductions in the dollar or
percentage limit may also be required if the employee has fewer than 10 years of plan
participation or service. Certain special rules apply to governmental plans.
Reasons for Chan&e
These qualified plan limitations are uniquely burdensome for governmental plans,
which have long-established benefits structures and practices that may conflict with the
limitations. In addition, some state constitutions may significantly restrict the ability to make
the changes needed to conform the plans to these limitations.
These limitations also present problems for many multiemployer plans. These plans
typically base benefits on years of credited service, not on a participant's compensation. In
addition, the 100%-of-compensation limit is based on an employee's average compensation
for the three highest consecutive years. This rule often produces an artificially low limit for
employees in certain industries, such as building and construction, where wages vary
significantly from year to year.
Proposal
The rules for governmental plans and multiemployer plans would be modified to
eliminate the 100%-of-compensation limit (but not the $120,000 limit) for such plans, and to
exempt certain survivor and disability benefits from the adjustments for early commencement
and for participation and service of less than 10 years. In addition, certain employee salary
reduction contributions could be counted as "compensation" for purposes of applying the
limitations on benefits and contributions. To the extent that governmental employers have
previously made elections that would prevent them from utilizing these simplification
provisions, the proposal would allow those employers to revoke their elections.
These provisions would be effective for years beginning after December 31, 1995.
Governmental plans would be treated as if in compliance with the requirements of section
415 for years beginning before January 1, 1996.
- 29 -
Revenue Estimate (in millions of dollars)
Fiscal Years
1995
1996
1997
1998
1999
2000
Total
Simplify 415 limits for
governmental plans
0
-2
-3
-3
-3
-3
-14
Simplify 415 limits for
multiemployer plans
0
-3
-5
-5
-6
-6
-25
- 30 -
EXCESS BENEFIT PLANS OF GOVERNMENTS
AND TAX-EXEMPT ORGANIZATIONS
Current Law
The amount of reasonable compensation that may be provided to an employee under a
nonqualified deferred compensation arrangement maintained by a for-profit organization
generally is not subject to any limitation. In addition, such deferred compensation is not
taxable to the employee until it is paid or otherwise made available to the employee to draw
upon at any time.
With few exceptions, nonqualified deferred compensation arrangements maintained by
state and local governments and tax-exempt organizations are subject to special, more
restrictive rules under section 457 of the Code. First, the amount deferred for any
participant under such arrangements generally must be limited to $7,500 per year. Second,
if this dollar limit and other restrictions are not satisfied, the deferred compensation is taxed
to the participant in the first taxable year in which the compensation is not subject to a
substantial risk of forfeiture, even if the compensation is not paid or otherwise made
available to the participant until a later date.
An "excess benefit plan" is a nonqualified deferred compensation plan maintained by
an employer solely for the purpose of providing benefits for certain employees in excess of
the limitations on annual contributions and benefits imposed by section 415 of the Code (i. e.,
the lesser of $30,000 or 25 % of compensation for a defined contribution plan, and the lesser
of $120,000 or 100% of compensation for a defined benefit plan). If an employee's qualified
plan contributions or benefits exceed these limits, an excess benefit plan may provide the
excess contributions or benefits on a nonqualified basis.
Reasons for Change
An excess benefit plan provides to certain employees -- those whose contributions or
benefits are reduced by the section 415 limits -- contributions or benefits that are already
provided to other employees under a qualified plan. Even though an excess benefit plan does
not provide management employees with disproportionately higher benefits than those
provided to lower paid employees, the restrictions of section 457 still apply to such a plan if
it is maintained by a state and local government or tax-exempt organization. These
employers are therefore at a disadvantage in attempting to provide all employees with
proportionate contributions or benefits.
Proposal
The proposal would exempt excess benefit plans of state and local governments and
tax-exempt organizations from section 457. The exemption would not apply to an excess
benefit plan that also provided benefits in excess of qualified plan limitations other than the
section 415 limits.
This provision would be effective for years beginning after December 31, 1995.
- 31 -
Revenue Estimate (in millions of dollars)
Fiscal Years
Allow tax-exempt
organizations and state
and local governments to
provide excess benefit
plans
o
-3
-5
- 32 -
-5
-5
-5
-23
COl\1MENCEMENT OF MINIMUM DISTRIBUTIONS BEFORE RETIREl\fENT
Current Law
Under current law, an employee who participates in a qualified employer retirement
plan must begin taking distributions of his or her benefit by the April 1 following the year in
which he or she reaches age 70 112. Generally, the so-called "minimum distribution" for
any year is determined by dividing the employee's account balance or accrued benefit by the
employee's life expectancy as of that year.
Reasons for Chanl:e
If the employee is still working and accruing new benefits at age 70 112, the new
benefits must be taken into account to determine the minimum amount required to be
distributed for the same year. In effect, a portion of each year's new benefit accrual is
required to be distributed in the same year. This almost simultaneous pattern of
contributions and required distributions causes considerable complication and confusion.
Proposal
The requirement to distribute benefits before retirement would be eliminated, except
for employees who own more than 5 % of the employer that sponsors the plan. Instead,
distributions would have to begin by the April 1 following the later of the year in which the
employee reached age 70 112 or the year in which the employee retired from service with the
employer maintaining the plan. If payment of an employee's benefits were delayed past age
70 112 pursuant to this rule, the benefits ultimately paid at retirement would have to be
actuarially adjusted to take into account the delay in payment. Without this adjustment, the
delay in payment could cause the employee to "lose" the benefit payments that would
otherwise have been paid between age 70 112 and retirement. The actuarial adjustment rule
and the 5 % owner rule would not apply to a governmental plan or a church plan.
The age 70 112 requirement would continue to apply to IRAs. Because an IRA is not
maintained by an employer, the initial payment date for an IRA cannot be tied to retirement
from the employer maintaining the plan. (Note: This proposal includes a separate item that
would change the age- 70 112 rule to an age- 70 rule.)
These provisions would generally be effective for years beginning after December 31,
1995.
Revenue Estimate (in millions of dollars)
Fiscal Years
Age 70 112 minimum
distribution requirement
1995
1996
1997
1998
1999
o
-6
-8
-8
-8
- 33 -
2000
Total
-8
-38
SIMPLIFY TAXATION OF ANNUITY DISTRIBUTIONS
Current Law
If an employee makes after-tax contributions to a qualified employer retirement plan
or IRA, those contributions (i.e., the employee's "basis") are not taxed upon distribution.
When the plan distributions are in the form of an annuity, a portion of each payment is
considered nontaxable basis. This nontaxable portion is determined by multiplying the
distribution by an exclusion ratio. The exclusion ratio generally is the employee's total aftertax contributions divided by the total expected payments under the plan over the term of the
annuity.
Reasons for Change
The determination of the total expected payments, which is based on the type of
annuity being paid, often involves complicated calculations that are difficult for the average
plan participant. Yet the burden of determining the exclusion ratio almost always falls on the
individual receiving the distribution.
Because of the difficulty an individual may face in calculating the exclusion ratio, and
in applying other special tax rules that may be applicable, the IRS in 1988 provided a
simplified alternative method for determining the nontaxable portion of an annuity payment.
However, this alternative has effectively added to the existing complexity because taxpayers
feel compelled to calculate the nontaxable portion of their payments under every possible
method in order to ensure that they maximize the nontaxable portion.
Proposal
A simplified method for determining the nontaxable portion of an annuity payment,
similar to the current simplified alternative, would become the required method. Taxpayers
would no longer be compelled to do calculations under multiple methods in order to
determine the most advantageous approach.
Under the simplified method, in most cases, the portion of an annuity payment that
would be nontaxable is generally equal to the employee's total after-tax employee
contributions, divided by the number of anticipated payments listed in a table (based on the
employee's age as of the annuity starting date).
This provision would be effective with respect to annuity starting dates after
December 31, 1995.
- 34 -
Revenue Estimate (in mi1lions of dollars)
Fiscal Years
Simplified method for
taxing annuity
distributions
1995
1996
1997
1998
1999
2000
Total
o
12
19
21
22
23
97
- 35 -
UNIFORl\.1 INFORMATION REPORTING PENALTIES
Current Law
The penalty structure for failure to provide information reports with respect to
pension payments is currently separate and different from the penalty structure that applies to
information reporting in other areas. The penalty for failure to file a Form 1099-R is
currently $25 per day per return, up to a maximum of $15,000 per year per return. The
penalty for failure to file Form 5498 is currently a flat $50 per return, with no maximum,
regardless of the number of returns.
In contrast, the penalty for failure to file any other information return is generally $50
per return up to $250,000 per year, with lower penalties and maximums if the return is filed
within specified times. (The penalty is $15 per return filed late but within 30 days and $30
per return filed late but on or before August 1.) Lower maximums also apply to persons
with gross receipts of no more than $5 million. The penalty for failure to furnish a payee
statement is $50 per payee statement up to $100,000 per year. Separate penalties apply in
the case of intentional disregard of the requirement to furnish a payee statement.
Reasons for Chanee
Conforming the information reporting penalties that apply with respect to pension
payments to the general information reporting penalty structure would simplify the overall
penalty structure by providing uniformity and would provide more appropriate penalties with
respect to pension payments.
Proposal
The penalties for failure to provide information reports with respect to pension
payments would be conformed to the general penalty structure. Thus, the penalty for failure
to file Form 1099-R would generally be reduced (i.e., for any return that was late by more
than two days). The penalty for failure to file Form 5498 would generally remain the same
as under current law, but would no longer be unlimited. In addition, for both Form 1099-R
and Form 5498, the penalties would be reduced if the forms were filed late but within
specified times.
This provision would apply to returns and statements for which the due date
(determined without regard to extensions) is after December 31, 1995.
Revenue Estimate (in millions of dollars)
Fiscal Years
Uniform information
reporting penalties
1995
1996
1997
1998
1999
2000
Total
°
0
0
0
0
0
0
- 36 -
ERISA SVl\1MARY PLAN DESCRIPTION FILING REQUIREMENTS
Current Law
Under ERISA, administrators of employee pension and welfare benefit plans are
required to furnish each participant and beneficiary with a summary plan description (SPD),
summaries of material modifications (SMMs) to the SPD and, at specified intervals, an
updated SPD. These documents must also be filed with the Department of Labor (DOL).
Filed SPDs, SMMs, and updated SPDs are required to be made available for public
disclosure. These requirements are administered by the DOL's Pension and Welfare Benefits
Administration (PWBA). The SPD is intended to provide participants and beneficiaries with
important information concerning their plan, the benefits provided by the plan, and their
rights and obligations under the plan.
Reasons for Change
The primary purpose of having SPDs filed with the DOL is to have them available for
participants and beneficiaries who are unable or reluctant to request them from their plan
administrators. However, because SMMs are not required to be filed with DOL until 210
days after the end of the plan year, there is little, if any, certainty that the SPD information
on file with the DOL at any given point in time is up-to-date.
PWBA annually receives approximately 250,000 SPD and SMM filings. Although
PWBA's cost for maintaining a filing, storage, and retrieval system for SPDs is relatively
small, approximately $52,000 annually, compliance with the SPD filing requirements costs
plan administrators approximately $2.5 million annually, with the annual imposition of an
estimated 150,000 burden hours. On average, PWBA receives requests annually for about
2 % of the filed SPDs. Many of the requests for SPDs come from researchers and others
who are not plan participants and beneficiaries. While there is some limited benefit from the
federal government receiving and storing SPDs, the costs to the public and private plan
administrators outweigh the benefits. This conclusion is consistent with the findings of the
National Performance Review.
Proposal
The proposal would amend ERISA to eliminate the requirement that all SPDs be filed
with the DOL, and would authorize the DOL to obtain SPDs from plan administrators for
purposes of responding to individual SPD requests or monitoring compliance with the SPD
requirements. This approach would substantially reduce costs and burdens for public and
private plan administrators, while preserving the ability of the DOL to assist participants who
are unable or reluctant to request SPDs from their plan administrators.
This provision would be effective for SPDs that otherwise would be required to be
filed with the DOL on or after the date of enactment.
- 37 -
PBGC MISSING PARTICIPANT PROGRAM
Current Law
When a qualified employer retirement plan is terminated, there may be plan
participants who cannot be located after a search. If the plan is a defined benefit plan
covered by the PBGC, the plan administrator must generally distribute plan assets by
purchasing irrevocable commitments from an insurer to satisfy all benefit liabilities. If the
plan is a defined contribution plan or other plan not covered by the PBGC, plan assets still
must be distributed to participants before the plan is considered terminated.
Because of the problems that plan administrators and participants may face under
these rules when plan participants cannot be located, the Retirement Protection Act (RPA),
enacted as part of the legislation implementing the General Agreement on Tariffs and Trade
(GATT) in 1994, provided special rules for the payment of benefits with respect to missing
participants under a terminating plan covered by the PBGC. The rules require the plan
administrator to (1) transfer the missing participant's designated benefit to the PBGC or
purchase an annuity from an insurer to satisfy the benefit liability, and (2) provide the PBGC
with such information and certifications with respect to the benefits or annuity as the PBGC
may specify. These rules will be effective after final regulations to implement them are
adopted by the PBGC.
Reasons for Chan2e
As currently enacted, these RPA rules would apply only to defined benefit plans that
are covered by PBGC. Yet other defined benefit plans, as well as defined contribution plans,
face similar problems when they terminate and cannot locate missing participants.
Proposal
The PBGC's program for missing participants would be expanded to defined benefit
plans (other than governmental plans) not covered by the PBGC and to defined contribution
plans (other than governmental plans). This would provide employers with a uniform
method of dealing with missing participants, and would provide missing participants with a
central repository location for locating their benefits once a plan has been terminated.
This provision would be effective with respect to distributions that occur after final
regulations implementing the provision are adopted by the PBGC.
- 38 -
ELIMINATION OF HALF-YEAR REQUIREMENTS
Current Law
In general, distributions from qualified employer plans and IRAs prior to age 59 112
are subject to a 10% penalty. In addition, under certain plans (such as section 401(k) plans),
distributions before age 59 112 are generally prohibited. Minimum distributions from IRAs
and qualified employer plans are required to begin after attainment of age 70 112. (Note:
This proposal includes a separate item that would eliminate the requirement that distributions
from qualified employer plans begin by age 70 112 for employees, other than more-than-5 %
owners, who have not yet retired.)
Reasons for
Chan~e
Requirements based on half years are not as simple to apply or communicate as
requirements based on whole years, and may lead to confusion as to when distributions to
IRA and qualified plan participants must commence and when distributions may be subject to
penalty. The exact date on which an individual reaches age 59 112 or age 70 112 may not be
readily apparent,whereas everyone knows his or her date of birth. In addition, an
employee's date of birth is included in plan and employer records.
Proposal
To simplify these provisions, all references to age 59 112 would be changed to age
59, and all references to age 70 112 would be changed to age 70.
These provisions would be effective for years beginning after December 31, 1995.
Revenue Estimate (in millions of dollars)
Fiscal Years
Eliminate half-year
requirements
o
31
17
- 39 -
5
6
7
66
DISABLED EMPLOYEES
Current Law
An employer may elect to continue making deductible contributions to a defined
contribution plan on behalf of permanently and totally disabled employees who are not highly
compensated.
Reasons for Chan2e
Contributions for disabled employees should be encouraged. In addition,
contributions should be allowed for highly compensated disabled employees, as well as for
nonhighly compensated disabled employees, if the contributions are provided on a
nondiscriminatory basis.
Proposal
In order to simplify the rules for permanently and totally disabled workers and to
encourage contributions for those disabled workers, an employer would not have to make an
election in order to make contributions for disabled employees, and plans would generally be
allowed to provide for contributions for disabled highly compensated employees, as well as
for disabled nonhighly compensated employees.
This provision would apply to years beginning after December 31, 1995.
Revenue Estimate (in millions of dollars)
Fiscal Years
1995
Contributions on behalf of
disabled employees
o
1996
1997
1998
1999
2000
Total
-3
-4
-4
-4
-4
-19
- 40 -
REVERSIONS FOR GOVERNMENT CONTRACTORS
Current Law
If a pension plan terminates and "excess assets" revert back to the employer, that
reversion is subject to an excise tax as high as 50 %. However, certain government
contracting regulations require that a portion of any reversion from a plan maintained by a
government contractor be paid to the United States. The portion paid to the United States is
nevertheless subject to the reversion excise tax.
Reasons for Change
Because the excise tax was intended to apply only to amounts received by the
employer, it should not apply to amounts paid to the United States instead of the employer.
Otherwise, government contractors that face plan terminations may experience unintended
and unreasonably high costs.
Proposal
Amounts that are required to be repaid to the United States by reason of the
applicable government contracting regulations would be exempt from the reversion excise
tax.
This provision would be effective on the date of enactment.
Revenue Estimate (in mi1Iions of dollars)
Fiscal Years
Employer reversions
required by contract to be
paid to the U.S.
0
1996
1997
1998
1999
2000
Total
o
o
0
o
o
o
- 41 -
CHURCH PLAN STATUS UNDER ERISA
Current Law
An employer retirement plan that satisfies the definition of a "church plan" under
ERISA is generally exempt from Title I of ERISA. An employer retirement plan that
satisfies a very similar definition of a "church plan" under the Internal Revenue Code is
exempt from certain current Code requirements, such as current-law minimum coverage and
vesting. However, under the Code, a church plan can make an election to be subject to these
requirements. A plan that makes such an election is no longer exempt from ERISA.
Reasons for Chan2e
As a result of these rules, a plan that wishes to be sure of its status as a church plan
must currently seek both a private letter ruling from the IRS (which requires a user fee) and
an advisory opinion from the DOL. The DOL begins its review only after the plan obtains a
private letter ruling from the IRS. However, despite the similarity of the ERISA and Code
definitions of "church plan," there is room for disagreement between the DOL and the IRS.
If the DOL requires a church plan to be modified in order to satisfy the ERISA definition,
the plan may be required to obtain another private letter ruling (and pay another user fee)
regarding the status of the modified plan.
Proposal
ERISA would no longer provide a separate definition of "church plan." Instead,
ERISA would provide that a plan that satisfied the definition of a church plan contained in
the Code would be exempt from ERISA.
This provision would be effective on the date of enactment.
- 42 -
DATE FOR ADOPTION OF PLAN AMEND:MENTS
Current Law
Plan amendments that are made to reflect amendments to the Internal Revenue Code
must generally be made by the employer's income tax return due date for the employer's
taxable year in which the change in the law occurs.
Reasons for Chanee
Plan sponsors should be given adequate time to amend plan documents following the
enactment of legislation that requires plans to be amended.
Proposal
In order to ensure that plan sponsors have adequate time to amend plan documents for
the pension simplification provisions, plan amendments required by this proposal would not
be required to be made before the first plan year beginning on or after January 1, 1998, if
the plan were operated in accordance with the applicable provision and the amendment were
retroactive to the effective date of the applicable provision.
This provision would be effective on the date of enactment.
Revenue Estimate (in millions of dollars)
Fiscal Years
Date for adoption of plan
amendments
1995
1996
1997
0
o
0
- 43 -
1998
1999
2000
000
Total
o
Department of the Treasury
Washington, D.C. 20220
Official Business
Penalty for Private Use, $300
DEPARTMENT
OF
THE
TREASURY
NEWS
OFFICE OF PUBLIC AFFAIRS. 1500 PE~NSYLVANlA AVENUE, N.W. • WASmNGTON, D.C .• 20220. (202) 622-2960
:
:
September 22, 1995
Monthly Release of U.S. Reserve Assets
The Treasury Department today released U.S. reserve assets data for the month of
August 1995.
As indicated in this table, U.S. reserve assets amounted to $86,648 million at the end
of August 1995, down from $91,534 million in July 1995.
End
of
Month
=
Total
Reserve
Assets
Gold
Stock 1/
Special
Drawing
Rights 2/1/
Foreign
Currencies
A/
Reserve
Position
in IMF 2/
1995
July
91,534
11,053
11,487
54,233
14,761
August
86,648
11,053
11,146
49,979
14,470
1/
1/
J/
Valued at $42.2222 per fine troy ounce.
Beginning July 1974, the IMF adopted a technique for valuing the SDR based on a
weighted average of exchange rates for the currencies of selected member countries. The
U.S. SDR holdings and reserve position in the IMF also are valued on this basis
beginning July 1974.
Includes allocations of SDRs by the IMF plus transactions in SDRs.
4/ Includes holdings of Treasury and Federal Reserve System; beginning November 1978,
these are valued at current market exchange rates or, where appropriate, at such other
rates as may be agreed upon by the parties to the transactions.
RR-583
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
Monthly Treasury Statement
of Receipts and Outlays
.of tme United States Government
For Fiscal Year 1995 Through August 31, 1995, and Other Periods
Highlight
The eleven-month cumulative deficit through August 31 for Fiscal Year 1995 is $171.1 billion
compared to a cumulative deficit of $207.4 billion for the comparable period in Fiscal Year
1994.
RECEIPTS, OUTLAYS, AND SURPLUS/DEFICIT
THROUGH AUGUST 1995
1
Contents
Summary, page 2
1200
B
I
L
L
I
0
N
1000
S
200
Receipts, page 6
Outlays, page 7
800
Means of financing, page 20
600
Receipts/outlays by month, page 26
400
Federal trust funds/securities, page 28
Receipts by source/outlays by
function, page 29
0
Explanatory notes, page 30
-200
Compiled and Published by
Department of the Treasury
Financial Management Service
Introduction
of receipts are treated as deductions from gross receipts; revolving and management fund receipts. reimbursements and refunds of monies previously expended are
treated as deductions from gross outlays; and interest on the public debt (PUblic
issues) is recognized on the accrual baSis. Major information sources Include
accounting data reported by Federal entities. disbursing officers. and Federal
Reserve banks.
The Monthly Treasury Statement of Receipts and Outlays o( the United States
Government (MTS) is prepared by the Financial Management Service. Department of
the Treasury. and after approval by the Fiscal Assistant Secretary of the Treasury. is
normally released on the 15th workday of the month following the reporting month.
The publication is based on data provided by Federal entities. disbursing officers.
and Federal Reserve banks.
Triad of Publications
Audience
The MTS Is published to meet the needs of: Those responSible for or interested
in the cash position of the Treasury; Those who are responsible for or interested in
the Government's budget results; and individuals and businesses whose operations
depend upon or are related to the Government's finanCial operations.
The MTS is part of a triad of Treasury financial reports. The Daily Treasury
Statement is published each working day of the Federal Government. It provides
data on the cash and debt operations of the Treasury based upon reporting of the
Treasury account balances by Federal Reserve banks. The MTS is a report of
Govemment receipts and outlays. based on agency reporting. The U.S Government
Annual Report is the official publication of the detailed receipts and outlays of the
Government. It is published annually in accordance with legislative mandates given
to the Secretary of the Treasury.
Disclosure Statement
This statement summarizes the financial activities of the Federal Government
and off-budget Federal entities conducted in accordance with the Budget of the U.S.
Government. I.e .. receipts and outlays of funds. the surplus or deficit. and the means
of financing the deficit or disposing of the surplus. Information is presented on a
modified cash basis: receipts are accounted for on the basis of collections; refunds
Data Sources and Information
The Explanatory Notes section of this publication provides information concerning the flow of data into the MTS and sources of information relevant to the MTS.
Table 1. Summary of Receipts, Outlays, and the Deficit/Surplus of the U.S. Government, Fiscal Years 1994 and 1995,
by Month
[$ millions]
Period
Outlays
Deficit/Surplus (-)
May ..................................... .
June ................................... ..
July..
.. ........................... .
August .................................. .
September .............................. .
78.662
83.102
125,403
122.961
73.186
93.107
141.321
83.541
138.119
84.822
97.333
'135.894
124.085
121,483
133.108
107.713
114.752
125.422
123.867
115.597
123.269
118.020
121.608
'131.795
45.422
38.381
7.705
-15,248
41.566
32.315
-17,454
32.057
-14.850
33.198
24,275
-4.099
Year-ta-Date .......................... .
21,257,451
21,460,720
2203,269
October ................................ ..
November ............................... .
December ............................... .
January .................................. .
February ............. .
March
.......... .
April .................. .
May ................ ..
June ...................... .
July .............................. .
August ................................ .
89.024
87.673
130.810
131.801
82.544
92.532
165.392
90.405
147.868
92.749
96.560
120.365
124.915
135,613
116,166
120.899
143.074
115,673
129.958
135,054
106,328
130,411
31,342
37,242
4.803
-15.635
38.355
50.543
-49.720
39.553
-12.814
13.579
33.851
Year-to-Date ..................... '" .•.
1,207,356
1,378,455
171,099
Receipts
FY 1894
October
....................... .
November .............................. .
December .............................. .
January .................................. .
February ................................. .
March ................................... .
April ..................................... .
FY 1995
, Receipts have been decreased by $1 minion and outlays correspondingly decreased by $1
mIIIOn In September 1994 to reflect offsetting governmental receipts previouSly reported as
'The receipt. outlay and deficit figures differ from the FY 1996 Budget. released by the Office
of Management and Budget on February 6. 1995. by $ 100 millIOn due mainly 10 revisionS In the
data fOllowing the release of the Final September Monthly Treasury Statement.
budgetary receipts by the Department of Transportation.
2
Table 2. Summary of Budget and Off-Budget Results and Financing of the U.S. Government, August 1995 and
Other Periods
[$ millions]
Current
FiSCIII
Year to D.1e
This
Month
aaulficallon
Budgel
Ellimales
Next Fiscal
Year (1996)1
Prior
FiSCIII Year
10 Dale
(1994)
Budgel
Eallmates
Full FiSCIII
Ye.r'
Total on-budget and off-budget results:
Total receipts ...........................................
96,560
1,207,356
1,357,883
1,121,557
1,414,641
On-budget receipts ...................................
Off-budgel receipts ..................................
69,264
27,296
886,986
320,370
1,007,654
350,229
817,214
304,343
1,046,796
367,845
ReductiOn in corporate subsidies
......................
1,000
Total outlays ............................................
130,411
1,378,455
1,517,866
1,328,925
1,578,481
...................................
...................................
deficit (-) ........................
104,134
26,2n
1,120,626
257,829
1,228,127
289,739
1,078,267
250,658
1,273,064
305,417
-33,851
-171,099
-159,983
-207,368
-162,840
-34,870
+1,019
-233,640
+62,541
-220,473
+60,490
-261,053
+53,685
-225,268
+62,428
33,851
171,099
159,983
207,368
162,840
16,071
30,n6
1n,906
165,n2
17,813
-24,619
5,942
-11,731
196,985
22,419
-12,036
195,312
-10,000
-22,472
On-budget outlays
Off-budget outlays
Total surplus (+) or
................
................
financing .............
On-budget surplus (+) or deficit (-)
Off-budgel surplus (+) or deficit (-)
Total on-bucIget and off-budget
Means of financing:
Borrowing from the public ...........................
ReductiOn of operating cash, increase (-) .........
By other means ......................................
-12,996
'These figures are based on the MId-SessIon Review of the FY 1996 Budget, released by the
Office 01 Management and Budget on July 31. 1995.
Figure 1.
... No Transactions.
Note: Details may not add to totals due to rounding.
Monthly Receipts, Outlays, and Budget Deficit/Surplus of the U.S. Government, Fiscal Years 1994 and 1995
$ billions
1~u-r-----------------------------------------------~
1
Outlays
1
120
100
80
60
40
Receipts
Deficit(-)/Surplus
-80
Oct.
Dec.
FY
FY
94
95
3
Feb.
Apr.
Jun.
Aug.
Flgure 2.
Monthly Receipts of the U.S. Government, by Source, Fiscal Years 1994 and 1995
$ billions
1
ITotal Receipts I
1
1
1
Oct.
Figure 3.
Dec.
Feb.
Apr.
Jun. Aug.
Oct.
FY
FY
94
95
Dec.
Feb.
Apr.
Jun.
Aug.
Monthly Outlays of the U.S. Government, by Function, Fiscal Years 1994 and 1995
$ billions
1Rn'~----------------------------------------------------1
I Total Outlays
1
1
1
Social Security & Medicare
1
Iinterest
Oct.
Dec.
Feb.
Apr.
Jun. Aug.
I
Oct.
FY
FY
94
95
4
Dec.
Feb.
Apr.
Jun.
Aug.
Table 3. Summary of Receipts and Outlays of the U.S. Government, August 1995 and Other Periods
[$ millions]
Cleulflcatlon
This Month
Current
Fiscal
Year to Date
Comparable
Prior Period
Budget
Estimates
Full Fiscal Year'
Budget Receipts
Individual Income taxes ......................................... .
Corporation Income taxes ....................................... .
SocIal insurance taxes and contributions:
Employment taxes and contributions (off-budget) ........... .
Employment taxes and contributions (on-budget) ............ .
Unemployment Insurance ..................................... .
Other retirement contributions ................................ .
Excise taxes ..................................................... .
Estate and gift taxes .......................................... ..
Customs duties ................................................. ..
Miscellaneous receipts ........................................... .
44,122
2,501
529,248
124,099
485,091
113,119
594,369
157.813
27.296
7,618
4,454
436
4,757
1,500
1,794
2,081
320,370
91,372
28,643
4,186
51,n9
13,476
17,666
26,517
304,343
84,853
27,659
4,250
49,707
13,971
18,300
220,264
350.229
99,999
28,536
4,558
57.710
14,n3
20,230
29,666
Total Receipts ................................................ .
98,580
1,207,358
1,121,557
1,357,883
(On'budget) ••••••••••••••••••••••••••••••••••••••••••••••••••
89,284
888,988
817,214
1,007,854
(Off·budget, ••••.••••••••••••• " •••••••••••••••••••••••••••••
27,298
320,370
304,343
350,229
178
339
15
1,485
2,579
253
22,900
2,780
3,862
1,334
27,613
2,196
632
890
2,895
392
3,388
2,422
2,681
196
10,321
52,888
3,180
234,523
28,905
28,365
15,748
2n,081
26,479
6,562
9,845
29,904
4,912
35,035
2,342
2,470
214
9,659
56,103
2,633
242,166
27,806
21,285
15.782
254,945
24,282
6.028
9.089
34,707
4,791
233,592
2,n6
3,099
192
10,602
58.275
3,549
260,320
31,207
32,297
15,942
301,758
28,511
7,362
11,672
31,631
5,578
39,574
22.302
312,239
16,334
33,261
5,790
485
12,179
37,870
647
329,692
278,403
11,561
33,158
5,248
111
12.301
35,255
683
315,010
332,706
14,952
38,231
6,237
1,034
13,693
40,893
702
362,391
266
-10,091
2,526
3,023
3,588
-11,263
12,824
-260
Other ......................................................... ..
-1,134
-3,023
-92,865
-38,659
-85,534
-31,n6
-93,444
-45,172
Total outlays .................................................. .
130,411
1,378,455
1,328,925
1,517,868
(On·budget) •••••••••.•••••.••.•.•••••••.•••••.••••••••••••••.
104,134
1,120,826
1,078,267
1,228,127
(Off-budget) ••.•.•..•.••.•••••.••.•..•..•..•.••••••.•••••••••
28,277
257,829
250,858
289,739
Surplus (+) or deficit (-) .................................. ..
-33,851
-171,099
-207,368
-159,983
(On·budget) .•.••••••••••••••••••••••.•.••.•.•..••.•....•.•.•.
-34,870
-233,640
-261,053
-220,473
(Off-budget) •••••••.•••••••••••.••••••••••..•.••••••••••••.••
+1,019
+62,541
+53,885
+80,490
Budget Outlays
Legislative Branch ............................................... .
The Judiciary .................................................... .
Executive Office of the President ............................. ..
Funds Appropriated to the President ........................... .
Department of Agriculture ....................................... .
Department of Commerce ..................................... ..
Department of Defense-Military .............................. ..
Department of Defense-CMI .................................. .
Department of Education ....................................... .
Department of Energy ........................................... .
Department of Health and Human Services .................. ..
Department of Housing and Urban Development .............. .
Department of the Interior ...................................... .
Department of Justice ........................................... .
Department of Labor ............................................ .
Department of State ............................................ .
Department of Transportation .................................. ..
Department of the Treasury:
Interest on the Public Debt .................................. .
Other .......................................................... .
Department of Veterans Affairs ................................. .
Environmental Protection Agency .............................. ..
General ServIces Administration ............................... ..
National Aeronautics and Space Administration ................ .
Office of Personnel Management .............................. ..
Small Business Administration .................................. .
Social Security Administration ................................... .
Other independent agencies:
ReSOlUtion Trust Corporation ................................. .
Other .......................................................... .
Allowances ....................................................... .
Undistributed offsetting receipts:
Interest ....................................................... ..
431
3,262
615
299
1,236
3,482
-a
30,054
-1,105
'These figures are based on the Mid SessIon Review of thB FY 1996 Budget. released by the
"Receipts have been decreased by $1 million and outlays correspondingly decreased by $1
million In Septernber 1994 to rallact offsetting governmental receipts previously reported as
OffIce 01 Management and Budget on July 31. 1995.
budgetary receipts by the Department 01 Transportation.
Note: Details may not add to totals due to rounding.
5
Table 4. Receipts of the U.S. Government, August 1995 and Other Periods
[$ millions]
Classification
Gross 'RefundS
Receipts (Deduct)
Individual Income taxes:
Withheld
................................ .
Presidential Election Campaign Fund ...................... .
Other ......... .
I
Receipt
S
000000 • • • 0
•••••• 0
Corporation Income taxes .......................
0
•
0
•
0
0
0
0
0
0
0
00 0
0
0
0 0
0
0
0
Social Insurance taxes and contributions:
Employment taxes and contributions:
Federal old-age and survivors ins. trust fund:
Federal Insurance Contributions Act taxes ........... .
Self-Employment Contributions Act taxes ............ .
Deposits by States ........ . .......................... .
Other ................................................... .
Total-FOASI trust fund .................. .
Federal disability insurance trust fund:
Federal Insurance Contributions Act taxes ........... .
Self-Employment Contributions Act taxes ............ .
Receipts from railroad retirement account ............ .
Deposits by Slates ................................... ..
Other ................................................... .
Total-FDI trust fund .................... ..
Federal hospital insurance trust fund:
Federal Insurance Contributions Act taxes ........... .
Self-Employment Contributions Act taxes ............ .
Receipts from Railroad Retirement Board ............ .
DepoSits by States .................................... .
1
Gross 'Refunds
Receipts (Deduct)
Recei ts
p
1
Gross 'Refunds'
Receipts (Deduct) Receipts
424,498
69
135,236
463,603
67
148,651
41.631
4,146
Total-Individual Income taxes
Prior Fiscal Year 10 Date
Current Fiscal Year to Date
This Month
45,n9
1,657
44,122
612,321
83,073
529,248
559,802
74,711
485,091
3,284
782
2,501
140,703
16,604
124,099
125,283
12,164
113,119
23,071
86
23,071
86
243,121
14,915
243,121
14,915
745
260,513
14,424
-45
(* *)
(* *j
1
(* *)
261,258
14,424
-45
r
1
*)
(.*)
(* *)
275,638
745
274.893
80
27,907
1,543
23,157
23,157
258,038
258.038
4,123
15
4,123
15
59,092
3,240
59,092
3.240
27.987
1,543
(* *)
(* *)
(* *)
..
(
)
4.138
4,138
62,332
62,332
29,530
80
29.450
7,234
34
7,234
34
81,313
6,062
359
81,313
6,062
359
76,227
4,888
394
73
76,155
4,888
394
r
(* *j
(0 0)
87.734
81,509
73
81.437
0)
(. *)
7,268
7,268
87,734
Railroad retirement accounts:
Rail industry pension fund ................. .
Railroad Social Security equivalent benefit ........... .
181
170
180
170
2,253
1,404
19
2,235
1,404
2,180
1.280
44
2,136
1,280
Total-Employment taxes and contributions ....... .
34,915
34,914
411.761
19
411,742
390,137
941
389,196
3,907
104
(* *)
22,947
5.776
24
22,947
5,672
24
22,163
5,539
27
32
4,454
28,747
104
28,643
27,761
Total-FHI trust fund ................... ..
Unemployment insurance:
State taxes deposited in Treasury ..................... ..
Federal Unemployment Tax Act taxes ................. ..
Railroad unemployment taxes .......................... ..
Railroad debt repayment ................................ .
3.907
560
547
(* *j
4,467
Total-Unemployment insurance ........... .
13
13
103
103
22,163
5,436
27
32
27,659
Other retirement contributions:
Federal employees retirement - employee
contributions ... .. ............................ .
Contributions for non-federal employees ................ .
431
6
431
6
4,106
80
4,106
80
4,159
91
4.159
91
Total-Other retirement contributions ................. .
436
436
4.186
4,186
4,250
4,250
Total-Social Insurance taxes and
contributions o.
0
0
0
0
0
0
0
0
0
•• 0
0
0
0
.... 0
39,818
14
39,804
444,694
123
444,572
422,148
1,044
421,104
2,718
502
1,875
52
50
13
328
2,668
490
835
39
913
25,820
5,042
20,350
567
30,033
4,673
15,988
536
1,005
28
490
29,028
52
26,655
5,081
21,263
567
5,148
391
4,757
53,566
1,767
51,n9
51,230
1,523
49,707
38
1,500
13,831
355
13,476
14,323
352
13,971
199
1,794
19,339
1,673
17,666
19,080
780
18,300
(* *)
1,743
338
22,967
3,560
10
22,967
3,550
16,910
338
21
16,910
3.354
0
2,082
(" ")
2,081
26,527
10
26,517
20,264
21
20,264
....... 0 .... 0 .. ..
99,841
3,081
..
72,345
3,081
......
27,296
0 0
.. 0
... 0
0
... 0 .. 0
•
Excise taxes:
Miscellaneous excise taxes' .............................. ..
Airport and airway trust fund .............. .. ............. .
Highway trust fund ......................................... .
Black lung disability trust fund ........................... ..
Total-Excise taxes
Estate and gift taxes
Customs duties
0
0
•
0
0
0
00 . . 0
0
0
0
0
0
0
00 . . 0
0
0
.. 0
0
0
.... 0
0
0
.. 0
.. 0
0
0
.. 0
.......... 0
............ 0 ...... 0 .... ..
1,538
0
0
0
0
1,993
0
0
0
0
•
0
0
0
0
.. 0
0
0
•
0
0
0
0
.... 0
0
0
0
0
0
0
0
.... 0
0
Miscellaneous Receipts:
DepoSits of earnings by Federal Reserve banks ......... .
All other .................................................... .
Total -
Miscellaneous receipts .......................
Total -
Receipts ....
Total -
On-budget ....
Total -
Off-budget ..
0
0
.. 0
.............. 0
0 .. 0
.. 0
... 0 ..... 0 ...... 0" 0
.. 0
..... 0
........ 0
.... 0 .. 0
.... 0
.. 0
1,743
1,546
23,374
96,560 1,310,981
103,625 1,207,356 1,212,151
90,594 1,121,557
69,264
990,611
103,625
27,296
320,370
886,986
906,983
89,769
817,214
320,370
305,167
825
304,343
... No Transactions.
oJ Less than $500.000.
Note. Details may not add to totals due to rounding.
'Includes amounts lor the windfall profits tax p!ISU8Ilt to PL 96-223.
lReceipts have been decreased by $1 million and outlays correspondingly decreased by $1
miIion in September 1994 to reflect offsetting governmental receipts previOuSly reported as
budgetary receipts by the Department 01 Transportation.
r
6
4,644
15,498
536
Table 5. Oudays of the U.S. Government, August 1995 and Other Periods
[$ millions)
Classification
Legislative Branch:
Senate ....................................................... .
House of Representatives .................................. .
Joint items .................................................. .
Congressional Budget OfflOe ............................... .
Architect of the Capitol ..................................... .
Ubrary of Congress ........................................ ..
Government Printing Office:
Revolving fund (net) ...................................... .
General fund appropriations .............................. .
General Accounting Office ................................. ..
United States Tax Court ................................... .
Other Legislative Branch agencies ......................... .
Proprietary receipts from the public ........................ .
Intrabudgetary transactions ................................ ..
This Month
Current Rscal Vear to Date
Gross [ApPlicable [
Oullays Receipts Oullays
Gross [APPlicable I
Oullays Receipts Oullays
37
57
6
2
5
30
(. *J
(* *J
37
57
6
2
4
30
-1
-1
9
40
9
40
2
2
-3
-3
396
658
71
19
160
608
395
708
68
19
168
454
18
90
18
90
384
384
29
27
29
27
36
90
390
29
27
2
2
8
11
-5
-15
178
2,445
2
2
24
Other ........................................................ .
325
13
324
13
2,556
107
Total-The Judiciary ................................... ..
340
339
2,686
Executive OffIce 01 the President
Compensation of the President and the White House
Office ....................................................... .
Office of Management and Budget ........................ .
2
2
4
9
4
9
33
50
112
15
15
196
814
2,802
2,640
79
31
566
116
8
38
86
15
5
-116
192
35
6,365
5
1,063
482
Total-Legislative Branch .............................. ..
The Judiciary:
Supreme Court of the United States ...................... .
Courts of Appeals, District Courts, and other judicial
services .................................................... .
Other ........................................................ .
Total-Executive OffIce 01 the President
Funds ApproprIated to the President
International Security Assistance:
Foreign military loan program ........................... ..
Foreign miitary financing program ...................... ..
Economic support fund .................................. ..
Peacelteeping Operations ................................ ..
Other ..................................................... ..
180
84
2
1
76
38
86
15
5
Proprietary receipts from the public .................... ..
Total-International Security Assistance ............... .
227
International Development Assistance:
Multilateral Assistance:
Contribution to the International Development
Association .............................................
International organizations and programs . . . . . . . . . . . . . .
5
Gross
Oullays
394
656
71
19
152
608
-1
-5
Prior Rscal Vear to Date
-11
IAPpli~blel
Receipts
2
14
8
Outlays
394
694
68
19
160
454
36
90
390
29
27
7
-7
-12
-15
-12
2,422
2,372
24
23
5
2,551
107
2,346
103
3
2,343
103
5
2,681
2,473
3
2,470
33
50
112
36
52
126
36
52
126
196
214
214
837
3,830
2,656
61
43
584
823
247
2,802
2,640
79
31
-823
777
253
3,830
2,656
61
43
-777
1,390
4,975
7,427
1,361
6,066
1,063
482
879
200
23
31
2,342
23
879
200
Other ..................................................... ~~_2_9~~~~~~_2_9~~_3_06~~~~~~3~0_6~~_3_~~~~~~~_3~90
Total-Multilateral Assistance ........................
34
34
1,851
1,851
1,469
1,469
Agency for International Development:
Sustainable development asslstance program ..........
Assistance for eastern europe and the baltic States ..
Assistance for the new independent States of the
former soviet union .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
Development fund for Africa ............................
Operating expenses ......................... .. .. .. .. .. ..
Payment to the Foreign Service retlrernent and
disability fund ...........................................
Other .....................................................
Proprietary receipts from the public ....................
Intrabudgetary transactions ............ .. .. .. . .. .. .. .. ..
Total-Agency for International Development .......
Overseas Private Investment Corporation ................
Peace Corps ...............................................
109
23
109
23
1,217
305
1,217
305
1,313
232
1,313
232
75
69
53
75
69
53
777
688
460
777
688
460
226
565
469
226
565
469
28
3
63
-3
25
-63
-3
45
214
50
774
-3
45
163
-774
-3
44
250
44
57
736
-2
193
-736
-2
==;::;3=54===::::::6::::6===2=88===3=,7=0=3===8:=2::::5==2=,8=78===3:,0==9=7===7=93~=~2~,3,;,;04
Other .......................................................
6
23
12
Total-International Development Assistance ......... .
428
International Monetary Programs .......................... ..
Military Sales Programs:
Special defense acquisition fund ........................ ..
Foreign military saJes trust fund ........................ ..
Kuwait civil reconstruction trust fund ................... ..
Proprietary receipts from the public ..................... .
635
14
1,239
Other ........................................................ .
13
Total-Funds Appropriated to the President ••••••..•.•
2,556
37
46
211
92
249
(* *J
-31
23
12
103
325
5,903
635
-129
20
-6
1,239
150
12,103
(* *J
(* *J
756
-756
13
46
1,485
24,438
(* *J
1,071
7
81
192
87
220
2
-203
211
90
6
-139
192
82
1,076
4,828
4,926
1,018
3,908
-129
-231
149
1
12,103
159
12,062
(* *J
(* *J
11,502
-11,502
46
57
10,321
24,401
14,117
-231
250
-91
12.062
12,112
-12,112
57
14,742
9,659
(* *J
Table 5, Outlays of the U,S, Government, August 1995 and Other Periods-Continued
[S mlHlons]
Current Fiscal Year to Date
This Month
I
ClalSlflc8tlon
GlOM
OuIIayt
Department of Agriculture:
Agricultural Research Service ...........................
Applicable
Recelptl
I
Gross !APPlicabla! Outia
Outlays
Receipts
ys
Outlays
Prior Fiscal Year to Date
Gross !APPllcable
Outlays
Receipts
I
Outla
YS
63
63
691
691
660
660
41
38
3
41
39
66
3
36
39
65
396
399
35
463
486
655
396
399
35
463
486
653
383
393
47
435
459
627
3
383
393
47
435
459
624
38
16
126
38
16
121
802
1.878
698
802
1.878
242
919
1.929
1,370
357
919
1.929
1.013
-832
1
-37
10,455
6.395
106
-107
3
16,813
209
1.918
3
6.654
)
16.850
106
1.173
3
~93
21,510
12.192
9.319
23.162
8.664
43
23
10
527
251
95
527
251
95
525
247
104
Cooperative State Research Education and Extension
Service:
Cooperative state research activities .....................
Extension Service ..........................................
Other ...... , ................................................
Animal and Plant Health Inspection ServIce ................
Food Safety and Inspection Service ........................
Agricultural MarKeting Service ...............................
Farm Service Agency:
SaJarIes and expenses ....................................
Conservation programs ....................................
Federal crop insuranoe oorporation fund .................
Commodity Credit Corporation:
Price support and related programs ....................
National Wool Act Program
Agricultural credit Insurance fund .........................
Other .......................................................
•
Total-Farm Service Agency
•••
T
•••
•••••••••••••••••••••
.......... , ................
38
36
5
382
1
1,214
30
67
593
Natural Resources Conservation ServIce:
Conservation operations ...................................
Watershed and flood prevention operations ..............
1,286
43
23
10
Other .......................................................
..
(
(* *)
457
1,280
1.653
10.159
209
266
3
14.498
525
247
104
Rural Utilities ServIce:
Rural eIectr1f1cation and telephone fund ..................
Rural development insuranoe fund ........................
Other .......................................................
Rural housing and Community Development Service:
Rural housing insurance fund .............................
Other .......................................................
Foreign Agricultural Service ..................................
33
79
49
331
24
14
-298
55
35
1.974
830
451
2,762
426
172
-788
404
279
2,314
898
403
3.155
530
417
-841
368
-14
319
95
57
229
89
95
57
3,596
431
1.027
2,336
1.260
431
1.027
3.864
331
1.360
2,934
930
331
1,360
Food and Consumer Service:
Food stamp program ......................................
State child nutrition programs .............................
Women, infants and children programs ...................
Other .......................................................
1.914
376
295
27
1,914
376
295
27
23,399
7.193
3,234
401
23,399
7,193
3,234
401
23.380
6,769
2.996
442
23,380
6.769
2.996
442
...................
2.613
2.613
34,227
34,227
33,587
33.587
102
23
99
102
65
23
99
1.233
907
532
456
1,233
907
532
456
1,209
467
319
826
1.209
467
319
826
...................................
289
289
3,128
3.128
2,821
2,821
Other .........................................................
Proprietary receipts from the public .........................
Intrabudgetary transactions ..................................
64
61
-85
505
35
838
483
31
1,264
452
-1.264
(* *J
-28
470
-838
-28
Total-Food and Consumer ServIce
Forest ServIce:
National forest system ....................................
Forest and rangeland protection ...... , ...................
Forest service permanent approprtations .................
Other .......................................................
Total-Forest Service
..
(
3
85
)
...........................
4,553
1,974
2,579
71,648
18,760
52,B88
73,101
16,99B
56,103
ot Commerce:
Development Administration ......................
the Census .......................................
of Industry and Commerce ......................
21
21
27
(* *J
21
21
27
326
275
341
11
315
275
341
239
226
300
15
224
226
300
1,819
408
93
17
1,712
123
111
13
31
1.699
123
80
43
1.902
104
84
-104
Total-Depanment of Agriculture
Department
Economic
Bureau of
Promotion
65
Science and Technology:
National Oceanic and Atmospheric Administration .......
National Institute of Standards and Technology .........
Other .......................................................
Total-Science and Technology
........................
Other ...................................................... '"
167
-4
12
166
36
-17
38
1.802
408
54
199
13
186
2,319
55
2.264
1.946
8
-10
98
(0 0)
98
-113
84
10
(0 ')
(" *)
(* *J
(' 0)
253
3,359
3,180
2,795
36
8
ProprIetary receipts from the public .........................
Intrabudgetary transactions ..................................
Offsetting governmental receipts ............................
1* *)
.......................
278
Total-Department of Commerce
24
8
113
179
(' oJ
162
2,633
Table 5, Outlays of the U,S, Government, August 1995 and Other Periods-Continued
[$ millions)
This Month
Cunent Fl8CIl1 V..r to Date
Cla..lflcatlon
Gross IAppilcabiel
Outlays Recefpta
Outlays
Gross
Outlays
lAppilcabiel
Receipts
Outlays
Prior Flac:al Vear to Date
Gross
Outlays
IAppII~bla
I
Rec8lpta
Outlays
Department of Defense-Military:
Military personnel:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
2,297
2,089
1,568
2,297
2,089
1,568
22,944
22,315
17,007
22,944
22,315
17,007
24,631
24,047
16,496
24,631
24,047
16,496
................................
5,955
5,955
62,266
62,266
65,174
65,174
Operation and maintenance:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
2,321
2,405
1,834
1,642
2,321
2,405
1,834
1,642
20,474
20,352
21,063
17,659
20,474
20,352
21,063
17,659
18,690
20,571
21,832
17,712
18,690
20,571
21,832
17,712
Total-Operation and maintenance.,., .......... , .. ,.
8,201
8,201
79,549
79,549
78,806
78,806
Procurement:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
585
1,501
1,756
294
585
1,501
1,756
294
6,628
23,186
18,922
3,521
6,628
23,186
18,922
3,521
7,510
23,991
20,757
3,719
7,510
23,991
20,757
3,719
.....................................
4,135
4,135
52,257
52,257
55,977
55,977
Research, development, test, and evaluation:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
546
912
829
873
546
912
829
873
4,703
8,015
11,043
7,498
4,703
8,015
11,043
7,498
5,165
7,183
11,427
7,648
5,165
7,183
11,427
7,648
3,160
3,160
31,258
31,258
31,424
31,424
Military construction:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
124
56
125
368
124
56
125
368
912
752
1,213
3,231
912
752
1,213
3,231
853
535
1,063
1,964
853
535
1,063
1,964
.............................
673
673
6,108
6,108
4,415
4,415
118
97
92
15
118
97
92
7
1,110
1,004
955
144
1,110
1,004
955
93
1,156
725
980
111
1,156
725
980
81
63
100
-7
264
-7
264
45
308
492
-131
3,526
-236
(* *)
(* *)
23
33
6
145
Total-Military personnel
Total-Procurement
Total-Research, development, test and evaluation
Total-Mlitary construction
Family housing:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
Revolving and management funds:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies:
Defense business operations fund .....................
Other .....................................................
Trust funds:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
Proprietary receipts from the public:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
Intrabudgetary transactions:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
Offsetting governmental receipts:
Department of the Army ..................................
Defense agencies ..........................................
Total-Department of Defense-Military
.............
7
63
100
343
-2
(* *)
343
-3
492
-128
(* *)
(' *)
(* *)
(* *)
2
26
3
235
2
2
38
2
(* *)
38
79
24
-42
78
-79
-24
42
-78
10
-26
-21
92
10
-26
-21
92
51
3
3
3
235
318
80
666
-666
338
-338
23,047
(* ')
148
22,900
9
235,985
-318
-80
10
427
84
-72
10
427
84
-72
2
(' *)
(* *)
r *)
1,482
234,523
45
308
5
243,183
3,526
-241
(* *)
15
6
17
1
145
134
181
379
261
-134
-181
-379
-261
127
427
130
-95
-2
(* *)
30
127
427
130
-95
6
-6
(* *)
(' *j
1,017
242,166
Table 5. Outlays of the U.S. Government, August 1995 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Vear to Date
Gross IAPPiicableJ Outlays
Outlays
Receipts
Gross IApplicablel Outla I
Receiptl
y
Outlays
Classification
Department of Defense-Civil
Corps of Engineers
Construction. general
Operation and maintenance. general
Other
Proprietary receipts from the public
Total-Corps of Engineers
949
1.221
1.348
20
95
129
219
-20
20
422
3.518
95
129
219
442
...........
Military retirement
Payment to military retirement fund
............
Military retirement fund
Intrabudgetary transactions
...........
Education benefits
..............
Other
Proprietary receipts from the public .'
. . . . . . . . . ... .
Total-Department of Defense-Civil ...................
2.356
2.356
-4
7
2,801
11.470
25,410
-11,470
61
74
1
-4
6
-1
22
2,780
29,064
(* *)
Prior Ascal Vear to Date
Grosl
Outlay I
879
1.042
1.403
145
949
1.221
1.348
-145
145
3.374
3.324
4
11
11,470
25.410
-11,470
61
70
-11
11.908
24.456
-11.908
131
74
160
28,905
27,985
IApplicabiel
Receipt.
Outlays
165
879
1.042
1.403
-165
165
3.159
4
10
11.908
24.456
-11.908
131
70
-10
179
27,806
Department of Education:
Office of Elementary and Secondary Education:
Education for the disadvantaged ......
Impact aid
. . .. , . . ... SchOOl improvement programs ....
Other
415
15
116
19
415
15
116
19
6.397
736
1,287
122
6.397
736
1.287
122
6.365
746
1,331
83
6.365
746
1.331
83
Total-Office of Elementary and Secondary
Education
566
566
8,541
8,541
8,525
8.525
27
27
211
211
207
207
338
180
12
95
338
180
12
95
2.882
2.115
132
1.356
2.882
2,115
132
1,356
2.765
2,080
122
1.239
2,765
2,080
122
1.239
3
615
128
26
29
1,738
59
-40
6.157
792
179
473
4.884
1
-4
6.344
720
185
90
-1,568
7
41
(" *)
19
6.157
792
179
473
4.884
1
-45
6.344
720
185
90
-1,568
7
2
2.539
12.504
59
12.445
5.775
41
5,734
370
400
87
370
400
-87
390
352
6
36
76
-6
127
390
352
-127
8
3,862
28,511
148
28,365
21,454
169
21,285
Office of Bilingual Education and Minority Languages
Affairs
...............................
Office of Special Education and Rehabilitative Services:
Special education
. . . . . . . .. . . .. . . .. . . .. .
Rehabilitation services and disability research ..
Special institutions for persons with disabilities
Office of Vocational and Adult Education
.............
Office of Postsecondary Education:
College housing loans
Student financial assistance
Higher education
Howard University
Federal direct student loan program
Federal family education loans ..
Other
'
.............
............
............
5
615
128
26
29
1.738
2
(* *)
Total-Office of Postsecondary Education ..
2.540
Office of Educational Research and Improvement
Departmental management
..........
Proprietary receipts from the public . ........... , ..........
36
76
........................
3,870
..............
91B
918
10,817
10.817
10,776
10,776
100
329
2
43
69
25
100
329
2
43
69
25
1.237
3.032
91
397
603
198
1.237
3.032
91
397
603
198
1.155
2.790
297
374
522
255
1.155
2.790
297
374
522
255
'
Total-Department of Education
Department of Energy:
Atomic energy defense activities
Energy programs:
General science and research activities
Energy supply. Rand 0 activities .. .......... ,
Uranium supply and enrichment activities ... ., ..........
FOSSil energy research and development ................
......................
Energy conservation
.......... ,
Strategic petroleum reserve
Clean coal technology
Nuclear waste disposal fund
Other
Total-Energy programs
Power Marketing Administration
Departmental administratIon
Proprietary receIpts from the public
Intrabudgetary transactions
Offsetting govemmental receipts
35
90
(* *)
35
90
313
939
313
938
264
855
2
264
853
693
(* *)
693
6.810
6,809
6.510
2
6.509
140
49
138
1.571
441
1,438
169
-142
441
-1.605
-403
-169
1.589
408
158
2
49
-143
-28
-158
119
151
408
-1.623
-319
-119
438
1,334
19,236
3,488
15,748
18,964
3,182
15,782
...........
Total-Department of Energy ................ , ... , .. , ... ,
143
-28
1,772
10
1,713
1.605
-403
1.623
-319
Table 5. Outlays of the U.S. Government, August 1995 and Other Periods-Continued
[$ millions]
This Month
ClassificatIOn
Department of Health and Human Services:
Public Health Service:
Food and Drug Administration ........................... .
Health Resources and Services Administration .......... .
Indian Health Services ................................... ..
Centers for Disease Control and Prevention ............ .
National Institutes of Health .............................. .
Substance Abuse and Mental Health Services
Administration ............................................ .
Agency for Health Care Policy and Research ........... .
Assistant secretary for health ........................... ..
Gross
Outlays
I
Applicable
Receipts
I
Outl
ays
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross /ApPliCable /
Outlays
Receipts
Outlays
Gross /APPlic.able / Outlays
Outlays
ReceIpts
97
183
165
169
975
96
183
165
169
975
796
2,361
1,866
1,654
10,011
209
22
37
209
37
2,211
119
209
Total-Public Health Service ..................... " .... .
1,856
1,856
19,228
Health Care Financing Administration:
Grants to States for Medicaid ........................... .
Payments to health care trust funds ................... ..
8,117
1,173
8,117
1,173
Federal hospital Insurance trust fund:
Benefit payments ....................................... .
Administrative expenses ................................ .
Interest on normalized tax transfers .................. .
10,629
141
Total-FHI trust fund ............................... ..
3
730
2.393
1,650
1,424
9,429
792
2,361
1,866
1,654
10,011
733
2,393
1,650
1,424
9,429
2,211
119
209
2,225
95
173
19,223
18,122
81,689
40,941
81,689
40,941
74,881
37,082
74,881
37,082
10,629
141
103,429
1,183
103,429
1,183
92,644
1,121
92,644
1,121
10,770
10,770
104,612
104,612
93,765
93,765
Federal supplementary medical insurance trust fund:
Benefit payments ....................................... .
Administrative expenses ............................... ..
5,766
156
5,766
156
57,726
1,584
57,726
1,584
52,626
1,560
52,626
1,560
Total-FSMI trust fund ............................. ..
5,922
5,922
59,310
59,310
54,186
54,186
Other ...................................................... .
-23
-23
-7
-7
5
5
Total-Health Care Financing Administration .......... .
25,960
25,960
286,545
286,545
259,918
259,918
1,646
57
29
1,646
57
29
15,950
1,346
379
15,950
1,346
379
15,476
2,048
333
15,476
2,048
333
82
15
82
15
859
358
859
358
769
640
769
640
74
261
328
74
261
328
841
2,605
4,317
841
2,605
4,317
730
2,504
3,892
730
2,504
3,892
330
330
4
4
2,939
28
2,939
28
2,803
1
2,803
1
TotaJ-Administration for children and families ....... .
2,827
2,827
29,623
29,623
29,196
29,196
Administration on aging ..................................... .
Departmental management ................................ ..
Proprietary receipts from the public ........................ .
Intrabudgetary transactions:
Payments for health insurance for the aged:
Federal hospital insurance trust fund ................. .
Federal supplementary medical insurance trust fund ..
Payments for tax and other credits:
Federal hospital insurance trust fund ................. .
97
-93
97
-93
-1,861
890
285
890
285
-18,544
801
282
801
282
-16,289
-1,173
-36,988
-36,988
-35,383
-35,383
-3,953
-3,953
-1,700
-1,700
277,081
271,238
Administration for children and families:
Family support payments to States .................... ..
Low income home energy assistance ...•................
Refugee and entrant assistance ......................... .
Payments to States for the job opportunities and basic
skills training program ................................... .
State legalization impact assistance grants ............. .
Payments to States for the child care and development
block grant .............................................. .
Social services block grant ............................... .
Children and families services programs ................ .
Payments to States for foster care and adoption
assistance ................................................ .
Other ...................................................... .
22
1,861
-1,173
5
5
18,544
2,225
95
173
3
16,289
18,118
Other .................................................... .
Total-Department of Health and Human Services
29,474
1,861
11
27,613
295,630
18,548
16,293
254,945
Table 5. Outlays of the U.S. Government, August 1995 and Other Periods-Continued
[$ millions]
Prior Fiscal Vear to Date
This Month
Current Fiscal Veer to Date
Gross 1App/lcebiel Outlays
Outlays Receipts
Gross IAppilceble, OutIa s
Outlays Receipts
y
Cla ..lflcetlon
Gross IApplicable
Outlays Receipts
I
Outlay.
Department of Housing and Urban Development:
Housing programs:
Public enterprise funds .............................. .
Credit accounts:
Federal housing administration fund ................... .
Housing for the elderly or handicapped fund ......... .
Other .................................................... .
Rent supplement payments .............................. .
Homeownership assistance ............................... .
Rental housing assiStance ................................ .
Rental housing development grants ..................... .
Low-rent public housing .................................. .
Public housing grants .................................... .
College housing grants ................................... .
Lower income housing assistance ....................... .
Section 8 contract renewals ............................. .
15
14
882
924
-42
-10
62
55
-04
62
5
5
166
121
45
149
126
24
6,207
504
555
6,551
-344
6,063
598
-94
682
6,029
641
555
414
(*
142
107
601
83
103
33
40
414
83
103
616
5
664
142
8
8
107
56
56
601
(0 oJ
638
3,459
616
5
664
3,032
17
18
9,050
9,050
3,130
65
638
3,459
1
26
371
1
719
719
26
371
oJ
17
(*
(*
oJ
oJ
3,032
18
9,691
342
342
4,556
4,556
9,691
3,130
Other ...................................................... .
18
18
166
166
65
Total-Housing programs .............................. .
2,496
1,502
26,166
7,270
18,896
24,713
6,797
17,917
15
14
280
201
79
299
201
98
238
238
2,484
2,484
18
5
18
164
2.361
147
5
164
27
27
1
275
274
2,956
201
2,755
2.807
oJ
Public and Indian HOUSing programs:
Low-rent public housing-Loans and other expenses
Payments for operation of Iow-income housing
prOjects .................................................. .
Community Partnerships Against Crime ................. .
Other ...................................................... .
Total-Public and Indian Housing programs
Government National Mortgage Association:
Management and liquidating functions fund ............. .
Guarantees of mortgage-backed securities .............. .
993
2,361
147
201
2.606
oJ
47
(0 oJ
127
-80
(0 oJ
318
1
786
-1
-468
880
1,341
-1
-460
Total-Government National Mortgage Association ... .
47
127
-80
318
787
-469
880
1,342
-462
Community Planning and Development:
Community Development Grants ........................ ..
Horne investment partnerships program ................. .
407
110
407
110
3,968
3,968
1,061
3,314
Other ..................................................... ..
18
22
-4
304
117
535
22
513
5,333
117
21
442
57
Total-Community Planning and Development ........ .
Management and Administration
........................... .
Other ....................................................... ..
Proprietary receipts from the public ....................... ..
(*
oJ
21
6
(0
1,061
Total-Department of Housing and Urban
Development .................................. ...........
Department of the Interior:
Land and minerals management:
Bureau of Land Management:
Management of lands and resources
................. .
Other .................................................... .
Minerals Management Service ........................... .
Office of Surface Mining Reclamation and
Enforcement ............................................. .
Total-Land and minerals management
Water and science:
Bureau of Reclamation:
Construction program ............. . . . . . . .............. .
Operation and maintenance ............................ .
187
123
148
5,216
4,282
123
4,159
442
446
37
57
39
1,183
2,196
35,272
52
45
52
45
657
357
55
55
657
357
612
3,379
3,314
697
697
271
6
-39
Offsetting governmental receipts ........................... .
(0
412
5
-412
-5
8,792
26,479
33,166
446
37
416
5
-416
-5
8,884
24,282
==============================~~====
591
591
612
261
673
261
673
27
27
285
285
284
284
181
181
1,911
1,911
1,809
1,809
32
261
233
357
261
261
261
12
32
27
13
233
237
206
420
32
32
25
529
529
163
24
139
547
174
25
149
175
1,399
1,665
146
1,519
1,069
1,069
1,317
2.481
27
25
Other .................................................... .
CentrBI utah project ...................................... .
United States Geological Survey ......................... .
64
Bureau of Mines .......................................... .
16
3
5
64
15
Total-Water and science ............................. .
171
15
156
1,575
5
152
FISh and wildlife and parks:
United States FISh and Wildlife Service ................. .
National Biological Survey ................................ .
National Park Service
.......................... ··· ..
98
98
1,115
17
159
17
129
1,115
129
159
1,426
1,426
95
1,317
Total-Fish and wildlife and parks .................... .
274
274
2,670
2,670
2,481
12
237
121
300
25
547
95
Table 5. Outlays of the U.S. Government, August 1995 and Other Periods-Continued
[$ mHllons]
This Month
CUrrent FlKaI Year to Date
Gro.. IAppilcabiel
Outlays
Receipts Outlays
GIo.. jAppilcabiel
Outlays
Receipts Outlays
Prior FlK8I Year to Date
CIII..1ftcetIon
Gross
Outlays
IAppll~blej
Receipts
OuUa s
Y
Department of the InteriOr:-Con1lnued
Bureau of Indian Affairs:
Operation of Indian programs ............................ .
Indian tribal funds ....................................... ..
Other ..................................................... ..
125
20
28
125
20
28
1,361
257
392
Total-Bureau of Indian Affairs ....................... .
173
172
6
6
19
-159
-18
Territorial and international affairs .......................... .
Departmental offices ....................................... ..
Proprietary receipts from the public ........................ .
Intrabudgetary transactions ................................ ..
Offsetting govemmental recelpts .......................... ..
Total-Department of the Interior ••.•.••••..••.•.•..••.•
19
159
-18
807
1,361
257
382
1,262
258
391
9
1,262
258
382
2,011
2,000
1,911
9
1.902
408
101
408
101
-1.680
-244
244
1.680
..
-244
( )
(
175
832
8,432
239
231
65
156
224
59
19
2,556
1.903
747
1,629
2,623
..
11
)
244
120
1,820
120
-1.820
-227
(* .)
(* *j
1,975
6,028
-227
3
-3
1,889
8,582
8,003
119
2,556
1,903
747
1,629
2,504
2,279
1,899
701
1.376
2,185
109
2,279
1,899
701
1,376
2,076
647
647
n9
n9
712
-57
553
-29
797
712
-57
-797
544
553
-29
-544
918
9,845
9,742
853
9,089
Department of Justice:
Legal activitieS .............................................. .
Federal Bureau of Investigation ........................... ..
Drug Entoroement Administration ........................... .
Immigration and Naturalization Service ..................... .
Federal Prison System ..................................... ..
Office of Justice Programs ................................ ..
Other ........................................................ .
239
231
65
156
236
59
19
Intrabudgetary transactions ................................. .
Offsetting govemmental receipts .......................... ..
-7
Total-Department of Justice .......................... .
998
Department of Labor:
Employment and Training Administration:
Training and employment services ....................... .
Community Service Employment for Older Americans .. .
Federal unemployment benefits and allowances ........ .
State unemployment insurance and employment service
operations ................................................ .
Payments to the unemployment trust fund ............ ..
Advances to the unemployment trust fund and other
12
-7
96
-96
108
890
10,781
513
37
34
513
37
34
4,226
367
208
4,226
367
208
3,961
350
142
3.961
350
142
37
37
84
84
240
240
619
619
2,577
2.5n
funds .................................................... ..
Unemployment trust fund:
Federal-State unemployment insurance:
State unemployment benefits ....................... ..
State administrative expenses ...................... ..
Federal administrative expenses ..................... .
Veterans employment and training ................. ..
Repayment of advances from the general fund .... .
Railroad unemployment insurance .................... ..
1,847
251
11
15
1,847
251
11
15
20,147
2,912
181
167
20,147
2.912
181
167
25.389
2.853
161
171
25,389
2.853
161
171
4
2
4
Other .................................................... .
2
55
19
55
19
61
19
61
19
Total-Unemployment trust fund ................... ..
2,129
2,129
23,480
23,480
28,654
28,654
Other ...................................................... .
8
8
79
79
86
86
Total-Employment and Training Administration ...... .
2,758
2,758
29,063
29,063
36,010
36.010
Pension Benefit Guaranty Corporation ..................... .
Employment Standards Administration:
Salaries and expenses ................................... .
Special benefits ........................................... .
Black lung disability trust fund .......................... ..
109
-138
1,250
-287
1,056
224
453
525
125
271
253
440
220
485
552
116
272
268
Other ..................................................... ..
Occupational Safety and Health Administration ............ .
Bureau of Labor Statistics ................................. .
Other ........................................................ .
Proprietary receipts from the public ....................... ..
247
24
148
47
10
27
15
62
(* *)
Intrabudgetary transactions ................................ ..
-57
Total-Department of Labor ............................ .
3,143
248
13
24
224
148
47
10
27
15
62
453
1,537
525
125
271
253
440
(* .)
6
-57
-1,157
2,895
31,447
1,543
-e
1,510
220
485
552
116
272
268
444
-1,157
-3,201
29,904
36,220
-455
444
3
-3
-3.201
1,514
34,707
Table 5. Outlays of the U.S. Government, August 1995 and Other Periods-Continued
[$ millions]
Classification
Department of State:
Administration of Foreign Affairs:
Diplomatic and consular programs
Acquisition and maintenance of buildings abroad
Payment to Foreign service retirement and disability
fund
...................... .
Foreign service retirement and disability fund
Other
................. .
Total-Administration of Foreign Affairs .....
Intemational organizations and Conferences ..... .
Migration and refugee assistance ................ .
Other
Proprietary receipts from the public ........................ .
Intrabudgetary transactions ..................... . .......... .
Offsetting governmental receipts ........................... .
This Month
Current Fiscal Year to Date
Prior Ascal Year to Date
GrolS !APplicable! Outlays
OuUays
Receipts
Gross [APPlicable1 0 tla
Outlays
Receipts
U
ys
Gross !APPlicablel OUU
Outlays
Receipts
ays
187
50
187
50
1.466
487
1.466
487
1,669
1,669
522
522
138
37
40
138
37
40
267
410
436
267
410
436
125
374
265
374
265
451
451
3,067
3,067
2,955
2,955
8
8
48
23
1,365
666
135
1,365
666
135
1,183
48
23
1,183
658
-320
-176
4,912
4,791
4,791
16,967
168
187
16,967
168
16,524
187
16,524
150
197
1,727
17,322
17,322
16,871
16,871
28
28
254
254
237
237
r .)
(. 0)
806
23
22
216
10
806
206
491
346
19
327
23
22
1,022
10
1,012
837
19
818
-142
-142
173
626
626
1,866
75
1.487
1,919
1,919
-320
Total-Department of State ............................. .
392
392
4,912
Department of Transportation:
Federal Highway Administration:
Highway trust fund:
Federal-aid highways ...... . ........................... .
Other... . . . . ........................................ .
Other programs
1,691
16
20
1,691
16
20
Total-Federal Highway Administration ................ .
1,727
National Highway Traffic Safety Administration ............ .
Federal Transit Administration:
Formula grants ....... .
Discretionary grants
Other ............... .
Total-Federal Transit Administration
Federal Aviation Administration:
Operations ................ .
Airport and airway trust fund:
Grants-in-aid for airports ............... .
Facilities and equipment ................... ..
Research, engineering and development .............. .
Operations .............................................. .
Total-Airport and airway trust fund
Other .....
Total-Federal Aviation Administration
Coast Guard:
Operating expenses ................................ .
AcquiSition, construction, and improvements
Retired pay ............ .
Other .....
T otai-Coast Guard
Maritime Administration
........................ .
Other
.......................... ..
Proprietary receipts from the public ........................ .
Intrabudgetary transactions ..
. ............... .
Offsetting governmental receipts .....
. .......... .
Total-Department of Transportation
172
172
-1
-176
-138
Total-Federal Railroad Administration
658
(00)
-138
Federal Railroad Administration:
Grants to National Railroad Passenger Corporation
Other............
. ..................... .
125
173
(* *)
150
197
491
75
1,487
340
340
1,622
1,866
1,622
371
371
4,114
4,114
3,481
3,481
312
312
1,904
1,904
2,321
2,321
159
1,598
2,319
206
2.342
6.464
159
163
18
204
204
1,598
2.319
206
2,342
545
545
6,464
163
18
(0 0)
(' .)
(' 0)
'J
2
-2
856
..
{O
(
856
8.369
2
249
249
25
48
25
48
2.321
241
25
24
276
347
346
)
107
87
20
35
1
34
2
-2
3,495
-14
107
3,388
14
1.451
2.116
200
2,008
200
2.008
5.774
5,774
..
)
-1
8,367
8,095
8,094
2,244
318
460
316
2,244
318
6
2,321
241
499
270
6
460
310
3,337
6
3,332
3,338
6
3,332
710
337
294
415
481
328
-9
797
359
316
9
9
7
9
352
499
(0 .)
14
1.451
2,116
35,464
..
(
)
101
-101
429
35.035
(
'84
-9
19
-84
443
33,592
19
34,034
Table 5. Outlays of the U.S. Government, August 1995 and Other Periods-Continued
[$ mllllonl]
CtliHIflceIion
Department of the T.....ury:
Departmental offices:
Exchange stabilization fund .............................. .
Other ...................................................... .
Financial Management
Thll Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Groll !AppllC8bla!
Outlay.
Receipts
Outlay.
Gross !APPlicable! Outl
Receipts
ays
Outlays
Gross !APPlic.able! Outlays
Receipts
Outlays
-190
58
2
-192
58
-2,458
291
20
-1,216
229
-2,478
291
-1,205
229
190
2,328
1,035
777
65
205
2,328
446
2
129
205
2,328
446
2
129
12
Service:
Salaries and expanses ................................... .
Payment to the Resolution Funding Corporation ........ .
Claims, judgements, and relief acts .................... ..
Net Interest paid to loan guarantee financing accounts
-10
-10
243
243
Other ...................................................... .
-3
-3
190
2,328
1,035
777
65
Total-Anancial Management Service ................. .
230
230
4,396
4,396
3,112
3,112
Federal Financing Bank ..................................... .
Bureau of Alcohol, Tobacco and Firearms:
SalarIes and expanses ................................... .
IntemaJ revenue collections for Puerto Rico ............. .
United States Customs Service ........................... ..
Bureau of Engraving and Printing .......................... .
United States Mint .......................................... .
Bureau of the Public Debt ................................. .
-113
-113
112
112
110
110
28
24
159
28
24
159
348
191
1,659
-18
20
271
348
191
1,659
-18
20
271
345
187
1,667
-28
43
252
345
187
1,667
-28
43
252
1,701
3,935
1,428
1,645
3,419
1,130
1,645
3,419
1,130
15,077
10,898
10,898
IntemaJ Revenue Service:
Processing, assistance, and management ...•.•..........
Tax law enforcement ..................................... .
Information systems ..................................... ..
Payment where earned income credit exceeds liability
for tax ................................................... .
Health insurance supplement to earned income credit ..
Refunding intemal revenue collections, interest ......... .
Other ...................................................... .
-2
-2
130
15
130
15
114
114
349
349
109
109
1,701
3,935
1,428
161
161
15,077
..
203
203
(0 0)
( )
Total-Internal Revenue Service ...................... ..
937
United States Secret Service .............................. ..
Comptroller of the Currency ............................... ..
Office of Thrift Supervison ................................ ..
35
31
11
on the public debt:
Public issues (accrual basis) ............................. .
Special Issues (cash basis) ............................... .
2,527
2
773
773
2,542
2,542
(..)
2,527
2
-2
-2
oJ
24,669
20,404
20,404
488
-17
-9
455
332
164
(0
937
24,669
35
-89
9
488
370
145
20,292
2,010
20,292
2,010
214,527
97,713
214,527
97,713
190,005
88,398
190,005
88,398
debt .................... .
22,302
22,302
312,239
312,239
278,403
278,403
Other ........................................................ .
6
6
-70
54
3,663
54
-3,663
49
70
-596
-137
-8,969
1,011
-8,969
-1,011
-10,580
137
331
22,733
333,810
5,236
328,574
293,938
120
2
387
154
417
455
-86
162
2
Interest
Total-Interest
on the public
Proprietary receipts from the public ........................ .
Receipts from off-budget federal entities .................. .
Intrabudgetary transactions ................................. .
-596
Offsetting governmental receipts .......................... ..
Total-Department of the Trealury ................... ..
23,064
15
2,615
49
-2,615
769
-10,580
-769
3,975
289,963
Table 5. Outlays of the U.S. Government, August 1995 and Other Periods-Continued
[$ mlHlons]
Thl, Month
1
Claulftcdon
Gross IAppilcabie
Outlays Receipts
Outlays
CUrT8f1t Ascal Year to Date
Prior Fiscal Year to Date
Gross IAPPllcable I Outla s
Outlays
Receipts
y
Gross IAPPlicablel Outl
ay.
Outlays
Receipts
Department of Veteran, AHai,.:
Veterans Health Administration:
Medical care .............................................. .
1,413
Other ...................................................... .
75
18
65
16
10
72
35
9
Veterans Benefits Administration:
Public enterprise funds:
Guaranty and indemnity fund .......................... .
Loan guaranty revolving fund .......................... .
Other
.................................................. .
14,599
647
243
-7
846
395
153
15,023
1,109
54
525
382
121
-19
1
14,599
404
13,905
600
321
13
32
15,023
1,109
54
1,357
510
305
15,806
1,045
73
1,148
17
-44
38
1,134
18
119
4
174
1,134
18
-55
1,456
18.914
76
4
1,556
76
4
105
105
2
3
2
9
6
1.148
17
131
38
175
119
1,730
18,915
1,203
17,711
20.370
58
97
582
906
(' .)
582
906
645
884
-24
..
250
-250
(
)
(' 'j
(' .)
-70
-1
673
-18
-673
-18
-29
3,262
35.631
33,261
36.375
102
94
264
132
42
-18
823
1,272
2,186
1.330
676
823
1,272
2,186
1,330
675
-237
-250
787
1,208
1,752
1,275
669
Compensation and pensions ............................. .
Readjustment benefits .................................... .
Post-Vietnam era veterans education account .......... .
Insurance funds:
National service life .................................... .
United States government life ......................... .
Veterans special life .................................... .
1.556
Other ...................................................... .
6
Total-Veterans Benefits Administration
1,413
56
12
.............. .
1.849
Construction ................................................. .
Departmental administration ................................ .
Proprietary receipts from the public:
National service life ...................................... ..
United States government life ........................... .
58
97
24
(' ')
Other ............. '" ...................................... .
70
Intrabudgetary transactions ................................. .
-1
Total-Department ot Veteran. Aftal,.. ................ .
3,492
230
2.370
246
645
437
200
13,905
353
712
72
105
15,806
1,045
73
4
..
(
)
645
884
..
-313
)
(")
1,201
-1,201
-29
3.217
33,158
313
(
Environmental Protection Agency:
Program and research operations .......................... .
Abatement, control. and compliance ....................... .
Water infrastructure financing .............................. .
Hazardous substance superfund ........................... .
Other ....................................................... ..
102
94
264
132
42
..
(
Proprietary receipts from the public ....................... ..
Intrabudgetary transactions ................................. .
Offsetting governmental receipts ........................... .
Total-Environmental Protection
A~
General Servlcas Administration:
Real property activities .................................... ..
Personal property activities ................................. .
Other ........................................................ .
Proprietary receipts from the public ....................... ..
Total-Generel ServIcas Administration ••••••••••.•••••
)
18
1
237
-250
-1
634
303
-32
29
19
..
(
299
)
(* *)
615
6,036
303
-32
29
164
-9
246
5,790
5.441
58
164
264
-89
9
-9
193
5,248
-89
3
3
203
203
..)
264
299
486
485
116
452
385
214
128
30
24
3,095
2,312
1,829
3,203
1,351
278
97
14
6.027
4,411
340
1.508
15
(
3
181
-250
9
58
7B7
1,208
1,752
1,275
666
-181
-250
-1
4
-4
4
111
National Aeronautics and Space Admlnlatntllon:
Human space flight ......................................... .
ScIence, aeronautics and technology ....................... .
Mission support ............................................. .
Research and development ................................. .
Space flight, control and data communications ............ .
Construction of facilities ................................... ..
Research and program management ...................... ..
Other ....................................................... ..
Total-National Aeronautics and Space
Administration ........................................... .
452
385
214
128
2
2
3,095
2,312
1,829
3,203
1,351
278
97
14
1,236
1,236
12.179
12.179
12.301
12.301
334
334
3,704
3,704
3,545
3,545
35,206
1,468
14,538
86
2,394
14,707
35,206
-926
-169
86
33,250
1,253
14,157
141
-30
-31
17.101
37.870
52.315
30
24
1
1
6,027
4,411
340
l,50B
15
0ttIce of Personnel Management:
Government payment for annuitants, employees health
and life insurance benefits ................................ .
Payment to civil servica retirement and dlsablDty fund .... .
Civil servica retirement and disability fund ................. .
Employees life insurance fund .............................. .
Employees and retired ernployees health benefits fund ... .
Other ....................................................... ..
Intrabudgetary transactions:
Civil service retirement and disability fund:
General fund contributions ............................. .
3,234
132
303
3,234
-171
1,506
1.446
60
28
Other .................................................... .
-3
Total--otflce of Personnel Management ....••...•...••
5,231
28
1.749
16
-3
-30
3.482
54.971
33.250
2,384
14,675
-1,132
-518
141
-31
17.059
35.255
Table 5. Outlays of the U.S. Government, August 1995 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Vear to Date
Gro.. 'Applicable'
Outlays
Receipts Outlays
Gross IAppilcable'
Outlays Receipts Outlays
Prior Fiscal Vear to Date
Classification
Small Bullne.. Administration:
Public enterprise funds:
Business loan fund ....................................... .
Disaster loan fund ........................................ .
Other ...................................................... .
Other ........................................................ .
Total-Smell Business Administration
SocIsl SecurIty Administration:
Payments to SocIal Security trust funds .................. .
Spedal benefits for disabled coal miners .................. .
Supplemental security Income program .................... .
Office of the Inspector General ............................ .
4
40
2
36
72
14
-68
26
1
( )
82
88
..
12
58
2,118
1
36
342
424
19
525
441
207
14
1
-8
1,310
883
12
58
2,118
(
'ApPI~ble'
Receipts
Outla s
y
5
524
449
318
26
523
367
254
12
1
82
64
14
523
647
1,317
633
683
5,460
658
21,991
5,460
658
21,991
5,676
708
22,304
5.676
708
22,304
)
1
1
..
..
( )
-99
Gross
Outlays
217
Federal oId-age and survivors insurance trust fund (offbudget):
Benefit payments ......................................... .
Administrative expenses ................................. ..
Payment to railroad retirement account ................. .
Other ...................................................... .
24,311
140
24,311
140
264,223
1,629
4,052
264,223
1,629
4,052
252,982
1,564
3,420
252.982
1.564
3,420
Total-FOASI trust fund ............................... .
24,450
24,450
269,904
269,904
257,966
257.966
3,410
89
3,410
89
36,725
981
68
36,725
981
68
33,663
924
106
33.663
924
106
3,499
3,499
37,774
37,774
34,692
34.692
Federal disability Insurance trust fund (off-budget):
Benefit payments ......................................... .
Administrative expenses .................................. .
Payment to railroad retirement account ................. .
Other ...................................................... .
Total-FDI trust fund .................................. .
Proprietary receipts from the public:
On-budget ................................................ ..
Off-budget ................................................ .
Intrabudgetary transactions:
On-budget ................................................ ..
Off-budget2 ................................................ .
-12
Total-SocIal Security Administration ..•..•.•..•.••..••.
30,128
Othef Independent agencies:
Board for International Broadcasting ....................... .
Corporation for National and Community Service ......... .
Corporation for Public Broadcasting ...................... ..
District of Columbia:
Federal payment ......................................... ..
Other ...................................................... .
Equal Employment Opportunity Commission ............... .
Export-Import Bank of the United States .................. .
Federal Communications Commission ...................... .
..
71
( )
71
..
-71
628
9
)
(
-12
-5,459
30,054
330,329
12
36
383
12
36
837
215
286
..
19
66
13
..
..
( )
( )
(* ')
66
4
18
(
)
9
714
8
219
1,130
161
12
1
1,173
47
-628
-9
-5,459
-5,671
329,692
315,676
215
383
286
183
194
275
714
-4
218
698
2
215
936
137
-43
113
11
-655
-11
666
315,010
655
-5,671
183
194
275
12
1
1,808
39
698
-10
214
-872
99
======================================
Federal Deposit Insurance Corporation:
Bank insurance fund ......................................
100
891
-791
2,338
10,372
-8,034
3,415
12,347
-8.931
Savings association insurance fund .......................
5
8
-2
94
1,040
-946
22
1 ,389
-1 .367
FSUC resolution fund ............... ......................
653
136
517
2,294
1,174
1,120
2,224
2,761
-536
Affordable housing and bank enterprise.................. _ _....:(._•..:..)_ _ _ _ _---.:.(._•..:..)_ _ _4
_ _ _ _ _ _ _4_ _ _ _4_ _ _ _ _ _ _ _4
Total-Federal Deposit Insurance Corporation ......... .....
Federal Emergency Management Agency:
Public enterprise funds .................................. ..
Disaster relief ............................................. .
Emergency management planning and assistance ...... .
Other ...................................................... .
Federal Trade Commission ................................. .
Interstate Commerce Commission .......................... .
Legal Services Corporation ................................. .
National Archives and Records Administration ............. .
National Credit Union Administration:
Credit union share insurance fund ....................... .
Central liquidity facility .................................... .
Other ...................................................... .
759
1,035
-277
94
77
24
21
7
32
..
61
77
24
21
7
..
33
27
18
5
-15
5
9
4,730
12,585
-7,856
5,666
16,497
-10.831
783
321
463
2.005
263
261
40
35
397
212
356
3.381
213
235
62
39
385
232
407
-50
3.381
213
235
62
39
385
232
-271
5
-34
58
38
233
59
49
==========================================
4
33
27
3
10
10
(
)
( )
..
( )
17
4
2,005
263
277
40
35
397
212
28
15
..
(
)
17
..
( )
300
10
5
-5
..
(
)
-268
..)
(
-11
Table 5.
Outlays of the U.S. Government, August 1995 and Other Periods-Continued
[$ millions]
Classification
Railroad Retirement Board:
Federal windfall subsidy
................
Federal payments to the railroad retirement accounts
Rail Industry penSion fund:
Benefit payments ..
Advances from FOASDI fund . . . . . . . . . . . . .
OASDI certifications
Administrative expenses .....
Interest on refunds of taxes .
............
Other
Intrabudgetary transactions:
Payments from other funds to the railroad
retirement trust funds
Other
Supplemental annuity pension fund:
Benefit payments
Interest on refund of taxes
Railroad Social Security equivalent benefit account:
Benefit payments
...........
Interest on refund of taxes
Other
Total-Railroad Retirement Board
Resolution Trust Corporation
Secunties and Exchange Commission
Smithsonian Institution
Tennessee Valley Authority .................
United States Information Agency
......... ,. ...........
Other
Total-Other independent agencies
Undistributed offsetting receipts:
Other interest
.............
....................
13
21
12
331
49
52
3,862
Total-Employer share, employee retirement
161
163
155
2,375
496
486
-5,229
130
43,530
130
231
225
231
225
248
440
248
440
2,587
-1.00B
1,00B
66
19
5
2,587
-1,008
1,008
66
19
5
2,613
-995
995
66
15
6
2,613
-995
995
66
15
6
-4,120
2
-4,120
2
-3.526
-208
-3.526
-208
83
1
83
86
86
4,485
2
2
4,360
2
3
4,360
2
3
3,587
4,107
4,107
16,827
71
374
8,807
1,030
2.284
13,804
1,356
3,023
71
374
1,178
1,030
926
94,267
87,656
6,611
102
54
157
162
161
2,536
489
520
34,931
-1.069
45,116
130
20
20
(' ,)
241
-92
92
6
2
241
-92
92
6
2
(' ')
(' ')
503
570
50,345
7
7
(")
(")
404
2
404
2
(
)
(" .)
4,485
2
2
683
683
3,587
4,434
114
391
8,479
1,041
2.603
14,525
1,868
-10,091
114
391
1,376
1,041
734
81,821
89,386
-7,565
..
130
12
33
743
119
192
1,235
127
-1,105
12
33
48
119
65
7,465
8,305
-839
695
..
(
)
..
(
IApplicable
I 0 utIays
Receipts
Gross
Outlays
Outla s
y
157
162
161
2,536
-14
-50
13
21
12
331
-53
-2
(")
.................
Employer share. employee retirement:
Legislative Branch:
United States Tax Court:
Tax court Judges survivors annuity fund
The Judiciary'
Judicial survivors annuity fund
Department of Defense-Civil:
Military retirement fund
Department of Health and Human Services:
Federal hospital insurance trust fund:
Federal employer contributions
Postal Service employer contributions
Payments for military service credits
DepBlrtment of State:
Foreign Service retirement and disability fund
Office of Personnel Management:
Civil service retirement and disability fund ...
SOCial Security administration (off-budget):
Federal old-age and survivors insurance trust fund:
Federal employer contributions ....
Payments for military service credits
Federal disability insurance trust fund:
Federal employer contributions
Payments for military service credits
Independent agencies:
Court of veterans appeals retirement fund
IAPPII~ble
j
Receipts
Gross
Outlays
Gross jAPPlicable I Outlays
Outlays
Receipts
Other independent agencies:-Continued
National Endowment for the Arts
National Endowment for the Humanities
National Labor Relations Board
National Science Foundation
Nudear Regulatory Commission
Panama Canal Commission ..
Postal Service
PubliC enterprise funds (off-budget) ..
Payment to the Postal Service fund
Prior Fiscal Year to Date
Current Fiscal Year to Date
This Month
)
7,103
..
(
)
-1
404
518
44,841
..
7,629
(
)
(")
(")
(")
(")
161
163
155
2,375
91
-31
-1,311
130
..)
(
..
(
)
-1.028
-1,028
-11,238
-11.238
-11,752
-11,752
-153
-48
-153
-48
-1.671
-516
-61
-1,671
-516
-61
-1,678
-474
80
-1,678
-474
-80
-13
-13
-102
-102
-108
-108
-983
-983
-9.137
-9,137
-9,073
-9,073
-446
-446
-4.763
-225
-4.763
-225
-5.007
-304
-5,007
-304
-80
-80
-851
-67
-851
-67
-538
-33
-538
..
(
2.750
2,750
18
)
28,632
..
(
)
-28.632
..
(
)
-29.050
-33
..
(
)
-29,050
Table 5. Outlays of the U.S. Government, August 1995 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Oro.. IAppilcablel
Outlay.
Receipts
Outlays
Gross I Applicable I
Outlay.
Outlays Receipts
Gross IAppilcablel Outlays
Outlays Receipts
Classification
Undistributed offsetting recalpts:-Contlnued
Interest received by trust funds:
The Judiciary:
Judicial survivors annuity fund ......................... .
Department of Defense-Civil:
Corps of Engineers .................................... .
Military retirement fund ................................ .
Education benefits fund ................................ .
Soldiers' and airmen's home permanent fund ........ .
Other .................................................... .
Department of Health and Human Services:
Federal hospital insurance trust fund ................. .
Federal supplementary medical insurance trust fund ..
Department of Labor:
Unemployment trust fund .............................. .
Department of State:
Foreign Service retirement and disability fund ........ .
Department of Transportation:
Highway trust fund ..................................... .
Airport and airway trust fund .......................... .
Oil spill liability trust fund .............................. .
Department of Veterans Affairs:
National service life insurance fund ................... .
United States government life Insurance Fund ....... .
Environmental Protection Agency ........................ .
National Aeronautics and Space Administration ......... .
Office of Personnel Management:
Civil service retirement and disability fund ............ .
Social Security administration (off-budget):
Federal old-age and survivors insurance trust fund '"
Federal disability insurance trust fund ................. .
Independent agencies:
Railroad Retirement Board ............................. .
Other .................................................... .
Other ...................................................... .
Total-Interest received by trust funds .............. ..
-6
-'9
-20
-20
-18
-18
-'9
-45
-'0,997
-40
-45
-'0,997
-21
-10,229
-48
-9
-,
-,-9
-21
-10,229
-48
-9
-1
-342
-342
-4
-,-4
-,
-40
-9
-1
-30
-40
-30
-40
-10,849
-1,847
-10,849
-1,847
-10,571
-2,097
-10,571
-2,097
-6
-6
-2,693
-2,693
-2.490
-2.490
(* *)
(* *)
-611
-611
-570
-570
-26
-6
-54
-26
-6
-1,148
-750
-63
-1,148
-750
-63
-1,398
-828
-36
-1,398
-828
-36
-1,072
-9
-51
-1,079
-'0
-54
-1
(* *)
-1
(* *)
-49
-49
-',072
-9
-51
-27
-1,079
-10
-27
(* *)
(* *)
-1
-1
-1
-1
-36
-36
-28,030
-28,030
-26,114
-26,114
-52
-14
-52
-14
-31,370
-1,877
-31,370
-1,877
-28,445
-680
-28,445
-680
-168
-168
-3
-3
-886
-24
-473
-567
-16
-281
-567
-16
-281
-92,865
-85,534
-85,534
-276
-276
-886
-24
-473
-1,134
-1,134
-92,865
272
Rents and royalties on the outer continental shelf lands ..
Sale of major assets ....................................... .
Spectrum auction proceeds ................................ ..
Total-Undistributed offsetting receipts .................. .
-6
-3,884
272
-272
2,382
-2,382
7,644
-7,644
-4,156 -121,497
10,027 -131,524 -'14,584
2,726
-2,726
2,726
-117,310
Total outlays ................................................ .
148,845
18,434
130,411 1,574,560
196,105 1,378,455 1,511,299
182,373
1,328,925
Total on-budget ......................................... ..
117,837
13,503
104,134 1,288,377
145,751 1,120,828 1,215,789
137,521
1,078,287
Total off-budget .......................................... .
31,208
4,931
44,852
250,858
28,277
308,183
50,354
257,829
295,510
Total surplus (+) or deficit ............................... .
-33,851
-171,099
-207,388
Total on-budget ......................................... ..
-34,870
-233,640
-261,053
+1,019
+62,541
+53,885
Total off-budget .......................................... .
MEMORANOUM
Receipts offset against outlays
[$ millions]
Current
Fiscal Year
to Date
Proprietary receipts ..................................................... .
Receipts from off-budget federal entities .............................. .
Intrabudgetary transactions ............................................. .
Governmental receipts .................................................. .
Total receipts offset against outlays ............................... .
Comparable Period
Prior Fiscal Year
42,892
44,109
194,866
10,260
248,018
187,522
1,941
233,572
'The Postal Servioe accounting is composed of thirteen 21klay accounting periods. To
conform witt1 the MTS caJendar-month reporting basis used by all other Federal agencies, the MTS
reflects USPS results through August 18th and estimates for $611 million tlYough August 31st.
... No Transactions.
(' ') Less than $500,000
Note: DetaIls may not add to totals due to rounding
'Receipts have been decreased by $1 million and outlays correspondingly deCreased by $1
million in September 1994 to reflect offsetting governmental receipts previously reported as
budgetary receipts by the Department of Transportation.
'Includes FICA and SECA tax credits, non-contrfbutory military service credits, special benefits
for the aged, and credit for unnegotiated OASI benefit checks.
19
Table 6. Means of Financing the Deficit or Disposition of Surplus by the U.S. Government, August 1995 and Other Periods
(S mlHlons]
ANeta and LiabilltlH
Directly Relaled 10
Budgel ott-budget AC1IvIty
Nel TranNClfonS
(-) denoIn nel reduction of ...".,
liability or a. . accounta
Accounl Balances
Currenl Ascal V.a,
FIscal V. ., 10 Date
This Month
Thla V. .,
I
Beginning of
PrIor V. .,
This V.a,
I
Close 01
This month
This Month
liability accoun..:
Borrowing from the public:
Public debt securities, Issued under general Ananclng author1tJes:
Obligations 01 the United States, Issued by:
United States Treasury ............................................ .
Federal Financing Bank ............................................ .
10,604
278.006
280.502
4.677,750
15,000
4,945,152
15,000
Total, public debt securities ..................................... .
10,604
278.006
280,502
4,692,750
4,960,152
4,955,756
15,000
4,970,756
Plus premium on public debt securities ..................... ..
Less discount on public debt securities ...................... .
-11
40
-89
2,971
-33
-8,535
1,333
78,631
1,254
81,562
1,243
81,602
Total public debt securities net of Premium and
discount .................................................... .
10,554
274,945
289,004
4,615,453
4,879,845
4,890,399
Agency securities, Issued under special financing authorities (see
Schedule B. for other Agency borrowing, see Schedule C) ......... .
168
-1.164
2,741
28,185
26,854
27,022
10.722
273,782
291,746
4,643,638
4,906,699
4,917,420
-5,185
96,914
83,024
1,213,104
1.315.204
1,310,019
164
1.039
-11,736
1.684
2.558
2,722
-5,349
95.876
94,760
1.211,421
1,312,646
1,307,297
Total federal securities .............................................. ..
Deduct:
Federal securities held as Investments of government accounts
(see Schedule D) ............................................... .
Less discount on federal securities held as Investments of
govemment accounts ....................................... ..
Net federal securities held as Investments of government
accounts .................................................... .
Total borrowing from the public ......................... .
16.071
177.906
196,985
3,432.218
3.594,053
3,610,123
Accrued interest payable to the public .................................. ..
Allocations of special drawing rights .................................... ..
Deposit funds ............................................................ ..
Miscellaneous liability accounts (Includes checks Outstanding etc.) ..... .
-14,337
-328
277
-882
-7,443
123
1,040
-3,738
-9,906
144
1,569
-2,412
43,287
7,189
7,327
4,938
50,181
7,641
8,090
2,082
35,844
7,313
8,367
1,200
Total II.blllty .ccounts .................................................. ..
800
187,888
188,371
3,414,959
3,882,047
3,682,847
--6,439
-24,337
-30,776
-2,081
-15,731
-17,813
-11,295
-11,124
-22,419
6,848
29,094
35,942
11,206
37,700
48,905
4,767
13,363
18,129
Special drawing rights:
Total holdings ......................................................... .
SDR certificates Issued to Federal Reserve banks ................. .
-341
1,175
-2,500
634
9,971
-8,018
11,487
-10,518
11,146
-10,518
1,953
969
628
31,762
7,163
-25,923
-96
31,762
9,607
-26,734
-106
31,762
7,829
-26,387
-108
1,376
14,472
Asset accounts (deduct)
Cash and monetary assets:
U.S. Treasury operating cash:'
Federal Reserve account ............................................ ..
Tax and loan note accounts ........................................ ..
Balance ............................................................. .
Balance ............................................................. .
341
-1,325
634
Reserve position on the U.S. quota In the IMF:
U.S. subscription to International Monetary Fund:
Direct quota payments ............................................. .
Maintenance of value adjustments ................................ .
Letter of credit issued to IMF ...................................... ..
Dollar depositS with the IMF ........................................ ..
Receivable/Payable (-) for interim maintenance of value
adjustments .......................................................... .
-1,778
347
-2
666
-464
-11
777
-151
-3
1,143
-837
232
290
2,212
2,403
-566
Balance ........................................................... ..
57
12,069
14,762
(0 0)
(0 OJ
(")
1,929
21,416
33,338
34,158
3,992
-19,798
71,379
97,975
67,387
1.287
1,137
-2,215
3.086
6,040
-1,506
2,701
5,046
-2,881
-9,806
12,726
-1,386
-11,605
17,629
--677
-12,892
18,766
-2,891
Total a ...t accounts .................................................... .
32,153
2,545
-20,334
72,914
103,322
70,369
Exce.. 01 liabilities (+) or ...... (-) .................................. ..
+33,753
+170,432
+206,713
+3,422,045
+3,558,725
3,592,476
Transactions not applied to current year's surplus or deficit (see
Schedule a for Details) ..................................................... .
98
667
655
569
667
Total budget and off-budget ladera I entities (flnanclng of deficit (+)
or disposition of surplus (-)) ............................................. .
+33,851
+171,011
+207,388
+3,559,293
+3,593,144
Loans to International Monetary Fund ................................ ..
Other cash and monetary assets ...................................... .
819
12,742
Total cash and monetary assets ................................... ..
30,588
Net activity, guaranteed loan financing ................................... .
Net activity, direct loan financing ......................................... .
Miscellaneous asset accounts ............................................ .
'Major sources of informatiOn used to deternWle Treasury's operating cash InCome Include
Federal Reserve BankS. the Treasury Regional FIlance Centers, the Internal Revenue Service
Centers, the Bureau of the Public Debt and vartous eIeCtrtri:: sys1emS. 0ep0si1s are reflected as
+3,422,045
... No Transactions.
(. 'j Less than $500,000
Note: Details may not add to totals due to rounding
rece/ved and witIldrawBis are reflected as processed.
20
Table 6. Schedule A-Analysis of Change in Excess of Liabilities of the U.S. Government, August 1995 and
Other Periods
[$ mllllonl)
I
nil
Clllulftcatlon
Exce" of llabilltiel beginning of period:
Based on composition of unified budget In preceding period
Adjustments during current fiscal year for changes In composition
of unified budget:
Revisions by federal agencies to the prior budget I'88UIts ....•.
I
Month
3,558,725
FiICllI VHr
to Da..
Thll VH'
Prior VH'
3,422,146
3,218,965
-101
526
Excess of liabilities beginning of period (current basis) •..............•--~~~~~~~--------
3,558,725
3,422,045
3,219,491
===================
Budget surplus (-) or deficit:
Based on composition of unified budget In prior fiscal yr .......... .
Changes In composition of unified budget ........................... .
33,851
171,099
207,368
Total surplus (-) or deficit (Table 2) ....•..•..•.....•..•.......•.•....•.----~~----------------33,851
171,099
207,368
Totaklll-budget (Table 2) .•..............•.....•..•.....•......•.......====~~~=========
34,870
233,640
261,053
====~~~=========
Totak>ff-budget (Table 2) .......•..•..•.•.......•.••.....•..•......•.•.
-1,019
-a2,541
Seigniorage .....................................•.......................
ProfIt on sale of gold ................................................. .
-98
-a67
Exce.. of llabllilies close of period .................................. .
3,592,478
Transactions not applied to current year's surplus or deficit:
-53,685
=====================
-a34
-21
--------------~~---------Total-transactions not applied to current year's Surplus or
deficit ............................................................... .
-98
-a67
-ass
(00)
3,592,478
3,428,204
Table 6. Schedule B-Securities Issued by Federal Agencies Under Special Financing Authorities, August 1995 and
Other Periods
[$ millions]
Net Tranuc:tlonl
Account Balances
Current Fiscal Vear
(-) denotes net reduction of
liability acc:ounts
Clanlflcetlon
Beginning of
FiICllI VH' to Da..
Thla Month
Thll VH'
Agency securttles, lsaued under ...-cIaI ftnanclng authorities:
Obligations of the United States. Issued by:
Export-Import Bank of the United States ............................... .
Federal DeposIt Insurance Corporation:
FSLlC resolution fund ................................................. .
Obligations guaranteed by the United States. Issued by:
Department of Defense:
Family housing mortgages ............................................ .
Department of HOUsing and Urban Development
Federal HOUsing Administration ...................................... ..
Department of the Interior:
Bureau of Land Management ........................................ ..
-32
-1
-29
Department of Transportation:
Federal Transit Administration ........................................ ..
Coast Guard:
I
this V.a,
Prior Vea,
I
Close of
This month
this Month
(")
(* ')
(0 0)
-145
189
158
158
(")
6
6
6
-112
112
84
83
13
13
13
(")
(00)
r 0)
-547
Family housing mortgages .......................................... .
Obligations not guaranteed by the United States. Issued by:
legislative Branch:
Architect of the Capitol .............................................. ..
Independent agencies:
Fann Credit System Financial AssIstance Corporation .....•......•.•.
National Archives and Records Administration ........•....•.•.•......
Tennessee Valley Authority .......................................... ..
-7
-3
6
184
188
181
-2
178
-4
-1,097
-2
3,542
1,261
298
26,121
1,261
296
24,846
1,261
295
25,025
Total, agency securttles .......................................... .
118
-1,184
2,741
28,185
26,854
27,022
... No Tr8l18lCllons.
(. ') Less than $500,000.
Note: Details may not add to totals due to rounding.
21
Table 6.
Schedule C (Memorandum)-Federal Agency Borrowing Financed Through the Issue of Public Debt Securities,
August 1995 and Other Periods
[$ millions]
Account Balances
Current Fiscal Year
Transactions
Classification
Beginning of
Fiscal Year to Date
This Month
J
This Year
Borrowing from the Treasury:
Funds Appropriated to the President:
Intemational Security Assistance:
Foreign military loan program .....
Agency lor Intemational Development:
Intemational Debt Reduction ............... .
Housing and other credit guaranty programs ......... .
Private sector revolving fund .......................... .
Overseas Private Investment Corporation ..
. ..................... .
Department 01 Agriculture:
Farm Service Agency:
Federal crop insurance corporation fund
.................... .
Commodity Credit Corporation ....................................... .
Agricultural credit insurance fund ................ .
Natural Resources Conservation Service .......... .
Rural Utilities Service:
Rural electrification and telephone revolving fund
Rurai Telephone Bank ............
. ............. .
Rural development insurance fund ................... .
Rural communication development fund .......................... .
Rural housing and Community Development Service:
Rural housing insurance fund ........................................ .
Self-help housing land development fund ............
. .......... .
Rural Business and Cooperative Development Service:
Rural development loan fund ........................ .
Rural economic development loan fund ............. .
Foreign Agriculturai Service ......................... .
Department of Education:
Federal direct student loan program .......................... .
Federal family education loan program .......
. .......... .
College housing and academic facilities fund
..................... .
College housing loans .........................
.. ............. .
Department of Energy:
Isotope production and distribution fund ...... .
Bonneville power administration fund ....
Department of Housing and Urban Development:
Housing programs:
Federal Housing Administration .................... .
Housing for the ederly and handicapped ......... .
Public and Indian housing:
Low-rent public housing .....
Department of the Interior:
.............. .
Bureau of Reclamation Loans
Bureau of Mines, Helium Fund ............................. .
Bureau of Indian Affairs:
Revolving funds lor loans ...................... .
Department of Justice:
Federal prison industries, incorporated .................. .
Department of Transportation:
Federal Highway Administration:
High priority quarters loan fund .............. .
Federal Railroad Administration:
Railroad rehabilitation and improvement
financing funds ...................... .
Amtrak corridor improvement loans ..
Other
......................................... ..
Federai Aviation Administration:
Aircraft purchase loan guarantee program ..
Minority business resource center fund ....... .
Department of the Treasury:
Federai Financing Bank revolving fund ...
Department of Veterans Affairs:
Guaranty and indemnity fund '"
Loan guaranty revolving fund
Direct loan revolving fund
Native american veteran housing fund
Vocational rehabilitation revolving fund
This Year
Prior Year
367
This Month
405
413
780
780
315
125
1
16
315
125
1
45
315
125
16,909
4,028
4
7,930
2,280
4
7,134
2,280
8,646
668
2,806
25
8,646
667
2,806
25
8
37
8
-796
-9,775
-1,748
-113
-8,632
-1,225
-1
I
Close 01
This month
4
453
82
715
57
-221
561
8,193
586
2,091
25
1,030
2,036
1
4,497
..
5,527
1
)
1
5,527
1
40
11
97
29
10
385
21
19
583
61
30
680
61
30
680
4,868
33 7
r .)
433
1,605
162
411
5,302
1,605
181
411
5,302
1.605
187
411
(
6
24
100
-14
185
266
14
2,617
2,702
2,802
-21
-770
-475
783
8,484
762
7,714
762
7,714
40
-95
25
135
2
5
6
11
252
13
252
16
252
8
9
26
34
34
20
20
20
21
21
..
( )
14
40
21
..
..
-1
(
-2,116
1
)
..
2
(
..
)
(
)
3
r .)
..
..
..
3
( )
)
r .)
14
8
13
)
27
-22,581
-16,525
94,357
73,892
71,776
586
903
612
1,158
181
1,107
1
767
2,011
767
2,011
1
1
1
13
13
2
2
2
(
)
..
..12
22
1
52
(
)
(
)
(
..)
(
7
1
(
n
27
TableS. Schedule C (Memorandum)-Federal Agency Borrowing Financed Through the Issue of Public Debt Securities
'
August 1995 and Other Periods-Continued
[$ millions]
Account Balances
Current Fiscal Year
Transactions
Classification
Fiscal Year to Date
This Month
I
This Year
Borrowing from the Treasury:-Contlnued
Environmental Protection Agency:
Abatement, control, and compliance loan program .................... .
Small Business Administration:
Business loan and revolving fund ...................................... .
Disaster loan fund ...................................................... .
Independent agencies:
District of Columbia ..................................................... .
Export-Import Bank of the United States ............................ ..
Federal Emergency Management Agency:
National Insurance development fund ............................... ..
Disaster assistance loan fund ....................................... ..
Pennsylvania Avenue Development Corporation:
Land aquisition and development fund .............................. .
Railroad Retirement Board:
Rail industry pension fund .......................................... ..
Social Security equivalent benefit account .......................... .
Smithsonian Institution:
John F. Kennedy Center parking facilities .......................... .
Tennessee Valley Authority ............................................. .
Other ...................................................................... .
Total agency borrowing from the Treasury
financed through public debt securities issued •........•••......
Borrowing from the Federal Financing Bank:
Funds Appropriated to the President:
Foreign military financing program ..................................... .
Department of Agriculture:
Farm Service Agency:
Agriculture credit insurance fund .................................... .
Rural UtilitIeS Service:
Rural electrification and telephone revolving fund ................... .
Rural development insurance fund ................................... .
Rural housing and Community Development Service:
Rural housing insurance fund ........................................ .
Department of Defense:
Department of the Navy ............................................... ..
Defense agencies ....................................................... .
Department of Education:
Federal family education loan program ............................... ..
Department of Health and Human Services:
Medical facilities guarantee and loan fund ............................ ..
Department of HOUSing and Urban Development:
Low rent housing loans and other expenses ........................ ..
Community Development Grants ....................................... .
Department of Interior:
Territorial and intemational affairs ...................................... .
Department of Transportation:
Federal Railroad Administration ........................................ .
Federal Transit Administration .......................................... .
Department of the Treasury:
Financial Management Service ., ....................................... .
General Services Administration:
Federal buildings fund ................................................. ..
Small Business Administration:
Business loan fund ..................................................... .
Independent agencies:
Export-Import Bank of the United States ............................ ..
Pennsylvania Avenue Development Corporation ....................... .
Postal Service ........................................................... .
Resolution Trust Corporation ........................................... .
Tennessee Valley Authority ...................................... ········
Total borrowing from the Federal Financing Bank .............. ..
62
-15
248
Prior Year
This Year
I
Close of
This month
This Month
11
10
26
37
37
49
1,003
114
2,350
293
6,996
342
7,999
342
7,999
147
31
811
2,632
147
2,662
147
2,663
265
154
47
3
84
206
253
268
238
9
85
85
85
-151
2,128
2,781
2,128
2,326
2.128
2,574
..
20
150
20
150
20
150
)
(0 0)
-207
(00)
(
..
(
)
-2,460
-24,094
-18,067
163,642
142,009
139,549
-21
-239
-243
3,785
3,568
3,546
-148
-4,373
-2,725
6,063
1,838
1,690
2
-40
-251
21,916
3,675
21,873
3,675
21,875
3,675
-887
-2,372
-1,345
24,391
22,906
22,019
-47
-49
1,624
-145
1,624
-192
1,624
-192
-4,790
-2
..
..
(
)
(
)
-30
-21
63
33
33
-58
-18
-54
-19
1,747
110
1,689
93
1,689
92
-1
-1
21
21
..
22
)
-2
15
488
15
665
15
-665
(
-30
14
116
311
1,780
1,882
1,896
-32
-211
-86
581
402
370
-1,280
112
-358
-12,915
-200
-1,411
92
-4,480
-1,950
3,926
250
8,973
26,519
3,400
2,646
350
8,615
14,656
3,200
2,646
361
8.615
13,604
3,200
-22,582
-16,525
109,360
88,893
86,778
11
-1,052
-2,116
42
... No Transactions.
(0 0) Less than $500,000
Note: Details may not add to totais due to rounding
Note: this table Includes lending by the Federal Financing Bank accomplished by the purchase
financial assets, by the acquisition of agency debt securities, and by direct loans on
behaJf of an agency. The Federal Finandng B8J1k borrows from Treasury and Issues its own
S8CUr1ties and In tum may loan these funds to agencies in lieu of agencies borrowing directly
througn Treasury or issuing their own securities.
of
Beginning of
agency
23
Table 6.
Schedule D-Investments of Federal Government Accounts in Federal Securities, August 1995 and
Other Periods
[$ millions]
Securities Held as Investments
Current Fiscal Vear
Net Purchases or Sales (-)
Claulflcatlon
Beginning 01
Fiscal Vear to Date
This Month
I
This Vear
This Vear
Prior Vear
Close ot
This month
-' This Month
Federal funds:
Department of Agriculture ..................... .
Department of Commerce ..................... .
Department of Defense-Military:
Defense cooperation account ................. . .. .. . .
. ............. .
Department of Energy ............................................... .
Department of HOUSing and Urban Development:
Housing programs:
Federal housing administration fund ................................. .
Government National Mortgage Association:
Management and liquidating functions fund:
Public debt securities .................. ' .............. ..
Agency securities ...................................... ' ......... ..
Guarantees of mortgage-backed securities:
Public debt securities ............................................. ..
Agency securities .................................................. .
Other ................................................................... ..
Department of the Interior ................................................ .
Department of Labor .......... , .......................................... .
Department of Transportation ............... , ................ ..
Department of the Treasury .................................. ..
Department of Veterans Affairs:
Canteen service revolving fund ............................ ..
Veterans reopened insurance fund ..................................... .
Servicemen's group life insurance fund ................................ .
Independent agencies:
Export-Import Bank of the United States ............................ ..
Federal Deposit Insurance Corporation:
Bank insurance fund ......................... ,... . .................. .
Savings aSSOCiation insurance fund .................................. .
FSLlC resolution fund ................................................ .
Federal Emergency Management Agency:
National flood insurance fund ........................................ .
National Credit Union Administration ................................... .
Postal Service .... ' .................................................... ..
Tennessee Valley AuthOrity ... ' ........................................ .
OOer ................................. · .... ,·· .. ········· ............ .
Other ........................................................... ' .......... .
1
(" *)
3
2
13
16
-4
-4
1
509
477
5
4,527
1
16
5,021
5,036
-123
-283
478
5,742
5,581
5.458
-1
-1
-9
-4
16
16
15
58
478
467
3,713
1
193
2,722
5.330
974
7,452
4,134
1
225
3.306
5,512
4,191
37
524
41
43
534
4
530
-38
10
-108
30
209
234
57
237
267
777
3
-517
8.140
952
-1,152
9,078
1,372
1,001
13,972
2,493
21,335
3,441
1,014
22,112
129
280
2.277
502
77
-64
200
3,052
1,271
3,954
1
-311
-200
277
4.778
-2,712
231
48
3,323
5,024
1,242
1,246
2,985
3,329
6.049
1,242
1,248
2,674
1,846
-1
7.834
-1
6.898
61,564
-4
17
67.552
17
69,398
16
1,845
7,833
6,894
61,581
67,569
69,414
1
(" *j
(* *)
9
3
4
12
13
(* *)
4
(* *)
(" *)
5
27
5
5
31
31
44
45
33
279
245
273
(* *)
(* *)
(* *)
-14
-50
-68
-48
6
763
-3
-912
8.953
220
9.868
107
(* *)
648
32
676
323
66
-4,509
-2
-3
4
6
(* *)
93
140
6
6
1,025
Total public debt securities .' ....................................... .
Total agency securities .................. . .......................... .
Total Federal lunds
1
(" *)
(* *)
2
598
-11,704
86
1,715
3
1.649
1.017
2,626
1,033
2,295
15
1
225
3,399
5,653
1,039
2,943
41
4
3,444
497
Trust funds:
Legislative Branch:
Ubrary of Congress .................................................... .
United States Tax Court ............................................... .
Other
The Judiciary:
Judicial retirement funds ................................................ .
Department of Agriculture ......... . ..................................... .
Department of Commerce ............................................... ..
Department of Defense-Military:
Voluntary separation incentive fund ................... .. .............. .
Ot~
......................... · .... ···.·················· ...... .
Department of Defense-Civil:
Military retirement fund ........... ' ................... . .............. ..
Other
................................................................. ..
7
(* *)
128
24
281
2BB
319
(* *)
319
726
92
713
157
105,367
1,307
115.232
1,400
114,320
(")
B8
1.527
Table 6, Schedule D-Investments of Federal Government Accounts in Federal Securities, August 1995 and
Other Periods-Continued
[$ millions]
Securities Held as Investments
Current Fllcal Year
Net Purchase. or Sale. (-)
Claulflcetlon
Fiscal Year to Date
This Month
Thl. Year
I
Beginning
Prior Year
This Year
0'
0'
I Thi. Month
Close
This month
Trust Funds-Continued
Department of Health and HlJ1Ian Services:
Federal hospital insL1'&nC8 trust fund .................................. .
Federal supplementary medical insurance trust fund .................. .
Other ................................................................... ..
Department of the Interior ............................................... ..
Department of Justice ................................................... ..
-3,082
-4,082
12
-8
9
2,215
-3,816
147
137
58
3,035
-1,300
157
50
52
128,716
21,489
836
234
134,013
21,755
971
379
49
130,931
17,673
983
371
58
2,626
21
8,872
-14
4,641
4
39,788
59
46,034
24
48,660
45
117
-2
648
-23
468
12
7,179
50
7,710
29
7,827
27
-735
-79
69
110
1,152
-659
209
14
-3,156
-394
17,694
12,206
1,683
247
19,581
11,626
1,823
151
18,846
11.547
1,891
261
-1
-85
-1
-9
350
-3
176
-8
45
1,038
(* *)
(* *)
251
-8
55
835
1
38
11,852
115
1,509
6,250
16
37
12,114
109
1,563
6,938
16
36
12,028
107
1,554
7,288
16
-1,774
166
-52
6,072
920
179
6,222
1,232
656
338,889
14,929
7,573
346,734
15,684
7,804
344.960
15,849
7,752
-792
737
32,519
28,046
56,193
-3,588
413,425
6,100
446,735
33,409
445,944
34,146
(* *)
(* .)
r *)
1,240,605
Department of Labor:
Unemployment trust fund ............................................... .
Other .................................................................... .
Department of State:
Foreign ServIce retirement and disability fund ......................... .
Other .................................................................... .
Department of Transportation:
Highway trust fund .................................................... ..
Airport and airway trust fund ......................................... ..
Other ................................................................... ..
Department of the Treasury .............................................. .
Department of Veterans Affairs:
General post fund, nationai homeS ................................... ..
National service life Insurance ......................................... ..
United States government life Insurance Fund ........................ .
Veterans speciai life insurance fund '" ............................... ..
EnvIronmentai Protection Agency ........................................ ..
Nationai Aeronautics and Space Administration ........................ ..
OffIce of Personnel Management:
eMI service retirement and disability fund ........................... ..
Employees life insurance fund ......................................... .
Employees and retired employees health benefits fund ............... .
SocIai Security Administration:
Federal oId-age and survivors insurance trust fund ................... .
Federal disability Insurance trust fund ................................. .
Independent agencies:
Harry S. Truman memorial scholarship trust fund .................... .
Japan-Unlted States Friendship Commission ......................... ..
Railroad Retirement Board ............................................. .
(* *)
(* *)
72
..
( )
2
53
(* .)
17
290
102
12,203
226
54
Other .................................................................... .
241
9
1,860
139
Total public debt securities ......................................... ..
-7,030
89,081
76,130
1,151,523
53
17
13,822
357
1,247,635
Total trust fundI ....................................... , ....... ..
-7,030
89,081
76,130
1,151,523
1,247,635
1,240,605
Grand total ................................................................. .
-5,185
96,914
83,024
1,213,104
1,315,204
1,310,019
... No Transactions
('"I Less than $500.000.
Note: Investments are in public debt securities unless otherwise noted.
Note: Details may not add to totals due to rounding.
25
17
14,063
365
Table 7.
Receipts and Outlays of the U.S. Government by Month, Fiscal Year 1995
[$ millions]
Oct.
Classification
Nov.
Dec.
Jan.
March
Feb.
AprIl
May
June
July
Aug.
Sept.
FJKaI
Y. .,
To
Com-
pentble
PwIod
Date
Prior
F.Y.
Receipts:
Indivldual income taxes
Corporation Income taxes
Social Insurance taxes ar1d
contributions:
Employment taxes ar1d
...........
contributions
Unemployment insurance
Other retirement contributions .... ..
Excise taxes .
Estate ar1d gift taxes
...... " , . , . ...
Customs duties
... .. . .......
Miscellaneous receipts
43.659
3.055
37,414
1,497
53.736
31.915
79.162
3,258
33.863
2.060
26.846
14.863
76.441
23.482
29.729
2.193
61.457
35.876
42.819
3.397
44.122
2.501
529.248
124.099
485,091
113,119
31.263
1.073
351
4.272
1.202
1.848
2,300
33.786
3.249
352
5.518
1.220
1.827
2,811
35.108
230
420
4.106
1.092
1,747
1,256
38.990
1.069
383
4.555
1.005
1,539
1,839
35.667
2.630
357
3.485
916
1.435
2,131
38.646
320
413
5.143
1.218
1.470
3.612
50.423
3,061
354
4.602
1.906
1.349
3.774
37.226
10.601
355
4.770
1.339
1,471
2.719
40.605
320
416
4.897
1.040
1.583
1.674
34.514
1.636
349
5.074
1.037
1.603
2.320
34.914
4.454
4.757
1.500
1.794
2.081
411.742
28.643
4.186
51.779
13.476
17,666
26.517
389,196
27,659
4.250
49.107
13,971
18,300
20,264
...........
89,024
87,673 130,810 131,801
82,544
92,532 165,392
90,405 147,888
92,749
116,560
1,207,356
(On-budget) ........................
65,384
62,083 103,860 101,036
54,.ul5
61,970 126,170
61,027 115,998
65,788
69,264
886,988
(Off-budget) ....................•...
23,639
25,590
28,139
30,562
320,370
......
......
......
'
Total-Receipts this year
26.950
30.765
39,222
29,378
31,870
26,1161
21,2116
84.822
97.333
60.141
70.944
......
817.214
......
304,343
Totai-Receipts prior year
78.662
83.102 125,403 122.961
73.186
93.107 141.321
83.541 138.lJ9
(On budge!)
55.858
58.695
99.709
47.191
64.6J 1 104.306
55.361 106.008
(Off budget)
94.390
436
...... 1.121.557
22.804
24.407
25.694
28.571
25.995
28.497
37.015
28.179
32.110
24.681
26.389
354
184
18
217
169
17
333
303
26
222
214
21
174
188
15
166
348
16
178
202
18
191
200
15
185
336
14
225
198
22
178
339
15
2.422
2.681
196
2.342
2.470
214
3.255
310
271
203
101
213
221
227
172
-34
35
4.975
6.066
726
-381
367
452
443
18
471
94
427
133
327
-372
575
-749
296
498
233
265
638
-565
325
1.125
4.828
518
3.908
-315
1.760
5.839
305
2.983
3.850
300
1.869
3.637
304
1,115
4.191
308
745
3.521
262
966
4.547
291
244
3.960
227
-44
4.155
287
-646
4.139
286
~9
4.167
356
-774
3,354
253
7.528
45.360
3.180
11.727
44,376
3.713
6.118
4.239
5.701
7.837
4.764
8.203
7,312
5.469
3,280
6.720
5.896
5.914
7.566
5.068
8.404
7.915
5.370
3.138
6.749
4.344
5.826
7.169
3.911
8.302
7.508
5.180
3.831
6.453
3.880
5.955
8.201
4.135
62.266
79.549
52.257
65.174
7B.806
55,977
2.501
425
247
2.896
537
242
3.211
436
305
2.752
575
277
2.675
505
275
3.389
719
324
2,417
514
267
2.965
564
305
2.849
531
334
2.441
629
272
3.160
673
315
31.258
6.108
3.161
31.424
4.415
2.943
147
291
-311
-232
942
-27
-757
-201
-1.373
40
78
-221
-251
-350
990
892
196
-242
-137
504
-43
619
-694
3.638
-9
17,680
21.435
25.851
18.542
20.670
25.977
16.828
21.720
25.792
17.127
22.900
234.523
242.166
2.638
1.949
1,683
2.656
2.322
1.330
2.553
3.888
1.743
2,592
2.764
1.328
2.542
2.593
1.255
2.674
2.691
1.588
2.592
1.974
1.188
2.621
2.406
1.353
2.639
2.630
1.580
2.616
1.286
1.366
2.780
3.862
1.334
28.905
28.365
15.748
27.806
21.285
15.782
1,603
1.588
1.761
1.824
1.829
1.726
1.646
1.802
1.893
1.696
1.856
19.223
18.118
6.622
7.834
7.545
8.942
7,321
9,757
7.215
8.630
6.694
8.838
8.448
11.171
7.239
8.680
7.637
10.394
8.277
11,440
6.573
8.157
8.117
10.770
81.689
104.612
74.881
93.765
4.799
3.055
5.290
3.092
5.837
3.015
5.014
4.950
4,712
3,796
5.987
4.467
4.527
5.405
5.701
3.815
5,985
4,466
5.536
3.722
5.922
1.151
59.310
40.934
54.186
2.728
-4.508
2.519
-4.490
2.812
-4.473
3,151
-6.540
2.524
-5,462
2.781
-6.021
2.639
-7.083
2.858
-5.415
2.443
-5.969
2.341
-5.319
2.827
-3.030
29.623
-58.309
29.196
-52.288
2.903
2.394
557
749
2.009
567
1.094
2.227
553
730
2.694
671
915
2.707
499
920
1.843
574
774
2.795
482
875
2.285
908
2.426
582
818
2.196
632
890
26.479
6.562
9,845
24,282
6.028
9.089
1.650
702
488
1.854
-170
841
2.001
469
664
2.543
653
201
2.330
621
488
2.762
331
411
2.131
768
371
2.062
679
2.008
2.011
335
740
397
325
2.129
766
392
23.480
6.424
4.912
28.654
863
1.797
1.765
1.418
1.183
1.351
1.307
1.245
1.810
1,829
1.723
1.707
17.135
16.674
Outlays
..... ...
Legislative Branch
The Judiciary
...
...
Executive Office of the President .... ..
Funds Appropriated to the President:
International Security Assistance ...
International Development
Assistance . . . . . . .......... . . . . , .
. .....
Other ...........
Department of Agriculture:
Commodity Credit Corporation and
.......
Foreign Agricultural Service
. ...
Other .. ........
......
Department of Commerce .
Department of Defense:
Military
Military personnel .......... .....
Operation ar1d maintenance ......
..... .....
Procurement
Research. development. test. ar1d
............ .....
evaluation
Military construction ..............
, . . . . . . . ....
Family housing
Revolving ar1d management
....... , ...
funds
...
Other
Total Military ..
Civil
Department of Education.
Department of Energy ..
Department of Health and Human
services:
. . . . ..
Public Health service ....
Health Care Financing Administration:
Grants to States for Medicaid ....
Federal hoSpital ins. trust fund
Federal supp. med. ins. trust
..
fund
'"
...
Other
..
AdminIstration for children ar1d
familieS ....
Other
..
",.
Department of Housing ar1d Urban
Development ...
t of the Interior
t of JustICe .
nt of Labor:
Unemployment trust fund
Other
Departmen t of State
Department of Transportation:
Highway trust fund
883
26
563
1.172
2.633
-210
37.087
6.053
4,791
Table 7. Receipts and Outlays of the U,S. Government by Month, Fiscal Year 1995-Continued
[$ millions]
Oct.
C....lflcatlon
Oudays--Continued
Other ..................................
Department of the Treasury:
Interest on the public debt
...........
Other ..................................
Department of Veterans Affairs:
Compensation and pensions ..........
NatiOnal service life ...................
United States government life ........
Other ..................................
Environmental Protection Agency .......
General Servkles Administration .........
National Aeronautics and Space
Administration ..........................
Office of Personnel Management .......
Small Business Administration ..........
SocIal Security Administration:
Federal oId-age and survivOrs ins.
trust fund (off-budget) ...............
Federal disability ins. trust fund (offbudget) ...............................
Other ..................................
Independent agencies:
Fed. Deposit Ins. Corp.:
Bank insurance fund ...............
Savings association Insll'ance
fund ...............................
FSUC resolution fund ..............
Affordable houSing and bank
enterprise ..........................
Postal Service:
Public enterprise funds (offbudget) ............................
payment 10 the Postal Service
fund ...............................
Resolution Trust Corporation .........
Tennessee Valley Author1ty ...........
Other independent agencieS ..........
Und'lSIributed offsetting receipts:
Employer share, employee
retirement ............................
Interest received by trust funds ......
Rents and royalties on outer
continental shelf lands ...............
Other ..................................
Nov.
Dec.
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Fiscal
Vea,
To
Date
••••• 4 •••••••••••••••••••
(On-budget) ........................
(Off-budget) ••••••••••••••••••••••••
....
F.Y.
1,647
1,734
1,637
1,905
1,463
1,902
1,326
1,383
1,596
1,626
1,681
17,900
16.918
19,732
34
24,912
-308
57,320
1,336
20,069
145
19,259
3,010
20,693
4,375
20.883
3,732
26,769
2,476
59,355
496
20,946
606
22,302
431
312,239
16,334
278.403
11.561
105
64
1
1,528
438
-651
1,457
70
1
1,784
474
639
2,824
1,492
79
1
1,429
429
431
2,894
106
2
1,614
678
544
93
94
1
1,640
493
-767
1,518
81
1
1.584
571
540
2,904
86
2
1.344
538
462
81
71
1
1,827
520
-717
1.548
542
387
99
81
2
1,402
493
-684
1,556
81
2
1,623
615
299
15,023
898
17
17.323
5,790
485
15,806
821
18
16.514
5.248
111
845
3,410
65
1,143
3,118
145
1.203
3,460
64
926
3,324
58
1,072
3,337
64
1,284
3,556
77
1,028
3,548
53
1.245
3,431
55
1.166
3,647
59
1,032
3,557
14
1,236
3,482
-6
12.179
37,870
647
12.301
35.255
683
23,413
23,368
23,810
24,392
24,220
24,310
24,495
24,525
28,479
24,442
24,450
269,904
257.966
3,289
287
3,244
2.157
3,348
4,079
3,417
78
3,415
2,201
3,492
4,255
3,460
126
3.476
2,219
3,576
4.193
3,557
314
3,499
2,105
37,774
22,013
34.692
22.351
-127
-208
-496
-1,193
-1,977
-536
-305
-398
-2,195
194
-791
-8.034
-8.931
-2
-87
-13
430
(* *)
33
-91
-149
-361
331
-37
-16
-15
-14
-24
416
-381
-270
-19
-69
-2
517
-946
1.120
-1.367
-536
(* *)
......
1
1
......
1
(* *)
(* *)
(* *)
(* *)
(* *)
4
4
-467
-326
101
-396
-494
-1.268
-706
-602
186
-188
-1,069
-5,229
-1.311
61
-471
265
2,720
......
......
......
-348
42
1,452
(* *)
-1,024
156
1,244
-521
139
-2,273
23
-906
111
1,749
......
-699
92
1,572
23
-436
24
1.461
......
-2,001
119
1.710
23
-1,078
142
1,260
......
-1,502
239
1,647
-1,105
48
1,563
130
-10,091
1,376
14,105
130
3.023
1,178
14,422
-2,416 -2,564
-5,727 -38,216
-2,557
-95
-2,491
-634
-2,671
-251
-2,554
-596
-2,590 -2,696
-5,524 -39,948
-2,901
-129
-2,750
-1,134
-28,632
-92,865
-29,050
-85.534
-353
-197
-158
......
......
. .....
43
-610
-228
-7,034
-272
(* *)
-2.382
-7,645
-2.726
120,365 124,915 135,613 116,166 120,899 143,074 115,673 129,958 135,054 106,328 130,411
1,378,455
-2,442
-611
-154
r ')
-160
(* *)
83
-106
*)
r
-366
......
2
-431
*)
r
Totals this year:
Total outlays
Comparable
Period
Prior
95,307
99,464 124,316
90,883
94,421 117,123
90,628 103,164 120,236
25,059
25,452
11,297
25,282
26,478
25,045
25,951
26,773
14,818
80,931 104,134
25,397
1,120,626
26,277
257,829
-4,803 +15,635 -38,355 -50,543 +49,720 -39,553 +12,814 -13,579 -33,851
-171,099
(- ')
......
......
......
(Off-budget) ••••.•••••••••••••••••••
-1,420
+138 +15,653
+5,483
+1,661
+4,610 +14,178
+2,604 +17,051
+1,564
+1,019
+62,541
......
......
......
Total borrowing from the public .•••
32,457
40,528 -13,316
13,337
38,964
13,645 -27,638
44,740
10,627
16,071
177,906
196.985
Total-surplus (+)
or
deficit (-)
~
-31,342 -37,242
(On-budget) ........................ -29,922 -37,381 -20,456 +10,152 -40,016 -55,153 +35,542 -42,157
TOlal-oullays prior year ..............
-4,237 -15,143 -34,870
8,491
124,085 121.483 133.108 107,713 114,752 125,422 123,867 115,597 123.269 118.020 121,608
(On-budget) .........................
100.562
(Off-budget) .........................
23.523
96.719 121.425
83.521
88,835 100.259 100,620
24.764
24,192
25.917
Total-surplus (+) or deficit (-)
prior year ............................ -45.422 -38.381
11.683
25,164
23.247
-233,640
...... 1.328.925
89,726 108.161
93.159
95.280
...... 1.078.267
15,108
24,861
26.329
......
25.871
250.658
-7,705 +15.248 -41.566 -32.315 +17,454 -32.057 +14.850 -33,198 -24,275
...... -207.368
(On-budget) ......................... -44.704 -38,024 -21,717 +10.869 -41.644 -35,648 +3,686 -34,365 -2.152 -33.018 -24,335
...... -261,053
(Off-budget) .........................
-719
-357 +14,012
+4,379
+77
... No transactions.
(* ') Less than
Note:
$500,000.
0etaHs may not add to totals due to rounding.
27
+3,333 +13.768
+2,308 +17.002
-180
+60
......
+53.685
Table 8. Trust Fund Impact on Budget Results and Investment Holdings as of August 31, 1995
[$ millions]
Fiscal Year to Date
This Month
Securities held as Investments
Current Fiscal Year
Cla ..lflcatlon
Beginning of
Receipts
Outlays
Excess
Receipts
Outlays
Excess
This Year
Tru.t receipts. outlays. and Investments
held:
Airport ...................................... .
Black lung disability ......................... .
Federal disability insurance ................. ..
Federal employees life and health .......... .
Federal employees retirement ............... .
Federal hospital Insurance ................. ..
Federal old-age and survivors Insurance ... .
Federal supplementary medical Insurance .. .
Highways .................................... .
Military advances ........................... ..
Railroad retirement ......................... ..
Military retirement .......................... ..
Unemployment ............................... .
Veterans life insurance ..................... ..
All other trust ................................ .
42.446
105,697
299.524
56.423
21.498
11,502
8.642
33,705
32,484
1,333
5.531
6,464
525
37.774
-1.095
35.631
104.612
269.904
59.310
20.347
12.103
7.249
25,410
23.480
1.121
3.791
-673
46
27.692
1.095
6.815
1.085
29.620
-2.887
1.151
-601
1.393
8.295
9.004
212
1.740
-7,170
690.616
185,699
606,628
185,699
83,988
52.143
-7,170
504.917
420.929
83,988
54,341
25
81,021
25
-26,681
734,227
532
989,314
532
-255,087
Federal fund receipts and outlays on the
baSis of Table 4 & 5 ....................... ..
54.316
80.997
-26,681
733,695
988.782
-255.087
Less: Offsetting proprietary receipts .......... .
2,730
2,730
31,255
31.255
Ne' budget receipts & outlays .............. .
96,580
130,411
1.615
7.617
23,666
2,950
1.572
756
518
1.370
4,517
25
873
545
47
3,499
-111
3,272
10,770
24,450
5.922
2,183
1.239
663
2,356
2,129
116
349
-49
5
734
111
-1,658
-3,154
-784
-2.972
-610
-483
-145
-986
2,388
-91
524
Less: Interfund transactions .................. ..
50,259
5,286
57,430
5,286
Trust fund receipts and outlays on the baSis
of Tables 4 & 5 ............................. ..
44.973
Total Feeleral fund receipts and outlays ..•.
Less: Interfund transactions ................. .
496
53
4.233
5,792
571
65.467
I
This Month
Close of
This Month
12.206
11,626
11.547
6.100
22.503
346.317
128.716
413,425
21.489
17.694
33,409
23,488
354,730
134.013
446.735
21.755
19.581
34.146
23.601
353.081
130.931
445.944
17.673
18.846
12,203
105.367
39,78B
13,477
12,240
13.822
115,232
46,034
13,785
13,424
14.063
114.320
48.660
13,690
14,103
1,151,523
1,247,635
1,240,605
Total trust fund receipts and outlays
and Investments held from Table 8-
o ......................................... .
-33,851
'" No transactions.
Note: I nterfund receipts and outlays are transactions between Federal funds and trust funds
such as Federal payments and contributions, and Interest and profits on Investments in Federal
securtties. They have no net effect on overall budget receipts and outlays since the reoelpts side 01
such transactions Is offset against bugdet outlays. In this table. Interfund receipts are shOwn as an
adjustment to an1ve at total receipts and outlays 01 trust funds respectively.
1,207,356 1,378,455
-171,099
Note: Details may not add to totals due to rounding.
28
Table 9. Summary of Receipts by Source, and Outlays by Function of the U.S. Government, August 1995
and Other Periods
[$ millions]
ClaslUlcalion
This Month
Fllcal Year
To Date
Comparable Period
Prior Fiecal Year
Individual income taxes ........................................... .
Corporation income taxes ......................................... .
Social insurance taxes and contributions:
Employment taxes and contributions ........................... .
Unemployment Insurance ...................................... ..
Other retirement contributions .................................. .
Excise taxes ....................................................... .
Estate and gift taxes ............................................ ..
Customs ........................................................... .
Miscellaneous ...................................................... .
44,122
2,501
529,248
124,099
485,091
113,119
34,914
4,454
436
4,757
1,500
1,794
2,081
411,742
28,643
4,186
51,779
13,476
17,666
26,517
389,196
27,659
4,250
49,707
13,971
18,300
20,264
Total ....................................................... ..
96,560
1,207.356
1,121,557
National defense ................................................... .
International affairs ................................................ .
General science, space, and technology ......................... .
Energy ............................................................. .
Natural resources and environment .............................. ..
Agriculture ......................................................... .
Commerce and housing credit ................................... ..
Transportation ..................................................... .
Community and Regional Development ........................... .
Education, training, employment and social services ............ .
Health .............................................................. .
Medicare ........................................................... .
Income security .................................................... .
Social Security ..................................................... .
Veterans benefits and services ................................... .
Administration of justice ........................................... .
General government ............................................... .
Interest ............................................................. .
Undistributed offsetting receipts .................................. .
23,882
1,877
1,668
13
2,116
-462
-2,592
3,359
909
5,785
10,422
14,840
16,919
27,950
3,267
1,400
1,464
20,619
-3,022
246,139
14,969
15,951
4,178
21,413
9,865
-21,230
34,836
9,957
47,904
105,359
145,424
200,623
307,671
33,418
14,921
12,471
213,246
-38,659
253,807
14,926
15,830
4,411
19,986
14,896
-7,474
33,196
9,149
39,662
97,706
131,715
196,872
292,653
33,381
13,922
10,051
186,013
-31,775
Total .........•.•••.•....•.••••••..•.••••........••••••.......
130,411
1,378,455
1,328,925
RECEIPTS
NET OUTLAYS
Note: Details may not add to totals due to rounding.
29
Explanatory Notes
the employee and credits for whatever purpose the money was withheld.
Outlays are stated net of offsetting collections (including receipts of
revolving and management funds) and of refunds. Interest on the public
debt (publiC issues) is recognized on the accrual basis. Federal credit
programs subject to the Federal Credit Reform Act of 1990 use the cash
basis of accounting and are divided into two components. The portion of
the credit activities that involve a cost to the Govemment (mainly
subsidies) is included within the budget program accounts. The remaining
portion of the credit activities are in non-bUdget financing accounts.
Outlays of off-budget Federal entities are excluded by law from budget
totals. However, they are shown separately and combined with the onbudget outlays to display total Federal outlays.
1. Flow of Data Into Monthly Treasury Statement
The Monthly Treasury Statement (MTS) is assembled from data in the
central accounting system, The major sources of data include monthly
accounting reports by Federal entities and disbursing officers. and daily
reports from the Federal Reserve banks, These reports detail accounting
transactions affecting receipts and outlays of the Federal Government
and off-budget Federal entities. and their related effect on the assets and
liabilities of the U,S, Govemment. Information is presented in the MTS on
a modified cash basis.
2. Notes on Receipts
Receipts included in the report are classified into the following major
categories: (1) budget receipts and (2) offsetting collections (also called
applicable receipts). Budget receipts are collections from the public that
result from the exercise of the Government's sovereign or governmental
powers. excluding receipts offset against outlays. These collections, also
called govemmental receipts. consist mainly of tax receipts (including
social insurance taxes). receipts from court fines. certain licenses, and
deposits of earnings by the Federal Reserve System. Refunds of receipts
are treated as deductions from gross receipts.
Offsetting collections are from other Government accounts or the
public that are of a bUSiness-type or market-oriented nature. They are
classified into two major categories: (1) offsetting collections credited to
appropriations or fund accounts. and (2) offsetting receipts (Le., amounts
deposited in receipt accounts). Collections credited to appropriation or
fund accounts normally can be used without appropriation action by
Congress. These occur in two instances: (1) when authorized by law,
amounts collected for materials or services are treated as reimbursements to appropriations and (2) in the three types of revolving funds
(public enterprise. intragovemmental. and trust); collections are netted
against spending. and outlays are reported as the net amount.
Offsetting receipts in receipt accounts cannot be used without being
appropriated. They are subdivided into two categories: (1) proprietary
receipts-these collections are from the public and they are offset against
outlays by agency and by function. and (2) intragovernmental fundsthese are payments into receipt accounts from Governmental appropriation or funds accounts. They finance operations within and between
Govemment agencies and are credited with collections from other
Government accounts. The transactions may be intrabudgetary when the
payment and receipt both occur within the budget or from receipts from
off-budget Federal entities in those cases where payment is made by a
Federal entity whose budget authority and outlays are excluded from the
budget totals.
Intrabudgetary transactions are subdivided into three categories:
(1) interfund transactions, where the payments are from one fund group
(either Federal funds or trust funds) to a receipt account in the other fund
group; (2) Federal intrafund transactions, where the payments and
receipts both occur within the Federal fund group; and (3) trust intrafund
transactions, where the payments and receipts both occur within the trust
fund group,
Offsetting receipts are generally deducted from budget authority and
outlays by function, by subfunction, or by agency. There are four types of
receipts. however. that are deducted from budget totals as undistributed
offsetting receipts. They are: (1) agencies' payments (including payments
by off-budget Federal entities) as employers into employees retirement
funds. (2) interest received by trust funds. (3) rents and royalties on the
Outer Continental Shelf lands. and (4) other interest (Le., interest collected
on Outer ContinentaJ Shelf money in deposit funds when such money is
transferred into the budget).
4. Processing
The data on payments and collections are reported by account symool
into the central accounting system, In turn, the data are extracted from
this system for use in the preparation of the MTS.
There are two major checks which are conducted to assure the
conSistency of the data reported:
1, Verification of payment data, The monthly payment activity reported by
Federal entities on their Statements of Transactions is compared to the
payment activity of Federal entities as reported by disbursing officers,
2, Verification of collection data. Reported collections appearing on
Statements of Transactions are compared to deposits as reported by
Federal Reserve banks.
5. Other Sources of Information About Federal Government
Financial Activities
• A Glossary of Terms Used in the Federal Budget Process, January
1993 (Available from the U.S. General Accounting Office, P.O. Box 6015,
Gaithersburg, Md, 20877). This glossary provides a basic reference
document of standardized definitions of terms used by the Federal
Government in the budgetmaking process.
• Daily Treasury Statement (Available from GPO, WaShington, D,C,
20402, on a subscription basis only), The Daily Treasury Statement is
published each working day of the Federal Government and provides data
on the cash and debt operations of the Treasury.
• Monthly Statement of the Public Debt of the United States
(Available from GPO. WaShington, D.C. 20402 on a subscription basis
only), This publication provides detailed information conceming the public
debt.
• Treasury Bulletin (Available from GPO. Washington. D.C. 20402, by
subscription or Single copy). Quarterly. Contains a mix of narrative. tables,
and charts on Treasury issues, Federal financial operations, intemational
statistics, and special reports.
• Budget of the United States Government, Fiscal Year 19 _
(Available from GPO, Washington, D.C. 20402). This publication is a
single volume which provides budget information and contains:
-Appendix. The Budget of the United States Government, FY 19_
-The United States Budget in Brief, FY 19 _
-Special Analyses
-Historical Tables
-Management of the United States Government
-Major Policy Initiatives
3. Notes on Outlays
Outlays are generally accounted for on the basis of checks issued,
electronic funds transferred. or cash payments made. Certain outlays do
not require issuance of cash or checks. An example is charges made
against appropriations for that part of employees' salaries withheld for
taxes or savings bond allotments - these are counted as payments to
• United States Government Annual Report and Appendix (Available
from Financial Management Service, U.S. Department of the Treasury,
Washington, DC, 20227). This annual report represents budgetary
results at the summary level. The appendix presents the individual receipt
and appropriation accounts at the detail level.
30
Scheduled Release
The release date for the September 1995 Statement
is subject to completion of year-end reporting requirements.
For sale by the Superintendent of Documents, U.S. Govemment Printing
OffIce. Washington, D.C. 20402 (202) 512-1800. The subscription price is
$35.00 per year (domestic), $43.75 per year (foreign).
No single copies are sold.
The Monthly Treasury Statement is now available on the Department of Commerce's Economic Bulletin Board.
For information call (202)482-1986.
,
r
I
~
I"
\.:'
'
\ ('
.
','~.,
I
,"
J '; (,
SEPTEMBER 1995
FEATURES
Profile of the Economy
Financial Operations
International Statistics
Spedal Reports
Produued and Published by
Department Q( the Treasury ~
Financial Management Service
'U
II~
Additional Financial Management Service
Releases on Federal Finances
Sold on a subscription basis only (exceptions noted) by the Superintendent of
Documents. U.S. Government Printing Office. Washington. D.C. 20402. t
Daily Treasury Statement. Provides summary data on the Treasury's cash and debt
operations for the Federal Government. Published each Federal working day.
Subscription price: $571.00 per year (domestic), $713.00 (foreign).
Monthly Treasury Statement of Receipts and Outlays of the United States
Government. Provides Federal budget results, including receipts and outlays of
funds, the surplus or deficit, and the means of financing the deficit or disposing of
the surplus. Preparation based on agency reporting. Subscription price: $36.00 per
year (domestic), $43.75 (foreign).
Consolidated Financial Statements of the United States Government (annual).
Provides information about Government financial operations on the accrual basis.
Please call Order and Information desk at (202) 783-3238 for prices.
United States Government Annual Report and Appendix. Annual Report presents
budgetary results at the summary level. Appendix presents the individual receipt
and appropriation accounts at the detail level. Annual Report single copy price:
$3.00. Appendix free from Financial Management Service.
t Subscription order form on inside back cover.
TREASURY BULLETIN STAFF
Regina M. Dennis-Downing
Stephen T. Wiley
Karen Y. Shepard
Bertha M. Butts
Bernice T. James
The Treasury Bulletin is issued quarterly in March, June, September, and December by the
Financial Management Service. The Reports Management Division, Financial Information,
compiles statistical data from sources within several Treasury departmental offices and bureaus.
Readers can contact the Financial Reports Branch at (202) 874-9913 or 9914 to inquire about any
of the published information. Suggestions are welcome.
The Treasury Bulletin staff can now also be reached on electronic mail.
treasury.bulletin@fms.sprint.com
Contents
SEPTEMBER 1995
FINANCIAL OPERATIONS
PROFILE OF THE ECONOMY
Analysis.--Summary of economic indicators ................................................................. 3
FEDERAL FISCAL OPERATIONS
FFO-A.--Chart: Monthly receipts and outlays ................................................................ 7
FFO-B.--Chart: Budget receipts by source .................................................................. 7
Analysis.--Summary of budget results for the third quarter fiscal 1995; Second-quarter receipts ........................ 8
FFO-l.--Summary of fiscal operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 10
FFO-2.--0n-budget and off-budget receipts by source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. II
FFO-3.--0n-budget and off-budget outlays by agency ........................................................ t 3
FEDERAL OBLIGATIONS
FO-l.--Gross obligations incurred within and outside the Federal Government by object class. . . . . . . . . . . . . . . . . . . . . . ..
FO-A.--Chart: Gross Federal obligations incurred outside the Federal Government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
FO-B.--Chart: Total gross Federal obligations ...............................................................
FO-2.--Gross obligations incurred outside the Federal Government by department or agency .........................
15
16
16
17
ACCOUNT OF THE U.S. TREASURY
UST-l.--Elements of changes in Federal Reserve and tax and loan note account balances .......................... " 19
FEDERAL DEBT
FD-I.--Summary of Federal debt .........................................................................
FD-2.--Interest-bearing public debt .......................................................................
FD-3.--Government account series .......................................................................
FD-4.--Interest-bearing securities issued by Government agencies ..............................................
FD-5.--Maturity distribution and average length of marketable interest-bearing public debt held by private investors ......
FD-6.--Debt subject to statutory limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FD-7 .--Treasury holdings of securities issued by Government corporations and other agencies. . . . . . . . . . . . . . . . . . . . . . ..
FD-A.--Chart: Average length of marketable debt. ...........................................................
FD-B.--Chart: Private holdings of Treasury marketable debt by maturity .........................................
PUBLIC DEBT OPERATIONS
TREASURY FINANCING .............................................................................
PDO-l.--Maturity schedules of interest-bearing marketable public debt securities other than regular weekly
and 52-week Treasury bills outstanding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PDO-2. --Offerings of bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PDO-3.--Public offerings of marketable securities other than regular weekly Treasury bills ..........................
PDO-4A.--Allotments by investor classes for public marketable securities other than bills ...........................
PDO-4B.--Allotments by investor classes for public marketable securities for bills other than regular weekly series .......
22
23
24
25
26
26
27
29
30
31
34
41
43
46
48
U.S. SAVINGS BONDS AND NOTES
SBN-I.--Sales and redemptions by series, cumulative ........................................................ 49
SBN-2.--Sales and redemptions by period, all series of savings bonds and notes combined ........................... 49
SBN-3.--Sales and redemptions by period, series E, EE, H, and HH ............................................. 50
OWNERSHIP OF FEDERAL SECURITIES
OFS-l.--Distribution of Federal securities by class of investors and type of issues .................................. 52
OFS-2.--Estimated ownership of public debt securities by private investors ....................................... 53
MARKET YIELDS
MY-l.--Treasury market bid yields at constant maturities: bills, notes, and bonds ..................................
MY-A.--Chart: Yields of Treasury securities ................................................................
MY-2.--Average yields of long-term Treasury, corporate, and municipal bonds by period ............................
MY-B.--Chart: Average yields of long-term Treasury, corporate, and municipal bonds ...............................
54
55
56
59
U.S. CURRENCY AND COIN OUTSTANDING AND IN CIRCULATION
USCC-l.--Amounts outstanding and in circulation; currency, coin .............................................. 60
IV
Contents
USCC-2.--Amounts outstanding and in circulation; by denomination, per capita comparative totals .................... 61
INTERNATIONAL STATISTICS
INTERNATIONAL FINANCIAL STATISTICS
IFS-l.--U.S. Reserve assets .............................................................................
IFS-2.--Selected U.S. liabilities to foreigners ...............................................................
IFS-3.--Nonmarketable U.S. Treasury bonds and notes issued to official institutions
and other residents of foreign countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFS-4.--Trade-weighted index of foreign currency value of the dollar ............................................
CAPITAL MOVEMENTS
LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES
CM -I -I. --Total liabilities by type of holder. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CM-I-2.--Totalliabilities by type, payable in dollars .........................................................
CM-I-3.--Totalliabilities by country ......................................................................
CM-I-4.--Totalliabilities by type and country ...............................................................
CM-A.--Chart: U.S. liabilities to foreigners reported by U.S. banks, brokers, and dealers with respect to
selected countries ..............................................................................
65
66
67
68
70
71
72
74
76
CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES
CM-II-l.--Total claims by type .......................................................................... 77
CM-II-2.--Total claims by country ........................................................................ 78
CM-II-3.--Total claims on foreigners by type and country reported by banks in the United States ...................... 80
SUPPLEMENTARY LIABILITIES AND CLAIMS DATA REPORTED BY BANKS IN THE UNITED STATES
CM-III-l.--Dollar liabilities to, and dollar claims on, foreigners in countries and areas not regularly reported separately ... 82
CM-B.--Chart: U.S. claims on foreigners reported by U.S. banks, brokers, and dealers with respect to selected countries ... 83
LIABILITIES TO, AND CLAIMS ON, FOREIGNERS REPORTED BY NONBANKING BUSINESS ENTERPRISES
IN THE UNITED STATES
CM-IV-l.--Totalliabilities and claims by type ..............................................................
CM-IV-2.--Totalliabilities by country .....................................................................
CM-IV-3.--Totalliabilities by type and country .............................................................
CM-IV-4.--Total claims by country .......................................................................
CM-IV-5.--Total claims by type and country ................................................................
CM-C.--Chart: Net foreign purchases of long-term domestic securities by selected countries .........................
84
85
87
89
91
93
TRANSACTIONS IN LONG-TERM SECURITIES BY FOREIGNERS REPORTED BY BANKS AND BROKERS
IN THE UNITED STATES
CM-V-I.--Foreign purchases and sales of long-term domestic securities by type ................................... 94
CM-V-2.--Foreign purchases and sales of long-term foreign securities by type ..................................... 94
CM-V-3.--Net foreign transactions in long-term domestic securities by type and country ............................ 95
CM-V-4.--Foreign purchases and sales of long-term securities, by type and country (second quarter) ................... 97
CM-V-5.--Foreign purchases and sales of long-term securities, by type and country (calendar year) .................... 99
CM-D.--Chart: Net purchases of long-term foreign securities by U.S. investors ...... , ............................ 101
FOREIGN CURRENCY POSITIONS
SUMMARY POSITIONS
FCP-I-l.--Weekly report of major market participants ....................................................... 103
FCP-I-2.--Monthly report of major market participants ...................................................... 103
FCP-I-3.--Quarterly report of large market participants ...................................................... 103
GERMAN MARK POSITIONS
FCP-II-l.--Weekly report of major market participants ..................................................... . 104
FCP-II-2.--Monthly report of major market participants ..................................................... . 104
FCP-II-3.--Quarterly report of large market participants ..................................................... . 104
v
Contents
JAPANESE YEN POSITIONS
FCP-III-l.--Weekly report of major market participants ...................................................... 105
FCP-III-2.--Monthly report of major market participants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 105
FCP-III-3.--Quarterly report of large market participants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 105
SWISS FRANC POSITIONS
FCP-IV-l.--Weekly report of major market participants ...................................................... 106
FCP-IV-2.--Monthly report of major market participants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 106
FCP-IV-3.--Quarterly report of large market participants ..................................................... 106
STERLING POSITIONS
FCP-V-I.--Weekly report of major market participants. . . . . . . . . . . . . . . . . .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. 107
FCP-V-2.--Monthly report of major market participants ...................................................... 107
FCP-V-3.--Quarterly report of large market participants ...................................................... 107
EXCHANGE STABILIZATION FUND
ESF-l.--Balance sheet ............................................................................... , 108
ESF-2.--Income and expense ........................................................................... 109
SPECIAL REPORTS
TRUST FUNDS
TF-15a.-~Highway
trust fund, highway account ............................................................ 113
GLOSSARy ........................................................................................ 114
ORDER FORM FOR TREASURY PUBLICATIONS AND SUBSCRIPTIONS ....................... Inside back cover
NOTES: Definitions for words shown in italics can be found in the glossary; Figures may not add to totals because of
rounding; p= Preliminary; n.a.= Not available; r= Revised.
VI
Nonquarterly Tables and Reports
For the convenience of the "Treasury Bulletin" user, nonquarterly tables and reports
are listed helm.., along with the issues in which fhey appear.
Issues
March
JUlle
Sept.
Dec.
Federal Fiscal Operations
FFO-4.--Summary of internal revenue collections by States
and other areas .................................... .
Special Reports
Consolidated Financial Statements of the United States
Government (CFS) excerpt .......................... .
Statement of Liabilities and Other Financial Commitments
of the United States Government. ..................... .
Trust Fund Reports:
Airport and Airway Trust Fund ..................... .
Aquatic Resources Trust Fund ..................... .
Black Lung Disability Trust Fund .................. .
Civil Service Retirement and Disability Fund ......... .
Federal Disability Insurance Trust Fund .............. .
Federal Hospital Insurance Trust Fund ............... .
Federal Old-Age and Survivors Insurance Trust Fund .. .
Federal Supplementary Medical Insurance Trust Fund .. .
Harbor Maintenance Trust Fund .................... .
Hazardous Substance Superfund ...................
Highway Trust Fund .............................
Inland Waterways Trust Fund ......................
Investments of specified trust accounts ..............
.
.
.
.
Leaking Underground Storage Tank Trust Fund ....... .
National Recreational Trails Trust Fund .............. .
National Service Life Insurance Fund ............... .
Nuclear Waste Fund ............................. .
Oil Spill Liability Trust Fund ...................... .
Railroad Retirement Account ...................... .
Reforestation Trust Fund .......................... .
Unemployment Trust Fund ........................ .
Uranium Enrichment Decontamination and
Decommissioning Fund ........................ .
Vaccine Injury Compensation Trust Fund " .......... .
(Published following the release of the CFS)
INAN~IAL
OPERATIONS
Profile of the Economy
Federal Fiscal Operations
Federal Obligations
Account of the U.S. Treasury
Federal Debt
Public Debt Operations
U.S. Savings Bonds and Notes
Ownership of Federal Securities
Market Yields
U.S. Currency and Coin Outstanding
" and in Circulation
3
Profile of the Economy
Real gross domestic product
GROWTH IN REAL GROSS DOMESTIC PRODUCT (GOP) has
slowed through the first half of the year from very high
rates at the end of 1994. Real GOP grew by 4.1 percent
across the four quarters of last year, the strongest showing
since 1987. So far in 1995, growth has averaged 1.6 percent
at an annual rate, but is expected to pick up by the end of
the year.
Inventory accumulation had accounted for a large share
of the rapid gains in 1994, and a slower pace of inventory
building than occurred in the first half of this year was expected. Consumer spending also moderated in 1995, from a
5.1 percent annual rate of growth in the final quarter of
1994 to 1.6 percent in the first quarter of 1995 and 2.5 percent in the second. The housing sector also softened early
in 1995, but has recently started to improve. Investment in
new capital equipment has continued to grow at a very
strong pace.
Inflation as measured by the fixed-weighted price index
for GOP increased at a 2.7 percent annual rate in the second
quarter, lower than in the first quarter and in line with the
gain over all of last year.
Consumer and producer prices
Inflation pressures started to build in the early months of
1995 but have since subsided. Monthly gains in the consumer price index (CPI) averaged 0.3 percent during the
first 5 months of 1995 before slowing to just 0.1 percent in
June and 0.2 percent in July.
Core inflation, or the CPI less food and energy, accelerated through the first 4 months of 1995 to about 4.2 percent
at an annual rate, much faster than the 2.6 percent increase
over all of 1994. The rise in 1994 had been the lowest in
nearly 30 years. In the 3 most recent months of this year,
core inflation has slowed to just a 2.5 percent pace.
The producer price index (PPI) for finished goods also
registered some rapid gains early in 1995 after very moder10~------------------------------------,
8
6
4
Consumer Prices*
(Percent change from a year earlier)
Excluding food and energy
I
2
o+-----------------------------------~
-2
4~~====~==~~~~==~==F=~==ry=~
85
86
87
88
89
90
91
92
93
94
95
-Year tick marks correspond with June data.
10
8
6
4
2
Producer Prices*
0
-2
-4
86
87
88
89
90
7
Growth of Real GDP
(Percent change, fourth quarter to fourth quarter)
6
5
4
3
2
o
85
86
87
88
89
90
91
92
... first two quarters at an annual rate
93
94
95'
ate growth in 1994, but those gains have moderated as well.
Through the first 7 months of the year, the PPI was up at a
1.8 percent annual pace, about in line with the 1.7 percent
over all of 1994.
Price increases at earlier stages of processing were particularly noticeable early in the year, but growth in prices
of intermediate goods and crude raw materials has since diminished.
Real disposable personal income and consumer spending
Growth of personal income improved in 1994, reflecting
stronger job growth as well as an increase in interest income after declines tied to falling interest rates over the
prior 3 years.
Real disposable (after-tax) personal income rose by 4.4
percent through the four quarters of 1994, up from 1.6 percent during 1993. In the first quarter of 1995, growth in real
disposable personal income increased rapidly but fell back
in the second quarter, reflecting softness in employment in
April and May. Through the first half of the year, real disposable income rose at just a 1.4 percent annual rate.
Real consumer spending rose by 3.5 percent in 1994, the
third successive year of growth. The pace of spending was
especially high in the final quarter of the year, but then
slowed considerably in the first quarter of 1995 before picking up slightly in the second quarter. Real spending growth
averaged 2.0 percent at an annual rate over the first half of
this year.
The personal savings rate averaged 4.1 percent in both
1994 and 1993, compared with readings of roughly 5.0 percent in the prior 2 years. In the first half of 1995, the savings rate moved up to 4.6 percent.
Industrial production and capacity utilization
(Percent change from a year earlier)
85
8.---------------------------------------~
91
92
93
94
95
Industrial production in manufacturing, mining, and utilities has weakened considerably in 1995 after expanding by
more than 6.0 percent over the 12 months of 1994. Industrial production has been about flat or down in every month
since February. Output in manufacturing, which accounts
for 85.0 percent of the total, is off this year at almost a 2.0
percent annual rate. Softer auto sales are partly responsible,
but weakness has been widespread. Production of autos and
PROFILE OF THE ECONOMY
4
light trucks declined at more than a 20.0 percent annual rate
through the first 7 months of the year. Some sectors have
been growing, particularly computer equipment and electrical machinery.
Capacity utilization tightened last year as production expanded. but has eased in recent months. The capacity utilization rate reached 85.5 percent in January. well above its
long-term average and above its pre-recession peak, but has
since dipped back below 83.4 percent.
Employment and unemployment
Job growth has slowed in 1995 after accelerating last
year. In 1994, employment growth as measured by the survey of nonfarm establishments averaged 294,000 a month,
totaling 3-112 million new jobs over the entire year. In the
first quarter of 1995, monthly job gains averaged 226,000,
but weakness in April and May limited job gains in the second quarter to an average of just 65,000 per month. Growth
since then has continued to be soft.
7~------------------------------------,
Civilian
Unemployment
Rate
6.5
(In percentages)
6
5.5
5
4.5
4
1995
600
~----------------------------------------~
Establishment
Employment
500
(Monthly change in thousands)
400
300
200
100
o
-1 00 L~~---r----'---r---r----"'--~-"--.---'r--Jr--J,--J
A
SON D
J
F M
1994
1995
Declines in manufacturing employment have held down
overall job growth. Factory jobs fell by 188,000 between
April and July after steady gains since early 1994. The private service-producing sector has continued to add large
numbers of new jobs in 1995, but at a much slower pace
than last year. Increases in this sector averaged 215,000 per
month in 1994, and 138,000 per month through the first 7
months of 1995.
After dipping to a recent low of 5.4 percent in February,
the unemployment rate has hovered between 5.5 and 5.8
percent for several months. This is well below levels at the
start of 1994 and is quite low by historical standards.
Nonfarm productivity and unit labor costs
Growth of nonfarm productivity, or output per workhour,
rose at a 2.7 percent annual rate in the first half of 1995.
This represents some improvement from increases of 1.3
percent during all of 1993 and 1.8 percent during 1994.
Productivity in manufacturing (a component of the nonfarm sector) has also risen at a 2.7 percent annual rate in
the first half of this year, but has slowed from growth averaging just under 4.0 percent during the previous 2 years.
Helping to keep inflation in check, unit labor costs in the
nonfarm sector remain low so far in 1995, rising by a modest 1.0 percent annual rate this year, compared to 1.4 percent in 1994. In manufacturing, unit labor costs have
declined at a 0.4 percent pace this year after falling by 1.7
percent during all of 1993 and by 2.4 percent durin,g 1994.
The declines have contributed to increased U.S. eompetitiveness in international markets for manufactured goods.
Current account balance
The current account balance is the most comprehensive
measure of U.S. international transactions. The current account deficit has widened sharply since 1991, to $151 billion in 1994 and to $162 billion at an annual rate in the first
quarter of 1995. Much of this reflects the economic recovery here, which has been drawing in imports at a faster pace
than the rate of expansion in exports.
A larger merchandise trade deficit accounts for most of
the deterioration. The merchandise trade deficit reached
$166 billion in 1994, and through the first half of this year,
climbed to an annual rate of $188 billion.
International trade in services shows a $61 billion surplus
at an annual rate through the first half of this year, in line
with figures for the previous 3 years.
The balance on income payments, which includes interest, dividends, and direct investment income, shifted to a
deficit of $9 bil1ion in 1994 from a surplus of the same
amount in 1993, and the deficit widened even further in the
first quarter of 1995. Payments on foreign assets in the U.S.
rose much more sharply than receipts on U.S. assets
abroad, as interest rates and profits rose in this country
faster than they did overseas.
Exchange rate of the dollar
The dollar has been declining steadily since January
1994, with an interruption in the fall of last year. Declines
have been steepest against the yen and the deutschemark
(DM), with more moderate decreases against currencies of
other trading partners. In the case of the Canadian dollar
and especially the Mexican peso, the dollar has appreciated.
The dollar declined about 6-1/2 percent over 1994, based
on the Federal Reserve Board's trade-weighted index of the
dollar against G-l a currencies. Since the end of 1994, the
dollar has declined by another 8-1/2 percent, mainly reflecting weakness against the yen and the OM, although recently there has been some marked improvement against
these currencies.
Many factors determine the level of exchange rates in international currency markets. The large U.S. current account deficit has likely played a role. Underlying economic
fundamentals in the United States remain sound, however.
PROFILE OF THE ECONOMY
Interest rates
6
...---------------------~
Short-term Interest Rates
(In percentages; Weekly data')
Federal funds -
5.5
5
Federal budget deficit
4.5
3-month Treasury bills -
4
3.5
MJ
SNJMMJ
SNJMMJ
1993
1994
1995
• Average lor week ending Friday; Federal funds ending Wednesday.
9
8.5
Recently the housing market has begun to firm, with
sales rising sharply in May and June and new housIng starts moving up again. The renewed activity is the result of declines in mortgage interest rates of more than one
percentage point from last year's high levels. Improved consumer confidence in recent months has also contributed to
the rebound in housing.
Construction of single-family homes picked up in June
and July as the higher rate of sales reduced excess inventory of unsold new homes. The multi-family housing market has leveled off so far this year after a resurgence in
multi-family construction during 1994. The outlook
through the rest of the year is for a moderate level of acti vity in the housing sector.
~ome
Long-term interest rates have declined since the beginning of the year as the pace of economic growth moderated
from rapid gains in the last half of 1994 and inflation pressures ebbed. In July, the Federal Reserve Board eased
monetary poHcy slightly with a 25 basis-point decrease in
the target for the Federal funds rate to 5-3/4 percent. The
discount rate was left unchanged.
6.5
5
.------------------------~
Long-term Interest Rates
(In percentages; Weekly data')
8
7.5
30-year bond -
7
In fiscal 1994, the Federal budget deficit fell to $203 billion, $52 billion lower than the $255 billion deficit in fiscal
1993 and $87 billion below the record $290 billion deficit
in fiscal 1992. The 2-year drop was the largest in history.
Strong economic growth and passage of the Omnibus
Budget Reconciliation Act of 1993 were responsible for the
improvement. Outlays rose by only 3.7 percent in fiscal
1994, while revenues expanded by 9.0 percent.
The deficit is projected to decline further in fiscal 1995 to
$160 billion. This would mark the third straight year of deficit reduction, the first such successive declines since the
Truman Administration. Through the first 10 months of fiscal 1995, the deficit is $46 billion below the same months
last year, although adjusted for timing differences and excluding deposit insurance, that figure is closer to an improvement of $27 billion.
In fiscal 1994, the deficit represented 3.1 percent of GDP
and is expected to drop to 2.3 percent this flscal year. By
fiscal 2000, it is projected to decline to just 1.4 percent of
GOP, the lowest since 1974.
6.5
-
Net national saving and investment
1O-year note
6
5.5
5
~mmmmmmmmmmmmmrrmmmmmmmmmmmmmrrmmmmmrrmmmmmTI~
MJ
1993
S
N
J
M
MJ
1994
S
N
J
M
M
J
1995
The yield on the 30-year Treasury bond is now close to
6.9 percent, compared with a recent peak of 8.1 percent in
November. Mortgage interest rates have also fallen from
levels at the end of last year.
The action to ease monetary policy followed seven tightening moves taken bet\\,een February 1994 and February
1995 as a pre-emptive measure to avoid the threat of future
inflation as economic growth accelerated. Those seven
moves translated into a rise of roughly 300 basis points, or
3 percentage points, in short-term rates.
Housing
Housing activity weakened early this year as rising mortgage interest rates late in 1994 limited demand for new
homes. In 1994, housing starts rose by more than 13.0 percent to 1.46 million units, the highest annual total since
1988. Starts then dropped back to a 1.31 million-unit rate in
the first quarter and to 1.28 million units in the second.
National saving, net of depreciation, rose to 4.4 percent
of the net national product (NNP) in the first quarter of
1995 from 3.4 percent in 1994 and as low as 1.2 percent in
1992. Although the savings rate has improved in recent
years, it is still low by historical standards. The rate averaged 8.0 percent or more in the 1950's through the 1970's.
The main source of the recent improvement was an increase in personal saving to 5.3 percent of NNP for the first
quarter of 1995 from 4.5 percent in 1994. In addition, there
was a reduction of Government dissaving to 3.0 percent of
NNP for the first quarter of 1995 from a high of 6.0 percent
in 1992. The current figure is still considerably greater than
in the 1950's and 1960's, when it accounted for less than
l.0 percent of NNP. Private saving, at 7.4 percent for the
first quarter of 1995, was up from 6.7 percent in 1994 but
still well below averages of more than 9.5 percent in the
1960' sand 1970' s.
Total net investment was up to 3.5 percent of NNP in the
first quarter of 1995 from 2.9 percent in 1994 and a low of
1.4 percent in 1992. Net investment had averaged over 8.0
percent until the 1980's. In the first quarter of 1995, domestic investment rose to 6.1 percent of NNP from 5.3 percent
the previous year. Foreign inflows also increased. Domestic
investment had averaged near 8.0 percent of NNP in the
1950's through the 1970's.
0
6
INTRODUCTION: Federal Fiscal Operations
Budget authority usually takes the form of appropriations
that allow obligations to be incurred and payments to be made.
Reappropriations are Congressional actions that extend the
availability of unobligated amounts that have expired or would
otherwise expire. These are counted as new budget authority
in the fiscal year of the legislation in which the reappropriation
act is included, regardless of when the amounts were originally
appropriated or when they would otherwise lapse.
Obligations generally are liquidated by the issuance of
checks or the disbursement of cash--outlays. Obligations may
also be liquidated (and outlays recorded) by the accrual of
interest on public issues of Treasury debt securities (including
an increase in redemption value of bonds outstanding); or by
the issuance of bonds, debentures, notes, monetary credits, or
electronic payments.
Refunds of collections generally are treated as reductions
of collections, whereas payments for earned-income tax credits in excess of tax liabilities are treated as outlays. Outlays
during a fiscal year may be for payment of obligations incurred
in prior years or in the same year. Outlays, therefore, flow in
part from unexpended balances of prior year budget authority
and from budget authority provided for the year in which the
money is spent. Total outlays include both budget and offbudget outlays and are stated net of offsetting collections.
Receipts are reported in the tables as either budget receipts
or offsetting collections. They are collections from the public,
excluding receipts offset against outlays. These, also called
governmental receipts, consist mainly of tax receipts (including social insurance taxes), receipts from court fines, certain
licenses, and deposits of earnings by the Federal Reserve
system. Refunds of receipts are treated as deductions from
gross receipts.
Offsetting collections from other Government accounts
or the public are of a business-type or market-oriented nature.
They are classified as either collections credited to appropriations or fund accounts, or offsetting receipts (i.e., amounts
deposited in receipt accounts). The former normally can be
used without appropriation act by Congress. These occur in
two instances: (I) when authorized by law. amounts collected
for materials or services are treated as reimbursements to
appropriations. and (2) in the three types of revolving funds
(public enterprise. intragovernmental, and trust); collections
are netted against spending, and outlays are reported as the net
amount.
Offsetting receipts in receipt accounts cannot be used
without appropriation. They are subdivided into two categories: (I) proprietary receipts, or collections from the public,
offset against outlays by agency and by function, and (2)
intra-governmental funds. or payments into receipt accounts
from governmental appropriation or fund accounts. They fi-
nance operations within and between Government agencies
and are credited with coHections from other Government
accounts.
lntrabudgetary transactions are subdivided into three
categories: (I) interfund transactions--payments are from one
fund group (either Federal funds or trust funds) to a receipt
account in the other fund group; (2) Federal intrafund transactions--payments and receipts both occur within the Federal
fund group; and (3) trust intrafund transactions--payments and
receipts both occur within the trust fund group.
Offsetting receipts are generaHy deducted from budget
authority and outlays by function, subfunction, or agency.
There are four types of receipts, however, that are deducted
from budget totals as undistributed offsetting receipts. They
are: (I) agencies' payments (including payments by off-budget
Federal entities) as employers into employees' retirement
funds; (2) interest received by trust funds; (3) rents and royalties on the Outer Continental Shelflands; and (4) other interest
(i.e., that coHected on Outer Continental Shelf money in
deposit funds when such money is transferred into the budget).
The Government has used the unified budget concept as
a foundation for its budgetary analysis and presentation since
1969. The concept calls for the budget to include all of the
Government's fiscal transactions with the public. Since 1971,
however, various laws have been enacted removing several
Federal entities from (or creating them outside of) the budget.
Other laws have moved certain off-budget Federal entities
onto the budget. Under current law, the off-budget Federal
entities consist of the two Social Security trust funds, Federal
old-age and survivors insurance, and Federal disability insurance.
Although an off-budget Federal entity's receipts, outlays,
and surplus or deficit ordinarily are not subject to targets sel
by the congressional resolution, the Balanced Budget and
Emergency Deficit Control Act of 1985 (commonly known as
the Gramm-Rudman-Hollings Act) included off-budget surplus or deficit in calculating deficit targets under that act and
in calculating excess deficit. Partly for this reason, attention
has focused on both on- and off-budget receipts, outlays, and
deficit of the Government.
Tables FFO-l, FFO-2, and FFO-3 are published quarterly and cover 5 years of data, estimates for 2 years, detail for
13 months, and fiscal year-to-date data. They provide a summary of data relating to Federal fiscal operations reported by
Federal entities and disbursing officers, and daily reports from
the Federal Reserve banks. They also detail accounting transactions affecting receipts and outlays of the Government and
off-budget Federal entities and their related effect on assets
and liabilities of the Government. Data are derived from the
FEDERAL FISCAL OPERATIONS
Monthly Treasury Statement of Receipts and Outlays of the
United States Government.
• Table FFO-l summarizes the amount of total receipts,
outlays. and surplus or deficit, as well as transactions in
Federal securities, monetary assets, and balances in Treasury
operating cash.
• Table FFO-2 includes on- and off-budget receipts by
source. Amounts represent income taxes, social insurance
taxes, net contributions for other insurance and retirement,
excise taxes, estate and gift taxes, customs duties, and net
miscellaneous receipts.
• Table FFO-3 details on- and off-budget outlays by
agency.
• Table FFO-4 (Fall issue) summarizes internal revenue
collections by States and other areas and by type of tax.
Amounts reported are collections made in a fiscal year. They
140 ,-----------------------------------,
120
7
span several tax liability years because they consist of prepayments (i.e., estimated tax payments and taxes withheld by
employers for individual income and Social Security taxes),
of payments made with tax returns, and of subsequent payments made after tax returns are due or are filed (i.e., payments
with delinquent returns or on delinquent accounts).
It is important to note that these data do not necessarily
reflect the Federal tax burden of individual States. Amounts
are reported based on the primary filing address provided by
each taxpayer or reporting entity. For multi state corporations,
the address may retlect only the State where such acorporation
reported its taxes from a principal office rather than other
States where income was earned or where individual income
and Social Security taxes were withheld. In addition, an individual may reside in one State and work in another.
CHART FFO-A.-Monthly Receipts and Outlays
(In billions of dollars)
100
80
60
On-budget
receipts
40
Off-budget
receipts
..
.,..
--
...
. .. ..
..
On-budget
outlays
20
Off-budget
outlays
o +--,--,--,------,--,--,--,---,-----1
A
SON
1994
DJ
F
MAMJ
1995
J
600 - , - - - - -
500
o
1995
•
1994
400
CHART FFO-B.-Budget Receipts by
Source, through Third
Quarter, Fiscal Years
1994-1995
300
200
100
(In billions of dollars)
Source: "Monthly Treasury Statement of Receipts and Outlays of
the United States Government"
o
Individual Corp. Social Excise Estate/ Custom Misc.
income income ins.
taxes
gift
duties receipts
taxes
taxes taxes
taxes
FEDERAL FISCAL OPERATIONS
8
Summary of Budget Results for the Third Quarter, Fiscal 1995
----------------------~-----~-----
The Federal budget position
registered marked improvement in the third fiscal quarter
and for all of the three quarters
of the fiscal year. In recognition
of the improved outlook, revised budget estimates released
in July in the Administration's
Mid-Session Budget Review
placed the deficit for the entire
fiscal year at $160.0 billion, or
significantly lower than the
deficit of $192.5 billion projected in the budget document
released in February.
Total On- and Off-Budget Results and Financing of the U.S. Government
[In millions of dollars}
April-June
Actual fiscal year
10 date
Total on- and off-budget results:
Total receipts. . . . . . . . . . . . . . . . . . . . . .
403,664
1,018,048
On-budget receipts. . . . . . . . . . . . . . .
303,195
751,934
Off-budget receipts . . . . . . . _ . _ . . . . . . . .
100,470
266,114
Totaloutlays ....... _ . . . . . . . . . . . . . .
379,324
1,137,702
On-budget outlays . . . . . . . . . . . . . - . . . . . . .
312,687
931,546
Off-budget outlays . . . . . . . . . . . . . . . . . . . . .
66,636
206,156
Total surplus or deficit (-) _..................
24,341
-119,654
On-budget surplus or deficit (-) .. _ . . . . . . . . . . . .
-9,492
-179,613
Off-budget surplus or deficit (-) . . . . . . . . . . . . . . .
33,833
59,958
Means of financing:
Borrowing from the public. . . . . .. . . . . . . . . . .
25,593
151,208
Reduction of operating cash " . . . . . . .
-42,444
-24,598
Other means . . . . . . . . . . . . . . . . . . . . . . . . _ _ _ _ _ _ _ _-;;--77',4=-=9C7
0_ _----c""-6"",9='=5C7
5_
Total on- and off-budget financing _
-24,341
119,654
In the third quarter (the second calendar quarter), the
budget was in surplus by $24.3 billion, representing an improvement of $24.1 billion from the narrow surplus of $0.2
billion in the same quarter a year earlier. That improvement
included a swing of $8.1 billion in the deposit insurance
account, largely reflecting sales by deposit insurance agencies of previously acquired assets. Excluding deposit insurance, the surplus widened by $16.0 billion from a year earlier,
with some of that improvement due to the timing of the flow
of tax revenue.
Total receipts rose by a sizable 11.2 percent in the third
quarter from the same quarter a year earlier. Included in that
total was an increase of 17.2 percent in net corporate income
tax revenues, indicating continued growth of corporate profits, though possibly also reflecting changes in the pattern of
timing of payments.
Also boosting receipts in the quarter was a large increase
in the inflow of individual income tax payments around the
April15 filing date. Much of that represented a shift in timing
of payments, as individuals paid a smaller portion of 1994
liability in the form of quarterly estimated payments and a
greater portion as final settlements than they had done a year
earlier. That shift in timing apparently was at least partly in
response to altered rules governing underpayment of quarterly estimated liability. Also, high-income taxpayers were
faced with liability for a full year under the higher tax rates
enacted in the Omnibus Reconciliation Act of 1993, along
with an installment of the retroactive portion of the higher
1993 liability imposed by that Act. As a partial offset to higher
final settlements around the Aprill 5 filing d:lte, tax refunds
were also sharply higher in the quart~r. The Internal Revenue
Service has been taking extra precautions to avoid paying
refunds on fraudulent claims, so that some refunds that normally would have been paid in the second quarter were
delayed until the third quarter.
Abo on the revenue side was a solid 6.2 percent increase
in withheld income and employment taxes, which was a bit
stronger than the 5. I percent increase carried in the national
accounts for the underlying wage and salary tax base. Remittances of earnings by Federal Reserve banks were up sharply
from a year earlier in response to higher interest rates and to
gains on foreign currency holdings resulting from fluctuations in the value of the dollar in foreign exchange markets.
Total budget outlays rose by 4.6 percent in the quarter from
a year earlier, or by 6.9 percent if the deposit insurance
account is excluded. By functional category, sizable increases were recorded for net interest (16.4 percent), Medicare (15.6 percent), and income security (12.3 percent).
Expansion of the earned income tax credit was largely responsible for the size of the increase of the latter category,
though the rate of decline in unemployment insurance benefits has narrowed sharply as the unemployment rate has
begun to level out.
For the entire first three quarters of 1995, the Federal
budget was in deficit by $119.7 billion, compared with a
deficit of $149.9 billion a year earlier. That improvement of
$30.2 billion is narrowed to $18.3 billion if the deposit
insurance account is excluded. Receipts rose by 8.3 percent
from the first three quarters of fiscal 1994, while outlays
exclusive of the deposit insurance account increased by 5.5
percent.
In June, the Administration released a set of policy proposals designed to achieve budget balance by the middle of the
next decade. Budget projections were updated in the MidSession Review released in July. Based on the revised MidSession economic assumptions, these policy proposals were
projected to result in a balanced budget by the year 2004.
The revised budget estimate for fiscal 1995 was unaffected
by these policy proposals. Rather, the markdown of the
projected deficit to $160.0 billion reflected more favorable
receipts and outlay experience than had been expected earlier
in the year.
0
FEDERAL FISCAL OPERATIONS
9
Second-Quarter Receipts
1994, while there was a $0.9 billion adjustment made in the
second quarter of fiscal 1995.
The following capsule analysis of budget receipts, by source, for the second quarter of fiscal
1995 supplements fiscal data reported in the June
issue of the "Treasury Bulletin." At the time of that
issue's release, not enough data were available to
analyze adequately collections for the quarter.
Contributions for other insurance and retirementContributions for other insurance and retirement were $1.2
billion. There was a negligible change in receipts from the
second quarter of fiscal 1994. The growth in contributions will
remain flat over the next few years as the number of employees
covered by the Federal employees' retirement system (FERS)
grows slowly relative to those covered under the civil service
retirement system (CSRS).
Individual income taxes-Individual income tax receipts
were $139.9 billion for the second quarter of fiscal 1995. This
is an increase of $7.7 billion over the comparable quarter for
fiscal 1994. Withheld receipts increased by $17.7 billion and
non-withheld receipts decreased by $8.1 billion in this period.
There was an increase of $1.9 billion in refunds over the
comparable fiscal 1994 quarter. There was a decrease of $0.9
billion in accounting adjustments between individual income
tax receipts and the Social Security and Medicare trust funds
in the second quarter of fiscal 1995 in comparison to the second
quarter of fiscal 1994.
Corporate income taxes-Net corporate receipts totaled
$20.2 billion. This was $0.9 billion lower than net receipts for
the comparable quarter of fiscal 1994. The $0.9 billion figure
consists of $2.2 billion in higher refunds less $1.4 billion in
additional estimated and final payments. The decrease in net
receipts mainly reflects higher refunds and lower March final
payments (due to new estimated payment rules) offsetting
increased corporate profits.
Employment taxes and contributions-Employment
taxes and contributions receipts were $113.3 billion, an increase of $8.5 billion over the comparable prior year quarter.
Receipts to the Old-Age Survivors Insurance, the Disability
Insurance, and the Hospital Insurance trust funds increased by
$0.9 billion, $5.5 billion, and $2.1 billion, respectively. There
was a $-1.8 billion accounting adjustment for prior years'
employment tax liabilities made in the second quarter of fiscal
Unemployment insurance-Unemployment insurance receipts were $4.0 billion, which is the same as they were for the
comparable quarter of fiscal 1994. State taxes deposited in the
U.S. Treasury increased by $0.1 billion. There were negligible
changes in the Federal Unemployment Tax Act (FUTA) and
railroad unemployment tax receipts, compared with the comparable quarter of fiscal 1994.
Excise taxes-Net excise tax receipts were $13.2 billion,
an increase of $0.7 billion over the comparable prior year
quarter. The majority of this increase is attributable to higher
receipts from the Highway Trust Fund taxes. Total excise tax
refunds for the quarter were $0.6 billion, an increase of $0.2
billion over the comparable prior year quarter.
Estate and gift taxes-Estate and gift tax receipts were
$3.1 billion. These receipts represent a decrease of $0.4 billion
over the previous quarter, as well as a decrease of $0.3 billion
over the same quarter in the previous year.
Customs duties-Customs receipts net of refunds were
$4.4 billion. This is a decrease of $0.3 billion from the comparable prior year quarter. It is due to an increase in refunds
attributable to retroactive extension of the Generalized System
of Preferences (GSP).
Miscellaneous receipts-Net miscellaneous receipts were
$7.5 billion, an increase of $2.4 billion over the comparable
prior year quarter. The bulk of the increase is attributable to
higher deposits of Federal Reserve earnings.
0
Second Quarter Fiscal 1995 Net Budget Receipts, by Source
(In billions of dollars]
January
Source
February
March
Individual income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . .
79.2
33.9
26.8
Corporate income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3
2.1
14.9
Employment taxes and contributions . . . . . . . . . . . . . . . . . . . .
39.0
35.7
38.6
Unemployment insurance . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1
2.6
0.3
Contibutions for other insurance and retirement . . . . . . . . . . . . . .
0.4
0.4
0.4
Excise taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.6
3.5
5.1
Estate and gift taxes ............................
1.0
0.9
1.2
Customs duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,5
1.4
1.5
Miscellaneous receipts ........................... _ _ _ _ _~1.~8_ _ _ _ _ _-'2~.1'_____ _ _ _ _--=3::.:.6'___
=
Total budget receipts ......................... . ========~13~1.~9~==~~=====82=.6==~~~======92~.4~=
FEDERAL FISCAL OPERATIONS
10
TABLE FFO-l.--Summary of Fiscal Operations
[In millions 01 dollars. Source: "Monlhly Treasury Statement of Receipts and Oullays of the Uniled States Government"]
Total on-budget and off-budget results
Fiscal year
or month
Total
receipts
(1)
On-budget
receipts
(2)
Off-budget
receipts
(3)
Total
outlays
(4)
On-budget
out/ays
(5)
Off-budget
outlays
(6)
Total
surplus
or
deficit
(-)
(7)
On-budget
surplus
or
deficit
(-)
(8)
Means of financing
-net transactions
Borrowing from
the public-Off-budget
Federal
surplus
securities
Public
or
deficit
debt
(-)
securities
(9)
(10)
1990 1 ............
1991' ............
1992~ ............
1993 ............
1994' ............
1,031,462
1,054,260
1,091,692
1,153,175
1,257,187
749,806
760,375
789,266
841,241
922,161
281,656
293,885
302,426
311,934
335,026
1,251,850
1,322,989
1,381,895
1,408,122
1,460,557
1,026,785
1,081,302
1,129,336
1,142,110
1,181,185
225,065
241,687
252,559
266,012
279,372
-220,388
-268,729
-290,204
-254,948
-203,370
-276,979
-320,926
-340,071
-300,869
-259,024
56,590
52,198
49,867
45,922
55,654
331,520
407,664
403,396
342,629
288,987
1995 - Est. .........
1996 - Est.. ........
1,346,414
1,415,456
995,158
1,045,095
351,256
370,361
1,538,920
1,612,128
1,246,936
1,307,105
291,984
305,023
-192,506
-196,671
-251,778
-262,010
59,272
65,338
319,244
337,572
1994 - June ........
July ........
Aug ........
Sept. .......
Oct. ........
Nov.........
1995 - Jan.........
Feb .........
Mar. ........
Apr.........
May ........
June ........
138,124
84,827
97,338
135,895
89,024
87,673
130,810
131,801
82,544
92,532
165,392
90,405
147,868
106,014
60,145
70,949
105,212
65,384
62,083
103,860
101,036
54,405
61,970
126,170
61,027
115,998
32,110
24,681
26,389
30,683
23,639
25,590
26,950
30,765
28,139
30,562
39,222
29,378
31,870
123,275
118,025
121,608
131,903
120,365
124,915
134,941
115,171
120,527
142,458
115,673
129,355
134,296
108,166
93,164
95,279
103,189
95,307
99,464
123,643
89,889
94,050
116,507
90,628
102,581
119,478
15,108
24,861
26,329
28,714
25,059
25,452
11,297
25,282
26,478
25,951
25,045
26,773
14,818
14,850
-33,198
-24,270
3,993
-31,342
-37,242
-4,130
16,629
-37,983
-49,927
49,720
-38,950
13,571
-2,152
·33,018
-24,330
2,024
-29,922
-37,381
-19,783
11,147
-39,644
-54,537
35,542
-41,554
-3,480
17,002
-180
60
1,969
-1,420
138
15,653
5,483
1,661
4,610
14,178
2,604
17,051
35,021
-9,584
54,926
-17
40,995
43,843
20,412
15,370
38,430
9,506
-11,283
51,902
46,192
Fiscal 1995 to date ..
1,018,048
751,934
266,114
1,137,702
931,546
206,156
-119,654
-179,613
59,958
255,368
Transactions
not applied
to year's
surplus or
deficit
(19)
Total
financing
(20)
Dec.........
Fiscal year
or month
Borrowing from the public-Federal securities, can.
Investmentsol
Agency
Governsecuriment
Total
ties
accounts
10+11-12
(11)
(12)
(13)
Means of financing--net transactions, can.
Cash and moneta!y assets (deduct)
U.S.
Treasury
operating
cash
(14)
Special
drawing
rights
(15)
1,179
-1,444
1,389
-907
768
Other
(16)
Reserve
position
on the U.S.
quota in
the IMF
(deduct)
(17)
Other
(18)
172
215
672
2,333
-35
195
-17,406
17,043
-301
831
............
............
............
7,278
-15,018
500
6,652
3,665
118,708
115,844
92,978
100,663
107,655
220,091
276,802
310,918
248,619
184,998
-818
1,329
17,305
-6,283
-16,564
1995 - Est. .........
1996 - Est.. ........
-1,427
480
109,883
120,901
207,936
217,151
4,058
1994 - June ........
July ........
Aug .........
Sept. .......
Oct. ........
Nov.........
Dec.........
1995 - Jan.........
Feb.........
Mar.........
Apr.........
May ........
June ........
127
373
-401
916
-2,106
326
3
-21
59
4
20
193
198
33,250
-6,166
2,721
12,894
6,432
3,641
33,732
2,012
-483
-4,135
16,375
7,363
37,899
1,898
-3,045
51,804
-11,996
32,457
40,528
-13,316
13,337
38,972
13,645
-27,638
44,732
8,491
23,797
-30,705
9,802
5,855
480
-9,366
-476
23,263
-13,999
-17,747
19,973
-11,841
34,312
209
-34
141
134
117
-70
21
116
1,003
494
92
179
-54
-3,526
921
1,684
-2,922
2,658
-361
-2,603
3,571
635
-606
4,947
2,511
-3,725
348
-7
-23
-92
269
-297
-7
87
733
563
794
68
-143
4,026
6,343
-16,010
10,919
2,347
-13,440
14,333
-2,985
-12,669
18,909
3,697
-14,928
8,249
54
75
80
59
62
60
48
27
63
79
-14,850
33,198
24,270
-3,993
31,342
37,242
4,130
-16,629
37,983
49,927
-49,720
38,950
-13,571
Fiscal 1995 to date ..
-1,324
102,836
151,208
24,598
1,898
7,028
2,066
3,513
525
119,654
1990'
1991 1
1992 1
1993'
1994'
............
............
• less than $500.000.
, Data for the period do not reflect postyear adjustments published in the -Monthly Treasury
Statement of ReceiptS and Outlays of the United States Governmen1," the source for this table.
-70
-4,464
18,654
-1,429
-992
565
4,969
263
350
715
-11,372
-20,480
220,388
268,729
290,204
254,948
203,370
192,506
196,671
56
52
n
Note.-On-budget and ofl·budgeteSlimates are based on the fiscal 1996 budget. released by
the Off,ce of Management and Budget on February 6, '995.
FEDERAL FISCAL OPERATIONS
11
TABLE FFO-2.--0n-budget and Off-budget Receipts by Source
lin millions of dollars. Source: "Monthly Treasury Statement of Receipts and Outlays of the United States Government"]
Income taxes
Fiscal year
or month
Withheld
(1)
Individual
Other
Refunds
(2)
(3)
Net
(4)
Gross
(5)
Corporation
Refunds
(6)
Net
(7)
Net income
taxes
(8)
Social insurance
taxes and contributions
Employment taxes and conlributions
Old-age, disability, and
hospital insurance
Gross
Refunds
Net
(9)
(11)
(10)
1990 1................
19911 ................
19921 ................
1993 1................
1994 1................
390,480
404,152
408,352
43D,427
459,699
149,428
142,725
149,372
154,800
160,117
73,024
79,050
81,259
75,546
77,077
466,884
467,827
476,465
509,680
542,738
110,017
113,599
117,951
131,548
154,205
16,510
15,513
17,680
14,027
13,820
93,507
98,086
100,270
117,520
140,385
560,391
565,913
576,735
627,200
683,123
351,291
367,558
382,339
393,688
425,985
1995 - Est.. ...........
1996- Est.............
487,598
509,875
183,595
199,985
82,733
86,488
588,460
623,372
165,774
173,020
14,910
15,571
150,864
157,449
739,324
780,821
447,913
472,763
1994 - June ...........
July..... '" ....
Aug............
Sept.. ..........
Oct. ...........
Nov............
Dec ............
1995 - Jan.............
Feb............
Mar............
Apr. ...........
May ...........
June ...........
37,724
35,360
40,459
35,201
40,480
37,882
50,680
49,432
40,643
44,561
32,447
43,414
40,901
21,994
3,799
4,016
24,812
4,339
1,859
3,214
29,975
1,065
4,302
64,953
8,703
23,061
1,596
1,786
1,305
2,050
1,160
2,327
158
245
7,845
22,016
20,959
22,388
2,505
58,123
37,372
43,170
57,964
43,659
37,414
53,736
79,162
33,863
26,845
76,441
29,729
61,457
29,812
4,581
4,079
28,921
5,513
2,682
32,616
5,415
3,483
17,238
25,779
3,572
36,645
697
776
971
1,656
2,458
1,185
700
2,157
1,423
2,375
2,297
1,379
768
29,114
3,805
3,108
27,265
3,055
1,497
31,915
3,258
2,060
14,863
23,482
2,193
35,876
87,237
41,177
46,278
85,229
46,714
38,911
85,651
82,420
35,923
41,709
99,923
31,922
97,333
40,929
32,763
33,630
39,308
30,917
33,524
35,391
38,550
35,290
38,234
50,094
36,812
40,623
Fiscal 1995 to date .....
380,440
141,471
79,604
442,307
132,943
14,743
118,200
560,507
339,437
Fiscal year
or month
Social insurance taxes and contributions, can.
Employment taxes and contributions, con.
Unemployment insurance
Net
Net
employment
unemployment
Railroad retirement accounts
taxes and
Refunds
insurance
contributions
Gross
Refunds
Net
Gross
(17)
(16)
(18)
(14)
(15)
(12)
(13)
1990 1 ...........
1991 1 ...........
1
1992 ...........
1993 1 ...........
1994 1 ...........
3,721
3,792
3,961
3,793
3,767
1995 - Est... ......
1996- Est.........
3,881
3,904
1994 - June ...... ,
July .......
Aug ........
Sept. ......
Oct. ...... ,
Nov........
Dec........
1995-Jan........
Feb........
Mar........
Apr........
May ..... "
June .......
-76
355
406
307
352
262
317
441
377
414
330
419
-18
Fiscal 1995 to date .
2,893
See footnotes at end of table.
42
-8
5
11
44
-2
16
1
7
2
1
5
15
3,679
3,801
3,956
3,781
3,723
353,891
370,526
385,491
396,939
428,810
21,795
21,068
23,557
26,680
28,114
3,891
3,904
451,794
476,667
28,057
28,198
-76
356
390
306
346
262
317
441
377
412
329
414
-18
40,853
32,222
34,020
39,614
31,263
33,786
35,708
38,990
35,667
38,646
50,423
37,226
40,605
301
1,412
4,890
353
1,077
3,253
234
1,071
2,630
337
3,088
10,612
327
11
12
10
7
4
3
4
2
2,878
342,315
22,629
160
146
147
124
110
1,082
831
804
531
898
350,212
366,727
381,535
393,158
425,087
447,913
472,763
898
40,929
31,866
33,630
39,308
30,917
33,524
35,391
38,550
35,290
38,234
50,094
36,812
40,623
339,437
Nel contributions for other
insurance and retirement
Federal
Other
employees
retirement
retirement
Total
(19)
(20)
(21)
21,635
20,922
23,410
26,556
28,004
4,405
4,454
4,683
4,709
4,563
117
108
105
96
98
4,522
4,563
4,788
4,805
4,661
28,057
28,198
4,462
4,355
96
96
4,558
4,451
17
27
11
7
290
1,399
4,880
346
1,073
3,249
230
1,069
2,630
320
3,061
10,601
320
355
419
382
403
342
344
413
374
350
406
348
348
408
11
6
9
8
9
8
7
9
7
7
7
7
8
366
424
391
411
351
352
420
383
357
413
354
355
416
76
22,553
3,332
69
3,400
FEDERAL FISCAL OPERATIONS
12
TABLE FFO-2.--0n-budget and Off-budget Receipts by Source, con.
Fiscal year
or month
lin millions of dollars. Source: 'Monthly Statement of Receipts and Oudays of the United States Govemment')
Social insurance
taxes and
contributions,
con.
Net social insurExcise taxes
ance taxes and Airport and Airway Trust Fund Black Lung Disabili~ Trust Fund
Highwa~ Trust Fund
Refunds
Net
contributions Gross
Refunds
Net
Gross
Refunds
Net
Gross
(22)
(30)
(23)
(24)
(25)
(26)
(28)
(29)
(31)
(27)
1990 ' ............. '"
1991' ................
1992' ................
1993' ................
1994 ' ................
380,048
396,011
413,689
428,300
461,475
3,718
4,919
4,660
3,276
5,217
1995 - Est. ............
1996 - Est. ............
484,409
509,315
5,562
5,877
1994 - June ...........
July .... " ......
Aug ............
Sept.. ..........
Oct. ...........
Nov............
Dec ............
1995 - Jan.............
Feb ............
Mar............
Apr............
May ...........
June ...........
41,509
34,046
39,292
40,371
32,687
37,387
36,358
40,442
38,653
39,379
53,839
48,183
41,341
482
434
478
545
444
453
480
351
433
428
430
499
593
Fiscal 1995 to date .....
368,269
4,111
Fiscal year
or month
1990'
1991'
1992'
1993'
1994 1
.............
.............
.............
.............
Excise taxes,
con.
Net
excise
taxes
(35)
18
10
15
15
28
4
6
3
11
21
3,700
4,910
4,645
3,262
5,189
665
652
626
634
567
665
652
626
634
567
14,570
17,331
17,287
18,321
17,426
5,562
5,877
636
645
636
645
20,665
22,894
482
430
478
545
438
453
480
348
433
428
419
499
593
55
26
47
31
60
57
52
30
54
54
53
52
50
55
26
47
31
60
57
52
30
54
54
53
52
50
1,563
1,375
1,582
1,438
1,453
1,448
3,092
1,880
1,955
1.599
2,216
1,553
1,628
4,091
462
462
16,824
Estate and gift taxes
Gross
Refunds
Net
(36)
(37)
(38)
.............
35,345
42,430
45,570
48,057
55,225
11,762
11,473
11,479
12,891
15,607
1995 - Est. ..........
1996 - Est...........
57,600
57,194
15,587
16,760
1994 -June .........
July .........
Aug ..........
Sept. ........
4,596
4,175
5,989
5,518
4,272
5,518
4.587
4,555
3,485
5,143
4,602
4,770
4,897
1,088
1,088
1.294
1.284
1,234
1,263
1.119
1,028
957
1,248
1.938
1,371
1,071
262
335
336
314
382
Customs duties
Gross
Refunds
(39)
(40)
11,500
11,138
11,143
12,577
15,225
17,379
16,738
18,135
19,613
20,973
15,587
16,760
20,913
22.332
1,068
1,060
1,239
1,254
1.202
1,220
1,092
1.005
916
1,218
1,906
1,339
1,040
1,799
1,845
2,117
1,893
1,961
1,965
1,835
1,639
1,512
1,781
1,490
1,652
1,752
88
62
78
94
114
138
88
100
77
311
141
180
169
41,829
11,230
10,939
292
Fiscal 1995 to date . . .
15,588
, Data lor the period do not reflect pos1year adjustments published in 'he 'Monthly Treasury
Statemen' 01 Receipts and Outlays 01 the Un~ed States Government.' the source lor 'his table.
1,318
Oct. .........
Nov..........
Dec..........
1995-Jan..........
Feb ..........
Mar..........
Apr..........
May .........
June .........
20
28
54
30
28
42
28
23
42
30
32
32
31
672
817
775
811
874
702
352
574
283
758
Gross
(32)
13,867
16,979
16,713
18,039
16,668
18,749
20,472
24,562
26,718
33,573
20,665
22,894
30,737
27,778
211
81
-162
1,563
1,212
1,582
1,169
1,452
1,448
3,092
1,670
1,955
1.599
2,005
1,472
1,789
2,707
2,523
4,171
3,540
2,355
3,590
1,217
2,360
1,127
3.502
1,953
2,976
2,716
341
16,483
21,795
163
268
1
210
Net miscellaneous receipts
Deposits
of earnings
by Federal
All
Net Reserve banks other
Total
(41)
(42)
(43)
(44)
Miscellaneous
Refunds Net
(33)
(34)
1,628
582
977
595
772
17,119
19,890
23,585
26,123
32,801
30,737
27,n8
211
16
290
-233
30
29
255
-147
84
440
2,496
2,507
3,881
3,m
229
252
2,325
3,561
962
2,507
1,044
3,061
2,125
2,747
2,464
1,002
20,793
-172
Total receipts
OnOffbudget
budget
(45)
(46)
16,707
15,921
17,359
18,802
20,099
24,319
19,158
22,908
14,908
18,023
3,157
3,689
4,292
3,331
4,018
27,470
22,847
27,195
18,239
22,041
749,806
760,375
789,266
841,241
922,161
281,656
293,885
302,426
311,934
335,026
20,913
22,332
24,559
24,774
4,022
4,260
28,581
995,158
29,034 1,045,095
351,256
370,361
1.711
1,782
2,039
1,799
1.848
1,827
1,747
1.539
1,435
1,470
1,349
1,471
1,583
1,788
2,209
2,090
1,112
1.954
2,587
836
1.507
1,857
3,015
3,514
2,478
1,426
215
378
412
613
345
224
539
332
274
597
261
241
247
2,003
2,587
2,502
1,725
2,300
2,811
1,375
1,839
2,131
3,612
3,n4
2,719
1,674
106,014
60,145
70,949
105,212
65,384
62,083
103,860
101,036
54,405
61,970
126,170
61,027
115,998
32,110
24,681
26,389
30,683
23,639
25,590
26,950
30,765
28,139
30,562
39,222
29,378
31,870
14,269
19,175
3,060
22,235
751,934
266,114
Note:"On-budDet and Off-budaelelil'imata" are ballad on tha fillCalll1ll6 budget, raIaAHd by
the Office 01 Management and udget on February 6, 1995.
FEDERAL FISCAL OPERATIONS
13
TABLE FFO-3.--0n-budget and Off-budget Outlays by Agency
(In millions of doliars. Source: "Monthly Treasury Statement of Receipts and Outlays of the United States Government"]
Fiscal year
or month
Legislative
branch
(1)
The
judiciary
(2)
Executive
Office
01 the
President
(3)
.............
.............
.............
.............
.............
2,233
2,295
2,677
2,406
2,561
1,641
1,989
2,299
2,579
2,659
157
193
190
194
229
10,087
11,724
11,109
11,527
10,511
46,011
54,119
56,436
63,143
60,812
3,734
2,585
2,567
2,798
2,915
289,755
261,925
286,632
278,576
268,635
24,975
26,538
28,265
29,262
30,402
23,109
25,339
26,047
30,414
24,699
12,028
12,459
15,439
16,801
17,840
1995 - Est.. .........
1996· Est.. .........
2,793
2,957
3,101
3,336
192
191
10,860
10,779
62,313
62,276
3,601
4,109
260,269
250,045
31,207
31,934
32,888
30,651
16,135
15,758
1994· June .........
July .........
Aug..........
Sept. ........
Oct. .........
Nov ..........
Dec ..........
1995 - Jan..........
Feb..........
Mar......... ,
Apr..........
May .........
June .........
191
222
185
210
354
217
333
222
r 174
166
178
191
185
159
307
288
189
184
169
303
214
188
348
202
200
336
14
20
38
16
18
17
26
21
15
16
18
15
14
186
410
224
852
3,600
1,129
732
768
661
168
47
1,021
670
4,164
4,311
4,131
4,709
7,599
6,833
5,506
5,306
4,266
5,513
4,204
4,111
3,493
201
249
205
282
305
300
304
308
262
291
227
287
286
23,195
21,080
22,683
26,468
17,680
21,435
25,178
17,548
20,298
25,361
16,828
21,117
25,035
2,542
2,562
2,629
2,596
2,638
2,656
2,553
2,592
2,542
2,674
2,592
2,621
2,639
2,144
1,454
2,371
3,414
1,949
2,322
3,888
2,764
2,593
2,691
1,974
2,406
2,630
1,568
1,362
1,455
2,058
1,683
1,330
1,743
1,328
1,255
1,588
1,188
1,353
1,580
Fiscal 1995 to date ...
2,019
2,144
159
8,794
46,830
2,570
190,481
23,508
23,217
13,048
1990 '
1991
'
1992
'
1993 '
1994
'
Fiscal year
or month
1
Funds appropriated
to the Department of Department of
President Agriculture
Commerce
(4)
(5)
(6)
Department 01 Defense
Military
Civil
(7)
(8)
Department 01
Department Department
the Treasury
Department Interest
of Health of Housing and
and Human Urban De- Department of Department Department Department 01 Transpor· on the
01 State
tatiDn
public debt
Other
Services
velopment
the Interior 01 Justice
of Labor
(17)
(16)
(18)
(19)
(15)
(12)
(13)
(14)
(11)
Department of Department
Education
of Energy
(9)
(10)
EnvironDepartment mental
01 Veterans Protection
Affairs
Agency
(20)
(21)
193,678
217,969
257,961
282,774
310,837
20,167
22,751
24,470
25,185
25,774
5,794
6,094
6,555
6,728
6,910
6,739
8,244
9,826
10,197
10,005
25,315
34,048
47,164
44,738
36,919
3,979
4,252
5,007
5,384
5,718
28,636
30,504
32,561
34,457
37,278
264,853
286,022
292,330
292,502
296,278
·9,585
·9,128
1,098
6,209
10,981
28,999
31,213
33,737
35,487
37,401
5,106
5,770
5,932
5,925
5,855
1995· Est.. .........
1996· Est.. .........
r 301,439
r 331,437
26,854
26,276
7,329
7,340
11,821
13,525
31,942
35,853
6,272
5,547
37,992
37,337
333,704
364,037
18,112
22,045
38,231
37,951
6,274
6,609
1994 - June .........
July .........
Aug..........
Sept. ........
Oct. .........
Nov..........
Dec..........
1995-Jan..........
Feb..........
Mar..........
Apr..........
May .........
June .........
26,910
26,500
26,547
27,859
' 22,133
r 24,486
r 26,030
r 24,244
'22,931
' 28,559
23,053
26,792
28,535
2,125
2,219
2,547
1,492
2,903
2,426
2,394
2,009
2,227
2,694
2,707
1,843
2,795
634
546
495
861
883
582
557
567
553
671
499
574
482
790
881
774
915
908
818
749
1,094
730
915
920
774
875
2,793
2,833
2,908
2,212
2,352
1,684
2,470
3,196
2,951
3,093
2,899
2,741
2,871
338
294
494
927
488
841
664
201
488
411
371
335
397
3,187
3,225
3,763
3,645
3,444
3,499
3,056
3,088
2,814
3,208
2,571
3,193
3,425
53,306
18,301
19,686
17,875
19,732
24,912
57,320
20,069
19,259
20,693
20,883
26,769
59,355
·181
222
4
·257
34
-308
1,336
145
3,010
4,375
3,732
2,476
496
3,001
3,068
3,119
4,242
1,698
3,312
4,253
1,980
3,001
4,616
1,828
3,184
4,540
520
523
503
607
438
474
538
520
429
678
493
571
542
Fiscal 1995 to date ...
226,762
21,998
5,367
7,783
24,259
4,196
28,299
268,992
15,297
28,415
4,682
1990
1991
'
1992 '
1993 '
1994
'
.............
.............
.............
.............
.............
See footnotes at end of table.
FEDERAL FISCAL OPERATIONS
14
TABLE FFO-3.--0n-budget and OtT-budget Outlays by Agency, con.
[In millions of dollars. Source: "Monthly Treasury Statement of Receipts and Outlays of the United States Government"]
Fiscal year
or month
Undistributed offsetting receipts
National
Aeronautics
General
and
Office of
Small
Services
Space Personnel Business
Adminis- Adminis- Manage- Administration
tralion
ment
tration
(22)
(23)
(24)
(25)
Rents and
royalties
Employer Interest
Social
Other
share, received on the Outer
Security indepenAdmindent
employee by trust Continental
Shelf lands
istration agencies retirement funds
(30)
(28)
(29)
(26)
(27)
Other
(31)
Allowances
(32)
Total outlays
OnOffbudget
budget
(33)
(34)
1990' ........... ..
-122
12,429
31,949
692
244,998
73,518
-33,611
-62,312
-3,004
-97
1,026,785
225,065
1991' ............ .
487
13,878
34,808
613
266,395
80,454
-36,206
-70,649
-3,150
-550
1,081,302
241,687
1992' ............ .
469
13,961
35,596
394
281,418
18,877
-36,782
-77,838
-2,498
1,129,336
252,559
............ .
743
14,305
36,794
937
298,349
-10,631
-34,601
-82,276
-2,785
1,142,110
266,012
1994' ............ .
334
13,694
38,596
779
313,881
11,524
-34,770
-85,698
-3,001
1,181,185
279,372
1995 - Est.......... .
1,131
14,241
40,308
703 r 363,419
8,646
-34,326
-91,465
-2,692
-4,375
1,246,936
291,984
1996 - Est. ......... .
639
14,127
42,795
437 r381,740
14,327
-33,927
-98,134
-3,036
-6,453
-380 1,307,105
305,023
1994 -June ........ .
475
1,105
3,361
68
30,080
-367
-2,559
-36,407
-268
108,166
15,108
July ......... .
-704
994
3,349
78
25,184
1,681
-3,167
35
-9
93,164
24,861
Aug ......... .
423
1,304
3,272
123
26,711
-1,525
-2,643
-699
-408
95,279
26,329
Sept..........
222
1,393
3,340
96
26,905
4,933
-5,720
-164
-276
103,189
28,716
Oct. ......... .
-651
845
3,410
65
r 26,989
1,892
-2,442
-611
-154
95,307
25,059
Nov......... .
639
1,143
3,118
145
r 28,769
267
-2,416
-5,727
-160
99,464
25,452
Dec ......... .
462
1,203
3,460
64
r 31,237
-533
-2,564
-38,216
-106
123,643
11,297
1995 - Jan........ ..
-717
926
3,324
58
r 27,887
-1 ,481
-2,557
-95
-353
89,889
25,282
Feb.......... .
431
1,072
3,337
64
r
29,836
-1,536
-2,491
-634
-197
r 94,050
26,478
Mar.......... .
544
1,284
3,556
77
r
32,057
-710
-2,671
-251
-158
116,507
25,951
Apr.......... .
-767
1,028
3,548
53
28,081
32
-2,554
-596
43
90,628
25,045
May ......... .
540
1,245
3,431
55
30,220
-232
-2,590
-5,524
-366
102,581
26,773
June ........ .
387
1,166
3,647
59
36,248
-5,315
-2,696
-39,948
-431
119,478
14,818
Fiscal 1995 to date ...
870
9,910
30,831
639
271,324
-7,620
-22,981
-91,602
-1,882
931,546
206,156
1993
1
• Less than $500.000.
1 Dala for the period do not reflect postyear adjustments published in the "Monthly Treasury
Statement of Receipts and Outlays of the United States Government. "the source for this table.
-610
-610
-
Note. ·-On-budget and oft-budget estimates are based on the fiscal 1996 budget, released by
the OfI.ce of Management and Budget on February 6, 1995.
15
INTRODUCTION: Federal Obligations
The Federal Government controls the use of funds
through obligations. Obligations are recorded when the Government makes a commitment to acquire goods or services.
Obligations are the first of four key events that characterize
the acquisition and use of resources: order, payment, delivery,
and consumption. In general, they consist of orders placed,
contracts awarded, services received, and similar transactions
requiring the disbursement of money.
The obligational stage of a Government transaction is a
strategic point in gauging the impact of the Government's
operations on the national economy because it frequently
represents a Government commitment that stimulates business
investments, such as inventory purchases and employment.
Though payment may not occur for months after the Govern-
ment places its order, the order itself can cause immediate
pressure on the private economy.
An obligation is classified by the nature of the transaction.
without regard to its ultimate purpose. For example, all salaries
and wages are reported as personnel compensation, whether
the services are used in current operations or in the construction of capital items.
Federal agencies often do business with one another. In
doing so, the "buying" agency records obligations and the
"performing" agency records reimbursements. In table FO-l,
these transactions are presented. Conversely, table FO-2
shows only those transactions incurred outside the Federal
Government.
TABLE FO-l.--Gross Obligations Incurred Within and Outside the Federal Government by
Object Class, Mar. 31, 1995
[In millions of dollars. Source: Standard Form 225, Report on Obligations, from agencies]
Object class
Outside
(1)
Gross obligations inc_u-'-rre::..:d'-----_ _ __
Within
(2)
Total
(3)
Personal services and benefits:
76,567
76,567
Personnel compensation, .................... .
15,454
21,463
6,009
Personnel benefits ........................... .
1,244
1,244
Benefits for former personnel. ............. .
Contractual services and supplies:
3,751
339
3,412
Travel and transportation of persons ......... .
1,025
5,353
4,328
Transportation of things ....................... .
3,060
11,215
8,155
Rent, communications, and utilities .............. .
947
308
639
Printing and reproduction ...................... .
25,400
123,283
97,883
Other services ............................. , .
13,042
37,626
24,584
Supplies and materials ........ , , , . , , ... , .. , . , ..
Acquisition of capital assets:
28,000
2,696
25,304
Equipment ' , . ' , , . , ....... , ..... , , , .. , . , ... , .
121
7,889
7,768
Lands and structures .. , .. , . , ..... , .. , ..... , .. .
116
15,571
15,455
Investments and loans, , , ... ' . , , ... , .......... ,
Grants and fixed charges:
178,142
22,128
156,014
Grants, subsidies, and contributions , .. , . , ... , ....
1,823
319,335
317,512
Insurance claims and indemnities. , .. , . , . , ... , . , .
173,476
46,538
126,938
Interest and dividends ... , . , ...... , ... , . ' , .. , . ,
211
211
Refunds .. , .. , . , . , , ........ , , , . ' .. , . , , ..... .
Other:
Unvouchered ..... , , ...... , , , , .. , .... , . .. . . . .
88
49
137
Undistributed U,S. obligations, , , , '. ' ..... " ., , .. _ _ _ _ _ _ _ _~5_'_",6::.:79"__________________3.,.,9:.: 0_=__0_ _ _ _ _ _ _ _ _. ,9,.: :c. .: 579
1
877,790
135,999
1,013,789
Gross obligations incurred "., .. , ..... , ..
1,013,789
Gross obligations incurred (as above). , ... , . ,
Deduct:
Advances, reimbursements, other income, elc ... , ... , ........ , .... .
Offsetting receipts ........ , .. , ... , .... , ... , . ,
.... , .... .
Net obligations incurred .. , .... ' , ..... , .....
1 For Federal budget presentation a concept of "net obligations incurred" is generally used. This
concept,eliminates transactions within the Government and revenue .and reimbursements from
the pubhc, which by statute may be used by Government agencies Without appropnallOn actIon
-182,766
-129,093
701,930
.. .......... =============
by Congress. Summary figures on this basis follow. (Data are on the basis of Reports on
Obligations presentation and therefore may differ somewhat from the "Budget of thE> U.s
Government.")
FEDERAL OBLIGATIONS
16
Personal services and
benefits 9%
CHART FO-A.-Gross Federal
Obligations Incurred
Outside the Federal
Government,
Mar. 31, 1995
Other
1%--
I
Contractual services
and supplies 16%
~
~
Acquisition
of capital
assets
6%
/
Grants and fixed charges 68%
CHART FO-B.--Total Gross Federal Obligations,
Mar. 31, 1995
Personal services and benefits
Contractual services and supplies
-k--
D
II
Outside Government
Within Government
(In billions of dollars)
Acquisition of capital assets
Grants and fixed charges
Other
600
FEDERAL OBLIGATIONS
17
TABLE FO-2.--Gross Obligations Incurred Outside the Federal Government
by Department or Agency, Mar. 31,1995
[In millions of dollars. Source: Standard Form 225, Report on Obligations, from agencies]
Personal services and benefits
Contractual services and supplies
Benefits
Travel and Transpor- Rent, com- Printing and
Personnel
Personnel for former transportation tation
munications, reproducOther Supplies and
compensation
benefits personnel of persons of things and utilities
tion
services
materials
Classification
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
328
2
8
2
16
286
54
29
58
277
5
27
4
30
216
20
648
2
21
16
1,042
5
278
2,159
678
12
25
67
20
98
24
239
4
5
187
61
5
19
582
547
249
944
387
61
Total military ..... , ........ , ........ , ... ,
12,413
10,607
10,487
6,916
40,423
1,557
3,106
173
453
5,289
145
88
50
278
561
677
412
646
713
2,448
417
499
226
674
1,816
937
400
554
1,342
3,233
8
37
13
101
159
7,674
13,088
13,744
27,152
61,658
1,067
4,247
280
12,623
18,217
Civil ......................................
Department of Education ......... , . , ... , , .......
Department of Energy ................... , , .....
552
122
556
2
2
4
11
7
39
3
44
2
321
5
6
7
505
276
12,519
37
2
40
D~;C:~~c~fr~e~~t~. ~~~ ~~~~~ .~~~~~~s.' .e.x~~p~ . , .
1,450
33
67
54
10
100
5
2,156
179
1,297
298
1,134
1,245
412
583
2,261
6
57
5
26
23
37
3
5
10
262
9
7
56
74
22
65
92
712
207
553
918
248
502
1,725
5
11
11
3
74
12
186
35
57
378
132
242
148
6
15
55
17
27
94
21
10
26
6
12
2
28
6
2
15
43
59
12
98
3,412
Legislative branch 1 .•.••.••.••.....•..•.••.•..•
The judiciary 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Executive Office of the President ....... , .........
Funds appropriated to the President ...............
Department of Agriculture:
Commodity Credit Corporation ................ , .
Other ....... , ................... , .........
Department of Commerce .. , . , . , ........
Department of Defense:
Military:
Department of the Army ... , ... , , ... , ........
Department of the Navy .................. , , .
Department of the Air Force. , ... , .. , , ........
Defense agencies ..... , " .. , , , .. , .... , .. , ,.
D~e~~~~n~ ~~ ~.e.a."h. ~~~ .~~~~~ .S~~~~~~, .~~~i~l....
Department of Housing and Urban Development .. , ..
Department of the Interior ........ , .......... , ...
Department of Justice .. , ... , ...................
Department ofLabar ...........................
Department of State ...........................
Department ofTransportation ........... .........
Department of the Treasury:
Interest on the Public Debt. ..... , .. , ., ..... , ...
Interest on refunds, etc........................
Other .....................................
Department of Veterans Affairs ........... , .......
Environmental Protection Agency .............. , . ,
General Services Administration ..................
National Aeronautics and Space Administration ... , ..
Office of Personnel Management ... ..............
Small Business Administration
•
,.
'TO
••••••••
Other independent agencies:
Postal Service ..... , .... ....................
Tennessee Valley Authority, ... , ...............
Other .....................................
Total .. , .................................
See footnotes at end of table.
719
4,439
477
381
657
67
133
13,751
437
1,673
76,567
90
1
2
140
3
171
138
6,009
19
1,244
1,701
158
7
4,328
50
3
22
3
83
58
9
42
98
53
302
43
1,109
137
3
32
4
2
2
3
5
1
11
276
1,872
455
1,656
7,371
12
275
61
1,256
10
1,441
459
44
162
8,155
3
1
12
639
536
385
576
97,883
451
696
75
24,584
113
4
FEDERAL OBLIGATIONS
18
TABLE FO-2.--Gross Obligations Incurred Outside the Federal Government
by Department or Agency, Mar. 31, 1995, con.
(In millions 01 dollars. Source: Standard Form 225, Report on Obligations, from agencies]
Grants and fixed charges
Grants, Insurance
Acquisition of capital assets
Interest
subsid- claims and
InvestLand
and
indemments and ies, and
and
dividends Refunds
Equipment structures loans contributions inities
(15)
(16)
(14)
(13)
(12)
(11)
(10)
Classification
Legislative branch
The judiciary 2 ..
55
1 ....................•
Other
Undistributed U.S.
Unobligavouchered tions
(17)
(18)
Total
gross
obligations
incurred
(19)
783
4
, ... , .... , .................. ,
563
43
718
1,289
3,497
10,160
Executive Office of the President ................
4
Funds appropriated to the President ..............
2,794
39
8,360
3,894
53
75
1,714
22,422
111
6
8
510
Department of Agriculture:
Commodity Credit Corporation ...... , .... ,
Other ....................... , ...... ,
Department of Commerce .. , . . . . . . . . . . . . . . . . . . .
Department of Defense:
Military:
Department of the Army ......... , .......
'"
Department of the Navy ......... ...........
Department of the Air Force .......... , . , .. ,
Defense agencies. , .. , ...................
Total military. , .. , , ................. " .
Civil .. , . , .. , ....... , .. , . , , .. , ... , .... , ...
12
4
1,913
1,561
723
21
81
241
78
2
7,150
_1,794
519
745
2
19
139
6
14,522
1
5
20,184
2,228
2
257
14,611
6
22
433
3
Department of Energy. , ..... , .. , .. , , , . , , ... , , .
450
809
Des~1:R~~c~fri~e,a.lt.h. ~~~ ~~~~~ .~~~~~~s, .ex,c~~~ . ,
71
25
29,648
72
9,679
Department of Education .. , .. , . , , . , , . , . , . , .. , ..
14,031
2
1,850
27,282
42,486
16
48
3
33,915
67,480
16
51
171,163
1,615
1,868
8,589
19
579
1,112
11,989
15,347
73,572
85,127
13,564
163,054
11,185
38
162,851
Dese~~~~t of H.ea.It~. ~~~ ~~~~~ .~e~~~s, .~~~i~l...
13
Department of Housing and Urban Development, ...
8
2,192
Department of the Interior, , ......... ' . , ..... ' ..
79
299
952
6
3,275
Department of Justice ........... ' . , ...........
125
3
224
14
3,103
Department of Labor .............. , .... , ......
71
78
Department of State , .................. , ......
30
5
Department ofTransportation ......... ' .. , ... , ..
Department of the Treasury:
287
95
886
7
9
....
,
1,222
11,888
14,189
231
3,875
4,698
2
9,693
121,489
......
2
Other., ...................... ,., .... , ....
49
Department of Veterans Affairs ............ , , ....
159
9
1,065
Environmental Protection Agency. ' .. , ...........
10
23
2,895
General Services Administration ... ' .............
176
44
15
National Aeronautics and Space Administration, ....
66
183
175
2,526
443
1,050
Office of Personnel Management . , ........... , ..
121,489
1,340
389
9,581
1,341
11
4,130
547
20,966
5
5
3,959
4,924
8,757
27,372
2
Small Business Administration " ' ........ , . , , ,
14,945
2,067
Interest on the Public Debt. .. , . . . . . . . . . . . . . . . .
Interest on refunds, etc .... ' , ,
178,873
6
197
120
65
30
18
125
1,886
4,051
945
653
156,014
317,512
126,938
27,655
663
Other independent agencies:
Postal Service ..... , ' , . ' .. , .......
......
Tennessee Valley Authority .. , . . . . . . . . . . . . . . . .
Other."., . ........... - ..................
,.,
Total ..... ....... ..... ..............
"
..
347
140
34
96
1
12
168
25,304
7,768
15,455
- Less than $500,000.
, IncludeS reports for Library of Congress. Government Printing Office. and General Accounting
Office.
2
No reports received from this entity.
17,539
211
88
5,623
3,177
15,083
5,679
877,790
19
INTRODUCTION: Source and Availability of the
Balance in the Account of the U.S. Treasury
The Treasury's operating cash is maintained in accounts
with the Federal Reserve banks (FRBs) and branches, as well
as in tax and loan accounts in other financial institutions.
Major information sources include the Daily Balance Wire
received from the FRBs and branches, and electronic transfers
through the Letter of Credit Payment, Fedline Payment, and
Fedwire Deposit Systems. As the FRB accounts are depleted,
funds are called in (withdrawn) from thousands of tax and loan
accounts at financial institutions throughout the country.
Note Option. The program permits Treasury to collect funds
through financial institutions and to leave the funds in Note
Option depositaries and in the financial communities in which
they arise until Treasury needs the funds for its operations. In
this way, Treasury is able to neutralize the effect of its fluctuating operations on Note Option financial institution reserves
and on the economy. Likewise, those institutions wishing to
remit the funds to the Treasury's account at FRBs do so under
the Remittance Option.
Under authority of Public Law 95-147, Treasury implemented a program on November 2, 1978, to invest a portion
of its operating cash in obligations of depositaries maintaining
tax and loan accounts. Under the Treasury tax and loan investment program, depositary financial institutions select the manner in which they will participate. Financial institutions
wishing to retain funds deposited into their tax and loan
accounts in interest-bearing obligations participate under the
Deposits to tax and loan accounts occur as customers of
financial institutions deposit tax payments, which the financial
institutions use to purchase Government securities. In most
cases, this involves a transfer of funds from a customer's
account to the tax and loan account in the same financial
institution. Also, Treasury can direct the FRBs to invest excess
funds in tax and loan accounts directly from the Treasury
account at the FRBs.
TABLE UST-l.--Elements of Change in Federal Reserve
and Tax and Loan Note Account Balances
[In millions of dollars. Source: Financial Management ServIce]
Credits and withdrawals
Federal Reserve accounts
Credits 1
Received through
remittance option
tax and loan
depositaries
(2)
Tax and loan note accounts
Withdrawals
(transfers to Federal
Taxes 3
Reserve accounts)
(4)
(5)
Fiscal year
or month
Received
directly
(1 )
..............
..............
..............
..............
..............
2,676,047
3,068,821
3,266,858
3,407,516
3,597,247
248,820
264,818
288,556
331,337
307,639
2,930,667
3,333,340
3,538.754
3.746,152
3,915,321
553,332
566,620
572,967
584,383
686,879
548,337
565,581
572,321
583,369
693,001
1994· June .........
July ..........
Aug ..........
329,123
225,672
331,125
326,690
265,456
310,062
303,143
340,682
323,055
327,127
345,366
381,363
391,455
25,931
19,434
20,616
24,928
20,548
20,007
28,679
19,678
14,675
18,080
18,414
16,565
20,666
351,372
250.781
349,424
350.766
287,686
329,885
330,006
353,559
344,805
347,552
360,082
401,521
395,787
76,026
50,504
55,907
72,409
52,674
52,847
83,342
52,529
42,198
51,621
51,981
45,139
62,509
55,910
75,536
48.417
67,408
50,510
62,396
85,631
36,069
49,124
67,020
35,706
53,385
44,528
1990
1991
1992
1993
1994
Sept.. ........
Oct.. .........
Nov..........
Dec ..........
1995· Jan..........
Feb ..........
Mar..........
Apr...........
May ..........
June .........
See footnotes at end of table.
Withdrawals 2
(3)
20
ACCOUNT OF THE U.S. TREASURY
TABLE UST-l.--Elements of Change in Federal Reserve
and Tax and Loan Note Account Balances, con.
[In millions of dollars. Source: Financial Management Service]
Balances
During period
Fiscal year
ormonlh
End of period
Tax and
Federal
loan note
Reserve
accounls
(6)
(7)
Low
Hieh
Federal
Reserve
(8)
Tax and
loan nole
accounls
(9)
Federal
Reserve
(10)
Average
Tax and
loan nole
accounts
(11)
Federal
Reserve
(12)
Tax and
loan nole
accounts
(13)
1990 .. '" ., .......
7,638
32,517
16,758
37,436
1,980
183
5,424
16,529
1991 ..............
7,928
33,556
27,810
36,577
2,427
422
6,646
19,202
1992 ..............
24,586
34,203
24,586
37,028
1,852
2,752
6,513
19,756
1993 .......... "
17,289
35,217
28,386
37,540
1,108
1,625
6,510
18,978
1994 ... , ..........
6,848
29,094
21,541
46,624
2,736
5,904
18,631
1994 - June ....... , .
9,356
41,635
9,356
42,429
3,126
3,866
6,120
21,055
July ........ "
3,683
16,603
7,086
16,882
3,585
4,287
5,179
11,261
Aug ..........
5,994
24,093
6,883
25,328
3,596
6,255
5,220
12,974
Sept. .........
6,848
29,094
11,359
44,647
3,986
585
5,953
18,295
Oct...........
5,164
31,258
6,948
31,258
3,959
2,301
5,553
13,229
Nov..........
5,348
21,709
6,377
28,202
4,066
1,717
5,250
11,321
Dec ..........
7,161
19,419
9,047
38,732
3,396
342
6,113
13,065
1995 - Jan..........
13,964
35,880
13,964
35,880
5,061
11,053
7,147
21,019
Feb...........
6,890
28,954
10,404
36,361
3,890
15,751
5,753
21,968
Mar...........
4,543
13,554
7,967
24,367
3,461
5,128
5,141
9,864
Apr...........
8.241
29,828
8,241
32,277
4,211
99
6,155
12,719
May ..........
4,646
21,582
16,220
39,051
3,735
11,208
5,791
19.847
June .........
20,977
39,563
20,977
39,870
2,826
775
7,530
19,928
1 Represents transfers from tax and loan note accounts. proceeds from sales of securities other
than Government account series, and taxes.
2 Represents checks paid, wire transfer payments, drawdowns on letters 01 credit, redemptions
of securrtJes other than Government account senes, and Investment (transfer) of excess funds
out of this account to the tax and loan note accounts.
J Taxes eligible lor credit consist of those deposited by taxpayers in the tax and loan depositaries
as follows: Withheld income taxes beginning March 1948' taxes on employers and employees
under the Federal InSurance Contribufions Act beginning january 1950, and under Ihe Railroad
Retirement Tax Act beginning July 1951;a number of excise taxes beginning July 1953;
estimated corporation "lcome faxes beginning Apnl 1967; all corporation income faxes due on
or after Mal.. 15, 1968; Federal Unemployment Tax Act taxes beginning April 1970 and
IndIVIdual estimated Income taxes beginning October 1988.
'
21
INTRODUCTION: Federal Debt
Treasury securities (i.e., public debt securities) comprise
most of the Federal debt, with securities issued by other
Federal agencies accounting for the rest. Tables in this section
of the "Treasury Bulletin" reflect the total. Further detailed
information is published in the "Monthly Statement of the
Public Debt of the United States." Likewise, information on
agency securities and on investments of Federal Government
accounts in Federal securities is published in the "Monthly
Treasury Statement of Receipts and Outlays of the United
States Government."
• Table FD-l summarizes the Federal debt by listing
public debt and agency securities held by the public, including
the Federal Reserve. It also includes debt held by Federal
agencies, largely by the Social Security and other Federal
retirement trust funds. The net unamortized premium and
discount are also listed by total Federal securities, securities
held by Government accounts, and securities held by the
public. The difference between the outstanding face value of
the Federal debt and the net unamortized premium and discount is classified as the accrual amount. (For greater detail on
holdings of Federal securities by particular classes of investors, see the ownership tables, OFS-l and OFS-2.)
• Table FD-2 categorizes by type interest-bearing marketable and nonmarketable Treasury securities. The difference
between interest-bearing and total public debt securities reflects outstanding matured Treasury securities--that is, unredeemed securities that have matured and are no longer
accruing interest. Because the Federal Financing Bank is
under the supervision of Treasury, its securities are held by a
U.S. Government account.
• In table FD-3, nonmarketable Treasury securities held
by U.S. Government accounts are summarized by issues to
particular funds within Government. Many of the funds invest
in par value special series nonmarketables at interest rates
determined by law. Others invest in market-based special
Treasury securities whose terms mirror those of marketable
securities.
• Table FD-4 presents interest-bearing securities issued
by Government agencies. Federal agency borrowing has de-
clined in recent years, in part because the Federal Financing
Bank has provided financing to other Federal agencies. (Federal agency borrowing from Treasury is presented in the
"Monthly Treasury Statement of Receipts and Outlays of the
United States Government.")
• Table FD-5 illustrates the average length of marketable
interest-bearing public debt held by private investors and the
maturity distribution of that debt. Average maturity has increased gradually since it hit a low of 2 years, 5 months, in
December 1975. In March 1971, Congress enacted a limited
exception to the 4-1/4-percent interest rate ceiling on Treasury
bonds. This permitted Treasury to offer securities maturing in
more than 7 years at current market rates of interest for the first
time since 1965. This exception has expanded since 1971
authorizing Treasury to continue to issue long-term securities,
and the ceiling on Treasury bonds was repealed on November
10, 1988. The volume of privately held Treasury marketable
securities by maturity class reflects the remaining period to
maturity of Treasury bills, notes, and bonds. The average
length is comprised of an average of remaining periods to
maturity, weighted by the amount of each security held by
private investors. In other words, computations of average
length exclude Government accounts and the Federal Reserve
banks.
• In table FD-6, the debt ceiling is compared with the
outstanding debt subject to limitation by law. The other debt
category includes Federal debt Congress has designated as
being subject to the debt ceiling. Changes in the non-interestbearing debt shown in the last column reflect maturities of
Treasury securities on nonbusiness days, which can be redeemed on the next business day.
• Table FD-7 details Treasury holdings of securities issued by Government corporations and other agencies. Certain
Federal agencies are authorized to borrow money from the
Treasury, largely to finance direct loan programs. In addition,
agencies such as the Bonneville Power Administration are
authorized to borrow from the Treasury to finance capital
projects. Treasury, in turn, finances these loans by selling
Treasury securities to the public.
FEDERAL DEBT
22
TABLE FD-l.--Summary of Federal Debt
[In millions of dollars. Source: 'Monthly Treasury Statement of Receipts and Outlays of the United States Government',
Securities held by:
Total
(4)
Government accounts
Public
debt
securities
(5)
Agency
securities
(6)
32,758
17,751
18,250
24,682
28,543
795,907
919,713
1,016,453
1,116,713
1,213,115
795,762
919,573
1,016,330
1,116,693
1,213,098
145
139
123
21
17
27,461
27,834
27,627
28,543
26,437
26,762
26,766
26,745
26,455
26,459
26,479
26,663
26,861
1,202,951
1,196,787
1,199,765
1,213,115
1,219,609
1,223,252
1,257,048
1,259,092
1,258,572
1,254,674
1,271,236
1,278,619
1,316,581
1,202,934
1,196,769
1,199,748
1,213,098
1,219,592
1,223,236
1,257,032
1,259,075
1,258,556
1,254,657
1,271,219
1,278,602
1,316,564
17
17
17
17
17
17
17
17
17
17
17
17
17
Total
(1)
Amount outstanding
Public
debt
securities
(2)
Agency
securities
(3)
1990...............
1991.. .............
1992...............
1993...............
1994... "". "" ...
3.266,073
3,683,054
4,082,871
4,436,171
4,721,293
3,233,313
3,665,303
4,064,621
4,411,489
4,692,750
1994 - June .........
July .........
Aug..........
Sept. ........
4,673,263
4,664,196
4,719,618
4,721,293
4,760,604
4,805,282
4,826,916
4,842,572
4,880,753
4,890,575
4,878,806
4,930,589
4,978,233
4,645,802
4,636,362
4,691,991
4,692,750
4,734,167
4,778,520
4,800,150
4,815,827
4,854,298
4,864,116
4,852,327
4,903,926
4,951,372
End of
fiscal year
or month
Oct..........
Nov..........
Dec ..........
1995 - Jan...........
Feb..........
Mar..........
Apr..........
May .........
June .........
End of
fiscal year
or month
The public
Public
debt
securities
(8)
Agency
securities
(9)
2,470,166
2,763,341
3,066,418
3,319,458
3,508,178
2,437,551
2,745,729
3,048,291
3,294,796
3,479,652
32,613
17,612
18,127
24,661
28,526
3,470,312
3,467,410
3,519,853
3,508,178
3,540,995
3,582,030
3,569,868
3,583,480
3,622,181
3,635,901
3,607,570
3,651,970
3,661,652
3,442,868
3,439,593
3,492,243
3,479,652
3,514,575
3,555,284
3,543,118
3,556,752
3,595,742
3,609,459
3,581,108
3,625,324
3,634,808
27,444
27,817
27,610
28,526
26,420
26,745
26,749
26,728
26,438
26,442
26,462
26,646
26,844
Total
(7)
Federal debt securities
Securities held b~ Government accounts
Securities held by the Eublic
Amount
Net unamortized
Amount
Net unamortized
Amount
Net unamortized
outstanding lace premium and
outstanding face premium and
outstanding face premium and
value
discount Accrual amount
value
discount
Accrual amount
value
discount Accrual amount
(11)
(10)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
1990....... ""'" .
1991 ...............
1992...............
1993...............
1994...............
3,266,073
3,683,054
4,082,871
4,436,171
4,721,293
59,811
84,137
80,058
85,022
77,297
3,206,260
3,598,919
4,002,815
4,351,149
4,643,996
795,907
919,713
1,016,453
1,116,713
1,213,115
7,962
12,415
12,776
1,472
795,907
911,751
1,004,039
1,103,938
1,211,644
2,470,166
2,763,341
3,066,418
3,319,458
3,508,178
59,811
76,175
67,643
72,246
75,826
2,410,353
2,687,168
2,998,776
3,247,211
3,432,352
1994 - June .........
July .........
Aug ..........
Sept. ........
4,673,263
4,664,196
4,719,618
4,721.293
4,760,604
4,805,282
4,826,916
4,842,572
4,880,753
4,890,575
4,878,806
4,930,589
4,978,233
75,674
75,818
76,521
77,297
77,719
78,228
79,446
79,753
79,794
80,106
79,600
79,297
80,551
4,597,589
4,588,378
4,643,097
4,643.996
4,682,885
4,727,054
4,747,470
4,762,819
4,800,959
4,810,469
4,799,206
4,851,292
4,897,682
1,202,951
1,196,787
1,199,765
1,213,115
1,219,609
1,223,252
1,257,048
1,259,092
1,258,572
1,254,674
1,271,236
1,278,619
1,316,581
713
716
972
1,472
1,533
1,759
1,823
1,854
1,818
2,055
2,242
2,261
2,324
1,202,238
1,196,071
1,198,792
1,211,644
1,218,076
1,221,493
1,255,225
1,257,237
1,256,754
1,252,619
1,268,994
1,276,358
1,314,257
3,470,312
3,467,410
3,519,853
3,508,178
3,540,995
3,582,030
3,569,868
3,583,480
3,622,181
3,635,901
3,607,570
3,651,970
3,661,652
74,961
75,102
75,548
75,826
76.185
76,469
77,624
77,899
77,977
78,051
77,358
77,035
78,227
3,395,352
3,392,307
3,444,305
3,432,352
3,464,810
3,505,561
3,492,244
3,505,581
3,544,204
3,557,850
3,530,212
3,574,935
3,583,425
Oct. .........
Nov..........
Dec ..........
1995 -Jan...........
Feb..........
Mar..........
Apr. .........
May .........
June .........
FEDERAL DEBT
23
TABLE FD-2.--Interest-Bearing Public Debt
[In millions of dollars. Source: "Monthly Statement of the Public Debt of the United States"]
Marketable
Treasury
bonds
(5)
Other
securities:
Federal
Financing
Bank
(6)
Nonmarketable
Tolal
(7)
1,218,081
1,387,717
1,566,349
1,734,161
1,867,507
377,224
423,354
461,840
497,367
511,800
15,000
15,000
15,000
15,000
15,000
1,118,184
1,272,099
1,384,325
1,503,657
1,597,922
1,835,705
1,811,569
1,B60,724
l,B67,507
1,875,275
1,893,798
1,866,986
1,906,332
1,922,913
1,938,223
1,914,413
1,961,107
1,974,663
501,837
501,837
511,BOO
511,800
511,799
510,297
510,296
510,294
517,665
517,664
517,662
514,655
514,654
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
1,591,534
1,581,702
1,585,043
1,597,922
1,607,746
1,610,928
1,643,137
1,638,810
1,638,593
1,633,169
1,649,279
1,658,881
1,695,194
End of
fiscal year
ormonlh
Total interest·
bearing
public
debl
(1)
Total
(2)
Treasury
bills
(3)
Treasury
notes
(4)
..........
..........
..........
..........
..........
3,210,943
3,662,759
4,061,801
4,408,567
4,689,524
2,092,759
2,390,660
2,677,476
2,904,910
3,091,602
482,454
564,589
634,2B7
658,381
697,295
1994- June .....
July .....
Aug ......
Sept. ....
Oct. .....
Nov......
Dec ......
1995· Jan......
Feb ......
Mar. .....
Apr......
May .....
June .....
4,642,523
4,616,171
4,68B,745
4,689,524
4,730,969
4,775,318
4,769,171
4,812,208
4,850,521
4,860,502
4,831,533
4,900,346
4,947,814
3,050,989
3,034,469
3,103,702
3,091,602
3,123,224
3,164,390
3,126,035
3,173,398
3,211,929
3,227,333
3,182,253
3,241,464
3,252,620
698,446
706,064
716,177
697,295
721,149
745,294
733,753
741,771
756,351
756,447
735,178
750,702
748,302
1990
1991
1992
1993
1994
Nonmarketable, can.
State
and local
government
series
(11)
Domestic
series
(12)
Other
(13)
779,412
90B,406
1,011,020
1,114,289
1,211,689
161,24B
15B,117
157,570
149,449
137,386
18,886
29,995
29,995
29,995
29,995
447
429
435
442
445
1,200,606
1,194,806
1,198,058
1,211,689
1,221,401
1,225,944
1,259,827
1,262,642
1,262,711
1,259,184
1,275,568
1,283,765
1,322,041
143,383
139,073
138,844
137,386
135,840
134,107
132,616
125,155
124,002
122,908
122,154
123,246
121,145
29,995
29,995
29,995
29,995
29,995
29,995
29,995
29,995
29,995
29,995
29,995
29,995
29,995
462
444
444
445
443
442
442
441
440
444
442
43B
434
U.S.
savings
bonds
(B)
Foreign series
Government
(9)
Government
account
series
(10)
.......................
.......................
.......................
............. , .........
.......................
122,152
133,512
148,266
167,024
176,413
36,041
41,639
37,039
42,459
41,996
1994-June ..................
July ..................
Aug ...................
Sept. .................
Oct. ..................
Nov...................
Dec...................
1995- Jan ...................
Feb...................
Mar...................
Apr. ..................
May ..................
June ..................
174,859
175,460
175,915
176,413
177,187
177,755
177,786
178,041
178,465
178,839
179,458
179,824
180,136
42,229
41,924
41,788
41,996
42,880
42,683
42,471
42,536
42,979
41,797
41,662
41,614
41,442
End of
fiscal year
or month
1990
1991
1992
1993
1994
FEDERAL DEBT
24
TABLE FD-3.--Government Account Series
lin millions of doliars Source" ·Monthly Statement of the Public Debt of the United States·]
End of
fiscal year
or month
Total
(1)
Airport
and
Airway
Trust
Fund
(2)
Bank
Insurance
Fund
(3)
Employees
life
Insurance
Fund
(4)
Exchange
stabilization
fund
(5)
Federal
Disability
Insurance
Trust Fund
(6)
Federal
employees
retirement
funds
(7)
Federal
Federal
Hospital
Insurance
Housing
Trust Fund Administration
(8)
(9)
Federal
Old-age and
Survivors
Insurance
Trust Fund
(10)
1990
1991
1992 " ......
1993 .........
1994 .............
779,412
908,406
1,011,020
1,114,289
1,211,689
14,312
15,194
15,090
12,672
12,206
8,438
6,108
4,664
4,325
13,972
9,561
11,140
12,411
13,575
14,929
1,863
2,378
3,314
5,637
7,326
11,254
12,854
12.774
10,162
6,025
223,229
246,631
273,732
301,711
329,602
96,249
109,327
120,647
126,078
128,716
6,678
6,839
6,077
5,380
5,933
203,717
255,557
306,524
355,510
413,425
1994 - June ........
July ... " ....
Aug .........
Sept. .......
Oct. ....... "
Nov........ "
Dec ..
1995 - Jan .........
Feb ....
Mar. ...
Apr. ..
May ..
June ........
1,200,606
1,194,806
1,198,058
1,211,689
1,221,401
1,225,944
1,259,827
1,262,642
1,262,711
1,259,184
1,275,568
1,283,765
1,322,041
12,527
12,322
12,277
12,206
12,286
11,830
12,155
11,809
11,597
11,455
11,205
11,354
11,692
10,746
10,973
13,403
13,972
14,095
14,308
14,596
16,045
18,022
18.570
18,475
19,206
21,522
14,612
14,659
14,920
14,929
15,008
15,246
15,068
15,248
15,385
15,385
15,303
15,642
15,519
7,334
7,357
7,298
7,326
7,353
8,593
8,627
8.167
6,374
4,629
2,956
882
1,536
7,979
7,244
6,574
6,025
6,713
21,689
22,904
24,351
25,299
26,545
29,382
30,281
32,676
312,180
310,409
308,555
329,602
327,578
325,712
337,894
335,878
333,860
331,978
329,939
327,880
340,191
131,599
129,876
129,114
128,716
129,218
128,695
133,541
133,316
132,132
129,750
133,765
131,222
135,559
5,851
5,803
5,860
5,933
5,876
5,876
5,873
5,794
5,383
5,352
5,996
5,255
5,736
409,674
410,812
411}02
413,425
414,078
398,878
413,431
417,229
417,357
419,354
430,268
431,146
446,143
Federal Savings and Loan
Corporation,
resolution
fund
(11 )
Federal
Supplementary
Medical
Insurance
Trust Fund
(12)
Government
life insurancefund
(13)
Highway
Trust Fund
(14)
National
Service life
Insurance
fund
(15)
End of
fiscal year
or month
1990
1991
1992
1993
1994
............
...........
... ... " ....
..
..
1994 - June.
JUly. "
Aug ...
Sept.
Oct. .
Nov .....
Dec ..
1995 - Jan"
Feb ..
Mar.
Apr.
May" ..
June.
Railroad
Postal
Retirement
Service fund Account
(16)
(17)
Treasury
deposit
funds
(18)
Unemployment Trust
Fund
(19)
Other
(20)
929
966
1,346
828
1,649
14,286
16,241
18,534
23,269
21,489
164
148
134
125
114
9,530
10,146
11,167
11,475
7,751
10,917
11,150
11,310
11,666
11,852
3,063
3,339
4,679
3,826
1,270
8,356
9,097
10,081
10,457
10,596
304
151
212
147
130
50,186
47,228
34,898
36,563
39,745
106,376
143,912
163,426
180,883
184,959
2,145
2,150
1,829
1,649
1,727
1,307
1,274
1,391
1,060
1,077
1,086
739
945
23,557
23,214
21,968
21,489
20,739
19,787
19,778
19,895
20,508
19,814
20,875
20,448
20,900
117
119
117
114
114
113
113
115
113
111
110
108
109
10,233
9,529
8,940
7,751
7,245
6,812
8,246
8,442
9,173
9,349
9,859
9,703
9,631
12,051
12,000
11,917
11,852
11,791
11,723
12,152
12,098
12,017
11,919
11,832
11,748
12,176
5,456
4,755
5,303
1,270
613
1,281
1,197
1,541
1,799
3,010
3,707
4,387
3,871
10,236
10,186
10,643
10,596
10,538
10,514
10,475
10,572
10,661
10,850
11,054
11,205
11,253
121
142
130
130
140
146
264
151
138
131
135
127
135
38,983
38,277
41,204
39,745
39,365
40,993
40,494
38,887
39,387
37,645
38,058
47,076
46,663
185,205
184,979
186,304
184,959
196,924
202,441
201,745
201,713
202,446
202,260
201,563
205,356
205,784
FEDERAL DEBT
25
TABLE FD-4.--Interest-Bearing Securities Issued by Government Agencies
(In millions of dollars. Source: "Monthly Treasury Statement 01 Receipts and Outlays of the United Slales Government" and Financial Management Service]
End of
fiscal year
or month
Total
outstanding
(1)
Federal Deposit
Department of
Insurance Corporation
Housing and Urban
Federal Savings
Development
and Loan InsurBank
Federal
Insurance
ance Corporation,
Housing
resolution fund
Fund
Administration
(2)
(3)
(4)
FarmCedit
System
Financial
Assistance
Corp.
(5)
Other
independent
Tennessee
Valley
Authority
(6)
Other
(7)
1990 ........................
32,758
2,981
19,339
357
9,380
701
1991 ........................
17,751
95
6,124
336
10,503
694
1992 ........................
18,250
93
1,137
301
16,015
705
1993 ........................
24,682
93
943
213
1,261
21,675
498
1994 ........................
28,543
538
112
1,261
26,121
509
1994-June ...................
27,461
93
797
138
1,261
24,662
509
July ...................
27,834
93
797
82
1,261
25,091
508
Aug ....................
27.627
538
101
1,261
25,217
509
Sept. ..................
28,543
538
112
1,261
26,121
509
Oct. ...................
26.437
538
114
1,261
24,012
510
Nov....................
26,762
538
117
1,261
24,334
512
Dec....................
26,766
538
116
1,261
24,336
513
1995-Jan....................
26,745
507
59
1,261
24,403
514
Feb....................
26,455
158
60
1,261
24,460
516
Mar....................
26,459
158
65
1,261
24,459
515
Apr....................
26,479
158
70
1,261
24,472
516
May ...................
26,663
158
78
1,261
24,665
500
June ...................
26,861
158
81
1,261
24,858
502
FEDERAL DEBT
26
TABLE FD-S.--Maturity Distribution and Average Length of Marketable
Interest-Bearing Public Debt Held by Private Investors
._.
End 01
fiscal year
or month
_._. ____ llnmIIlIOllSOIaOllars_SOu~
Ar"r1wlI
outstanding
privately
(1)
20 years
andover
(6)
Average lenglh
(7)
267,573
280,574
295,921
82,713
84,900
84,706
94.345
88,208
235,176
273,304
308,141
324,479
335,401
6ylS.
6yrs.
5ylS.
5yrs.
Syrs.
11 mos.
10 mos.
8 mos.
87,702
87,621
88,235
88,208
328.383
329,153
334,601
335,401
334,451
330,035
328,150
329,970
329,543
329,533
328,699
328,269
328,153
Syrs.
Syrs.
Syrs.
5yrs.
' Syrs.
Syrs.
Syrs.
Syrs.
5yrs.
5yrs.
5yrs.
Syrs.
Syrs.
7 mos.
7 mos.
8 mos.
8 mos.
7 mos.
6 mos.
6 mos.
5 mos.
6 mos.
5 mos.
5 mos.
5 mos.
4 mos.
630,144
761,243
808,705
866,329
858,135
978,714
1,128,322
1994 - June ..............
July ..............
Aug...............
2,676,695
2,fI37,897
2,731,481
2.719.861
2.750,705
2,782.099
2,737.789
' 2,791,905
'2,829,671
2,841,506
2,795,125
2,851.360
2,847,129
878,396
888,349
899,256
8TI,932
904,001
926,834
906,618
'927,146
Dec...............
1995· Jan...............
Feb...............
Mar...............
Apr...............
May ..............
June ..............
8n,932
306,663
289,998
295,184
286,051
292,971
289,998
279,896
1,087,030
1,076,723
1,116,418
1,128,322
1,144,298
1,149,907
1,130,084
' 1,169,586
1.170,648
1,171.12S
1,148,083
1,173,686
1,170.628
'950,006
963,767
952,570
980,967
980,975
--------_ ... --_. ---.-
. ..
10-20
years
(5)
626,297
713,TIS
Nov...............
--
5-10
years
(4)
1,841,903
2,113,799
2,363,802
2,562,336
2,719,861
Sep!. .............
Oct. ..............
. _- .
1-5
years
(3)
...................
...................
...................
", .. ", .. ,." .. , ..
...................
1990
1991
1992
1993
1994
_ . _..
Maturi~ classes
W~hin
1 year
(2)
held'
~ICII_O!.MII!.!<!"F~~~L __ ..___ .
88,058
290,468
84.856
84,157
84,832
96,284
96,284
95,990
89,857
89,447
'288,781
' 280.372
283,190
280.798
269,784
278,581
2n.926
1 mo.
omos.
_.-._----_.---
TABLE FD-6.-Debt Subject to Statutory Limitation
[In millions 01 dollars. Source 'Monlhly Stalemem oIlne Public: Debt!!! Ihll United Stales')
Erv:loI
fiscal year
or month
Statutory
debt
limtt
(1)
Total
(2)
Debt oul&landing
sugect to limitation
Ptmlicdebt
(3)
Other debt 2
(4)
Interest·bearing debt
subject to limitation
Public debt
Otherdebl
(5)
(6)
Non-interest·bearing
public debt subject
to limitalion
(7)
........................
........................
........................
........................
........................
3.195,000
4.145,000
4.145,000
4.900.000
4.900.000
3,161,223
3,569,300
3,972,578
4,315.571
4,605,338
3,160,866
3,568,964
3,972,276
4,315,358
4.605,226
358
336
302
213
112
3,139,092
3,567,793
3,970.891
4,313,976
4,603,700
358
302
1.385
213
112
1,382
1,526
1994· June ...................
July ...................
Aug....................
4.900.000
4.900.000
4.900.000
4.900,000
4.900.000
4.900,000
4.900,000
4.900,000
4.900,000
4.900,000
4.900,000
4.900,000
4.900.000
4,559,294
4,549,569
4,605,090
4.605,338
4.646,368
4.690,304
4,711.004
4.726,369
4.764,890
4,559.156
4,549.499
4,604,988
4,605.226
4,646,254
4,690,187
4,710,888
4.726.310
4,764,829
4,m.432
4,763.087
4,815.075
4.861.261
138
69
101
112
114
117
116
59
61
65
70
78
81
4,557,553
4,530,982
4,603,416
4.603,700
4.644,762
4.688,691
4,681,657
4,724.438
4,762.800
4,772,614
4.744.114
4,813.316
4,859,554
138
1,603
18,517
1,572
1,526
1,492
1,496
29,231
1,872
1990
1991
1992
1993
1994
Sept. ..................
Oct....................
Nov....................
Dec....................
1995 - Jan....................
Feb....................
Mar....................
AfJr· ...................
May ...................
June ............... · ...
4,n4,497
4,763,157
4.815.153
4,861,342
, Beglnnl~ September 1976 the malunty dlslnbu\'011 ana average length was calculatllO on
Inleres -bearIng marketable deb! pnvately held PubllshllO data was cnange!l lor Ihe ana
lI1e
rConSISts
the "SCII years back Ihrough 1967.
or guarantaea
OebiossullO by the Federal
336
69
101
112
114
117
116
59
61
65
70
78
81
HOUSIng AdminiSlralion.
21.774
1,171
2,029
1,818
18,973
1,759
1,707
FEDERAL DEBT
27
TABLE FD-7 .--Treasury Holdings of Securities
Issued by Government Corporations and Other Agencies
[In millions 01 dollars. Source: 'Monthly Treasury Statement of Receip1s and Ou11ays of the United Sta1es Government']
End of
fiscal year
or month
Total
(1)
Commodity
Credit
Corporation
(2)
..............
..............
..............
..............
.............
227,263
251,996
206,410
183,196
163,642
16,619
21,794
17,282
24,745
16,909
1994 - June .........
July .........
Aug ..........
Sept. ........
Oct. .........
Nov..........
166,925
165,660
165,129
163,642
148,118
149,936
153,997
154,307
153,960
153,059
151,082
148.412
143,212
15,659
16,052
16,113
16,909
1,967
4,816
6,682
7,661
7,833
1990
1991
1992
1993
1994
Dec..........
1995 - Jan ..........
Feb ..........
Mar..........
Apr..........
May ........
June .........
Rural
Development
Administration
(3)
Department 01 Agricul1ure
Rural
Farmers
Electrification
Home
Administration
Administration
(4)
(5)
1,685
2,112
8,649
8,649
8,693
8,926
8,855
21,127
17,837
9,060
8,662
8,529
2,275
2,275
2,275
2,112
2,867
2,867
2,867
2,867
2,867
8,791
8.791
8,802
8,855
9,666
9,665
9,648
9,648
9,647
9,494
9.494
9,494
8,529
7,757
7,757
7,959
7,959
7,959
10,992
11,660
11,619
11,082
Department of
Education
(11)
Department of
Energy
Bonneville
Power
Administration
(12)
..............
..............
..............
..............
..............
716
731
2,770
2,673
2,612
1,694
1,672
1,906
2,332
2,617
1994-June .........
July .........
Aug ..........
Sept. ........
Oct. .........
Nov..........
Dec..........
1995 - Jan..........
Feb..........
Mar. .........
Apr..........
May .........
June .........
2,977
2,977
3,023
2,612
3,900
3,900
7,498
7,498
7,498
7,499
7,499
7,499
7,499
2,597
2,597
2,597
2,617
2,617
2,617
2,617
2,672
2,612
2,612
2,612
2,652
2,652
End of
fiscal year
or month
1990
1991
1992
1993
1994
Department of Agriculture, con.
Rural Housing
Rural Business
Foreign
and Community
and Cooperative
Agricultural
Development
Development
Service
Service
Service
(10)
(9)
(8)
5,690
5,690
5,690
5,710
FarmService
Agency
(6)
88
88
88
91
680
680
680
680
Rural
Utilities
Service
(7)
12,416
12,418
12,382
12,145
Department 01 Housing
and Urban Development
Federal
Housing
Other housing
Administration
programs
(13)
(14)
5,537
7,323
783
7,019
7,458
6,774
8,959
6,484
783
762
762
762
762
762
762
762
762
762
8,484
8,484
8,484
8,484
7,714
7,714
7,714
7,714
7,714
7,714
7,714
7,714
7,714
FEDERAL DEBT
28
TABLE FD-7.--Treasury Holdings of Securities
Issued by Government Corporations and Other Agencies, con.
______________________ lin millions 01 dollars Source "Monthly Treasury Statement 01 ReceIpts and Oudaysol the UMedStates Government"]
End 01
fiscal year
ormonlh
Department 01
Treasury
Federal Financing
Bank
(15)
Department 01
Veterans Affairs
Direct
Loan
loan
guaranty
lund
lund
(16)
(17)
Export"lmport
Bank 01 the
United Slates
(18)
Railroad
Retirement
Board
(19)
Small
Business
Administration
(20)
Other
(21)
1990 __ ......
158,456
1,730
4,497
1,218
1991 ..............
179,234
1,730
4,660
910
1992 ..............
149,422
1,730
1993 ..............
114,329
1994 ..............
94,357
1994 -June .........
921
8S
4,798
11
957
860
386
4,818
3,203
1,599
2
1,107
2,632
4,909
7,289
2,445
100,603
8
2,018
1,197
4,176
5,667
2,979
July .........
98,689
B
2,018
1,197
4,431
5,667
2,979
Aug ..........
97,804
8
2,018
1,197
4,667
5,667
2,979
Sept. _.......
94,357
2
1,107
2,632
4,909
7,289
2,445
Oct. .........
91,936
2
1,107
2,852
4,909
7,289
2,175
Nov.......
90,662
2
1,107
2,605
5,387
7,289
2,787
Dec......
88,817
2
1,107
2,605
5,643
7,289
2,787
1995" Jan ......
86,157
14
2,011
2,607
5,905
7,289
3,544
Feb..........
85,388
14
2,011
2,607
6,161
7,289
3,599
Mar..........
63,266
2,011
2,662
6,427
7,289
2,951
Apr. .. " " ...
80,374
2,011
2,662
6,693
7,289
2,932
May .........
77,739
2,011
2,662
6,692
7,289
2,934
June .. " .....
75,638
2,011
2,662
4,189
7,289
3,090
FEDERAL DEBT
29
CHARTS FD-A.--Average Length of Privately Held
Marketable Debt
[Charts are plotted from figures in Table FD-S.]
Years
6.--------------------------------.
June 30, 1995
5 Years, 4 Months
5.5
J
5+-~--~~--~~--~~--~~--~~
J
FMAMJJ
ASOND
Years
+-- June 1947
10 Years
5 Months
Dec. 1975
2 Years
5 Months
J
2~~~~~~~~~~~~mmmn~~~~~~~~TIDrr
45474951 535557 59 61 6365676971 7375777981 8385878991 9395
FEDERAL DEBT
30
CHART FD-B.--Private Holdings of
Treasury Marketable Debt, by Maturity*
(In billions of dollars)
II
D
D
D
D
2800
2600
2400
2200
2000
1800
1600
1400
June 30,1995
Over 10 years
2-10 years
1-2 years
1 year & under
1200
1000
800
600
400
200
L...---------~----------------------
o~--~--~----~--~----~--~--~----~--~----~~~~
1984
1985
1986
1987
1988
1989
1990
1991
1992
As of December 31
• Source: Depal1ment of the Trea,ury. Office of Market Finance
1993
1994
31
INTRODUCTION: Public Debt Operations
The Second Liberty Bond Act (31 U.S.C. 3101, et seq.)
allows the Secretary of the Treasury to borrow money by
issuing Treasury securities. The Secretary detennines the
terms and conditions of issue, conversion, maturity, payment,
and interest rate. New issues of Treasury notes mature in 2 to
10 years. Bonds mature in more than 10 years from the issue
date. Each marketable security is listed in the Monthly Statement of the Public Debt of the United States. The infonnation
in this section of the "Treasury Bulletin" pertains only to
marketable Treasury securities, current bills, notes, and bonds.
mature on the same Thursday as an existing 52-week bill is a
reopening of the existing 52-week bill. New issues of cash
m.anagement bills are also presented. High, low, and average
YIelds on accepted tenders and the dollar value of total bids are
presented, with the dollar value of awards made on both
competitive and noncompetitive basis.
Treasury accepts noncompetitive tenders of up to $1
million for bills and $5 million for notes and bonds in each
auction of securities to encourage participation of individuals
and smaller institutions .
• Table PDO-l provides a maturity schedule of interestbearing marketable public debt securities other than regular
weekly and 52-week bills. All unmatured Treasury notes and
bonds are listed in maturity order, from earliest to latest. A
separate breakout is provided for the combined holdings of the
Government accounts and Federal Reserve banks, so that the
"all other investors" category includes all private holdings .
• Table PDO-3 lists the results of auctions of marketable
securities, other than weekly bills, in chronological order over
the past 2 years. Included are: notes and bonds from table
PDO-l; 52-week bills from table PDO-2; and data for cash
management bills. The maturities of cash management bills
coincide with those of regular issues of Treasury bills.
• Table PDO-2 presents the results of weekly auctions of
13- and 26-week bills, as well as auctions of 52-week bills,
which are held every fourth week. Treasury bills mature each
Thursday. New issues of 13-week bills are reopenings of
26-week bills. The 26-week bill issued every fourth week to
• Table PDO-4 indicates the total amount of marketable
securities allotted to each class of investor. The Federal Reserve banks tally into investor classes the tenders in each
auction of marketable securities other than weekly auctions of
13- and 26-week bills.
TREASURY FINANCING: APRIL-JUNE
Auction of 2-Year and 5-Year Notes
April 19 Treasury announced it would auction $17,750
million of2-year notes of Series AD-1997 and $11,500 million
of 5-year notes of Series K-2000 to refund $16,094 million of
securities maturing April 30 and to raise about $13,150 million
of new cash.
The notes of Series AD-1997 were dated May 1, 1995,
due April 30, 1997, with interest payableOctober31 and April
30 until maturity. An interest rate of 6-1/2 percent was set after
the determination as to which tenders were accepted on a yield
auction basis.
Tenders were received prior to 12 noon, e.d.t., for noncompetitive tenders and prior to 1 p.m., e.d.t., for competitive
tenders on April 25, and totaled $41,204 million, of which
$17,751 million was accepted. All competitive tenders at
yields lower than 6.524 percent were accepted in full. Tenders
at 6.524 percent were allotted 76 percent. All noncompetitive
and successful competitive bidders were allotted securities at
the high yield of 6.524 percent with an equivalent price of
99.956. The median yield was 6.500 percent; and the low yield
was 6.480 percent. Noncompetitive tenders totaled $1,005
million. Competitive tenders accepted from private investors
totaled $16,746 million.
In addition to the $17,751 million of tenders accepted in
the auction process, $533 million was accepted from Federal
Reserve banks as agents for foreign and international monetary authorities, and $350 million was accepted from Federal
Reserve banks for their own account.
The notes of Series K-2000 were dated May I, 1995, due
April 30, 2000, with interest payable October 31 and April 30
until maturity. An interest rate of 6-3/4 percent was set after
the detennination as to which tenders were accepted on a yield
auction basis.
Tenders were received prior to 12 noon, e.d.t., for noncompetitive tenders and prior to 1 p.m., e.d.t., for competitive
tenders on April 26, and totaled $34,642 million, of which
$11,502 million was accepted. All competitive tenders at
yields lower than 6.815 percent were accepted in full. Tenders
at 6.815 were allotted 43 percent. All noncompetitive and
successful competitive bidders were aIlotted securities at the
high yield of 6.815 percent with an equivalent price of99.729.
The median yield was 6.800 percent; and the low yield was
6.771 percent. Noncompetitive tenders totaled $477 million.
Competitive tenders accepted from private investors totaled
$11,025 million.
In addition to the $11,502 million of tenders accepted in
the auction process, $550 million was accepted from Federal
Reserve banks as agents for foreign and international monetary authorities, and $353 million was accepted from Federal
Reserve banks for their own account.
PUBLIC DEBT OPERATIONS
32
TREASURY FINANCING: APRIL-JUNE, con.
52-Week Bills
April 21 tenders were invited for approximately $17.750
million of 3M-day Treasury bills to be dated May 4. 1995. and
10 mature May 2, 1996. The issue was to refund $16,593
million of maturing 52-week bills and to raise about $1.150
million of new cash. The bills were auctioned on April 27.
Tenders totaled $MA 71 million. of which $17.884 million was
accepted. including $1.072 million of noncompetitive tenders
from the public and $5,180 million of the bills issued to
Federal Reserve banks for themselves and as agents for foreign
and international monetary authorities. The average bank discount rate was 5.90 percent.
Treasury Calls
of 1995-2000
8-3/8
Percent
Bonds
April I I the Department of Treasury announced the call
for redemption at paron August 15. 1995, of the 8-3/8 percent
Treasury Bonds of 1995-2000. dated August 15. 1975. due
August 15. 2000. ~here were $4:6~2 million of these b~nds
outstanding, of which $2.347 millIon were held by private
investors.
May Quarterly Financing
May 3 Treasury announced it would auction $17,500
million of 3-year notes of Series X-1998 and $12,500 million
of IO-year noles of Series 8-2005 to refund $32,135 million
of Treasury securities maturing May 15 and to pay down about
$2.125 million.
The notes of Series X-1998 were dated May 15, 1995. due
May IS. 1998. with interest payable November 15 and May
IS until maturity. An interest rate of 6-1/8 percent was set after
the deternlination as to which tenders were accepted on a yield
auction basis.
Tenders were received prior to 12 noon. e.d.t.. for noncompetitive tenders and prior to I p.m .. e.d.t.. for competitive
lenders on May 9. and totaled $34.598 million. of which
$17.508 million was accepted at yields ranging from 6.140
percent. price 99.959, up to 6.:WO percent. price 99.798. !~n
ders at the high yield wen: allotted 40 percent. Noncompetitive
tenders "'ere accepted in full at the average yield, 6.165
percent. price 99.892. These totaled $805 million. Competitive
tenders accepted from private investors totaled $16.703 million.
In addition to the $17.508 million of tenders accepted in
the auction process. $210 million was accepted from Federal
Re~en'e banks as agents for foreign and international monetar\" authnritie~. and S3.~ million was accepted from Federal
Reserve banks for their own account.
The notes of Series B-2005 were dated May 15. 1995. due
l\lay 15. 2005. \'ith interest payable November 15 and May
15 until maturity. An interest rate of 6-1/2 percent was set after
the determination as lO which tenders were accepted on a yield
auction basis.
Tenders were received prior to 12 noon, e.d.t., for noncompetitive tenders and prior to I p.m .• e.d.t., for competitive
tenders on May 10, and totaled $20,931 million, of which
$12.503 million was accepted at yields ranging from 6.576
percent, price 99.449, up to 6.680 percent, price 98.702. Tenders at the high yield were allotted 92 percent. Noncompetitive
tenders were accepted in full at the average yield, 6.608
percent, price 99.219. These totaled $368 million. Competitive
tenders accepted from private investors totaled $12,135 million.
In addition to the $12,503 million of tenders accepted in
the auction process, $200 million was accepted from Federal
Reserve banks as agents for foreign and international monetary authorities, and $2,000 million was accepted from Federal
Reserve banks for their own account.
The notes of Series B-2005 may be held in STRIPS form.
The minimum par amount required is $400,000.
Auction of 2-Year and 5-Year Notes
May 17 Treasury announced it would auction $17,750
million of2-yearnotes of Series AE-1997 and $11,500 million
of 5-year notes of Series L-2000 to refund $16,300 million of
securities maturing May 31 and to raise abour $12,950 million
of new cash.
The notes of Series AE-1997 were dated May 31. 1995,
due May 31, 1997, with interest payable November 30 and
May 31 until maturity. An interest rate of 6-1/8 percent was set
after the determination as to which tenders were accepted on
a yield auction basis.
Tenders were received prior to 12 noon, e.d.t., for noncompetitive tenders and prior to I p.m., e.d.t., for competitive
tenders on May 23, and totaled $47,472 million, of which
$17,755 million was accepted. All competitive tenders at
yields lower than 6.170 percent were accepted in full. Tenders
at 6.170 percent were allotted 50 percent All noncompetitive
and successful competitive bidders were allotted securities at
the high yield of 6.170 percent with an equivalent price of
99.917. The median yield was6.150percent; and the low yield
was 6.120 percent. Noncompetitive tenders totaled $867 million. Competitive tenders accepted from private investors
totaled $16,888 million.
In addition to the $17,755 million of tenders accepted in
the auction process, $518 million was accepted from Federal
Reserve banks as agents for foreign and international monetary authorities, and $600 million was accepted from Federal
Reserve banks for their own account.
The notes of Series L-2000 were dated May 3], ] 995, due
May 31, 2000, with interest payable November 30 and May
31 until maturity. An interest rate of 6-1/4 percent was set after
the determination as to which tenders were accepted on a yield
auction basis.
Tenders were received prior to 12 noon, e.d.t., for noncompetitive tenders and prior to I p.m., e.d.t, for competitive
tenders on May 24, and totaled $29,132 million, of which
$11.502 million was accepted. All competitive tenders at
yields lower than 6.250 percent were accepted in full. Tenders
at 6.250 percent were allotted 94 percent All noncompetitive
PUBLIC DEBT OPERATIONS
33
TREASURY FINANCING: APRIL-JUNE, COD.
and successful competitive bidders were allotted securities at
the high yield of 6.250 percent with an equivalent price of
100.000. The median yield was 6.210 percent; and the low
yield was 6.180 percent. Noncompetitive tenders totaled $330
million. Competitive tenders accepted from private investors
totaled $11,172 million.
In addition to the $11,502 million of tenders accepted in
the auction process, $600 million was accepted from Federal
Reserve banks as agents for foreign and international monetary authorities, and $627 million was accepted from Federal
Reserve banks for their own account.
52-Week Bills
May 19 tenders were invited for approximately $18,250
million of 364-day Treasury bills to be dated June 1, 1995, and
to mature May 30, 1996. The issue was to refund $16,913
million of maturing 52-week bills and to raise about $1,325
million of new cash. The bills were auctioned on May 25.
Tenders totaled $42,542 million, of which $18,258 million was
accepted, including $1,030 million of noncompetitive tenders
from the public and $5,002 million of the bills issued to
Federal Reserve banks for themselves and as agents for foreign
and international monetary authorities. The average bank discount rate was 5.54 percent.
Cash Management Bills
May 3 tenders were invited for approximately $17,000
million of38-day bills to be issued May 15, 1995, representing
an additional amount of bills dated December 22, 1994, maturing June 22, 1995. The issue was to raise new cash. Tenders
were opened on May 11. They totaled $66,505 million, of
which $17,136 million was accepted. The average bank discount rate was 5.81 percent.
May 25 tenders were invited for approximately $17,000
million of 13-day bills to be issued June 2, 1995, repre5>enting
an additional amount of bills dated December 15, 1994, maturing June 15, 1995. The issue was to raise new cash. Tenders
were opened on May 31. They totaled $57,10 1 million, of
which $17,126 million was accepted. The average bank discount rate was 5.85 percent.
The notes of Series AF-1997 were dated June 30, 1995,
due lune 30, 1997, with interest payable December 31 and
June 30 until maturity. An interest rate of 5-5/8 percent was set
after the determination as to which tenders were accepted on
a yield auction basis.
Tenders were received prior to 12 noon, e.d.t., for noncompetitive tenders and prior to I p.m., e.d.t., for competitive
tenders on June 27, and totaled $42,315 million, of which
$17,753 million was accepted. All competitive tenders at
yields lower than 5.690 percent were accepted in full. Tenders
at 5.690 percent were allotted 3 percent. All noncompetitive
and successful competitive bidders were allotted securities at
the high yield of 5.690 percent with an equivalent price of
99.879. The median yield was 5.660 percent; and the low yield
was 5.630 percent. Noncompetitive tenders totaled $914 million. Competitive tenders accepted from private investors
totaled $16,839 million.
In addition to the $ 17,753 million of tenders accepted in
the auction process, $780 million was accepted from Federal
Reserve banks as agents for foreign and international monetary authorities, and $692 million was accepted from Federal
Reserve banks for their own account. The notes of Series
M-2000 were dated June 30, 1995, due June 30, 2000, with
interest payable December 31 and June 30 until maturity. An
interest rate of 5-7/8 percent was set after the determination as
to which tenders were accepted on a yield auction basis.
Tenders were received prior to 12 noon, e.d.t.. for noncompetitive tenders and prior to 1 p.m., e.d.t., for competitive
tenders on June 28, and totaled $32,545 million, of which
$11,505 million was accepted. All competitive tenders at
yields lower than 5.905 percent were accepted in full. Tenders
at 5.905 percent were allotted 51 percent. All noncompetitive
and successful competitive bidders were allotted securities at
the high yield of 5.905 percent with an equivalent price of
99.872. The median yield was 5.890 percent; and the low yield
was 5.850 percent. Noncompetitive tenders totaled $242 million. Competitive tenders accepted from private investors
totaled $11,263 miJlion.
In addition to the $11,505 million of tenders accepted in
the auction process, $250 million was accepted from Federal
Reserve banks as agents for foreign and international monetary authorities, and $700 million was accepted from Federal
Reserve banks for their own account.
52-Week Bills
Auction of 2-Year and 5-Vear Notes
June 21 Treasury announced it would auction $17,750
million of2-year notes of Series AF-1997 and $11 ,500 million
of5-year notes of Series M-2000 to refund $16,772 mi11i~~ of
securities maturing June 30 and to raise about $12,475 million
of new cash.
June 16 tenders were invited for approximately $18,250
million of 364-day Treasury bills to be dated June 29, 1995,
and to mature June 27, 1996. The issue was to refund $16,757
million of maturing 52-week bills and to raise about $1,500
million of new cash. The bills were auctioned on June 22.
Tenders totaled $41 ,807 million, of which $18,292 million was
accepted, including $887 million of noncompetitive tenders
from the public and $4,820 million of the bills issued to
Fedentl Reserve banks forthemselves and as agents for foreign
and international monetary authorities. The average bank discount rate was 5.22 percent.
0
PUBLIC DEBT OPERATIONS
34
TABLE PDO- J.--Maturity Schedules of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week Treasury Bills Outstanding, June 30, 1995
Dale of final malurity
1995
July 15
............................................ ..
July 31
................................. "
Aug. 15 .................. '" ........ ' " .................. .
Aug. 15 ................................................. "
Aug. 15 .................................................. .
Aug. 31 .................................................. .
Sept. 30 ................................................. .
Oct. 15 ................................................ ..
~~ ................................................. .
Nov. 15 .................................................. .
Nov. IS .................................................. .
Nov. 15 .................................................. .
Nov. 15 .................................................. .
Nov. 30 ......................................... .
~.~ ............................................... .
Descriplion
(1)
Issue dale
(2)
Tolal
(3)
Amount of malurities
Held by
U.S. Government
accounts and Federal
Reserve banks
(4)
8·7/8%·G nole
07115/88
08102193
08115/85
06101190
6,B05
17,183
7.956
8.877
18,038
17.577
17.904
562
1.097
891
2.936
776
961
6,505
16,621
6,859
7.986
15,102
16,801
16,943
7.195
18,271
1.482
7.319
486
1,087
63
273
6.709
17,IB4
1,419
7,046
9.023
19.187
18.604
794
3.081
752
8,230
16,106
17,852
4·1/4%·Y nole
'10·1/2%·C nole
8·1/2%·L note
4·5/8%·Q note
3·718%·Z note
3·7/B%·AB nole
8·518%·H nole
3·718%·AC nole
11·112% bond
, 9·112%·0 note
8·1/2%·M note
5·1/8%·R note
4·1I4%·AD note
4·1I4%·AE nole
08117/92
08131193
09/30193
10117/88
11/01193
10114/80
11115185
09/04190
11116192
11130/93
12131/93
TOlal. ............. .
1996
Jan. 15 ................................................. ..
Jan. 31 .... '" ................ " ......................... .
300
All olher
inveslors
(5)
19.305 ._ _ _,,-,1,.:. .:70:.: .5_ _--'17,~9_
194,726
15.764
178.962
9·1/4%·E nole
7·112%·K nole
01/17189
01131/91
7.421
9.438
4%·AC nole
'8·7/8%·A nole
, 8·7/8%·B nole
01/31194
Feb. 15.................
. ........... ..
Feb. 15 .................................................. .
18.414
8,451
Feb. 15 .......................................... .
Feb. 15 .................................................. .
Feb. 29...
. ........................................ ..
Feb. 29 .................... .
Mar. 31. .....
Mar. 31 .................... .
Apr. 15 .................... .
7·7/8%·J nole
4·51B%·X nole
7·1/2%·l nole
4·5I8%·AD nole
7·3I4%·M note
5·1/8%·AE nole
9·3I8%·F nole
03/31/94
04117/89
Apr. 30 ..................... .
7·5/8%·N note
5·1/2%·AF note
, 7·3I8%·C note
04130/91
05/02194
05115186
4·1/4%·Y nole
7·5I8%·P nole
5·7/8%·AG note
7·7/8%·Q nole
6°·.,·AH note
7·7/8%·G nole
7·7l8%·R note
05117/93
7.725
9,869
596
07131191
395
8.520
18,006
17.992
17.006
9,124
18,059
9,358
18.094
7,129
9.474
6·1/8~·o·AJ
note
08/01/94
19,416
1.209
18.207
4·3I8%·Z note
08116/93
09/03191
08131/94
09130191
09130194
10116/89
20.670
3.074
549
650
17,596
~~ ................................................ .
Apr. 30 ...... .
May 15 ...... .
May 15.
May31 ...... .
May31 ......... .
June30 .......................................... .
June 3D ......................................... .
July 15 ........ .
July 31 ..
July 31 .
Aug. 15 ..
Aug.31.
Aug. 21.
nole
6·1f4°i o·AK note
Sept. 30 .
Sept. 30 .. '" ......
Oct. 15 ................ ·.
7°·o·T nole
6·1/2°o·AL nole
8°1.·H nole
7'1!4~o'S
02115186
02115186
12103190
02116/93
02128191
02128194
04/01/91
05131191
05/31194
07/01191
06/30194
07117189
1.228
1.268
439
617
125
9.055
19.537
9.622
18.949
9,081
19,579
7,782
1,437
3.829
1,256
448
1.119
2,130
787
9.496
976
18.806
20.086
19,264
9.617
18,927
800
9.770
19.859
9.825
19.292
10.088
19.639
7,989
2.094
2.258
493
868
412
1,765
364
1.500
375
6,193
8,170
17,975
7,834
125
7,618
15,708
8,366
18,501
7,963
17,449
6,995
9.276
18.642
9.724
lB.139
7.614
PUBLIC DEBT OPERATIONS
35
TABLE PDO-l.--Maturity Schedules of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week Treasury Bills Outstanding, June 30,1995, con.
[In millions of dollars. Source: "Monthly Statement of the Public Debt of the United States," and Office of Market Finance) _ _ _ _ _ _ __
Date of final maturity
Description
(1)
1996, con.
Oct.31 .................................................. .
Nov. 15 .................................................. .
Nov. 15 .................... ·· .... ···· .................... .
Nov. 30 ..................... " ...... , ............... , .... .
Nov. 30 .................... ·· .... · ....................... .
Dec. 31 .................................................. .
Dec. 31 .................................................. .
2
6-7/8%-U note
7-1/4%-D nole
4-3/8%-AB nole
6-1/2%-V nole
7-1/4%-AN note
6-1/B%-W note
7-1i2%-AP nole
Issue date
(2)
Total
(3)
Amount of maturities
Held by
U.S. Government
accounts and Federal
Reserve banks
(4)
All other
inveslors
(5)
10/31/91
28,331
1,6S0
26,671
11/15/66
20,259
1,306
18,953
11/15/93
22,065
4,527
17,538
12102191
9,871
210
9,661
11/30/94
18,940
397
18,543
12131191
9,635
200
9,435
01/31/95 _ _----'-t9'-'.,6:;.::0-=-8_ _ _-'-'1,-"=42:.:.0_ _ _1:.:.8,'-18~8
Total. .. ........... ===51=6=,50=1===4=2,=65=3-====47=:3,=:84=8
1997
Jan. 15 ............................................. .
Jan. 31 .................................................. .
Jan. 31 .......................................... .
Feb. 15 .................................................. .
Feb. 28 ............................................. , .... .
Feb. 2B .......................... , ..................... , ..
Mar.31 .................................................. .
Mar. 31 .................................................. .
Apr. 15 .................................................. .
A.pr. 30 .................................................. .
Apr. 30 .................................... ·· .... ···· .. ···
May 15 .................................................. .
MayI5 ................................................ .
May 31 ................................................ .
May 31 ........... , " ...... " .... , .. " .............. '" .. .
June 30 ............. ' ................................... .
June 30 ............................ " ., ................. .
July 15 .................................................. .
July 31 ............................. " ., ................. .
Aug. 15.... . .. ... .... ... .. .. .. . ... . .. " .. " ......... '"
Aug. 15 .................................... ··.····.·······
Aug. 31 .................................................. .
Sept. 30 ...................... , .......................... .
Oct. 15 .................................................. .
Oct. 31 .................................................. .
Nov. 15 ................................... · ...... ·········
Nov. 15 .................................... ···············
Nov. 30 .. ............ , ........................ , .......... .
Dec. 31 .................................................. .
8%-0 note
7-1/2%-Z note
6-1/4%-H note
4-3/4%-V note
6-7/6%-AB note
S-3/4%-J nole
6-7/8%-K nole
6-5/8%-AC nole
8-1/2%-E note
6-7/8%-L note
6-1/2%-AD note
2 8-1/2%-A note
6-112%-W note
6-314%-M note
6-1/80/0-AE note
6·3/80/0-N note
5-S/8%-AF note
8-1/2%-F note
5-112%·P note
2 8-5/8%-B note
6-1/2%-X note
5-518%·Q note
5-1/2%-R note
8-314%-G note
5-314%-8 note
2 8-7/8%-C note
7-318%-Y note
6%-Tnote
6%-U nole
01/16/90
7,852
499
7,354
01131195
19,002
678
18,324
01/31/92
9,464
150
9.314
02115194
19,832
1,910
17,922
02128/95
18,816
975
17,841
03102192
9,948
472
9,476
03131/92
11,302
534
10,768
03131/95
19,354
1.368
17,986
04/16190
7,860
641
7,220
04/30/92
11,441
1,040
10,401
05101195
18,708
510
18,198
05115187
9,921
613
9,308
05116194
21,750
3,615
18,135
06/01192
11 ,049
324
10,725
05/31195
18,937
1,932
17,005
06130/92
11 ,054
455
10,599
06/30/95
19,256
2,978
16,278
07/16/90
8,385
766
7,619
07/31/92
12,104
400
11,704
OB/15/87
9,363
497
8,866
OB/15/94
20,250
2,263
17,987
08/31/92
11,109
574
10,535
09130/92
12,139
541
11.598
10/15/90
8,860
681
8,179
11/02192
11,383
340
11,043
11/15/87
9,808
600
9,206
11/15194
20,861
3,312
17,549
11/30/92
11,526
401
11,125
2
12131/92 _ _ _1.:,: 2-,-1,-,""S3'---_ _--=-50=-cl____1""1,,,,,66cc-
Total .............. , ===39=3=,4=97===2=:9=:,56=8===36=3,=:92=9
1998
Jan. 15 .............................................. .
Jan. 31 ........... '" ... , ............ , ., .............. .
Feb. 15 ................................... ···.········
Feb. 28 ........... '" ...... , ..................... , .. , .... .
Feb.2B ............. , ... , .................. ··.··········· .
7·718%-E note
5-5I8%-J note
, B-118%-A note
7-1/4%-W nole
5-118%-K note
01/15191
02101/93
02115/88
02115/95
03101193
9,126
12,339
9,159
21,080
11,686
710
519
279
3,131
454
8.416
11,820
6.8BO
17,949
11,232
36
PUBLIC DEBT OPERATIONS
TABLE PDO-l.--Maturity Schedules of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week Treasury Bills Outstanding, June 30, 1995, con.
Date of final maturity
.
1998, con.
- ._------
--------
Mar. 31 .................................... .
Apr. 15 .............................................. .
Apr.30 .................................................. .
May 15 ........... __ ..................................... .
May 15 ............... _................................. .
May 31 . . .. .. . .. . .. .. .
.. . .. .. . .. .. . .. . .. . .. .. ....... .
June 30 ................................................. .
July 15 . """ ........................................... .
July 31 .................................................. .
Au~ 15 .......................................... , ....... .
Aug. 31. . ............................................... .
SepI.3O ............................................... .
Ocl. 15 .............. '" ....... " ....................... ..
Ocl31 .................................................. .
Nov. 15 .................................... '" ... , ....... .
Nov. 15 .................................................. .
Nov. 30 ............................................ .
Dec. 31 .................................................. .
Descriplion
(1)
5-1I8%·L note
7-7/8%-F nole
5-1I8%·M nole
'9%-8nole
6-1/8%-X note
5-318%-N note
5-118%-P nole
8-1I4%-G note
5-114%-0 note
1 9-1I4%-C note
4-314%-R note
4-314%-5 note
7-1I8%-H note
4-314%-T note
28-7/8%-0 nole
3-112% bond
5-IIBoio-U nole
5·1I8%-V nole
Issue date
(2)
03131193
04115191
04/30193
05115/88
05115195
06101193
06130193
07115191
08102193
08115/88
08131193
09130193
10115191
11101/93
11115188
10103160
11130/93
12131193
Total. .. ...... ......
Total
(3)
13,149
8,788
12,225
9,165
21,226
12,358
12,596
9,694
11,689
11,343
13,019
12,576
10,268
13,023
9,903
237
12,115
12,444
269,208
Amount 01 maturities
Helclby
U.S. Government
accounts and Federal
Reserve banks
(4)
1,295
585
495
478
3,544
All other
inveslors
(5)
22,668
11,854
8,204
11,730
8,687
17,682
11,553
11,125
8,524
11,192
10,588
12,428
11,676
9,299
12,133
9,393
75
11,236
10,864
246,540
852
431
637
435
2,101
1,099
1,220
878
637
1,669
347
1,029
9,707
12,470
9,083
11,479
10,679
9,079
11,072
9,170
11,702
11,432
9,659
11,382
625
751
1,079
805
1,471
1,170
497
755
591
900
969
890
510
162
879
1,~O
1999
Ja~ 15 .................................................. .
Jan. 31 ................................... "'" .......... .
Feb. 15 ................................................ ..
Feb. 28 .................................................. .
Mar. 31 .................................................. .
Apr. 15 .................................................. .
Apr. 30 .................................................. .
May 15 ......
May31 .................................................. .
June 30 ................................................ ..
July 15 .................................................. .
July 31 "'" ............................................. .
Aug. 15 ........................... '" .................... .
Aug.31 ................................................ .
SepI3O .............................................. .
Ocl15 ............................................ '" ... .
Oct 31 .................................................. .
Nov. 15 .................................................. .
Nov. 30 ..
Dec. 31
6-318%-E nole
S%·J note
'8-7/8%·A nole
5-1I2%-K nole
5-7/8%-L note
7%-F nole
6-1I2%-M nole
2 9-118%.8 nole
6-314%·N nole
6-314%·P nole
6-318%·G nole
6-7/8%-0 note
, 8%-Cnole
6-7/8%-R nole
7-118%-5 nole
6%-H nole
7-1/2%-Tnole
'7-7/8%-0 nole
7-314%-U nOle
7-314%-V nole
01115/92
01131194
02115189
02128194
03131194
04115192
05102194
05115189
05131194
06130/94
07115192
08101194
08/15189
08131194
09/30/94
10115192
10131/94
11115/89
11130194
01103195
TOlal. ..............
10,559
12,901
9,720
11,914
12,780
10,178
12,292
10,047
12,339
13,101
10,006
12.411
10,164
12,397
12,836
10,337
12,152
10,n4
11,934
12,523
231,365
1,330
9,539
11,646
11,757
9,931
11,654
10,107
11,599
11,193
17,024
214,341
10,104
12,229
10,673
690
362
757
9,414
11,867
9,916
406
498
667
335
2000
Jan 15.
Jan 31.
Feb. 15 ..
6-318°'.-E note
7-3i4°'o-G nole
• 8-1 !2"~-A note
01115193
01131/95
02115190
PUBLIC DEBT OPERATIONS
37
TABLE PDO-l.--Maturity Schedules of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week 1reasury Bills Outstanding, June 30, 1995, COD.
[In millions of dollars. Source: "Monthly Statement of the Public Debt of th" United States," and Offic" of Market Finance]
Description
(1)
Date of final maturity
Amount of maturities
Held by
U.S. Government
accounts and Federal
Reserve banks
(4)
All other
investors
(5)
12,752
12,463
870
1,146
360
353
480
627
700
11,626
12,042
10,175
12,080
10,016
12,125
11,763
11,081
4,612
11,520
844
2,219
816
144,582
10.224
10,237
2,393
10,704
134,358
Issue date
(2)
Total
(3)
02/28/95
03131/95
04/15/93
05101/95
05115/90
05131/95
06130/95
08/15190
08/15175
11115/90
12,496
13,188
10,535
2000, con.
Feb. 29 .................................................. .
Mar. 31 .................................................. .
Apr. 15 ........................................... .
Apr. 30 ........................................... , ...... .
MayI5 ........................................... , ...... .
May31 .................................................. .
June 30 ., .. , .................. , .. , ........ , ......... , ... .
Aug. IS .................................................. .
Aug. 15,95-00 ............................................ .
Nov. 15 .................................................. .
7-1/8%-H note
6-7/8%-J note
5-1I2%-F note
6-1/2%-K note
2 8-7/8%-B note
6-1/4%-L note
5-7/8%-M note
2 8-314%-C note
8-318% bond
28-1/2%-0 note
TotaL .....
12,433
10,496
2001
Feb.1S .....•..•................ _._ .........•........... "
Feb. 15 ....... _....•......................................
May 15 .................... _...... - ...................... .
May 15 .... _............................................. .
11-314% bond
27 -314%-A note
13-1/8% bond
2 8%-B note
01/12181
02115191
04102181
05115191
1,501
11,313
1,750
12,398
161
678
166
842
1,340
10,636
1,584
11,556
Aug. IS .................................................. .
Aug. 15, 96-01 ... , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
Aug. IS ............................ , ..................... .
'7-7/8%-C note
8% bond
13-318% bond
15-314% bond
2 7-1/2%-0 note
08115/91
08/16176
07/02181
10107/81
11/15191
1,070
758
256
TotaL ..............
12,339
1,485
1,753
1,753
24,226
68,518
11,269
727
1,497
1,580
22,823
63,012
01/06182
05115/92
08/17/92
09/29/82
1,759
11,714
23,859
2,753
Total ...............
40,085
01/04/83
3,007
684
2,323
23,563
3,249
3,501
28,011
7,26D
68,591
2,070
206
21,493
3,043
3,147
24,391
6,856
61,252
12,955
3,755
14,440
550
618
1,881
12,405
3,137
4,000
13,346
8,302
241
849
544
3,759
12,497
7,758
Nov. IS ............................ , ..... , ............... .
NO\l.1S ............... .................... , .............. .
173
1,403
5,506
2002
Feb. 15 ........................................ , ......... .
May 15 .................................... ···· ... ········
Aug. 15 .................................................. .
Nov. 15 ........................................... ·····.··
14-1/4% bond
'7-1/2%-A note
2 6-318%-9 note
11-5/8% bond
160
971
2,040
348
3,519
2003
Feb. 15 .............. , ............... , ................... .
Feb. 15 ........... ' ...................................... .
May 15 ..................... , ............................ .
Aug. 15 .............. , ................................... .
Aug. 15 .................................... ·· .... ·········
Nov. 15 ..................... ' ............................ .
10-314% bond
1 6-1I4%-A note
10-314% bond
11-118% bond
, 5-3/4%-8 note
11-7/8% bond
02/15/93
04/04183
07/05183
08111,/93
10/05/83
TotaL ..............
2004
Feb. 15 .................................... .
May'5 .......................................... ········ .
May 15 ................. , ............ · ..... ····.··········
Aug. 15 ..................................... , ........... .
Aug. 15 ................................................ .
Nov. 15 ................................................. .
2
5-7/8%-A note
12-318% bond
2 7-1/4%-B note
13-314% bond
'7-1/4%-C note
2 11-5/8% bond
02115/94
04/05/84
05116194
07/10/84
08115194
lDI30/84
354
3,620
404
7,339
1,599
10,743
21,819
2,405
36,566
12,559
PUBLIC DEBT OPERATIONS
38
TABLE PDO-l.--Maturity Schedules of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week Treasury Bills Outstanding, June 30,1995, con.
Date oIlinal maturity
Amount 01 matunlies
Held by
U.S. Government
accounts and Federal All other
Reserve banks
inveslors
Description
Issue date
Total
(1)
(2)
(3)
(4)
(5)
11/15/94
14,374
71,172
1.853
6,536
12,521
2004,con.
Nov. 15 .................................................. .
27-7/8"10-0 note
Total. ............. .
2005
Feb. 15 .................................................. .
May 15,00,05 ., .......................................... .
May 15 .................................................. .
May 15 .................................................. .
Aug. 15 .................................................. .
1,150
02115195
13.835
'7-112%·A note
4,224
2,m
05115175
8-1/4% bond
4,261
214
'12% bond
04lO2I85
14,740
2,000
05115195
6-1/20/0·B note
, 10-314% bond
071W85 _ _ _.9,270 .. _ _ ~ _.....
46,330
6,066
Total .............. .
64.636
--
12,685
2,047
4,047
12,740
8,745
40,264
==-:-:-=..---=--==..:....----=-==-=-=.----==-:-:-.----- .
2006
Feb. 15 .................................................. .
i
9-318% bond
01/15186
4,756
....:20=-_ _ ._.4!!~
Total ............... ===4=,7=56====-=2=0====4,736=
2007
Feb. 15. 02-07 ............................................ .
Nov. 15. 02-07 ............................................ .
7-5I8"to bond
7.7180.. bond
02115/77
4,234
1,546
2,688
11/1sm _ _.....:\49~ __ ..._._ 379 ___ ._'.J.1?
Total...............
5,729
1,924
3,805
2008
Aug. 15, 03-08 ................................ , ........... .
Nov. 15. 03·08 ............................................ .
2009
May 15, 04-09 ............................................ .
Nov. 15,04-09 ............................................ .
8.3180... bond
8-314% bond
2,103
08115178
789
11115178 _ _- - -5,230
- " = ' - -_ _
1,666
7,333
2,455
TOlal .............. .
9-118% bond
10-318% bond
05115179
t 1115/79
TotaL ............. .
"-314'1'0 bond
10% bond
12-314'1'0 bond
1,949
6,858
=====================
13-718% bond
14~0 bond
05115181
4,609
11116181 _ _---"<==_
4,001
9.510
TotaL ............ "
1,636
1,810
3,475
6,922
.-
1,029
3,580
. _ _~ ____ .~QI6
1,914
7,596
====================~
10-3I8~0 bond
11115182
11,O~. _._"_,, 1,652
-----'-'=
11,032
1,652
9,380
9,380
12"'", bond
08115183 _ _......:....:!.:.:~
14,755 _ _ _~~
2,931 _ _ _ _...!.!.!=11,824
14,755
TotaL ............. .
11,824
2,931
===================
2014
May 15.09-14 ........................................... .
Aug. 15.09-14 ........................... , ., ..... '" ...... .
3,758
.
============~~~~===
Total .............. .
2013
Aug. 15.08-13 ............................. , .............. .
848
1,1Q.!'. ___ 3,,1.09. .
2,494
858
2,987
I,m
4,736
1,261
------'~~----~~10.217
TotaL ............. .
3,295
2012
Noy. 15.07·12 .................. ..
4,606
4,291 .. 8,807
02115180
05115180
11117180
2011
May 15,06-11 ............................. .
Nov. 15.06-11 ............................. .
4,878
==~~===========-
2010
Feb. 15.05·10 ........................................... ..
May 15, 05-10 ., .......................................... .
Noy. 15.05·10 ....................................... .
1,315
3,~_
13·114"0 bond
12-1 i2°i: bond
05115/84
08115184
5,007
5,128
539
846
4,468
4,282
PUBLIC DEBT OPERATIONS
39
TABLE PDO-l.--Maturity Schedules of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week Treasury Bills Outstanding, June 30,1995, con.
[In millions of dollars. Source: "Monthly Statement of the Public Debt of the United Stales,' and Office of Market Finance]
Date of final maturity
Issue date
(2)
Total
(3)
Amount of maturities
Held by
U.S. Government
aCCDunts and Federal
Reserve banks
(4)
11/15/84
6,006
16,141
1,135
2,520
4,871
13,621
11/15/85
12,668
7,150
6,900
1,586
905
442
Total ...............
26,718
2,932
11,082
6,245
6,459
23,786
7,267
18,824
18,864
44,955
760
1,290
1,045
Description
(1)
All other
investors
(5)
2014, con.
Nov. 15,09·14 ............................................ .
, 11·3/4% bond
Total ...............
2015
Feb.1S .................................................. .
Aug. 15 .................................................. .
Nov. 15.............................................. .
'11·1/4% bond
210·518% bond
29·7/8% bond
02115185
08/15/85
2016
Feb. 15 .................................................. .
MayI5 .................................................. .
Nov. 15 .................................................. .
29·1/4% bond
'7·1/4% bond
'7·1/2% bond
02115/86
05/15/86
11/15/86
Total ...............
3,095
6,507
17,534
17,819
41,860
17,770
13,197
30,967
297
2017
MaylS .................................................. .
Aug. 15............... , .................................. .
2 8-3/4% bond
'8-7/8% bond
05/15/87
08/15/87
18,194
14,017
Total ...............
32,211
424
820
1,244
8.709
9,033
17,742
306
603
8,412
8,727
17,139
473
1,395
1,868
18,778
18,619
37,597
9,663
9,769
20,694
40,126
250
2018
May 15 ............ , ............... " ................ , .. , .
Nov. 15 ..
29-1/8% bond
05115/88
'9% bond
11/15/88
Total ...............
2019
Feb. 15 ........ '" ................ , .. , .. " .. " ........... .
Aug. 15 ........ '" ., ..... " ....... '" ................ , ... .
08i15189
19,251
20,214
Total. . ....... ......
39,465
'8·7/8% bond
28-1/B% bond
02115/89
2020
Feb. 15 ............................................. .
May 15 .................................................. .
Aug. 15 ................................................. .
2021
Feb. 15 •..........................................
May 15 .......................................... .
Aug. 15 ................................. , .............. .
Nov. 15 .................................................. .
05115190
08115190
10,229
10,159
21,419
TotaL ..............
41,807
566
390
725
1,681
02115191
05115/91
08115/91
11/15/91
11,113
11,959
390
10,863
11,569
Total. , .............
12,163
32,798
68,033
320
815
1,775
11,843
31,983
66,258
08117/92
11/16/92
10,353
10,700
510
470
9,843
10,230
TotaL ..............
21,053
980
20,073
02115193
18,374
1,018
17,356
28.1/2% bond
28·3/4% bond
, 8·314% bond
, 7·7/8% bond
, 8-1/8% bond
28.1/8% bond
'8%bond
02115190
2022
Aug. 15 ......................................... .
Nov. 15 ......................................... .
2023
Feb. 15 .................................................. .
'7·1/4% bond
, 7·518% bond
27·1/8% bond
PUBLIC DEBT OPERATIONS
40
TABLE PDO-l.--Maturity Schedules of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week Treasury Bills Outstanding, June 30,1995, con •
.. __ . _J~.!"llIoons 0' dollars
Source: "Monthly Statemenl oItha Public Debt oItha United StalBs: and OIIica 01 Markll._'F_ina_IDI--=-1_ _ _ _ __
Amount of maturities
HeId~
U.S. Government
Date 01 final maturity
Description
(1)
Issue date
(2)
Total
(3)
accounts and Federal
Reserve banks
(4)
All other
investors
(5)
2023, con,
Aug. 15 ....................................... " ......... .
, 6·114% bond
08115193 _ _~~"!~
22,909 _ _---.:~
BBO ... ---- .. 22,~
-,.
41,283
I,B98
39,385
Total. .............. ==========-=--::,.....,.-~~
2024
Nov. 15 .................................................. .
11,470
08115194 _ _--...!.!.L!."..~
450
11,020
11,470
450
11,020
TOtal ........•...... =~====--==~==~~
'7·112% bond
2025
Feb. 15 .................................................. .
11,725 _
02115195 _ _-!..!.!=
11,725
Total ...............
'7·518% bond
700
700
",02~ .
=====-=====:=-::-c=-=-:--:=:;""
1
Thts security is a Ioretgn.targated Treasury nota.
2 Thts security IS ehgible lor stripping See table Viol the 'Monthly Stallment of the Public
Debt 011118 United Sfliles.·
11,025
PUBLIC DEBT OPERATIONS
41
TABLE PDO-2.--0fferings of Bills
[Dollar figures in millions. Source: "Monlhly Statement of the Public Debt of the Unfted States· and allotmentsl
Oescri~tion
Issue date
Regular weekly:
(13 week and 26 week)
1995 - Mar. 2 ......
Maturity date
(1)
of new issue
Number of
days to
Amounlof
maturity 1
bids tendered
(2)
(3)
Amounts of bids acce~ted
OnoomOn noncomTotal amount
petitive basis 2
petitive basis 3
(4)
(5)
(6)
Amount
maturing on
issue date of
new offering
(7)
Total unmatured
issues outstanding after
new issues
(8)
1
31
8
7
15
14
22
21
29
28
6
5
13
12
20
19
27
26
3
2
10
9
17
16
24
24
31
30
7
7
14
14
21
21
28
28
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
91
182
46,740.6
45,755.0
44,106.7
46,173.7
44,839.0
52,672.9
43,428.5
45,346.3
46,590.3
46,895.9
49,084.3
50,676.1
51,094.4
54,730.3
41,118.4
41,771.8
48,674.7
49,136.6
55,798.4
46,525.2
47,358.3
48,247.3
54,286.1
45,648.4
50,816.5
50,686.6
46,504.3
51,549.4
42,385.8
45,430.6
50,791.1
45,847.5
45,772.6
50,236.7
49,650.7
52,262.6
13,389.8
13,523.1
13,058.8
13,140.1
12,465.1
12,466.4
12,537.1
12,621.0
12,116.0
12,122.0
12,039.3
12,205.7
11,671.2
11,661.8
11,634.0
11,650.7
11,731.5
11,767.8
12,443.5
12,299.4
12,948.5
12,984.5
13,483.3
14,745.7
13,998.8
14,956.4
14,357.6
14,871.4
14,253.4
14,260.6
14,334.5
14,299.9
14,286.0
14,361.1
13,878.6
14,415.5
12,016.0
12,143.7
11,546.8
11,m.4
10,997.1
11,203.5
11,132.0
11,244.4
10,781.5
10,709.0
10,670.9
10,852.1
10,230.9
10,215.3
10,255.5
10,360.9
10,420.2
10,697.2
11,031.4
10,967.9
11,432.6
11,582.7
12,019.5
13,414.5
12,468.1
13,599.7
12,980.2
13,674.1
12,787.3
12,896.4
12,923.4
13,047.0
12,877.7
13,121.5
12,535.1
13,239.9
1,373.8
1,379.4
1,512.0
1,367.7
1,468.0
1,262.9
1,405.1
1,376.6
1,334.5
1,413.0
1,368.4
1,353.6
1,440.3
1,446.5
1,378.5
1,289.8
1,311.3
1,070.6
1,412.1
1,331.5
1,515.9
1,401.8
1,463.8
1,331.2
1,530.7
1,356.8
1,377.4
1,197.3
1,466.1
1,364.2
1,411.1
1,252.9
1,40B.3
1,239.6
1,343.5
1,175.6
13,890.1
12,395.0
13,854.6
12,273.7
13,932.5
11,956.7
13,146.9
11,776.8
13,259.0
11,678.5
13,837.1
12,919.8
13,622.1
13,284.4
13,524.6
13,127.5
13,479.3
13,669.6
13,512.8
14,050.2
13,929.7
13,706.8
14,408.7
13,887.5
13,569.1
13,767.2
13,389.8
14,056.3
13,058.8
14,159.7
12,465.1
14,357.9
12,537.1
13,182.5
12,116.0
13,489.2
176,445.6
349,454.0
175,649.8
350,320.4
174,182.4
350,830.1
173,572.6
351,674.3
172,429.6
352,117.8
170,631.8
351,403.7
168,680.9
349,781.1
166,790.3
348,304.3
165,042.5
346,402.5
163,973.2
344,651.7
162,992.0
343,929.4
162,066.6
344,787.6
162,496.3
345,976.8
163,464.1
346,791.9
164,658.7
346,892.8
166,528.1
346,834.8
168,277.0
348,013.4
170,039.6
348,939.7
2 ...... 1995 - June 2
30 .....
June 29
28 .....
July 27
25 .....
Aug. 24
22 .....
Sept. 21
20 .....
Oct. 19
17 .....
Nov. 16
15 ... "
Dec. 14
12 .. '" 1996 - Jan. 11
9 ......
Feb. 8
7
9 ......
Mar.
6 ......
4
Apr.
4 ......
2
May
1 ......
May 30
29 .....
June 27
364
364
364
364
364
364
364
364
364
364
364
364
364
364
364
59,706.5
50,142.2
54,251.1
43,661.4
53,446.5
51,239.1
55,604.4
42,002.3
49,929.3
51,445.4
48,315.7
43,045.6
64,539.0
42,862.6
42,836.3
16,912.9
16,756.5
16,963.4
16,837.2
16,805.1
17,276.1
17,480.2
17,078.4
17,351.2
17,455.2
17,352.4
17,574.2
17,953.4
18,579.5
19,321.3
15,919.4
15,747.8
15,997.5
15,903.9
15,894.0
16,492.6
16,619.5
15,807.1
15,889.0
15,690.3
15,967.1
16,355.4
16,849.5
17,517.3
18,412.8
993.5
1,008.7
965.9
933.3
911.1
783.5
860.7
1,271.3
1,462.2
1,764.9
1,385.3
1,218.8
1,103.9
1,062.2
908.5
14,770.7
15,340.3
15,267.5
15,298.8
15,341.4
15,875.4
16,154.5
16,237.6
16,036.7
16,521.2
16,531.3
16,622.7
16,593.5
16,912.9
16,756.2
208,829.1
210,245.3
211,941.2
213,479.6
214,943.3
216,344.0
217.6697
218,510.5
219,825.0
220,759.0
221,580.1
222,531.6
223,891.5
225,558.1
228.123.2
Cash management:
1995 - Apr. 3 ...... 1995 - Apr. 20
May 15......
June 22
June 2 ......
June 15
17
38
13
100,412.0
66.5047
57,101.0
25,108.9
17,135.7
17,126.0
9 ......
16 .....
23 .....
30 .....
Apr.
6 ......
13 .....
20 .....
27 .....
May 4 ......
11 .....
18 .....
25 .. '"
June 1 ......
8 ......
15 .....
22 .....
29 .....
52 week:
1994 - June
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1995 - Jan.
Feb.
Mar.
Apr.
May
June
June
See footnotes at end of table.
June
Aug.
June
Sept.
June
Sep\.
June
Sept.
June
Sept.
July
Oct.
July
Oct
July
Oct.
July
Oct.
Aug.
Nov.
Aug.
Nov.
Aug.
Nov.
Aug.
Nov.
Aug.
Nov.
Sept.
Dec.
Sept.
Dec.
Sept.
Dec.
Sept.
Dec.
25,108.9
17,135.7
17,126.0
PUBLIC DEBT OPERATIONS
42
TABLE PDO-2.--0tTerings of Bills, con.
IDollalllgures In mllhons Source "Momnly Statement olIn. Pubhc Debt of the Unlled Slales" and allolmenls) .______. _ .
-
Issue dale
On Iolal bids accepIed
Average
Average
discount rate
investment rate •
Average pnce
(percent)
(percenl)
per hundred
(9)
___ ._(101 ____
9 .... .
16 ... .
23 ... .
30 ... .
Apr.
6 .... .
13 ... .
20 ... .
27 ... .
98.552
97.017
98.541
96.967
98.544
97.007
98.544
97.012
98.574
97.068
98.544
97.017
98.559
97.048
98.595
97.123
98.569
97.093
May 4 .... .
11 ... .
18 ... .
25 ... .
98.549
97.048
98.517
97.144
98.557
97.123
98.554
97.092
98.574
97.164
98.615
97.295
98.592
97.189
98.620
5.73
5.90
5.17
6.29
5.76
5.92
5.94
5.91
5.64
5.80
5.76
5.90
5.70
5.84
5.56
5.69
5.66
5.75
5.74
5.84
5.63
5.65
5.71
5.69
5.72
5.91
6.18
5.95
6.00
5.94
6.20
5.76
6.19
5.82
6.07
5.94
6.18
5.88
6.12
5.73
5.96
5.84
6.02
5.92
6.12
5.81
5.91
5.89
5.96
5.90
97.093
98.549
97.048
98.517
97.144
98.557
97.123
5.54
5.22
5.97
5.81
5.85
6.09
5.94
5.95
5.97
5.81
5.86
5.90
94.398
94.722
3 .... .
99.718
May 15 ... .
99.387
99.789
94.560
94.216
93.842
93.175
93.064
5.92
5.76
5.91
5.65
5.80
5.76
5.90
5.70
5.84
5.56
5.69
5.66
5.75
5.74
5.84
5.63
5.65
5.71
5.69
94.550
94.216
93.842
93.165
93.064
93.337
93.172
93.903
94.024
94.378
94.712
4 ... ..
May
94.580
6.00
5.77
5.39
June I. ... .
June 29 .. ..
94.934
94.904
94.742
5.n
94.934
94.904
6.02
Nov.
Dec.
1995-Jan.
Feb.
Mar. 9 .... .
Apr. 6 .... .
98.557
97.032
98.552
96.9n
98.549
97.017
98.552
97.017
5.01
5.04
5.20
5.37
93.913
94.034
Oct.
2 .... .
30 ... .
28 ... .
25 ... .
22 ... .
20 .. ..
17 ... .
15 ... .
12 .. ..
9 ... ..
5.71
5.87
5.73
5.98
5.74
5.90
5.73
5.90
5.63
5.28
5.31
5.49
5.67
5.69
6.06
6.48
7.22
7.34
7.03
6.57
6.41
6.28
5.88
5.53
6.16
98.648
97.300
52 week:
1994-June
June
July
Aug.
Sep\.
98.549
97.017
98.541
96.967
98.541
97.007
98.544
97.012
98.572
97.068
98.544
97.017
98.569
97.048
98.595
97.123
98.569
98.572
97.164
98.615
97.295
98.592
97.189
98.620
97.260
98.648
97.300
93.m
97.260
29 .. ..
5.74
5.90
5.65
5.61
5.48
5.35
5.57
5.56
5.46
5.42
5.35
93.337
22 .. ..
Price per
hurdred
(15)
5.82
5.87
5.65
5.59
5.74
5.82
5.63
5.67
5.51
5.58
5.01
5.04
5.20
5.36
5.38
5.72
6.09
6.75
6.86
6.59
15 ... .
Discounl rate
(percent)
98.552
97.092
5.99
8 .... .
Price per
hundred
5.73
5.72
5.72
5.64
5.61
5.48
5.35
5.57
5.56
5.46
5.42
5.35
5.34
June I .....
Low
Discount rate
(percent)
-.l1_1l___.__. _!E) ___ J!~L__.__ (!~L_._
Regular weekly:
1995 - Mar. 2 .... .
On compelilive bids accepled
High
5.34
5.72
6.09
6.76
6.86
6.59
6.16
6.03
5.91
5.56
5.23
94.742
94.570
5.79
55.73
5.87
5.69
'5.83
5.54
5.68
'5.64
5.72
5.71
5.83
"5.62
5.63
"5.69
5.67
5.70
5.70
5.62
5.58
5.42
5.32
5.55
5.55
5.44
5.40
5.31
5.32
4.99
ID5.03
" 5.18
5.35
"5.37
5.70
6.08
"6.72
"6.84
15
6.57
6.14
6.00
5.88
5.51
5.20
98.5n
97.073
98.552
97.032
98.562
97.053
98.600
97.128
98.574
97.108
98.557
98.053
98.579
97.154
98.562
97.134
98.559
97.103
98.579
97.179
98.630
97.310
98.597
97.194
98.625
97.270
98.658
97.310
94.955
94.914
94.762
94.591
94.570
94.237
93.852
93.205
93.084
93.357
93.792
93.933
94.055
94.429
94.742
cash m_gement:
1995 - Apr
June 2 .... .
99.718
99.387
5.95
99.788
5.83
5.79
99.719
99.389
99.789
--_.----------------------------• The 13-week Dills replBsenl adddlonallssue of bills wllh an Oll9,nal malullty 0126 weeks 01 52
weekS
> For bills ISSued on 01 allel May 2 , 974 .• ncludes amo~nlS exchanged an noncompelltlv& baSIS
by Govelnmen: accounts and Fedelal Re5e!Ve Banks
, FOI 13·week. 26·week. and 52'week bills lendels 51 000.000 or less tlom anyone bld08f ale
accepted .n full al avelage pnes or accepled compellllVe bIds. lor otner ISSueS. Ihecorresf)Ondmg
amounl IS stlpulaled .n .ac~ 011.""9 announcemenl
• EQulvalenl coupon-Issue y.eld
• Excepl $10 000 at 98 S84 percenl
• Excepl 510 930 000 al 97 118 percenl
> ExC8P1 $10.000 al98 584 percent.
• Excep1 $10.000 al9B 592 percent
• Excepl $40.000 aI98.584 percent.
:~ Except $tO.OOO al 95 066 percent and $1.425.000 at 94 934 percent.
.• Except 546.000 al 94 904 pen::ent
'J Except $12.000 at 94 641 percent and $100.000 at 94.&11 percent.
Except $10.000 al93 286 percenl
., except $20.000 at 93175 percenl
'! Except 52.000.000 at 93 822 percent.
PUBLIC DEBT OPERATIONS
43
TABLE PDO-3.--Public Offerings of Marketable Securities
Other than Regular Weekly Treasury Bills
lin millions of dollars, Source: Bureau 01 the Public Debt]
Auction date
Issue date
(1)
06102193
06J22J93
06123193
06104193
06130193
06124193
07/22193
07127193
07128193
08110193
08111/93
08112193
08/19193
08124193
08125193
09116193
09121/93
09122193
10/14/93
10/26/93
10/27/93
11/04/93
06130193
07/01/93
07/29193
08/02193
08/02193
08/16/93
' OB/16/93
' 08/16/93
08/26/93
08/31/93
08/31/93
09123/93
09/30/93
09/30/93
10/21/93
11/01/93
11/01/93
Hll0/93
11/09/93
11/09193
11/15/93
11/10/93
11/16/93
11/22193
11/23193
12102193
12109/93
12121193
12122193
01/06194
01/25/94
01/26/94
' 11/15/93
11/18/93
11/30/93
11/30/93
12106/93
02103194
02108194
02109/94
02110/94
02123194
02/24/94
03103/94
03122194
03123194
03/29194
03131/94
11/15/93
12116/93
12131/93
12131/93
01/13194
01/31194
01/31/94
02110/94
02115/94
02115194
02115194
02128194
02128194
03110/94
03/31/94
03/31/94
03/31/94
04/07/94
04/26/94
04/28/94
04/28/94
05/10/94
05102194
05102194
05/11/94
'05116194
05/24/94
05131/94
05/31/94
06/02194
06103194
OS/25/94
OS/26/94
06/01/94
06/21/94
06/22194
06/23194
07113194
07121194
07126/94
See footnotes at end of table,
05105/94
05116/94
06/30/94
06130/94
06130/94
07115/94
07128/94
08/01/94
Description of securities '
(2)
3,Q4% bill--06117193-reopening
4·118% nole-·06130195· X
5·1/8% note··06130198·P
3.40% bill-·06/30194
3.44% bill··07/28194
4·1/4% nole··07131195· Y
5·1/4% note··07131198·Q
4·318% note-·08115196·Z
5·314% nole··08/15103·B
6-114% bond··OB/I5/23
3.30% bill··08125/94
3·7/8% note··08131 195-Z
4·314% note-·08131198·R
3.27% bill-·09IW94
3-718% note··09/30/95-AB
4·314% note··09130198·S
3.25% bill··l 0/20/94
3·7/8% note··l0/31/95-AC
4·314% note··l0/31198·T
3,04% bill··12116/93-reopening
3.10% bill··01/20194-reopening
4·316% note-ll/15/96·AB
5-314% note-·08l15103-B·reopening
3.43% bill·-ll/17/94
4·1/4% note-·l1/30/95-AD
5-118% nole·-ll/30198·U
3,00% bill··12116193-reopening
3.47% bill··12115/94
4-1/4% note--12131/95-AE
5-118% nole··12131/98· V
3.52% biIJ·.otJ12195
4% nole··01/31/96·AC
5% note·-01/31/99·J
3.59% bill··02l09/95
4-314% note·-02l15/97·V
5-7/8% note-·02l15/04·A
6·1/4% bond··08I15J23-reopening
4·5/8% nole-02/29/96·AD
5-1/2% note··02l2B/99·K
4.03% bill··03/09/95
5·1/8% nole··03131/96-AE
5-7/8% note·-03/31/99·L
3.47% bill-·04/21/94·reopening
4,30% bill··04/06/95
5·1/2% note··04/30/96-AF
6-1/2% note··04/30/99-M
4.77"10 bill··05/04/95
6-1/2% oole-·05l1S/97-W
7-1/4% note··OS/15/04-B
5·716% note·-05131196-AG
6-314% note··OS/31/99-N
5.01 % bill··06/01/9S
4.09% blll·-06/16/94·reopening
6% note·-06/30/96-AH
6-314% nole··06/30/99·P
5.04% bill-·06/29/95
5.20% bill·-09/22194
5.20% bill--07/27/95
6-1/8% nole-·07/31/96·AJ
Period to final maturity
(years, months, days) 2
(3)
13d
2y
5y
364d
364d
~
5y
3y
lOy
30y
364d
2y
5y
364d
2y
Sy
364d
2y
5y
36d
66d
3y
9y
9m
364d
2y
5y
10d
364d
2y
5y
364d
2y
5y
364d
3y
lay
29y
2y
5y
6m
364d
2y
5y
210
364d
2y
5y
364d
3y
lOy
2y
5y
364d
13d
'q
5y
364d
69d
364d
2y
Amount
tendered
(4)
Amount
issued','
(5)
34,208
46,443
31,421
41,925
33,841
37,174
31,193
49,588
36,612
23,993
52,106
57,638
30,661
45,452
44,786
32,342
60,153
41,718
32,335
55,740
56,557
38,551
30,546
53,936
48,175
30,895
35,006
51,032
49,560
36,930
63,054
49,991
29,549
43,706
48,291
31,937
31,102
44,833
32,330
43,994
47,401
29,915
47,750
44,256
47,711
24,745
49,343
52,896
25,019
41,031
32,927
59,706
55,795
47,720
32,369
50,142
41,740
54,251
48,410
7,010
18,164
12,596
15.340
15,267
17,183
11,689
20,670
'12.932
' 11,530
15,298
17,576
13,018
15,341
17,904
12,576
15,875
18,271
13,023
10,045
14,102
22.065
'15,078
16,154
18,604
12,116
3,761
16,238
19,303
12,444
16,0:17
18,414
12,900
16,521
19,832
' 12,955
'11,379
18,949
11,913
16.531
19,579
12,760
14,006
16,623
18,804
12,291
16,594
21,749
'14,440
18,927
12,339
16,912
14,007
19,858
13,100
16,756
6,035
16,963
19,407
Range 01
accepted bids
for notes
and bonds
(6)
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
29
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
PUBLIC DEBT OPERATIONS
44
TABLE PDO-3.--Public Offerings of Marketable Securities
Other than Regular Weekly Treasury Bills, con.
lin mlillCll1S 01 dollars. Soun:e: BuIllllU 0I1h1 PublIC: DIIbI]
Auclion dale
------07/27194
D8ID9I94
08110194
08111/94
08111/94
08118194
DBI23I94
DBl24194
D8J31194
09ID9I94
09115/94
IBI27I94
09J2aI94
10112/94
1011:w4
10125194
10126194
11108194
11109194
11110194
11110194
11121194
11122194
11130194
12108194
12121194
12122194
12129194
01105195
01124195
01125195
02ID2I95
02J071S5
02ID8I95
02ID9I95
02I09I9S
02122195
02123/95
03101195
03l02I95
03128195
D3I29I95
03l3OI95
03l30I95
04125195
04126195
04127/95
05109195
05110195
05111195
05123195
05124195
05125195
05131195
06122195
06127195
06128195
Issue dale
Description 01 securities '
(1)
(2)
08101194
0811&94
08115194
'08115194
08115194
0&'2&94
08131194
08131194
09lO6I94
D9I09I94
09122194
09l3OI94
09l3OI94
10117194
10l20I94
10131/94
10131194
11115194
11115194
11115194
11117194
11130194
11130194
12102194
12115194
01103195
01I00I95
011D3195
OIlUM
01131195
01131195
02109195
02115/95
02115195
02115/95
02115/95
02128195
02128195
03107195
00/09195
03131195
03131195
04lO3I95
04lO6I95
05/01.95
05101195
05lO4I95
05115/95
05115195
05115195
05/31195
05131195
06101/95
06I02J95
06129.195
D6I3DJ95
06l3OI95
----_. -------_.----
Sea fDOlnoles al and 01 tabla
6-718% note--Q7131199-Q
6-112% 00te--08I15197·X
7·1/4% note--D8JI5J04-G
7,'12% bond··' 1115124
4.37% bill·-o9I22/94
5.36% bill-08J24195
6-114% note-08l31f91j·AK
6-718% 001e--08I31/99-R
4.58% bill--09l22l94
4.65% bill·.()9JI6J94
5.38% bilH19121.95
6·112% nole--09I3OI9Ii·AL
7-118% nole--D9I3DI99-S
4.98% bil...-2122J94·raopening
5.72% biI ...·10119195
6·718% note-10131/96-U·reopening
7·112% noIe-·1D131/99-T
7-3/8% note.. 11115197·Y
7·7(8% nola--11115104-D
5.11% biD..12f22194.reopening
6.09% bil-11116195
7·114% no!e-·11130196·AN
7·314% nota--ll/llf99·U
5.45% bill-l2122194-reopening
6.75% bil--12114195
7·112% oole-I2131J96..AP
7·314% note-12131$V
5.59% bill·-QII19f95.reopening
bill-G1,1111116
7· 112% note--Q1131197·Z
7·314% OOle-Ol131fOD-G
6.59% biU-1l2/D8I96
7-114% no!e-·02I15!98·W
7·1/2% note-02l15JOS.A
7·5/8% bond-02I15125
5.76% bill--04I2OI95-reopening
6·7/8% noIe-02I2BJ97-AB
7·1/B"1o nola--D21291DD-H
5.81 % bill-03I16195-reopening
6.16% bi1H)3107196
6-518% not&--03I31197·AC
6-7/8% nota--03I3l1DD-J
5.97% bill 04l20195·reopening
6.a2% bil..04J04I96
6-1/2% note-..04J3OI97·AD
6-314% note-04l3OlDD-K
5.90% biI/.-o5I02/96
6·118% note-D5l15f98..X
6·112% nole-D5J151lJ5.B
5.81'\ bHI·-Q6/22I95·reopening
6-118% noIe--05I31.197·AE
6-114% note--D5I3I1DD-L
5.54% biH-05I3OI96
5.85'\ biU-06J15J95.reopening
5.22% bUI-D6127196
5·518% note-..06J30J97-AF
5· 718% nofe.·06I:1l1OO-M
Period to fira maturily
(years, months, days) ,
(3)
5y
3y
lOy
30y
~
38d
364d
2y
5y
16d
7d
364d
2y
5r
66d
49,580
51,239
43,267
34,155
53,312
30,055
49.807
55.604
48,945
33,840
35,751
42.002
51.681
25,948
42,975
49,929
52.018
34,143
51,445
50.836
5y
3y
lOy
37d
364d
2y
5y
2Dd
364d
2y
un.
16d
364d
~
SV
364d
ly
lOy
29,807
»i
64d
2'(
SV
9d
364d
2y
5V
17d
364d
oo
2'(
5V
364d
ly
lOy
38d
2'(
5y
364d
13d
364d
2y
Sv
(4)
29,554
47,220
30,416
22,053
29.573
43.661
58,453
36.882
27,540
25,060
53,447
46,392
38,031
364d
2y
SV
Amount
tendered
30,681
50,051
43,401
28,709
38,684
48,316
44,394
26,061
100.412
43,046
42,158
35,573
64,539
38,313
23,167
66.505
48,653
30,382
42,863
57,101
42,836
43,818
33,504
Arnourl
Issued ,.
IS)
12.403
20.241
'13.346
"11,469
7.005
16.837
19.283
12.396
7.005
4.003
16.804
19.626
12.820
15,040
17.275
18.952
12,115
20,831
'14,369
12,009
17.479
18.938
11,932
8,105
17.076
19.602
12,520
14,009
17,349
18.998
12.226
17,452
21.078
'13,834
'11,725
9,118
18,805
12.486
8.033
17,351
19,352
13.186
25,109
17,574
18,706
12,433
17,953
21,223
"14,739
17,136
18,936
12,752
18,579
17,126
19,321
19,256
12.463
Rangaol
accaptad bids
for noIas
and bonds
(6)
44
4$
48
47
48
48
50
51
52
53
54
56
56
S1
56
51
80
81
112
83
1M
115
III
IT
II
•
70
71
72
73
7.
75
78
PUBLIC DEBT OPERATIONS
45
TABLE PDO-3.--Public Offerings of Marketable Securities
Other than Regular Weekly Treasury Bills, Con
1 CUrfllrltiy, all issues are sold at auction. For bill issues, the rate shown is the average bank
discount rate. For note and bond issues, the rate shown is the interest rate. For details of bill
oflerings, see table PDO-2.
2 From date of adelaional issue in case of a reopening.
31n reopenirgs the amount issued is in addrtion to the amount of original offerings.
'Includes securities issued to U.S. Government accounts and Federal Reserve banks; and to
foreign and international monetary authorities, whether in exchange for maturing securities or
for new cash.
, Eligible for STRIPS.
'Interest began to accrue baiore the issue date (settlement date) of this loan.
, Accepted yields ranged up to 4.16% (price 99.933) in this single-price auction.
• Accepted yields ranged up to 5.23% (price 99.543) in this single-price auction.
• Accepted yields ranged up to 4.26% (price 99.981) in this single-price auction.
,. Accepled yields ranged up to 5.25% (price 100.000) in this single-price auction.
" Yields accepted ranged from 4.48% (price 99.709) up to 4.49% (price 99.681) with the
average at 4.49% (price 99.681).
12 Yields accepted ranged from 5.77% (price 99.849) up to 5.78% (price 99.774) with the
average at 5.78% (price 99.774).
" Yields accepled ranged from 6.32% (price 99.063) u~ to 6.35% (~rice 98.666) with the
average at 6.33% (price 98.931).
" Accepted yields ranged up to 3.94% (price 99.876) in this sin91e-price auction.
15 Accepted yields ranged up to 4.87% (Price 99.473) in this sin9le-price auction.
10 Accepted yields ranged up to 3.94% (price 99.876) in this single-price auction.
" Accepted yields ranged up to 4.83% (price 99.648) in Ihis single-price auction.
18 Accepted yields ranged up to 3.94% (price 99.876) in this singl.... price auction.
19 Accepted yields ranged up to 4.81% (price 99.736) in this single-price auction.
20 Yields accepted ranged from 4.42% (price 99.875) up to 4.46% (price 99.764) with the
average at 4_44% (price 99.819\.
21 Yields accepted ranged from 5.68% (price 100.499) up to 5.69% (price 100.424) with the
average at 5.69% (price 100.424).
22 Accepted yields ranged up to 4.27% (price 99.962) in this single-price auction.
Zl Accepted yields ranged up to 5.20% (price 99.673) in this single-price auction.
24 Accepted yields ranged up to 4.28% (price 99.943) in this single-price auction.
25 A<:eepted yields ranged up to 5.19% (price 99.717) in this singl.... price auction.
,. Accepted yields ranged up to 4.11 % (price 99.791) in this single-price auction.
27 Accepted yields ranged up 10 5.10% (price 99.564) in this single-price auction.
is Yields accepted ranged from 4.82% (price 99.807) up to 4.83% (price 99.779) with the
average at 4.83% (price 99.779).
" Yields accepted ranged from 5.91% (price 99.739) up 10 5.93% (price 99.590) with the
average at 5.92% (price 99.664).
30 Y",lds accepted ranged from 6.42% (price 97.763) up to 6.43% (price 97.633) with the
average at 6.43% (price 97.633).
31 Accepted yields ranged up to 4.66% (price 99.934) in this single-price auction.
32 Accepted yields ranged up to 5.61% (price 99.526) in this single-price auction.
... Accepted yields ranged up to 5.15% (price 99.953) in this single-price auction.
" Accepted yields ranged up 10 5.91% (price 99.850) in this single-price auction.
35 Accepted yields ranged up to 5.59% (price 99.832) in this single-price auction.
" Accepted yields ranged up to 6.6O"k (price 99.580) in this single-price auction.
31 Yields accepted ranged from 6.54% (price 99.893) up to 6.55% (price 99.e66) with the
average at 6.54% (price 99.893).
" Yields accepted ranged from 7.33% (price 99.439) up to 7.40% (price 99.953) with the
average al7 .36% (price 99.230).
39 Accepted yields ranged up to 5.94% (price 99.879) in this single-price auction.
'" Accepted yields ranged up to 6.78% (price 99.875) in this single-price auction.
" Accepted yields ranged up to 6.04% (price 99.926) in this single-price auction.
.2 Accepted yields ranged up to 6.77% (price 99.916) in this Single-price auction.
<3 Accepted yields ranged up to 6.17% (price 99.917) in this single-price auction.
.. Accepted yields ranged up to 6.98% (price 99.563) in this single-price auction.
.5 Yields accepted ranged Irom 6.59% (price 99.759) up to 6.62% (price 99.678) wrth the
average at 6.61% (price 99.705).
.. Yields accepted ranged Irom 7.32"10 (price 99.510) up to 7.33% (price 99.440) wilh the
average at 7.33% (price 99.440).
"Yields accepted ranged Irom 7.55% (price 99.373) up to 7.59% (price 98.904) with the
average at 7.56% (price 99.256).
.. Accepted yields ranged up to 6.27% (price 99.963) in this Single-price auction.
Accepted yields ranged up to 6.91 % (price 99.854) in this Single-price auction.
5ll Accepted yields ranged up to 6.55% (price 99.908) in this single-price auction.
51 Accepted yields ranged up to 7.18% (price 99.772) in this single-price auction.
s> Accepted yields ranged up to 6.68% (price 99.991) in this single-price auction.
OJ Accepted yields ranged up to 7.55% (price 99.795) in this single-price auction.
S< Yields accepted ranged from 7.40% (price 99.934) up to 7.42% (price 99.681) with the
average at 7.41% (price 99.907).
55 Yields accepted ranged from 7.95% (price 99.489) up to 7.97% (price 99.354) with the
average at 7.96% (price 99.421).
50 Accepted yields ranged up to 7.30% (price 99.908) in this Single-price auction.
57 Accepted yields ranged up to 7.81% (price 99.756) in this single-price auction.
56 Accepted yields ranged up to 7.57% (price 99.873) in Ihis single-price auction.
5' Accepted yields ranged up to 7.85% (price 99.593) in this single-price auction.
so Accepted yields ranged up to 7.57% (price 99.872\ in this single-price auction.
., Accepted yields ranged up to 7.79% (price 99.837) in this single-price auction.
., Yields accepted ranged from 730% (price 99.867) up to 7.34% (price 99.762) with the
average at 7.34% (price 99.762).
'" Yields accepled ranged from 7.54% (price 99.723) up 10 7.55% (price 99.653) w~h the
average at 7.54% (Price 99.723) .
.. Yields accepted ranged from 7.65% (price 99.708) up to 7.66% (price 99.591) with the
average at 7.65% (pllce 99.708).
os Accepted yields ranged up to 6.999% (price 99.772) in this single-price auction.
so Accepted yields ranged up to 7.125% (price 100.000) in this single-price auction.
., Accepted yields ranged up 10 6.717% (price 99.830) in this singl ....price auction.
56 Accepted yields ranged up to 6.994% (price 99.SCl5) in this single-price auction.
69 Accepted yields ranged up to 6.524% (price 99.956) in this single-price auction.
" Accepted yields ranged up to 6.815% (price 99.729) in this single-price auction.
71 Yields accepted ranged from 6.140% (price 99.959) up to 6.200% (price 99.798) with the
average at 6.165% (price 99.892).
72 Yields accepted ranged from 6.576% (price 99.449) up to 6.680% (price 98.702) with the
average at 6.608% (price 99.219).
73 Accepted yields ranged up to 6.170% (price 99.917) in this single-price auction .
74 Accepted yieldo ranged up to 6.250% (price 100.000) in this single-price auction.
15 Accepted yields ranged up to 5.690% (price 99.879) in this single-price auction.
" Accepted yields ranged up to 5.905% (price 99.872\ in this singl.... price auction.
4'
Nole.--AU notes and bonds, except for forei~n-targeted issues, were sold at auction through
competitive and noncompetitive bidding. Foreign-targeted issues were sold at auction through
compelitive bidding only.
PUBUC DEBT OPERAnONS
46
TABLE POO-4A.-ADotments by Investor Classes
for Public Marketable Securities Otber than Bills
____ .__ .__ . ...!!.~!'cIDIIIIs ~~9!'.!»ot.:~"'=keI:..:.:FI.::::III=..:=LI_ _ _ __
AIaImenIIby iIwealor daaI8I
SIaI& and IacaI
PIIvaIe
pemn!II1B'
IIaIfo
panIIon I'enIIDn
Comance UuaJaI
and ,. and ...
Nanbri
III8ft:iaI lid- cam- sauIngB Capo- Ihmert IkeIIm Ollar . . . and AI
banIcs' \'icklIIs I panes banIIs rations· finis
funds
funds brokers
ada 5
--=-(3):....-.--:....(4~)_(;....;5)_.....;.(6..;..'_.....;.(7)-'----'-(B.;..)_ _(;..;.9)_---'(~0)
(11)
(12)
Total
IIIQd
Issue dale
-C»I3Im
3-7_~
17.804
961
2.1l9O
574
53
4
1,574
2
3
8
11.317
1.311
2
7-.
807
4-3/411'.1'ICII8-OIII3MI
12,578
900
784
:fit
298
2
2.1B2
•
•
11101193
3-7/8 note-lllf31J95.AC
18,251
816
1,607
664
208
12
1,653
20
8
9
11,481
1.758
11101183
4-$'4'- nlla-1W31J118.T
13.013
750
997
379
S)
1
IIlI
2
1
..
8.5fI2
1,520
11/15113
~ note-11/15IIINB
22,065
4,195
251
•
81
2
m
5
1
5
15,288
9B8
11/15193
5-$'4% ~5J03.S
15.078
2,300
216
316
3
767
5
3
10,764
704
111»'93
4-11ft noIe-11131W5-AD
18.804
•
315
679
6
10
1,881
21
eo
13,750
1,115
11130/93
5-118 1IDle-11130198-U
12,115
550
352
412
1.ot4
14
9!16
2
2
&.m2
750
12131193
4-1/ft note-l2131185-AE
19,303
1.550
1.111
820
152
34
8BO
35
6
13,431
1.284
12131193
5-118% ....,m1. .V
12,444
I.
404
375
90
911
5
D1Ia1IM
... ..........u31M-AC
18,414
38
723
545
•
'
.
1,071
52
773
•
. 1_ '.
5
9,082
212
M
8,685
841
136
4
14,913
1.~1
•
01/31194
S'- noIt-01131/99oJ
12.901
300
1,334
514
120
02115194
+$'4% note-02fl5197-V
19.832
1,492
428
643
34
0211_
5-7_ .-.02115/M-A
6-1'." 1xIIId-4'1m
12,955
550
239
!28
911
2
10&
10.161
.,
~
11,379
325
81
841
1.986
28
5
8,118
17
02I2VJ94
.wif8'K, ncJIe-02I2Ml8.A
18,948
413
998
854
so
1,822
84
5
11,941
2,812
02I2VJ94
5-1fA noI8-02I29I!II-K
11,914
3IiO
357
5S3
42
2
2.044
5
7
7_
729
mI31l94
5-118% Ide-03I31I1J8.AE
19,579
1,855
898
B80
23
11
1,484
33
6
13,074
1,305
0Si31194
5-7/804 ~1191H.
12,780
1,750
269
588
44
1,466
62
8,440
160
04I30f94
5-1/2% naIe-04f3In6-AF
18,808
800
668
1,472
4
3
1,751
54
4
1.271
1.325
04I3IW4
6-11A~
12,292
760
152
615
25
3
1,095
5
2
&.017
818
0.!if1&194
6-1fA noIe-03fl5197oW
21,750
3.400
207',382
2
10
6.473
22
5
4
9,G47
1,188
0.!if16194
7-114111. rdlHMM)4.8
14,440
1,814
432
587
2
..
53B
5
3
3
lo.aB1
671
05131194
5-7/8% note-O&'31196-AG
18,92i
450
S28
1.118
115
6
1.781
11
3
10
12.932
1,873
05131194
6-314' I'IDIe-05I31I99-N
12,338
446
255
710
1.890
6
7
8,039
983
0fJ311194
eo.. noIe-O&'3G'96-AH
19.859
1,650
835
1.204
8
1.759
13
72
111
12.217
1,989
06f30J94
&M'-1IOIe-4l6J3OJ99
13,101
t.542
610
752
36
1
1.004
142
•
1
8.258
757
01lI01194
6-118\, noIe-011311116-AJ
19,416
827
517
1.434
8
7
856
8
5
11
14,343
1.400
0IW1194
6-7tro noI8-07131J99.Q
12,411
800
2BO
912
50
1
1,452
9
08115194
6-11211. naIt-O&'15197-X
2O.2S0
2,013
411
1,487
20
08.115194
7-114°. ncIe-08I15IIJ4.C
13.348
750
71
475
08115194
7·1.'%'. bond-11/1M4
11.470
450
89
297
02115194
5
7
2
100
1.321
10
!167
3
•
•
92&
30
20
2
796
8,110
15
13,344
1,627
11),448
830
6
9.564
83
47
PUBLIC DEBT OPERATIONS
TABLE PD0-4A.--Allotments by Investor Classes
for Public Marketable Securities Other than Bills, COD.
[In millions of dollars. Source: Office of Market Finance)
Allotments by investor classes
Issues
Total
amount
Issued
State and local
Privale
govemments •
Insurpension Pension
Nonbank
Federal Com·
anee Mutual
and re- and reo
Reserve mercial
Indi- corn- savings Corpo- liremen! lirement Other dealers and All
other!
funds brokers
banks banks' viduals 2 panies banks rations 3 funds
funds
(10)
(11)
(12)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Issue date
Description Ii securities
(1)
08131194
6-1/4% note--08I31196·AI(
19,292
450
648
1,575
91
4
2,743
12
370
5
11,306
2,089
08131194
6-718% oote--08I31199·R
12,297
426
1,409
723
11
11
913
7
5
60
7,578
1,155
09l3OI94
6-112% nole-.()9I3O/96-AL
19,639
1,125
694
1,532
261
5
1,507
22
7
13,018
1,467
09130194
12,836
1,079
433
753
46
26
1,475
5
90
8,028
902
10131194
7-118% oole--09I3OI99-5
6-7/8% noIe--10/31199-U
reopening
18,983
450
375
1,156
62
26
1,573
8
325
13,388
1,619
10131194
7-112% nOl8o-10131199-T
12,152
412
240
752
16
1,174
3
7
8,285
1,261
11/15194
7-318% not8o-11115197-Y
20,861
2,800
231
897
21
5
1,246
11
52
14,593
1,004
11/15194
7-7/8% noIe--11/15104-0
14,374
1,603
197
565
7
5
518
27
2
12
10,778
660
11130194
7-1/4% nole-11115196-AN
18,940
265
1,258
1,172
22
10
3,434
12
13
48
10,972
1,734
11130194
7-3/4% noIe--11/15199-U
11,934
265
345
723
28
908
10
32
8,501
1,121
01103195
7-112"10 note-12131196-AP
19,608
1,250
9&7
2,286
6
14
2,197
12
7
11,463
1,405
01/03195
7-314% note-I2/31199-V
12,523
1,180
749
889
16
2
569
4
4
8,700
408
01131195
7·112% note--Ol/31197-Z
19,002
375
518
2,092
41
24
2,834
9
6
11,644
1,458
01131195
7·3/4% nole-·Ol/31/()().G
12,229
362
227
1,634
3
6
910
4
2
8,053
1,028
02115195
7-1/4% oote··02115198-W
21,080
3,031
343
1,663
25
12
467
13
34
14,574
916
02115195
7·1/20/0 note-·02I15105-A
13,835
1,150
360
705
7
3
461
16
18
10,476
640
02115195
7·518% bond--02I15125
11,725
700
126
454
40
25
1,341
12
5
8,962
61
02128195
6·718% nole-02I2B197·AB
18,816
575
887
1,634
52
25
1,266
10
6
12,909
1,454
02128195
7·118% note--D212B1()()'H
12,496
570
296
1,522
114
B
1,021
12
63
8,306
583
03131195
6-518% note··03131197-AC
19,354
1,050
418
1,138
93
7
1,572
6
9
14,072
987
03131195
6-7/8% nole--03I31/1lO-J
13,188
1,046
299
525
54
827
4
28
9,120
1,285
05101195
6-1/2% nole--()4/3OI97·AD
18,708
350
928
838
3
1,888
4
6
13,467
1,215
05101195
6-314% note··04I3OIOO·K
12,433
352
367
358
3
1,674
3
3
9,007
666
05/15195
6-118% nole··05/15195·X
21,226
3,444
230
704
84
994
6
3
15,330
427
05115195
6·112% nole-·05I15105·8
14,740
2,000
514
393
7
5
10,813
318
05131195
6-1/8% note-05l31197·AE
18,937
600
489
700
43
4
2,199
3
3
13,627
1,267
05131195
6-1/4% note--05/311OO·L
12,752
627
439
277
34
20
1,131
22
20
9,196
985
06l3OI95
5-518% nole-Q6f3Ol97·AF
19,260
692
707
864
3
1,332
3
6
13,779
1,871
06l3OI95
5-7/8% nole-06I30100·M
12,464
700
596
202
575
2
9,774
615
• Lass !han $5CO,OOO.
1 Includes trust companies. bank dealers, and stock ssvings banks.
2 Includes partnerships and personallrust accoul'lS.
3 ElICIusive of banks and insurence companies.
4 Consists of trust, sinking, and investment funds 01 Slala and local governments and their
agencies.
10
4
688
3
2
2
5 Includes savings and loan asSociations, nonprofit institutions, and foreign and internatiooal
investments. Also included are certain Government deposn accounts and Governmenl-sponsore<! agencies.
Note.·-For detail of offerings see table PD0-3.
48
PUBLIC DEBT OPERATIONS
TABLE PDO-4B.-Allotments by Investor Classes for Public Marketable Securities
for Bills Other than Regular Weekly Series
IDoilar amounts In millIons. Source: Bureau 01 Public.O:.:ebt:=...'_ _ _ _ _ _ _ _ _ _ _ _ _ _ _~
Allotments bv investor dasses
Total amount
issued
52-week series
Commercial
banks
(5)
Corporations •
(6)
Dealers and
brokers
(7)
(1)
Average rate
(percent)
(2)
06103/93
06102194
3.40
14.771
3,400
1.274
118
9,091
888
07/01/93
06130/94
3.40
15,340
3,700
319
472
9,857
992
07/29193
07/28194
3.44
15,267
3,700
457
42
9,991
1,077
08126193
08125194
3.30
15.299
3,B50
450
293
9,365
1,341
09/23/93
09122.194
3.27
15.341
3,400
428
201
10,315
997
10121193
10l20I94
3.25
15,875
3,550
378
441
10,974
532
11/18193
11/17194
3.43
16,155
3,650
288
341
11,236
640
12116/93
12115194
3.47
16,238
3,700
1,643
47
9,918
930
01/13/94
01/12195
3.52
16,037
3,950
184
389
10,461
1,1153
02110194
02l09I95
3.59
16,521
3,950
560
653
10,045
1,313
03/1Q194
03109195
4.03
16,531
3,800
357
1.543
9.439
1,392
04107/94
04/06195
4.30
16,623
3,850
938
98
10,816
921
05105194
05104195
4.77
16,593
4,100
357
1,233
9.729
1,174
06/02194
06101195
5.01
16.913
4,050
862
369
10,137
1,495
06l3OI94
06129(95
5.04
16.756
4,350
449
253
10,301
1,403
07/28194
07127195
5.20
16.963
4,250
378
106
10,784
1,445
08125194
0I!I24195
5.36
16.837
4,200
BIll
47
10,571
1.211
09/22194
09/21195
5.38
16,aos
4,300
326
89
7.186
4,904
lQ120194
10119195
5.72
17.276
4,100
372
98
11,645
1,061
11/17/94
11/16195
6.09
17,480
4,150
323
3,504
8,143
1,360
12115/94
12114195
6.75
17,078
4,200
947
89
10,213
1,629
Dl/12195
01111196
6.86
17,351
4,250
288
215
lD,958
1,640
02109195
02108196
6.59
17.455
4,400
943
700
9,304
2,108
03109195
03107196
6.16
17,352
4,250
311
379
10.676
1,736
04l06I95
04104196
6.02
17.574
4,450
814
262
10,384
1,664
05104195
05102196
5.90
17,953
4.650
376
409
10.749
1,769
4.450
675
539
11,130
1,786
3,200
672
129
11,820
3,sao
Dateo!
financing
Dateo!
maturity
U.S.Gov'!.
accounts
and Federal
Reserve banks I
(4)
(3)
06101195
05130196
5.54
lB,580
06J29195
06127196
5.22
19,321
1 Includes trust funds and accounts that compnse Govemment accaull1S unCler tile un~iad
budge! concept
All other'
(8)
3Included with "All other' investors are cenain Govemment depoSit account& and Governmentsponsored agencoes. Icnnerly included with Govemmant accounlS.
2 Excluswe 01 banks and Insurance companres
Not. --For dataJl 01 oHerlngs. see lable PD0-3.
49
INTRODUCTION: Savings Bonds and Notes
Series EE bonds. on sale since January 1. 1980. are the
only savings bonds currently sold. Series HH bonds are issued
in exchange for Series E and EE savings bonds and savings
notes. Series A-Dwere sold from March 1. ]935. through April
30. 1941. Series E was on sale from May 1. 1941. through
December 31, 1979 (through June 1980 to payroll savers
only). Series F and G were sold from May 1, 1941, through
April 30. 1952. Series H was sold from June I, 1952, through
December 31, ] 979. Series HH bonds were sold for cash from
January 1. 1980, through October 3], 1982. Series J and K
were sold from May 1. 1952, through April 30, 1957. U.S.
savings notes were on sale May I, 1967, through June 30,
1970. The notes were eligible for purchase by individuals with
the simultaneous purchase of series E savings bonds.
The principal terms and conditions for purchase and
redemption and information on investment yields of savings
notes appear in the "Treasury Bulletin"s of March 1967 and
June 1968; and the Annual Report of the Secretary of the
Treasury for fiscal 1974.
TABLE SBN-l.--Sales and Redemptions by Series, Cumulative through June 30,1995
[In millions 01 dollars. Source: "Monthly Statement ot the Public Debt of the United States"; Market Analysis Section, U.S. Savings Bonds Divisionl
Amount outstanding
Series
Savin9s bonds:
Senes A-D ,...........
Series E, EE, H, and HH. , .....
Series FandG_ ..... _.... __ .
Series J and K...............
Accrued
Sales plus
accrued
Sales'
discount
discount
Redemptions
(1)
(2)
(3)
(4)
5,003
500,582
29,521
3,754
1,487
540,347
5,002
319,860
29,517
3,753
1,134
359,266
3,949
332,416
28,396
3,556
862
369,179
Savings notes ...... _....... _• ,
Total •.. ,. _.• , ...••.•....•• '
1,054
168,166
1,125
198
625
171,168
• Sales and redemptIon ligures include exchange of minor amounts of (1) matured series E
bonds for series G and K bonds from May 195t through April 1957; (2) series F and J bands
lor 38ries H bonds beginning Janual)' 1950; and (3) U.S. saw19s notes lor series H bonds
beginning Januany 1972; however, they exclude exchanges of series E bonds lor series H and
Matured
I
Interest-
non-interest-
bearing debt
bearing debt
(5)
(6)
180,136
1
2,069
3
349
180,486
2,074
HH bonds.
2 Delails by series on a cumUlative basis and by period of series A-O combined can b. 10und
in the Februal)' 1952 and previous issues 01 the "Treasury Bulletin."
TABLE SBN-2.--Sales and Redemptions by Period,
All Series of Savings Bonds and Notes Combined
[in millions of dollars. S()urce: "Monthly Statement of the Public Debt 01 the Untled States'; Market Analysis Section, U.S. Savings B()nds Division]
Amount outstanding
Period
Sales plus
Redemptions
Accrued
accrued
non-interest-
discount
discount
Total
Accrued
discount 1
Interest-
Sales
Sales
price I
bearing debt
bearing debl
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(B)
313,968
9,154
13,591
17,262
9,485
126,664
9,852
8,739
9,292
9,437
440,632
19,006
22,330
26,554
18,922
316,706
7,510
7,384
7,790
9,390
252,569
4,499
4,415
4,965
5,813
64,137
3,010
2,970
2,825
3,517
122,470
133,844
14B,604
167,373
176,766
1,440
1,525
1,720
1,716
1,857
315,992
9,494
17,659
13,370
8,999
128,736
9,907
8,816
9,453
9,446
444,729
19,401
26,475
22,822
18,445
318,544
7,450
7,361
8,146
9,896
253,702
4,464
4,445
5,106
6,17B
64,839
3,987
2,917
3,040
3,717
1,124,439
136,25B
155,297
169,775
17B,13B
1,775
l,B64
1,969
2,145
2.335
660
627
645
532
602
733
817
756
750
954
707
735
836
765
754
956
704
723
1,393
1,444
1,401
1,282
1,556
1,384
1,519
1,604
1,327
1,402
1,633
1,319
1,238
832
864
970
801
803
805
970
1,428
951
1,069
954
989
948
303
544
641
535
453
534
528
319
329
266
350
301
327
509
379
366
396
408
353
175,211
175,B12
176,267
176,765
177,539
178,1oB
178,138
178,392
17B,816
179,190
lBl,938
182,270
182,554
1,920
1,895
1,873
1,857
1,832
1,811
2,331
2,256
2,209
2,175
2,135
2,101
2,074
Matured
Fiscal years:
1935-90 ......... __ .
1991 _.......
1992 ... '"''
1993 ...... _.. _. _..
1994 ...... _.......
Calendar years:
1935-90. _...
1991 ... _..... _.. "
1992 . _" . " .......
1993 .. , _........ _.
1994 ,,_ .. _....... _
1994 - June .... _....
July., ..•. _..•
Aug. , ..... "
Sept..., _.. ,,_
Oct.. _' ......
Nov, . " . _" ..
Dec..... _... _
1995 - Jan.. , .•.....
Feb..........
Mar.. _" ... _,
~r_
.. _.... _
ay ..... _.. _
June ... _.....
I
677
784
768
562
648
577
615
515
Because there is a nonmal lag in classifying redemptions, the distribution 01 redemptions
between sales price and accrued discount has been estimated.
643
919
572
704
558
581
595
50
U.S. SAVINGS BONDS AND NOTES
TABLE SBN-3.--Sales and Redemptions by Period, Series E, EE, H, and HH
.lIn mllhons 01 ~O~lar~ _~~urce "MOnlhly Stalemenl allha Public Debl allha Unltad States-; Market Anal~sls Section, U 5, Savings Bonds_OlvlSlonL___ ___ _ _
Period
...
- _._--- ------
Accrued
discounl
(2)
Sales
(1)
Sales plus
accrued
discounl
(3)
Total
(4)
Redemptions
Sales
price
(5)
Accrued
discount
(6)
Amount outstanding
Exchange of
Matured
Ebonds for
Interest·
non-interest·
Hand HH bonds bearing debt
bearing debt
(7)
(8)
(9)
Series E and EE
------Fiscal years:
1941-90 .......
1991 ........
1992 .. , ...........
1993 ..............
1994 ... ' .....
264,485
9,154
13,591
17,262
9,485
124,265
9,852
8,739
9,292
9,437
388.750
19,006
22,330
26,554
18,922
261,370
6,952
6,909
7,335
8,836
199,638
3,942
3,939
4,509
5,259
61,731
3,010
2,970
2,825
3,577
12,960
857
1.038
1,226
844
112,975
124,095
138,286
156,286
165,387
1,425
1,509
1,701
1,694
1,835
Calendar years:
1941·90 .. ' .........
1991 ..............
1992 ..............
1993 ..........
1994 .......... ,
266,516
9,494
17,659
13,370
8.999
126,297
9,878
8,816
9,453
9.446
392,812
19.372
26.475
22,822
18,455
263,073
6,896
6,909
7.664
9,304
200,629
3,922
3,992
4.624
5,587
62,445
2,974
2,917
3,040
3,717
13,122
902
1,170
1,070
855
114,929
126,099
144,724
158,633
166,731
1,747
1,836
1.939
2,119
2,307
660
627
645
532
602
732
817
756
750
954
707
735
836
765
754
956
704
723
1.392
1,444
1,401
1,282
1,556
1.384
1,519
1,604
1,327
1,402
1,633
1,319
1,238
784
816
913
752
751
781
917
1,360
891
999
8B8
927
256
497
528
319
329
266
350
301
327
509
379
366
396
408
353
67
76
73
71
65
66
64
70
71
83
78
79
85
163.895
164,471
164,908
165,387
166,148
166,705
166,731
166,978
167,390
167,747
168,354
168,702
168,997
1,920
1,876
1,855
1,835
1,815
1,795
2,307
2,234
2,188
2,151
2,112
2,078
2,051
1994·June .....
July ...... ,
Aug...
Sept.. ........
Oct ..........
Nov.. , ... , ...
677
Dec..........
784
1995 - Jan...... ' ...
768
Feb..........
562
Mar.. ,. __ , ...
648
Apr, ...... , ..
577
May .........
615
June .........
515
--,------.---------
B85
5B4
486
401
480
589
851
511
633
491
519
532
----
Series H and HH
----_.--_..
---------------Fiscal years:
1952-00 ............
1991 ..............
1992 ............. ,
1993 ..............
1994 _ . . . . .. . . , . . ,
Calendar years:
1952-90 ............
1991 ..............
1992 ..............
1993 .........
1994 ., ........ _...
1994 - June .....
July .....
Aug ..... ,
Sept.. ....
Oct. ....
Nov .. _.. _
Dec. __ . __
1995·Jan..........
Feb.
Mar.
Apr.
May ...... ..
June
-- -- -_ ..- ,
-------
13,573
-37
9
13,573
-37
3
3
13,578
13,578
·36
-36
·31
·18
1
·31
·18
1
2
·4
3
-3
-1
2
-4
3
·3
·1
9
-I
-,
1
4
1
4
4
-2
J
-6
4
17,026
557
476
455
555
17,026
557
476
455
555
12,960
857
1,038
1,226
644
9,495
9,749
10,319
11,087
11,379
13
15
17
17
17,164
539
453
482
592
17,164
539
453
482
592
13,122
902
1,170
1.070
855
9,509
9,825
10,573
11,143
11,407
24
25
25
25
24
4B
48
57
49
52
54
53
69
61
70
67
62
63
48
48
57
49
52
54
53
69
61
70
67
67
76
73
71
11,316
11,340
11,360
11,379
11,391
11,403
11,407
11,414
11,426
11,443
11,454
11,472
11,489
19
18
18
17
17
16
24
-2
1
-6
----------------Nore --Senes E and EE InClude U S savings nores (Freedom Shares) on sal& 'rom
Ma~ 1, 1967 IhrougM June 30. 1970, to E bona tlU~ers
62
63
65
66
64
70
71
83
78
79
85
11
22
21
19
19
18
17
51
INTRODUCTION: Ownership of Federal Securities
Federal securities presented in the following tables are
public debt securities such as savings bonds, bills, and notes
that the Treasury issues. The tables also detail debt issued by
other Federal agencies under special financing authorities.
(See the Federal debt (PO) tables fora more complete description of the Federal debt.)
• Table OFS-l presents Treasury marketable and nonmarketable securities and debt issued by other Federal agencies held by Government accounts. the Federal Reserve banks.
and private investors. Social Security and Federal retirement
trust fund investments comprise much of the Government
account holdings.
The Federal Reserve banks acquire Treasury securities in
the market as a means of executing monetary policy.
• Table OFS-2 presents the estimated amount of public
debt securities held by private investors. Information is obtained from sources such as the Federal financial institution
regulatory agencies. State, local, and foreign holdings include
special issues of nonmarketable securities to municipal entities
and foreign official accounts. They also include municipal,
foreign official, and private holdings of marketable Treasury
securities. (See footnotes to the table for description ofinvestor
categories.)
52
OWNERSHIP OF FEDERAL SECURITIES
TABLE OFS-l.--Distribution of Federal Securities by Class of Investors and Type of Issues
[In mIllIons 01 dollars Source FII'lanc:lal Managamenl Serw:e. Flllanaal Repons Branch)
Interest-bearing public debt securities
Total
Federal
securities
outstanding
(1)
Total
outstandng
(2)
........................
........................
........................
........................
........................
3,266,073
3.683.054
4.062.871
4.436,171
4,721.293
3,210,943
3.662.759
4.061,801
4.408,567
4.689.524
795,762
919.573
1,016.330
1,116,713
1.213,115
15.731
11.318
5,522
3.225
1.426
1.010,808
1.113.488
1.211,689
1994· June ...................
July ...................
Aug....................
4,673.263
4,664.196
4,719,618
4.721,293
4,760,604
4.805,282
4,826,916
4,842.572
4,880.753
4,690,575
4.878,806
4,930,589
4,978,233
4,642,523
4,616,171
4,688,745
4,689,524
4,730,969
4.ns,318
4,769.171
4,812,208
4,850,521
4,B60,502
4,831,533
4,900,346
4,947,814
1.202,951
1.196,787
1,199.765
1,213,115
1,219.609
1,223.252
1,257,048
1,259,092
1,258.572
1,254,674
1,271,219
1,278,602
1,316,564
2,345
1,947
1,708
1,426
1.584
1,584
1,584
1,584
1.519
1,519
1,519
1,519
1,519
1.200,606
1,194,840
1,198.057
1,211,689
1,218,025
1.221,668
1,255,464
1.257,508
1,257,053
1,253,155
1,269.700
1,277,083
1,315,045
End 01
fiscal year
or month
- -
1990
1991
1992
1993
1994
.
--
._--
-------
Sep!...................
Oct....................
Nov....................
Dec. ...................
1995· Jan ... , ................
Feb....................
Mar....................
Apr....................
May ...................
June ...................
Total
(3)
Held b~ U.S. Government accounts
Marketable
Nonmarketable
(5)
(4)
780.031
Public issues
held by Federal
Reserve banks
(6)
232.541
264.708
296,397
325.653
355.150
908.255
357,703
351.608
355,629
355,150
355.928
365.700
374,084
364,997
365.631
369,300
371,304
373,578
388.965
_._----------
End of
fiscal year
or month
1990
1991
1992
1993
1994
Interest-beari!!9 public debl securities, con.
He[d b~ private investors
Tolal
Marketable
Nonmarketable
(7)
(8)
(9)
Malured
public
debt
anddebl
bearing no
interest
(10)
........................
........................
........................
........................
........................
2,182,640
2,478,478
2,749,074
2,966,201
3,121,259
1,844,487
2,114,634
2,375,557
2.576.032
2,735.026
338,153
363,844
373,517
390,169
386,233
22.370
2,544
2,819
2,922
3,226
1994· June ...................
July ...................
Aug....................
3,081,869
3,067,ns
3,133,351
3,121.259
3,155.432
3,186,366
3,138,039
3,188,119
3,226,318
3,236,528
3.189,010
3,248,166
3,242,285
2,690.941
2,680,914
2,746,365
2,735.026
2,769,088
2,801,459
2,750.367
2,806,817
2,844,780
2,856,515
2,809.430
2,866.367
2,862,136
390,928
386,862
386.986
386,233
386,345
384,907
387,673
381,302
381,539
380,013
379.579
381,798
380,149
3,279
20,191
3,246
3,226
3.198
3.203
30,979
3.619
Sept. .. -_ ... - .........
Oct. ...................
Nov....................
Dec ....................
1995· Jan....................
Feb....................
Mar..... ..... -, .... ,_.
Apr....................
May .....
June ...................
.0
••••••••
,_"
3,m
3,614
20.795
3.580
3,558
Total
outstanding
(11)
Agency securities
Held by
U.S. Government
accounts and
Federal ReseM!
banks
(12)
32.758
17.751
18,250
182
176
24,682
28,543
21
17
27,461
27,834
27,627
28.543
26,437
26,762
26,766
26,745
26,455
26,459
26,479
26,663
26,861
17
17
17
17
17
17
123
17
17
17
17
17
17
17
Held by
private
investors
(13)
32,576
17.575
18,127
24,661
28,526
27,444
27,817
27,610
28,526
26,420
26,745
26,749
26,728
26,438
26,442
26,462
26.646
26.844
OWNERSHIP OF FEDERAL SECURITIES
53
TABLE OFS-2.--Estimated Ownership of Public Debt Securities by Private Investors
[Par values 1 in billions of dollars. Source: Oflioe of Market Finance]
End of
month
Total priCommervatelyheld cial banks'
(1)
(2)
Total
(3)
Tolal
(4)
Nonbank investors
Individuals 3
Money
Savings
Other
Insurance
market
bonds' securities companies
funds
(5)
(6)
(7)
(8)
State and Foreign
Corpo- local govern- and interralions 5 menls' national'
(9)
(10)
(11)
1985· Mar.....
June ....
Sept... ..
Dec.....
1,254.1
1,292.0
1,338.2
1,417.2
192.6
195.6
196.2
189.4
1,061.5
1,096.4
1,142.0
1,227.8
145.1
148.7
151.4
154.8
75.4
76.7
78.2
79.8
69.7
72.0
73.2
75.0
66.6
69.1
73.4
BO.5
26.7
24.8
22.7
25.1
50.8
54.9
590
59.0
199.8
213.4
226.6
1986·Mar.....
June ....
Sept. ....
Dec.....
1,473.1
1,502.7
1,553.3
1,602.0
194.3
194.4
194.8
197.7
1,278.8
1,30B.3
1,358.5
1,404.3
157.8
159.5
158.0
162.7
81.4
83.8
87.1
92.3
76.4
75.7
70.9
70.4
85.8
87.9
93.B
101.6
29.9
22.8
24.9
2B.6
1987-Mar. ....
June ....
Sep\. ....
Dec.....
1,641.4
1,658.1
1,680.7
1,731.4
193.6
192.5
19B.4
194.4
1,447.8
1,465.6
I.4B2.3
1,537.0
163.0
165.6
167.7
172.4
94.7
96.8
98.5
101.1
68.3
68.8
69.2
71.3
106.3
104.7
106.2
108.1
19B5-Mar.....
June ....
Sept.. ...
Dec.....
l,m.6
1,786.7
1,821.2
1,858.5
195.6
190.8
191.5
185.3
1,584.0
1,595.9
1,629.7
1,673.2
17B.l
182.0
186.8
190.4
104.0
106.2
107.8
109.6
74.1
75.8
79.0
80.8
1989- Mar.....
June ....
Sept... ..
Dec.....
1,903.4
1,909.1
1,958.3
2,015.8
192.4
178.4
166.9
165.3
1,711.0
1,730.7
1.791.4
1,850.5
204.2
211.7
213.5
216.4
112.2
114.0
115.7
117.7
1990 - Mar.....
June ....
Sept... ..
Dec.....
2,115.1
2,141.8
2,207.3
2,288.3
178.8
177.3
180.0
172.1
1,936.3
1,964.5
2,027.3
2,116.2
222.8
229.6
232.5
233.8
1991·Mar.....
June ....
Sep!.. ...
Dec.....
2,360.6
2,397.9
2,489.4
2,563.2
187.5
196.2
217.5
232.5
2,173.1
2,201.7
2,271.9
2,330.7
1992 -Mar.....
June ....
Sept... ..
Dec.....
2,664.0
2,712.4
2.765.5
2,839.9
255.9
267.0
287.5
294.4
1993 -Mar.....
June ....
Sept.. '"
Dec.....
2,895.0
2,938.4
2,983.0
3,047.7
1994-Mar.....
June ....
Sept. ....
Dec.....
1995-Mar. ....
June ....
Other
investors B
(12)
299.0
199.6
213.8
222.9
224.8
372.8
371.7
386.1
384.6
59.6
61.2
65.7
68.B
300.0
317.4
329.0
342.1
232.6
250.9
265.5
263.4
4131
40B.6
421.6
437.1
18.8
20.6
15.5
14.6
73.5
79.7
81.8
84.6
359.0
375.4
386.5
403.9
272.8
281.1
279.5
299.7
454.5
43B4
445.1
453.7
110.2
113.5
115.9
118.6
15.2
13.4
11.1
11.8
86.3
87.6
85.9
86.0
413.5
423.5
42B.5
435.4
332.5
345.4
345.9
362.2
44B.l
430.5
4556
468.B
92.0
97.7
97.B
98.7
119.7
120.6
121.2
123.9
13.0
11.3
12.9
14.9
89.4
91.0
90.9
93.4
435.0
439.2
442.5
442.5
376.6
369.1
394.9
429.6
473.1
487.B
5155
529.8
119.9
121.9
123.9
126.2
102.9
107.7
108.6
107.6
132.3
133.7
136.4
138.2
31.3
28.0
34.0
45.5
94.9
96.9
102.0
108.9
455.6
464.4
460.9
462.5
421.8
427.3
440.3
458.4
577.6
584.6
621.2
66B.9
238.3
243.5
257.5
263.9
129.7
133.2
135.4
138.1
108.6
110.3
122.1
125.8
147.2
156.B
171.4
181.8
65.4
55.4
64.5
BO.O
114.9
130.8
142.0
150.B
466.7
471.3
472.9
485.1
464.3
473.6
477.3
491.7
676.2
670.2
686.3
677.4
2,408.1
2,445.4
2,47B.0
2,545.5
268.1
275.1
281.2
289.2
142.0
145.4
150.3
157.3
126.1
129.7
130.9
131.9
18B.4
'92.B
194.B
197.5
84.8
79.4
79.4
79.7
166.0
175.0
18Q.B
192.5
484.0
488.1
479.5
476.7
507.9
529.6
535.2
549.7
70B.9
705.5
727.1
760.2
310.2
307.2
313.9
322.2
2,584.8
2,631.2
2,699.1
2,725.5
297.7
303.0
305.B
309.9
163.6
166.5
169.1
171.9
134.1
136.4
136.7
137.9
208.0
217.8
229.4
234.5
' 77.9
76.2
74.8
80.B
199.3
206.1
215.6
213.0
488.8
505.4
513.8
50B.9
564.2
567.7
591.3
' 623.0
749.2
755.0
738.3
' 755.4
3,094.6
3,08B.2
3,127.8
3,168.0
344.9
330.8
313.9
' 290.6
2,749.7
2,757.4
2,813.9
' 2,877.4
315.1
321.1
327.2
333.0
175.0
177.1
178.6
180.5
140.1
144.0
148.6
152.5
237.7
' 234.5
' 246.2
' 242.8
69.3
' 59.9
60.1
67.6
216.3
226.3
229.3
' 226.5
'
'
'
'
509.5
494.7
469.7
443.3
'
'
'
'
'
'
'
'
3,239.1
3,244.6
P
' 303.5
305.0
' 2,935.6
2,939.6
342.7
344.2
181.4
182.6
161.4
161.6
' 259.0
' 260.0
' 67.7
' 58.7
230.3
' 227.7
' 415.2
' 415.0
1 U.S. savings bonds. series A·F and J, are included at current redemption value.
, Includes domestically-chartered banks, U.S. branches and agencies of foreign banks. New
York investment ccmpanies ~ority owned by foreign banks. and Edge Act corporations
owned by domestically charter and foreign banks.
, Includes partnerships and personal trust accounts.
• Includes U.S. savings notes. Sales began May 1, 1967. and were discontinued June 30, 1970.
S ExclUSive of banks and insurance companies.
632.2
633.1
655.5
688.6
' 729.6
' 7B3.7
769.5
787.9
825.9
875.6
' B91.0
' B5D.4
• State and local government estimate includes State and local government series as well as
State and local penSion funds.
1 Consists 01 the investments 01 foreign and international accounts (both official and private)
in the United States public debt issues. Estimates reflect 1978 benchmark to September 1984;
the 1984 benchmark to September 1989; and the 1989 benchmark to date
• Includes savings and loan associations, credit unions. nonprofit institutions. mutual savings
banks, corporate penSion trust funds, dealers and brokers, certain Government deposit
acocunts, and Government-sponsored enterprises.
54
INTRODUCTION: Market Yields
The tables and charts in this section present yields on
Treasury marketable securities. and compare long-term yields
on Treasury securities with yields on long-term corporate and
municipal securities.
• Table MY-l lists Treasury market bid yields at constant
maturities for bills. noles. and bond,. The Treasury yield curve
in the accompanying chart is based on current market bid
quotations on the most actively traded Treasury securities as
of 3:30 p.m. on the last business day of the calendar quarter.
Treasury obtains quotations from the Federal Reserve
Bank of New York, which compiles quotations provided by
tive primary dealers. Treasury uses these composite quotations
to derive the yield curve, based on semiannual interest payments and read at constant maturity points to develop a consistent data series. Yields on Treasury bills are coupon
equivalent yields of bank discount rates at which Treasury
bills trade in the market. The Board of Governors of the
Federal Reserve System publishes the Treasury constant maturity data series in its weekly H.tS press release.
• Table MY-2 shows average yields of long-term Treasury, corporate. and municipal bonds. The long-term Treasury
average yield is the 30-year constant maturity yield. The
corporate bond average yield is developed by Treasury by
calculating reoffering yields on new long-term securities maturing in at least 20 years and rated Aa by Moody's Investors
Service. The municipal bond average yield prior to 1991 was
compiled by Treasury. Beginning with January 1991, the average yield is the "Municipal Bond Yield Average," published
by Moody's Investors Service for 20-year reoffering yields on
selected Aa-rated general obligations. See the footnotes for
further explanation.
TABLE MY-l.--Treasury Market Bid Yields at Constant Maturities: Bills, Notes, and Bonds*
--. ------
- . - ..
-
'_' _ _ . _ _ _ _ -1.I..n ~centages. Source'
Date
--- - " - -
Otflce.o~arket
Finance]
- - . _ - - - - - - - - - - - -..-
3-mo.
(1)
6-mo.
(2)
1·yr.
(3)
2-yr.
(4)
3-yr.
(5)
5-yr.
(6)
4.46
4.61
4.75
5.10
5.45
5.76
5.90
5.94
5.91
5.84
5.B5
5.64
4.95
5.08
5.24
5.62
5.98
6.50
6.51
6.31
6.17
6.05
5.93
5.66
5.48
556
5.76
6.11
6.54
7.14
7.05
6.70
6.43
6.27
6.00
5.64
6.13
6.18
6.39
6.73
7.15
7.59
7.51
7.11
6.78
6.57
6.17
5.72
6.48
6.50
6.69
7.04
7.44
7.71
7.66
7.25
6.89
6.68
6.27
580
4.39
4.68
4.80
5.20
5.72
5.68
6.00
5.94
5.88
5.87
5.81
5.60
4.B7
5.03
5.43
5.72
622
6.51
640
619
6.13
608
5.83
559
5.37
5.56
5.96
6.18
6.91
7.20
6.84
6.44
6.49
6.32
5.80
5.99
6.17
6.62
6.84
7.40
7.69
7.26
6.79
6.80
6.60
5.89
5.79
6.33
6.44
6.92
7.10
7.62
7.80
7.39
6.90
6.92
6.72
5.95
5.88
-- - - - - -
7-yr.
(7)
10-yr.
(8)
30·yr.
(9)
6.91
6.88
7.08
7.40
7.72
7.78
7.76
7.37
7.05
6.86
6.41
5.93
7.12
7.06
7.28
7.58
7.83
7.80
7.79
7.44
7.14
6.95
6.50
6.05
7.30
7.24
7.46
7.74
7.96
7.81
7.78
7.47
7.20
6.63
6.17
7.58
7.49
7.71
7.94
8.08
7.87
7.85
7.61
7.45
7.36
6.95
6.57
6.73
6.81
7.28
7.48
7.79
7.83
7.54
7.06
7.08
6.68
6.92
7.00
7.46
7.65
7.84
7.84
7.58
7.15
7.17
6.95
6.18
6.12
7.12
7.19
7.62
7.81
7.91
7.84
7.60
7.22
7.20
7.07
6.30
6.21
--------------.
Monthly average
1994· July .......
Aug ...........
Sept. .........
OCI. ..........
Nov...........
Dec ...........
1995 - Jan .......
Feb ..........
Mar. ..........
Apr. . . . . . . , . .
May .......
June .........
7.06
End of month
1994· July ..........
Aug .....
Sept. .........
Oct. .........
Nov ...........
Dec .........
1995· Jan ....
Feb .........
Mar ....
Apr. .....
May .....
June .........
--
- -
----._._------
• Rates are 'rom the Treasury Yields curve
5.65
6.08
5.98
7.39
7.46
7.82
7.97
7.99
7.89
7.71
7.46
7.44
7.34
6.67
6.63
MARKET YIELDS
55
CHART MY-A.--Yields of Treasury Securities,
June 30, 1995 *
Based on closing bid quotations (in percentages)
7.-------------------------------------------------~
6
(V.... tick maries conaspond with JIN data.)
5~~--~--~--~~~-.--~--,---.--,---.--1r--~--~~
97 99 01 03 05 07 09 11 13 15 17 19 21
23 25
Years
Note: The curve is based only on the most actively traded issues. Market yields on coupon issues due in less than 3 months are excluded .
• Source: Department of the TreasllY. Office of MarIIet Finance
MARKET YIELDS
56
TABLE MY-2.--Average Yields of Long-Term Treasury, Corporate, and Municipal Bonds
[In percentages Source' Office 01 Market Finance!
Period
...
----------.---.---------------
Treasury
3O-yr. bonds
(1)
MONTHLY SERIES-AVERAGES OF DAILY OR WEEKLY SERIES
NewAa
corporate
bonds '
(2)
NewAa
muniCipal
bonds'
(3)
- - - - , - - - "--' ... _...
...
------_..
1984
Jan ................................................................................ .
Feb................................................................................ .
Mar............................................................................... .
Apr................................................................................. .
May ................................................................................ .
June...
. .................................................................. .
July ................................................................................ .
Aug ................................................................................ .
Sept.. .............................................................................. .
OC!.. ............................................................................... .
Nov................................................................................ .
Dec................................................................................ .
11.75
11.95
12.38
12.65
13.43
13.44
12.54
12.29
11.98
11.56
11.52
12.65
12.80
13.96
13.64
14.41
14.49
14.25
13.54
13.37
13.02
12.40
12.47
9.18
9.30
9.68
9.69
10.28
10.44
9.95
9.68
9.93
9.97
9.79
9.65
11.45
11.47
11.81
11.47
11.05
10.45
10.50
10.56
10.61
10.50
10.06
9.54
12.46
12.39
12.85
12.45
11.85
11.33
l'.2B
11.61
11.66
11.51
11.19
10.42
9.11
9.26
9.52
9.16
8.79
8.46
8.73
8.96
9.04
9.00
B.45
8.44
9.40
8.e3
7.96
7.39
7.52
7.57
7.27
7.33
7.62
7.70
7.52
7.37
10.33
9.76
8.95
8.71
9.09
9.39
9.11
9.03
9.28
9.29
8.99
8.87
8.02
6.93
6.93
7.14
7.50
7.75
7.34
7.66
6.94
6.59
6.72
6.70
7.39
7.54
7.55
8.25
8.78
8.57
8.64
8.97
9.59
9.61
8.95
9.12
8.59
8.58
8.68
9.36
9.95
9.64
9.70
10.09
10.63
10.80
10.09
10.22
6.18
6.34
6.47
7.43
7.71
7.69
7.48
7.59
7.90
8.33
7.76
7.83
13.21
1985
Jan................................................................................ .
Feb ................................................................................ .
Mar. ............................................................................... .
Apr.............................................................. .
May ................................................................................ .
June ............................................................................... .
July ................................................................................ .
Aug ............................................................................... .
Sept.. ............................................ _................................. .
Oct................................................................................. .
Nov......................................................... .
Dec................................................................................ .
1986
Jan................................................................................. .
Feb................................................................................ .
Mar ................................................................................ .
Apr................................................................... _............. .
May................................................................................ .
June .............................................................................. .
July ................................................................................ .
Aug................................................................................ .
Sept.. .............................................................................. .
Oct.. ............................................................................... .
Nov................................................................................ .
Dec................................................................................ .
1987
Jan................................................................................. .
Feb................................................................................ .
Mar................................................................................ .
Apr................................................................................ .
May ............................................................................ .
June........................
. ................................................ .
July ................................................................................ .
Aug ................................................................................ .
Sept. ............................................................................... .
Oct......................................... , ....................................... .
Nov. ..................
. ....................................................... .
Dec............................................................................... .
See footnotes af end of table
MARKET YIELDS
57
TABLE MY-l.-Average Yields of Long-Term Treasury, Corporate, and Municipal Bonds, eon.
[In p!ICI!!!!!g!!!. Source: 0II0e of Market Finance!
NewAa
NewAa
Treasury
3O-yr. bonds
corporate
bends'
munqml
(1)
(2)
(3)
9.81
9.43
9.68
9.92
10.25
10.08
10.12
10.27
10.03
9.86
9.98
10.05
7.46
7.34
7.55
7.69
7.63
7.67
7.63
7.62
7.30
7.27
7.39
7.40
8.93
9.01
9.17
9.03
8.83
8.27
8.08
8.12
8.15
8.00
7.90
7.90
9.92
10.11
10.33
10.11
9.82
9.24
9.20
9.09
9.29
9.04
9.20
7.18
7.31
7.42
7.30
7.05
6.94
6.89
6.73
7.10
7.13
6.95
6.76
9.56
9.68
9.79
10.02
9.97
9.69
9.12
10.05
10.17
Nov................................................................. · .............. .
Dec. ••.••••.•••••.•••••..•••••.•..•.•.........•.......••••..•.•.•...............•....
8.26
8.50
8.56
8.76
8.73
8.46
8.50
8.86
9.03
8.86
8.54
8.24
1991
Jan................................................................................ .
Feb................................................... •••• .... • .. • .. • ............. ..
8.27
8.03
9.8)
Mar................................................................................ .
8.29
Apr................................................................................ ..
8.21
8.27
8.47
8.45
8.14
7.95
7.93
Period
1.
bonds 2
MONTHLY SERIES-AVERAGES OF DAILY OR WEEKLY SERIES
Jan ................................................................................ .
Feb .................................... · ........................................... .
Mar ................................................................................ .
Apr ................................................................................ .
May .............................................................................. ..
Jun8 ............................................................................... .
....Iy •••••••.•••••.•••.•••••••••••••.••••.•••.••.••.••••••••••••••• , ••.•••.•••••••••••
Aug ....••........•••.•.....•...•••...•..••...•.....••....•....•..•••.••..•.••••...••
SepI .............................................................................. "
Oct ................................................................................ .
8.83
8.43
8.63
8.95
9.23
9.00
9.14
9.32
9.06
8.89
Nov.•..••.••••..••••••••••••..•••••••••.•.••••••..••••.••••••.••.••.••••.••....•....
9.m
Dec................................................................................ .
9,01
1989
Jan. .............................................................................. ..
Feb................................................................................ .
Mar............................................................................... ..
Apr................................................................................. .
May ............................................................................... .
June ............................................................................... .
July......•...........••....•...•.....•..••...•.........•••.•..•.•........•..........
Aug................................................................................ .
Sept. .............................................................................. ..
0cI................................................................................. .
Nov............................................................................... ..
Dec............................................................................... ..
9.23
1990
Jan. ............................................................................... .
Feb................................................................................ .
Mar................................................................ •· .. · .... ·· .... •.
Apr................................................................................. .
May ............................................................................... .
June ............................................................. •• ........ • ....... .
JIAy................................................................................ .
Aug. ............................................................................... .
Sept. ............................................................................... .
Oct.. ............................................................................... .
May .............................................................................. ..
June ............................................................................... .
July•••••.••.••••.•••••.••.•••.•••••...•..••...•••.•••...••..•.. ·······••···•••·•··· .
Aug. ............................................................................... .
Sept. •....••..•.•..•....••.•..........•...•.•........•...••..................••......
Oct............................................... ·····················•········•·•· .
Nov.................................................... ·· ..... • .. • .. ··• .. • .. • .. .... .
Dec................................................... · .................. · .... ··· .. ·
See fooInoIes at end of table.
7.~
7.70
10.09
9.79
9.65
9.14
9.14
9.m
9.13
9.37
9.38
8.88
8.79
8.81
8.72
8.55
6.95
7.03
7.09
7.26
7.14
6.98
7.03
7.13
7.15
7.24
6.87
6.85
7.00
6.61
6.88
6.81
6.78
6.90
6.89
6.66
6.58
6.44
6.37
6.43
MARKET YIELDS
58
TABLE MY-2.--Average Yields of Long-Term Treasury, Corporate, and Municipal Bonds, con.
NewAa
corporate
bonds '
__________.____ ~)________ _ . t2)
Treasury
30·yr. bonds
Period
..... - - - - - - - - - - - - - - - - - - - - - -
NewAa
municipal
bonds'
(3)
_
MONTHLY SERIES-AVERAGES OF DAILY OR WEEKLY SERIES
1992
Jan ................................................................................ .
Feb ................................................................................ .
Mar..............................•.•.......... , .................................... .
Apr................................................................................. .
May .......................................................................... , .... .
June ......................................................................... , ..... .
July ............................................................... " ......... ""'"
Aug... , ............... ,., ......................................................... .
Sept................................................................................ .
Oct.. ................................................ , ......... , '" ................. .
Nov ............................................................ _................... .
Oec.............................................................. , ................. .
7.58
7.85
7.97
7.96
7.89
7.84
7.60
7.39
7.34
7.53
7.61
7.44
B.36
8.63
B.62
B.59
8.57
B.45
a.19
7.96
7.99
8.25
B.12
6.29
6.42
6.59
6.54
6.39
6.32
5.90
5.81
6.05
6.18
6.22
6.02
7.34
7.09
Il.B2
6.85
6.92
6.Bl
6.63
6.32
6.00
5.94
6.21
6.25
7.91
7.73
7.39
7.48
7.52
7.4B
7.35
7.04
6.88
6.BB
7.17
7.22
6.05
5.74
5.54
5.64
5.61
5.54
5.40
5.50
5.44
5.23
5.19
5.27
6.29
6.49
6.91
7.27
7.41
7.40
7.5B
7.49
7.71
7.94
8.08
7.87
7.16
7.27
7.64
7.95
B.17
8.16
B.30
8.25
8.48
8.76
B.89
8.66
5.19
5.16
5.47
5.59
5.79
5.96
6.11
6.07
6.10
6.31
6.79
6.63
7.85
7.61
7.45
7.36
6.95
6.57
B.59
8.39
B.23
8.10
7.6B
7.42
6.48
6.09
5.91
B.17
1993
Jan....................... _.................................... .
Feb................................................................................ .
Mar....................... _............... _.................... _.... """"""
ApL. ........... '" """""'" ........ _..................................... .
May ........................................................................... _
June ......................................................................... .
July .. _......................................................................... _
Aug................................................................................ .
Sept.. .............................................................................. .
Oct................................................................................. .
Nov... , ........................................................................... "
Oec ................................................................................ .
1994
Jan.............•...................................................................
Feb................................................................... -............ .
Mar................................................................................ .
Apr................................................................................. .
May .... , .......................................................................... .
June ............................................................................... .
July ................................................................................ .
Aug....................................................
. ..................... .
Sept. ............... __ ....... __ .. __ -- .. .. .. . .. .. . .. . . -
-- --- . . ... -- .... -- ..
Oct.........
_.............................
_..................... .
Nov................................................................................ .
Dec... ..
1995
Jan............................................................................... "
Feb ..................................... -................... .
Mar. .............. _................................................................ .
Apr.. ...................... , .........•... ' ............... """ ..................... .
May .................................... -.......................................... .
June .... ' .......................................................................... .
, T reasur; sene. baslld on 3-wee~ rn()V1ng average of r8Ofte"ng YIelds 01 new corporate bOnds
rated Aa by Moody's Investors SarvlCll w,\tl an ong,nal matunry 01 at least 20 years.
5.80
5.75
5.61
2 Inde. of new raofl."ng y'eldS on 2D-year general obhgatlons rated Aa by Moody's Inves·
tors ServIce Source: U.S. Treasury. 1980·90; Moody·s. January t991 to prasen\.
59
MARKET YIELDS
CHART MY-B.--Average Yields of Long-Term
Treasury, Corporate, and Municipal Bonds
Monthly averages (in percentages)
18~----------------------------------------~
Treasury 30-Yr. Bonds
Aa Municipal Bonds
16
- - - - - Aa Corporate Bonds
14
1\
85
86
1\
1 ~
87
\,
/1
88
,,'
I
"\
I \ \ \
"'\,1
.......
89
90
Calendar Years
91
92
93
94
60
INTRODUCTION: U.S. Currency and Coin Outstanding and in Circulation
The U.S. Currency and Coin Outstanding and in Circulation (USCC) statement informs the public of the total face
value of currency and coin used as a medium of exchange that
is in circulation at the end of a given accounting month. The
statement defines the total amount of currency and coin outstanding and the portion deemed to be in circulation, and
includes some old and current rare issues that do not circulate,
or that may do so to a limited extent. Treasury includes them
In the statement because the issues were originally intended
for general circulation.
The USCC statement provides a description of the various
issues of paper money. It also gives an estimated average of
currency and coin held by each individual, using estimates of
population from the Bureau of the Census. usce information
has been published by Treasury since 1888. and was published
separately until \983, when it was incorporated into the
"'Treasury Bulletin." The USCC comes from monthly reports
compiled by Treasury offices, various U.S. Mint offices, the
Federal Reserve banks, and the Federal Reserve Board.
TABLE USCC-l.--Amounts Outstanding and in Circulation, June 30, 1995
[Source Financial Managemenl SeNlcs's General Ledger Branch]
Currency
Amounts outstanding ..
Total
currency
and coin
(1)
Total
(2)
Federal Reserve
notes I
(3)
U.S.
notes
(4)
Currency no
longer issued
(5)
$498,270,953,731
$475,363,116,833
$474,781,026,584
$322,539,016
$259,551 ,233
339.161,309
49,891,600
8,812,487
40,867,239
211,874
79,677,502,324
79,319,526,846
79,319,522,576
$418,254,290,098
$395,993,698,387
$395,452,691,521
Less amounts held by:
The Treasury .. '
The Federal Reserve banks.
Amounts In circulation ....
Total
(1)
Dollars 3
(2)
4,270
$281,671,777
$259,335,089
Fractional coins
(3)
$22,907,836,898
$2,024,703,898
$20,883,133,000
The Treasury
289,269,709
235,489,069
53,780,640
The Federal Reserve banks
357,975,478
35,879,396
322,096,082
$22,260,591,711
$1.753,335,433
$20,507,256,278
Amounts outstanding ...
Less amounts held by:
Amounts In circulation.
See 100lnoles lollowlng lable USCC-2
U.S. CURRENCY AND COIN OUTSTANDING AND IN CIRCULATION
61
TABLE USCC-2.--Amounts Outstanding and in Circulation, June 30,1995
(Sourc:e: Flnanc:iaJ Management Servlca's Generall.edger Branch]
Federal
Currency in circulaHon
by denomination
Reserve
U.S.
10181
no1es I
notes
(1)
(2)
(3)
Currency
no longer
issued
(4)
$1 ....................................
$6,907.442.896
$6,758,625,617
$143.481
$148,673,798
$2 ....................................
1.014.824.926
882,146,784
132.665,566
12,576
$5 ....................................
7.122.035.105
6,977,m,760
110.860.410
33,402,935
$10 .••...•........•..........•......•.
13,978.706,870
13,955,567,550
5.950
23,133,370
$20 ...................................
84,849.380.040
84.829.275,260
3,380
20,101,400
$50 ...................................
43,966.639,350
43,955,147,150
$100 ••.....................•..........
237,835,551,600
237,775,588,900
$500 ..................................
145,292,000
145,104,500
187,500
$1,000 .................................
168,605.000
168,399,000
206.000
$5,000 .................................
1.770.000
1.715,000
55,000
$10,000 ................................
3,450,000
3,350,()QO
100,000
FtaCliona! parts ..........................
...........................
485
115
Total currency ••••................•.•..
$395,993,698,387
Partial notes'
Comparative IoIaIs of
CUI'IerICY and coins
In cirOJIationselected dales
11,492,200
37,992,900
21,969,800
485
90
$395,452,691,521
$281 ,671 ,m
25
$259,335,089
Amount
Per
(in millions)
capita'
(2)
(1)
June 3D, 1995 .......................... .
418,254
1,591.24
May 31. 1995........................... .
411.125
1,565.37
Apr. 30. 1995........................... .
405,279
1,544.28
Sept. 30, 1990 .......................... .
278,903
1,105.14
Sept 30. 1985 ............ '" ........... .
187,337
782.45
Sept. 30. 1980•.•••.....•. '" ..•• , •• , •• , .
129.916
581.48
June 30, 1975 .......................... .
81,196
380.08
June 30. 1970 ......................... ..
54.351
265.39
June 30, 1965 ......................... ..
39.719
204.14
June 30, 1960 ......................... ..
32,004
177.47
June 30, 1955 .......................... .
30,229
182.90
June 30. 1950 ......................... ..
27,156
179.03
; Issued on Ill' altar July 1. 1929.
b:IucIaG coins sold 10 coIllCIOrS at pnmtlum priceS.
3,nclucies $481,781 ,see in standard silver dollars.
• ReprBSelllS value or cerlain partial denominations not pt1lS8nted for redemption.
• Based an Bureau of the census 8GlimaleS ot popuIalion.
NTERNATIONAL
STATISTICS
International Financial Statistics
Capital Movements
Foreign Currency Positions
Exchange Stabilization Fund
65
INTRODUCTION: International Financial Statistics
• Table IFS-2 contains statistics on liabilities to foreign
official institutions, and selected liabilities to all other foreigners,
which are used in the U.S. balance of payments statistics.
• Table IFS-3 shows nonmarketable bonds and notes that
Treasury issues to official institutions and other residents of
foreign countries.
• Table IFS-4 presents a measure of weighted-average
changes in exchange rates between the U.S. dollar and the currencies of certain other countries.
The tables in this section provide statistics on the U.S.
Government's reserve assets, liabilities to foreigners, and its
international financial position. All monetary figures are in dollars
or dollar equivalents.
• Table IFS-l shows reserve assets of the United States,
including gold stock and special drawing rights held in the Special
Drawing account in the International Monetary Fund (lMF). The
table also shows U.S. reserve holdings and holdings of convertible
foreign currencies in the IMF.
TABLE IFS-l.--U.S. Reserve Assets
[In millions 01 dollars. Source Office of International Financial Analtsis)
Total
reserve
assets I
stock'
(1)
1990........................
Reserve position
in International
Monetary
Fund'5
(5)
(2)
Special
drawing
rights I.'
(3)
Foreign
currencies 4
(4)
83,316
11,058
10,969
52,193
9,076
1991 ..................... '"
77,721
11,059
11,240
45,934
9,488
1992........................
71,323
11,056
8,503
40,005
11,759
1993........................
73,442
11,053
9,039
41,532
11,816
1994· July ..........
75,443
11,052
9,696
42,512
12,183
Aug............
75,740
11,054
9,837
42,688
12,161
Sep\.. .................
76,532
11,054
9,971
43,440
12,067
Oct................. '"
78,172
11,053
10,08B
44,692
12,339
Nov....................
74,000
11,052
10,017
40,894
12,037
Dec....................
74,335
11,051
10,039
41,215
12,030
76,027
11,050
10,154
42,703
12,120
81,439
11,050
11,158
46,378
12,853
86,761
11,053
11,651
50,639
13,418
Apr........ , ...........
88,756
11,055
11,743
51,752
14.206
May ...................
90,549
11,054
11,923
53,294
14,278
June ..................
90,063
11,054
11,869
52,864
14,276
July ...................
91,534
11,053
11,487
54,233
14,761
End of calendar
year or month
1995-Jan...............
Feb ....................
Mar........
,
........ '"
Gold
I Beginning July 1974. the International Monetary Fund (lMF) adapted a technique lor valuing
the special drawing right (SOR) based on a weighted·average of exchange rates for the
currencies of selected member countries. The U.S. SOR holdings and reserve position in the
IMF are also valued on this basis beginning July 1974.
2 Treasury values its gold stock a! $42.2222 per fine troy ounce and pursuant to 31 U.S.C. 5117
(b) issues gOld certilicates to the Federal Reserve at the same rate againsl all gold held.
3 Includes allocations 01 SORs in the Special Drawing Account in the IMF, plus Dr minus
transactions in SORs.
'Includes holdings of Treasury and Federal Reserve System; beginning November 1978, theSE
are valued at current marKet exchange rates Dr. where appropriate, at such other rates as ma]
be agreed upon by the parties to the transactions.
5 The United States has the right to purchase foreign currencies ~uivalent to its reserv.
posrtion in the IMF automatically if needed. Under a'ppropflate condillons. the United State,
could purchase additional amounts relaled to Ihe U.S. quota.
INTERNATIONAL FINANCIAL STATISTICS
66
TABLE IFS-2.--Selected U.S. Liabilities to Foreigners
lin W!lIltl~ 9' dQUilC5 SgUreD Qlhce of 'Olemational Financial AnalyslSJ
Liabilities to foreign countries
End of
calendar
yeal
01 month
Official institutions'
NonmarketMarketable U.S.
able U.S.
Treasury
Liabilities
Treasury
bonds
reported by
bonds
and
banks in
and
notes'
United Stales notes'
(5)
(3)
(4)
(Iablhhes to
other foreigners
Other
readily
marketable
liabilities'
(6)
(la6m-
Liabilities to
banks'
(7)
Total
(8)
ties
reported
by
banks in
United Stales
(9)
Liabili. Marketties
able U.S.
to nonTreasury
monetary
bonds international
and
and regional
notes' • organizations '
(10)
(11)
Total
(1)
Total
(2)
1990 ..........
1,192,827
334,915
119,367
202,905
4,491
8,152
611,088
232,151
93,625
138,526
14,673
1991 ..........
1,215,772
349,905
131,088
204,096
4,858
9,863
597,123
250,754
93,732
157,022
17,990
1992 ..........
1,311,325
389,661
159,563
210,972
4,532
14,594
619,613
282,107
94,026
188,081
19,944
1993 I
.........
1,461,129
458,081
220,908
212,278
5,652
19,243
669,942
311,509
101,366
210,143
21,597
1994 - June r ....
1,553,407
478,838
222.907
228,395
5.875
21,661
726,906
324.588
115,305
209,283
23,075
July r .....
1,557,768
493,390
231.463
233,458
5.914
22.555
728,015
315.179
109.613
205,566
21.184
Aug. r ....
1,570,142
495,646
222.818
243,214
5.952
23,662
731,073
324,700
113,313
211,387
18,723
Sept. r ....
1,595,561
498,677
221.075
247,885
5,990
23,727
737,276
338,032
119,287
218,745
21.576
Oct. r. ....
1.618,357
508,929
227,465
250.732
6,031
24,701
743,454
344,269
118,980
225,289
21,705
Nov. I
....
1,609,630
501,460
216,752
253,492
6,069
25,147
732,564
354.627
119.030
235,597
20,979
I ....
1.649,412
497,812
212,301
254.100
6,109
25,302
770,647
361,453
114,500
246,953
19,500
1995 - Jan. r ....
1,655,065
494,656
207,123
255.929
6,138
25,466
767.102
373.166
117.790
255,376
20,141
Feb.
1,676,979
504,945
214,667
258,039
6.094
26,145
767,515
385,190
118,539
266,651
19,329
....
1,703,274
520,189
225,387
262,061
6,135
26,606
780.118
381,765
110,029
271,736
21,202
ApI .......
1,716,066
529.807
231,765
265,205
6.174
26,663
775,903
389,743
114,735
275.008
20,613
Mayp ....
1.737.311
535,785
239,308
263,395
6,210
26,872
774.591
406,551
115,165
291.386
20,384
June p ....
1.772,511
554.027
245,990
274,317
6,245
27,475
780,591
416,849
113,990
302,859
21,044
Dec.
I ....
Mar. I
, Includes Bank lor InternatIOnal Settlements
Denved by applying reported transactions to benchmark data
3 tncludes current vatue 01 zero-eou&;'n Treasury bond Issues to lorelgn governments as
follows MexICO beginning March 19 . 20-year matu~ Issue and beginning March 1990.
3O-year matunty Issue, Venezuela. b~'n",n9 December 990, 3O-year matunty Issue. Argentina. beginning Apnt t 993. 3O-year ma urily Issue Also. see lootnotes to tabte tFS-3
• tncludes Clebt securrtles 01 U S Government corporations, lederally sponsored agencies. and
fnvate corporations
Includes Ilablhhes g:yable In dollars to lorelgn banks and lIabilities payable In lorelgn
Currencies to lorelgn
nks and to -other lorelgners '
• Includes marteetable U S Government bonds and notes held by loralgn banks
, Pnnclpally the Intamatlonal Bank lor R8CXlnstruc:tlon and DeveloPment. tna Inter-Ama"can
2
pevelopment Bank. and the Asian Devetopment Bank.
. - - ..
.- - - -
Data lor the two tines shown lor thiS date rellect different benchmark bases lor lorelgners'
hOldln~s 01 selected long-term U.S. securrtles. Figures on the '''51 line arB comparable to those
lor ea lei dates F,gures on the second hne are based In Poa" on a bencomark survey as 01
yearend 1989 and are comparable to those shown lor the ollowing dates.
Note .-Table IS based on Department 01 TreasUlY data and on data reported to tho
Department 01 Treasury by banks, other depoSitory institutions, and brokers In the United
States Da!a correspond genera:\l: to statiStiCS follOWing in thiS section and in the 'Capital
Movements sectIon. Table exclu as Internatlonat Monetary Fund 'holdings 01 dollars' and
hotdm~s 01 U S Treasury letters 01 credit and nonnegotiable noninterest-bearing spacial U.S.
notes aid by other InternallOnal and rBIIlonal organization•.
INTERNATIONAL FINANCIAL STATISTICS
67
TABLE IFS-3.-Nonmarketable U.S. Treasury Bonds and Notes Issued
to Official Institutions and Other Residents of Foreign Countries
On millions of !bllars or dollar equivalent. Source: Office of International Financial Analysis]
Total
(2)
1990 .......•..............
4,491
4,491
3,790
701
1991 .......•..............
4,858
4,858
4,099
759
1992 ......................
4,532
4,532
3,715
817
1993 ......................
5,652
5,652
818
3,949
885
1994· June .................
5,875
5,875
848
4,106
921
July ..................
5,914
5,914
853
4,134
927
Aug..................
5,952
5,952
858
4,161
933
Sept..................
5,990
5,990
863
4,188
939
Oct...................
6,031
6,031
869
4,216
946
Nov.•..•.............
6,069
6,069
874
4,243
952
Dec..................
6,109
6,109
879
4.271
959
1995· Jan. r ................
6,138
6,138
885
4,288
965
Feb...................
6,094
6,1lI4
890
4,233
971
Mar...................
6,135
6,135
895
4,262
978
Apr...•...............
6,174
6,174
900
4,290
984
May ..................
6,210
6,210
906
4,319
985
June .................
6,245
6,245
911
4,343
991
1 ~inning ~ril 1993. includes current value principal and accrued interest of zero-coupon,
~r lI)~nty Treasury bond iSsue to the govemment of Argentina. Face value of issue is
~,685 million.
Includes current value of the followlrqzero-coupon Treasury bond issues 10 the government
of Mexico: beginning March 1988. 2Q-yeer maturity issue. Face value is $2, las millian;
Argentina 1
(3)
Payable in dollars
Mexico'
(4)
Grand total
(1)
End of calendar
year or month
Venezuela'
(5)
tJeginning March 1990. 3D-year rnaturity issue. Face value of issue is $24,026 million.
3 Beginning December 1990. indicates currenlvalue 01 zero-couJlC!l1, 3D-year maturity Treasury
bond issue to the Republic of Venezuela. Face value of issue is $7.162 million.
68
INTERNATIONAL FINANCIAL STATISTICS
TABLE IFS-4.-Trade-Weighted Index of Foreign Currency Value of the Dollar
Index 01 induslrial
country currencies .
Date
Annual Average
(1980 =100) I
1985.......................................................................................................................... .
139.2
1986. ...........................................................................................................................
119.9
1987......................................................................................... ...................................
107.5
1988•.......•....•.•...••...•.......•..••.•.••...••...•......... '., ...•....•.. . •..•. .••..•••... .....••.•.•••...•..••...••• •..•• .
1011.4
1989...................................................................... ......................................................
1990............................................................................................................................
102.8
1991. ...•. ...•.. ..•.. . .. .... .... . ..... ...•. ..... ........••.•..•. .......... ......•••. . ..... •..... .... ........••. .......••... .....
98.0
98.8
1992........................................................................................................................... .
97.2
1993- ............... , ...... " ................. " ............ " .... , .......... _. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .
101.3
1994....................... .....................................................................................................
100.8
End of period
(Dec:. 1980 =100)
1985................................................................................ - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
127.8
1986........................................................................................................................... ,
114.4
1987......................... ...................................................................................................
97.8
1988............................................................................................................................
98.4
1989.... ............................................................... .........................................................
100.0
1990............................... ............................................... ..............................................
94.4
1991........................................................................................................................... .
93.7
1992.... ................ ............................ ..... .............................................. .........................
tal.I
1993.......................... ........... ......................................................... ...................... ........
103.3
1994.......................................................... · ....... ·· .. · ... · ............. ·.· ..... · .. ·........................
• 99.0
1994 • Aug. ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
99.1
Sept. ............................................................................................. '" .............. ........
97.3
Oct................................................. ·· ....... ·· ...... · ..... ·· ...... · .•. ·.........................•.........
96.5
Nov....................................................... · ...... · ... ·......................................•.............•
98.6
Dec................................. · .... · .... ········· .. ·.·······.·.· ....... ···· ....... · .... ·· ... · ... ·.................•..
1995 - Jan.... , ................•... - .... "
• 99.0
'" .................... ........... .......... . ..... .....................................•
• 98.2
Feb..................................... ··· .... ···· .. ·· ..•. ·•······.····.········•· .. ·.•..•...•.........................•..
• 97.3
Mar..................................... · ..... ········· .. ·· .. ·· .. · •.. · ... ·.......................•........................•
• 94.4
Apr..................................... · ......... ·····.•···•··············· ................................••..•••.••..•• ,
• 92.1
May ...................................................•...... '" .......... ...... ...•....... .•......•.. •..•..•........ .•..•
92.0
June ............................... · .. ·····.···········.···.··.·· ... ·.·.·.....................•.........•..............••.
92.7
July ............ - ........... ··························· .............................................................•..•...
93.2
-----------.--_._----------------------------• Each Index covers (a' 22 curranclBS 01 countr.s rep_med In the Organization lor EconomIC
Coope,lIIIon and DevelOpment IOECD) Austreha. Austrl8. Belg.,m:W••mbourg. Canada.
Denmark Frnlantl. Franca. Germany. Greece. leelllnt!. ,reland. l!iIIy. Japan. the NBlherlllnds.
"law Zeaiand NOlWay. F"orlugal. Spa,". SWedan. SWllZllrlllnd. TuillIY. and tha Unllld King·
110m atld Ib) eurr8l1C1es of lour malOt trading economllS outside the OECD Hong Kong. Ko~.
Singapore. and Taiwan Exchanjle railS are drawn lrom me Inllrnatlonal MonetalY Fund S
'Intematlonal F,nanCIal StallstlCS when available
Inctax Includes average annual raIlS as reported ill "International Financial StatI&Iics."
Nota --These ItldIce$ a,e presented 10 provide measures of the ~ Iotei!rl e~
vatue of the dolar that all broader than thOse prOViderJ by single axcnanga rat8levels. TheY
dO not purpon 10 reprasem a guide 10 measunng !he Impact OIIlIlIC/Iange rate I8IIaIs on U.S
2
Interna1lonal transact,on$ TI\8 IndICeS ara COII'IpuUId as geometriC avarges of individual
curranc:y 'avlls with welghlS derived lrom the share of each country's tradli with tha UniIIld
Slates dunng 1982·83.
69
INTRODUCTION: Capital Movements
Treasury collects infonnation about the transference of
financial assets and other portfolio capital movements between the United States and foreigners, and has since 1935.
Commercial banks and other depository institutions. bank
bolding companies, securities broken and dealers, and nonbanking enterprises in the United States file capital movement
reports with district Federal Reserve banks.
Forms and instructions are developed with the cooperation
of other Government agencies and the Federal Reserve System, and in consultation with representatives of banks, securities finns, and nonbanking enterprises. Copies of the reporting
forms and instructions may be obtained from the Office of
International Financial Analysis, Office of the Assistant Secretary for Economic Policy, Department of the Treasury,
Washington, D.C., 20220, or from district Federal Reserve
banks.
In general, information is reported opposite the country or
geographical area where the foreigner is located, as shown on
records of reporting institutions. However, information may
not always reflect the ultimate ownership of assets. Reporting
institutions are not required to go beyond addresses shown on
their records, and so may not be aware of the actual country
of domicile of the ultimate beneficiary.
United States liabilities arising from the deposits of dollars
with foreign banks appear as liabilities to foreign banks,
although the liability of the foreign bank receiving the deposit
may be toforeign official institutiOflS or to residents of another
country.
Transactions with branches or agencies of foreign official
institutions. wherever located, are reported opposite the country that has sovereignty over the institutions. Transactions with
international and regional organizations are not reported opposite any country, but are accounted for in regional groupings
of such organizations. The only exception is infonnation pertaining to the Bank for International Settlements, which is
reported opposite 'Other Europe.'
Banks and other depository institutions, bank holding companies, International Banking Facilities (lBFs), securities br0ken and dealers, and nonbanking entetprises in the United
States must file reports. These enterprises include the
branches, agencies, subsidiaries, and other affIliates in the
Uniled States of foreign banldng and nonbanking finns. Those
with liabilities, claims, or securities transactions below specified exemption levels are exempt from reporting.
Banks and other depository institutions, and some broken
and dealers, file monthly reports covering their dollar liabilities to, and dollar claims on, foreigners in a number of countries. Twice a year, June 30 and December 31, they also report
the same liabilities and claims items to foreigners in countries
not shown separately on the monthly reports. Quarterly reports
are filed for liabilities and claims denominated in foreign
currencies in relation to foreigners. The exemption level applicable to these banking reports is $15 million.
Banks and other depository institutions, securities brokers
and dealers, and other enterprises report monthly their transactions with foreigners in Jong-tenn securities. They must
report securities transactions with foreigners if their aggregate
purchases or their aggregate sales amount to at least $2 million
during the covered month.
Exporters, importen, industrial and conunercial concerns,
financial institutions (other than banks, other depository institutions, and broken), and other nonbanking enterprises must
file reports quarterly if liabilities to, or claims on, unaffiliated
foreigners amount to $10 million or more during the covered
quarter.
Nonbanking enterprises also report each month their U.S.
dollar denominated deposit and certificates of deposit claims
of $10 million or more on banks abroad.
The data in these tables do not cover all types of reported
capital movements between the United States and other countries. The principal exclusions are the intercompany capital
transactions of nonbanking business enterprises in the United
States with their own branches and subsidiaries abroad (own
foreign offices) or with their foreign parent companies, and
capital transactions of the U.S. Government. Consolidated
data on all types of international capital transactions are published by the Department of Commerce in its regular reports
on the United States balance of payments.
• Section I presents liabilities to foreigners reported by
U.S. banks and other depository institutions, as well as brokers
and dealers. Dollar liabilities are reported monthly; those
denominated in foreign currencies are reported quarterly. Respondents report certain of their own liabilities and a wide
range of their custody liabilities to foreigners.
• Seetion n presents claims on foreigners also reported by
U.S. banks and other depository institutions, brokers, and
dealers. Data on bank claims held for their own account are
collected monthly. Information on claims held for their d0mestic customers as well as foreign currency claims, is collected on a quarterly basis only. Maturity data are reported
according to time remaining to maturity. Reporting also covers certain items held by brokers and dealers in the United
States.
• Seetion III contains supplementary data on dollar liabilities to, and dollar claims on, countries not listed separately on
the monthly reports submitted by banks, other depository
institutions, brokers and dealers in the United States. The
supplementary reports are filed semiannually as of the end of
June and December. (Note: Beginning with the September
1994 issue of the "Treasury Bulletin," fonner table CM-III-t,
Dollar aaims on Nonbank Foreigners, will no longer appear.
Former table CM-I11-2, Dollar Liabilities to, and Dollar
Claims on, Foreigners in Countries and Areas Not Regularly
Reported Separately, has been redesignated as table CM-III-t.
This semiannual data series will now appear in each issue of
the "Treasury Bulletin.")
• Section IV shows the liabilities to, and claims on, unaffiliated foreigners by exporters, importers, industrial and commercial concerns, financial institutions (other than banlcs,
other depository institutions, and brokers), and other nonbanking enterprises in the United States. Information does not
include accounts of nonbanking enterprises in the United
States with their own branches and subsidiaries abroad or with
their foreign parent companies. These are reported by business
enterprises to the Department of Commerce on its direct
CAPITAL MOVEMENTS
70
investment forms. Data exclude claims on foreigners held
through banks in the United Stales.
• Section V contains information on transactions in all
types of long-teml domestic and foreign securities with foreigners reported by banks. brokers. and other entities in the
United States. The dala cover transactions executed in the
United States for the accounts of foreigners. and transactions
executed abroad for the accounts of reporting institutions and
their domestic customers. This includes transactions in newly
issued securities as well as transactions in. and redemptions
of. outstanding issues. Also. some transactions classified as
direct investments in the balance of payments accounts may
be included. However. the data do not include nonmarketable
Treasury bonds and notes shown in table IFS-3.
In the case of outstanding securities. the geographical
breakdown of the transactions data does not necessari ly reneet
the ultimate owners of or the original issuers of the securities .
This is because the palh of a security is not tracked prior 10 ils
being purchased from, or after it is sold to. a foreigner in a TIC
reportable transaction. That is, before it enters and afler it
departs the reporting system. ownership of a security may be
transferred between foreigners of different countries. Such
transfers may occur any number of times and are concealed
among the net figures for U.S. transactions opposite individual
countries. Hence, the geographical breakdown shows only the
country of domicile of the foreign buyers and sellers of securities in a particular round of transactions.
SECTION I.--Liabilities to Foreigners Reported by Banks
in the United States
TABLE CM-I-l.--Total Liabilities by Type of Holder
______________________ .~~~ons ~f dollars. Source: Office of Int_e~atlonal FI~_nClal AnalySi.sl
Foreign countries
- - - ----" - - - - - - - - - - - - - -- ----- - ---
_Q~icialinstitutjQ~'
Total
liabil·
lties
(1)
End of
calendar
year or month
Tolal
(2)
Payable
in
dollars
(3)
____
Payable
in
foreign
curren·
des'
(4)
-_._---
_!J!~ ane! other foreigners
Total
(5)
Payable
in
dollars
(6)
Payable
in
foreign
curren·
cies'
(7)
._----_.----._-
International
_____ ~~.!~~iona'-' ___
Payable
in
Payable foreign
in
curren·
Total
dollars
cies'
(8)
(9)
(10)
__ . Iv'Ijl!l1_or!l'!~a __
Total liabilities
to all foreigners
_ __ reported. by!BFs
Payable
in
foreign
Payable
in
curren·
dollars
cies'
(12)
(11)
------
---_._-------- - - - - - - - . - - -
1990 ....... _.......
830,192
119,367
119.367
704.713
634.430
70.283
6,113
5,918
195
315,220
56,613
1991 ...............
831,195
131.088
131,088
690.855
615.997
74,858
9,252
8,981
271
299,179
61,129
713,639
641,346
72,293
9,853
9,350
503
315,697
58,394
1992 ...............
883,055
159,563
159,563
1993r..............
1,003,538
220,908
220,908
771 ,308
693,574
77,734
11,322
10,936
386
316,048
62.669
1994· June r ........
1,078.454
222,907
222,907
842,211
769,874
72,337
13,336
12,657
679
341,374
57,814
July r ........
1.080,874
231,463
231.463
837,628
765,291
72,337
11,783
11,104
679
348,098
57,814
Aug.r .. .-_ ...
1,076.073
222,818
222,818
844,386
772,049
72,337
8,869
8,190
679
344,156
57,814
Sept. r .......
1.089.446
221,075
221,075
856,563
774,107
62,456
11.810
10,923
887
346,370
67.522
Oct.r .....
1.101,003
227,465
227.465
862,434
779,978
82,456
11,104
10,217
887
346,402
67,522
Nov. r.
1.078,674
216,752
216,752
851,594
769,138
82,456
10,328
9,441
887
346,001
67,522
1.106,509
212,301
212,301
885,147
796,227
88.920
9,061
8,506
555
357,967
67,447
1.102,391
207,123
207,123
884,892
795,972
88,920
10.376
9,821
555
356,849
67,447
Feb ........
1.109,567
214,667
214,667
886,054
797,134
88,920
8,846
8,291
555
351,890
67,447
Mar. ..
1.126,149
225,387
225,387
890,147
795,309
94.838
10,615
9,263
1,352
350,011
73,680
Apr...
1.132,445
231,765
231,765
890,638
795.800
94,838
10,042
8.690
1,352
338,881
73,680
May p ......
1,138.926
239,308
239.308
889,756
794.918
94,838
9,862
8,510
1,352
347.237
73,680
June p ......
1.150.910
245.990
245,990
894,581
799,743
94,838
10,339
8,987
1,352
356,724
73.680
Dec. r.
1995· Jan r. .
1
2
Includes Bank for tnternatlonal
SeUlements
Pronclpally the InternatIonal Bank for Reconstruction and Development and the Inter·
Development Bank.
Data as of preceding Quarter tor non-Quarter·end months.
~mencan
CAPITAL MOVEMENTS
71
TABLE CM-I-2.--Total Liabilities by Type, Payable in Dollars
Part A.--Foreign Countries
[In millions of dollars. Source: Office of International Financial Analyslsj
Official institutions 1
u.s.
Banks
U.S.
Treasury Other
bills and liacerli!biliicates
ties'
(9)
(8)
Other foreigners
u.s.
Endo!
calendar
year or month
Total
foreign
countries
(1)
1990 .... _..........
1991 ...............
1992 ...............
1993 r ..............
753,797
747,085
800,909
914,482
1,940
2,626
1,302
1,601
14,405 79,424
16,504 92,692
17,939 104,596
21,654 151,100
23,597
19,266
35,726
46,553
10,053 88,541
8,648 82,857
10,170 90,296
9,719 105,192
10,669 109,874 321,667
7,471
94,190 329,099
11,087 104,773 330,994
10,712 148,206 318,379
9,710
9,004
10,310
10,238
64,086
57,574
48,936
45,452
6,339
8,841
10,053
10,652
13,490
18,313
24,727
35,024
1994 - June r ......... 992,781
July r ......... 996,754
Aug. r ......... 994,867
Septr ........ 995,182
Ocl. r ......... 1,007,443
Nov. r. ........ 985,690
Dec. r ......... 1,008,528
1995 - Jan. r ......... 1,003,095
Feb ... ........ 1,011,801
MaL .. ........ 1,020,696
Apr... ....... _1,027,565
Mayp. ........ 1,034,226
June p . ... .. . . 1,045,733
2,029
1,472
1,232
1,691
2,028
1,662
1,564
1,59B
1,587
1,705
1,485
1,575
1,401
24,958
27,522
25,776
26,961
23,847
20,661
23,211
22,673
25,384
23,899
25,792
27,486
27,412
54,342
55,985
52,170
53,972
53,551
51,187
47,956
49,838
53,355
5B,067
58,071
55,672
62,660
10,622
10,093
9,568
10,047
11,023
11,259
10,628
10,243
10,954
10,788
10,667
11,365
10,451
10,842
10,147
12,268
10,975
10,783
11,792
11,218
10,992
12,328
15,723
15,717
14,437
15,022
10,136
10,226
10,025
11,251
11,m
10,978
11,152
11,559
11,482
10,132
10,550
10,552
10,166
47,063
47,979
48,804
46,653
47,837
46,854
48,494
49,422
49,429
48,763
51,841
52,073
51,977
16,318
12,600
14,107
14,362
14,047
13,541
11,756
12,384
13,277
12,385
12,643
12,524
12,006
41,788
38,808
40,377
47,021
45,619
45,657
43,098
44,425
44,351
38,749
39,701
40,016
39,841
Treasury
bills and
Deposits
certi!Demand Time' icates
(2)
(4)
(3)
Other
liabilities'
(5)
Deposits
Demand Time'
(6)
(7)
141,578
146,484
143,640
138,451
148,039
143,222
139,570
133,014
134,341
141,716
146,417
154,575
154,517
108,366
106,888
107,110
101,430
106,204
105,998
111,460
112,176
107,429
107,657
99,079
102,260
110,350
163,071
167,693
161,768
160,346
162,215
159,948
151,675
156,522
157,814
154,239
162,529
163,246
153,740
To own
foreign
offices
(10)
361,668
360,857
368,022
372,022
370,773
361,111
396,746
388,247
390,070
396,873
393,073
388,425
396,190
Olher
Deposits
Demand Time'
(11)
(12)
Treasury
bills and
certlicates
(13)
liabilities'
(14)
PART B.--Nonmonetary International and Regional Organizations
[In millions of dollars. Source: Office of International Financial Analysisj
Total
(1)
Demand
deposits
(2)
Time
deposits'
(3)
U.S. Treasury
bills and
certificates
(4)
........................
................
..... . ..... ......
...............
5,918
8,981
9,350
10,936
36
43
46
15
1,050
2,714
3,214
2,760
364
1,730
1,908
4,275
4,469
4,494
4,182
3,866
1994-June r ..........
.1Jly r ..................
Aug. r ..................
Sept.r .................
Oct. r ..................
Nov. r ..................
Dec. r ..................
1995 - Jan. r ..................
Feb....................
Mar....................
Apr....................
12,657
11,104
8,190
10,923
10,217
9,441
B,506
9,821
B,291
9,263
B,690
B,510
B,987
281
429
431
428
83
35
29
24
35
31
214
3,373
3,669
2,872
3,189
3,095
2,917
3,198
3,715
3,484
3,899
3,954
3,491
4,329
2,825
1,082
836
767
1,572
501
281
280
407
314
763
510
312
6,178
5,924
4,051
6,539
5,467
5,988
4,996
5,802
4,365
5,019
3,759
4,475
4,257
End of
calendar
year or month
1990
1991
1992
1993
Mayp ..................
June p .................
1 Includes Bank for International Settlements.
2 Time depOSits eXClude negotiable time certificates
liabilITies."
of deposit, which are included in "Other
34
89
Other
liabilities'
(5)
Note.--Nonmonetary international and regional organizations include principally the International Bank for Reconstruction and Development and the Inter-American Development Bank.
CAPITAL MOVEMENTS
72
TABLE CM-I-3.--Total Liabilities by Country
-
------_.
__ .
._C~untl}'_ ...___
Europe:
Austria .....................
Belgium-Luxembourg ..........
Bulgaria ....................
Czechoslovakia ..............
Denmark....................
Finland .....................
France .....................
Germany ...................
Greece .....................
Hungary ....................
Ireland .....................
Italy......•............•....
Netherlands .................
NOIWay .....................
Poland .....................
PorIugaI ....................
Romania ...........•........
Spain ......................
Sweden ....................
Switzerland..................
Turkey .....................
United Kingdom ..............
U.S.S.R.' ...................
Yugoslavia' .................
Other Europe ................
Total Europe ...............
Canada ......................
Latin America and Caribbean:
Argentina ...................
Bahamas ...................
Bermuda ...............•.•..
Brazn ......................
Brilish West Indies ............
Chile .......................
CoIOITbia ...................
Cuba .................. , ....
Ecuador ........ ____ ........
Guatemala __ .............. -Jamaica ....................
Mexico ................... -Netherlands Antilles ...... __ ...
Panama ____ ...... __ . ____ ...
Peru ..................... -Trini(iad and Tobago ..........
Uruguay __ ....... -- .. __ .....
Venezuela ..................
Other Latin America
and Caribbean .............
Total Latin America
and caribbean ....... -- ...
See lootnotes at end of table
IPOSiIKlll al end 01 period in millions 01 doUars Soyrce: OffICe 01 International Financial Analysis)
1992
1.809
23.781
419
sao
3,111
1,546
47,994
24,616
920
In
2,181
12,211
9,023
3.451
2,191
2.484
117
10,307
3.093
43,144
2,958
125.388
m
504
24,000
346,582
23,467
Calendar year
1993 r
2,203
31,558
99
817
4.650
2::Jj7
48,066
33,352
1,527
1.491
2,321
14,537
17,783
3,071
2.292
3,488
125
21,356
2,643
45,747
3,584
150,851
2,532
571
26,523
423,754
21,567
9,633
83,167
7,314
5.676
159.240
3,115
4,628
3
1,035
1,400
379
19,960
5.980
4,319
1,116
306
2,027
12,183
14,591
74,824
8,096
5,384
199,830
3.314
3.220
33
899
1,224
1995
1994r
Feb.
Mar.
Apr.
4,169
26.351
611
953
3.037
1,568
53,415
32,416
1,402
1.095
1.986
13,415
17,949
2,338
2,316
2,997
529
15,592
3,155
43,282
3,378
186,909
2,714
245
20,956
4,541
26.687
561
388
2,224
1,886
52,758
32,738
2,074
BB5
1.915
14,554
17,117
2.147
2.967
4.158
350
12.043
2,309
41.501
2,738
185,970
2,642
258
20,945
436,356
28,637
4,845
28,057
4,863
26,984
956
442,n8
26,681
17,269
11,956
99.753
8,761
3,549
211
20,951
432,591
28,598
941
2,819
2,146
45.802
34.143
2.204
1,085
2,608
12,618
14,242
1,375
3,611
3.103
278
11,450
1,892
43,190
3.714
176,061
5,091
222
17,651
419.049
30,127
505
1,796
13.180
6,215
6,379
6,726
6,763
6,764
432,320
433.701
442,738
442.347
455,784
28,373
5,2n
3,887
963
396
1.664
13,334
5,939
5,931
6,086
327,420
371,667
433,705
1.0n
1.306
4,167
2,815
256
12,134
3,435
49,315
3,346
162,724
7,257
220
16,283
424,084
30,801
1,109
435
17.319
4,648
4,911
942
515
1,972
12,678
241,290
3,374
4,096
5
1,522
1,094
476
16,907
5,026
4,505
905
512
1,662
13,488
10,229
96,093
9,019
13,234
252,100
3.492
3,645
6
4.691
25215
1.010
914
2,684
1,573
52.967
39,038
2,374
1,343
2,280
13,574
13,143
15,733
251,481
3,004
3.479
5
1,061
1.086
555
18.336
6,585
5,103
1.025
519
2,147
12,964
10.m
10,053
101.162
9,002
10,980
244,832
3,633
3.691
5
1,128
4,796
29,844
912
942
3,063
1,826
48299
37,629
2208
1.053
2,524
13,016
16,320
1,290
3.982
3,023
218
11.418
1.536
41,918
3.278
173.050
7.122
229
18,153
427.649 29.295
10,948
97,705
7,360
18.370
261,148
3,534
3,323
5
1,100
1,145
462
19,321
4,562
4,409
1,008
662
2,072
11,796
104,604
8,674
9,285
237,532
3,161
4,638
13
B84
1,136
541
12.380
5,061
4,766
912
624
1,646
14,493
425
629
1.011
2,648
1.340
48.692
33.966
2.273
927
1,910
11,887
17,481
2.067
3.678
2.973
268
13.266
2.565
41,287
2,603
183,507
.~Y.P. '_. _Junep
504
15,823
4.585
4.462
904
1,065
10,443
93,315
8,743
CAPITAL MOVEMENTS
73
TABLE CM-I-3.--Total Liabilities by Country, con.
[Position at end of period in millions of dollars. Source: Office of International Financial AnalysIs]
Calendar year
Count!}'
1995
1992
1993r
1994 r
Feb.
Mar.
A~r.
MaH
June p
10,579
Asia:
China:
Mainland ........ . . . . . . . . . .
3,275
4,011
10,066
15,661
12,017
12,138
9,459
Taiwan ...................
8,460
10,684
9,952
10,068
10,173
9,782
9,339
9,897
Hong Kong ..................
20,639
17,723
17,939
18,924
20,506
20,687
23,605
2,358
2,132
2,198
1,721
23,594
2,109
2,657
2,144
5,414
5,334
India .......................
1,404
1,123
2,340
2,121
Indonesia ...................
1,494
2,000
1,610
1,980
Israel ......................
3,785
4,453
5,158
4,956
Japan ......................
77,735
79,237
88,565
87,509
5,006
105,563
112,478
110,897
4,576
111,065
Korea ......................
3,367
4,963
5,226
4,277
4,458
4,846
5,135
5,097
417
469
503
4B7
539
465
485
475
1,775
1,816
1,704
1,668
1,904
2,054
2,043
1,878
Lebanon .............
Malaysia ..............
1,946
Pakistan ..............
989
1,216
1,309
908
1,446
1,339
1,415
1,747
Philippines ............
2,294
2,041
2,371
2,306
2,266
Singapore ........ , ....
10,566
245
8,746
2,722
8,525
12,045
10,280
11,541
2,739
10,255
2,548
10,140
365
608
697
652
691
681
719
5,587
6,475
9,915
9,571
21,469
2,104
165,605
6,155
15,945
2,783
163,730
15,528
3,314
181,544
14,988
3,406
191,961
15,596
3,347
207,854
10,423
15,810
3,220
217,075
11,602
15,719
3,202
216,513
11,492
16,951
2,956
217,967
Egypt ......................
2,475
2,218
1,673
1,836
1,782
2,103
2,046
2,144
Ghana .....................
Liberia .....................
107
153
243
251
224
816
262
318
246
372
233
323
360
340
356
355
Morocco ....................
80
100
97
73
70
66
73
90
South Africa .................
Zaire .......................
191
19
451
12
440
714
9
407
10
9
409
12
550
10
604
18
Oil-exporting countries 4 • • • • • • • •
1,362
1,328
5,934
1,308
1,612
6,670
1,381
2,222
6,578
1,160
2,204
6,270
1,642
2,062
6,885
1,371
2,742
7,286
1,346
3,466
B,098
1,461
3,184
8,080
3,068
1,126
4,194
3,919
909
4,828
5,247
915
6,162
4,457
700
5,157
5,122
783
5,905
5,010
1,11B
6,128
4,354
808
5,162
3,042
813
3,855
Totalforeign countries ......
International and regional:
873,202
992,216
1,097,448
1,100,721
1,115,534
1,122,403
1.129,064
1,140,571
International. ................
7,676
7,179
7,807
7,508
8,973
8,034
7,412
European regional ............
80
1,676
51
53
65
68
138
94
6,216
146
3,276
274
798
767
1,047
1,137
169
175
1.538
116
1,275
187
276
43
308
50
504
54
656
46
561
42
Syria .......................
Thailand ....................
Oil·exporting countries 3 ••••••.•
Ot~er
Asia ..................
Total Asia .................
Africa:
Other Africa .................
Total Africa ................
countries:
Ot~er
Australia ....................
All other ....................
Total other countries .........
Latin American regional ........
97
238
503
39
194
170
39
Total international
and regional. .............
9,853
11.322
9,061
8,846
10,615
10,042
9,862
10,339
Grand total. ..............
883,055
1,003,538
1,106,509
1,109,567
1,126,149
1,132,445
1,138,926
1,150,910
Asian regional ...............
African regional ..............
183
Middle Eastern regional ........
, Beginning with series for December 1992 forward. data are for Russia only. Data for all other
republics of the former U.S.S.A. are reported under 'Other Europe."
Z Beginning with series for December 1992 forward. dala for the former Yugoslav republics of
Bosnia and Herzegovina. Croatia, and Slovenia are reported uflder "Other Europe.'
3 Includes Bahrain. Iran. Iraq, Kuwait. Oman. Qatar, Saudi Arabia. and United Arab Emirates
(Trueial States).
4 Includes Algeria, Gabon, Libya. and Nigeria.
CAPITAL MOVEMENTS
74
TABLE CM-I-4.--Total Liabilities by Type and Country, June 30, 1995, Preliminary
JPOSlllon In m.illoons 01 dollars Source Office 01 Inlernallonal FinanCIal Analysisl
Uabililies payable in dollars
To foreign official
institutions and
unaffiliated foreign banks
Total liabilities
Country
Total
(1)
Payable
Totals
in
Deposits
Payable foreign Banks' CustOdy
in
curren· own lia· liabiliities Demand Time'
doRars cies I bilities
(5)
(6)
(7)
(2)
(3)
(4)
Europe:
Austria . . . . .. .. . . . .. .
4,691
3.858
Belgium·Luxembourg .. . 25,215 21.044
1,010
1,010
Bulgaria ............ .
Czechoslo~akia . . . . . ..
914
912
Denmark ............ .
2,684
2,432
Finland ............ ..
1,573
1,456
France. . .......... . 52,987 45,595
Germany ........ " .. 39.038 33,348
Greece ............. .
2.374
2,365
Hungary ............ .
1,343
1,343
Ireland ............. .
2,280
2,141
Italy................ . 13,574 10.373
13,143 11,446
Nethe~ands .. .. ..... .
Norway ............. .
1,306
1,305
Poland .. .. .. .. .. ... .
4,167
4,105
Portugal . .. .. . .. .. .. .
2.815
2,652
Romania ............ .
256
256
7,257
7,177
Russia' ............. .
Spain .............. . 12,134 10,543
Sweden ............ .
3,435 3,344
Switzerland. . . . . . .... . 49,315 47.383
Turkey ............. .
3,346
3.256
United Kingdom ...... . 162,724 139,125
Yugoslavia' ...... .
220
220
16,2B3 15.489
Other Europe ... .
-42-4,O-B4-37-2,-178
Total Europe ..
833
4,171
2
252
117
7,392
5,690
9
139
3,201
1,697
1
62
163
80
1.591
91
1,932
90
23,599
794
51.906
1,282
17,892
156
247
2,016
1,022
33,491
20,009
1.133
135
1.503
9,080
7,952
781
2.728
835
230
2,412
8,626
3,128
17,931
1,337
122,470
219
10,471
Uabilities to
all other foreigners
Short·
term U.S.
Treasury 01her
obliga- liabilities
tions'
(9)
(B)
2.576
3,152
854
665
416
434
12,104
13,339
1,232
1,208
638
1,293
3,494
524
1,377
1,817
26
4.765
1,917
216
29,452
1,919
16,655
1
5,018
60
615
2,513
181 10,693
2,125
21
11
853
32
65
665
21
328
29
34
96
355
353 15,394 10,161
418
5,268 13.121
61
298
1,206
41
862
78
305
290
343
4,941
927
84
3,106
1,097
58
27
198
34
217
1,375
50
399
l,nO
14
60
25
223
906
4,751
197
3,935
1,826
149
195
139
509
3,280 26,648
82
541
1,893
757 31,935
6,663
13
74
113
4,389
3,338
267,086 105,09-2--3-,92-6-8-7-,078 82,830
[,ab,l·
itiesto
banks'
own
Deposits
lorelgn
offices Demand Time
(10)
(11)
(12)
305
273
2,778
4,221
lIB
99
17
1,638
224
429
517
5,662 11,575
9,324
4,031
404
53
431
5
129
333
2,342
1,132
2,549
3,288
804
56
2,229
233
112
173
73
83
1.221
21
2,873
553
713 2.045
4,763 10,189
504
169
16,837 69,896
107
6,486
945
62,930 110.032
15
154
1
1
18
10
152
209
57
2
50
149
84
72
6
19
16
85
13
167
14
766
4
20
l
52
267
6
7
13
12
393
410
258
2
149
326
173
62
8
77
1
30
734
46
709
38
888
16
130
Short·
Negotiterm U.S. Other able CDs
Treasury lia- held for
obligabilall 'or·
tions'
ities eigners
(13)
(14)
(15)
---
24
122
1
503
43
87
11
26
161
3
1,862
480
17
125
78
400
69
97
18
665
710
195
31
180
400
84
6
2
6
22
1
46
10
1
49
15
825
8
2,309
B
291
29
293
7
9,074
6
32
4
15
51
1,003
36
Sa<> footnotes at end 0' table
266
40
26
257
124
106
38
379
4,988
287
10,136
8.120
311
947
1
1
84
65
44
179
53
95
43
24
89
94
73
52
74
1,097
143
146
10
104
144
1,521
308
1.010
1.936
29.543
3,466
230
666
254
73
139
400
1,050
619
12,981 74,643
1,650
166
2,530
541
86,861 141,153
1,193
117
260
60
2
180
127
44
26
60
1
120
140
13
5,081
3,464
1,020
8
209
1,309
196
1,363
127
23
210
56
30
361
516
en
469
278
677
659
36
528
7
14
3,804
1
501
2,08""4--=-4,~80~7"'-·4,""32~4~1·4,T.16""7-6"",9""4·1
: :. -,]!~1-29.g37- (564 2~:4a~i5-j"::"'''3:6~7-''· 3-:3814.066-=n~921fs16e2
Canada ......... .
Lalin America
and Caribbean:
10,948 10.873
75
7,139
3,734
Argentina ......... '"
Bahamas .......... .. 97,705 96.913
792 83,477 13,436
Bermuda .......... '"
7,360
7.156
204
3,766
3,390
Brazil .............. . 18,370 18,250
120 16,168
2.082
British West Indies .... . 261,148 252,155 8,993 169,786 82.369
Chile ............. '"
3.534 3,488
46 3,064
424
3,323
3,276
47
2,706
Colombia ...... .
570
Cuba .......... .
5
5
5
1.190
1,179
11
963
Ecuador .. " .. ..
216
1,145
1,130
15
1.018
112
Gualemala .... .
462
449
13
321
Jamaica .
128
19.321 19.248
73 12.663 6,585
Mexico ............ .
4.562
3,990
572
3,439
Netherlands Antilles .. .
551
101
3,848
4.409
4,308
Panama . .. . . .. .. . ..
460
1,008
997
11
969
Peru ............. .
28
662
661
1
544
Tnnidad and Tobago ..
117
42
1,902
2,072
2.030
Uruguay ............ .
128
11,796 11.248
548
9.935
1,313
Venezuela ... " ... .
Other Latin America
6.764
6,703
61
5.713
990
and Caribbean .....
Total Latin America
455.784 444.059 11,725 327,426 116.633
and Caribbean ....
Memo·
randum
589
95
105
778
241
217
231
4,205
1,396
354
3,315
3,389
1,278
1,265
148
1,256
773
219
1,473
55
26
154
145
16
906
69
152
77
17
91
1,058
444
735
34
6,540
960
1,922
630
207
705
6,525
10
21
.. 3,:601=-=~30
151
1,284
3,129
220
10,721
72
49
1
63
25
47
482
172
184
230
194
5
3
470
345
168
5
7
46
197
491
894
266
82
36
48
229
2
340
20
15
48
45
102
10
11
25
101
248
594
2.935
107
165
58
12.227 112,549 222,170
5,535
36,839
5,331
17 ,929
2,086
CAPITAL MOVEMENTS
75
TABLE CM-I-4.--Total Liabilities by Type and Country, June 30,1995, Preliminary, con.
[Position in milions 01 dollars. Source: Office 01 International Financial Analysis]
Liabilities payable in dollars
To foreign official
institutions and
unaffiliated foreign banks
Totalliabillties
Country
Asia:
China:
Mainland ..........
Taiwan ..•.........
Hong Kong ..........
India ....... , .......
Indonesia ...........
Israel. ..............
Japan ..............
Korea ..............
Lebanon ............
Malaysia ............
Pakistan ............
PhiHppines ..........
Singapore ...........
Syria ...............
Thailand ............
Other Asia...........
Total Asia .........
Tolal
(1)
10,579
9,897
23,594
2,109
2,144
4,576
111,065
5,097
475
1,878
1,747
2,548
10,140
719
11,492
19,907
217,967
liabHitiesto
aU other foreigners
Payable
Totals
Shortin
term U.S.
Payable foreign Banks' Custody
Deposits
Treasury Other
in
curren- own lia- liabilobliga- liabildollars cies 1 bilities
ities Demand Time' tions'
ities
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
10,579
3,923 6,656
9,745
152 6,517 3,228
22,976
618 16,929 6,047
2,105
4
822 1,283
2,119
25 1,541
578
4.573
3 1.544 3,029
83,348 27,717 32,999 50,349
4,996
101 4,235
761
475
462
13
1,582
296 1,234
348
1,747
1,276
471
2,539
9 1,318 1,221
9,700
440 8,788
912
719
717
2
7
11.485
786 10,699
19.825
82 16,529 3,296
188,513 29,454 99,620 88,B93
Memorandum
Uabilities to
ShortNegotibanks'
lerm U.S. Other able CDs
own
Deposits
Treasury lia- hek! for
foreign
obligabilall foroffices Demand Time' lions 3
ities ei!;'lers
(10)
(11)
(12)
(13)
(14)
(15)
225
675 1,009 7,915
402
249 2,257 2,986 2,617
298
498 1,122 2,470 3,620 11,520
178
25
970
381
302
187
533
512
122
289
130
38 2,417
686
809
842 6,778 43,929 7,647 19,977
220
479
358
925 1,704
28
91
242
7
132
207
331
335
246
78
106
299
448
744
199
105
965
540
73
560 2,574
990 4,243
437
181
209
302
249
42 10,039
848
212
694 1,816 2,578 4,555 9.182
4,650 16,646 69,045 32,839 50,008
18
138
315
53
45
54
435
48
26
23
19
112
81
5
27
227
1,626
278
1,104
2,586
85
427
392
563
1,243
68
307
45
495
293
20
65
497
8,468
7
24
96
5
33
1,014
9
7
8
231
2
2
131
1,569
50
72
749
106
4
14
2.163
10
6
1
12
89
1,039
7
7
236
299
13
2
8
42
291
1
24
11
1
145
3,662
305
309
2,354
Africa:
Egypt ..............
Ghana ..............
Uberia ....•.........
Morocco ............
South Africa .........
Zaire ...............
Other Africa .........
Tolal Africa ........
2,144
224
355
90
604
lB
4,645
8,080
2,143
224
343
90
596
18
4,598
8,012
12
8
47
68
885
183
214
B7
391
17
4,101
5,878
1,258
41
129
71
26
3
13
67
205
1
497
2,134
229
33
1,176
40
1
200
423
67
150
45
58
274
5
25
6
549
732
457
720
476
1,893
17
5
1,323
2,145
6
1,435
1,641
6
15
5
143
216
71
7
184
4
35
194
495
69
1
1
B
79
6
1
64
3
4
61
13
91
4
72
4
1
2
Other countries:
Australia ............
2,944
119
3,042
175
320
97 1,543
310
98 2,769
157
87
15
5
306
328
35
19
66
85
100
813
790
23
636
154
56
16
All other ............
85
16
Tolal other
1,871
3,734
121
3,405
3,855
329
355
138
163
213
187
21
395
391
31
countries ........
Total foreign
countries ....... 1.140.571 1,045.733 94.838 724,898 320.835 11,852 137,762 169,539 216,400 396,190 10,166 51,977 12,006 39,841 11,514
Intemational
and regional:
Intermtional .........
243 3,442
7,335
244
78 3.571
8,216
881 7,091
4
21
European regional ., ..
90
148
115
33
33
148
191
4
471
6
609
Lalin American regional
804
798
1,275
1
90
6
25
Asian regional. .......
6
91
97
97
512
2
17
African regional .......
131
430
30
561
561
42
42
42
42
Middle Eastern regional
Total international
4,329
25
89
312 4,256
1
1,352
8,183
804
8,987
10,339
and regional. ...•.
Grand total. ...... 1,150,910 1,054,720 96,190 733,081 321,639 11,941 142,091 169,851 220,656 396.190 10,166 51,977 12,006 39,842 11,539
1 These data as of Mar. 31, 1995.
2 Excludes negotiable time certificates of deposit. which are included in 'Other liabilities."
3 U.S. Treasury bUls and certificates held in custody for the account 01 oi~exporting countries
in 'Other fJ,B,a' and "Other Africa' amount to $1,343 mWIion.
4 Beginning with saries for December 1992 forward, data lor all other republics of the former
U.S.S.R. are reported under "Other Europe.'
5 Beginning with saries lor December 1992 forward. data for the lormer Yugoslav republics 01
Bosnia and Herzegovina. Croatia, and SloVenia are reported under 'Other Europe.'
76
CAPITAL MOVEMENTS
CHART CM-A.--U.S. Liabilities to Foreigners
Reported by U.S. Banks, Brokers, and Dealers
with Respect to Selected Countries
(In billions of dollars)
400~----------------------------------------------,
o
o
1991
1992
1993
United Kingdom
I11III All other Europe
_
All other Asia
Japan
1994
June 1995
Caribbean banking centers
_
All other countries
o
_ _ _ _ _ _ _ _----'--'[In millions 01 dollars)
_ _ Country
Uniled Kingdom ...................... , ...
All other Europe .................. , . . . . . . .
Caritbean banking centers' . . . . . . . . . . . . . . . .
Japan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All other Asia ........................ , .. ,
Subtotal. . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
All other countries. . . . . . . . . . . . . . . . . . . . . . ..
Grand total ................... " .. " ,.
. _ _ _.1.9Jl______------'--"992_ _ __ J~ ____ 1994 -----_
June 1995...
113,920
125,388
150,851
186,909
162,724
170,505
221,194
272,903
255,869
261,360
284,480
260,020
291,914
36M37
375,184
71.BB8
77,735
79,237
88,565
111,065
76,676
87.870
84,493
92.979
106,902
___--.-:.7__
17~,4..:..:69_____7
__7-=:2,. :. :20__
7 _ ____=.:..='_=__=_
879,398 _ _~~~_~:..:..:..::=__
984,959
1,017,235
124,140
121,550
_ _--...11..-3:-.,72""6,---_---;'''''0.--c,84..--;:-8--~~~--:;-7,:;-='=::";----'-';~~
133,675
831.195
883,055
1.003.538
1,106,509
1,150,910
========------:-===========,======,--::,-,-----",=======
-------------------------------------------1 Includes Bahamas. Bermuda. British Wesllndies. Netherlands Antilles. and Panama_
U.S. banking liabilities to foreigners, excluding
liabilities represented by long-tenn securities, are
highly concentrated in international financial centers. The chart and table show that more than twothirds of U.s. liabilities are reported opposite the
United Kingdom. the rest of Europe, and, most
notably. the offshore banking centers in the Caribbean. Also significant are the U.S. liabilities to
foreigners reported against Japan and the rest of
Asia_ The allocation of liabilities among the areas
shown has remained largely unchanged since 1991.
Total U.S. liabilities to foreigners have expanded steadily over the period shown. Liabilities
to specific areas, while following a general upward
trend, exhibited varying patterns and magnitudes of
growth. As of June 1995, U.S. liabilities had risen
markedly in percentage terms for all areas shown.
Liabilities opposite other Europe and the Caribbean
banking centers grew most heavily in absolute
tenus, settling at levels $90.9 billion and $90.7
billion higher, respectively. than 1991 positions_
Compared with yearend 1994, U.S. liabilities to all
areas showed continued expansion as of June 1995.
with the exception of the United Kingdom. which
was down $24.2 billion.
CAPITAL MOVEMENTS
77
SECTION II.--Claims on Foreigners Reported by Banks in the United States
TABLE CM-II-l.--Total Claims by Type
(POsition at end 01 period In millions 01 dollars, Source: Office of International Financial Analysis]
Type of claim
Calendar year
1992
1994
1993
Sept.
Dec. r
Mar.r
June r
Sept. r
Dec.
~
Mar. p
Total claims ..................•.....
626,726
580,751
606,454
609,600
603,934
604,474
628,131
655,666
Payable in dollars ..................
559,495
519,121
538,471
534,979
540,360
533,661
556,191
571,711
Banks' own claims on foreigners ....
499,437
477,691
484,689
477,539
481,581
477,274
480,962
489,877
Foreign public borrowers .........
31,367
31,801
29,095
25,578
21,432
24,934
23,470
23,712
Deposits ....................
61,550
44,870
4B,841
45,900
51,616
51,423
59,065
53,178
Other ......................
47,792
51,363
51,189
51,422
51,157
49,784
51,797
51,551
Own foreign offices ...............
303,991
287,239
284,310
279,119
290,658
283,326
283,135
292,153
All other foreigners ...............
54,737
62,418
71,254
75,520
66,718
67,807
63,495
69,283
Claims of banks' domestic
customers ............. , , .... ,
60,058
41,430
53,782
57,440
58,779
56,387
75,229
81,834
Deposits ........ ,....... ....
15,452
9,343
21,111
24,009
24,758
25,225
36,190
36,528
Negotiable and readily transferable
instruments. , ....... , , ..... '
31,474
18,577
18,991
19,757
20,157
17,810
25,731
30,823
Collections and other. . . . , , . . . . . ,
13,132
13,510
13,680
13,674
13,864
13,352
13,308
14,483
Payable in foreign currencies. , .......
67,231
61,630
67,983
74,621
63,574
70,813
71,940
83,955
Banks' own claims on foreigners .. ' .
62,799
59,136
60,663
67,875
56,840
63,446
59,711
72,468
Claims of banks' domeslic
customers ....................
4,432
2,494
7,320
6,746
6,734
7,367
12,229
11,487
Claims reported by IBFs ... , .... , . , ..
277,022
241,812
236,839
240,925
238,593
242,515
252,351
255,896
Payable in dollars ............ , " .
231,082
197,701
194,570
191,833
199,599
196,816
211,454
206,103
Payable in foreign currencies •....•.
45,940
44,111
42,269
49,092
38,994
45,697
40,697
49,793
Customer liability on acceptances .....
8,655
8,190
7,829
7,643
7,435
7,451
8,313
8,393
On foreign public borrowers. . . • . . ....
17,813
21,253
17,765
16,224
13,244
17,370
15,530
15,739
On all other unaffiliated foreigners .. , ..
145,512
140,790
152,369
153,734
151,716
149,901
156,419
153,343
On foreign public borrowers ........•.
13,266
10,341
10,809
9,237
8,053
7,385
7,697
7,694
On all other unaffiliated foreigners .....
18,528
17,305
18,901
18,946
17,764
19,317
17,941
20,634
Unaffiliated foreign banks:
Memoranda:
Claims with remaining
maturity of 1 year or less:
Claims with remaining
maturity of more tlian 1 year:
CAPITAL MOVEMENTS
78
TABLE CM-I1-2.--Total Claims by Country
(PoSIlIOIl at end 0' e!!"od ,~ ,",noons 0' dollars Source Offoee oIlntetnal,onai Fonanaal AnalysJsl
Calendar xear
1992
Country
Eurql8:
AuSlna ......... . . . . . . . . . . . .
Belglum-luxembourg ...........
Bulgaria .....................
Czechoslovakia ...............
Denmark.....................
Finland ......................
France ... " .................
Germany ....................
Greece ......................
Hungary .....................
Ireland ......................
Italy.........................
Netherlands ..................
Norway ......................
Poland ......................
Portugal. ....................
879
9,513
24
24
1,234
1,887
20,014
9,262
1.254
69
733
12,741
3.m
381
427
664
Sept.
816
8.999
40
96
897
1,046
14,421
11,289
1.157
46
486
12.829
3.912
878
419
1,184
47
Romania .....................
69
3,707
4.689
Spain .......................
5.588
Sweden .....................
6.426
8,597
Switzerland ...................
9.369
3,368
Turkey ......................
3.010
90,388
SO.I56
United Kingdom ...............
2,m
3.317
U.S.S.R. I ...................
YtJgOSlavia 2 .................
604
560
Other Europe ................. __ .__ .. J......~____ ~5
180,813
165.308
Total Europe ................
23.976
19,480
Canada .......................
latin America and Caribbean:
Argentina ....................
Bahamas ....................
Bermuda.....................
Braz~ .......................
British West Indies .............
Chile ........................
Colombia ....................
Cuba ........................
Ecuador .....................
Guatemala ...................
Jamaica .....................
Mexico ......................
Netherlands Antilles ............
Panama .....................
Peru ........................
Tnn/dad and Tobago ...........
Uruguay .....................
Venezuela .... ....... ......
Other Labn Amenca
and Caribbean ..............
TOlal Lahn America
and Caribbean .............
,
See 100lnOl15 al end 01 lable
1994
1993
Dec.r
729
8,845
68
135
1,049
822
16.232
11,218
1.574
46
Mar. r
724
538
405
1,179
1.228
355
807
1.401
105
3,140
4,894
10,582
2,773
79,468
1,419
269
789
168.159
918
931
166,620
29,226
25,181
4,807
65,287
8,603
13.952
110,203
3.896
3.422
5,653
64,884
6.503
12,358
118,936
3,856
3,726
5,731
63,885
750
26,202
4,536
3.662
3.161
966
290
167
18.005
1,457
4.824
753
274
974
3.388
267
191
17.863
3.222
2,578
644
444
968
3,661
745
306
205
20.610
2.769
2.962
682
496
993
4.050
771
307
167
20,677
3.456
2,525
821
438
1.285
2.032
242.254
238.176
118.046
BOO
64.603
8.231
12,670
113.869
3.835
3,545
996
9.789
66
177
813
778
17,888
11,163
1.388
31
666
11.016
5,452
792
463
1,207
112
3,418
4,242
12,813
2,880
79,141
1.724
5,666
11,205
122,600
3,784
3,837
1,133
10.015
7
Mar.p
1,485
1,003
18,281
12,712
1.094
41
556
10,011
5,110
4,848
63.078
5,560
11.973
112,669
4,071
3,307
5.178
62.416
5.938
11.470
Dec.
1,068
11,132
7
82
1,240
852
21,563
14.469
1,103
143
450
10,309
5,930
1,534
25,482
346
1~
Sept. r
806
9.615
63
96
925
686
19,932
12,454
1.126
33
514
8,862
5,008
880
8,459
90
154
870
85B
17,170
12,354
1.669
40
571
13,122
4,566
610
496
1.341
118
4,344
4.989
13,198
3,578
87,899
2.143
391
1.187
181,097
13,177
4,217
459
450
1.090
117
5,061
5.644
11,596
3.274
81,675
2.453
554
_ 8~_._
171,669
Juner
365
375
238
222
4.323
6.818
13,984
3,040
89,362
1.073
275
183.979
5,339
5,972
15.032
2,510
96,852
865
253
349
198,879
24,583
32,451
5,992
6,396
66,119
9,373
12,080
116,731
4,766
4,278
68,022
7,711
10,675
121,508
4.331
4,336
579
693
382
258
22,037
1,085
2,248
1.115
467
535
3.613
198
21,337
2,767
2.250
958
459
647
3.423
669
325
209
21,357
1.621
2.487
1,005
468
759
3,036
2,804
279
21,007
1,446
2,545
1,168
502
394
2,502
2.903
4.408
3.173
3,230
3.148
3.924
248.010
247.939
252,208
251,874
257,347
254,978
586
330
389
CAPITAL MOVEMENTS
79
TABLE CM-II-2.--Total Claims by Country, COD.
[PosHicn at and 01 period in millions of dollars. Source: Office oIlnlernationai FinanCial AnaI~SisJ
Country
kia
China:
MaInland ..................
Taiwan ...................
HorgKong ..................
India .......................
IndollBsia ...................
Israel ......................
Japan ......................
Korea ......................
Lebanon ....................
Malaysia .........•..•.....•.
Pakistan •..••....•...••...••
Philippines ..................
Singapote...................
Syria •.....••...•....... , ...
Thailand .....•........•...•.
OiJ.expot1ing couNries 3...•••..
OIherAsia ..................
C8Iendar year
1992
938
2.091
12,219
564
1,297
6,180
106.443
6,292
45
297
883
2,240
8,611
15
1,946
19,110
662
ToIaiAsia .................
Africa:
169,833
Egypt ......................
194
4
966
697
1,Q68
4
1,026
829
4,788
Ghana .....................
Uberia .....................
Morocco ....................
SOuthAfrlca .................
Zaire .................... ".
0i-elIp0rting COtIlIries 4••••••••
Other Africa .................
Total Africa ........ , .......
0Iher aJuntriea:
Ausbalia ....... , ..... , ......
All other ....................
Total other counbies .••••..••
Totalloreign countries ......
Intemallanal and regional:
1nIematiooaI .................
European regional ............
Larin American regional ........
Asian regional ...............
AfrIc:an regional ..............
UiddIa Eastem regional ........
Total international
and regional.•••...•......
Grand total•...•...•.......
1993
Sept
794
1,639
13,755
630
1,561
5,993
81,950
7,243
48
636
946
1,245
7,908
17
2,273
14,998
602
142,238
184
10
1,022
740
735
3
1994
Dec.r
Mar.r
Juner
2,376
862
2,663
2.248
12,939
793
1,910
13,495
640
1.828
5,935
85,544
7,675
62
678
856
1.503
7,195
44
2.410
15,975
650
149,519
872
2,017
11,127
822
Sept. r
1,270
1.326
15,409
1,018
1.572
5,710
84,431
8,986
50
713
Dec.
896
1,482
11,682
1,068
1,732
5,528
88,373
10,589
56
835
642
758
5,451
72
3,545
14,417
523
147,849
~
Mar.p
962
1,633
17,272
1,146
1,787
5,997
89,589
12,554
56
1.052
1,509
5,728
82,119
8,513
61
847
627
698
6,246
46
3,179
17,311
654
142,376
643
7,324
43
2,928
15.989
587
148.703
4,293
3:11
12
838
799
568
4
1,292
534
4,348
285
13
823
659
583
3
1,162
405
3,933
2
906
480
3,539
573
681
2
781
509
3,335
4,501
1.622
6,123
3,783
1,932
5,715
5,m
81.946
7,802
58
970
871
1,407
6,507
41
2,961
15,230
531
142,848
224
704
as1
651
5,343
73
3,153
13,638
567
156,324
647
4,600
207
22
992
762
659
4
1,184
606
4,426
3.908
972
4,880
3,440
3,241
1,854
5,294
1,834
4,476
3,476
543
4,019
5,075
3,316
1.573
4,a89
621,644
578,317
603.986
607,673
601,392
601,200
623,220
651,682
5,016
2.339
22
2.390
4
69
1.828
3
90
2.464
2
3,170
4,ns
76
104
40
93
3,889
15
80
3,274
1,202
3
63
1,259
73
14
835
806
586
4
1,264
560
248
6
585
575
731
223
8
558
1
5
5
5,082
2,434
2,468
1,927
2.542
3,274
4,911
3.984
626,726
580,751
606,454
609,600
603,934
604,474
628,131
655,666
I Beginning with seriasfor o-mbar 1992 forward, data are for Russia only. Data for all other
!.'PUblics 01 the IQnnar U.S.S.R. are reported under 'Other Europe.'
2 BagiIViI1l with series for Dacembar 1992 forward, data for tha former Vugoslav republics
of BoInia and Herzegovina, Croatia, and Slovenia are reported unclar "Qher Europa.'
3 includes Bahrain. Iran. iraq. Kuwait. Oman. Qatar. Saudi "rabia. and the United "rab
Emiralas (Trucial SIaIas).
4 Includes "lgeria, Gabon, Libya, and Nigeria.
CAPITAL MOVEMENTS
80
TABLE Cl\1-II-3.--Total Claims on Foreigners by Type and Country, Mar. 31,1995
.. (POSItIOn a!.~nd.~ penod on ,!".!!.,,?!!S of d?'.!!<S_~urC!:.o"oce of Inlernatlonal Financial Analysis\
B!U!Qrti!!9 bi![!!s&' QW!J !<Iaiml
Country
--
.
-_..- - _..-
_._-----
Europe:
Austria .....................
Belgium·luxembourg ..........
Bulgaria ....................
Czechoslovakia ., ............
Denmark ................. , ..
Finland .....................
France .....................
Germany....................
Greece .....................
Hungary ....................
Ireland .....................
Italy ........................
Netherlands ... , .............
Norway .....................
Poland .....................
Portugal ....................
Romania ....................
Russia , ....................
Spain ......................
Sweden ....................
Switzerland .... , ....... , .....
Turkey .....................
United Kingdom ........ , .....
Yugoslavia 2..•....•.•...•.•.
Other Europe .......... , .....
Total Europe ......... , .....
Canada ......................
Latin America and Caribbean:
Argentina ...................
Bahamas ... , . ' ....... , .....
Bermuda ....................
Brazil ......................
British Wesllndies ............
Chile .......................
Colombia ...................
Cuba ................. , .....
Ecuador ....................
Guatemala .... , .............
Jamaica ....................
Mexico .....................
Netherlands Antilles ...........
Panama ....................
Peru ........ , , ....... ,., ...
Trinidad and Tobago ..........
Uruguay ....................
Venezuela .... . . . . . . . ,
Other Latin America
and Caribbean . .. .. .. .. . ..
Total latin America
and Caribbean ...... ,
See lootnotes at e"d 01 table
On foreign
public
borrowers
and
unaffiliated
foreigners
Total
claims
(1)
TOlal
banks'
own
claims
(2)
1,067
11,087
7
82
1,240
852
21,542
14,469
1,088
143
450
10,309
6.842
1,533
375
1,228
222
865
5.339
5,972
15.030
2,510
96,763
253
348
199.636
674
9,090
7
56
802
662
15,696
10,824
694
140
359
8,833
4,445
1,447
140
1,158
102
855
4,211
3,729
13,956
721
76,649
24B
323
155.821
135
230
3,160
1.626
503
97
307
91
770
1,584
1,170
2,723
604
27,800
247
175
58,163
32,423
22,462
6,396
66,119
9,373
12,075
116,665
4,766
4,278
6,273
65,841
8,522
10,n6
104,722
4,673
3,990
M~morindum
Payable
On own
in
(3)
foreign
offices
(4)
foreign
currencies
(5)
390
3,303
199
4,024
85
1.163
6
1
35
370
405
8,295
3.582
560
18
353
159
4,964
3,427
26
5
121
3,239
2,450
939
5
600
11
(6)
Total
(7)
1,997
374
1,415
61
47
3
26
438
190
5,846
3,645
394
303
22
5,293
2,750
388
393
3
5
99
314
106
69,227
7
596
11.093
9.114
2,255
128
9.961
4,690
7.571
8,511
7,349
14.773
4,184
3.904
1,563
57.534
20
736
122
123
278
851
1,299
11,943
93
288
394
2.502
1,615
100
34
3,924
3,136
1.823
254,902
234.446
76.022
244
8
2,434
369
5
38
251
11
3.402
81,542
164
79
Payable
in
dollars
(8)
3
85
1,145
357
6,119
31
9,152
1
42
28.431
1,482
2,202
5.114
86
39,697
547
372
275
16,480
1,040
1.156
1.006
482
502
ances
91
1,476
2,397
86
235
70
120
10
1,128
2,243
1,074
1,789
20,134
5
25
43,815
567
382
276
17,812
1,204
2,522
1,104
501
351
1.792
579
389
279
21,506
1,446
2.541
1,168
Claims of banks'
domestic custom!ilrs
Customers'
liability
on accepl-
3
79
98
2,437
3,B15
108
-_ .... -_ .. --.
25
8,407
325
7
20
2
7
8
1
38
47
109
716
222
74
47
30
1,206
2,300
64
750
93
30
280
8
95
788
788
14B,013
10,411
2,712
20.456
17.979
56
8
19
7
64
1
43
710
8
5,230
254
1
20
9
17
150
174
181
27
1,842
851
1,045
11,942
73
1.304
90
3
626
11
278
143
706
147
1.310
26
135
168
553
895
6
3
61
270
'i11
22
9,211
12
7
1
3,694
242
19
3
19
582
235
59
120
10
978
2,069
893
1,762
18,292
5
17
38,585
42
25
1
1,091
3
57
40
2
7
12
7
Payable
in
foreign
currencies
(9)
12
7
1
1,807
32
19
17
1
43
690
1,887
210
47
20
2,4n
CAPITAL MOVEMENTS
81
TABLE CM-n-3.-Total Claims on Foreigners by Type and Country, Mar. 31, 1995, con.
IPoaI\IOrI at end of PIItod in miIIIon8 01 dollars. source: 0IIIce oIlrdIIIIIIianII financial AnaIyaisJ
Reporting banks' own claims
0rib81",
Total
banks'
Country
Total
claimS
(1)
own
claims
(2)
public
borrowers
and
unaffiliated
foreiprs
(3)
Claims of banks'
Memorandum
On own
foreign
affIcea
(4)
Payable
in
Customers'
currencies
liability
on accept.
ances
(5)
(6)
4
11
2,247
3
32
12
32
41
183
foreign
dornAsIiI: ClIIII~
Payable
Total
m
Payable
in
in
foreigl
dollars
(8)
currenctes
(9)
AsIa:
China:
Mainland ..................
Taiwan ...................
HorVKong·· .......... •·· .. ·
India .......................
Indonesia ...................
962
1,555
17,263
1,146
1,785
Israel.......................
51111
Japan ......................
Korea ......................
\.ebanOII ....................
MaIayaia ....................
89,563
12,554
56
PakIsIan ....................
851
649
5,343
73
3,153
14.205
156.207
PhIippinea ..................
SiI1gapore ...................
Syda .......................
lbaiIIId ....................
OIberAsia ..................
TOIIIAsIa .................
AfrIca:
Egypt ......................
GhaJIa. .....................
Liberia .....................
Morocco ....................
South AfrIca .................
Zaie .......................
OIlIer Africa .................
Tolal Africa .•••.•.••••••.••
OIlIer oounlries:
AustIaIia ....................
AllOIher ....................
1,(62
223
8
541
573
681
2
1.290
3.318
845
736
1,482
18,706
1,042
1,543
823
82,164
12,309
40
924
683
562
4,478
71
384
4,360
B36
1,312
&07
20,891
6,818
'Sf
218
241
314
2,394
71
874
26,652
25
301
405
442
234
1,003
14
1,081
25
12
13
41
198
5,174
5,997
72
16
35
157
60
724
2
35
741
'rt711
1,402
173
93
11
21
141
43,255
30.592
212
177
28
7
11
11
11
8
541
435
851
8
2
11
7
2
47
138
138
7
23
240
396
23
317
175
492
11,487
541
422
644
67
39
30
273
2,515
2
2
1.050
2.899
1,022
2,816
12
42
1,310
967
2,277
~714
ToIaIloreign countries .••••
IntemaIionaI and regional;
6521200
5591'29
193,626
1rUmaIionaI .................
3,889
15
80
3,639
3,639
15
80
15
80
31984
3,734
3,734
656,184
562,863
197,380
~n.nning IIIIiIh ..... for DlII*I1I:Ier 1992 forward, data tor all other republica of the tormer
R. ... rtpCIdad undIr 'OIlIer EwqIe.'
204
34,621
5,468
3
255
14
1,460
2,274
13
304
3
32
2S3
63
44
280
86
4.766
~162
TOIaI OIlIer countries ........
EIIupean regiunIII ............
I..aIIn American regional ........
AsiiIl regional. ...............
African regional ..............
MIdcIe Eastem regional ........
TOI8I iIbmaIIonaI
and regional •••••••..•••••
Grand total ...............
199
78
114
41
117
73
557
104
242
5,174
7,399
245
16
128
168
87
865
2
3m!
741
161226
1,904
10.263
66,134
2,845
13,464
139,981
1,964
1,566
3.520
3,782
1.932
105
1.(187
10,099
203
16
13
240
41
73
419
448
141
589
206
sa
448
654
31
119
1,818
376
2.194
293,119
72.384
81394
93.071
1,501
201
1.702
81,584
250
250
250
250
93,321
81,834
293,119
72,384
8,394
11,487
2 BegInning wIIh ..lies for D~bar 1992 forWaJd, data for lie fanner Yugoslav republics
of BoIIri8 and Herzeguvlna, CI'DII1Ia, and SIownla lin! raportId under 'OIlIer Europe.
CAPITAL MOVEMENTS
82
SECTION I1I.--Supplementary Liabilities and Claims Data
Reported by Banks in the United States
TABLE CM-III-I.--Dollar Liabilities to, and Dollar Claims on, Foreigners
in Countries and Areas Not Regularly Reported Separately
(P~SII~~~ "at"_~d :,f P9nod In~hons_of dolla~S~u~s Office of In~~~natlonaf Financial Anal~ _ _ _ _ _ _ _ " _
Total liabilities
_____}otal
--"-"-----------"g~ndaryEl.!!~
Country
1993r
Other Europe:
Cyprus ........ ...............
Iceland .......................
Monaco -" ...................
Other latin America and Caribbean:
Aruba ........................
Barbados ... " .. " . ... .........
Belize ........................
Bolivia ........................
Costa Rica ....................
Dominica .....................
Dominican Republic ............ "
EI Salvador. ...................
French Wesllndies and French
Guiana .....................
Haiti .........................
Honduras ........ " ............
Nicaragua .....................
Paraguay ..... ................
Suriname .... ..........
June r
218
103
919
165
24
931
159
263
n.a.
330
1,020
12
1.052
817
130
519
112
357
1,083
18
899
883
27
240
520
121
590
58
44
14
2
200
38
148
271
328
74
"",
Other Asia:
Afg,anistan .................. "
Burma ....... " ................
Cambodia (formerly Kampuchea) ..
Jordan ........... "" ..........
Macau .......................
Nepal ........................
Sri Lanka .- ..................
Vietnam ......................
Yemen (Sanaa) . ..... ..........
Other Africa:
Angola " " . " " . ...... ..... ....
Cameroon ....................
Djibouti .......................
Ethiopia ......................
Guinea ......... " .............
Ivory Coast. ...................
Kenya ........................
Madagascar .......... " ........
Mauritius ................... '"
Mozambique ............ '" . " "
Niger....... ..... .......... ...
Rwanda ......................
Senegal ... ........ . .........
Somalia ......................
Sudan ..................... '"
Tanzania ........ ..... .......
Tunisia ........ " ......
Uganda ..... " ..........
Zambia ....
Zimbabwe ..............
26
5
67
299
15
34
223
12
43
81
2
9
10
14
29
78
37
84
105
112
All other:
New Zealand " . "
Papua New Guinea ... .. ......
677
12
"
"--"
-
1994
--"----Dec. r
galen~ear
1993 r
baf!~~ own ~Iaims
-
-- ---_ ... -- _.1994--.- ..- - - - ---
June
Dec.
183
36
770
36
28
n.a.
35
22
n.a.
11
13
63
152
71
440
1,010
35
864
762
n.a.
n.a.
n.a.
116
264
n.a.
273
241
14
n.a.
n.a.
149
402
18
278
314
13
n.a.
n.a.
207
404
n.a.
253
330
39
219
530
154
572
58
n.a.
244
633
192
600
61
n.a.
10
65
10
119
n.a.
n.a.
5
121
11
126
n.a.
1
7
151
10
138
n.a
84
71
n.a.
n.a.
192
32
n.a.
229
556
161
n.a.
n.a.
86
71
n.a.
n.a.
189
n.a.
n.a.
11
n.a.
244
3D
n.a.
172
351
104
46
6
16
306
18
35
196
n.a.
n.a.
108
3
5
n.a.
17
31
128
37
107
110
143
n.a.
n.a.
- - .----.---- ...
• Less than $500.000
IIIole -·Dala repressnl a partial breakdown 01 the amounts shown torthe corresponding dales
for Ihe 'oll1er- geographical categorIes In Ihe regular monthly series In the "Treasury Bul/SM •
544
72
6
n.a.
337
14
40
224
14
48
88
3
n.a.
n.a.
21
38
191
53
200
72
143
n.a.
n.a.
-------
94
n.a.
n.a.
216
n.a.
n.a.
28
6
n.a.
13
n.a.
30
n.a.
n.a.
n.a.
201
n.a.
n.a.
25
5
3
13
n.a.
30
10
n.a.
2
n.a.
15
1
15
19
n.a.
n.a.
n.a.
19
n.a.
8
n.a.
n.a.
13
11
6
n.a.
n.a.
4
n.a.
7
n.a.
n.a.
5
62
9
n.a.
n.a.
8
n.a.
25
641
49
1,736
2
5
n
899
2
CAPITAL MOVEMENTS
83
CHART CM-B.--U.S. Claims on Foreigners
Reported by U.S. Banks, Brokers, and Dealers
with Respect to Selected Countries
(In billions of dollars)
250.-----------------------------------------~
o
1991
1992
_
United Kingdom
_
CJ Japan
o
1993
All other Europe
All other Asia
1994
March 1995
. . Caribbean banking centers
_ All other countries
lin miIione ci doIIara]
Count~
United Kingdom ••••...••.•..•.•••.•.••••.
March1~.
1991
1992
1993
1994
90,688
90,388
90,425
192,681
106,443
63,390
543,327
83,3@!!
626,726
81,675
89,362
96,852
89,994
94,617
192,434
200,574
85,544
88,373
102,027
196,214
89,589
63,975
513.622
59,276
532,202
95,929
628,131
AI other Europe ..........................
78,460
Caribbean banking centers 1................
222,172
126,385
Japan ..................................
51,947
AI other Asia ............................
569,652
Slbtotal ..............................
86,624
All OIlIer countries ........................
656,276
Grand ICtal ............................
1 Includes Bahamas, BemuIa. British west Irdell. NefIeIIand& AIdes, and Panama.
U.S. banking claims on foreigners, excluding
claims represented by long-term securities, are
highly concentrated in international financial centers. The chart and table show that well more than
half of claims are reported opposite the United Kingdom, Japan, and, most notably, offshore banking
centers in the Caribbean. Also significant are claims
on foreigners reported against Europe excluding the
United Kingdom and Asia excluding Japan. The
share of claims attributable to Caribbean banking
centers and to other Asia have been steady since
1991, whereas the shares of other regions, most
notably Japan and other Europe, have fluctuated.
92,832
606,454
66,735
551,417
104,249
655,666
Total U.S. claims on foreigners first declined
then recovered over the period shown. Claims OD
specific areas exhibited distinctive patterns of rise,
decline, or overall stability. As of March 1995, u.s.
claims had risen markedly in percentage terms opposite other Europe. other Asia, and all other countries, but declined substantially against Caribbean
banking centers and Japan. The United Kingdom
showed a moderate increase. Compared with
yearend 1994, claims on all areas expanded as of
March 1995. with the exception of the banking
centers, which were down $4.4 billion.
CAPITAL MOVEMENTS
84
SECTION IV.--Liabilities to, and Claims on, Foreigners
Reported by Nonbanking Business Enterprises
in the United States
TABLE CM-IV-l.--Total Liabilities and Claims by Type
. ____
J~".s_~~on
al end of penod In millions of dollars Source Office of InternatIonal Fonanclal AnalySIS]
___ ~Iendar yea_r_____
Type of liability or claim
_ _ _ _ _ _1994 _____
1992
44,708
45,511
50,369
52,059
55,383
57,204
54,644
51,468
39,029
37,456
38,750
38,552
42,957
42,734
39,700
37,580
lB.l04
16.960
18,545
18,930
22,819
23,262
19.192
17,745
8,279
8,679
7,871
7.814
8,813
8,441
8,867
9,092
12.646
11,817
12,334
1',B08
11,325
11,031
11.041
10,743
Payable in foreign currencies ......
5,679
8,055
11,619
13.507
12,426
14.470
14.944
13.888
Financial ... ................
4,414
6.881
10,414
11.483
10.426
12,588
13,056
12.107
,
973
887
940
1,162
1,100
1,111
1,146
1,070
Advance receipts and other ....
292
287
265
862
900
771
742
711
45.262
45,073
48.197
49,125
48,436
50,320
55,783
51,372
42,564
42,281
44.920
45,746
44,763
46,839
52,641
47,047
19,080
16.672
15.146
15,471
15,164
16,009
18,194
15,979
6,910
7.890
10,655
11,301
9,972
10,914
13,009
10,180
13.817
15,189
16,635
16,784
17,590
17,919
19,254
18,607
2.757
2,330
2,483
2,190
2,037
1,997
2,184
2,281
2.698
2.792
3,277
3,379
3,673
3,481
3.142
4.325
1,000
823
535
502
605
561
451
594
892
924
1,192
1,187
1,323
1,188
1,000
1,167
Trade receIvables .
651
81B
1.030
985
962
948
950
1,896
Advance payments and oTher
155
227
520
705
783
784
681
668
Tota/llabilltles
Payable in dollars ....
Financial .. '.,
1993r
Mar.r
June r
.-- --. ---
Sept. r
__1i~
1991
Dec.
Mar. p
Commercial:
Trade payables . . . . . . . . . . . . . . . .
Advance receipts and other. .
Commercial:
Trade payables .. ..... , ....
Total claims ...........
Payable In dollars.
Financial:
.
Deposits
..... .....
Other .........
Commercial:
Trade receivables . . . . . . ..
Advance payments and other .....
Payable in foreign currencies.
FinanCial:
Deposits.
Other .....
..
. .
. . . .. .
Commercial:
CAPITAL MOVEMENTS
85
TABLE eM-IV-2.--Total Liabilities by Country
[Position at end of period in millions of dollars. Source: Office of International Financial Analysis]
Calendar year
country
Europe:
Austria .................... .
Belgium-Luxembourg ......... .
Bulgaria ................... .
Czechoslovakia ............. .
Denmark................... .
Finland .................... .
France .................... .
Germany .................. .
Greece .................... .
Hungary ................... .
Ireland ................... ..
Italy....................... .
Netherlands ............... ..
Norway .................... .
Poland .................... .
Portugal .................. ..
Romania................... .
Spain ..................... .
Sweden .................. ..
Switzerland ................. .
Turkey .................... .
United Kingdom ............. .
U.S.S.R. ' .................. .
Yugoslavia 2 ........••.•••...
Other Europe ............... .
Total Europe .............. .
Canada ..................... .
1990
1991
1994
1992
1993 r
Mar. r
June r
139
130
669
107
712
13
414
9
464
9
15
4
14
8
49
362
3,194
300
3,160
1,659
1,791
201
252
280
67
614
3
7
565
101
63
38
160
449
2,328
3,145
1,734
178
26
387
2,323
1,618
1,891
199
5
n.a.
590
1,924
991
702
606
1,766
527
32
430
1,141
283
31
58
3
485
485
1,222
359
57
776
4
4
26
449
1,192
219
14
Sept. r
122
119
70
48
778
948
726
885
5
6
277
5
3
4
6
5
650
249
2,302
1,609
242
5
529
638
391
1,275
214
344
14
15
369
1,209
232
18
20
16
30
164
286
211
222
205
1,424
53
9,149
74
983
919
1,009
1,588
1,104
97
20,566
88
8
36
134
15,944
77
106
327
1,322
343
161
322
104
196
1,182
412
355
15,379
60
2,742
2,265
5
534
438
116
2,490
2,572
402
23
6
194
65
446
220
449
33
8,825
2,019
259
3
236
498
55
40
16
237
2,983
4
6
15
24
6
33
37
34
1995
Mar.p
Dec.
59
11,115
62
69
39
10
9
9
771
52
21,637
36
20,704
20,785
36
25,645
30
27,060
1,490
1,306
1,546
1,738
1,547
22
540
86
382
36
1,169
424
225
421
228
613
229
533
235
3,631
2,883
350
234
1,560
41
16
51
89
1,633
84
19
34
50
1,321
61
41
15
13
18
6
25
18
203
250
1,024
120
19,178
176
17
35
8
129
38
4
130
243
1,023
225
1,272
109
71
17,159
12,882
84
76
12
9
30,610
77
10
28
30,659
31
27,725
47
23,710
1,768
1,686
1,663
3,020
51
47
1,166
1,054
42
1,118
88
945
939
215
425
370
Latin America
and Caribbean:
Argentina .................. .
Bahamas .................. .
Bermuda................... .
Brazil ..................... .
British West Indies ........... .
Chile ...................... .
Colombia .................. .
Cuba ...................... .
Ecuador .................. ..
Guatemala ................. .
Jamaica .................. ..
Mexico .................... .
Netherlands Antilles .......... .
Panama ................... .
Peru ...................... .
Trinidad and Tobago ......... .
Uruguay ................... .
Venezuela ................. .
Other Latin America
and Caribbean.. .. .. .. .. ...
Total Latin America
and Caribbean ............
See footnotes at end of table.
30
382
538
145
3,191
24
19
15
5
3
480
634
22
14
25
6
6
314
642
6
10
9
9
469
626
633
36
10
8
641
13
13
10
664
32
14
15
2
13
2
131
155
199
192
147
5,462
5,132
134
1
98
154
125
176
218
5,824
6,139
5,586
5,025
10
570
19
17
3
148
17
9
4
6
500
28
6
17
718
155
1,377
112
49
1,183
44
58
414
156
1,260
37
19
29
2
33
24
11
8
14
11
688
660
576
645
522
630
39
17
50
30
25
24
23
26
13
1
197
284
278
145
131
4,886
4,565
30
10
185
4,929
11
==~~==~~==~~==~~==~===:::::::==================
CAPITAL MOVEMENTS
86
TABLE CM-IV-2.--Total Liabilities by Country, con.
IPOS~lon al ~nd 01 per~!!, .mll!lDns.~~O!!~ ~urce OII~ Ollnl!r~al.~~.~~~nc:~1 A.nalySi~l
1994 ----_.
Calendar year
Counlry
1990
S~pt. r
Juner
Mar.
.. r
1993 r
1992
1991
1995
Mar.p
Dec.
Asia:
China:
Mainland ...........
Taiwan ...................
Hong Kong ..................
India .......................
Indonesta ...................
Israel .......... " ..........
Japan ......................
Korea ......................
Lebanon ....................
Malaysia ..... "'" ..........
Pakistan .... , ...............
Philippines ..................
Singapore ............. " ....
Syria .......................
Thailand ....................
Oil-exporting countries 3........
01llerAsia ........... " .....
Tolal AsIa .................
Africa:
EgypI ......................
Ghana .....................
Uberia .....................
Morocco ....................
South Africa .................
Zaire ........ , ..............
Oil-exporting countries 4 ...•.•..
Other Africa .. , ..............
Total Africa, ...............
Other countries:
AustraUa ....................
Allother ............. " .....
Total other
countries ................
Total foreign
counlries ...............
Intenational and regional:
Inlernational. ................
European regional ............
Latin American regional ........
ASian regional ...............
African regional ..............
MiQjJe Eastem regional ........
Total international
and regional. ... .........
Grand total ...............
723
579
785
91
363
229
8,934
1,701
668
460
702
621
773
801
61
176
124
7,837
1,549
3
566
810
884
164
173
158
89
1
20
123
6
422
101
847
36
79
3
331
114
721
28
59
5
309
B2
574
1,108
482
974
lOB
503
88
517
148
502
1,590
1,082
591
46,166
44,667
184
41
46B
639
806
29
89
350
682
593
647
57
313
120
9,149
1.657
23
285
21
57
734
3B
328
1,865
21)7
127
265
181
173
9,255
8,362
7,716
1,636
1,722
1,556
22
22
16
3
271
475
613
124
304
28
26
21
25
3B
60
57
53
10
25
782
798
590
578
626
11
3B
2
50
53
285
259
179
277
255
1,566
1,565
1,908
1,511
2,022
.
__
...
'
_7g_.
___
~.. ____ 7L .. _ _ . 96. _ . _19! __
111
.--16,673
16,681
16,589
16,412
14,715
14,779
2
113
1
1
41
55
104
1
2
4B
50
5
323
90
623
612
709
5B4
853
396
746
701
717
805
101
41
59
325
299
309
169
141
141
11,821
11,784
11,182
1,671
1,737
1,722
14
17
28
211
178
285
27
26
28
68
50
51
671
630
673
21
24
24
247
194
309
1,831
1,719
1,645
~ _ _ _ B.l
._~14___
19,224
lB,972
18,663
90
48
50
62
3
30
21
4B
5
29
22
43
67
5
247
92
532
198
665
45,494
40
226
46,392
99
615
32
7
385
74
577
370
120
620
492
75
391
160
372
153
409
137
700
567
551
525
546
SO,351
51,981
55,282
57,103
54,600
51,433
17
lB
78
101
101
44
3S
41
17
lB
7B
101
101
44
3S
44,708
45,511
50,369
52.059
55,383
57.204
54,644
51,468
, Less IlIan 5500.000
1 Beglnnmg with senes lor December 1992 torward. aata are tor RUSSia only Data tor all oilier
republiCS 01 the fDrmer U S S R .18 reported under 'Other Europe ,
2 Bag,nn,ng with 58"es tor December 1992 lorward. data for the lormer Yugoslav republICS DI
eo"n,. and HerzegOVIna. Croeha. and SIOlienl••ra reported unci., 'Other Europe ,
6
294
- .. - B6
597
394
31
ncludlls Bahrain. Iran. Iraq. KUWIIII, Oman, Qatar. Saudi Arabia and ilia Uni1Bd Arab Ell'llrales
r:rUClaI Stales).
•
Includes Algeria. Gabon. libya. and Nlgana.
CAPITAL MOVEMENTS
87
TABLE CM-IV-3.--Total Liabilities by Type and Country, Mar. 31,1995, Preliminary
[Position at end of period in millions 01 dollars. Source: Office of International Financial Analysis]
FinanciailiabilRies
Country
Europe:
Austria, ....................
Belgium-Luxembourg ..........
Bulgaria ....................
Czechoslovakia ..............
Denmark....................
Finland .....................
France .....................
Germany ...................
Greece .....................
Hungary ....................
Ireland .....................
Italy...•....................
Netherlands .................
Norway .•...........•.......
Poland .....................
Portugal ....................
Romania ....................
Russia 1 ....................
Spain ......................
Sweden ....................
Switzerland..................
Turkey .................... ,
United Kingdom ..............
Yugoslavia 2 .................
CHherEUfOPe ................
Total Europe ...............
Canada ......................
latin America and Caribbean:
Argentina ...................
Bahamas ...................
Bermuda....................
Brazil ......................
British West Indies ............
Chile .......................
Colombia ...................
Cuba.......................
Ecuador ....................
Guatemala ..................
Jamaica ....................
Mexico" ...................
Netherlands Antilles ...........
Panama ....................
Peru ...................... ,
Trinidad and Tobago, .........
Uruguay ....................
Venezuela ..................
Other Latin America
and Caribbean .............
Total Latin America
and Caribbean ............
See footnotes at end of table.
Total
Payable
in dollars
(1)
Payable
in foreign
currencies
(2)
(3)
(4)
48
30
612
345
Total
liabilities
885
4
5
446
220
2,742
2,265
106
5
402
369
1,209
232
18
38
4
76
130
225
1,272
71
12,882
363
7
2,046
1,755
1
2
298
55
30
267
18
273
363
4
5
83
2
5
213
1,412
674
634
1,081
1
2
58
939
414
156
1,260
37
696
510
105
3
633
276
10
421
13
1
22
45
212
12
12
5
7
2
36
2
4
10
10
883
340
19
10,025
19
104
314
576
219
18
26
4
6,997
74
32
94
215
543
389
52
3,028
2,857
9
47
23,710
3,020
Commercial
liabiities
(5)
9
2
16,804
1,817
6
931
149
58
1,231
15
45
10,552
1,273
6,252
6,906
544
1,203
123
52
8
265
98
29
6
931
149
58
1,108
15
22
29
2
22
10
29
2
24
11
11
522
630
25
24
13
1
278
2
2
10
600
10
1
10
5
5
1
273
131
5
5
126
4,565
3,024
2,901
11
512
30
15
23
13
600
10
1
123
1,541
CAPITAL MOVEMENTS
88
TABLE CM-IV -3.--Total Liabilities by Type and Country, Mar. 31, 1995, Preliminary, con.
_____ ~ _____ o____
[posllio,,-at end of penod In mlff,ons of dollars Source Ofhce of Internatlonaf FinanCial AnalYSIS]
Financialliabililies
Country
-----
----
Payable
In foreign
currencies
(4)
Commecial
liabilities
(5)
Totat
liabilities
(1)
Total
(2)
Payabte
in doliars
(3)
709
20
16
4
396
17
2
15
379
374
366
B
327
-~--~-
Asia
China:
Mainland.
Taiwan.
Hong Kong.
701
India.
101
tndonesia.
309
46
46
Israel
169
26
26
Japan.
11,784
6,990
1,912
Korea.
1,671
338
338
Lebanon.
100
263
143
5,078
211
Pakistan.
26
Philippines
68
Singapore.
630
4,794
1,333
17
17
Malaysia.
689
19
19
192
26
68
153
125
28
477
5,152
21
21
247
1,912
18,972
27
8,011
27
2,859
247
1,885
10,961
Egypt.
62
20
20
Ghana
3
3
Morocco.
22
22
South Afnca .,
43
42
Syria ...
Thailand ..
Other Asia ... '
Total Asia
Africa:
42
liberia
Zaire ...
Other Africa .
Total Africa ..
490
620
135
156
135
155
355
464
409
137
4
34
1
374
132
546
35
5
40
5
35
506
51,433
29,852
17,745
12,107
21,581
Other countries:
Australia.
All other ...
Total other countries.
Total foreign countries ....
1
International and regional
International.
European regional.
35
35
35
35
Latin American regional ..
ASfan regional
African regional .
Middle Eastern regional
Totallntemational
and regional
Grand tctal
51,468
, Beginning With senes lor December 1992 forward. data for all other republics
U S S R are reported under "Other Europe "
29,852
01
the former
17,745
12,107
21.616
2 Beginning with senes for December 1992 forward, data for the fonmer Yugoslav republics
Bosnia and HerzegOVina, Croatia. and Slovenia are reported under -Other Europe -
of
CAPITAL MOVEMENTS
89
TABLE CM-IV -4.--Total Claims by Country
[Posilion al end of period in millions of dollars. Source: Office of Internalional Financial AnalysIs]
Calendar year
Country
Europe:
Austria ........... .
Belgium·luxembourg ......... .
Bulgaria ................... .
Czechoslovakia . .. . . , ....... .
Denmark................... .
Finland ................... ..
France ................... ,.
Germany .................. .
Greece ................... ..
Hungary ................... .
Ireland ................... ..
Italy....................... .
Netherlands ........... , ... ..
Norway .................... .
Poland .. , ............ , ... ..
Portugal .............. , .... .
Romania ............ .
Spain ................ , .... .
Sweden .................. ..
Switzerland................. .
Turkey ............ .
United Kingdom ...... , ...... ,
U.S.S.R. 1....•. , .••....••...
Yugoslavia 2 ........ , ...... ..
Other Europe .......... , .... .
Total Europe ....... , . , ... , .
Canada .................... ..
Latin America and Caribbean:
Argentina . .. .. .. .. .. .. .. .. ..
Bahamas...................
Benmuda. .. .. .. .. .. .. . . .. .. .
Brazil ......................
BritishWestlndies............
Chile.............. .........
Colombia........ .. .... .. ...
Cuba.. .. . .. .. .. . . .. . .. .. .. .
Ecuador. .. .. .. .. .. .. .. . .. ..
Guatemala. . . . .
Jamaica .. .. .. . .. .. .. .. .. .. .
Mexico .. . .. .. .. . .. .. . .. .. ..
Netherlands Antilles. . . . . . . . . . .
Panama... .. .. .. .. .. . .. .. ..
Peru.... ...... ....... .. ....
Trinidad and Tobago. . . . . . . . . .
Uruguay....... ... .. .. .....
Venezuela........... .. .....
1990
1991
48
288
10
16
64
53
1,611
1,173
69
18
n.a.
609
820
212
23
95
295
251
658
96
9,746
171
160
196
16,689
84
207
2
18
97
160
1,854
1,238
52
21
91
853
979
121
43
141
4
335
217
876
101
13,620
274
113
133
21,634
4,008
165
1,104
249
394
4,675
108
136
9
98
34
34
837
50
70
52
25
13
217
1994
1992
71
197
13
46
154
169
2,301
1259
114
30
419
1,041
1,067
196
74
1993r
MaLr
88
318
32
48
103
171
2,m
1,544
149
June r
80
302
37
28
46
171
2,620
1,413
114
26
358
957
858
156
119
190
Sept. r
Dec.
1995
Mar. p
~--------------~-
12
332
282
852
257
8,346
232
52
90
17,782
416
883
925
132
116
191
5
459
460
962
246
5,904
228
55
132
16,346
431
459
950
270
6,041
226
45
126
16,029
98
262
42
38
55
133
2,n4
1,397
131
18
390
852
766
155
124
184
14
424
438
1,195
250
5,496
219
44
124
15,623
3,763
3,119
3,392
3,690
4,548
4,667
5,344
6,083
214
B40
272
778
9,097
84
118
2
95
14
25
1,054
38
38
91
20
7
243
242
806
295
1,043
11,787
129
129
2
40
23
30
1,369
26
66
115
9
8
374
299
1,321
307
1,117
12,607
221
120
2
81
32
27
1,862
37
90
148
26
8
457
419
1,298
256
1,094
12,762
263
156
2
74
41
40
1,864
52
79
138
39
16
322
447
1,299
334
968
11,859
238
164
4
83
48
41
1,661
46
75
176
22
12
338
436
1,104
29B
884
12,192
221
200
2
91
39
30
1,792
47
105
175
17
21
426
346
2,338
261
1,134
14,885
229
234
349
921
239
1,162
12,632
267
251
1
75
67
29
1,573
66
95
98
18
20
318
176
6
6
109
288
31
31
40
2,597
1,293
150
34
442
779
833
211
138
198
19
410
383
1,285
237
6,816
210
49
139
16,825
125
303
37
52
81
173
2,686
1,586
136
41
315
816
743
228
122
217
17
496
352
1,082
208
6,949
254
39
159
17,217
126
268
34
34
52
135
2,602
1,443
151
18
320
869
940
239
119
182
25
456
402
1,052
222
6,278
233
11
89
16,300
103
112
46
42
1,850
65
102
175
17
25
390
Other
America
342 _ _--....:!~
443 _ _ _~~
553 _ _ _626
679
699
618
719
and Latin
Caribbean
............ , ____~3'!i13~_____'~
~ _ _ _~~ _ _ __ = " _ __ __'''_'__''__ _ ___'_'"'_
Total Latin America
and Caribbean ............
Sea foolnoles al end of lable
8,577
13,372
16,936
19,315
19,541
18,494
18,779
22,870
18,910
==~~==~~=~~~=================================
CAPITAL MOVEMENTS
90
TABLE CM-IV-4.--Total Claims by Country, con.
[Po~!!'o~~n~ .~~IOd In m~l~n~..~~I~:~ ~~!~e Off'c:!.~f !~~~natlonal£~~~~.:'.al A~ys~L_ ....
Country
Asia:
China:
Mainland ..................
Taiwan •....•.•.•....•.•.•
Hong Kong ..................
India ................. · .....
Indonesia ............... · ...
Israel ......................
Japan ......................
Korea ......................
Lebanon ............. ··.· ...
Malaysia ................ ...
Pakistan ....................
Philippines ..................
Singapore ...................
Syria .......................
Thailand ....................
Oil-exporting countries 3........
OtherAsia ..................
Total Asia .................
1994
Calendar lear
1991
1992
1990
Dec.
463
36B
282
307
37B
379
406
414
427
432
267
105
159
267
135
138
298
386
354
309
100
426
129
447
191
1,983
174
2,249
168
2,571
218
3,065
189
4,010
195
3,708
362
191
3,110
378
11
423
11
361
549
541
610
538
50
64
46
55
90
63
463
80
457
60
75
50
53
79
105
459
248
291
65
477
32
111
404
163
406
253
132
144
212
147
444
1995
Mar. p
-'---'-
Sept. r
June r
Mar. r
1993 r
506
1,144
170
33
35
38
104
375
106
411
116
7
117
8,608
472
9
525
472
462
487
441
410
201
411
177
414
176
241
3,428
3,311
652
704
58
63
454
464
31
40
139
117
429
545
12
6
183
191
841
689
124 .---~!!.
8,580
8,417
128
118
127
174
468
36
625
696
83
Bl
4,987
5,231
5,730
719
188
7,563
184
673
122
8,401
6
216
618
123
8,375
177
139
113
103
lOB
261
75
7
4
13
7
6
19
16
9
8
9
115
24
69
209
549
10
142
40
76
12
156
21
86
182
620
15
7
108
31
102
211
591
5
10
m
189
722
551
669
191
860
801
226
1,027
817
261.
1,084
52
5
8
5
200
635
Africa:
Egypt ..................... ,
121
67
185
526
96
123
487
5
34
37
81
29
87
187
637
450
702
152
854
752
181
657
188
513
570
180
750
933
845
606
205
811
35,299
45,237
45,058
48.169
49,097
48,417
SO,288
55,760
51.345
22
2
13
28
22
13
31
19
26
16
6
6
Ghana .....................
liberia .....................
15
Morocco ....................
14
South Africa .................
Zaire ....•....•.............
Oil-exporting countries 4. . • . . . . .
98
25
Other Africa .................
Total Africa ..•...•.•.••.•..
Other countries:
Australia ............... , ....
AlloIher ....................
Total other countries .. ' . , ..
Totar foreign countries ......
Internalional and regional:
In1emational .................
European regional ............
Latin American regional ........
92
1
63
38
23
108
6
45
108
34
2
11
96
24
91
212
5ti6
84
4
33
Asian regional ............. "
African regional ..............
Middle Eastern regional ........
Total international
and regional. ......... , ...
49
25
15
28
28
19
32
23
27
Grand total ............•..
35,348
45,262
45.073
48,197
49,125
48,436
50,320
55,783
51.372
" Less than
SSOO.OOO.
1 IIegIMlng with _
lor December 1992 forward. dala are lor RU5SIa only Dala for all other
republICS of tile former u S S R are I'8IIOned under "Other Europe "
2 Beginning IOI1Ih sa.... lor December 1992 forward. !!ala 10. the forma. Yugoslav republocs of
BosIIiI and HerZegOlilna. C/08I,a. and SIovan.a are reported under "Other eu'ClPI·"
3 Includes Bahra.n. Iran. Iraq. Kuwat Oman. Qatar. Saudi Araboa. and the United Arab Emirales
~TfUClal States)
Includes Algena. Gaborl. libya. and Nlgella.
CAPITAL MOVEMENTS
91
TABLE CM-IV-5.--Total Claims by Type and Country, Mar. 31,1995, Preliminary
[Position al and aI period in millions of dollars. Source: Office allntarnational Financial AnalysiS)
Financial claims
Country
Europe:
Austria .....................
Belgium-luxembourg .....•....
Bulgaria ....................
Czechoslovakia ..............
Denmark. ...................
Finland .....................
France .....................
Germany ...................
Greece .....................
Hungary ....................
Ireland .....................
Italy........................
Netherlands .................
Norway ...................•.
Poland .....................
PortugaL ...................
Total
claims
(1)
Toial
(2)
Denominated
in dollars
(3)
Denominated
in foreign
currencies
(4)
126
268
34
34
52
135
2,602
1,443
151
18
43
69
12
2
12
1
805
443
63
320
213
81
606
4
42
146
213
67
592
31
68
205
490
1
3,867
25
18B
482
1
3,559
308
869
940
239
119
182
25
233
456
402
1,052
222
6,278
11
29
60
10
14
9
2
2
12
1
786
365
62
41
142
19
78
1
14
14
4
,
4
Commercial
claims
(5)
83
199
22
32
40
134
1,797
1,000
88
18
107
788
334
235
77
Russia 1 ....•.....•...••....
Spain ......................
Sweden ....................
Switzerland ..................
Turkey .....................
United Kingdom, .............
Yugoslavia 2 ................
Other Europe .. , .............
Tolal Europe ...............
16,300
18
7,222
18
6,663
559
36
25
202
388
197
562
221
2,411
11
71
9,078
Canada ......................
6,083
4,090
3,523
567
1,993
349
921
32
905
37
487
12,574
14
18
31
888
36
396
12,561
13
17
17
317
16
202
91
13
675
58
1
14
13
472
32
41
11
234
32
41
11
238
27
24
3
87
18
20
291
719
133
129
4
586
18,910
14,798
14,427
371
4,112
Romania....................
Latin America and Caribbean:
Argentina ...................
Bahamas ...................
Bermuda....................
Brazil ......................
British West Indies ............
Chile ...••.........•........
Colombia .................. ,
Cuba.......................
Ecuador ....................
Guatemala ..................
Jamaica ....................
MexicO .....................
Netherlands Antilles ..•.•...•••
Panama ....................
Peru .......................
Trinidad and Tobago ..........
Uruguay ....................
Venezuela ..................
Other Latin America
and Caribbean .............
Total Latin America
and Caribbean ............
Sea footnotes alene! of labia.
89
239
1,162
12,632
267
261
1
75
67
9
6
59
17
8
29
1,573
66
95
9B
18
20
318
253
243
1
74
53
29
1,101
34
54
CAPITAL MOVEMENTS
92
TABLE CM-IV-S.--Total Claims by Type and Country, Mar. 31,1995, Preliminary, con.
Financial daims
Country
-----------
Total
claims
(1)
Total
Denominated
in dollars
Denominated
in foreign
currencies
Commercial
claims
(2)
(3)
(4)
(5)
. _ - ._-----------------51
21
50
1
21
411
42
36
6
368
8
213
8
584
2
3
190
8
463
5
23
201
307
2
11
114
302
10
57
57
39
55
1,457
35
52
1,206
4
3
251
462
487
410
177
414
241
3,311
704
121
2
63
464
31
117
545
12
191
788
8,417
5
2
466
169
233
2,727
702
63
157
29
106
431
12
152
733
6,960
72
3
75
3
6
6
4
4
4
8
12
12
136
20
20
156
21
21
273
50
50
-------~~--------~~-------~~-------~---------.~
474
551
n
n
817
267
1,084
189
87
276
176
87
263
51,345
27.920
26,159
26
26
--------=-----27
51,372
27
27,920
, Beaonn,ng with senes lOr December 1992 lerward. dara lor all DIller repubhcs 01II1II lormer
U S S R are repol'llld under 'OIIIer Europe'
26,159
1,761
23.452
2 IIegonn'ng wdh series lor DllCllmber 1992 lerward. dara lor IIw Icnner YUllQllav _ ........ 01
!Iosnla and Herzegovina. CraBlla. and Slovenia are rtIpOrI8CI under 'OIhar Eumpe.'·-'-
CAPITAL MOVEMENTS
93
CHART CM-C.--Net Foreign Purchases of Long-Term
Domestic Securities by Selected Countries
(In billions of dollars)
60,-----------------------------------------------~
50
40
30
20
10
o -+-....."""..---10~----r---------,---------~--------~r---------~--~
1992
1993
D
United Kingdom
CJ Japan
_
_
1994
1995
All other Europe
All other Asia
1995
Jan.-June
Apr.-June
_ Caribbean banking centers
_ All other countries
[In millions 01 dollars]
CoURtry
1992
1993
1994
URHed Kingdom ..................•••.•..•
33,304
30,442
57,561
All other Europe .•.....•••..•.•..... " •.•.
-1,171
430
26,472
1,205
·4,963
Caribbean banking centers 1 ............... .
2,112
12,345
-3,374
8,188
12,552
Jan.·June 1995
55,935
Apr.·June 1995
26,452
Japan .........•........................
32,464
36,194
22,939
5,769
14,428
All other Asia ........................... .
24,428
20,089
21,423
19,251
14,677
95,no
138,276
107,518
63,146
Subtotal .............................. _ _ _64,442
:=..:.L.:-==-_ _--=.:=.:..:'--_----==:.:..::...._....:.::::=..:.;'--_
_-=.::.!~_
3,994
11,182
8,790
15,360
5,225
All other countries ........................ _ _ _...:.z..:.=-_
_---'-'='--_
_--==:.:...:....._--'-==--_
_---"-'=_
Grand total •...........................
111,130
73,232
142,270
118,700
68,371
1 Includes Bahamas. Bannuela. British West Indies, NeII1arlands Antilles. and Panama.
As reported by U.S. banks, brokers and other
persons, foreigners' transactions in long-term domestic securities are conducted largely through international financial centers. The chart and table
present aggregate net purchases on an annual basis
for 1992 through 1994. and on a year-to-date and
quarterly basis for 1995. The yearend figures show
that there has been overall a steady increase in foreigners' net purchases, or gross purchases minus
gross sales, of U.S. securities.
Of particular interest are the net purchases of
U.S. securities by foreigners located in the United
Kingdom and Japan. The historically strong net pur-
chases opposite the United Kingdom slowed marginally in 1993, but increased sharply in 1994 by
nearly 90 percent. Moreover, net purchases in the
first half of 1995 amounted to 97 percent of 1994
totals, suggesting that this trend may be accelerating.
Ne~ purchases opposite Japan. which. of the areas
shown, were among the lowest in 1992, exhibited a
substantial surge in 1993 that continued into 1994.
Figures through the first half of 1995 indicate continuing strong activity in that period. particularly in
the second quarter. The other financial centers, principally in the Caribbean, Europe, and Asia displayed
varying patterns of activity over the period shown.
CAPITAL MOVEMENTS
94
SECTION V.--Transactions in Long-Term Securities by Foreigners Reported by
Banks and Brokers in the United States
TABLE CM-V-l.--Foreign Purchases and Sales of Long-Term Domestic Securities by Type
Corporate and other securities
U.S. Government corporations and federally
sponsored agencies
Bonds 1
Stocks
Net" - . Gross- - Nei- -Gross
Net
Gross
Marketable Treasury bonds and notes
NetforelQn purchases--- ----- - -- -- ---
Calendar
year
or monlh
Total
(1)
Foreign countries
Offlcial
Other
institor·
tutions eigners
(2)
International
and regional
(3)
Gross
foreign
Gross
foreign foreign Gross foreign foreign
Gross foreign
pur·
foreign
purpur· foreign purpurforeign
purchases
sales
chases chases sales chases chases
sales chases
(4_)_ _ ~_~_!~_~_.l9_)_~~_)_~.'_~___ (~~_~L
1991 ................ . 19,665
1992................ . 39,288
1993................ . 23,552
1994 r ............. . 78,796
1995 - Jan.-June p..... . 76,369
1,190
6,876
1,306
41,822
20,217
18.496 178
31,059 1,353
22,062 184
36,810 164
55.906 266
1994 - June r " ...... .
July r ......... .
Aug.r ........ .
Sept ......... .
Oct.r ........ ,.
Nov. r ..
Dec. r. ........ .
1995· Jan. r ..... .
Feb ....... .
Mar ........ .
Apr. .
Mayp ...... .
June p ... , ..
3.362
5.063
9,756
4,671
2.647
2,760
60B
1,829
2,110
4.022
3,144
-1.810
10.922
-6.957
-3,717
5.821
7.358
6.544
10.30B
11.356
6.423
11.275
5.085
3,272
16,378
11,473
- - - --
·4,046
1,008
16,030
11,941
10,226
13,116
11,752
9,57B
14,103
9,211
6,400
14,519
22,57B
-451
-336
453
·8B
835
50
-212
-674
718
104
-16
-49
183
2,017,815
2.241.537
2,609,055
2,709,605
1,527,291
1.997.951
2,202.249
2,585.503
2,630,809
1,450,902
10.244
18,291
35,428
22,962
12,886
221,933
165.125
272.688
209.041
209,477
242,159
186,425
236.033
265,1BO
256,520
181,310
293.589
294,659
225,979
164,117
256,658
197,100
199.251
229,041
174,673
226.455
251,077
247.309
174,910
279,070
272.081
3,009
3.363
2,640
-798
824
2,966
2,040
1,997
1,943
2,569
2,066
1,684
2.607
67.161
111,166
149.097
160,552
57,775
56.917
92,695
113,669
137,590
44,889
16.915
20,769
30,572
38,602
27,117
7,707
6,946
6,453
7,066
7,513
6,027
7,448
5,210
6,643
9,769
8,727
8,635
9,931
Gross
foreign
sales
J'~)__ _
211.207
221.367
319,664
350,558
204,031
200,116
226,503
298.086
348,648
201,723
27,018
24,269
29,179
26,819
27,811
28,696
28,094
24.999
29,443
35.332
30,082
38,769
45,406
29.261
25,119
26,365
30.463
29,852
27,653
29,727
25,893
29,6B5
37.653
29,206
36,oB7
43,199
_____
85.935 69,020 11,091
103,736 62,947 -5,136
134,727 104,155 21.578
130,532 91,930 1,910
78,252 51,135 2,308
15,712 12.703 7,793 15.500
15.445 12.082 2,900 9,646
11.970 9,330 4,876 11,329
9.116 9,914 3,056 10,142
9.906 9,082 2,497 10.010
10.390 7,404 3,930 11,957
9,294 7,254 2,189 9,637
9.413 7,416 4.624 9,834
9,654 7,711 4,492 13,135
10,332 7,763 5,269 15,056
7,470 5,364 1,966 10,693
9.458 7,774 4,537 13.372
11.448 8.641 6,229 16.160
foreign
pur·
chases
!'~) __
·2,243
-830
2,614
-1,644
'2,041
1,043
-1,633
-B94
·242
-2.321
876
2.682
2,207
._---- - - - - - - - - - - ..- - - - - - - - - - - - -
1 Data include transactIOns In doreclly placed Issues abroad by U S. corporations and Issues
ot States and muniCipalities
TABLE CM-V-2.--Foreign Purchases and Sales of Long-Term Foreign Securities by Type
1I!l ~~n_s ?!~~I~r~..: negatl~! figures ,n,dlcate net sales bV forelgne,s or a n~t o~~~~.~f ~apltal from the United Slates. Source. Office
Calendar year
or month
--------------
1991 ... ." .... , .. .. ...... .....
1992..
1993 .........
1994 r . _......... _.......... ,
1995 - Jan.·June p_ .
1994 - June r .....
Julyr ......
Aug. r ..
Sept. r ...
Oct.r .....
Nov. r ...
Dec. r .. ... , ...... .. 1995· Jan. r . _
Feb....
Mar _.
Apr. ..... . . . . . . . . . . Mayp
June p - ..
of International Financial AnalYSIS)
Net foreign
purchases
01 foreign
securities
(1)
Net
foreign
purchases
(2)
-46,795
-47,664
·143,06B
-56.767
-29,982
-14.82B
-15.605
-80.377
-9.535
-16.031
330,311
513,589
745.952
848.131
433.355
345,139
529,194
626.329
857.666
449,386
-31,967
-32,259
-62.691
-47,232
-13,951
120,598
150,051
245,490
386,942
165,42B
152,565
162,310
308,181
434,174
179,379
-4.185
-5,918
-4,118
-114
-9.766
-6.043
-2,069
·961
-2.937
-4.033
-2.947
-7.926
·11,178
2.045
'2.778
258
·634
-5,339
-3.496
290
·802
-1.BS1
-1,189
·799
-4.294
-7.096
66.949
54,456
60.265
67.329
56.647
62,540
66,451
66.120
61.226
79.056
53.639
75.190
96,124
64.904
57,234
60,007
67.963
63.986
66,036
66.161
68.922
63.077
80.245
54.436
79.484
103.220
-6,230
-3,140
-4,376
520
-4,427
-2,547
-2,359
-159
-1,OB6
30,676
29,717
30,637
37,791
29,867
2B,444
26.332
26,303
27,154
28.995
24,485
29,213
29,276
36,906
32,857
35,213
37,271
34,294
30,991
28.691
26,462
28,240
31,839
26,633
32.645
33,360
F~eign
bonds
Gross
foreign
purchases
(3)
Gross
foreign
sales
(4)
______________~o~eign stClCk~ ___ ..
Net
Gross
Gross
foreign
foreign
foreign
purchases
purchases
sales
(5)
(6)
(7)
-2,844
-2,148
-3.632
-4,082
CAPITAL MOVEMENTS
95
TABLE CM-V-3.--Net Foreign Transactions in Long-Term Domestic Securities
by Type and Country
(In millions of dollars; negative figures indicate net sales by foreigners or a net outflow of capital from the United States. Source: OHice 01 International Financial Analysis]
Marketable Treasury
bonds and notes
U.S. Government corporations
and Federal agency bonds
1995
Corporate bonds
1995
Corporate stocks
1995
1995
Calendar
Jan.
Apr.
Calendar
Jan.
Apr.
Calendar
Jan.
Apr.
Calendar
Jan.
Apr.
year
through through
year
through through
year
through through
year
through through
______-=Co=u~nt~ry__________l~9~94~r__~Ju~n~e__~J~un~e~p__~1~99~4~r__~J~u~ne~_J~u~ne~p~~19~~~r__~Ju~n~e__~Ju~n~e~p___19~9~4__~Ju~n~e__~Ju~n~e~p
Europe:
Austria.. .. .. .. .. .. .. .. . .. ..
570
1, n2
220
-14
-24
-24
4
-31
-22
179
-16
-57
Belgium-Luxembourg. . . . . . . . . .
1,098
-306
-598
669
135
12
-3,910
-950
-249
657
-1,029
-404
Bulgaria.. .. .. .. . .. .. .. . ..
220
10
10
-3
Czechoslovakia . . . . . . . . . . . . . .
-65
17
26
6
6
1
Denmark.. .. .. .. .. .. .. .. . ..
256
642
-67
164
175
163
-71
-62
-49
171
33
17
Finland.. . .. .. .. .. .. .. .. . .. .
37
26
15
116
-8
2
-18
21
-5
-27
3
2
France.....................
-672
-1,047
-1,934
BB
112
136
154
-547
-939
-201
-757
-225
Germany..... ...... ...... . .
5,709
-3,801
-4,n9
83
64
-3
574
2.369
570
2.110
-1,468
-1.013
Greece.. .. .. .. .. . .. .. .. .. ..
38
967
594
11
1
1
46
80
63
12
2
-16
Hungary....................
-109
179
215
-10
-3
7
13
8
8
6
2
2
Ireland............. . ..... ..
-255
-195
-214
213
43
-9
688
42
-117
133
54
55
Italy. . . . . . . . . . . . . . . . . . . . . . . .
-555
86
236
4B6
381
183
362
-283
-273
323
-157
-72
Netherlands.. .. .. . .. .. .. . . ..
1,254
3,017
875
1.B50
-2BO
-76
1,472
414
171
1,399
2.251
593
Norway...... . .... . . . ..... . .
-74
424
220
74
-12
5
5
33
-31
11
Poland .. .. .. . .. . .. .. .. . .. ..
1,862
924
903
16
-16
-22
·13
Portugal. .. .. .. .. .. . .. . . .. ..
-178
52
-78
42
B
8
65
-28
-12
-9
-2
-1
Romania.... . . .......... .. . .
1
2
1
Russia 1....
103
2,070
1,933
21
19
14
2
1
14
-1
21
Spain......................
1,392
-3,690
-1,801
1,078
-51
-38
-70
171
106
-61
-41
-5
Sweden.... .. .. ........... .
794
296
204
71
172
149
-8
18
-2
324
279
175
Switzerland.. .. ...... ........
481
77
189
25
101
57
1.030
-36
-150
-30
-2.292
-1,350
Turkey.....................
-185
3
8
-3
-2
-3
4
24
9
United Kingdom. . . . . . . . . . . . . .
23,438
22,939
B,813
6,70B
7,382
2,656
26.575
22,971
12,233
840
2,643
2,750
Yugoslavia 2. . .. .. .. . .. .. .. . .
-26
~rE~~e ................ __~3~,«~B~~1~.~~3~~1,3~~~~~4~2~~~2~6__~~26~~~1~11~~~5~7__~~~~~~-1~7__~~«~~~~
~1~ro~ ............... ~~3~8~!~~~M~~~8~7~~6~~2~6~=1~1~~~4~~8~l~~~~a~264~~2~6j~9*4~2~4~l3~0~~11~~~~~~6~J~17~=-~1~~2~8~~~~2
~~ ...................... ~~3~A~~~~4~~~0~=-~~~7=~1~~~6~~4~~~~~~~6~=~~~2~~M~7~~3~14~~-1~,1~~~=-~1~~3~9~=-~OO~2
latin America and Caribbean:
Argentina ................. ..
Bahamas .................. .
Bermuda ................... .
Brazil .................... ..
British West Indies ........... .
Chile ...................... .
Colombia .................. .
Cuba...................... .
Ecuador....................
Guatemala..................
Jamaica........ ...... ......
Mexico............... ......
NetherlandsAntiUes...........
Panama.. ..... ..... .. ......
Peru.. .. .. .. .. .. . .. .. .. .. ..
Trinidad and Tobago ..........
Uruguay....................
Venezuela...... ............
-58
1,464
-4,152
-111
-13,917
-116
-349
1,264
864
-5,137
628
6,387
659
326
1.245
2,423
-1,728
600
5.855
623
241
444
221
1,123
5
-527
27
20
1
7
-3.024
10,633
100
-245
8
-44
-319
472
1
-25
895
508
-29
2
-1
47
794
27
-1
-14
514
2.322
-48
-17
10
37
158
-46
-~3
-1
11
2B9
1
19
18
-1
15
77
916
-4
-1,230
-1
10
9
-41
725
-5
-387
7
2
-5
17
-65
109
1
·4
-4
-22
-2
45
-34
54
1
-4
2
-2
52
327
729
-26
2,407
16
-1
-4
3
-10
103
784
-7
-3
7
13
35
30
107
863
-10
57
760
34
2
614
37
-6
54
-472
548
·11
1,228
94
·49
5
3
2
-3
1
1
111
202
23
3
1
18
20
-6
-1
6
101
-3,226
-4B
1
9
3
-401
252
7
35
-34
46
8
4
29
50
-«
-227
672
-112
100
-11
-28
-19
-10
1
-17
3,585
-84
-6
4
-40
-43
-2
61
-272
-17
421
6
-10
-10
-5
4
2.104
-51
1
2
-11
-2
Other Latin America
96
78
62
155
83
62
12
24
and Caribbean ............. ____....:-:!..77~~-:=:23~6~__.-!2~5__~_'2""5~__...::..::.__~~ _~~~__--'-"~__---"'''---~---=:=--___-.:.::....__--=.;.Total Latin America
-10.179
7,419
12,3B3
955
-92
447
4.487
2,100
1,411
-2,10B
3,709
2.195
and Caribbean ........... , =~::),g~d::;,~=~~=~~=~~=~=~~=~===~~===========
See footnotes at end of table.
CAPITAL MOVEMENTS
96
TABLE CM-V-3.--Net Foreign Transactions in Long-Term Domestic Securities
by Type and Country, con.
lin
millions 01 dollars. negallve "l1ures In~~_te r\~~~llIs. ~,!-.!.~elgners or a net outflOW of capital fro"'-.the United Statlls. Source: Office of fnternational Financial Analys~L
U.S. Government corporations
_ ~~ ~~9~r~! agency. bond~.
Marketable Treasury
bonds and notes
Country
Calendar
year
1994 r
Asia:
China:
Mainland ..
Taiwan ............. .
Hong Kong ... .
India ...................... .
Indonesia ...
Corporate bonds___
Corporate stocks
1995
1995
1995
---Jan.
Apr.
Calendar
Jan.
Apr.
Calendar
Jan.
Apr.
Calendar
through through
year
through through
year
through through
year
June __ JU!l_~p __l~~._Ju",n:::e_----,J:::u~ne~p,-------,,19:.::94,--,---,-r _----'J:::u::,::ne"-----=-Ju"'n=e..o::p_----'-'I99=4
1995
Jan.
through
June
Apr.
through
~une p
-1
12,205
-2,068
1,372
265
289
-64
128
-7
-8
-70
-374
-20
9
-34
-1
13
3,997
-6
-5
111
Other countries:
Australia. ...... .... .... ...
AHo~~ .................... _
-2
93
2
5
7
31
17
11
66
-24
-19
8
39
26
8
·30
·1
13
-18
-1
42
4
2
815
-216
784
28
124
73
50
126
8
630
729
699
-1:~~_9~2~6_~7~59~_~53~2~_~.26~_~1~3~_~~~_~.~9_ _~~~_~14~1~~.~~_~-~~~1
Total other countries ......... =~~~~~7~10~~1~,54::;;3~=;;;,=§56~0==;=;;=~9=:=8==:=~8~6===~94~::::::::~1¥17===~==7~7~1==3~7~9===36~8
Total foreign countries ...... ==7:=8::::,632===7:::6,=12;:::3==43:::,3:::7:::9==2==2,~234~~13~,1~5~1=~6~,~~3~~38~,44~5~~2g,7~,0~93~~1~2,~74~4=~1~19~OO~::J2,~366~~5~,7~84
International and regional:
International ................ .
European regional ........... .
Latin American regional ....... .
Asian regional .............. .
African regional ........ .
Middle Eastern regional .. .
Total international
and regional. ....... .
Grand total ..
526
-347
-154
-88
49
11
·101
155
108
68
51
25
-101
329
115
83
39
164
266
118
728
·265
-66
157
24
·12
10
·58
·19
78.196
76,389
43,497
22,962
12,886
6,377
38,602
27,117
12.132
1,910
2,308
5,765
-220
----
343
·25
16
54
340
-312
-93
171
46
11
-'0
44
10
-27
-4
·11
Beginning With senBS for December t 992 forward. data for all other republics ollhe former
U 5 5 R are reponed unOer -Omer Europe'
2 Beginning With senes lor December 1992 forward. data for the former Yugoslav republics
1
of Bosnia and Herzegovina Croatia. and Slovenia are reported under -Other Europe·
1
-2
2
-6
·1
-4
-8
6
2
-52
·16
30
-5
-1
4
·5
3
·2
3 Includes Bahrain, Iran. Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab
~m"ates (TrUClal States).
Includes Algeria, Gabon, Libya, and Nigeria.
CAPITAL MOVEMENTS
97
TABLE CM-V-4.--Foreign Purchases and Sales of Long-Term Securities
by Type and Country, During Second Quarter 1995, Preliminary ,
[In mllions of dollars. Source: Office
Country
Europe:
Austria .............
Belgium-Luxembourg .•
Bulgaria ............
Czechoslovakia .•....
Denmark............
Finland .............
France .............
Germany ...........
Greece .............
H~ ............
Ireland .............
Italy..........•••...
Netherlands .........
Norway .••...••••..•
Poland .............
Portugal. ...........
Romania ............
Russia 1 ............
Spain ..............
Sweden ............
SwiIze~and..........
Turkey .......•.....
United Kingdom ......
Yugoslavia 2.••.•..••
Other Europe ........
Total Europe ..•..••
Canada ..............
0' Inlernational Financial Analysis)
Gross purchases by foreigners
Domestic securities
Marketable
Treasury Bonds of
& Federal U.S. Gov'!.
Finane- corp. and
Total ing Bank lederally
Corporate
Foreign
pur- bonds sponsored
and other
securities
chases & notes agencies Bonds Stocks
Bonds Stocks
(1)
(2)
(3)
(4)
(5)
(6)
(7)
3,937 3,369
8,901 3,092
39
31
828
815
5,301 3,266
3,676 3,455
34,279 24,233
21,411 14,398
1,648 1,332
514
417
5,808 3,356
8,482 3,703
17,341 10,846
2,009 1,482
1,557 1,492
321
229
1
1
4,784 4,653
9,152 7,067
5,489 1,216
16,126 5,086
546
364
493,783297,951
2
401
1,017
2
229
63
2
7
118
209
378
8
20
16
164
143
24
B26
7
5
287
1,261
74
68
761
104
330
8
7
317
2,220
226
18
2,452
2,068
162
5
385
2,351
2,904
154
2
24
115
l,8n
B
4
627
56
4,422
1,215
39
17
550
1,302
924
248
60
12
110
485
2
160
145
2,656
2,406
39
638
813
1,959
117
3
41
Gross sales by foreigners
Domestic securities
Marketable Bonds
Treasury oIU.S.
& Federal Gov'!.
Rnane- corp. and
ing Bank federally
Corporate
Total bonds sponsored
and other
sales & notes agencies Bonds Stocks
(8)
(9)
(10)
(11)
(12)
3,884
10,234
31
790
5,534
3,824
37,493
26,819
988
271
6,099
8,476
16,698
2,095
651
512
3,149
3,690
21
789
3,333
3,440
26,167
19,177
738
202
3,570
3,467
9,971
1,262
589
307
26
389
854
93
66
1
127
26
454
46
1,075
1
54
5
1,226
691
11
60
878
an
159
3
19
7,753
18
67
7
191
231
806
762
2,497
36
1,010 7,230
1,126
11
40
46
23,926 31,361 100,521
2,809
2,720
19
841 11,533
8,868
814
4,887
1,012
1,531 18,000
4,897
85
356
509
32,271 478,817 289,138
5,097
6,810 6,102
652,743 397,956
132,588 57,698
77
101609
517
399
127
86
29,069 53,289 116,666
1,821 12,327 54,684
19
5,304
4,767
45,154 646,258 391,630
5,541 136,019 58,455
4,579 1,506
15,190 7,624
51,511 23,605
7,214 2,112
48,555 29.625
1,520 1,111
960
874
25
1,025
3,559
5
3,346
14
11
145
30
57
31
34
4,534 I,m
38,348 21,567
129
1.362
114
1
44
5
37
504
1.636
886
4
Foreign
securities
Bonds Stocks
(13)
(14)
374
2,624
124
2,018
10
165
438
209
16
2,677
3,081
178
3
330
2,423
2,311
143
15
25
m
307
341
2,847
2,730
40
6
604
1,023
1,729
22
4,483
1,074
20
590
1,160
2,074
223
22
5
464
25
156
6
125
38
1,160
11
11,693
19
45
1,045
196
587 2,108
1,242
8,580
40
6
28,611 109,594
13
1,245
1,127
2,035
96
34,684
51
7,345
211
34
17,672
345
83
52,787 126,725
13,189 57,418
24
50,099
5,239
6
54
15
86
1,507
Latin America
and Caibbean:
Argentina ...........
Bahamas ...........
Bennuda............
Brazil ..............
British West Indies ....
Chile ...............
Colombia ...........
Cuba...............
Ecuador ............
Guatemala ..........
Jamaica ............
Mexico .............
Netherlands Antilles ...
Panama ............
Peru ...............
Trinidad and Tobago ..
Uruguay ............
Venezuela ..........
Other Latin America
and Carilbean •. : ..
Total Latin America
and Caribbean ...•
See Iaotnotea at end of table.
1,911
324
178,218 90,644
357
623
2.369
729
1,713
176
11
3,857
12,612
51,918
6,779
41,812
1,080
793
261
5,201
25.333
1,512
23,nO
488
633
16
1,066
2,834
10
3,733
7
11
68
910
1,475
7
1,337
25
10
134
2,822
9,926
95
7,976
102
44
2,860
2,236
10,366
4,271
3,505
333
37
518
3n
1,984
884
1,491
125
58
97
7
6
1,330
2,421
250
2
28
347
509
3
32
14
663
19,245
3
m
7
20
779
163
3
2
1
45
568
98
36
20
1
6
26
597
5
3
14
1
11
15
23
21
21
323
8,119
618
18
6
61
176
123
1
5
1,292
1.847
244
2
4
319
1
3
1,479
2,622
78
88
156
59
48
3,798
32,914
1.381
169
22
467
1,283
1,064
16
1,847
299
91
82
197
1,170
8
78,261
8,762
4,658
30,682
29,079
9,553
132
2,883
9.654
78
8,397
108
34
2,501
2,068
10,597
4,276
3,523
49
26
5
65
745
217
1
1
5
12
13
16
3
21
2
327
156
no 10,223
567
121
19
3
8
2
50
29
174
35
169
165
173
9,209
58
967
1.727
14
1,951
62
4
6,069 32,m
29,101
10,318 160.995
464
1,455
2.356
81
148
47
17
CAPITAL MOVEMENTS
98
TABLE CM-V-4.--Foreign Purchases and Sales of Long-Term Securities,
by Type and Country, During Second Quarter 1995, Preliminary, con.
Country
Gross purchases by foreigners ...
Domestic securities
Marketable
Treasury Bonds of
& Federal U.S. Govl
Finane- corp. and
Total ing Bank federally
Corporate
Foreign
pur.
bonds sponsored
and other
securities
chases & notes agencies Bonds -StoCks
Bonds '--StOcks
(1)
... _.- ..
(2)
_-
(3)
(4)
(5)
.. ' - -
(6)
(7)
241
354
4,401
27
101
4,515
29
159
88
11 ,512
344
Gross sales by foreigners
-.'--_.. -'DomesHc' securities
.
Mark9faEie --Sonds .- - -_._-- .
Treasury
& Federal
Finaneing Bank
Total bonds
sales & notes
(8)
-~~----':"-'-----'-'--
(9)
of U.S.
Gov"!.
corp. and
federally
Corporate
sponsored
and other
agencies --BOndS Stocks
Foreign
securities
Bonds Stocks
(11)
(12)
(13)
(14)
97
49
8B
8
487
263
76
3,347
61
27
1,052
15
171
146
5,093
64
83
173
9,060
375
126
101
5,704
65
287
342
14,616
586
2
22
2
44
414
1,260
34
46
214
4,288
60
24
103
15
41
1,520
866
9
274
1,541
74
741 __8=2~1~~2,~33~7~_1~=
9,947 17,033
5,023 3,466
404
2«
25,166
(10)
Asia:
China:
8,076
421
Mainland ..... .
8,853
1,680
74
2,582
Taiwan .......... .
416
26,009 14,937
Hong Kong ......... .
110
52
India .............. .
1,027
1,275
Indonesia .......... .
3,219
3,618
63
Israel ............. .
4,242
162,494 131,059
Japan ............. .
1,833
875
3,385
Korea ....... .
39
Lebanon ........... .
10
1,272
502
Malaysia ........... .
2
35
2
Pakistan ........... .
420
192
33
Philippines ......... .
176
32,508 23,694
Singapore .......... .
7
Syria .............. .
1,982
1,590
Thailand ..... .
Other Asia ... .
.. _.15,508 .IQ,980_~...?
260,097 198,843
7,374
Total Asia ..
Africa:
Egypt ........... ..
Ghana ............ .
Liberia ............ .
Morocco ........... .
South Africa .
Zaire ...... .
Other Africa .
Total Africa
161
5
386
52
50
13
64
1,118
7,411
7,898
1,886
1.129
27.040 14,233
83
246
1,274
1,695
3,260
2,428
150,059 117.696
2,333
1,236
4
34
1,800
771
1
27
221
621
22,894 17,513
345
80~_ 2,30.~.~_1~3._
186
3,046 13,482 18,182 19,170
1,329
829
14,710 10.375
235,839 175,204
131
43
350
1,388
27
38
144
3.914
40
33
69
14
68
5,025
5
14
28
26
40
8
22
92
5
6
45
23
352
59
1,596
18
1
1
3
2
610
1,313
51
45
10.171
275
5
24
666
14
66
59
2,364
49
125
5
372 ____2~
482
102
._JL_
90
6
26
98
173
1
336
45
86
337
5
36
1
4
55
1,194
1,028
4
18
4
39
88
7
54
273
7
51
6
15
52
83
23
58
1
83
3
1
4
1
1
8
5
7
7
1
150
1
3
11_8___ ~. __ .. _ 51 _---'20:::9-"..2__----'-'13"-'1__---'2"-'4'---__ 7 _ _9L __2_1 _ _ 12
290
179
170
1,140
237
113
48
244
167
331
Other countries:
Australia ...
All other. . . . . . . .
11.951
4,950
3.726
99
78 1,718
4,253
2,077
10,378
2,942
26
70
1,019
4,367
1.954
3,2""54-,------,3,,,,3=-0_--"26"------=2::::69~--=6""23"----~«~8~_42,7~8~1_=.,2,~49~5__~3~1.!...7~~34::!..----.:6~0~0~~906~~~429
To~~~gl~:~
16.901
6.980
429
104
1.987
4.876
2.525
15.159
5.437
343
104
1.619
5,273
2,383
To~~~~~e~~n ...... =~1,==24=1.=86=0=7=52~,6~03===2=8.==24=0=4=0,=19=9=1=1=4,=25=2==22~3~.68=8~~82~,8~7=8~1,~19~5,~41~O~70~9~,2~24~2~1~,7,;97~~27::;,4~55~1~0~8,~46~8~23~5~,6~95~~92~,n~1
International and regional:
International . . . . . . . . .
European regional ,
Lalln American
regional .....
Asian regional .
African regional
Middle Eastern
regional.
Total International
and regional .
Grand total. .....
14.049
242
12.750
188
14
3.667
261
120
3.550
217
104
89
21
12
1,194
54
10
11
3
2
16,955
136
1,260,345 769.558
28,376
14,359
300
13,097
289
107
3,654
130
60
3,221
102
21
45
18
11
12
_______ . 112
107
15
2
8
4
146 . _!4_6__ ... .
18.485
90
26
5
1.265
98
40,225 114,257 224.953
, Begmn.ng With series for December 1992 forward. data for all other republiCS of Ihe former
U S S R are reponed unoer 'Other Europe •
18,615
16,837
3
1,084
11
19
4
67
351
1
39
_ _ _5"'---_~~_ _
202
82.976 1,214,025 726,06 1 21.999
38
24
1,447
67
27.493 108.492 237,142
92,838
Beginning Wllh series for December 1992 forward, data for the former Yugoslav repubfoCS
of Bosnia and Herzegovina. Croaua, and Slovenia are reported uncler 'Other Europe."
1
CAPITAL MOVEMENTS
99
TABLE CM-V-5.--Foreign Purchases and Sales of Long-Term Securities
by Type and Country, During Calendar Year 1994
'
[In millions of dollars. Source: Office of International FinanCial Analysis)
Country
Europe:
Austria .............
Belgium-Luxembourg ..
Bulgaria ............
Czechoslovakia ......
Denmark...... , .....
Finland .............
France .............
Germany ...........
Greece .............
Hungary ............
Ireland .............
Italy................
Nethertands .........
NorwaV· ...........
Poland .............
Portugal ............
Romania ............
Russia 1 ............
Spain ..............
Sweden ............
Switzerland. . . . . . . . ..
Turkey .............
United Kingdom ......
Yugoslavia z.........
Other Europe ........
Total Europe .......
Canada ........... '"
Latin America
and Caribbean:
Argentina ........ ' ..
Bahamas ...........
Bermuda............
Brazil ...........•..
British West Indies ....
Chile ...............
Colombia ........ '"
Cuba...............
Ecuador ............
Guatemala ....... " .
Jamaica ............
Mexico .............
Netherlands Antilles ...
Panama ........... ,
Peru ...............
Trinidad and Tobago ..
Uruguay ........ '" .
Venezuela ..........
Other Latin America
and Caribbean .....
Total Latin America
and Caribbean ....
see footnotes al end of lable.
Gross eurehases b~ foreigners
Domestic securities
Marketable
Treasury Bonds of
& Federal U.S. Gov'!.
Finane- corp. and
Total ing Bank federally
Corporate
purbonds sponsored
and other
chases & notes agencies Bonds Stocks
(1)
(2)
(3)
(4)
(5)
7,379
4,768
39,450
17,201
285
220
2,440
2,435
14,778
8,441
16,536
13,714
132,185
77,685
72,699
36,260
2,393
1,831
3,571
3,362
14,825
7,125
32,714
10,746
44.248
12,354
12,796
9,925
3,214
3,062
1,225
782
1
1
348
132
33,747
23,598
24,936
12,654
72,436
27,016
2,391
1,093
1,913,885 1,083,666
98
23,811
21,672
2,472,391 1,379,743
23
3,733
145
2,670
2,017
340
1,330
438
34
66
29
1,501
2,214
1,398
2,715
5,205
164
1,148
1,010
2,019
11
16
83
62
23
1,191
81
293
1
46,528
557
66,133
66
53
Foreign
securities
Bonds Stocks
(6)
(7)
1,009
8,509
2
905
529
4,699
2,638
63
1
4
681
2,547
1,026
79
632
1}42
8,236 32,189 10,644
10,523 7,164 16,100
274
82
106
9
72
75
913
2,607
1,634
1,075
5,942
5,226
12,477
3,065
9,128
712
259
1,725
54
8
74
36
66
196
Total
sales
(8)
6,617
42,331
88
2,528
15,902
17,204
133,429
65,465
2,569
3,635
14,679
32,931
40,978
13,627
1,817
1,454
14
87
69
23
232
156
851
4,029
3,922
32,179
82
2,200
4,016
5,903
27,148
3,454 25,182
4,929 11,562
69,528
140
14
99
1,044
1,938
66,411 98,055 479,105 140,120 1,844,328
6
4
120
88
214
567
648
153
20,351
81,464 177,630 553,843 213,578 2,391,084
322,337
134,033
3,636
7,340
38,032 122,957
13,758
46,314
135,894
12,542
239,761
2,598
1,418
694
12,967
77,551
1,330
142,608
797
964
813
1,638
14,112
103
30,361
51
22
985
1,878
5,648
72
8,414
70
41
523
9,598
17,553
730
31,879
415
238
166
104
118
40,432
197,712
10,468
537
180
3,264
3,644
40
6
21
10,152
139,243
503
2
8
132
854
41
11
41
421
7,025
1,661
1
19
24
192
5,872
989
660
714,782
388,861
57,196
Gross sales b~ foreigners
Domestic securities
Marketable Bonds
Treasury of U.S.
&Federal Govl
Finane- corp. and
ing Bank federally
Corporate
bonds sponsored
and other
& notes agencies Bonds Stocks
(9)
(10)
(11)
(12)
4,198
16,103
2,500
8,185
13,677
78,357
30,551
1,793
3,471
7,380
11,301
11,100
9,999
1,200
960
29
22,206
11,860
26,535
1,278
1,060,228
18,224
1,341,135
37
3,064
141
6,580
830
7,852
1
1,853
224
1,242
355
23
10
1,185
2,229
3,355
90
137
47
1,347
1,640
20
40
460
648
547
23
510
106
8,437
8,413
262
3
780
6,752
10,226
679
20
18
45
70
Foreign
securities
Bonds Stocks
113)
(14)
808
6,228
87
16
2,648
391
31,325
6,915
252
2,339
6,323
6,463
750
454
85
603
2,504
12
2,569
2,759
12,721
17,591
219
111
2,535
5,684
9,287
2,086
93
326
2
12
73
52
64
113
226
912
4,499
4,223
10
90
1,876 4,373
8,939
268 2,424 25.212
4,273 10,816
4
17
75
151
413
39,820 39,836 97,215 460,941 146,288
114
6
515
103
584
601
324
54,419 54,470 170,913 539,980 230,167
16,339
324,529
130,542
1,670
6,348
39,192 127,991
7,388
18,907
14,032
5,852
17,932
551
53
3,355
1,326
6,798
4,455
8,567
714
100
17,548
43,665
143,293
19,165
249,993
3,797
2,657
752
11,503
81,703
1,441
156,525
913
1,313
369
1,417
12,989
98
30,888
24
21
933
1,551
5,119
98
6,007
54
42
469
10,070
17,005
741
30,651
321
287
9,943
17,853
17,991
11,488
16,865
568
565
5,082
1,271
8,486
5,299
9,057
1,917
429
61
64
28
341
1,877
4,348 25,531
262
1,657
57
3
33
7
44
398
684
161
13
14
28
9,305
12,176
1,050
25
7
2,232
1,379
2
3
20
58
1
4
263
7,071
2,204
13
67
65
10
22
1,776
23B
3,564 28,757
1,705
269
6
56
24
31
395
126
1,085
70
3
5
16,336
9,389
5,335
449
106
434
374
234
85
183
46,735
192,026
5,820
1,228
111
3,142
4,399
6
6
1
19,541
10,015
381
863
85
670
485
330
681
2,952
260
22,819
92,007
93,896
60,003
9
6
5
14
13,176
128,610
403
247
6
176
1,173
193
6,136
1,066
635
268
740,217
399,040
56,241
16,332
132
11,741
14,009
858
56
2
1,864
1,337
18,786
3,on
471
94,115 108,424
64,065
619
CAPITAL MOVEMENTS
100
TABLE CM-V-S.--Foreign Purchases and Sales of Long-Term Securities,
by Type and Country, During Calendar Year 1994, con.
{In m,'/lo!!s ~ doll~r~ So~r~ ~ce o!.~t~~,:,~f~"a! Fjn~~a!..Analysjsl _ _ _ _ _ _ _ _ ._._ ._. _.. _
Country
Asia:
China:
Mainland .. , ..
Taiwan .....
HongKong .. ," .... ,
India ....... , ..... , .
Indonesia ...........
Israel........... " ..
Japan ............. ,
Korea ..............
Lebanon .. .. ...
Malaysia ............
Pakislan ............
Philippines .. . . .. ...
Singapore ..... , .....
Syria ...............
Thailand .......... ..
OtherAsia ..........
Total ASia, .. , .
Alrica:
Egypt .... , .... , ....
Ghana .......... , ...
Uberia .......... , ...
Morocco ........ , ...
South Africa .........
Zaire ...............
Other Africa .........
Tolal Africa ..... , ..
Gross purchases by foreigners
Domestic securities
Marketable
Treasury Bonds of
& Federal U.S. Gov'!.
Finane· corp. and
ForeIgn
Corporate
TOlal ingBank federally
bonds sponsored _~.Qt~~_ .
pur·
_.~uriIL~~
chases & noles agencies Bonds Stocks Bonds Slocks
(1)
_(?l........ t~_ ~._~ .__..®..-..-ill...
51
156
68 1.112
488
162
662 1,128
2,800 4.408 9,524 23,392
101
74
32
1
175
518
154
60
455
294
594
582
7.974 18.870 36,233 47,587
159
128 1.060 1.690
11
87
82
251
119 4,133
532
6
1
1
27
94
2
487
2,131
43
290
410
306
1,566 2.299 3,513 1,855 6.005
111.982
17
1
147
357 1,480
17
2.393
1,317
3,418 8.441
940
~~,493 .. 27.9?J_ 6.406
918.425 684.805 30,658 17.806 38,000 59,777 87.379
21.542
14,434
114.288
970
2,710
11,696
523,160
7,218
189
32.301
125
3.667
133,220
18
4,394
19.526
10.448
72.204
759
1,802
9.531
395.085
3.702
9
27.260
192
58
1.914
5
884
4
26
2
41
83
18
22
58
876
290
129
1
47
325
258
36
1
320
3
.,?,?31 -"- .1.3S? _J.2_ _ .~. .?1i_~7P
241
318
783 1,066
5,288
2.288
332
28
629
1.546
1.960
3
1
240
17,411
479
4
156
1
143
592
. G..r~ S!'~es tlY lorei~~ers
- --·.:~~~~~~!ic~Jlriti~ ..
Marketable Bonds
Treasury oIU,S.
& Federal
Govl
Finane- corp. and
ingBank federally Corporate
Total
bonds sponsored and other
& notes agencies Bonds' -Stacks
sales
(10)
(12)
(9)
(11)
(8)
9.136
15.134
111.008
1,116
4.061
14,224
504.394
8,592
144
31,327
258
3,530
128.396
12
4,124
49.624
885.080
7,321
12,516
70,832
494
1,513
9,882
365.567
3,282
10
25,628
60
392
14,108
254
4
17
1.935
109,132
728
2,125
27.526
637,763
10
5,819
23,657
149
96
1.743
24
1,636
7
1.838
32
5
5,493
Other countries:
9,023 7,612
427 3,031
79
55.704
54,866
34.694
Australia ............
134
706 2.442
827
4.650
1.325
12.142
All other ... " .... , .. _1.0.084.
Tolalother
11,465
1,404
561
64,950
8,439
67,846
3.737
39.344
countries ........
Tolal foreign
4.498.173 2.629.074 159.345 130.231 350.189 843,004 386.330 4.414.249
countries .......
Internalional
and regional:
478
187
322 4,402
612
83,525
77.524
82.304
Inlernational .........
651
370
978
1.021
European regional . , ..
Latin American
91
1,210
72
38
325
1,821
1,736
regional ...........
54
9
15
9
634
506
593
Asian regional..... , ..
14
15
248
603
490
880
AfrIcan regional .....
Middle Eastern
341
regional , , " ... , , . , _._~.L_ 392
TOlallnternational
5.127
80,531
1.207
301
369
612
88.147
86.568
and regional .....
Grand total .. ' , , . 4,586.320 2.709,605 160.552 130.532 350.558 848,131 386,942 4.500.817
.. _-- ---- "... - - _ . ---« ----- -----------.
1
~M'ng
WRn senes lor December' 992 torward. dale lor all OIher repubhcs o' \he lormar
uSA are ••portell u"llllr ·OI~e' Europe"
2
131
503
1,626
5
224
52
152
980
1
3
140
5.791
67
15
275
12
927
3
47
3,418
11,883
Foreign
securities
Bonds .
(13)
Stocks
(1~)
89
637
906
820
766
377
4,408 7,368 25,794
29
69
523
179
821
1,485
679 2.104 1.027
17,680 38,946 62,302
98 1,521 3,370
101
13
1
586
662 4,159
49
119
90
289
766
523
4,964 6,631 6,014
9
84
186 1,672
10,245 1,726
890
40,349 62.292 109,136
10
75
121
1
143
881
1
174
1,278
20
90
49
20
496
12
1
209
1.225
2,048
56
280
11
286
375
3
95
1
205
754
33,879
6.035
51
793
377
90
2,401
565
9,926
3,116
9,070
1.543
39,914
844
467
2.966
13.042
10.613
765
21
2.550.442 137.111
5
161
847
91,786 348.289 853,007 433,614
76.998
871
135
25
16
320
4.278
B2
1,364
594
199
56
32
7
279
17
263
90
13
25
479
144
359
557
3
3
341
80,367
2,630,809 137,590
4,659
560
91,930 348,648 857,666 434,174
BB~onnll:JI w'\h senes lor Dec:ember , 982 lorwaRl. data for former YugCllfav I'If!UbIic:s of
BDsn a an HerzegoVIna. Croatia. and Slovenia are repolt8d under "Other Europa.'
CAPITAL MOVEMENTS
101
CHART CM-D.--Net Purchases of Long-Term Foreign
Securities by U.S. Investors *
(In billions of dollars)
160
140
120
100
80
60
40
20
0
1980-89
_
1992
1993
Foreign bonds
Type
1994
_
1995
1995
Jan.-June
Apr.-June
Total foreign securities
1994 Jan.-June 1995
Apr.·June 1995
• Net purchases by U.S. investors equal net sales by foreigners, or gross sales
minus gross purchases 01 securrties.
1 Annual average.
Annual U.S. net purchases offoreign stocks and
bonds in recent years stand in marked contrast to the
comparatively low levels of average annual activity
throughout the 1980's. The remarkable growth of
U.S. net purchases of foreign securities is due
largely to a trend toward international diversification among U.S. institutional investors.
The chart and table show that U.S. investors' net
purchases of foreign securities have been substantial
in recent years, particularly in 1993 when net pur-
chases of both foreign bonds and foreign stocks
reached record highs. In 1994, U.S. net purchases of
foreign bonds plunged. As of the first half of 1995,
however, net purchases of foreign bonds were already 68 percent greater than in all of 1994. U.S. net
purchases of foreign stocks also declined in 1994
and were diminished further in the first quarter of
1995. The second quarter, however, showed renewed momentum in net purchases of foreign
stocks.
102
INTRODUCTION: Foreign Currency Positions
The "Treasury Bulletin" publishes series on foreign currency holdings of large foreign exchange market participants.
The series provide information on positions in derivative
instruments, such as foreign exchange futures and options. that
are increasingly used in establishing foreign exchange positions but were not covered in the old reports.
more than $1 billion equivalent in foreign exchange contracts
on the last business day of any quarter the previous year (end
March. June. September. or December), Exemptions from
filing the quarterly report are given to major nonbank market
participants that file weekly and monthly repons, and banking
institutions that file FFIEC 035 reports.
The information is based on reports of large foreign exchange market participants on holdings of five major foreign
currencies (Canadian dollar. Gennan mark. Japanese yen.
Swiss franc, and pound sterling). U.S.-based businesses file a
consolidated repon for their domestic and foreign subsidiaries. branches, and agencies. U.S. subsidiaries of foreign entities file only for themselves. not for their foreign parents.
Filing is required by law (31 U.S.c. 5315: 31 C.ER. 128.
Subpart C).
This information is published in five sections corresponding to each of the major currencies covered by the reports.
Tables I-I through V-I present the foreign currency data
reported weekly by major market participants. Tables 1-2
through V-2 present more detailed currency data of major
market participants. based on monthly Treasury and FFIEC
035 reports. Tables 1-3 through V-3 present quarterly consolidated foreign currency data reported by large market participants and FFIEC reporters which do not file weekly reports.
Weekly and monthly reports must be filed throughout the
calendar year by major foreign exchange market participants,
which are defined as market participants with more than $50
billion equivalent in foreign exchange contracts on the last
business day of any calendar quarter during the previous year
(end March. June. September. or December). Such contracts
include the amounts offoreign exchange spot contracts bought
and sold. foreign exchange forward contracts bought and sold.
foreign exchange futures bought and sold. and one half the
notional amount of foreign exchange options bought and sold.
Exemptions from filing the monthly report are given to banking institutions that file the Federal Financial Institution Examination Council (FFIEC) 035 report ("Monthly
Consolidated Foreign Currency Report").
A quarterly report must be filed throughout the calendar
year by each foreign exchange market participant that had
Principal exchanged under cross currency interest rute
swaps is reported as pan of purchases or sales of foreign
exchange. Such principal is also separately noted on monthly
and quarterly reports. The net options position. or the net
delta-equivalent value of an options position. is an estimate of
the relationship between an option's value and an equivalent
currency hedge. The delta equivalent value is defined as the
product of the first partial derivative of an option valuation
formula (with respect to the price of the underlying currency)
multiplied by the notional principal of the contract.
The substantial revisions in this issue's quarterly reports of
large market participants correct for an error in the program
that aggregates data for publication. This adjustment does not
affect the underlying data series or other Foreign Currency
Positions tables.
FOREIGN CURRENCY POSITIONS
103
SECTION I.--Canadian Dollar Positions
TABLE FCP-I-l.--Weekly Report of Major Market Participants
[In millions of Canadian donars. Source: Office of International Financial Analysis]
Spot, forward,
and future contracts
Purchased
(1)
Sold
(2)
Net options
positions
(3)
Exchange rate
(Canadian
dollars per
U.S. dollar)
(4)
01/04195.. ........... . .........
01/11/95.. .....................
01/18195.. .....................
01/25/95.. .......... ...........
176,484
185,286
199,537
207,584
173,795
181,860
195,805
204,006
·644
·144
·496
·650
1.4025
1.4111
1.4215
1.4120
02101/95. , .....................
02108/95. ......................
02115195. ............ , .........
02122/95. , .....................
206,116
211,843
215,965
222,754
202,998
209,040
211,891
218,145
·1,293
·1,328
·1,367
·1,626
1.4079
1.3961
1.4035
1.3966
03101/95 .. .......... , ..........
03108195 .. .......... , ..........
03115/95. .....................
03122195 .. .....................
03129195 .. .....................
217,871
222,885
212,326
208,656
204,873
212,871
218,651
207,645
204,961
200,174
·1,695
·1,562
·2,131
·1,869
·1,714
1.3983
1.4125
1.4122
1.4027
1.4040
04/05/95 ...... .................
04112195 . ......................
04119195 ...... .................
04126195 ...... .................
202,656
209,770
204,783
200,454
197,900
205,731
200,021
196,239
·1,423
·1,466
·1,251
·1.112
1.3920
1.3780
1.3722
1.3618
05/03195.......................
05/10/95 ..... ..................
05117/95 ...... .................
05/24/95 .••.. ........•.........
05/31/95 .•.... .................
201,936
202,172
205,096
202,500
196,762
197,702
198,785
200,987
196,130
189,388
·1,668
·1,295
·2,813
·3,074
'3,037
1.3626
1.3550
1.3556
1.3650
1.3708
06107195....... ...............
06114/95..... ..................
06121195.......................
06128195.......................
192,850
196,775
193,048
193,211
184,054
188,026
183,956
184,743
·3,197
·3,191
·3,278
·3,288
1.3800
1.3799
1.3815
1.3750
Report
date_.
TABLE FCP-I-2.--Monthly Report of Major Market Participants
lin millions of Canadian dollars. Source: Office of International Financial Analysisl
Options positions
Purchased
(1)
Sold
(2)
Assets
(3)
Liabilities
(4)
Bought
(5)
Written
(6)
Bought
(7)
Written
(8)
Net delta
equivalent
(9)
Cross
currency
interest
rate
swaps
(10)
159,812
168,735
170,318
170,112
174,482
170,552
212,150
215,922
208,704
194,797
198,106
189,407
155,456
163,639
166,183
164,972
171,478
168,063
210,144
212,306
204,873
192,023
196,685
184,766
36,715
39,718
40,808
38,971
44,330
41,737
48,397
46,337
42,898
42,378
42,133
48,331
35,262
39,575
39,034
39,091
40,752
43,351
46,493
45,374
42,168
42,176
38,602
48,181
13,278
14,582
17,285
14,846
13,544
11,489
14,216
14,961
13,809
15,600
15,552
12,800
17,204
17,969
18,880
16,222
14,804
11,681
14,739
16,874
16,179
15,935
17,037
14,254
16,693
15,796
14,698
14,375
14,240
11,521
17,494
19,393
16,252
15,653
16.384
13.896
11,635
12,279
11,622
11,686
11,859
9,574
15,098
16,375
14,463
13,051
12,750
10,324
·2,398
·2,307
·823
-1,172
·1,518
·6
·1,244
·1,655
-1,319
·1,095
·2,985
·2,990
65,017
65,667
66,423
68,452
67,298
65,265
66,361
63,089
66,446
64,655
61,111
67,809
Spot, forward,
and future contracts
Report
date
1994· July ........
Aug........
Sept. .......
Oct.. .......
Nov........
Dec........
1995· Jan .........
Feb........
Mar........
~r.........
ay ........
June .......
Non·capital items
Puts
Calls
Exchange
rate
(Canadian
dollars per
U.S. dollar)
(11)
1.3868
1.3674
1.3435
13536
1.3762
14030
1.4073
1.3905
1.3996
1.3565
1.3708
1.3727
TABLE FCP-I-3.--Quarterly Report of Large Market Participants
[In millions of Canadian dollars. Source: Office of International Financial A~,,~sis]
Oplions positions
Spot, forward,
and future contracts
Report
date
1994 -Mar. r......
June r .....
Sept. r .....
Dec. r ......
1995· Mar........
- - -
Calls
Non·capital items
Puts
Purchased
(1)
Sold
(2)
Assets
(3)
Liabilities
(4)
Bought
(5)
Written
(6)
Boughl
(7)
Written
(8)
37,280
39,719
43,368
38,506
36,251
35,010
38,431
39,850
36,984
37,067
62,303
62,047
57,265
46,557
44,693
60,686
63,051
50,817
43,591
42,866
2,371
5,167
5,600
3,501
3,184
2,347
4,156
4,487
2,873
2,646
5,609
2,971
3,181
3,632
2,872
3,033
3,032
3,192
3,054
2,432
Net delta
equivalent
(9)
-990
231
697
-298
268
Cross
currency
interest
rate
swaps
(10)
Exchange
rate
(Canadian
dollars per
U.S. dollar)
(11)
13,653
13,784
14,209
14,637
15,185
1.3839
1.3835
1.3435
1.4030
1.3996
FOREIGN CURRENCY POSITIONS
104
SECTION II.--German Mark Positions
TABLE FCP-II-l.-Weekly Report of Major Market Participants
[In millions of German marks. Source: Office of International Financial Analysis)
Purchased
(1)
Sold
(2)
Net options
positions
(3)
Exchange rate
(Deutsche
marks per
U.S. dollar)
(4)
01/04195. ..................... .
01111195. ..................... .
01/18195 . ..................... .
01125195...................... .
1,860,434
2,077,583
2,037,721
2,017,175
1,855,127
2,070,782
2,024,678
1,997,851
15,119
13,396
14,144
14,346
1.5595
1.5368
1.5351
1.5180
02101/95. ..................... .
02108195. ..................... .
02115195 . ..................... .
02122195 .. .................... .
1,967,536
1,960,839
1,989,587
2,083,266
1,951,595
1,944,079
1,972,074
2,069,243
13,812
14,258
12,549
14,089
1.5195
1.5316
1.5103
1.4695
03101195...................... .
03108195 ...................... .
03115195........... , ......... .
03122195...................... .
03129195 . .......... , .......... .
1,964,049
2,163,475
1,953,403
1,986,131
1,964,050
1,954,321
2,149,854
1,935,611
1,963,878
1,945,545
12,516
12,598
13,746
12,562
11,693
1.4627
1.3952
1.3905
1.4030
1.3825
04105195 ...................... .
04112195 .. ......... , .......... .
04119195 .. ......... , .......... .
04126195 .. .................... .
1,920,087
1,942,022
1,912,677
1,893,671
1,908,907
1,926,299
1,895,312
1,883,390
13,084
12,299
12,558
11,197
1.3738
1.4000
1.3718
1.3685
05103195...................... .
05110195 . ..................... .
05117/95 .. .................... .
05124195 .. .................... .
05131/95 ... ................... .
1,784,693
1,846,868
1,891,781
1,835,235
1,797,256
1,775,234
1,835,051
1,877,942
1,823,820
1,781,997
12,304
7,994
7,819
9,331
7,380
1.3738
1.3882
1.4458
1.4398
1.4160
06107/95 .. .................... .
06114195 .. .................... .
06121/95 .. .................... .
06128195 .. .................... .
1,803,357
1,845,058
1,656,791
1,750,727
1,789,284
1,827,467
1,632,629
1,728,977
8,277
7,975
8,557
7,942
1.4085
1.4015
1.3845
1.3980
Spot, forward,
and future contracts
Report
date
TABLE FCP-ll-2.--Monthly Report of Major Market Participants
lin millions of German marks Source: Office of Inlernational Fln.8IIfia.I.~SisJ
---_ ....
Oetions ~sitions
;Sot, forward,
a future contracts
Report
date
Purchased
(1)
1994 - July ........ 2,218,014
Aug........ 2,164,372
Sept.. ...... 1,925,639
Oct.. ....... 1,990,443
Nov........ 2,034,840
Dec........ 1,652,725
1995 - Jan ......... 1,976,170
Feb........ 2,065,092
Mar........ 2,003,201
1,807,608
1,836,042
June ....... 1,700,891
1a'y::::::: :
Sold
(2)
2,235,999
2,176,877
1,937,228
1,999,494
2,041,705
1,656,590
1,963,539
2,058,248
1,991,118
1,799,971
1,822,733
1,678,404
Non-capital items
Assets
(3)
183,084
184,440
178,689
176,244
166,749
163,722
164,240
183,874
188,956
186,224
190,710
186,562
Uabilities
(4)
186,101
188,663
183,595
183,980
174,040
167,951
166,720
192,539
194,965
194,733
202,676
200,306
Cross
Puts
Calls
Boutt
(5
Written
(6)
BoU~ht
(7
Written
(8)
266,178
264,563
234,605
234,495
227,478
186,072
231,138
241,010
254,620
231,542
243,971
215,632
253,981
254,301
210,826
219,259
211,009
172,292
217,252
222,530
240,544
217,387
235,844
200,825
308,913
300,086
251,521
263,173
266,028
214,518
261,017
284,960
288,660
255,334
284,396
252,084
334,597
342,585
294,808
309,131
304,831
256,228
308,020
331,150
324,873
294,924
314,382
272,505
Net delta
equivalent
(9)
12,701
10,579
13,492
8,810
10,274
14,244
13,920
14,838
11,551
12,837
7,556
9,362
currency
interest
rate
swaps
(10)
190,377
184,542
182,359
186,811
188,333
186,348
192,506
192,152
190,206
195,667
193,298
203,901
Exchange
rate
(Deutsche
marks per
U.S. dollar)
(11)
1.5840
1.5820
1.5520
I.S039
1.5697
1.5495
1.5257
1.4625
1.3746
1.3872
1.4160
1.3828
TABLE FCP-II-3.--Quarterly Report of Large Market Participants
[In millions of Gennan marks. Source Office of International Financial Anal~sisl
S~t, forward,
and uture contracts
Report
date
1994-Mar. r•.....
June r .....
Sept. r .....
Dec. r......
1995 - Mar........
Options tlOsitions
Non-capital items
Purchased
(1)
Sold
(2)
Assets
(3)
Uabilities
(4)
323,746
367,674
343,563
301,078
291,084
312,311
348,903
328,882
284,105
265,042
82,432
82.706
82,522
91,142
94,002
93,477
90,175
89,683
102.787
102,769
Calls
Cross
Puts
BOU~ht
(5
Written
(6)
BOU~ht
(7
Written
(8)
Net delta
equivalent
(9)
33,603
44,654
33,661
29,435
31,933
31,980
44,964
32,350
35,758
34,743
46,847
44,280
34,487
40,778
41,609
42,939
44,355
36,306
37,624
32,619
-471
1,517
786
-2,952
-4,537
(10)
Exchange
rate
(Deutsche
marks per
U.S. dollar)
(11)
15,062
15,328
16,932
20,179
20,957
1.6735
1.5874
1.5520
1.5495
1.3746
currency
interest
rate
swaps
FOREIGN CURRENCY POSITIONS
105
SECTION III.--Japanese Yen Positions
TABLE FCP-III-l.--Weekly Report of Major Market Participants
lin billions 01 Japanese lIBn. Srurce: Office ollnlemational Financial Analysis)
Spot, forward,
and future contracts
Purchased
(1)
Sold
(2)
Net options
positions
(3)
Exchange rate
(Yen
per U.S.
dollar)
(4)
125,832
127,883
130,145
129,361
127,382
130,120
132,664
131,414
1,174
1,226
1,209
999
101.4000
99.9900
99.7500
99.5600
128,240
126,219
127,184
127,088
130,372
128,239
129,344
129,441
962
1,092
1,(]87
1,047
99.3100
99.0000
98.3800
00101/95 ......................
03lO8I95 ......................
03115/95 ...... " ..............
121,240
132,232
123,284
125,925
124,242
123,489
134,121
124,903
127,727
125,985
1,109
919
837
845
787
96.8000
91.4000
89.5000
89.0200
88.4200
04l05I95 ......................
04112195 •..........•..........
04119/95 ......................
120,206
121,020
119,530
120,079
122,262
122,816
121,362
122,150
626
711
702
726
86.1000
83.7000
81.4000
83.7300
05/03195 ......................
05110195 ......................
05117/95 ......................
113,939
111,436
112,640
111,725
113,230
116,218
113,260
114,615
113,714
115,041
829
769
83.7000
83.9200
708
86.9000
112,217
112,950
108,495
109,642
114,531
114,809
110,122
111,756
785
909
802
755
Report
date
01104195 ......................
01/11/95 .............•....•...
01/18195 ......................
01125195 ......................
02101/95 ••..••••..••••••••....
02lO8I95 ......................
02I15J95 ...... " ..............
02/22195 ......................
03I22J95 ......................
03129/95 ......................
04126195 ......................
05124195 ......................
05131/95 .... , .................
1l6I07/95 ...........••...•••...
06114195 .....•................
06121/95 ......................
06128/95 ......................
96.9900
764
910
87.2500
84.6000
84.7100
84.4500
84.1000
85.7000
TABLE FCP-III-2.--Monthly Report of Major Market Participants
[In billions 01 .Japanese l!!!!. Source: 0IIice oIlnlemational Financial Anal~sisl
S~t, forward,
and uture contracts
Report
date
1994-July ........
Aug........
Sept.. ......
Oct. ........
Nov........
Dec........
1995· Jan ........
Feb........
Mar........
.........
~
y........
JlKle .......
Purchased
(1)
130,608
132,328
123,253
127,701
130,197
121,520
129,627
124,651
125,329
116,862
115,184
111,418
Sold
(2)
131,574
133,725
125,331
129,591
132,020
123,174
131,473
126,544
126,783
118,746
117,049
114,282
Options positions
Non-capilal items
Assets
(3)
15,704
16,459
16,976
14,911
15,191
15,912
18,217
19,366
20,218
20,487
20,227
20,471
Puis
Calls
UabUities
(4)
~ht
Written
(6)
B2!ht
14,901
15,617
16,238
14,325
14,012
15,307
17,522
18,096
18,634
18,455
18,848
18,549
12,615
13,268
12,383
11,852
1t,549
11,361
12,607
13,421
13,694
12,190
12,350
It,345
12,092
12,078
11,084
10,495
10,736
10,530
11,598
12,469
12,839
16,895
15,530
14,091
13,852
13,444
13,131
14,401
14,298
14,802
13,861
14,677
25,152
11,na
11,939
10,849
Wrilten
(8)
17,487
16,754
15,444
15,153
14,738
14,793
16,090
15,752
16,316
15,715
16,558
26,543
Net delta
equivalent
(9)
485
687
1,032
1,262
1,108
1,178
1,047
1,089
722
742
901
797
Cross
currency
interest
rate
swa~
(10
27,102
27.074
26,606
27,526
27,633
27,419
27,316
27,519
27,162
27,458
27.810
30,962
Exchange
rate
(Yen
per U.S.
doIar)
(11)
99.9500
100.2500
99.2000
96.9000
96.9500
99.6000
99.6900
96.7600
86.6000
84.2000
84.6000
84.7300
TABLE FCP-m-3.--Quarterly Report of Large Market Participants
[In billions 01 Japanese ~en. Source: Office ollnlematlonal Financial Anal~slsl
Options positions
Spot, forward,
and future contracts
Report
date
1994-Mar. r......
June r .....
Sept r .....
Dec. r......
1995-Mar........
Purcl\ased
(1)
14,509
15,978
15,055
15,836
19,001
Sold
(2)
15,749
17,097
16,554
17,948
19,554
Assets
(3)
5,676
6,182
6,254
5,840
4,312
Liabilities
(4)
4,461
4,795
5,224
5,518
4,418
Puts
Calls
Non-capital items
Boutt
(5
1,951
2,473
2,054
2,533
1,573
Written
(6)
2,074
2,580
2,645
3,045
1,562
Bou~ht
(7
2,619
3.169
3,517
3,524
3,431
Written
(8)
2,221
3,198
2,697
2,736
2,244
Net della
equivalent
(9)
-73
-65
-341
-302
24
Cross
currency
interest
rate
swaps
(10)
2,806
3,239
3,529
3,758
4,385
Exchange
rale
(Ven
per U.S.
dollar)
(11)
102.7000
98.6000
99.2000
99.6000
86.6000
FOREIGN CURRENCY POSITIONS
106
SECTION IV.--Swiss Franc Positions
TABLE FCP-IV-l.-Weekly Report of Major Market Participants
[In mllhons <?~ SWISS francs. Source Offl~ of .!!'~~ Financial ~n~ __________ .__ . ____. -
(1)
(2)
(3)
Exchange rate
(Francs
per U.S_
dollar)
(4)
342.386
372.192
365.034
362.266
348.718
378,821
371.692
369.361
2,749
2.603
2.872
2.m
1.3099
1.2887
1.2913
1.2775
370,548
377.756
366,776
367.939
375,886
385,070
372,695
374,006
2,110
2,194
3,047
2,896
1.2850
1.2962
1.2761
1.2475
365.344
403.429
339.992
350,764
349.105
371,724
408,181
345,334
357,380
354,091
2,896
3,182
3,153
3,036
2.451
1.2395
1.1643
1.1530
1.1647
1.1430
342,988
350.524
359.589
353.222
349.173
357.445
366.120
358,934
3,081
3.271
3.717
3.827
1.1238
1.1532
1.1335
1.1315
05117195 . ............. .
335.213
343,699
360,187
351,744
336.780
340.703
348,335
367.312
359.430
344,724
4,423
4.143
4,831
5.814
6.986
1.1345
1.1502
1.2065
1.2002
1.1675
06/07195 ......•......... .......
06114/95 .... ........... .
335.509
06121195. '" .. " .............. .
06128/95 ...................... .
316.990
330.051
342,848
352,098
323.282
336.149
7.346
7.159
7.108
6,543
1.1587
1.1560
1.1445
1.1605
S~ot, forward.
and uture contracts
- ._-------
Report
date
----------- ----
01104/95 .......... _........... .
01/11/95 ........ .............. .
01/18195 . ............... _..... .
01/25195 .. ............. " ..... .
02101/95 . ..... -........... _.. _.
02108195 ...................... .
02115/95 . ..................... .
02122195 ...... '" ............. .
03101/95...................... .
03108195...... " .............. .
03115195 .... .................. .
03122/95 .. . , .. " ......... , .... .
03129195. . . . . . . . . . . . . . . . ...... .
04/05195 .... .. " .............. .
04112195 .... .................. .
04/19/95 .............. ..
04/26195 ............. ..
05103195 ...... " ....... .
05110195 ... _.......... .
05124195... _....... _
. ____ .
05131195...................... .
Net options
positions
-Sold
Purchased
344,460
--------
TABLE FCP-IV-2.--Monthly Report of Major Market Participants
!In millions of SWISS francs Source: Office of 1nternahonat FinanCial Anaf~slsl
.9ptions positions
Spot, forward.
and future contracts
Non-capital items
----------_.-
Report
date
1994· July ........
Aug ........
Sept... .....
Ocl. ........
Nov. ""'"
Dec........
1995 - Jan ..... " ..
Feb ........
Mar........
Apr.........
May........
June .......
Purchased
(I)
Sold
Assets
Liabilities
397,287
391.287
362,209
370,556
390.435
322.79B
372.700
380.467
353,641
348.978
348,572
325,683
402.309
396.231
367.408
375,757
395,161
328.968
376.525
385.030
357,848
352.199
355.863
329.617
25,462
26,348
25.930
27.347
28.808
24.B97
23.666
24.951
23,433
22,555
25,107
24,512
24,496
26,107
26.837
30.202
31,495
26.297
27,508
28,515
27,038
27,073
27,281
27.675
(2)
(3)
(4)
Calls
Bou~ht
Written
(5
57,179
58,894
48.345
47.875
57.309
35,863
40.225
42.348
39,075
39,123
44.804
29.792
Puts
_.
- - -.. --
(6)
55.415
55,754
44.432
43.664
52.246
31.307
36.897
39.548
35.441
34.725
40.460
23,838
._--
Written
B0'4Thl
(7
51,813
52,372
36.975
38,189
45,690
30.497
36.285
40,811
32,780
34,338
37.331
27.562
(8)
55,700
55,606
39.533
42,048
48,013
30,940
37,m
40.947
35,539
37.925
41.153
29.257
Net delta
equivalent
(9)
1,161
2,237
3.204
4,525
3.287
2,332
2.211
2,739
2.206
3,317
7.111
5.372
Cross
currency
interest
rate
swaps
(10)
125,822
123,091
122.951
124.695
125,925
125.617
123.124
124.864
121,471
121.252
120,860
125.660
Exchange
rate
(Francs
per U.S.
dollar)
(11)
1.3405
1.3330
1.2880
1.2560
1.3269
1.3100
1.2860
1.2371
1.1325
1.1450
1.1675
1.1500
TABLE FCP-IV-3.--Quarterly Report of Large Market Participants
[In millions of Swiss francs. Source' Office of International Financial Anaf~s,sl
S~Dt,
forward,
and uture contracts
Sold
Report
date
Purchased
(1)
(2)
1994· Mar. r. .
44,708
52,194
43,254
37.811
42,331
40,264
45.618
35.890
32.063
32.669
June r .
Sept. r.
Dec. r......
1995· Mar. .
Options positions
-----.
Non-capital items
Assets
(3)
13,900
13,510
13.511
14,604
13,881
Liabilities
(4)
15,039
15,632
13.862
14,807
14.123
Calls
BOU~ht
(5
3.621
4.690
3,476
2,413
1.704
Puts
Written
(6)
B(~hl
Written
(8)
2,650
3.937
2.807
2,473
2.034
4,272
4,896
3.542
2.766
2.874
4,OB7
5,120
3,217
2,089
1,613
Net della
equivalent
(9)
355
514
386
-132
165
Cross
currency
interest
rate
swaps
Exchange
rate
(Francs
per U.S.
dollar)
(10)
(11)
15,478
15.624
17.418
19.497
20,131
1.4130
1.3335
12880
1.3100
1.1325
107
FOREIGN CURRENCY POSITIONS
SECTION v.--Sterling Positions
TABLE FCP-V-t.--Weekly Report of Major Market Participants
lin miWons 01 pounds sletling. Source: 00"108 of InternatioooJ Financial Analysisl
Spot, forward.
and future contracts
Report
Exchange rate
(U.S. dollars
per pound)
(4)
Netcplions
positiOns
(3)
Purchased
(1)
Sold
(2)
01104J95•••.••........ , .••...••
01111195....•••.... " ........ "
01118/95. " ....................
01f25195.........•.............
285.636
298,886
313.573
327.847
283.935
296,652
311,560
324.552
649
770
519
843
1.5595
1.5700
1.5910
02/01195.......................
02J08l95.......................
02115195...................... ,
02122195.......................
320.799
340.071
344,266
344,142
316,282
336.506
340,946
341,158
395
398
209
·115
1.5820
1.5532
1.5597
1.5890
03101195••..•..••......••...•..
03108195.......................
03115195.......................
03122195.......................
03129195.......................
346,793
369,590
340,619
329,678
331,493
343,992
365,971
338,458
327,024
327,715
·75
·377
182
·175
1.5861
1.6088
1.5960
1.5875
1.6112
04105195.......................
04112195...•. , , ..... , ...... , ...
04119195... , •..•............•..
04126195.......................
339.496
340,259
330,593
346,315
333,804
336,376
328.057
341,937
-44
397
05103195.......................
05110195.......... " .......... '
05117195...................... '
05124195.......................
05131195.......................
341,213
357.316
358,924
356,385
350,943
338,302
355.931
357,021
354,764
348,457
97
211
563
237
588
1.5695
1.5733
1.5860
06107195....•..................
06114195 .......................
06121195.......................
06128195.......................
353,996
359.535
336.609
350.052
356.615
334.026
358,344
6B6
861
672
502
1.5904
1.6118
1.6095
1.5750
date
360,639
1.5603
59
1.6105
1.5920
1.6082
1.6155
136
70
1.6165
1.5838
TABLE Fep·V-2.--Monthly Report of Major Market Participants
lin milUons of ~und$ starnn!/: Source: Office oIlnlernalional financial Ana!y!is]
Options positions
~ot. forward.
and uture contracts
Report
date
19M-July........
Purchased
(1)
Nov ........
274,658
280,631
274.687
284,202
306,541
Dec........
266,836
1995-Jan.........
Feb........
327,173
359,721
332,402
335,343
360,887
351,471
Aug........
Sap!... .....
Oct.........
Mar........
:r,:1/.........
••.•••.•
June .......
Sold
(2)
273,216
278.578
272,817
281.544
303.262
264,375
323.278
356.547
329.090
332,627
357.320
349.277
Non·capital items
Assets
(3)
48,917
49,399
49,C68
49,828
48,917
48,219
SO.516
47.947
47.989
50,122
56,513
51,744
Uabilities
(4)
48,960
51.276
50.353
52.375
51.156
51.367
52,731
SO,719
51,060
51,794
57.357
50.882
Puts
Calls
eou~ht
Written
(5
(6)
23,569
22.999
23,498
25.564
24.288
19.335
21,310
23.000
24.361
21.095
22,611
21.297
23,715
22,815
22.510
25.586
24.113
19,627
22.329
23,844
25,761
22.189
23,849
21,674
srut
t
Written
(8)
26.457
27.790
26.342
27.747
26.171
18.416
21.595
21,974
24.216
21,894
22.326
21.759
25,597
26.632
24.023
25,023
24.552
16.695
19.997
22.117
23,466
20,757
21.943
20.101
Net delta
equivalent
(9)
1.034
729
703
·305
-54
640
431
84
62
99
576
665
Cross
currency
interest
rale
swaps
(10)
44,643
44.812
44.910
43.989
44.392
44.967
45.968
46.598
47.416
49,091
48.803
51.253
Exchange
rate
JU.s.
arsper
P(m'l
1.5435
1.5342
1.5760
1.6354
1.5647
1.5665
1.5785
1.5820
1.6215
1.6115
1.5860
1.5945
TABLE FCP-V-3.--Quarterly Report of Large Market Participants
(In miNions of ~unds slerii~. Source: OIfice of Inl$rnational Financial AnalYsis]
Options positions
~ot, forward,
and uture contracts
Report
date
1994 • Mar. r ......
June r .....
Sept. r .....
Dec. r......
1995· Mar........
Puts
Calls
Non-capital items
Cross
Purchased
(1)
Sold
(2)
Assets
(3)
Uabilities
(4)
Sour'
(5
Written
(6)
BoU~hl
WriHen
(8)
Neldella
equivalent
(9)
46,689
44,392
46.895
42,970
35.314
55,218
45,063
46.846
41,942
34.601
37.240
37,104
34,743
35,882
34.889
33,225
32,622
30,775
32,443
31,079
3,517
3,505
3,725
3,747
3,58'
5.030
4.671
5.338
3.846
4,544
4.134
3.841
-550
·360
·575
3.309
3.372
3,937
3.317
3.755
(7
4,308
2.765
2.1301
-495
·235
currency
interest
rate
swaps
(10)
Exchange
rate
U.S.
dol ars per
pound)
(11)
4,236
4.798
4,934
6.530
6.369
1.4830
1.5435
1.5760
1.5665
1.6215
I
108
INTRODUCTION: Exchange Stabilization Fund
To stabilize the exchange value of the dollar. the Exchange Stabilization Fund (ESF) was established under the
Gold Reserve Act of January 30, 1934 (31 V .S.c. 822a). which
authorized establishment of a Treasury Depanment fund to be
operated under the exclusive control of the Secretary, with
approval of the President.
Subsequent amendment of the Gold Reserve Act modified
the original purpose somewhat to reflect termination of the
fixed exchange rate system.
Resources of the fund include dollar balances. panially
invested in V.S. Government securities, Special drawing
rights (SDRs). and balances of foreign currencies. Principal
sources of income (losses) for the fund are profits (losses) on
SDRs and foreign exchange, as well as interest earned on
assets.
• Table ESF-l presents the assets, liabilities, and ('{/piral
of the fund. The figures are in U.S. dollars or their equivalents
based on current exchange rates computed according to the
accrual method of accounting. The capital account represents
the original capital appropriated to the fund by Congress of$2
billion, minus a subsequent transfer of $1.8 billion to pay for
the initial U.S. quota subscription to the IMF. Gains and losses
are reflected in the cumulative net income (loss) account.
• Table ESF-2 shows the results of operations by quaner.
Figures are in U.S. dollars or their equivalents computed
according to the accrual method. "Profit (loss) on foreign
exchange" includes realized profits or losses on currencies
held. "Adjustment for change in valuation of SDR holdings
and al/ocations" reflects net gain or loss on revaluation of
SDR holdings and allocations for the quarter.
TABLE ESF-l.--Balanees as of Dee. 31,1994, and Mar. 31,1995
---------- ------Assets. liabilities. and capital
.l!!Uhousands of doliars Source O~I~~ of th~ Secretary of the Treasu'YL--. _ _ __
Dec. 31.1994
Dec. 31. 1994.
through Mar. 31.1995
Mar. 31.1995
Assets
U.S. dollars:
Held at Federal Reserve Bank of New York ..
Held with Treasury:
U.S. Government securities ............ .
Special drawing rights' ................... .
Foreign exchange and securities: 2
German marks ........................ .
Japanese yen ............... _......... .
Mexican pesos ........................ .
Accounts receivable ..................... .
Total assets ....................... .
8.227.606
·4.003.320
4.224.286
399.699
10.038.539
5.471
1.612.826
405.170
11.651.365
7.500.609
11.801.019
648.221
1.395.330
4.000.000
8.148.830
13,196,349
4,000,000
184.761
24.199
208,960
38.152.233
3.682.727
41.834,960
Uabitities and capital
Current liabilities:
Accounts payable ....................... _ _ _ _ _ _ _ _.::.:5B:.:.,:.OO:.::.5~_ _ _ _ _ _ _ ____=4:.:.,7.:.::'5~_ __
62,720
Tctalrurremli~m~es ................. ~~~~~~~~~~~~~05~~~~~~~~~~4~,7~15~~~~~~~~~~~~~.n~o
Other liabilities:
Special drawing rights certificates. . . . . . . . . .
8,018,000
8.018.000
Special draWing rights allocations .......... _ _ _ _ _ _ _ _7:.,..1.::.:52:.:.,:.5:.::.67:....-_ _ _ _ _ _ _ _=49:::3:.,:..14:.-1'---_
7,645.708
Th~cth~~~ilies ................... ~~~~~~~1~5~.I~ro~j~~~~~~~~~~~~~~3~.14~1~~~~~~~~~Jl~~~OO~3~,M~8
Capital:
Capital account ................ - ...... .
Net income (loss) (see table ESF·2)
200.000
200.000
22.723.661
._-._--
3.184.871
25,908,532
TOlal capital ............ .
22.923.661
3.184.871
26,108,532
Total hablhlies and capital .
38.152.233
3.682.727
41,834,960
See footnolesonthefollo~:w:'n:g:pa:ge:------------------------------=========
EXCHANGE STABILIZATION FUND
109
TABLE ESF-2.--Income and Expense
[In thousands of dollars. Source: Office of the Secretary of the Treasuryl
Current quarter
Jan. 1, 1995, through Mar. 31, 1995
Fiscal year to date
Oct. 1, 1994, through Mar. 31, 1995
Income and expense
Profit (loss) on:
Foreign exchange ...................................................... .
2,623,303
2,585,45S
254,005
237,948
Special drawing righls ............................................ , ...... .
43,120
77,189
U.S. Government securities ............................................... .
94,560
197,521
Adjustment for change in valuation of SOR holdings and allocations 1
Interest (net charges) on:
====-________==~
350,426 __
Foleignexctlange ................... , .... ,', ...... , .................. ,., _ _ _ _ _ _169,883
Income from operations ...... , .................................. , .. , .. , , _ _ _ _ _---.!~=~
3,184,871 _ _ _ _ _ _ _ _==:!!:.._
3,448,542 __
Net income (loss) ...............•.•..... , •...•..................•....
1 8aginning JIAy 1974, the International Monetary Fund (IMF) acioptad a I8Chnlque for valuing
the special drll\\ling r!ghts (SORs) based on a waig!1!1!!1 BY8!'898 ofaxchange rates for !hi
currencies 01 seIecIed ineniber countries. The U.S. SJR holdings and allocatiOns are valued
on this basis beginning July 1974.
2 Excludes foreign exchange transactions for future and spot delivery.
3,184,871
3,448,542
Note,-Annual balance sheets for fiscal years 1934 through 1940 appeared in the 1940
"Annual Report of the Secre1ary of the Treasur( and thosa for succeeding years appeared in
subsequent reports througl) 1980. Quarte~y liaIance sheets beginning willi Dec: 31, 19311,
have been published in the "TraasulY Bulletin: Data from inception to S"l!f)t 30. 1878, may be
found on Ihe statements published in the January 1979 "Traasurv BulIetiiI.'
REPORTS
Trust Funds
TRUST FUNDS
113
TABLE TF-15A.--Highway Trust Fund, Highway Account
The following information is released according to the
provisions of the Byrd Amendment to the Intermodal Surface
Transportation Efficiency Act of 1991 and represents data
concerning only the highway account of the Highway Trust
Fund. The figure described as "unfunded authorizations" is the
latest estimate received from the Department of Transporta-
~illions
tion for fiscal 1995. The "24-month revenue estimate" includes the latest estimate received from the Department of
Treasury's Office of Tax Analysis for excise taxes, net of
refunds. It represents net highway receipts for the 24-month
period beginning at the close of fiscal 1995.
of dollars. Source: Financial Management Service]
Unfunded authorizatiollS (EOy) ..... .... .. . .. ... . . ... .. . . ..... .... .. . . ..... . .... . . ..... . . ...... ..... ....... ...... .. ..... ...... . ...... .
37,473
24·month revenue estimate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4t ,333
114
Glossary
With References to Applicable Sections and Tables
Accru~d discount (SBN-I, -2, -3)-lnterest that accumulates
on sLivings honds from the date of purchase until the date of
redemption or tinal maturity. whichever comes first. Series A.
B. C. D. E. EE. F. and J are discount or accrual type bondsmeaning principal and interest are paid when bonds are redeemcd. Serie~ G. H. HH. and K are current-income bonds.
and the semiannual interest paid to their holders is not included
in accrued discount.
Amounts outstanding and in circulation (USCC)-Includt:s all issues by the Bureau of the Mint purposely intended
as a medium of exchange. Coins sold by the Bureau of the Mint
at premium prices arc excluded: however. uncirculated coin
sets sold at face value plus handling charge are included.
Average discount rate (PDO-2, -3)-ln Treasury hill auclions. purchasers tender competitive bids on a discount rate
basis. The average discount rate is the weighted. or adjusted.
average of all bids accepted in the auction.
Budget authority ("Federal Fiscal Operations")-Congress passes laws giving budget authority to Government
entities. which gives the agencies the power to spend Federal
funds. Congress can stipulate various criteria for the spending
of these funds. For example. Congress can stipulate that a
given agency must spend within a specific year. number of
years. or any time in the future.
The basic forms of budget authority arc appropriations.
authority to borrow. and contract authority. The period of time
during which Congress makes funds available may be specified as I-year. mUltiple-year. or no-year. The available amount
may be classified as either definite or indefinite; a specific
amount or an unspecified amount can be made availahle.
Authority may also he classified as current or permanent.
Permanent authority requires no curren! aClion by Congress.
Budget deticit-The total. cumulative amount by which
budget outlays (spending) exceed budget receipts (income).
Capital ("Federal Obligations")-Assets. such as land.
equipment. and financial reserves.
Cash management bills (PDO-2)-Marketable Trea\ury
bills of irregular maturity lengths. sold periodically to fund
short-term cash needs of Treasury. Their sale. having higher
minimum and multiple purcha!le requirements than those of
other issues. is generally restricted to competitive bidders.
Competitive tenders ("Treasury Financing Opera,ions")-A hid to purchase a stated amount of one is'me of
Treasury securities at a specified yield or discount. The bid is
accepted if it is within the range accepted in the auction. (See
Noncompetitive tenders.)
Coupon issue-The
i~sue
of bonds or notes (public debt).
Currency no longer issued (USCCl-Old and new series
gold and silver certiticate~. Federal Resern~ noles. national
hank note~. and I R90 Series Treasury notes.
Current income bonds ("U .S. Savings Bonds and
~otes")-Bonds paying semiannual interest to holder~. Intere~t is not included in accrued discoun!.
Debt outstanding subject to limitation (FD-6)-The dt:bt
incurred by the Treasury subject to the statutory limit set by
Congress. Until World War I. a specific amount of dt:bt was
authorized to each separate security issue. Beginning with the
Second Liberty Loan Act of 1917. the nature of the limitation
was modified until. in 1941. it developed into an overall limit
on the outstanding Federal debt. As of June 1995. the debt limit
was $4.900.000 million; the limit may change from year to
year.
The debt subject to limitation includes most of Treasury's
public debt except securities issued to the Federal Financing
Bank. upon which there is a limitation of $15 billion. and
certain categories of older debt (totaling approximately $595
million as of February 1991 ).
Discount-The interest deducted in advance when purchasing
notes or bonds. (See Accrued discount.)
Discount rate (PDO-2)-The difference between par value
and the actual purchase price paid. annualized over a 360-day
year. Because this rate is less than the actual yield (couponequivalent rate), the yield should be used in any comparison
with coupon issue securities.
Dollar coins (USCC)-Inc\ude standard silver and nonsilver
COinS.
Domestic series (FD-2)-Nonmarketable. interest and noninterest-bearing securities issued periodically by Treasury to
the Resolution Funding Corporation (RFC) for investment of
funds authorized under section 21 B of the Federal Home Loan
BankAct(12U.s.C.144Ib).
Federal intrafund transactions ("Federal Fiscal Operations")-Intrabudgetary transactions in which payments and
receipts both occur within the same Federal fund group (Federal funds or trust funds).
Federal Reserve notes (USCCl-lssues by the U.S. Government to the public through the Federal Reserve banks and their
member banks. They represent money owed by the Government to the pUblic. Currently. the item "Federal Reserve
notes-amounts outstanding" consists of new series issues.
The Federal Reserve note is the only class of currency currently issued.
Foreign ("Foreign Currency Positions,"IFS-2, -3)-(international) Locations other than those included under the definition of the United States. (See United States.)
Foreigner ("Capital Movements," IFS-2)-AIl institutions
and in?!vidual~ .living outside the United States. including
U.S. citIZens liVing abroad. and branches. subsidiaries. and
other affiliates abroad of U.S. banks and business concerns;
central governments. central banks. and other official institutions of countries other than the United States, and international and regional organizations. wherever located. Also.
refers to persons .in t~c ~nited Slates to the extent that they are
known by reponmg mstltutions to be acting for foreigners.
Foreign official institutions ("Capital Movements")-Ineludes central governm~nts of foreign countries, including all
departments and agencIes of national governments; central
115
Glossary
banks, exchange authorities, and all fiscal agents of foreign
national governments that undertake activities similar to those
of a treasury, central bank, or stabilization fund; diplomatic
and consular establishments of foreign national governments;
and any international or regional organization, including subordinate and affiliate agencies, created by treaty or convention
between sovereign states.
Foreign public borrower ("Capital Movements")-Ineludes foreign official institutions, as defined above, the corporations and agencies of foreign central governments,
including development banks and institutions, and other agencies that are majority-owned by the central government or its
departments~ and state provincial and local governments of
foreign countries and their departments and agencies.
Foreign-targeted issue (POO-I, -3)-Foreign-targeted issues were notes sold between October 1984 and February 1986
to foreign institutions, foreign branches of U.S. institutions,
foreign central banks or monetary authorities, or to international organizations in which the United States held membership. Sold as companion issues, they could be converted to
domestic (normal) Treasury notes with the same maturity and
interest rates. Interest was paid annually.
Fractional coins (USCC)-Coins minted in denominations
of 50, 25, and 10 cents, and minor coins (5 cents and 1 cent).
Government account series (FD-2)-Certain trust fund statutes require the Secretary of the Treasury to apply monies held
by these funds toward the issuance of nonmarketable special
securities. These securities are sold directly by Treasury to a
specific Government agency, trust fund, or account. Their rate
is based on an average of market yields on outstanding Treasury obligations, and they may be redeemed at the option of the
holder. Roughly 80 percent of these are issued to five holders:
the Federal Old-age and Survivors Insurance Trust Fund; the
civil service retirement and disability fund; the Federal Hospital Insurance Trust Fund; the military retirement fund; and
the Unemployment Trust Fund.
Interfund transactions ("Federal Fiscal Operations")Transactions in which payments are made from one fund group
(either Federal funds or trust funds) to a receipt account in
another group.
International Monetary Fund ("Exchange Stabilization
Fund," IFS-I)-(IMF) Established by the United Nations, the
IMF promotes international trade, stability of exchange, and
monetary cooperation. Members are allowed to draw from the
fund.
Intrabudgetary transactions ("Federal FiscaJ Operations")-These occur when payment and receipt both occur
within the budget, or when payment is made from off-budget
Federal entities whose budget authority and outlays are excluded from the budget totals.
Matured non-interest-bearing debt (SBN-l, -2, -3)-The
value of outstanding savings bonds and notes that have
reached final maturity and no longer earn interest. Includes all
Series A-D, F, G, J, and K bonds. Series E bonds (issued
between May 1941 and November 1965), Series EE (issued
since January 1980), Series H (issued from June 1952 through
December 1979), and savings notes issued between May 1967
and October 1970 have a final maturity of 30 years. Series HH
bonds (issued since January 1980) mature after 20 years.
Noncompetitive tenders {"Treasury Financing Operations ")-Offers by an investor to purchase Treasury securities
at t~e price equivalent to the weighted average discount rate
or YIeld of accepted competiti ve tenders in a Treasury auction.
Noncompetitive tenders are always accepted in full.
Obligation ("Federal Obligations")-An unpaid commitment to acquire goods or services.
Off-budget Federal entities {"Federal Fiscal Operations'')-Federally owned and controlled entities whose
transactions are excluded from the budget totals under provisions of law. Their receipts, outlays. and surplus or deficit are
not included in budget receipts, outlays, or deficits. Their
budget authority is not included in totals of the budget.
Outlays ("Federal Fiscal Operations")-(expenditures, net
disbursements) Payments on obligations in the form of cash,
checks, the issuance of bonds or notes, or the maturing of
interest coupons.
Own foreign offices ("Capital Movements',)-Refers to
U.S. reporting institutions' parent organizations, branches
and/or majori ty-owned subsidiaries located outside the United
States.
Par value-The face value of bonds or notes, including interest.
Quarterly financing ("Treasury Financing Operations")Treasury has historically offered packages of several "coupon"
security issues on the 15th of February, May, August, and
November, or on the next working day. These issues currently
consist of a 3-year note, a 100year note, and a 3D-year bond.
Treasury sometimes offers additional amounts of outstanding
long-term notes or bonds, rather than selling new security
issues. (See Reopening.)
Receipts ("Federal Fiscal Operations'')-Funds collected
from selling land, capital, or services, as well as collections
from the public (budget receipts), such as taxes, fines, duties,
and fees.
Reopening (pDO-3, -4)-The offer for sale of additional
amounts of outstanding issues, rather than an entirely new
issue. A reopened issue will always have the same maturity
date, CUSlP-number. and interest rate as the original issue.
Special drawing rights ("Exchange Stabilization Fund,"
IFS-l)-International assets created by IMF that serve to
increase international liquidity and provide additional international reserves. SDRs may be purchased and sold among
eligible holders through IMF. (See IMF.)
SDR allocations are the counterpart to SDRs issued by IMF
based on members' quotas in IMF. Although shown in exchange stabilization fund (ESF) statements as liabilities, they
must be redeemed by ESF only in the event of liquidation of,
or U.S. withdrawal from, the SDR department of IMP or
cancellation of SDRs.
SDR certificates are issued to the Federal Reserve System
against SDRs when SDRs are legalized as money. Proceeds of
monetization are deposited into an ESF account at the Federal
Reserve Bank of New York.
116
Glossary
Spot ("Foreign Currency Positions"}-Due for receipt or
delivery within 2 workdays.
State and local government series (FD-2)-(SLUGs) Special nonmarketable certificates, notes, and bonds offered to
State and 100:al governments as a means to invest proceeds
from their own tax-exempt financing. Interest rates and maturities comply with IRS arbitrage provisions. SLUGs are
offered in both time deposit and demand deposit forms. Time
deposit certificates have maturities of up to I year. Notes
mature in I to JO years and bonds mature in more than 10 years.
Demand deposit securities are I-day certificates rolled over
with a rate adjustment daily.
Statutory debt limit (FD-6)-By Act of Congress there is a
limit, either temporary or permanent, on the amount of public
debt that may be outstanding. When this limit is reached,
Treasury may not sell new debt issues until Congress increases
or extends the limit. For a detailed listing of changes in the
limit since 1941, see the Budget of the United States Government. (See Debt outstanding suhject to limitation.)
STRIPS (PDO-l, -3)-Separate Trading of Registered Interest and Principal Securities. Long-term notes and bonds may
be divided into principal and interest-paying components,
which may be transferred and sold in amounts as small as
S1,000. STRIPS are sold at auction at a minimum par amount,
varying for each issue. The amount is an arithmetic function
of the issue's interest rate.
Treasury bills-The shortest term Federal security (maturity
dates normally varying from 3 to 12 months), they are sold at
a discount.
Trust fund transaction ("Federal Fiscal Operations")-An
intra-budgetary transaction in which both payments and receipts occur within the same trust fund group.
United States-Includes the 50 States, District of Columbia,
Commonwealth of Puerto Rico, American Samoa, Midway
Island. Virgin Islands, Wake Island, and all other territories and
possessions.
U.S. notes (USCC)-Legal tender notes of five different
issues: 1862 ($5-$1.000 notes); 1862 ($1-$2 notes); 1863
($5-$1,000 notes); 1863 ($1-$10,000 notes); and 1901 ($10
notes).
Information about the Superintendent of Documents Subscription Service
Current Subscribers:
To know when to expect your renewal notice and to keep a good thing coming, and to keep subscription prices down, the
Government Printing Office mails each subscriber only one renewal notice. You can learn when you will get your renewal
notice by checking the number that follows ISSDUE on the top line of your label as shown in this example:
When the last digit is 0, a renewal notice will be sent.
TRBU SMITH212J ISSDUEOOQ
JOHN SMITH
212 MAIN ST
FORESTVILLE MD 20747
R
When that number reads ISSDUEOOQ, you have received your last issue unless you renew. You should receive your renewal
notice around the same time thal you receive the issue with ISSDUEOOQ on the top line.
To change your address, please SEND YOUR MAILING LABEL, along with your new address, to the Superintendent of
Documents, Attn: Chief, Mail List Branch, Mail Stop SSOM, Washington, D.C. 20402-9373.
To be sure that YQ!!!..service continues without interruption, please return your renewal notice promptly. If your subscription
service is discontinued, simply send your mailing label from any issue to the Superintendent of Documents, Washington,
D.C. 20402-9372 with the proper remittance and your service will be reinstated.
To inquire about your subscription service, please SEND YOUR MAILING LABEL, along with your correspondence, to the
Superintendent of Documents, Attn: Chief, Mail List Branch, Mail Stop SSOM, Washington, D.C. 20402-9375.
New Subscribers
To order a new subscription, please use the order form provided below.
Superintendent of Documents Publication and Subscription Order Form
*5635
To fax your orders (202) 512-2250
To phone your orders (202) 512-1800
Please type or print (Form is aligned for typewriter use.)
Publications
Qty.
Stock Number
-----
048-000-00484-9
048-000-00485-7
Price
Each
Title
- --
CONSOLIDATED FINANCIAL STATEMENTS
OF THE UNITED STATES GOVERNMENT
UNITED STATES GOVERNMENT ANNUAL REPORT
FISCAL YEAR 1994
$4.50
$3.00
Price
Each
$31.00
$571.00
$36.00
Title
List 10
TRBU
DTS
MTSRO
MSPD
TREASURY BULLETIN
DAILY TREASURY STATEMENT
MONTHLY TREASURY STATEMENT
MONTHLY STATEMENT OF THE PUBLIC DEBT
OF THE UNITED STATES
NOTE: Price includes regular shipping and handling and is subject to change.
International customers please add 25%.
Company or personal name
Total
Price
Total for publications
Subscri ptions
Oty.
ps
Charge your order. ~.II ~
It's easy! . - .. ~
Order ProcessingCoc!e:
(Please type or print)
Additional address/attention line
Street address
City, State, Zip code
Total
Price
$37.00
Total for subscriptions
Total cost of order
For privacy protection, check the box below:
o Do not make my name available to other mailers
Check method of payment:
o Check payable to Superintendent of Documents
o GPO Deposit Account
o VISA 0 MasterCard
1111111I 1
Daytime phone including area code
I
1 I (expiration date)
I 1 1 1 1 1 1 1- 0
I 1111I
Thank you for
your order!
Purchase order number (optional)
Mail To: Superintendent of Documents
P.O. Box 371954, Pittsburgh, PA 15250-7954
Authorizing signature
9/95
DEPARTMENT OF THE TREASURY
FINANCIAL MANA(;EMENT SERVICE
WASHINGTON, D.C. :!O:!27
FlRST-Cl.ASS MAIL
POSTAGE & FEES PAID
Dcpal1menl of the Treasury
Permit No. G-4
OffiCIAL BCSINESS
PENALTY FOR PRIVATE USE, $300
Reach us on-line ...
Send your comments, suggestions, and requests to:
treasury.bulletill @flns.sprillt.com
ONE OFTHE GOALS of our continuing
effort to improve service to our readers
is to make the Treasury Bulletin
available to on-line service subscribers
via the Internet. As a first step toward
that, we have made it possible for our
readers to contact us through electronic
mail. It is our hope that this will make it
both easier and more convenient for
Treasury Bulletin users to provide us
with input. It will also make it easier for
us to respond faster to your requests.
The comments and suggestions we
receive, along with the responses to our
customer surveys, will help us to
continue to ensure that our publication
best meets your needs.
So take a minute, try it out, and let us
know how we're doing.
The Editors
UBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239
FOR IMMEDIATE RELEASE
September 25, 1995
CONTACT: Office of Financing
UCT (~JJ UJ 0 2. 2. J 202-219-3350
RESULTS OF TREASURY'S AUCTION OF 26-WEBK BILLS
C','
",
(~:
'.,
.,
Tenders £0r $11,440 million of' 26 ;"weekbills . to be issued
September 28, 1995 and to mature March 28, 1996 were
accepted today (CUSIP: 912794X82).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Discount
Rate
Low
High
Average
5.25%
5.27%
5.27%
Investment
Rate
Price
5.48%
5.50%
5.50%
97.346
97.336
97.336
Tenders at the high discount rate were allotted 92%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND 'ACCEPTED (in thousands)
Received
TOTALS
Accepted
$47,730,560
$11,440,005
$41,298,875
1. 381. 402
$42,680,277
$5,008,320
1.381.402
$6,389,722
2,950,000
2,950,000
2,100,283
$47,730,560
2,100,283
$11,440,005
Type
Competitive
Noncompetitive
Subtotal Public
Federal Reserve
Foreign Official
Institutions
TOTALS
An additional $223,917 thousand of bills will be
issued to foreign official institutions for new cash.
5.26 - 97.341
RR-584
UBLIC DEBT NEWS
Ocr L,J~
.'
FOR IMMEDIATE RELEASE
September 25, 1995
j
U PON'rACT:
U·J"
,-1.0
,)
TR~URY'~.AU~TION
RESULTS OF
{, ,
\..." !
I
.'
~ ~
!. .I
.
Office of Financing
202-219-3350
OF 13-WEEK BILLS
Tenders for $11,426 million of 13-week bills to be issued
September 28, 1995 and to mature December 28, 1995 were
accepted today (CUSIP: 912794W34).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.12%
5.15%
5.14%
Investment
Rate
5.27%
5.31%
5.29%
Price
98.706
98.698
98.701
Tenders at the high discount rate were allotted 4%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$43,618,281
Accepted
$11,426,111
$38,069,052
1,286,127
$39,355,179
$5,876,882
1, 286,127
$7,163,009
3,257,835
3,257,835
1, 005,267
$43,618,281
1. 005,267
$11,426,111
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
An additional $107,133 thousand of bills will be
issued to foreign official institutions for new cash.
5.13 - 98.703
RR-585
OFFICE OF PUBUCAFFAIRS -l500 PE~SYL':AJlJL\A~, N".W•• WASHINGTON, D.C. - 20220 - (202) 622-2960
tLf ,_ ~,J V .,j d j
l
I
Jeffrey Shafer
Assistant Secretary for
International Affairs
Remarks to the
Federacion Iberoamericana de Bolsas de Valores
(Federation of Iberoamerican Stock Exchanges)
September 25, 1995
Introduction
Thank you very much. I am delighted to be here this afternoon.
As representatives of stock exchanges and capital markets throughout Latin America,
all of you have been central to the remarkable economic transformation that has swept this
region over the past ten years.
The lesson that all economic growth must rest on a foundation of stable fiscal and
monetary policies has been internalized. Hemorrhaging government budgets have been
stanched, and debt levels slashed. Inflation rates which are today in the single or low double
digits, where they were once in the hundreds, have been the fortunate result.
Countries which for decades kept their markets sealed and protected have today signed
what by my count are nearly two dozen trade agreements, part and parcel of a quadrupling of
inter-regional trade over 10 years, to some $26 billion. Some 2,000 privatizations from
Mexico to Chile testify to the extent to which the heavy-hand of the state has been withdrawn
from your economies, allowing competition and private initiative to flourish. The Summit of
the Americas last December gave us a vis ion of an integrated and prosperous economic
region encompassing all of the Americas, to be achieved by the year 2005.
Private Capital
Financial development and integration are at the center of this vision. Indeed, a
hallmark of Latin America's economic transformation has been the extent to which your
countries have embraced the idea that private capital -- both domestic and foreign -- must
provide the fuel for economic growth. Capital flowing to Latin America has mushroomed in
RR-586
Fur press releases, speeches, public schedules and official biographies, call aur 24-hour fax line at (202) 622-2040
recent years drawn both by the radically transformed economic clImate, as well the removal
of rest;ict\o~s that once se;ved to keep private -- particularly foreign -- capital waiting at the
gate,
Average net capital nows to the region have soared from a net outflow of some $17
billion from 1983-1989 to an average annual net intlow of $40 billion from 1990-94. Gross
capital tlows have risen Just as strongly, from less than $10 billion per year in the mid-1980s
to over $80 billion last year.
The exchanges that you represent have seen their own fortunes blossom with the
mushrooming worldwide interest in your economies. The dollar value of market
capitalization soared more than 3,000 percent in Colombia. Chile, and Mexico from 1985 to
1994, to cite the most spectacular examples. Latin Amertca's aggregate stock market
capitalization has grown some eight fold, from $54 billion in 1985 and $78 billion in 1990 to
a level approaching $112 trillion at the end of July of this year.
With the new actIvity has come a whole crop of market-linked industries, and just as
important, a radical change in economic and entrepreneurial culture. Teams of new local
investment banks have emerged, bringing Jobs and fueling economic growth in their wake.
Thousands of analysts worldwide now track Latin American trends and equities that once
drew only local interest. Almost every day I seem to read about a new alliance between
regional securities firms and American or other international players, providing a hopeful mix
of local knowledge, global expertise, and both regional and international capital.
The Importance of Equity Markets
When I stress to this audience the importance of developments like this for Latin
America's future prosperity, I know I am talking to believers. But it is important for us to
make this case. Former U.S. Secretary of the Treasury Lloyd Bentsen said that capital
markets are the nervous system for a nation's economic muscle -- directing investments and
resources to their most productive and effective uses. I agree fully with that thought. But I
would add that I believe that equity markets, as opposed to debt, bank, or other forms of
financial intermediation, have a particularly essential role to play in economic expansion.
The numbers testify to the fact that equity has become the main cross-border financing
vehicle for emerging markets worldwide. Direct and portfolio equity flows to emerging
markets now account for almost 50 percent of global cross-border equity flows, compared to
barely 12 percent in the 1980s. Portfolio equity, which made up an almost non-existent
portion of capital flows to Latin America from 1977 to 1982, accounted for some 30 percent
of flows from 1988 to 1994.
Your ~xchanges have re~p~d enormous ?en~fits from this development, and are poised
to keep .growm~ as you~ co~ntfles transformation mto .market-?riented, globally-integrated
economies contmues. I d hz(e to spend the next few mmutes discussing why I believe that
portfolio equity can remain a dominant financing vehicle for Latin America. I would also
2
like to discuss some of the regulatory and other steps which remain to be taken if your
securities markets are to reach their full potential, both in terms of their own size, as well as
the benefits they can offer for your countries' economies.
Economic Benefits
What are the benefits which liquid and transparent stock exchanges can bring to
countries like your own?
The first and most obvious set of benefits stems from what I have already discussed -equity markets' role in providing capital efficiently, as the fuel for economic growth. The
days in which a small group of bankers could gather in a room with a minister or industrialist
over a glass of brandy and meet the financing needs of a country are long-gone -- whether
for United States industries, or your own. Today's modern. efficient economies require
teams of equity-oriented analysts and investment bankers, all dedicated to understanding
specific sectors and their growth potential. Mobilizing and making available such expertise is
the chief role of a stock market. And it is the way a stock market accomplishes its most
important task: providing finance at the lowest possible cost, while directing funds to their
most productive uses.
A second benefit which markets can bring to the people who invest in them is their
ability to allow investors to diversify risk, and by doing so, reduce it. When I was studying
economics years ago, the important role of diversification in investment theory was just
beginning to be understood. Today. the first-thing a finance student learns is the extent to
which efficient, liquid stock markets can help an average investor maintain the rate of return
he or she enjoys, while reducing risk. This is very important in countries which are
continuing to develop, and in which a newly-emerging middle class is beginning to seek
investment outlets for further prosperity and advancement.
A third role of equity markets is as an outlet for institutionalized savings. In this
way. they can playa role in boosting national saving and reducing reliance on capital inflows
to fmance investment. Chile is a good example in that regard. The Chilean savings rate has
soared from 9.4 percent of GDP in 1982 to 25 percent last year. Much of the credit for that
growth must go to Chile's mandatory private pension system, which encouraged such savings
by allowing individuals to channel savings through private pension funds providing solid
annual returns. But pension growth coincided with the development of a burgeoning
domestic stock market that left Chile with a market capitalization that is 125 percent of GDP
-_ by far the deepe,t and best developed in Latin America, by a factor of three. Chile's is
also one of the few markets in which the number of companies listed has increased in recent
years, meaning that the market is channelling funds to small and medium-sized fIrms, not
merely giant industries. The payoff has been sustained growth.
.
A fourth function of stock markets is social -- the role they play in broadening the
base of investors with ownership claims in industry. and therefore a stake in an economy
under transformation. This too can be very important in countries undergoing sometimes
3
painful economic transformation. and in which It is important to develop a broader class with
a stake in the system. Developing such a shareholders' democracy can be one of the surest
ways to bolster support for economic transformation and reform.
Tapping Latin America's Potential
Directing capital most efficiently to spur growth. monitoring corporate management,
providing high returns that mobilize savings. and creating a new ownership class -- all of
these are essential functions which stock exchanges have played in Latin America's
transformation. The question, of course. is whether Latin American exchanges have reached
their fullest potential.
I would argue that despite the great growth that you have enjoyed, most exchanges
have a reservoir of potential that remains untapped. With (he exception of Chile, most stock
markets in the region are still undersized, both in terms of capitalization as a proportion of
economic activity, as well as the number of listed companies. For example. capitalization as
a proportion of GOP is about 94 percent in the United States and 130 percent in Great
Britain. In contrast, market capitalization to GDP remains well below 20 percent in almost
all Latin American countries. That suggests that regional exchanges enjoy an enormous
opportunity for expansion and growth.
Similarly, even in countries with larger equity markets, such as Mexico, the number
of companies listed remains limited -- only 204 last year for Mexico. That placed Mexico
behind almost all industrialized nations. and even behind developing nations such as
Malaysia, which had 478, Thailand, which had 389, and Pakistan and Egypt, both of which
had over 700. Most Latin American countries. with the exception of Brazil, similarly lie at
the bottom of the listings league. More must be done to ensure that markets exist for small
and mid-sized countries -- those that can best tap venture capital and local talents.
Steps for the Future
What must your exchanges do to meet their full potential, and continue to be a force
for economic growth in the years ahead? Two broad sets of measures must be taken. First.
stock exchanges must continue to work in tandem with governments to set up the kind of
regulatory environments and institutional infrastructure that will bolster investor confidence.
The payoff will be additional investment -- both domestic and foreign.
Second, I believe that all exchanges in our hemisphere must focus on harmonizing our
regulatory structures and integrating our markets. That was one of the key decisions reached
at the Summit of the Americas. Stock exchange integration is critical. if the vision of an
economically integrated and prosperous hemisphere is to become a reality.
The Regulatory Environment
Why is the regulatory environment so important? The key to market efficiency and
integrity is the free flow of information -- about prices, about corporate performance, and
about the relative risk and returns of investments. To be able to provide that kind of
4
information a market requires reliability, consistency, and transparency. Consistency in the
kind of accounting and reporting standards that companies follow makes nnssible the sorts of
useful analyses and comparisons that are the essence of a markets' infor~ation-generating
ability. Transparency -- both on the corporate side and in terms of trading price -- is
essential, to ensure that information generated is accurate. Without reliability, of course,
investors have no confidence in the information the market is giving them.
This lesson has not been lost on Latin American exchanges. Previously
underdeveloped exchanges, such as Panama's, have moved in recent years to draft new
securities market laws that cover the full gamut of activities, from initial public offerings to
secondary market transactions, exchange regulations, brokers, clearance, and settlement
organizations. More developed exchanges are bolstering self-regulation mechanisms to
combat market manipulation, and ensure greater transparency, as Chile's three exchanges did
recently.
Facilities and Trading Systems
In addition to the proper regulatory environment, transparency -- particularly for
trading prices -- requires state of the art exchange facilities. Ecuador, Peru, and Venezuela
have all introduced electronic order systems since 1994 -- Peru's as part of a major
technological modernization and merger project for the country's two largest exchanges,
supported by the Inter-American Development Bank. The Bolsa Electronica Ibero
Americana, which consists of the principal stock markets in Latin America, Spain and
Portugal, began operations in September, and will also include the stock markets of Brazil,
Argentina, Uruguay. Colombia, Ecuador, and Venezuela. Also worth noting is the recent
harmonization of trading and settlement practices between Argentina's two largest exchanges,
which will help promote greater consistency of information.
Settlement Practices
The speed and reliability of clearance and settlement systems can be a critical factor in
a foreign investor's decisions regarding which of many emerging markets to invest in.
Uncertanties and delays in the delivery of securities and settlements can harm local liquidity
enormously. Brazil's Comissao de Valores Mobiliarios introduced a three business day
settlement system last year, bringing the country up to international standards. Venezuela has
established a central securities depository. Both ate important steps that many exchanges
should follow.
Some argue that too much transparency, particularly relating to trading prices, is
dangerous. The theory is that news of a large transaction or movement can cause wild
trading swings and halt orderly trading.
Not only is that argument incorrect, but I believe the precise opposite is true. In a
market where there is little other information, reporting of a major purchase or sale may start
a bandwagon. On the other hand, informed investors will quickly learn how to measure true
value on the market. As long as such skilled investors receive transparent and reliable
5
Information quickly, they will buy or sell in the face of a stampede by others, restoring
orderly trading and pricing.
Consumer Protection
Regulations that protect consumers against fraud must go hand in hand with those on
accounting standards and transparency. While we may argue about the relative need for
consumer protection laws -- and the extent to which can!aI anplor should prevail -- [ believe
the growing complexity of financial products and transactions requires some effort to help
average consumers. That is particularly the case in countries In which an emerging middle
class is just beginning to learn how to Invest, and whose confidence must be won if increased
capital is to become available.
Government v. Self-Regulation
In desig'1ing the regulatory environment. there is a balance to be struck between selfregulation by exchanges and other securities organizations. and government-imposed
regulation. Experience in the United States and other developed financial markets suggests
that a mix of both self-regulation and government regulation is necessary. Those who
experimented with radical forms of self-regulation are now restoring some measure of
government-backed oversight. Of course, enforcement measures are crucial to ensuring that
violations of the rules are quickly and appropriately punished.
Integration
Let me turn to a second important set of measures which Latin American exchanges
should take to reach their full potential. Exchanges in this hemisphere need to become
increasingly integrated, both with one another, and with world capital markets. Barriers to
investors placing their funds in both domestic and foreign exchanges should be eliminated.
Hurdles to companies listing in several markets should be removed. And accounting and
regulatory standards across all our markets should be standardized to the greatest extent
possible, so that investors and analysts can make useful cross comparisons, and have a full
panoply of investment and trading options available to them.
Why is integration necessary to increase the depth and liquidity of Latin markets?
Why can't your exchanges go it alone?
First, even if domestic savings rates rise, most Latin economies will still not have a
sufficiently large pool of savings at home to fuel their ft:.ll growth potential. Your economies
will have to continue to look outside to foreign investors for some time to come.
A second and critical reason for harmonization is the diversification of risk that
becomes possible. National exchanges will never be large enough to afford domestic savers
the full benefits of portfolio diversification. Integration, by making it easier bcj) for foreign
funds to enter and domestic savings to be placed overseas, can further that useful
diversification function. This lowers the cost of capital to firms while reducing risks to
6
savers.
Third, cro~:,-listing of shares on many markets makes vast new amounts of liquidity
available. That allows smaller Latin American markets to draw on larger markets' efficiency
in selling equities to a wider range of global investors, with listings on local markets
continuing to provide domestic expertise and price information. Greater liquidity can also
help prevent volatility and sudden crises.
I have heard fears raised in Latin America, as well as in other parts of the developing
world, that allowing greater cross-listing of shares while removing barriers to placing
investments overseas could place developing exchanges at a competitive disadvantage with
larger, more established American and foreign exchanges. For example, when Brazil enacted
its enabling legislation to allow ADRs a few years ago, one heard it said that activity would
be drawn away from Brazilian exchanges, leaving them to wither and die.
Experience since then has proven the exact opposite to be the case. Brazil and other
Latin American countries have soared to the top of the league for ADR issues -- in fact
Brazil was second among emerging markets in 1994, with 28. And yet that activity has
coincided with enormous increases in market capitalization in Brazil and other countries, such
as Mexico, which have forged full speed ahead with cross-listing.
The lesson is clear. Listings are not a fixed pie. ADRs and cross-listings increase
activity in all markets, by raising liquidity and bolstering investor interest. Bankers in New
York and other major moriey centers tell me all the time that nothing stokes investor interest
more both in a company, and in an emerging market economy generally, than a new ADR
listing in New York. That is good for your exchanges. And it is good for your economies.
Conclusion
In conclusion, let me say that all of you here today are in an exceptionally enviable
situation. Your economies have undergone and are continuing to undergo powerful and farreaching transformations. The exchanges that you represent are uniquely well-suited to
fostering those transformations, and to taking advantage of the opportunities opened up by
competition and change. To do that requires that all securities markets in Latin America, and
in the Ibero American Federation, continue to implement the sorts of regulatory and
enforcement changes that will foster liquidity and depth. Moreover, just as is the case with
your economies at large, I believe that you should look outward as you seek to expand.
Integration is the key to your continued growth and success. An outward orientation is the
best way to assure that our hemisphere forms an integrated, prosperous region over the
coming ten years. Thank you.
7
TREASURY
omCE OF PUBllC AFFAIRS .1500 PENNSYLV~IAAVENUE,N.W.• ,WASIllNGTON, D.C .• 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
September 26, 1995
CON i ACT: Calvin Mitchell
(202) 622;.2920
Tax Increases on Working Families:
The Senate Republican Proposal to
Reduce the Earned Income Tax Credit (EITe)
On September 22, 1995 the Republican members of the Senate Finance Committee
released their plan to increase taxes on millions of lower-income working families by
slashing the EITC. The Finance Committee will be considering this plan September 26-28.
The Republican proposal would reduce the EITC; and thereby increase taxes, by
$41.5 billion over the next 7 years. (See attached "Earned Income Tax Credit Cuts" graph
and "Revenue Estimate" table.) This will subject 17 million low-income working Americans
to an immediate tax increase averaging $281, which will grow to $457 per year by the year
2005.
Low-income, working families would be especially hard hit.
•
The final phase of the 1993 EITC increase currently scheduled to become effective in 1996 would be eliminated for families with 2 or more qualifying
children. At the same time, the Republican plan would increase the so-called
phaseout rates that reduce the EITC as the taxpayer's income rises, thereby
effectively raising their marginal tax rates.
•
In 1996 alone, the Republican's proposal would result in a tax increase, on
average, of $372 for each of the 7.4 million working families -- including their
18.5 million children -- that are raising 2 or more children. (See attached
"Numbers of Taxpayers and Children Affected by EITC Proposal" table.)
•
The 5.3 million families with only 1 child would suffer an average tax increase
of $240 in 1996.
RR-587
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
2
•
By the year 2005, 21 percent of all families with children eligible for the
EITC under current law would lose that eligibility under the Republican
proposal.
Creepin~ Tax Increases. All EITC recipients with annual income currently in excess
of roughly $11,650 will be subject to creeping tax increases every year as the so-called
phaseout rates are increased. (See attached "Earned Income Tax Credit Parameters" table.)
Thus, recipients will see their EITC reduced simply because of inflationary increases in their
income.
Taxing Social Security Benefits of Low-Income Workers. Included in this package is
a proposal to tax social security payments received by approximately 1 million widowed,
retired and disabled taxpayers who care for about 2 million of their own children,
grandchildren, or other children. These social security recipients, whose average adjusted
gross income is $9,580, will be subject to an avera~e tax increase of $859.
Workers Not Residing with Qualifying Children. The modest EITC that was first
made available last year to very low-income workers who do not reside with qualifying
children would be eliminated. This component alone will subject 4.3 million taxpayers to an
average tax increase of $173.
Double Taxation of Child Support Payments. Working parents who receive child
support payments will, for the first time ever, suffer a tax increase simply because they are
fortunate to actually collect those payments. These payments are intended solely for the
benefit of their children.
•
This proposal would impose an unfair form of double taxation, as amounts
paid as child support (unlike alimony, for example) are generally taxable to the
parent paying the child support, and not to the parent receiving it. Under the
Republican plan, however, the parent paying child support will be taxed on
income out of which nondeductible child support payments are made and the
parent receiving child support who also claims the EITC will also be taxed on
the receipt of child support.
•
Among EITC recipients who collect child support, annual payments average
around $3,000. Under this aspect of the proposal alone, about 700,000
custodial parents will be subject to an average tax increase of $549 in 1996.
•
These custodial parents should be encouraged to seek and collect child support,
rather than being penalized for obtaining it.
Example. The effects of the Republican proposal can be illustrated by the example of
3
a married worker whose income of $16,500 is near the poverty level and who has 2 children.
Under current law, in 1996 that family would receive an EITC of $2.532, or $8 more than
the social security taxes paid with respect to their earnings. The Republican proposal would
reduce their 1996 EITC, and thereby increase their taxes, by $299. Moreover, because of
the annual increases in the phaseout rates, by the year 2000 this family's taxes will be $489
higher under the Republican proposal than under current Jaw. In 2005, the difference will
total $807. (See attached "Effect of Senate Finance Committee Mark on Married Worker"
table.)
* * * * *
The Republican package includes the EITC compliance initiatives proposed by the
Clinton Administration earlier this year. We continue to support those initiatives. However,
the Administration vigorously opposes the balance of the Republican proposal that increases
taxes on low-income working Americans, including the components that tax social security
benefits received by widowed, retired and disabled taxpayers and that subject child support
payments to double taxation.
-30-
Earned Income Tax Credit Cuts Under the Senate Finance Proposal
14
8_~ill~io~n~s~o~f~D~o~lI=a~rs~__________________________~
1-
12
$11.4
10
8
6
4
2
o
0-
$0.2
~
1996
1997
1998
1999
2000
2001
Fiscal Year
2002
2003
2004
2005
F i s c a l Ve.a...-
Revenue Estimate' Effect of EITC Proposals in Finance Committee Mark
Fiscal Years; $ Millions
----,997 .
1996
Outlays
Receipts
Total
Department of the Treasury
Office 01 Tax Analysis
- ---
----
-~-
..
199
4,243
4Q
- '4,655 .-
,!,Q!~
239
!,~~~
5,255
5,880
1999'-'5:096
.!..43Z
6,533
2000-
2001
2002
-------
-T4gg-- 5,907 ---6,3931,674
7.173
~1Q
g&Q~
7,847
8,595
2003
2004
6,926
2,503
9,429
7,508
2,852
10,360
-
2005
8,217
3,180
11,397
-- - - - - - -------
5-Year
Total
19,692
5,388
25,080
7-Year 10-Year
Total
Total
31,992
54,6.
9,530
1!.0;
41,522
72,7
September 22, 1995
Numbers of Taxpayers and Children Affected by EITC Proposals in Senate Finance Committee Mark
and Size of Average Tax Increase
1996 Law and levels: Millions
Number of
Children
Average Tax
Increase
Ta~pay~r~
Total
Combined Effect of Proposals to
Change Credit Rates, Repeal
Childless EITe, and Add Other Income
to Investrllent Cap and AGI for EITC*
Taxpayers with One Child
Taxpayers with Two or More Children
Taxpayers without Children
Total Affected Taxpayers
Department of the Treasury
Offic ~ of Tax Analysis
5.3
7.4
$240
$372
4.3
$173
18.5
n.a.
17.0
$281
23.8
5.3
September
2·2,
* The combined estimates take into account the interactions between the three proposals.
1995
Earned Income Tax Credit Parameters: Current Law and Senate Finance Committee Mark
Credit
Rate
Plateau
Beglnnlng--- End
POint
Point
Currenr
1995
Families with one child
Families with two or more children
Workers withOut children
Phase-out
Rate
" - ---- ..
Income
CuI-off
7.65~·o
$6,160
$8,640
54,100
$11.290
$11.290
$5,130
52.094
$3,110
S314
15.98%
20.22%
7.65%
$24,396
$26,673
$9.230
34.0°0
40,0%
7.65%
$6,340
$8,900
$4,230
$11,620
S11,620
: ~'30
S2.156
53,560
5324
1598%
21.06%
765%
$25,109
$28,524
$9.510
34.0~o
$12.000
$12,000
55.450
S2.224
S3,676
S334
15.98%
21,06%
7.65%
$25.915
$29.455
7.6:~"
$6,540
$9,190
$4,360
1998
Families With one child
Families with two or more children
Workers Wltnout children
34,0%
400%
765·.
56.750
S9,480
S4.500
$12.380
512,360
S5,630
52.295
S3,792
5344
1598%
21.06%
765%
$26.742
$30.386
$10.130
1999
Families With one child
Families with two or more children
Workers without children
34.0··(,
40.0%
765%
$6.970
$9.790
$4.650
S 12.780
$12.780
$5,810
S2.370
53,916
5356
15.98%
21.06%
7.65%
$27.610
$31.374
$10,460
2000
Families with one child
Families with two or more children
Workers without chIldren
340%
40.0%
7.65%
$7.190
$10.100
$4,790
$13.180
$13.180
S5,990
52,445
$4040
5366
15,98%
21.06%
765%
$28,478
$32.363
$10.760
1996
Families with one child
Families with two or more children
Workers without children
34.0%
36.0%
Law- -----.
Maximum
Credit
-_.- ---.
--
1997
Families With one child
Families with two or more children
Workers without children
40,0%
$9.610
Senare Fmance Commmee Mark
1996
Families With one child
Families With two or more children
34.0%
36.0%
$6.340
$8.900
$11.620
$11,620
S2.156
53.204
178%
199%
$23.720
$27.720
1997
Families With one child
Families with two or more children
34.0%
36.0%
$6.540
$9.190
$12,000
$12,000
52,224
S3,308
18.4%
20.5%
$24,100
$28. 100
1998
Families with one child
Families with two or more children
34.0%
36.0%
$6.750
$9.480
$12.380
$12.380
S2.295
53,413
190%
21.2%
$24,480
$28,480
1999
Families with one child
Families with two or more children
34.0%
36.0%
$6.970
59,790
$12.780
$12,780
52.370
S3.524
19.6%
21.9%
$24.860
$28.880
34.0%
36.0%
$7.190
$10,100
$13.180
$13.180
S2.445
S3.636
2000
Families with one Child
Families with two or more children
Department of the Treasury
Office of Tax Analysis
$25,280
20.2%
$29.280
22.6%
September 22. 1995
Effect at Senate Finance Committee Mark
On Married Worker With Two Children near Poverty Thresnold
Pre- Tax Income
Earnings
Other Sources
Total
16500
16500
a
a
16500
16500
Individual Income Taxes
Pre-Cred,1 Tax L,ab,hty
EITC
OASDHI Taxes
Employee Share
Employer Share
Total Federal I nd,v,du al Income and
OASDHI Taxes 11
o
o
-2532
-2233
1262
~26_2
1262
1262
o
o
-8
292
299
~O().o LevelS
Pre- Tax Income
Earnrngs
Other Sources
Total
Individual Income Taxes
Pre-Credit Tax Liability
EITe
OASOHI Taxes
Employee Share
Employer Share
Total Federal Individual Income and
OASDHI Taxes 11
18679
o
18679
18679
o
18679
o
o
o
-2882
-2393
489
o
1429
1429
-24
o
465
489
2u05 LevelS
Pre- Tax Income
Earnings
Other Sources
Total
Individual Income Taxes
Pre-Credl! Tax lIabll,ty
EITC
21760
21760
21760
21760
o
o
o
o
-3360
-2553
807
1665
1665
1665
o
-31
776
o
OASDHI Taxes
Employee Share
Employer Share
Total Federal IndiVidual Income and
OASOHI Taxes 11
Department ot the Treasurv
OffiCe of Tax AnalVSIS
1665
o
807
Septemoer
l' Does not Incluae excise taxes and olher Feaeral and Slale taxes borne Oy family
22.-1995 _.
uN"EWS
omCE OF PUBLIC AFFAIRS -1500 PENNSYLVANli\AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960
FOR IMMEDIATE RELEASE
September 26, 1995
Contact:
Jon Murchinson or Becky Lowenthal
(202) 622-2960
MEDIA ADVISORY
RUBIN AND GREENSPAN TO PREVIEW NEW U.S. CURRENCY
Treasury Secretary Robert E. Rubin, Federal Reserve Board Chairman Alan
Greenspan and U.S. Treasurer Mary Ellen Withrow will announce changes in U.S. currency
tomorrow, Wednesday, September 27.
The announcement will take place at 11 a.m. in the Cash Room of the Treasury
Department, 1500 Pennsylvania Avenue NW.
Secretary Rubin and Chairman Greenspan will discuss security features incorporated in
the new notes in order to stay ahead of advances in reprographic technologies and explain the
introduction process and timetable. The new $100 notes will enter circulation in early 1996.
Existing U.S. currency will continue to be valid as long as it is in circulation.
Cameras should be in place by 10 a.m. Media without Treasury, White House, State,
Defense or Congressional credentials wishing to attend should contact the Office of Public
Affairs at (202) 622-2960, with the following information: name, Social Security or foreign
passport number and date of birth, by 6 p.m. today. This information may be faxed to (202)
622-1999.
-30RR-588
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
UBLIC DEBTr'( NEWS
Department of the Treasury • Bureau of the Pubh<;,Debt e - Washinglon"DC 20239
IJC I L..d CJ v U z. 4 U
FOR IMMEDIATE RELEASE
September 26, 1995
RESULTS OF
ceNTACT:. Office of Financing
.,,'
i,
202-219-3350
TREASURY'~I~CTION
OF 2-YEAR NOTES
Tenders for $17,752 million of 2-year notes, Series AJ-1997,
to be issued October 2, 1995 and to mature September 30, 1997
were accepted today (CUSIP: 912827V33).
The interest rate on the notes will be 5 3/4%. All
competitive tenders at yields lower than 5.860% were accepted in
full. Tenders at 5.860% were allotted 3%. All noncompetitive and
successful competitive bidders were allotted securities at the yield
of .5.860%, with an equivalent price of 99.796. The median yield
was 5.820%; that is, 50% of the amount of accepted competitive bids
were tendered at or below that yield. The low yield was 5.790%;
that is, 5% of the amount of accepted competitive bids were
tendered at or below that yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$36,254,700
Accepted
$17,751,925
The $17,752 million of accepted tenders includes $862
million of noncompetitive tenders and $16,890 million of
competitive tenders from the public.
In addition, $818 million of tenders was awarded at the
high yield to Federal Reserve Banks as agents for foreign and
international monetary authorities. An additional $511 millio
of tenders was also accepted at the high yield from Federal
Rese~e.Banks for their own account in exchange for maturing
secur~t~es.
RR.-589
DEPARTMENT
OF
THE
TREASURY
N"uE"'WS
TREASURY
t.:
; ~)
OFFICE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W:. WAsHINGTON; O:C .• 20220 _ (202) 622-2960
FOR RELEASE AT 2:30 P.M.
September 26, 1995
CONTACT:
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $25,200 million, to be issued October 5,
1995. This offering will result in a paydown for the Treasury of
about $1,025 million, as the maturing weekly bills are
outstanding in the amount of $26,218 million.
Federal Reserve Banks hold $6,664 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $2,009 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356) for the sale and issue by the
Treasury to the public of marketable Treasury bills, notes, and
bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
RR-590
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED OCTOBER 5, 1995
September 26, 1995
Offering Amount .
$12,600 million
$12,600 million
Description of Offering:
Term and type of security
CUSIP number
Auction date
Issue date
Maturity date
Original issue date
Currently outstanding
Minimum bid amount
Multiples .
91-day bill
912794 W4 2
October 2, 1995
October 5, 1995
January 4, 1996
July 6, 1995
$14,853 million
$10,000
$ 1,000
182-day bill
912794 X9 0
October 2, 1995
October 5, 1995
April 4, 1996
April 6, 1995
$17,574 million
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids;
Accepted in full up to $1,000,000 at the average
Noncompetitive bids
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
Competitive bids
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
Competitive tenders
Payment Terms .
Prior to 12:00 noon Eastern Daylight Saving time
on auction day
Prior to 1:00 p.m. Eastern Daylight Saving time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
1REASURY
omCE OF PUBUCAFFAlRS -1500 PENNSYL
September 27, 1995
:' i _ '.
ADVISORY
INFORMATION PACKET ON NEW U.S. CURRENCY AVAILABLE BY FAX
B-ROLL AVAILABLE TO TELEVISION STATIONS
An informative package of background materials on the redesign of the
u.s. currency
is available from the Treasury Department through its interactive fax system.
To access these materials by fax, call (202) 622-2040 and follow the directions. The
following materials are available:
Document name
Document number
Advisory: Information Packet on New U.S. Currency
Available by Fax , B-Roll Available to Television Stations(l page)
591
Fact Sheet: Advanced Copier and Printer Technology (2 pages)
592
Press Release and Background, including graphic (6 pages)
Dated September 27, 1995
593
Remarks by Treasury Secretary Robert E. Rubin
Dated September 27, 1995(3 pages)
594
Remarks by Federal Reserve Board Chairman Alan Greenspan
Dated September 27, 1995(3 pages)
595
Fact Sheet: Technical Background and Description of Features (2 pages)
596
Remarks by U.S. Treasurer Mary Ellen Withrow(2 pages)
597
Fact Sheet: List of Studies on Currency Security Features(2 pages)
598
Fact Sheet: The History of Paper Money(2 pages)
599
Fact Sheet: Bureau of Engraving and Printing(2 pages)
600
Fact Sheet: The U.S. Secret Service and Counterfeiting(l page)
601
Fact Sheet: The Federal Reserve: Central Bank of the U.S.(2 pages)
602
All materials listed above (28 pages)
603
Television stations may request B-roll (Beta format) of the new currency in production
at the Bureau 01- Engraving and Printing (BEP) by contacting the BEP at (202) 874-3019 or
by calling your nearest Federal Reserve Bank branch.
RR-591
fUS
...
*US
....
•
/
I
f)
i' . ;"',.
.. " ,- '"
Advanced Copier and"PriJitef-Tectiitology
Advanced reprographic technology improve4JgljraII!aYf~JlYJ qy~gJ t~ 1990s. The technology
is expected to continue to improve into the next century. Some of tn'is equipmeJ)t is capable
of accurately reproducing the colors and fine-line detail of security documents and is seen as
a threat to currency.
, .
i: i •.: :~.~..,. I
I, \,
I
Market surveys indicate that as quality, affordability, and availability increase, advanced
equipment will become the standard in offices, copy centers and printing facilities. The color
copier/printer of the 90s has been compared with the color television of the '70s, when color
became the standard, rather than the exception.
Of the new technologies, advanced copiers, printers, electronic digital scanners, color
workstations and computer software can present threats to currency. During the early 90s,
the new technologies used in advanced copiers and printers merged and interfaced with each
other. They do not require extensive expertise to operate, and they are becoming widely
accessible through copy centers and corporate offices.
Advanced Full Color Copiers
Advanced full-color copiers have evolved into a digital electrophotographic process utilizing
digital scanners and computer technology to produce high quality plain paper copies. Many
of these copiers interface with personal computers. The scanner portion of the copier can be
used to scan an image into the computer or as the computer's output device. As the quality
continues to increase, providing greater dots per inch (dpi), the high-end digital copiers will
have the ability to reproduce much of the fine detail of currency.
Digital Electronic Scanners
Scanner equipment electronically scans an image or text from an original document and
digitizes it into a computer-readable form. Through the use of computer graphics software,
the image may be displayed on a screen, changed or combined with other images. The edited
image then can be stored in an electronic format, printed on a color output device or used to
make offset or gravure printing plates.
Scanner equipment is no longer confined to large printing, graphic design, or advertising
firms. Low-and medium- quality scanners are readily available to the individual. Highquality scanners are readily available in copy centers and corporate offices. The scanners
incorporated in advanced color copiers can, in some pieces of equipment, be interfaced with
personal computers and graphics programs.
Advanced color copiers and printing equipment using this technology can be a security threat
because of the flexible editing capabilities and fine detail reproductions. As the price of this
technology continues to drop, the availability of high quality scanners will increase.
RR-592
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE N.W.
WASHINGTON, DC 20220
Color Ink Jet - Copiers and Printers
Color ink jet copiers utilize scanner technology to digitize an image, which is then
reproduced using ink jet printer technology. These machines are capable of producing good
quality reproductions on plain paper. These machines are widely available and inexpensive.
Some of these ink jet copier machines can be interfaced with personal computers and
graphics software. The machines then can be used to scan an image into the computer or as
the computer output device.
Personal Computers and Graphics Software
Personal computers and graphics software combine the latest personal computer, graphics
software, printer/copier, video and scanner technologies. The images can be stored
indefinitely, copied electronically or transmitted to another location for printing. Output
quality depends on the dpi resolution of the scanner and printer capabilities. Printer
resolution is of greater importance because scanner input can be edited to enhance image
quality. As the price of personal computer technology continues (0 drop. the availability and
use of this technology to counterfeit currency and other security documents will increase.
DEPARTMENT
OF
THE
TREASURY
TREASURY0
omCE OF PUBLIC AFFAIRS • 1500 PENNSYL
AVENUE,· N.W.
EMBARGOED FOR RELEASE AT 11 AM
September 27, 1995
• WASHlNGTON, D.C .• 20220 •
(202) 622-2960
Contact: Hamilton Dix or
Rebecca Lowenthal
(202) 622-2960
TREASURY AND FEDERAL RESERVE ANNOUNCE NEW CURRENCY DESIGN
Treasury Secretary Robert E. Rubin and Federal Reserve Board Chairman Alan
Greenspan announced today that the U.S. will issue a new $100 note that has been redesigned
to incorporate numerous new and modified security features. The new note, which will be
released in early 1996, is the first of the U.S currency series to be redesigned to stay ahead of
advances in reprographic technology.
Secretary Rubin and Chairman Greenspan stressed the United States will not recall or
devalue any of the existing currency. Over $380 billion in U.S. currency is in circulation, twothirds of it overseas.
The introduction of the new design represents an important step in an on-going process
to maintain the security of the nation's currency by staying ahead as technologies such as color
copiers, scanners and printers become more sophisticated and accessible.
"What we are doing with the introduction of the 1996 series note is similar to what other
administrations have done throughout our history: we are improving the security of the
currency, and maintaining its integrity and global reputation," Secretary Rubin said. "It is being
modernized to stay ahead of printing technology, and the possibilities that technology will create
for counterfeiting," he said.
"I want to assure you that the United States has never recalled its currency and will not
do so now," Chairman Greenspan said. "Old notes will not be recalled or devalued. The
United States always honors its currency at its full face value, no matter how old."
New currency will be issued at the rate of one denomination per year, starting in early
1996 with the $100 bill. As older notes reach the Federal Reserve from depository institutions,
they will be replaced by the newer notes.
In order to make room for the new security features, the overall architecture of the
design has been changed somewhat and the borders simplified. Microprinting and security
(more)
RR.-593
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
-2-
threads. which first appeared in the 1991 series currency. have been effective deterrents
and will appear in the new notes. The new and modified features are:
•
A larger portrait, moved off-center to create more space to incorporate a watermark.
•
The watermark to the right of the portrait depicting the same historical figure as the
portrait. The watermark can be seen only when held up to the light.
•
A security thread that will glow red when exposed to ultraviolet light in a dark
environment. The thread will be in a unique position on each denomination.
•
Color-shifting ink that changes from green to black when viewed from different angles.
This feature appears in the numeral on the lower right-hand corner of the bill front.
•
Microprinting in tbe numeral in tbe note's lower left-hand corner and on Benjamin
Franklin's coat.
•
Concentric fine-line printing in the background of the portrait and on the back of the
note. This type of printing is difficult to copy well.
•
Other features for machine authentication and processing of the currency.
The protection of each note derives from the use of these individual features and their
accumulated effectiveness.
A worldwide education campaign will educate users of U.S. currency about the design
changes.
The new features were developed by the New Currency Design Task Force, comprised of
representatives from the Treasury Department, Federal Reserve System, U.S. Secret Service
and the Bureau of Engraving and Printing (BEP). A separate but complementary report by the
National Academy of Sciences, solicited by the BEP, was released in December 1993.
The announcement was held in the Cash Room of the U.S. Treasury Department.
Rubin and Greenspan were joined by U.S. Treasurer Mary Ellen Withrow, U.S. Secret Service
Director Eljay B. Bowron, Federal Reserve Board Governor Edward W. Kelley, Jr., and Bureau
of Engraving and Printing Director Larry Rolufs, and Treasury Under Secretary John D.
Hawke, Jr.
Remarks by Secretary Rubin and Chairman Greenspan and fact sheets on the currency
are available on Treasury's interactive fax system at (202) 622-2040.
-30-
omCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W. • WASHINCTON, D.C.• 20220. (202) 622-2960
EMBARGOED UNTIL 11 A.M. EDT
Remarks as Prepared for Delivery
September 27, 1995
REMARKS OF TREASURY SECRETARY ROBERT E. RUBIN
INTRODUcnON OF THE 1996 SERIES CURRENCY
DEPARTMENT OF THE TREASURY CASH ROOM
WASHINGTON, D.C.
The United States has the strongest economy in the world. We are the most
productive and competitive nation in the world. Our currency is a symbol of our
economic strength, and as such, it is respected, recognized and accepted around the
world. No other nation's currency has that degree of respect or acceptance. The steps
we are announcing this morning will protect that position by protecting the integrity and
security of our currency.
We are making our currency secure against the threat of advancing counterfeiting
technology, so it will continue to be respected throughout the world as a store of value
and the symbol of security it has been for so long. Today we do have a secure currency,
but we must stay ahead of the rush of technology. We're starting the process with the
$100 bill -- the most widely circulated bill in the world and the bill most often the focus
of global counterfeiting. There are more $100s circulating abroad than here in the
United States.
This is an example of government doing what it should, staying head of the curve.
The 1996 currency series is the result of nearly a decade of work by the professionals at
Secret Service, the Bureau of Engraving and Printing, the Treasury Department, the
Federal Reserve, and experts at the National Academy of Sciences. It has involved
consultations with central bankers throughout the world.
Looking beyond today's event, the Bureau of Engraving and Printing has set up a
research facility with the Johns Hopkins Applied Physics Laboratory -- the Securities
Technology Institute -- to asses emerging technology, evaluate features developed by
industry, and develop additional protections for currency and other security documents.
RR-594
(more)
F()1' press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
2
Before we show you the changes that will take U.S. currency into a new century, I
want to recognize a few individuals for their contributions to this project. As I call your
name please stand, and please hold the applause until I've called the last name. The
enhanced security features would not have been possible without the work of very
talented designers, some of the world's most skilled artisans and craftsmen, and a topnotch technical team. I want to recognize designer Jack Ruther, Thomas Hipchen, who
is among the world's pre-eminent portrait engravers, photo-engraver William Baechler,
photo-etcher Marion Keeler, and Tom Ferguson, head of our technical team. To all,
thank you for your contribution.
What we are doing with the introduction of the 1996 series note is similar to what
other administrations have done throughout our history; and that is, we are improving
the security of the currency, maintaining its integrity and global reputation. The existing
currency will be accepted as long as it is in circulation. It is not, let me repeat that, not
being withdrawn. It is being modernized to stay ahead of printer, copier, scanner and
computer technology, and the possibilities that technology will create for counterfeiting.
The last time our currency underwent a truly substantial change was three
generations ago. A major reason then was to protect the security of our currency. In
those days, the Secret Service only had to worry about engravers trying to copy genuine
U.S. bills. But times have changed, and our currency must be adjusted.
Even though we are issuing new notes, I want to assure you that the security
features in the existing U.S. currency are effective.
However, the time to improve our currency is while we're ahead, and that's what
we're doing -- staying ahead of the curve. The changes in the 1996 series currency are
driven by the need to stay ahead of advancing technology. These upgrades were strongly
recommended by the law enforcement community and various scientific experts,
including the National Academy of Sciences. The combined effect of all the changes -some of which I will not discuss for security reasons -- is substantial.
While the security improvements are more visible than others added in recent
years, the 1996 Series bills retain the basic American look and feel of the bills we're all
used to carrying. The size is the same. The faces are the same. The monuments are
the same. It still says "In God We Trust." And the color is still the same. The
greenback will still be green. We thought about adding colors but decided not to
because multiple colors are not themselves a security feature. There is one area on the
bill -- the lower right corner -- where a special ink will shift color from green to black
when held at a particular angle.
3
Now, as to some of the more obvious security features:
The portrait of Benjamin Franklin is enlarged and shifted somewhat to the left.
The portrait has several security features within it to trip up counterfeiters. And there is
a watermark to the portrait's right duplicating the individual in the portrait -- Franklin
on the $100, Grant on the $50, and so on. There is a special security thread running
vertically in the paper at different locations depending upon the denomination. The
borders are simplified to make room for these features.
Ten days ago our presses at the Bureau of Engraving and Printing began
production with the new plates. They're running right now. We already have about
200,000 32-bill sheets of $100 bills awaiting final processing, and another 500,000 sheets
ready to have the second side printed. That's a start, and we'll keep building our
inventory until we have enough to satisfy both normal demand, and the curiosity factor.
We'll also be conducting a public education campaign about the new features, here and
abroad.
So to recap, the existing currency is secure, all old currency will remain legal
tender, whether you want to use it here or overseas, and there will be no recall of
currency now in circulation. We're introducing a new series of bills to stay ahead of the
curve on the counterfeiting technology of the future. And finally, the new bills and their
security features will be instantly identifiable as U.S. currency.
Thank you.
-30-
i )' I~ f"
r
~""
' ' ' ' ' ' . ' •. ' ' !
' •• ~·I
.~
••
• • . ' •.•.
p
•
:).~.i.()
Remarks
Alan Greenspan
Chairman
Board of Governors of the Federal Reserve System
Washington, D.C.
Announcement of
New Currency Design
U.S. Treasury
Washington, D.C.
September 27, 1995
BIl-S9S
Thank you, very much, Mr. Secretary. I needn't tell you that the Federal Reserve
is quite pleased to be part of this event.
As many of you know, the Federal Reserve has the responsibility of putting
currency into circulation through the banking system.
These newly designed Notes will be handled in the same way as older currency.
Depository institutions obtain the currency they need for their customers from·
their district Federal Reserve Banks, and they dispose of surplus currency by depositing it in
their Reserve bank accounts.
In this process of receiving and paying out currency in response to the needs of
depository institutions, Federal Reserve Banks -- as they count incoming deposits -- also have
the opportunity to determine whether each Note is in good enough condition to be recirculated
and to verify each Note for genuineness.
Approximately two thirds of all Notes received by the Reserve Banks in incoming
deposits are fit enough to be recirculated.
The remaining third -- which are worn out or soiled -- are destroyed and replaced
by new Notes obtained from the Bureau of Engraving and Printing.
On average only nine Notes in every million are found to be counterfeit.
The introduction of the new currency will work this way:
The new $100 Notes -- the first in the series -- will be ready for circulation in
early 1996.
As banks deposit Notes in the regular course of business, the Federal Reserve
Banks will replace any older design Notes with Notes of the new design.
All existing Notes will continue to be legal tender.
The new designs of $50s, $20s, $10s and $Ss will be introduced individually over
the next several years.
The 12 Federal Reserve Banks and their 2S branches around the country provide
currency to the depository institutions in their territories as the depository institutions need it.
-2-
Consequently, not all depository institutions and not all depository institution
customers will be seeing the new $100 Notes immediately.
I want to assure you that the United States has never recalled its currency and will
not do so now.
Old Notes will not be recalled or devalued.
The United States has always honored its currency at its full face value, no matter
how old.
Our currency is trusted and accepted by people throughout the world. Because
of this special status, the protection of OUT currency from counterfeiting has long been a priority .
. ,. So, rest assured that the Department of the Treasury and the Federal Reserve
System remain fIrmly committed to that goal.
And now, Mr. Secretary, I believe we are ready to introduce the redesigned
currency.
YOUR MONEY MATTERS
OCT L:u U u U 2 5 9
"
•
u
~
"
'*
Techni~al Ba~k.g.r.o~nd
Security Features
The Department of the Treasury's Bureau of Engraving and Printing (BEP) is responsible for
producing the new series currency. The Federal Reserve System will introduce the new currency
beginning with Series 1996 $100 notes. The new feattlres - including enlarged off-center portrait,
watermark, concentric fine-line patterns, and color-shifting ink - were selected after extensive
testing and evaluation of approximately 120 numerous banknote security devices, many of which are
used successfully by other countries with lower production and circulation demands.
Other pre-existing security features (security thread and microprinting) are included in the new
notes and have changed only slightly.
Evaluation Criteria
Effectiveness
Counterfeit deterrent effectiveness was tested by reprographic
equipment manufacturers and government scientists. They also
considered the ease of public and cash handler recognition.
Durability
Durability was tested under the rigors of normal circulation.
Tests included crumpling, folding, laundering, and soaking in a
variety of solvents such as gasoline, acids, and laundry products.
Developmental
The total cost was $765,000: $265,376 to fund the National
Academy of Sciences studies, and approximately $500,000 to
purchase test quantities of features and carry out internal BEP
evaluations.
Production Costs
Research and production expenses will increase the cost of each
note by a fraction of a cent. The Federal Reserve is funding the
development and introduction of the new currency through
earnings the Federal Reserve receives from interest on its
holdings of U.S. government securities and on fees that are
charged to depository institutions for providing services such as
the processing and clearing of checks.
Appearance
The currency still looks very American. The size of the notes,
basic colors, historical figures and national symbols are not
changing. New features were evaluated for their compatibility
with the traditional design of United States currency.
RR-596
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE N.W.
WASHINGTON. DC 20220
The New Features
\Vatermark
A watermark is formed by varying paper density in a small area
during the papermaking process. The image is visible as darker
and lighter areas when held up to the light. The watermark does
not copy on color copiers. It depicts the same historical figure as
the engraved portrait. This similarity provides an easy way to
verify the note and makes it harder to use lower denomination
paper to prim counterfeit higher denominations.
Color Shifting
Inks
These inks change color when viewed on the new note from
different angles. The ink appears black when viewed directly
and changes to green when the note is tilted.
Concentric FineLine Patterns
This type of line structure appears normal [0 the human eye but
is difficult for current scanning equipment to properly resolve.
Enlarged OffCenter Portrait
A larger portrait can incorporate more detail, making it easier to
recognize and more difficult to coun[~rf~it. It also provides an
easy way for the public to distinguish the new design from the
old. The portrait is shifted otT center to provide room for a
watermark and unique "lanes" for the security thread in each
denomination. The slight relocation also reduces wear on the
portrait by removing it from the center. which is frequently
folded.
Pre-Existing Security Features
Security Thread
A security thread is a thin thread or rihhon running through a
banknote substrate. It is a versatile feature. with many types
currently available, including microprinted, metallic, magnetic,
windowed and embedded. The thread will glow red when held
under an ultraviolet light. This characteristic makes it
impossible to copy with a color copier that uses reflected light to
generate an image. Using a unique thread position for each
denomination guards against certain counterfeit techniques, such
as bleaching ink off a lower denomination and using the paper to
"reprint" the bill as a higher value note. The unique position
also can be used by currency-accepting equipment to determine
the value of the note, especially if the threads are machinedetectable. This security feature, which first appeared in Series
1990 currency, is included in the new design; however, its
position will shift according to the currency denomination for
the reasons mentioned previously.
l\Iicroprinting
This print appears as a thin line to the naked eye, but the
letterin.g can easily be read using a low-power magnifier. The
resolur.lOn of most current copiers is not sufficient to copy such
fine pnn~. On the newly designed $100 bills, microprinting
appears In the lower left corner and on Benjamin Franklin's
lapel.
DEPARTMENT
OF
THE
TREASURY
NEWS
TREASURY·
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
EMBARGOED UNTIL 11 AM. EDT
Remarks as Prepared for Delivery
Sept. 27, 1996
TREASURER OF THE UNITED STATES MARY ELLEN WITHROW
INTRODUcnON OF 1996 SERIES CURRENCY
THE TREASURY DEPARTMENT CASH ROOM
WASHINGTON, D.C.
Good morning, and welcome to a very historic day here at the Treasury
Department. I never thought that in my career I'd follow Ben Franklin. We're both on
the money - his picture, and my signature. I thought he had the better of the deal until
I found out you had to be dead to have your picture on the currency. Thanks, but I'm
not going to trade.
Before I go any funher, I want to thank the National Portrait Gallery for lending
us the historic portrait of Benjamin Franklin, the one from which the engraving for our
$100 bill was made. I also want to acknowledge the important contribution of the
National Academy of Sciences which conducted a counterfieting study for the Treasury
Department.
In addition, I want to thank Federal Reserve Chairman Alan Greenspan for the
Federal Reserve's assistance. The Federal Reserve ultimately underwrote the costs of
the extensive research by the National Academy of Sciences and the testing that went
into development of the 1996 series of currency. The costs of developing, testing and
getting to the production stage of these bills totalled over three-quarters of a million
dollars.
Today we are doing what administrations through two centuries have done acting to protect the stability and soundness of our financial system by further strengthing
the security of our currency. That's what Secretary Mellon and Treasurers H.T: Tate
and W.O. Wood were doing the last time a project of this scope was underaken protecting our currency.
RR-597
(more)
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
2
The production of the 1996 series of bills has been a major undertaking,
conducted in cooperation with some of the top experts in the field of printing and
counterfieting deterrence. The staff at the Bureau of Engraving and Printing have been
working, I must say, under very heavy security and secrecy to protect the integrity of this
undertaking.
To give you an idea of the scope of this project, we have been ordering l.2
million sheets of paper a week since the middle of August in anticipation of starting
production of $100 bills. We will be printing and stockpiling these notes until well into
the new year to make certain there are sufficient supplies to meet the demand when they
are introduced. In 1929, when the 1928 design was introduced into circulation, the
announcement spoke of the curiou"sity factor -- the need to produce enough to meet the
extra demand caused because people wanted a bill just to see what it looks like.
Because of the world-wide acceptance of our currency, we will stockpile enough to meet
both the regular demands of commerce 'and the curiosity factor.
By way of comparison, there was $5 billion of U.S. currency in circulation back in
1929. Today, there is more than $380 billion in paper currency circulating, about twothirds of it overseas. Initially, we are printing the 1996 series S100 bills here at the
facility in Washington, and as time goes by and as we start introducing notes of lower
denominations, we will also begin printing the bills at our facility in Fort Worth, Texas.
In closing, I want to underscore a point: none of the money now in circulation
will be recalled as a result of the introduction of the new bills, none. Both the
currencies will be in circulation and both will be good.
Thank you.
-30-
Studies
United States Currency Securit)' Features
Security Thread
and Microprinting
Reactions to tht: New US. Currcnc.\': Anal.vsis of Focus Group
DisCltssions, November 3, 1986. Market Facts Inc., funded by
the Federal Reserve Board.
To determine public reaction to currency with security thread
and microprinting. Focus group participants were satisfied with
their currency but would accept the addition of a security thread
and microprinting for well communicated counterfeit deterrent
reasons.
Counterfeit Threat
Adl'llnced Reprographic S.vstems: CouJlterfeiting Threat
Assessment and Dt!lerrellt Measures, June, 1986. National
Academy of Sciences, funded by the Bureau of Engraving and
Printing.
To assess counterfeit threats from specific advanced
reprographic equipment and recommend counterfeit deterrents.
Confirmed threat and recommended action. For near term,
suggested combination of convenrional deterrent devices,
including a security thread.
Counterfeit Deterrent Features.!iJr the NeXT-Generation
Currency Design. December, 1993. National Research Council,
funded by the Department of the Treasury.
To analy7t and recommend o\'crt clillotcrt'eit detelTent features
that .:ould be incorporated into a rede~ign of U.S. banknotes.
Beginning in 1996, U.S. paper currency will be redesigned to
incorporate anti-counterfeiting features. Features recommended
included color shifting ink. a watcm:ark. microprinting,
concentric fine lines and a securitY' thread.
RR-598
D EPA R T MEN T
0 F THE T REA 5 U R Y
1 500
P [ N " S " L 'c A '" : A
A v Fe N U EN, \N ,
WAS H I N G TON.
DC
202 2 0
Visual Deterants
Currency Features for Visually Impaired People, 1995. National
Research Council, funded by the Bureau of Engraving and
Printing.
To analyze and recommend overt counterfeit deterrence features
that could be incorporated into a redesign of U.S. banknotes for
use by the visually impaired. Recommended long range
systematic planning as a regular part of the mission within the
Department of the Treasury,
Design Change
Reactions
Reactions to Us. Currenc.v Redesign: Analysis of Focus Group
Discussion, September 21. 1983. Market Facts Inc., funded by
the Federal Reserve Board.
To obtain further data on public opinion regarding currency
design. Found public willing to accept design changes for
counterfeit protection.
Advanced Imaging
Technologies
The Impact of Emerging Imaging Technologies on Counterfeiting
of us. Currency, August 16, 1983. Batelle Columbus
Laboratory. funded by Federal Reserve Board.
To evaluate counterfeit threat from advanced copier and printer
technology. Found question not whether color copies will
present a threat but when.
u.s. Currency Acceptance
Final Report: Stage Two. Public Acceptance Acceptance of
Proposed Changes in US. Currency Project, February 23, 1981.
University of Michigan Graduate School of Business, Division
of Research, funded by the Federal Reserve Board.
To determine public opinion on currency redesign. Found the
public satisfied with currency design but supportive of a design
change to deter counterfeiting.
YOUR MONEY MATTERS
*U.".U9".
).)
.,
~
I lJ
The History of Paper Money
In the early days of this nation, before and just after the American Revolution, Americans used
English, Spanish, and French currencies.
Colonial Notes
1690
Continental Currency
1775
Nation's First Bank
1781
The Dollar
1785
First U.S. Bank
1791
The Massachusetts Bay Colony issued the first paper money in
the colonies, which would later form the United States.
American colonists issued paper currency for the Continental
Congress to finance the Revolutionary War. The notes were
backed by the "anticipation" of tax revenues. Without solid
backing and easily counterfeited, the notes quickly became
devalued, giving rise to the phrase "not worth a Continental."
The Continental Congress chartered the Bank of North America
in Philadelphia as the nation's first "real" bank to give further
support to the Revolutionary War.
The Continental Congress adopted the dollar as the unit for
national currency. At that time, private bank note companies
printed a variety of notes.
After adoption of the Constitution in 1789, Congress chartered
the First Bank of the United States until 1811 and authorized it to
issue paper bank notes to eliminate confusion and simplify trade.
The bank served as the U.S. Treasury's fiscal agent, thus
performing the first central bank functions.
1792
The federal monetary system was established with the creation of
the U.S. Mint in Philadelphia. The first American coins were
struck in 1793.
Second U.S. Bank
The Second Bank of the United States was chartered for 20 years
until 1836.
Monetary System
1816
State Bank Notes
1836
Civil War
1861
With minimum regulation, a proliferation of 1,600 local statechartered, private banks issued paper money. State bank notes,
with over 30,000 varieties of color and design, were easily
counterfeited. That, along with bank failures, caused confusion
and circulation problems.
On the brink of bankruptcy and pressed to finance the Civil War,
Congress authorized the United States Treasurv to issue paper
money for the first time in the form of non-interest bearing
Treasury Notes called Demand Notes.
RR-599
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE N.W.
WASHINGTON, DC 20220
Greenbacks
1862
The Design
1863
Gold Certificates
1865
Secret Service
1865
National Bank Notes
1866
Bureau of Engraving
and Printing
1877
Silver Certificates
1878
Federal Reserve Act
1913
Standardized Design
1929
In God We Trust
1957
Security Thread and
Microprinting
1990
Currency Redesign
1994
Demand Notes were replaced by United States Notes.
Commonly called "greenbacks," they were last issued in 1971.
The Secretary of the Treasury was empowered by Congress to
have notes engraved and printed, which was done by private
banknote companies. The notes were signed and affixed with
seals by six Treasury Department employees.
The design of U.S. currency incorporated a Treasury seal, the fine
line engraving necessary for the difficult -to-counterfeit intaglio
printing, intricate geometric lathe work patterns, and distinctive
cotton and linen paper with embedded red and blue fibers.
Gold Certificates were issued by the Department of the Treasury
against gold coin and bullion deposits and were circulated until
1933.
The Department of the Treasury established the United States
Secret Service to control counterfeiting. At that time, counterfeits
amounted to one-third of all circulating currency.
National Bank Notes, backed by U.S. government securities,
became predominant. By this time 75 percent of bank deposits
were held by nationally-chartered banks. As State Bank Notes
were replaced, the value of currency stabilized for a time.
The Department of the Treasury's Bureau of Engraving and
Printing started printing all U.S. currency.
The Department of the Treasury was authorized to issue Silver
Certificates in exchange for silver dollars. The last issue was in
the Series of 1957.
After 1893 and 1907 financial panics, the Federal Reserve Act of
1913 was passed. It created the Federal Reserve System as the
nation's central bank to regulate the flow of money and credit for
economic stability and growth. The system was authorized to
issue Federal Reserve Notes, now the only U.S. currency
produced and 99 percent of all currency in circulation.
Currency was reduced in size by 25 percent and standardized
with uniform portraits on the faces and emblems and monuments
on the back.
Paper currency was first issued with "In God We Trust" in 1957.
The inscription appears on all currency Series 1963 and later.
A security thread and microprinting were introduced to deter
counterfeiting by advanced copiers and printers. The features
first appeared in Series 1990 $100 and $50 notes. By Series
1993, the features appeared in all denominations except $1 notes.
The Secretary ~f the Tre.asury announced that U.S. currency
would be redeSIgned to Incorporate a new series of counterfeit
deterrents. The new notes will be issued in 1996.
•
u
•
·[":':'1· .
-.I
, _
~ !
j
" '.)
'l_'I
'j'
(_
, I
,
I
f
Department of the Treasury
Bureau of Engraving and Printing:
The U.S. Government's Security Printer
•
Since October I, 1877, all United States currency has been printed by the Bureau of Engraving
and Printing, which started out as a six-person operation using steam powered presses in the
Department of Treasury's basement.
•
Now 1,800 Bureau employees occupy 25 acres of floor space in two Washington, D.C. buildings
flanking 14th Street. Currency and stamps are designed, engraved, and printed 24 hours a day
on 30 high-speed presses, A'1 additional 700 Bureau employees are at the Western Currency
Facility in Fort Worth, Texas, where currency is printed 16 hours a day, 5 days a week on 10
high-speed presses.
•
In 1995, at a cost of 3,8 cents each, over 9 billion notes worth about $129 billion will be
produced for circulation by t~ P: Ferleral Reserve System, Ninety-five percent will replace unfit
notes and five percent will support economic growth. At anyone time, $200 million in notes
may be in production,
•
Notes currently produced are the $1 (45 percent of production time), $5 and $10 (12 percent
each), $20 (26 percent), $50 (2 percent), and $100 (3 percent).
•
The Bureau also prints White House invitations and some 500 engraved items, such as visa
counterfoils, naturalization documents, commissions, and certificates for almost 75 Federal
departments and agencies.
Tours
•
The Bureau of Engraving and Printing is one of the most popular touri st stops in Washingtonover 700,000 visit the printing facility each year.
•
Free 20-minute guided tours are offered Monday through Friday, 9 a.m . - 2 p.m., except for
Federal holidays and the week between Christmas and New Year's. Tours start on Raoul
Wallenberg Place (formerly 15th Street). During the summer months (June-August) afternoon
tours are given from 4 p.m. - 7:30 p.m.
•
Visitors can see press runs of 32-note currency sheets, examiners overseeing production to
ensure high-quality notes, the application of Federal Reserve and Treasury seals and 4,000 note
"bricks" being readied for distribution to Federal Reserve Banks.
•
Beginning in the fall of 1995, tours of postage stamp product:'10 also can be taken.
RR-600
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE
N . W.
WASHINGTON ,
DC
20220
Visitors Center
•
At the \'i"ltur" Center. t1l'ltory, production, and counterfeit exhibits showcase interesting
Inform~tIon ~bout l'nited States currency.
•
\1any unlljue item" c~n be purchased at the sales counter. Items include uncut currency sheets
of ~2, 16. ur -+ S I notes: S 150 worth of shredded currency in plastic bags that are sold for S I:
engraved c(.)llcctur,,' prInts: souvenir cards: and Department of the Interior Duck Stamps.
\lail Order Sales
•
Per-;on-; \\I-;hmg to receive notes on new Bureau products or to order by mail can write: \1ail
Order S~lc", Burc~u of En£r~\in£ and Printin£, I-+th and C Streets, S.\V.. Room 513-\1.
\\·a-;hingtun. D.C 20228. ~ Credit card purcha~es of Bureau products are available by calling
(202) 8/-+-~~ 16, \1onday through Friday, 8 a.m. - 3:30 p.m.
.U5
....
US".
, ,I
I
I \;
I
\ .... V 1
The U.S. Secret Service and Counterfeiting
•
The United States issued its first national currency notes in 1861.
•
By the end of the Civil War, one third of all U.S. paper currency in circulation was counterfeit.
•
On July 5, 1865, the Secret Service was created within the U.S. Department of the Treasury with
the sole mission of suppressing counterfeit currency. In less than a decade, counterfeiting was
sharply reduced.
•
To stem counterfeiting, the Secret Service works in conjunction with local, state, federal and
foreign law enforcement agencies.
•
The Secret Service also maintains close working relationships with the Federal Reserve Banks
and domestic as well as international commercial banking institutions.
•
Thanks to such cooperation, approximately 90 percent of all known counterfeit U.S. currency is
seized before it reaches the public.
•
At present, the amount of counterfeit U.S. currency found in circulation represents approximately
1 l/100th of 1% of the U.S. currency in circulation.
•
The most passed counterfeit denomination is the $20 note, followed, respectively, by the $100
note, the $10 note, the $50 note, the $5 note, and the $1 note. The $100 note is the most common
foreign-produced counterfeit note.
•
To aid in counterfeit investigations, agents use the Service's modern, well-equipped Forensic
Services Laboratory that includes:
A complete library of specimen notes dating back to 1865;
The largest watermark file in existence;
The largest ink library in existence;
Equipment to examine and analyze notes counterfeited by various types of printing
methods as well as by office machine copiers.
•
In 1994, the disposition of prosecuted arrests showed a 99.5 percent conviction rate.
For further information, please contact:
United States Secret Service
Office of Government Liaison and Public Affairs
1800 G Street, N.W., Room 805
\Vashington, D.C. 20223
Phone 202/435-5708
RR-601
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE
N.W.
WASHINGTON,
DC 20220
us",
•
YOUR MONEY MATTERS
,:
i ,c
I,..!L·'
':
I
-:,.,1 './
J
'
,
u!..
t
"J
'.,
I
us",*us",.
The Federal Reserve:
Central Bank of the United States
Federal Reserve System
The Federal Reserve System was created by the Federal Reserve
Act, which was passed by Congress in 1913, in order to provide a
safer and more flexible banking and monetary system. For
approximately 100 years before the creation of the Federal
Reserve, periodic financial panics had led to failures of a large
number of banks, with associated business bankruptcies and
general economic contractions. Following the studies of the
National Monetary Commission, established by Congress a year
after the particularly severe panic of 1907, several proposals were
put forward for the creation of an institution designed to counter
such financial disruptions. Following considerable debate, the
Federal Reserve System was established. Its original purposes
were to give the country an elastic currency, provide facilities for
discounting commercial credits, and improve the supervision of
the banking system.
Ecomomic Stability
and Growth
From the inception of the Federal Reserve System, it was clear
that these original purposes were aspects of broader national
economic and financial objectives. Over the years, stability and
growth of the economy, a high level of employment, stability in
the purchasing power of the dollar, and a reasonable balance in
transactions with foreign countries have come to be recognized as
primary objectives of governmental economic policy.
Currency Circulation
An important function of the Federal Reserve System is to ensure
that the economy has enough currency and coin to meet the
public's demand. Currency and coin are put into or retired from
circulation by the Federal Reserve Banks, which use depository
institutions as the channel of distribution. When banks and other
depository institutions need to replenish their supply of currency
and coin-for example, when the public's need for cash increases
around holiday shopping periods--depository institutions order
the cash from the Federal Reserve Bank or Branch in their area,
and the face value of that cash is charged to their accounts at the
Federal Reserve. When the public's need for currency and coin
declines, depository institutions return excess cash to a Federal
Reserve Bank, which in tum credits their accounts.
RR-602
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE N.W.
WASHINGTON,
DC
20220
Unfit and Counterfeit
Notes
The Federal Reserve Banks and the U.S. Department of the Treasury
share responsibility for maintaining the physical quality of United
States paper currency in circulation. Each day, millions of dollars of
deposits to Reserve Banks by depository institutions are carefully
scrutinized. The Reserve Banks are responsible for receiving,
verifying, authenticating, and storing currency and shipping it as
needed. Currency in good condition is stored for later distribution.
Worn or mutilated notes are removed from circulation and
destroyed. Counterfeit notes are forwarded to the U.S. Secret
Service, an agency of the Treasury Department.
Federal Reserve
Notes
Virtually all currency in circulation is in the form of Federal Reserve
notes, which are printed by the Bureau of Engraving and Printing of
the U.S. Treasury. The Reserve Banks are currently authorized to
issue notes in denominations of $1, $2, $5, $10, $20, $50, and $100.
Coins are produced by the Treasury's United States Mint.
Cash Transfers
Currency and coin are used primarily for small transactions. In the
aggregate, such transactions probably account for only a small
proportion of the value of all transfers of funds.
DEPARTMENT
OF
THE
TREASURY
~~/78fq~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
................................
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C .• 20220. (202) 622-2960
September 27, 1995
PRESS PACKAGE: THE INTRODUCTION OF THE 1996 SERIES
CURRENCY REDESIGN
RR-603
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT
OF
THE
TREASURY
~/78Iq~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .
......................................
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C .• 20220. (202) 622-2960
September 27, 1995
ADVISORY
INFORMATION PACKET ON NEW U.S. CURRENCY AVAILABLE BY FAX
B-ROLL A VAILABLE TO TELEVISION STATIONS
An informative package of background materials on the redesign of the U.S. currency
is available from the Treasury Department through its interactive fax system.
To access these materials by fax, call (202) 622-2040 and follow the directions. The
following m?terials are available:
Document name
Document number
Advisory: Information Packet on New U.S. Currency
Available by Fax, B-Roll Available to Television Stations(l page)
591
Fact Sheet: Advanced Copier and Printer Technology (2 pages)
592
Press Release and Background. including graphic (6 pages)
Dated September 27. 1995
593
Remarks by Treasury Secretary Robert E. Rubin
Dated September 27, 1995(3 pages)
594
Remarks by Federal Reserve Board Chairman Alan Greenspan
Dated September 27, 1995(3 pages)
595
Fact Sheet: Technical Background and Description of Features (2 pages)
596
Remarks by U.S. Treasurer Mary Ellen Withrow(2 pages)
597
Fact Sheet: List of Studies on Currency Security Features(2 pages)
598
Fact Sheet: The History of Paper Money(2 pages)
599
Fact Sheet: Bureau of Engraving and Printing(2 pages)
600
Fact Sheet: The U.S. Secret Service and Counterfeiting(l page)
601
Fact Sheet: The Federal Reserve: Central Bank of the U.S.(2 pages)
602
All materials listed above (28 pages)
603
Television stations may request B-roll (Beta format) of the new currency in production
at the Bureau of Engraving and Printing (BEP) by contacting the BEP at (202) 874-3019 or
by calling your nearest Federal Reserve Bank branch.
RR-591
.US"·US".
Advanced Copier and Printer Technology
Advanced reprographic technology improved dramatically during the 1990s. The technology
is expected to continue to improve into the next century. Some of this equipment is capable
of accurately reproducing the colors and fine-line detail of security documents and is seen as
a threat to currency.
Market surveys indicate that as quality, affordability, and availability increase, advanced
equipment will become the standard in offices, copy centers and printing facilities. The color
copier/printer of the 90s has been compared with the color television of the '70s, when color
became the standard, rather than the exception.
Of the new technologies, advanced copiers, printers, electronic digital scanners, color
workstations and computer software can present threats to currency. During the early 90s,
the new technologies used in advanced copiers and printers merged and interfaced with each
other. They do not require extensive expertise to operate, and they are becoming widely
accessible through copy centers and corporate offices.
Advanced Full Color Copiers
Advanced full-color copiers have evolved into a digital electrophotographic process utilizing
digital scanners and computer technology to produce high quality plain paper copies. Many
of these copiers interface with personal computers. The scanner portion of the copier can be
used to scan an image into the computer or as the computer's output device. As the quality
continues to increase, providing greater dots per inch (dpi), the high-end digital copiers will
have the ability to reproduce much of the fine detail of currency.
Digital Electronic Scanners
Scanner equipment electronically scans an image or text from an original document and
digitizes it into a computer-readable form. Through the use of computer graphics software,
the image may be displayed on a screen, changed or combined with other images. The edited
image then can be stored in an electronic format, printed on a color output device or used to
make offset or gravure printing plates.
Scanner equipment is no longer confined to large printing, graphic design, or advertising
firms. Low-and medium- quality scanners are readily available to the individual. Highquality scanners are readily available in copy centers and corporate offices. The scanners
incorporated in adv2nced color copiers can, in some pieces of equipment, be interfaced with
personal computers and graphics programs.
Advanced color copiers and printing equipment using this technology can be a security threat
because of the flexible editing capabilities and fine detail reproductions. As the price of this
technology continues to drop, the availability of high quality scanners will increase.
RR-592
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE
N.W.
WASHINGTON,
DC
20220
Color Ink Jet - Copiers and Printers
Color ink jet copiers utilize scanner technology to digitize an image, which is then
reproduced using ink jet printer technology. These machir:es are capable of producing good
quality reproductions on plain paper. These machines are widely available and inexpensive.
Some of these ink jet copier machines can be interfaced with personal computers and
graphics software. The machines then can be used to scan an image in£O the computer or as
the computer output device.
Personal Computers and Graphics Software
Personal computers and graphics software combine the latest personal computer, graphics
software, printer/copier, video and scanner technologies. The images can be stored
indefinitely, copied electronically or transmitted to another location for printing. Output
quality depends on the dpi resolution of the scanner and printer capabilities. Printer
resolution is of greater importance because scanner input can be edited to enhance image
quality. As the price of personal computer technology continues to drop, the availability and
use of this technology to counterfeit currency and other security documents will increase.
DEPARTMENT
OF
THE
TREASURY (.)
TREASURY
NEW S
~~/78~9~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
......................................
OFFlCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C.. 20220. (202) 622-2960
EMBARGOED FOR RELEASE AT II AM EST
September 27, 1995
Contact: Office of Public Affairs
(202) 622-2960
TREASURY AND FEDERAL RESER VE ANNOUNCE NEW CURRENCY DESIGN
Treasury Secretary Robert E. Rubin and Federal Reserve Board Chairman Alan
Greenspan announced today that the U.S. will issue a new $lOO note that has been redesigned
to incorporate numerous new and modified security features. The new note, which will be
released in early 1996, is the hst of the U.S currency series to be redesigned to stay ahead of
advances in reprographic technology.
Secretary Rubin and Chairman Greenspan stressed the United States will not recall or
devalue any of the existing currency. Over $3~O billion in U.S. currency is in circulation, twothirds of it overseas.
The introduction of the new design represents an important step in an on-going process
to maintain the security of the nation's currency by staying ahead as technologies such as color
copiers, scanners and printers become more sophisticated and accessihle.
"What we are doing with the introduction of the 1996 series note is similar to what other
administrations have done throughout our history: we are improving the security of the
currency, and maintaining its integrity and global reputation," Secretary Rubin said. "It is being
modernized to stay ahead of printing technology, and the possibilities that technology will create
for counterfeiting," he said.
"I want to assure you that the United States has never recalled its currency and will not
do so now," Chairman Greenspan said. "Old notes will not be recalled or devalued. The
United States always honors its currency at its full face value, no matter hmv old."
New currency will be issued at the rate of one denomination per year, starting in early
1996 with the $100 bill. As older notes reach the Federal Reserve from depository institutions,
they will be replaced by the newer notes.
In order to make room for the new security features, the overall architecture of the
design has been changed somewhat and the borders simplified. Microprinting and security
(more)
RR-593
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
-2threads, which first appeared in the 1991 series currency, have been effective deterrents
and will appear in the new notes. The new and modified features are:
•
A larger portrait, moved off-center to create more space to incorporate a watermark.
•
The watermark to the right of the portrait depicting the same historical figure as the
pcrtrait. The watermark can be seen onl y when held up to the light.
•
A security thread that will glow red when exposed to ultraviolet light in a dark
environment. The thread will be in a unique position on each denomination.
•
Color-shifting ink that changes from green to black when viewed from different angles.
This feature appears in the numeral on the lower right-hand corner of the bill front.
•
Microprinting in the l1l'meral in the note 's lower left-hanJ corner and on Benjamin
Franklin's coat.
•
Concentric fine-line printing in the background of the portrait and on the back of the
note . This type of printing is difficult to copy well.
•
Other feature s for machine ;Jut he ntication and processing of th e currency.
The protection of each note deri ves from the use of these individual features and their
accumulated effectiveness.
A worldwide education campaign will educate users of U.S . currency about the design
changes.
The new features were developed by the New Currency Design Task Force, comprised of
representatives from the Treasury Department, Federal Reserve Sys tem, U.S. Secret Service
and the Bureau of Engraving and Printing (BEP). A separate but complementary report by the
National Academy of Sciences, solicited by the BEP, was released in December 1993.
The announcement was held in the Cash Room of the U.S. Treasury Department.
Rubin and Greenspan were joined by U.S. Treasurer Mary Ellen Withrow, U.S. Secret Service
Director Eljay B. Bowron, Federal Reserve Board Governor Edward W. Kelley, Jr., and Bureau
of Engraving and Printing Director Larry Rolufs, and Treasury Under Secretary John D.
Hawke, Jr.
Remarks by Secretary Rubin and Chairman Greenspan and fact sheets on the currency
are available on Treasury's interactive fax system at (202) 622-2040.
-30-
YOUR MO,NEY MATTERS
Beginning with the $100 note in 1996. the United States is issuing currency with new security features.
These enhancements make U.S. currency easier to recognize as genuine and more secure
against advancing technologies which could be used for counterfeiting.
As the redesigned currency is phased in. the old notes will be retired by the Federal Reserve when they are returned.
All U.S. currency will continue to be honored at full face value.
There will be no recall or devaluation of any U.S. currency.
The following is a brief review of the features being incorporated into the redesign of U.S. currency.
Serial Numbers: The
serial number is a
(ombination of eleven
numbers and letters on the
front of the note In the
upper left and lower right.
An additional letter has
heen added so that no two
bank notes of the same
denommatlon have the
some l1-character serial
number.
Concentric Fine·Line Printing: This series of
fine lines is very difficult to reproduce with
color copiers, computer scanners and other
traditional printing technologies. It is used on
both sides, for the background behind both
Benjamin Franklin's portrait on the front
and Independence Hall on the reverse.
Portrait: Since most people focus on the
portrait to verify a note's authenticity, the
enlargement of the portrait of Benjamin
Franklin makes it easier to recognize, while
the added detail in the design makes it
harder to duplicate. The portrait is now oltcenter, providing room for the watermark
- and security thread. Also. thIS modification
reduces the wear and tear on the portrait
caused by folding bank notes in half.
AZ 01422096 A
Al
Federal Reserve Seal: _ _ _. Instead of designating
the Federal Reserve
ul:.trrct from which a
note was issued, the
nevI universal seal now
represents the ~ntire
Federal Reserve System.
A letter and number
near the serjal number
Identify the Issuing
THIS NOTE IS LEWU TENDER
FOR ALL. DEBTS, PUBLIC AND PRfl'ATE
Federal Reserve Bank.
Microprinting: Because they're
so small, mluoprinted words are
extremely hard to replicate
without blurring. Originally
located around the portrait of
1990 Series Notes. microprinting
has been modified for the
new deSign. Examples of microprinting, which can be read
under magnifICation, now can be
found in two places on the
front. "USA 100" is microprinted
wlthm the number in the lower
left hand corner, while "United
S:ates of America" appears on
Benjamin Frankltn's lapel.
Th'
lJ$.'
Security Thread: This polymer
thread is embedded vertically in
the paper and indicates each
bill's denomination. The words
on the thread can be seen only
when held up to a bright light
but cannot be duplicated by
photocopiers or computer
scanners. In the 1990 Series Notes,
the security thread appeared only
on the left side of a bank note.
Now. to improve authentication.
the thread IS in a unique position
in each denomination in which it
is used. As an additional
enhancement to currency
authentication, the new security
thread will glow red when held
under an ultraviolet light.
rJ/ (I,lor 't'productlon .. w.)~ authorized by the S(>(fl'1ary
of the Treasury. Color reprints are prohibited.
Color Shifting Ink: Color
shifting ink changes color
when viewed from different
angles. This ink is used to
print the number in the lower
right-hand corner on the front
of the currency. The ink looks
green when viewed straight
on. but changes to black
when the paper is held at an
angle.
Watermark: A watermark has
been added on the right front
side of the note depicting the
same historical figure as the
portrait. This watermark
portrait is only visible when held
up to a light source and does
not reproduce on (alar copiers
or computer scanners.
,' ".
.~.
(i)
-
.
USA
*
YOUR MONEY MATTERS
*US.*us.*
September 27, 1995
Introduction of the 1996 Series Currency
There will be no recall or devaluation of U.S. currency already in circulation. The
United States always honors its currency at full face value, no matter how old.
The new $100 notes, the first in the series, will be ready for circulation in early 1996. The new designs of
lower denominations will be introduced later, one at a time, at intervals of approximately six to twelve
months. As older notes reach the Federal Reserve from depository institutions, they will be replaced by the
newer notes.
This multi-year introduction of the new currency is necessary because of the time-intensive processes involved in engraving and producing the new designs. Sufficient inventory will be produced to ensure worldwide availability of the new series.
The Bureau of Engraving and Printing will provide machine manufacturers with new notes so they can
prepare vending machines, ATMs and other cash-handling equipment. While machine manufacturers will
have to make modifications to accommodate the new bills, they will have a broader field of machine-readable
features from which to choose to authenticate currency.
In conjunction with the Federal Reserve, the Treasury Department will conduct a worldwide public education
campaign with two primary objectives: communicate to the general public that there will be no recall or
devaluation; and provide information about authenticating the new series to the public as well as central
banks, depository financial institutions, other cash handlers and law enforcement agencies.
The New Design
The new currency will be the same size and color as the old notes, with the same historical figures and
natiollal symbols. "In God We Trust" and the legal tender wording also will remain on the new bills. This
contilluity will facilitate public education and universal recognition of the design as genuine U.S. currencyall important consideration since there will be dual circulation of the old and new currencies around the
world.
•
A larger, slightly off-center portrait is the most noticeable visual change. The larger portrait will
incorporate more detail, making it easier to recognize and more difficult to counterfeit. Moving the
portrait away from the center, the area of highest wear, will reduce wear on the portrait.
•
Shifting the portrait off center will provide room for a watermark, making it harder for counterfeiters to print. The watermark will depict the same historical figure as the portrait.
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE
N.W.
WASHINGTON.
DC
20220
•
Serial numbers on the new currency will differ slightly from old currency. The new serial numbers
will consist of two prefix letters. eight numerals. and a one-letter suffix. The first letter of the prefix will
designate the series (for example. Series 1996 will be designated by the letter A). The second letter of
the prefix will designate the Federal Reserve Bank to which the note was issued . I" lddition, a universal
Federal Reserve seal will be used, rather than individual seals for each Reserve Bank.
•
The use of a unique thread position for each denomination will guard against counterfeiting.
Among the other counterfeit deterrent features are color shifting ink. microprinting and concentric fine-line
printing:
•
Color shifting ink changes from green to black when viewed from different angles . This feature will be
used in the numeral in the lower right-hand comer.
•
The numeral in the lower left-hand comer will incorporate microprinting, a printing technique using
lettering that can be read with a low-powered magnifier. Extremely small print ("USA 100" on the $100
bill) appears as a thin line to the naked eye and yields a blurred image when copied. On the $100 bill,
similar microprinting will also be used on the lapel of Benjamin Franklin's coat.
•
The background of the Franklin portrait on the $100 note will incorporate the technique of concentric
fine-line printing, as will the background of the picture of Independence Hall on the reverse side. This
type of fine line printing is difficult to properly resolve on scanning equipment and to accurately replicate
by other means of printing.
Although all denominations of currency will have security features, the number of features will vary according to denomination . The $100 note will have a full package of features, while the $1 note will have fewer
and less sophisticated features. The basic appearance of all denominations will not vary.
History of the Redesign
Until the late 1920s, U .S. currency was redesigned frequently. There also were several types of notes in
circulation: United States Notes. National Bank Notes, and Silver Certificates. Since the introduction of the
Series 1928 Federal Reserve Notes, changes in the design. including the use of microprinting and a security
thread in Series 1990, have not affected the overall architecture of U.S. currency.
The counterfeit-deterrent features added in Series 1990 were the first step in responding to advances in
reprographic technologies. Although these features have proven effective and will be retained, additional
measures are necessary to protect against future threats posed by continued improvements in copy machines
and scanners. The new design, beginning with Series 1996, is the culmination of a five-year study aimed at
staying ahead of the counterfeiting threat and is part of a continuing process to protect U.S. currency.
Authority to change currency design and security features rests with the Secretary of the Treasury, but
Congress has been informed throughout the redesign process. The New Currency Design Task Force, comprised of representatives from the U.S. Treasury Department, Federal Reserve System, U.S. Secret Service
and the Bureau of Engraving and Printing (BEP) made its recommendations to the Advanced Currency
Deterrence Steering Committee which then made recommendations for the new design and security features
to the Secretary of the Treasury. A National Academy of Science (NAS) Committee on Counterfeit Deterrence Features conducted complementary but separate studies.
More than 120 security features were examined and tested, including those submitted in response to a BEP
solicitation. those used in other world currencies, and those suggested by the NAS . Evaluation criteria
included impact on security, proven reliability, ability to be manufa~t~red in large quantit~es: and durability
over time. Among the features evaluated were holograms, color shlftmg films, thread vanatlons, color
patterns, and machine-readable enhancements.
The strategy of the Design Task Force is to incorporate as many features as are justifiable. The new features
have proven successful in other countries as well as in test environments at BEP and the Federal Reserve.
The Design Task Force will continue to see and test new security features as technology further evolves.
Cost
The total cost of developing the new design was approximately $765,000. Included in this cost was funding
for the National Academy of Science Study - $265,376. Another $500,000 was spent to purchase test
quantities of features and carry out internal evaluations.
Current notes cost 3.7 cents each, and BEP produces about nine billion notes each year. Securityenhancements will increase the cost by a fraction of a cent. The Federal Reserve System is funding the development
and introduction of the new currency through earnings the Federal Reserve receives from interest on its
holdings of u.S. government securities and on fees charged to depository institutions for providing services
such as the processing and clearing of checks.
DEPARTMENT
•
OF
THE
TREASURY
TREASURY
{Itt)
NEW
S
. . . . . . . . . . . . . . .~~~~.$. . . . . . . . . . . . . .178~
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C.. 20220. (202) 622-2960
EMBARGOED UNTIL 11 AM. EDT
Remarks as Prepared for Delivery
September 27, 1995
REMARKS OF TREASURY SECRETARY ROBERT E. RUBIN
INTRODUcnON OF THE 1996 SERIES CURRENCY
DEPARTMENT OF THE TREASURY CASH ROOM
WASHINGTON, D.C.
The United States has the strongest economy in the world. We are the most
productive and competitive nation in the world. Our currency is a symbol of our
economic strength, and as such, it is respected, recognized and accepted around the
world. No other nation's currency has that degree of respect or acceptance. The steps
we are announcing this morning will protect that position by protecting the integrity and
security of our currency.
We are making our currency secure against the threat of advancing counterfeiting
technology, so it will continue to be respected throughout the world as a store of value
and the symbol of security it has been for so long. Today we do have a secure currency,
but we must stay ahead of the rush of technology. We're starting the process with the
$100 bill -- the most widely circulated bill in the world and the bill most often the focus
of global counterfeiting. There are more $100s circulating abroad than here in the
United States.
This is an example of government doing what it should, staying head of the curve.
The 1996 currency series is the result of nearly a decade of work by the professionals at
Secret Service, the Bureau of Engraving and Printing, the Treasury Department, the
Federal Reserve, and experts at the National Academy of Sciences. It has involved
consultations with central bankers throughout the world.
Looking beyond today's event, the Bureau of Engraving and Printing has set up a
research facility with the Johns Hopkins Applied Physics Laboratory -- the Securities
Technology Institute -- to asses emerging technology, evaluate features developed by
industry, and develop additional protections for currency and other security documents.
RR-594
(more)
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
2
Before we show you the changes that will take U.S. currency into a new century, I
want to recognize a few individuals for their contributions to this project. As I call your
name please stand, and please hold the applause until I've called the last name. The
enhanced security features would not have been possible without the work of very
talented designers, some of the world's most skilled artisans and craftsmen, and a topnotch technical team. I want to recognize designer Jack Ruther, Thomas Hipchen, who
is among the world's pre-eminent portrait engravers, photo-engraver William Baechler,
photo-etcher Marion Keeler, and Tom Ferguson, head of our technical team. To all,
thank you for your contribution.
What we are doing with the introduction of the 1996 series note is similar to what
other administrations have done throughout our history; and that is, we are improving
the security of the currency, maintaining its integrity and global reputation. The existing
currency will be accepted as long as it is in circulation. It is not, let me repeat that, not
being withdrawn. It is being modernized to stay ahead of printer, copier, scanner and
computer technology, and the possibilities that technology will create for counterfeiting.
The last time our currency underwent a truly substantial change was three
generations ago. A major reason then was to protect the security of our currency. In
those days, the Secret Service only had to worry about engravers trying to copy genuine
U.S. bills. But times have changed, and our currency must be adjusted.
Even though we are issuing new notes, I want to assure you that the security
features in the existing U.S. currency are effective.
However, the time to improve our currency is while we're ahead, and that's what
we're doing -- staying ahead of the curve. The changes in the 1996 series currency are
driven by the need to stay ahead of advancing technology. These upgrades were strongly
recommended by the law enforcement community and various scientific experts,
including the National Academy of Sciences. The combined effect of all the changes -some of which I will not discuss for security reasons -- is substantial.
While the security improvements are more visible than others added in recent
years, the 1996 Series bills retain the basic American look and feel of the bills we're all
used to carrying. The size is the same. The faces are the same. The monuments are
the same. It still says "In God We Trust." And the color is still the same. The
greenback will still be green. We thought about adding colors but decided not to
because multiple colors are not themselves a security feature. There is one area on the
bill -- the lower right corner -- where a special ink will shift color from green to black
when held at a particular angle.
3
Now, as to some of the more obvious security features:
The portrait of Benjamin Franklin is enlarged and shifted somewhat to the left.
The portrait has several security features within it to trip up counterfeiters. And there is
a watermark to the portrait's right duplicating the individual in the portrait -- Franklin
on the $100, Grant on the $50, and so on. There is a special security thread running
vertically in the paper at different locations depending upon the denomination. The
borders are simplified to make room for these features.
Ten days ago our presses at the Bureau of Engraving and Printing began
production with the new plates. They're running right now. We already have about
200,000 32-bill sheets of $100 bills awaiting final processing, and another 500,000 sheets
ready to have the second side printed. That's a start, and we'll keep building our
inventory until we have enough to satisfy both normal demand, and the curiosity factor.
We'll also be conducting a public education campaign about the new features, here and
abroad.
So to recap, the existing currency is secure, all old currency will remain legal
tender, whether you want to use it here or overseas, and there will be no recall of
currency now in circulation. We're introducing a new series of bills to stay ahead of the
curve on the counterfeiting technology of the future. And finally, the new bills and their
security features will be instantly identifiable as U.S. currency.
Thank you.
-30-
Remarks
Alan Greenspan
Chairman
Board uf Governors of the Federal Reserve System
Washington, D.C.
Announcement of
New Currency Design
u.S. Treasury
Washington, D.C.
September 27, 1995
RR-595
Thank you, very much, Mr. Secretary. I needn't tell you that the Federal Reserve
is quite pleased to be part of this event.
As many of you know, the Federal Reserve has the responsibility of putting
currency into circulation through the banking system.
These newly designed Notes will be handled in the same way as older currency.
Depository institutions obtain the currency they need for their customers from·
their district Federal Reserve Banks, and they dispose of surplus currency by depositing it in
their Reserve bank accounts.
In this process of receiving and paying out currency in response to the needs of
depository institutions, Federal Reserve Banks -- as they count incoming deposits -- also have
the opportunity to determine whether each Note is in good enough condition to be recirculated
and to verify each Note for genuineness.
Approximately two thirds of all Notes received by the Reserve Banks in incoming
deposits are fit enough to be recirculated.
The remaining third -- which are worn out or soiled -- are destroyed and replaced
by new Notes obtained from the Bureau of Engraving and Printing.
On average only nine Notes in every million are found to be counterfeit.
The introduction of the new currency will work this way:
The new $100 Notes -- the first in the series -- will be ready for circulation in
early 1996.
As banks deposit Notes in the regular course of business, the Federal Reserve
Banks will replace any older design Notes with Notes of the new design.
All existing Notes will continue to be legal tender.
The new designs of $50s, $20s, $ !Os and $5s will be introduced individually over
the next several years.
The 12 Federal Reserve Banks and their 25 branches around the country provide
currency to the depository institutions in their territories as the depository institutions need it.
-2-
Consequently, not all depository institutions and not all depository institution
customers will be seeing the new $100 Notes immediately.
I want to assure you that the United States has never recalled its currency and will
not do so now.
Old Notes will not be recalled or devalued.
The United States has always honored its currency at its full face value, no matter
how old.
Our currency is trusted and accepted by people throughout the world. Because
of this special status, the protection of our currency from counterfeiting has long been apriority .
... So, rest assured that the Department of the Treasury and the Federal Reserve
System remain firmly committed to that goal.
And now, Mr. Secretary, I believe we are ready to introduce the redesigned
currency.
,
DEPARTMENT
OF
THE
TREASURY
_ _ _ _ _ _ _ _ _ _~1789~ _ _ _ _ _ _ _ _ _•
OmCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
EMBARGOED UNTIL 11 AM. EDT
Remarks as Prepared for Delivery
Sept 27, 1996
TREASURER OF THE UNITED STATES MARY ELLEN WITHROW
INTRODUcnON OF 1996 SERIES CURRENCY
THE TREASURY DEPARTMENT CASH ROOM
WASHINGTON, D.C.
Good morning, and welcome to a very historic day here at the Treasury
Department. I never thought that in my career I'd follow Ben Franklin. We're both on
the money·· his picture, and my signature. I thought he had the better of the deal until
I found out you had to be dead to have your picture on the currency. Thanks, butTm
not going to (rade.
Before I go any further, I want to thank the National Portrait Gallery for lending
u.s the historic portrait of Benjamin Franklin, the one from which the engraving fot our
$100 bill was made_ I also want to acknowledge the important contribution of the
National Academy of Sciences which conducted a counterfieting study for the Treasury
Department.
In addition, I want to thank Federal Reserve Chairman Alan Greenspan for the
Federal Reserve's assistance. The Federal Reserve ultimately underwrote the costs of
the extensive research by the National Academy of Sciences and the testing that went
into development of the 1996 series of currency. The costs of developing, testing and
getting to the production stage of these bills totalled over three-quarters of a million
dollars.
Today we are doing what administrations through two centuries have done -acting to protect the stability and soundness of our financial system by further strengthing
the security of our currency. That's what Secretary Mellon and Treasurers H.T. Tate
and W.O. Wood were doing the last time a project of this scope was underaken protecting our currency.
RR·597
(more)
biographies,
call ollr 24-hour fax line at (202) 622-2(}1lj
For press re Ieases, sPeech eS , public schedules and ofT/cial
'l)'
,
.
2
The production of the 1996 series of bills has been a major undertaking,
conducted in cooperation with some of the top experts in the field of printing and
counterfieting deterrence. The staff at the Bureau of Engraving and Printing have been
working, I must say, under very heavy security and secrecy to protect the integrity of this
undertaking.
To give you an idea of the scope of this project, we have been ordering 1.2
million sheets of paper a week since the middle of August in anticipation of starting
production of $100 bills. We will be printing and st ockpiling these notes until well into
the new year to make certain there are sufficient supplies to meet the demand when they
are introduced. In 1929, when the 1928 design was introduced into circulation, the
announcement spoke of the curiousity factor -- the need to produce enough to meet the
extra demand caused because people wanted a bill just to see what it looks like.
Because of the world-wide acceptance of our currency, we will stockpile enough to meet
both the regular demands of commerce and the curiosity factor.
By way of comparison, there was $5 billion of U .S. currency in circulation back in
1929. Today, there is more than $380 billion in paper currency circulating, about twothirds of it overseas. Initially, we are printing the 1996 series $100 bills here at the
facility in Washington, and as time goes by and as we start introducing notes of lower
denominations, we will also begin printing the bills at our facility in Fort Worth, Texas.
In closing, I want to underscore a point : none of the money now in circulation
will be recalled as a result of the introduction of the new bills, none. Both the
currencies will be in circulation and both will be good.
Thank you.
-30-
YUUR MUNEY
u
~
...
•
MATTER~
us'"
Technical Background
Security Features
The Department of the Treasury's Bureau of Engraving and Printing (BEP) is responsible for
producing the new series currency. The Federal Reserve System will introduce the new currency
beginning with Series 1996 $100 notes. The new features - including enlarged off-center portrait,
watermark, concentric fine-line patterns, and color-shifting ink - were selected after extensive
testing and evaluation of approximately 120 numerous banknote security devices, many of which are
used successfully by other countries with lower production and circulation demands.
Other pre-existing security features (security thread and microprinting) are included in the new
notes and have changed only slightly.
Evaluation Criteria
Effectiveness
Counterfeit deterrent effectiveness was tested by reprographic
equipment manufacturers and government scientists. They also
considered the ease of public and cash handler recognition.
Durability
Durability was tested under the rigors of normal circulation.
Tests included crumpling, folding, laundering, and soaking in a
variety of solvents such as gasoline, acids, and laundry products.
Developmental
The total cost was $765,000: $265,376 to fund the National
Academy of Sciences studies, and approximately $500,000 to
purchase test quantities of features and carry out internal BEP
evaluations.
Production Costs
Research and production expenses will increase the cost of each
note by a fraction of a cent. The Federal Reserve is funding the
development and introduction of the new currency through
earnings the Federal Reserve receives from interest on its
holdings of U.S. government securities and on fees that are
charged to depository institutions for providing services such as
the processing and clearing of checks.
Appearance
The currency still looks very American. The size of the notes,
basic colors, historical figures and national symbols are not
changing. New features were evaluated for their compatibility
with the traditional design of United States currency.
RR-596
DEPARTMENT OF
THE
TREASURY
1500 PENNSYLVANIA AVENUE
N.W.
WASHINGTON.
DC
20220
The New Features
Watermark
A watennark is formed by varying paper density in a small area
durin.g the papermaking process. The image is visible as darker
and lIghter areas when held up to the light. The watennark does
not copy on color copiers. It depicts the same historical figure as
the engraved portrait. This similarity provides an easy way to
verify the note and makes it harder to use lower denomination
paper to print counterfeit higher denominations.
Color Shifting
Inks
These inks change color when viewed on the new note from
different angles. The ink appears black when viewed directly
and changes to green when the note is tilted.
Concentric FineLine Patterns
This type of line structure appears nonnal to the human eye but
is difficult for current scanning equipment to properly resolve.
Enlarged OffCenter Portrait
A larger portrait can incorporate more detail, making it easier to
recognize and more difficult to counterfeit. It also provides an
easy way for the public to distinguish the new design from the
old. The portrait is shifted off center to provide room for a
watermark and unique "lanes" for the security thread in each
denomination. The slight relocation also reduces wear on the
portrait by removing it from the center, which is frequently
folded.
Pre-Existing Security Features
Security Thread
A security thread is a thin thread or ribbon running through a
banknote substrate. It is a versatile feature, with many types
currently available, including microprinted, metallic, magnetic,
windowed and embedded. The thread will glow red when held
under an ultraviolet light. This characteristic makes it
impossible to copy with a color copier that uses reflected light to
generate an image. Using a unique thread position for each
denomination guards against certain counterfeit techniques, such
as bleaching ink off a lower denomination and using the paper to
"reprint" the bill as a higher value note. The unique position
also can be used by currency-accepting equipment to detennine
the value of the note, especially if the threads are machinedetectable. This security feature, which first appeared in Series
1990 currency, is included in the new design; however, its
position will shift according to the currency denomination for
the reasons mentioned previously.
Microprinting
This print appears as a thin line to the naked eye, but the
lettering can easily be read using a low-power magnifier. The
resolution of most current copiers is not sufficient to copy such
fine print. On the newly designed $100 bills, microprinting
appears in the lower left corner and on Benjamin Franklin's
lapel.
y(
llJ R MUN IV MATH R"
Studies
United States Currency Security Features
Security Thread
and Microprinting
Reactions to thi! Nt'H' Us. Currcncy: Analysis of Focus Group
Discllssiol1s, November 3, 1986. Market Facts Inc., funded by
the Federal Reserve Board.
To determine puhlic reaction to currency with security thread
and microprinting. Focus group participants were satisfied with
their currency but would accept the addition of a security thread
and microprinting for well communicated counterfeit deterrent
reasons.
Counterfeit Threat
Adl'llIli.·ed Reprogmplzic Systems: Coulller/eiting Threat
Assessf1lt!nt alld Deterrent Measures, June, 1986. National
Academy of Sciences, funded by the Bureau of Engraving and
Printing.
To assess counterfeit threats from specific advanced
reprographic equipment and recommend counterfeit deterrents.
Confim1ed threat and recommended action. For near term,
suggested combination of conventional deterrent devices,
including a security thread.
COUilteifeit DeterrCllt Feature.sjilr the NeXT-Generation
Currency Design. December. 1993. National Research Council,
funded hy the Department of the TreasulY
To analyze and recommend overt cGuntcrfeit detelTent features
that could be incorporated into a rede~ign of U.S. banknotes.
Beginning in 1996, U.S. paper currency will be redesigned to
incxporate anti-counlerf~iting fC;tlllrCS. Features recommended
included color shifting ink. a watern:ark. micfI)printing,
concentric fine lines and a securitY' thre;id.
RR-598
o EPA R T MEN T
0 F
THE T REA SUR y
1 500
"L N " 5 " I. ... t. ~ : II
A v F. N t J EN, 'N ,
WAS H I N G TON.
0 C
2
a2 2 a
Visual Deterants
Currency Features for Visually Impaired People, 1995. National
Research Council, funded by the Bureau of Engraving and
Printing.
To analyze and recommend overt counterfeit deterrence features
that could be incorporated into a redesign of U.S. banknotes for
use by the visually impaired. Recommended long range
systematic planning as a regular part of the mission within the
Department of the Treasury,
Design Change
Reactions
Reactions to U.S. Currency Redesign: Analysis of Focus Group
Discussion, September 21, 1983. Market Facts Inc., funded by
the Federal Reserve Board.
To obtain further data on public opinion regarding currency
design. Found public willing to accept design changes for
counterfeit protection.
Advanced Imaging
Technologies
The Impact of Emerging Imaging Technologies on Counterfeiting
of u.s. Currency, August 16, 1983. Batelle Columbus
Laboratory, funded by Federal Reserve Board.
To evaluate counterfeit threat from advanced copier and printer
~echnology. Found question not whether color copies will
present a threat but when.
u.s. Currency Acceptance
FinaL Report: Stage Two, Public Acceptance Acceptance of
Proposed Changes in U.S. Currency Project, February 23, 1981.
University of Michigan Graduate School of Business, Division
of Research, funded by the Federal Reserve Board.
To determine public opinion on currency redesign. Found the
public satisfied with currency design but supportive of a design
change to deter counterfeiting.
U
5
II.
*
*USA*USII.*
The History of Paper Money
In the early days of this nation, before and just after the American Revolution, Americans used
English, Spanish, and French currencies.
Colonial Notes
1690
Continental Currency
1775
Nation's First Bank
1781
The Dollar
1785
First U.S. Bank
1791
Monetary System
The Massachusetts Bay Colony issued the first paper money in
the colonies, which would later form the United States.
American colonists issued paper currency for the Continental
Congress to finance the Revolutionary War. The notes were
backed by the "anticipation" of tax revenues. Without solid
backing and easily counterfeited, the notes quickly became
devalued, giving rise to the phrase "not worth a Continental."
The Continental Congress chartered the Bank of North America
in Philadelphia as the nation's first "real" bank to give further
support to the Revolutionary War.
The Continental Congress adopted the dollar as the unit for
national currency. At that time, private bank note companies
printed a variety of notes.
After adoption of the Constitution in 1789, Congress chartered
the First Bank of the United States until 1811 and authorized it to
issue paper bank notes to eliminate confusion and simplify trade.
The bank served as the U.S. Treasury's fiscal agent, thus
performing the first central bank functions.
1792
The federal monetary system was established with the creation of
the U.S. Mint in Philadelphia. The first American coins were
struck in 1793.
Second U.S. Bank
The Second Bank of the United States was chartered for 20 years
until 1836.
1816
State Bank Notes
1836
Civil War
1861
With minimum regulation, a proliferation of 1,600 local statechartered, private banks issued paper money. State bank notes,
with over 30,000 varieties of color and design, were easily
counterfeited. That, along with bank failures, caused confusion
and circulation problems.
On the brink of bankruptcy and pressed to finance the Civil War,
Congress authorized the United States Treasury to issue paper
money for the first time in the form of non-interest bearing
Treasury Notes called Demand Notes.
RR-599
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE N.W.
WASHINGTON, DC 20220
Greenbacks
1862
The Design
1863
Gold Certificates
Demand Notes were replaced by United States Notes.
Commonly called "greenbacks," they were last issued in 1971.
The Secretary of the Treasury was empowered by Congress to
have notes engraved and printed, which was done by private
banknote companies. The notes were signed and affixed with
seals by six Treasury Department employees.
The design of U.S. currency incorporated a Treasury seal, the fine
line engraving necessary for the difficult-to-counterfeit intaglio
printing, intricate geometric lathe work patterns, and distinctive
cotton and linen paper with embedded red and blue fibers.
1865
Gold Certificates were issued by the Department of the Treasury
against gold coin and bullion deposits and were circulated until
1933.
Secret Service
The Department of the Treasury established the United States
Secret Service to control counterfeiting. At that time, counterfeits
amounted to one-third of all circulating currency.
1865
National Bank Notes
1866
Bureau of Engraving
and Printing
1877
Silver Certificates
1878
Federal Reserve Act
1913
National Bank Notes, backed by U.S. government securities,
became predominant. By this time 75 percent of bank deposits
were held by nationally-chartered banks. As State Bank Notes
were replaced, the value of currency stabilized for a time.
The Department of the Treasury's Bureau of Engraving and
Printing started printing all U.S. currency.
The Department of the Treasury was authorized to issue Silver
Certificates in exchange for silver dollars. The last issue was in
the Series of 1957.
After 1893 and 1907 financial panics, the Federal Reserve Act of
1913 was passed. It created the Federal Reserve System as the
nation's central bank to regulate the flow of money and credit for
economic stability and growth. The system was authorized to
issue Federal Reserve Notes, now the only U.S. currency
produced and 99 percent of all currency in circulation.
1929
Currency was reduced in size by 25 percent and standardized
with uniform portraits on the faces and emblems and monuments
on the back.
In God We Trust
Paper currency was first issued with "In God We Trust" in 1957.
The inscription appears on all currency Series 1963 and later.
Standardized Design
1957
Security Thread and
Microprinting
1990
Currency Redesign
1994
A security thread and microprinting were introduced to deter
counterfeiting by advanced copiers and printers. The features
first appeared in Series 1990 $100 and $50 notes. By Series
1993, the features appeared in all denominations except $1 notes.
The Secretary of the Treasury announced that U.S. currency
would be redesigned to incorporate a new series of counterfeit
deterrents. The new notes will be issued in 1996.
USA
...
USA_USA
Department of the Treasury
Bureau of Engraving and Printing:
The U.S. Government's Security Printer
•
Since October 1,1877, all United States currency has been printed by the Bureau of Engraving
and Printing, which started out as a six-person operation using steam powered presses in the
Department of Treasury's basement.
•
Now 1,800 Bureau employees occupy 25 acres of floor space in two Washington, D.C. buildings
flanking 14th Street. Currency and stamps are designed, engraved, and printed 24 hours a day
on 30 high-speed presses. An additional 700 Bureau employees are at the Western Currency
Facility in Fort Worth, Texas, where currency is printed 16 hours a day,S days a week on 10
high-speed presses.
•
In 1995, at a cost of 3.8 cents each, over 9 billion notes worth about $129 billion will be
produced for circulation by the Federal Reserve System. Ninety-five percent will replace unfit
notes and five percent will support economic growth. At anyone time, $200 million in notes
may be in production.
•
Notes currently produced are the $1 (45 percent of production time), $5 and $10 (12 percent
each), $20 (26 percent), $50 (2 percent), and $100 (3 percent).
•
The Bureau also prints White House invitations and some 500 engraved items, such as visa
counterfoils, naturalization documents, commissions, and certificates for almost 75 Federal
departments and agencies.
Tours
•
The Bureau of Engraving and Printing is one of the most popular tourist stops in Washingtonover 700,000 visit the printing facility each year.
•
Free 20-minute guided tours are offered Monday through Friday, 9 a.m. - 2 p.m., except for
Federal holidays and the week between Christmas and New Year's. Tours start on Raoul
Wallenberg Place (formerly 15th Street). During the summer months (June-August) afternoon
tours are given from 4 p.m. - 7:30 p.m.
•
Visitors can see press runs of 32-note currency sheets, examiners overseeing production to
ensure high-quality notes, the application of Federal Reserve and Treasury seals afld 4,000 note
"bricks" being readied for distribution to Federal Reserve Banks.
•
Beginning in the fall of 1995, tours of postage stamp product:()n also can be taken.
RR-600
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE
N.W.
WASHINGTON,
DC
20220
Visitors Center
•
At the Visitors Center, history, production, and counterfeit exhibits showcase interesting
information about United States currency.
•
Many unique items can be purchased at the sales counter. Items include uncut currency sheets
of 32, 16, or 4 $1 notes; $150 worth of shredded currency in plastic bags that are sold for $1 ;
engraved collectors' prints; souvenir cards; and Department of the Interior Duck Stamps.
Mail Order Sales
•
Persons wishing to receive notes on new Bureau products or to order by mail can write: Mail
Order Sales, Bureau of Engraving and Printing, 14th and C Streets, S.W., Room 513-M,
Washington, D.C. 20228. Credit card purchases of Bureau products are available by calling
(202) 874-3316, Monday through Friday, 8 a.m. - 3:30 p.m.
*us
•
US"
•
us".us".
The U.S. Secret Service and Counterfeiting
•
The United States issued its first national currency notes in 1861.
•
By the end of the Civil War, one third of all U.S. paper currency in circulation was counterfeit.
•
On July 5, 1865, the Secret Service was created within the U.S. Department of the Treasury with
the sole mission of suppressing counterfeit currency. In less than a decade, counterfeiting was
sharply reduced.
•
To stem counterfeiting, the Secret Service work:; in conjunction with local, state, federal and
foreign law enforcement agencies.
•
The Secret Service also maintains close working relationships with the Federal Reserve Banks
and domestic as well as international commercial banking institutions.
•
Thanks to such cooperation, approximately 90 percent of all known counterfeit U.S. currency is
seized before it reaches the public.
•
At present, the amount of counterfeit U.S. currency found in circulation represents approximately
1 1/100th of 1 % of the U.S. currency in circulation.
•
The most passed counterfeit denomination is the $20 note, followed, respectively, by the $100
note, the $10 note, the $50 note, the $5 note, and the $1 note. The $100 note is the most common
foreign-produced counterfeit note.
•
To aid in counterfeit investigations, agents use the Service's modern, well-equipped Forensic
Services Laboratory that includes:
A complete library of specimen notes dating back to 1865;
The largest watermark file in existence;
The largest ink library in existence;
.
.
. .
Equipment to examine and analyze notes counterfeIted by vanous types of pnntmg
methods as well as by office machine copiers.
•
In 1994, the disposition of prosecuted arrests showed a 99.5 percent conviction rate.
For further information, please contact:
United States Secret Service
Office of Government Liaison and Public Affairs
1800 G Street, N.W., Room 805
Washington, D.C. 20223
Phone 202/435-5708
RR-601
DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE N.W.
WASHINGTON, DC 20220
*us",*us"'*
us",*us",*
The Federal Reserve:
Central Bank of the United States
Federal Reserve System
The Federal Reserve System was created by the Federal Reserve
Act, which was passed by Congress in 1913, in order to provide a
safer and more flexible banking and monetary system. For
approximately 100 years before the creation of the Federal
Reserve, periodic financial panics had led to failures of a large
number of banks, with associated business bankruptcies and
general economic contractions. Following the studies of the
National Monetary Commission, established by Congress a year
after the particularly severe panic of 1907, several proposals were
put forward for the creation of an institution designed to counter
such financial disruptions. Following considerable debate, the
Federal Reserve System was established. Its original purposes
were to give the country an elastic currency, provide facilities for
discounting commercial credits, and improve the supervision of
the banking system.
Ecomomic Stability
and Growth
From the inception of the Federal Reserve System, it was clear
that these original purposes were aspects of broader national
economic and financial objectives. Over the years, stability and
growth of the economy, a high level of employment, stability in
the purchasing power of the dollar, and a reasonable balance in
transactions with foreign countries have come to be recognized as
primary objectives of governmental economic policy.
Currency Circulation
An important function of the Federal Reserve System is to ensure
that the economy has enough currency and coin to meet the
public's demand. Currency and coin are put into or retired from
circulation by the Feucral Reserve Banks, which use depository
institutions as the channel of distribution. When banks and other
depository institutions need to replenish their supply of currency
and coin-for example, when the public's need for cash increases
around holiday shopping periods-----depository institutions order
the cash from the Federal Reserve Bank or Branch in their area,
and the face value of that cash is charged to their accounts at the
Federal Reserve. When the public's need for currency and coin
declines, depository institutions return excess cash to a Federal
Reserve Bank, which in turn credits their accounts.
RR-602
DEPARTMENT OF THE
TREASURY
1500 PENNSYLVANIA AVENUE
N.W.
WASHINGTON,
DC
20220
Unfit and Counterfeit
Notes
The Federal Reserve Banks and the u.s. Department of the Treasury
share responsibility for maintaining the physical quality of United
States paper currency in circulation. Each day, millions of dollars of
deposit~ to Reserve Banks by depository institutions are carefully
scrutinized. The Reserve Banks are responsible for receiving,
verifying, authenticating, and storing currency and shipping it as
needed. Currency in good condition is stored for later distribution.
Worn or mutilated notes are removed from circulation and
destroyed. Counterfeit notes are forwarded to the U.S. Secret
Service, an agency of the Treasury Department.
Federal Reserve
Notes
Virtually all currency in circulation is in the form of Federal Reserve
notes, which are printed by the Bureau of Engraving and Printing of
the U.S. Treasury. The Reserve Banks are currently authorized to
issue notes in denominations of $1, $2, $5, $10, $20, $50, and $100.
Coins are produced by the Treasury's United States Mint.
Cash Transfers
Currency and coin are used primarily for small transactions. In the
aggregate, such transactions probably account for only a small
proportion of the value of all transfers of funds.
DEPARTMENT
OF
THE
TREASURY
NEWS
TREASURY
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
t .
j
.
-
__
,_.
C
t.
ADV 2: 15 P.M. EDT
September 27, 1995
STATEMENT OF TREASURY SECRETARY ROBERT E. RUBIN
The Board of Directors of the Pension Benefit Guaranty Corp. today expressed its
serious concern that legislation in Congress could weaken the private pension system in
the United States and expose the PBGC guaranty program to unnecessary risk. The
Board has asked Congress to reject the proposal that would allow companies to remove
from pension funds -- and use for any corporate purpose -- money that has received the
special preferential tax treatment earmarked for pension benefits.
Current law provides incentives for employers to accumulate pension fund assets
for their workers' retirement. However, if companies remove plan assets instead of using
them to benefit retired workers, the special tax advantages provided to promote pension
saving are recaptured through a very substantial tax penalty. The proposal of the House
Ways and Means Committee imposes no penalty for withdrawing assets from pension
plans well into next year, and imposes only a minimal penalty on later withdrawals
thrm.. gh the year 2000. The Board is also concerned that permitting unfettered corporate
withdrawals of pension assets would increase the risk to the PBGC, as the insurer of
pension benefits. Allowing these withdrawals raises the possibility that assets left in a
pension plan might be insufficient in the coming years to protect the security of retired
workers, and thus could increase the potential exposure of the taxpayers. Further, t4e
proposal runs counter to action taken on a bipartisan basis by Congress last year to
tighten pension fund security in underfunded plans by preventing manipulation of the
funding rules.
This is a time when it is critical for us as a nation to increase our savings,
especially savings for retirement, and to enhance, not diminish, public confidence in our
private pension system. I urge Congress to reject the pension reversion proposal.
-30-
RR-604
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
UBLIC DEBT NEWS
Department of the Treasury • Btireau of the Public Debt • Washington, DC 20239
FOR IMMEDIATE RELEASE
September 27, 1995
.
•
I
/
J_
GONTACT: Office of Financing
2 02 - 2 19 - 3 3 5 0
U i
RESULTS OF TREASURY'S AUCTION OF 5-YEAR NOTES
Tenders for $11,500 million of 5-year notes, Series Q-2000,
to be issued October 2, 1995 and to mature September 30, 2000
were accepted tOday (CUSIP: 912827V41).
The interest rate on the notes will be 6 1/8%. All
competitive tenders at yields lower than 6.141% were accepted in
full.
Tenders at 6.141% were allotted 67%. All noncompetitive and
successful competitive bidders were allotted securities at the yield
of 6.141%, with an equivalent price of 99.932. The median yield
was 6.120%; that is, 50% of the amount of accepted competitive bids
were tendered at or below that yield. The low yield was 6.080%;
that is, 5% of the amount of accepted competitive bids were
tendered at or below that yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$27,033,699
Accepted
$11,500,349
The $11,500 million of accepted tenders includes $272
million of noncompetitive tenders and $11,228 million of
competitive tenders from the public.
In addition,
$50 million of tenders was awarded at the
high yield to Federal Reserve Banks as agents for foreign and
international monetary authorities. An additional $450 million
of tenders was also accepted at the high yield from Federal
Reserve Banks for their own account in exchange for maturing
securities.
RR-605
DEPARTMENT
OF
TREASURY:
~
THE
TREASURY
NEWS
I
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C .• 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
September 27, 1995
Contact:
Jon Murchinson
(202) 622-2960
Statement by Secretary Rubin on CDFI Funding
I am distressed by the news today that the Senate has voted not to fund the
Community Development Financial Institutions Fund, a small, innovative partnership between
the federal government and the private sector. CDFI, which was passed last year with
overwhelming bipartisan support, would help build local economies, create new jobs, grow
small businesses and restore hope to neighborhoods across the country.
This year the President asked for the sum of $144 million for the CDFI Fund. When
leveraged with private sector funding, the $144 million could create nearly $1.5 billion in
credit for the neediest American communities.
I urge Congress to reconsider. The Administration strongly believes CDFI is an
important tool for urban and rural development.
-30-
RR-606
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT
OF
THE
TREASURY
NEWS
TREASURY
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA A~~UE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
September 28, 1995
Contact: Calvin Mitchell
(202) 622-2920
MEDIA ADVISORY
Treasury Secretary Robert E. Rubin and Democratic members of the Senate
Finance Committee will meet with working families who receive the Earned Income Tax
Credit (EITC) today, Thursday, at 2:15 p.m. in Room S207 of the U.S. Capitol.
Republican members of the Senate Finance Committee have proposed a $40
billion tax increase on working families making less than $28,500 a year who receive the
EITe.
The EITC was started 20 years ago during the Ford Administration, and it was
expanded during the administrations of Reagan, Bush and Clinton. President Reagan
called the EITC, "the best anti-poverty, the best pro-family, the best job creation
measure to come out of Congress."
-30-
RR-607
D
biooraphies, call our 24-hour fax line at (202) 622-2040
ror
press re Ieases, speech es, Pu bl'IC SChedules and ofFicial
'JJ'~-
PUBLIC DEBT NEWS
Department of the Treasury • Burea'1 Qfthe Public Debt • Washington, DC 20239
'.
'
FOR IMMEDIATE RELEASE
September 29, 1995
CONTACT:
Peter Hollenbach
(202) 219-3302
or
L. Richard Keyser
(202) 755-7510
TREASURY AUTHORlZES HUD CALL OF
FHA INSURANCE FUND DEBENTURES
The Departments of Treasury and Housing and Urban Development armounced today the call of all
Federal Housing Administration (FHA) insurance fund debentures, outstanding as of September 30, 1995.
Debentures that have been registered on the books of the Federal Reserve Bank of Philadelphia as of
September 30, 1995, are considered, "outstanding." The date of the call for the redemption of
approximately $67 million in debentures is January 1, 1996, with the semi-armual interest due January
1, paid along with the debenture principal.
Debenture owners of record as of September 30, 1995 will be notified by mail of the call and given
instructions for submission. Those owners who cannot locate the debentures should contact the Federal
Reserve Bank of Philadelphia (215) 574-6684 for assistance.
No transfers or denominational exchanges in debentures covered by this call will be made on or after
October 1, 1995, nor will any special redemption purchases be processed. This does not affect the right
of the holder to sell or assign the debentures.
The Federal Reserve Bank of Philadelphia has been designated to process the redemptions and to pay final
interest on the called debentures. To ensure timely payment of principal and interest on the debentures,
they should be received by December 1, 1995, at:
The Federal Reserve Bank of Philadelphia
Securities Division
P.O. Box 90
Philadelphia, PA 19105-0090
000
PA--195
(RR-608)
NEWS
TREASURY
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C .• 20220. (202) 622-2960
ADV 8 A.M. EDT
Remarks as prepared for delivery
September 29, 1995
After the Storm
Latin American Finance: A Progress Report
Remarks by
Lawrence H. Summers
Deputy Secretary of the Treasury
Conference on the Americas
September 29, 1995
New York City
Introduction
It has been an eventful year in the Americas, and finance is at the center of what
has occurred. On the eve of President Zedillo's visit to the United States, a mere 10
months after Mexico's great financial upheaval, I think it is a good time to take stock. I
want to reflect on how Mexico's problems unfolded, how the United States responded,
and how Mexico and Latin America will go forward in the months and years ahead.
Last December, Mexico nearly became the first major country to default on
government bond debt since World War II. Mexico's devaluation of its currency caused
a drop in confidence that threatened to set the country back a generation. A decade of
steady progress from Mexico's economic reforms was nearly erased in a month.
In ways many people still fail to appreciate, Mexico's problem was America's
problem. Mexico is our third largest export market. Hundreds of thousands of
American jobs depend on Mexican trade. The security of our borders and fiscal
condition of our cities and states, which depend on stemming illegal immigration, rested
on the outcome of the crisis.
RR-609
(more)
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
2
Mexico's shock caused tremors in markets across the globe. From Montevideo to
Manila, from Bangkok to Buenos Aires, investors lost confidence and markets lost value.
In China, India, and Russia -- the key markets of today and tomorrow -- ideas about
foreign investment and privatization came under attack.
It was in this atmosphere of crisis, and in our own country where many leaders
are urging America to pull back from its interests and commitments abroad, that
President Clinton lead us to action. He assembled the financial support needed for
Mexico to deal with its liquidity crisis. The United States committed up to $20 billion
from the Exchange Stabilization Fund to support Mexican reform, and the IMF pledged
up to $17.8 billion. President Clinton saw what his critics did not; Mexico's problem
must not become America's problem. We had to act.
The President's action was courageous and politically difficult. The critics said
our support would go down the drain. They charged that it would never work to help
Mexico turn around. They claimed that Mexico's financial crisis discredited open trade,
as a way of helping nations gain the path to market-based development, while also
helping ourselves.
Looking back, we can now affirm that the critics were wrong. Our support is safe,
and is serving its purpose. Mexico has made economic progress. The Mexican people
have acted courageously in accepting short-term privation. NAFfA is protecting our
exports. Mexico's revival was in America's interest. And our actions have been
rewarded with results.
A Secure Investment
What are those results?
First, America's support for Mexico is secure. Mexico will not use all of the
resources that were made available to it. The question is not whether Mexico will repay
the United States, but when the repayment will begin.
Our support agreements contained strict disclosure and transparency
requirements, and Treasury is fully satisfied with the way Mexico is meeting them. Some
$4.6 billion has already flowed through the oil-export facility that was established to back
our support. The interest rate premiums that we charged mean that American taxpayers
will actually earn nearly $1.5 billion more than they would have, had we not mounted
this effort.
3
Mexican Recovery
Second, Mexico is recovering. To be sure, the compression of an 8 percent of
GNP current account deficit to nearly zero in a matter of weeks, the necessary fiscal
contraction, and the financial strains associated with a spike in interest rates have all
taken their toll.
Nonetheless, economic growth should resume soon -- at a rate of 2.2 percent as
early as next year, according to the August Consensus Economic Forecast. The reforms
directed at increasing Mexico's economic flexibility over the past seven years have done
what they were supposed to, to the point where Mexican exports were able to rise by a
full 32 percent over the first seven months of the year, compared to the same period of
1994.
Mexico's strengthening performance is restoring market confidence. Foreign
direct investment has been resilient, and should be above $4 billion for the year,
according to the consensus forecast. The Mexican bolsa is now trading at its pre-crisis
levels of last December, in peso terms, and has risen some 60 percent since March
troughs. Mexico's reserves are now up to $15 billion from $6 billion at the start of the
year. Interest rates have dropped from 83 percent to 34 percent. Financial strains that
squeezed the banking sector are working their way through the economy.
Perhaps most impressive, Mexico's governments and its agencies have been able
to access the market freely -- issuing some $3 billion in paper at increasingly improved
terms, even without having to provide the kind of oil-proceeds backing that Mexico has
provided the United States. Further moves are expected soon.
A Strong U.S.-Mexico Relationship
Our support coupled with Mexico's actions have produced a third result over the
past 10 months. They have safeguarded a strong U.S.-Mexico relationship.
On a range of issues that are important to us, the foundation for more
cooperation has been protected. Increases in illegal immigration along our border have
been limited. The NADBank established under NAFTA has begun investing in
environmental projects along the border, working to solve pollution problems, sewage
runoff, and other difficulties faced in Texas, New Mexico, California, and Arizona. Our
two countries have intensified efforts on other vital issues, such as counter-narcotics, law
enforcement, and money laundering.
4
A "Lost Decade" Avoided
Finally, our actions have accomplished a fourth crucial objective. We have
protected what is among the most remarkable economic and social developments in the
world today: the embrace by so many emerging market countries of market-based
economic policies.
Why is that so important? It is important, because emerging market economies
have become our fastest growing export markets. These economies now support some 10
million U.S. jobs. These markets will support the most vibrant sectors of our economy
for decades to come. And it is important, because some several billion human beings -in Asia, Latin America, Eastern Europe and Africa -- have now mounted the rapid
escalator to development and prosperity.
Of all emerging market countries, Mexico is by far our largest trading partner.
Worldwide, Mexico has been the model for all the reforms that we have sought to export
for decades, and that have put so many developing countries on the right path. As
anyone sitting at a financial screen could have seen last January, had Mexico failed, the
consequences would have been felt in markets worldwide.
History has already offered us one unfortunate example of what could have
happened if a financial crisis had been allowed to drag Mexico down. That example was
1982. Then, Mexico's debt difficulties spawned economic calamity, first in Mexico, then
a few months later in Brazil, and finally, throughout Latin America. The spillover led to
what has been called a "lost decade" -- nearly 10 years of protectionist policies, negative
growth, financial instability, and political and social unrest in much of this hemisphere.
Thanks to President Clinton's leadership, 1995 has not been like 1982. The wageprice spiral which sent Mexican prices soaring by 110 percent from 1982 into 1983 has
been replaced by an inflation rate that has declined down to 2 percent a month in the
face of rigorous fiscal and monetary policies. Mexico's current account deficit is
adjusting more quickly than it did 13 years ago. Strong trade surpluses suggest that such
adjustment will continue. This time, Mexico regained access to international capital
markets in just 7 months. In 1982, Mexico was shut out of world markets for a full 7
years.
Unlike Mexico's retreat from economic reform thirteen years ago, this time the
Mexicans have chosen to accelerate their adoption of reforms. They have forged ahead
with privatization, investment liberalization, tax and regulatory reform, and fiscal
adjustment. By doing that, they have again become a model for all of Latin America.
That is what was at stake in Mexico. That is why we can breathe easier ten months
later, now that the worst of the crisis seems to have passed.
5
United States Losses Averted
In sum, Mexico is on its way to recovery. We are reaping the benefits of NAFfA,
and of our decision to provide support.
Some critics assert that NAFfA caused Mexico's crisis. Not only is that wrong,
but it ignores the fact that NAFfA is protecting the United States from the effects of
Mexico's difficulties. At the depths of Mexico's difficulties over the first half of this year,
American exports to Mexico were still 2.5 percent higher than they were over the first
half of 1993, before NAFfA was enacted, even accounting for inflation. The U.S. share
of Mexico's imports is higher than it was before NAFfA's adoption. NAFfA has
protected U.S. exporters from the 15 percent tariff hikes which Mexico has slapped on
others in the wake of the crisis. In fact, Mexico has continued to lower tariffs on our
goods in accordance with NAFfA's provisions.
Most important, NAFfA has been a source for what the Mexican government and
people have needed most over the past few months: confidence.
What would the United States have lost, had NAFfA not been there, and had the
President not acted, and had the patterns of the "lost decade" been repeated?
From 1982 to 1990, Latin American growth stagnated at an average 1.5 percent
annual rate, with a sharp 4 percent fall over 1982 and 1983. Had today's crisis been
even half that bad, Latin America would have lost a full $150 billion in output over the
next three years -- a loss that would have quickly translated into lost opportunities for
U.S. businesses. Instead, most expectations are for Latin America to enjoy 2.5 percent
growth this year, with a recovery to 3.5 percent by next year and annual rates as high as
5 percent for years after.
For the United States, the lost decade meant a decline in U.S. exports to Latin
America and the Caribbean of some 38.9 percent in 1982 and 1983. If export losses
were only half as bad this time, we would have lost some $17.5 billion in exports over
this year alone. That would have wiped out a full 250,000 jobs over just the first year of
the crisis.
The conclusion is clear. Both the United States and Mexico would have been far
worse off, had NAFfA not been there to protect us.
6
Agenda for the Future
To say that Mexico is on the path to recovery is not to say that Mexico's or Latin
America's work is over. As Domingo Cavallo has noted, perhaps the most important
result of Mexico's difficulties, going forward, is that they served as a wake up call for the
steps still left to be taken, before stable growth in Latin America is assured.
Higher Savings Rate
I'd like to say a few words about the things that should be high on Mexico and
Latin America's agenda for achieving stable growth. First, Mexico, and indeed most
Latin American countries must raise their savings rates. In Mexico's case, savings rates
before the crisis were only about 14 percent of GDP. Put simply, that meant that
Mexico was not accumulating the savings at home necessary for it to invest and lay a
foundation for growth, without relying to a dangerous degree on capital from abroad.
That is why Mexico's current account deficit swelled to risky levels.
The only way to avoid that tradeoff between investment and shaky finances is for
savings rates to rise. Getting the rate of inflation down consistently and setting a stable
macroeconomic environment that keeps real interest rates positive are the key. People
will not put their money away unless they are confident that their savings will be worth
more down the road. Efficient banking systems, pension reform, and improved tax
systems can also convince more Latin Americans to salt away more of their earnings.
Trade and Integration
The second set of steps on the agenda involve trade and integration. Markets
enjoyed by all countries in our hemisphere must grow larger, not smaller. Inter-regional
trade quadrupled from 1984 to 1994. It can go far far higher. The enormous growth in
our own trade with Mexico, and in commerce with emerging markets generally, shows
that the United States' best hope for the future lies in trade with the southern
hemisphere. An integrated, prosperous trading region stretching from Canada to Chile -as we set out to achieve at the Summit of the Americas -- can ensure that all Latin
American countries have maximum opportunities to invest, to sell, and to grow.
Economic reform in Latin America is in America's interest, because it creates our
most important future markets. But reform can only remain attractive if the club of
trade and prosperity remain open. That is why it is so critically important that NAFfA
continue to take in new members when they are ready to join. Chile's accession should
occur as soon as possible, so that the free trade project we have begun up north draws in
the southern cone.
7
Enhancing the Global Financial System
Third, global finance has to work better, if crises are to be prevented, and stable
growth is to be secure. A place to start is with transparency. Internationally accepted
disclosure standards for countries are more important than any government loan.
Disclosure can ensure that both market and private monitors have the information
needed to keep economies under scrutiny, recognize dangers early, and signal the need
for action before crises erupt.
President Clinton and the other G-7 leaders agreed to push ahead with this
agenda at the Halifax Summit last June. The IMF is now working at a rapid clip to
draw-up standardized measures of what national governments and agencies should
release, so that we can detect problems before they occur.
Even with transparency and surveillance, there will still be crises. We would like
countries to follow textbook policies as they move from closed to open markets, and
from authoritarian, public structures to private ones. But the path will not be straight
from darkness to light. There will be bumps in the road.
Moreover, even with the best of economic policies, liquidity crises can always
erupt. Just as when depositors spark a run on an otherwise sound bank, injecting
liquidity, through emergency support, is the right response.
The speed and size of today's global capital markets means that the need for
resources to halt such crises is greater than ever. On the other hand, the United States
cannot, and will not serve as a lender of last resort. That is why the G-I0 countries have
agreed to seek the establishment of a new emergency financing mechanism, based on the
IMF's General Agreement to Borrow.
There is, of course, an enormous moral hazard problem. One does not want to
fail to plan. On the other hand, one does not want to plan to fail. That problem has to
be taken very seriously in the design of whatever mechanisms are put in place.
Nonetheless, I am not ready to believe that we should abolish fire departments,
on the grounds that they encourage people to smoke in bed. I think that there is a
balance that has to be struck.
Conclusion
In many ways, Mexico's crisis was the first 21st century crisis. It was global in
scope. It was rapid in evolution. It was propagated by information technology. And its
resolution was dependent on American leadership.
The United States, Mexico, and the global financial community seem to have
successfully weathered this crisis. Because what President Clinton did was right, we have
avoided far greater difficulties. The right lessons are being learned. That is good news
for the billions of humans beings whose lives will improve as their countries enter the
global market. And that is good news for the millions of Americans whose prosperity
will increasingly depend on global trade, commerce, and investment.
Thank you.
-30-
8
Monthly Report
by the
Secretary of the Treasury
Pursuant to the
Mexican Debt Disclosure Act
of 1995
............_,: iI"
"
~.t
Septernber30,1995
Contents
I.
Overview
II.
Current Condition of Mexico's Economy
a.
b.
c.
d.
e.
f.
g.
h.
Monetary Policy
Fiscal Policy
Structural Reform and Privatization
Information Disclosure
Economic Adjustment
Banking Sector Developments
Financial Market Trends
International Reserves
III.
Disbursements, Swaps, Guarantees and Compensation
to the U.S. Treasury
22
IV.
Mexico's Financial Transactions
2S
v.
Status of the Oil Facility
27
page
Appendix
Tab:
Key Trends in Mexico's Economy and Financial Markets
a.
b.
c.
d.
e.
f.
g.
h.
1.
J.
Monetary Policy
Fiscal Policy
Tesobono Repayment and Debt Profile
Inflation and Interest Rates
Banking System: FOBAPROA Repayment
Bond Markets
Currency and Stock Markets
International Reserves
Real Exchange Rate and Trade Balance
Real Economy
1
3
Treasury Secretary's Repon to Congress
September 1995
I.
Overview
During 1995, Mexico has put in place the rigorous adjustment policies
necessary to address the financial crisis that threatened its economic
stability and prospects for sustained growth. In providing assistance to
Mexico under the February 21 Agreements, the U.S. government acted to
protect vital U.S. interests -- American exports and jobs, the security of our
common border, and the stability of other emerging market economies. In
a major address delivered in September, President Zedillo appropriately
emphasized the importance of holding the line on the stabilization
program, and pushing forward with growth-oriented economic reforms.
The recession that has accompanied the financial crisis has been deep, as
GDP dropped 0.6% from a year earlier in the first quarter and 10.5% in the
second. However, the Mexican authorities have succeeded in bringing
about a rapid economic adjustment, averting a sovereign default, and
regaining access to private capital flows. The government's firm and
credible stabilization policies, the increased efficiency of the economy
following seven years of reforms, and the liquidity provided under the U.S.led support program are all hastening the eventual recovery. The pieces
are now in place for Mexico to avoid a repetition of the protracted
recession that followed the 1982 financial crisis.
Structural reform continues to improve long-term prospects for the
economy, including sweeping changes announced this month in the
telecommunications sector. Adjustment policies have contributed to
financial stability, as both fiscal and monetary indicators have been
favorable: the government budget is in surplus and monetary aggregates
are under control. With good export performance, sound financial policies,
renewed access to the private capital markets, and continued structural
reforms, Mexico should be able to return to sustained economic growth by
next year.
By the end of September, default concerns associated with the
government's tesobono obligations had been eliminated, with $26.6 billion
of the $29 billion in tesobonos outstanding at the end of 1994 retired.
Meanwhile, international reserves had risen $9.0 billion from the beginning
of 1995, to $15.1 billion as of September 15. Inflation continued to decline,
to 1.7% per month in August, the lowest monthly increase this year, from a
high of 8% in April. Interest rates on short-term government securities
1
Treasury Secretary's Repon to Congress
September 1995
declined as well, from an 83% annual rate in March to 34% in lateSeptember.
Financial markets have responded favorably to the stabilization program.
Peso trading has been generally stable with volatility far below levels
during the height of the crisis. Mexico's stock market retraced some gains
near the end of the month, but remains at pre-crisis levels and about 60%
above its low in late February. The stock market is still down about 45%
in dollar terms from its mid-December level due to the peso's depreciation.
While monetary and fiscal policies are expected to appear less restrictive
over the last two quarters of 1995, this should be no cause for alarm. The
money stock can be expected to expand in response to the normal
Christmas surge in consumer buying. At the same time, the budget surplus
will likely diminish, on a year-to-year basis, as the one-year anniversary of
the crisis approaches.
Mexico's banking sector, facing a high level of nonperforming loans,
remains strained. Five sizable banks, representing 28% of banking system
assets, have been recapitalized. The government's measures to mitigate the
immediate impact of the problem, to improve regulation and supervision,
and to encourage capital inflows have lent important support. An increase
in investment inflows has enabled commercial banks to repay the dollars
borrowed from FOBAPROA, the central bank's insurance fund; and one of
six banks that had accessed PROCAPTE, the government's capital assistance
program, has now left the program. Further, by arranging targeted relief
for small borrowers, the government has reduced the number of nonperforming loans in the banking system.
Outstanding U.S. disbursements under the February 21 agreements total
$12.5 billion, all of which are backed by the full faith and credit of the
Mexican government. Interest rates on currency swaps between the United
States and Mexico are sufficient to cover the risks that the United States
bears. To date, the United States has received more than $200 million in
interest payments from Mexico. In the unlikely event of default, all of
Mexico's obligations to the United States are backed by proceeds from
Mexico's crude oil, oil products, and petrochemical product exports.
Payments for these exports flow through a special account at the Federal
Reserve Bank of New York. As of September 18, $4.6 billion had passed
through this account since March 8, 1995.
2
Treasury Secretary's Repon to Congress
September 1995
II.
Current Condition of Mexico's Economy
a.
Monetary Policy
Mexico has maintained its tight monetary policy
The Bank of Mexico has continued to conduct monetary policy to contain
inflation, stabilize the peso, and encourage capital inflows. The Bank's
chief policy instrument is its control over the growth rate of the monetary
base. It achieves this control through limits on the growth of net domestic
credit (defined as the monetary base less international reserves).
Control of domestic credit is key
Any increase in net domestic credit of the Bank of Mexico must be
associated with either an increase in the money supply or a decrease in net
foreign assets (international reserves) of the Bank. A limit (ceiling) on
increases in net domestic credit therefore implies a ceiling on the growth of
the money supply that can occur without a corresponding rise in
international reserves.
•
Net domestic credit has fallen by NP72 billion since the beginning of
the year through September 15. More recently, in the four weeks
ending September 15, net domestic credit fell by NPll billion.
During this period, money stock remained roughly constant, while
reserves increased sharply.
Within the overall change in net domestic credit, credit growth to financial
intermediaries has remained low.
•
Peso credits to financial intermediaries such as commercial banks
and development banks, including programs to support the banking
system, rose by NP4 billion in the four weeks ending September 15.
Since the beginning of the year, the total decline has been NP15
billion.
The Bank of Mexico has continued to maintain strict control over the money
supply
•
The monetary base (essentially bills and coins in circulation) as of
September 15 was 20% below its level at the end of 1994, even
3
Treasury Secretary's Report to Congress
September 1995
though the price level was 37.5% higher than at the end of 1994.
More recently, in the four weeks ending September 15, the
monetary base fell by 5%.
•
Ml (the monetary base plus checking deposits) shows a roughly
similar pattern. On a seasonally adjusted basis, Ml increased by
1.7% from December 1994 through August.
Monetary and credit aggregates Ctl1I be hard to interpret
Restricting the growth rate of the money supply through control of net
domestic credit is central to controlling inflation and meeting other
objectives of monetary policy. Nonetheless, changes in the money supply
can be difficult to interpret in terms of their implication for the stance of
monetary policy.
Important seasonal factors influence money demand. For example, the
Mexican public sharply increases its demand for cash balances during the
Christmas season; such an increase is expected in the coming months.
Reasonable accomodation in this seasonal demand would be consistent
with a continuing decline in inflation.
Market indicators suggest that monetary poliq remains tight
Given the difficulties in interpreting monetary aggregates, it is useful to
look at market indicators of the stance of monetary policy.
Real interest rates remain high, implying tight monetary conditions.
•
The real interest rate (the nominal rate adjusted for inflation) on
28-day cetes in August was about 15 %. This rate, while still
extremely high, is somewhat lower than the roughly 20% rates
observed in June and July. Over time, as inflationary expectations
decline and confidence continues to grow, a further drop in real
interest rates can be expected.
This tight policy is continuing to restrain inflation.
•
Inflation fell from 2% per month in July to 1.7% in August, after a
peak of 8% in April. In the first half of September, prices rose by
1.25% compared to the last half of August.
4
Treasury Secretary's Report to Congress
September 1995
With declining inflation, nominal rates have also come down.
•
The interest rate on 28-day cetes declined to 34.0% in the
September 26 auction, after peaking at 82.7% in March.
The exchange rate has remained roughly stable. H money supply were to
sharply outpace money demand, attempts by the public to trade the
additional pesos for dollars would likely place strong downward pressure
on the exchange rate.
•
Some nominal depreciation of the peso over time would not
necessarily imply an insufficiently tight monetary policy, reflecting
differential rates of inflation between Mexico and its principal
trading partners.
II.
b.
Mexico~
Fiscal Policy
fiscal surplus for the first half of 1995 was larger than planned
Mexico continues to maintain tight fiscal policy. Higher world oil prices
have boosted Pemex revenues and tax payments, offsetting declines in
corporate income and excise taxes. The April 1 increase in the value-added
tax (VAT) has partially offset the effect on VAT receipts of the decline in
domestic consumption. Real VAT revenues increased by 10.3% in the
second quarter, compared to a year earlier. Early in the year, the
government cut discretionary spending in response to higher interest costs.
The net result of these policies has been a budget surplus of about 2.1 % of
GOP for the first half of 1995, compared with a surplus of about 0.5% of
GOP for the first half of 1994. Table 1 shows Mexico's budget through the
first two quarters of 1995.
The quarterly budget surplus may be /ower in both the third and fourth
quarters than in the first two quarters
•
Higher oil prices generated higher oil revenues in the first two
quarters of this year, compared with the same period in 1994; this
gap may not be maintained if oil prices do not continue to rise.
5
Treasury Secretary's Report to Congress
September 1995
•
In addition, the seasonal pattern of discretionary spending can be
expected to boost spending in the last two quarters.
As President Zedillo stated in his recent state-of-the-nation (Informe)
address, even with government spending expected to rise in the second half
of 1995, Mexico appears to be on track to meet its fiscal targets for the end
of 1995.
II.
c.
Structural Reform and Privatization
Marlcet-oriented reforms continue
Mexico's adjustment program includes a major privatization effort to
increase productivity, attract foreign investment, raise government revenue
and kindle private sector initiative.
•
The Mexican Congress amended the country's constitution this year
to allow private and foreign investment in railroads and satellite
communications. It has also passed legislation to open
telecommunications services and natural gas distribution and storage
to private investment and foreign competition.
•
The Mexican government is also drafting plans to privatize
petrochemical plants, airports, and electricity generation plants, and
to sell concessions to operate additional toll roads.
•
In July and August, the government announced the winning bidders
for several port facilities. Most of the winning bids were from joint
ventures between Mexican and foreign-owned companies, including
American companies.
6
~
Part A: Federal Government Budget
NP Millions (Nominal)
_ ____
Revenues
% of GOP (3)
Taxes
Income Tax
Value Added Tax
Excise Taxes (Oil, Alcohol, Tobacco, etc)
Import Duties
Other (Auto Registration, Tax Penalties, Export)
Non-Tax Income
Fees
Oil
Other
Other (Central Bank Profits, Privatization)
Expenditures
% of GOP (3)
Discretionary
% of GOP (3)
Operating Expenses
Salaries
Other
Public Investment
Transfers
Education
Other
Non-Discretionary
'l'o of GOP (3)
-.lutlays From Past Year's Obligations
Revenue Sharing
Interest Payments
Internal
External
Transfers To State Enterprises, Errors & Omissions
~~!
1994
•.4 Real Change From Previoul Year (1)
1995
1994
1995
1!tgtr
gt!
1st half
1st half 95 1It g!r I I ~nd atr 95 1st half
2nd atr
2nd atr
-1.9%
52,895
55,714
51,093
103,988~, 126.852
71.138
-8.4% ~:, .c ".3%
to
;;",. ,
17 .9%
16.1 %
16.0%
18.7%
16.9% ~
17.""
r.
18,251
10,055
6,703
2,819
2,722
6,513
1,449
4,383
SO,794
17.2%
28,522
9.6%
8,883
6,S08
2,375
2,523
17,116
6,742
10,374
22,272
7.5%
3,963
9,918
8,391
4,528
3,863
3,017
19,151
9,065
7,048
3,233
2.183
6,n9
710
2,924
53,530
, 16.8%
-'34.50451!
10.8%
10,500
7.127
3,373
4,591
19,454
6,611
12,844
18,985
5.9%
571
12,019
6,395
3,894
2,S01
(1,875)
18,581
9,955
6,208
2,742
2,999
10,403
1,222
3,604
52,ln
150%
27,066
7.8%
9,041
6,891
2,lSO
813
17,212
7,491
9,721
25,111
7.2%
2,602
11,137
11,372
3,448
7,924
851
20.432
13.347
4,574
2,460
1.621
22,210
1,355
5,140
66,825
17.5%
38,046
10.0%
10,508
7.531
2,9n
2,954
24,584
8,419
16,165
28,n9
7.5%
838
14.324
13.617
7,170
6.448
(73)
37,402 !
19, 12O
13,751 ~.
6,052 f\.
4,905
f
f
L
ti;.,'
39.013
23.302
10.782
5,202
",620
-11.4% !.~'. -20.1%
-13.9%
10.3"
-19.4% iJ'; -51.04%
-15.4%
-043,0"
-4.2% r~/ ........%
t ,:
r'
-16.1%
-2.0%
-36.9%
-30.9%
-24.2%
t" .
32,613
13,292 r
2,159 ~
2.5n
8.7....
7,307 ~.
104,324/; .119.002
16,3%
17.0% ~'
63,067 ' 65.112
103% f~
8.9%:
19 383;~. 19549
13:635
14:422
5,748
5.127
7,114
3,767
36,570 ,
41.796
13,353 :
15.910.
23,218
25,886
41,257 '.
53.890
6.7% ;
7.4%
3,0440.
4,534
25.461
21,937
24,989
14,786 ;
8,422 i,
10,618
6,364 :
14,372
1,142 L
t,
f'~
r.
f,';'
r··
f'
m
38.9%
1045,""
-26.6% "
42.9'Itt
-28.5% ,.' 31.7'"
-10.6% ~ .. -6,5%
·17.'"
r;
97.4%
-4.0%
-3.7%
-8.2%
·'7....
-16.9%
-11.5%,
-7.9% J
-21.3% ~/,
-72.0% :
-12.5%
-3.3% '.
-25,0%
-20.9%
-33.9'Itt
-51.8%
-5.3%
-4.6%
-1.9%;~
t,
13.5%
-18.9%
-14.9%
-28.2%
-57.4%
-8.1 %
-4.1%
-10.3%
5.1 %
e.9%
-10.7%
17.9%;~ 59.5'"
-33.8% , '. 37.9"
78.4%
93.1 %
-75.5% [. ' -97.1%
-39.0%
-6.6%
360%
1.4%
81.7%
-45.3%
''''''(
-42.9%'
-2.3%~·
t
~
~
.....
::
ttl
ts.
n
C~
(I)
[
;
~
.......
(1) Based on a year-over-year increase in the CPI of 15% for the first quarter, 34% second quarter, and 24% for the first half.
(2) Beginning in 1995, Mexico City budget no longer included.
(3) Second quarter nominal GOP estimated by adjusting the 105% decline in real GOP between the second quarters of 1994 and 1995 by the 34% increase in consumer prices
during this period. This will, of course, differ from estimates using the GOP deflator, which has not yet been reported.
t:=I
C
Q.
IJQ
ttl
-
~~
[j
~ ~
.....
~
~ii
~...
~
~
~~
C
~
it:
Part B: State~ned Enterprises
NP Millions (Nominal}
Under Direct ContiOiof ihe GOM. Balance
Peme)(. Balance
Revenues
E)(penditures
Interest
Non-interest
CFE, Balance
Revenues
E)(penditures
Interest
Non-interest
Other Enterprises, Balance
Revenues
E)(penditures
Interest
Non-interest
Subsidies From the Federal Government
Under Indirect Control of GOM, Balance (2)
00
1994
_____ 1~t g!! __
811
(285)
5.857
6,142
935
5.207
(357)
4.127
4.484
207
4.277
(1,975)
13.440
15.415
15
15.400
3.428
4.450
2nd
1996
1994
1996
%
1,t half 96
1st half
1!\ gt~ _ 2nd ror
'1,622
6.195
1,663
7,858
5.433 ~.
1,905 .
2,190
2.947
(1,229)
1.718
8,588
14,445 :
12,676
20.901
8.225
6,398
12,540 :
9,729
19.183
9,454
1,033
3.599
1.968 :
6.190
2.591
10,572 .
5,365
6.130
6,864
12.994
389
1,271
564.
(707)
32 i
5,862
7.010
12.872
9.067 '
",940
4,591
7.717
9,035 ~
12.308
",551
823
183
390
716
1.539
3.768
8,645 !
10.769
7.001
",368
(720)
(1,583)
392
(1.315)
(2.035)
28,114 :
15.639
1",674
30.0430
1".791
29.696 .
16.359
16.106
1",281
32.0465
76
f'''
104
249
325
104,1B.l
29.592
16.283
15,858
32.1"1
1,652
2.697
5.080
7.611
",91"
(5,3047)
(897)
109
253
362
9!r
Real Change From Previous Year (1)
1st ror fa 2nd atr 96 1st half
;
\
88.3%:
-28.3%
10.7%
37.8% r
234.8% ;
87.9%
2.4%: .
-4.2%
16.4%
23.1%
1530%
-1.1%
23.6%
-10.9%
245.8%
-23.4%
6.3%
27.0%
192.8%
20.1"
14.2%
9.6%
217.3%
0.2%
1.2%
-7.7%
J.4O.7%
-80%
-31.6%
-2".5%
-15.5%
109.1%
-16.3%
122.8%
-12.9%
-120%
1510%
-12.6%
20.5%
1994
Part C: Public Sector Balances
1994
1995
1996
____________1.!I..9!r
2nd gtr
lsLgtr
2nd atr
1st half
1st half
NP Millions (,-,N",o,-,m""in'7a~I'!;;1--;-----c..--.
Federal Government Budget Balance
(916)
(562)
2.686
4,386
(1.479)
7,012
% of GOP (3)
-0 3%
~.2·4
08%
1.2%
-0.2%
1.0%
Federal Government Primary Balance
7.475
5,833
14.058
18,003
13,308 i
32.061
"I 'fGDP (3)
".7%
2.2%
....."
2.5%
1.8%
4.1%
Public Sector Non-Financial Balance
4.345
(1,287)
8,990
6,302
3,058 i
15,293
~.4%
2.6%
1.7%
0.5%
2.1%
% of GOP (3)
1 5%
Public Sector Primary Balance
11.386
12,152
25.769
25.462
23,537
51,231
3.9%
3.8%
7.4%
6.7%
3.8%
7.0%
% of GOP (3)
Part 0: Public Sector Aggregates
NP Millions LNom",in""a",I:L1_ __
Non-Interest Spending
% of GOP
Interest Payments
% of GOP
Peme)( Revenues + Peme)( T a)(es Paid to GOM
% of GOP
Non-Petroleum Revenues
% of GOP
Non-Petroleum Revenues. E)(cluding Value-Added Tax
% of GOP
1994
l~tr
62.870
21.3%
9,600
32%
19.506
66%
55.823
189%
45.768
15.5%
1995
at. Real Change From Previous Year (1)
1994
1996
2nd ror
1st gtr
2nd ror
1st half
1st half
9611t g!r II 2nd ror 961st half
69,467
63.385'
77,749
132.337
141.1304
-12.3%·
~.162
~.142
21.8%
18.3%
20.4%
21.5%:
19."%
f
7,648
15.932
17.111
17,248'
33.Q.43
44.4% ,:.
0.678
0.541
2.4%
4.6%
4.5%
2.8% '
".5%
22,118
30.227
38,543
41,624'
68.770
304.8%
0.305
0.329
6.9%
8.7%
10.1%
6.8%
9."%
56,093
58,759
61,578
111,916' 120.337
~.178
~.135
-8.4% ."
17.6%
16.9%
16.1%
18.2%
16.5%
"7,028
48.804
48,231
92.796
97.035
~.072
-0.232
-0.159
14.7%
14.1%
12.6%
15.1%
13.3'"
~
~
~
.
....=
....
=
c:
~
f')
0
~
Q..
~~
1j
c;,-
~ e;,
......
~
~~
v,~
....~
::tJ
i::t
is
Q
:lI
~....
Treasury Secretary's Report to Congress
September 1995
Government awards first license to provide long-distance services
In early September, the Ministry of Communications and Transportation
released draft procedures for foreign and private investors who wish to
offer long-distance telephone services when Telefono de Mexico's (Telmex)
monopoly ends on January 1, 1997.
•
The government will grant licenses for a minimum of 4-5 years to
companies whose capital is at least 51 %-owned by Mexican
nationals.
•
Applicants for licenses will be required to describe the services they
plan to offer, their investment plans and pricing schemes. Once
companies submit an application, the Ministry will have up to four
months to decide whether to grant the license application.
•
The Mexican Congress will review the draft procedures when it
considers amendments to the telecommunications law later in
September.
•
Communications Ministry officials expect up to eight joint ventures
to be offering telecommunications services by 1997. Officials also
expect new entrants to invest about $8 billion during the next two
years.
On September 6, a few days after the procedures were drafted, the
Ministry awarded the first concession to Avantel, a joint venture between
the Mexican bank Banamex and the U.S. telecommunications firm Mel.
•
Following the award of the license, Avantel officials announced the
award of a $380 million construction contract to a joint venture with
Canada's Northern Telecom and a previously-formed joint venture
with Mexican construction firm ICA and U.S. engineering firm Fluor
Daniel, for the construction and installation of a fiber optic network.
•
MCI officials announced plans to invest $600 million in this joint
venture over the next three years.
9
Treasury Secretary's Report to Congress
September 1995
Government announces plans to privatize warehouse firm
Transportation Ministry officials also announced that they will sell 70
warehouses owned by the government-owned warehouse company,
Almacenes Nacional de Deposito, by the end of the year.
World Bank approves technical assistance loan
On August 29, the World Bank approved a $30 million loan to support
technical assistance in developing regulations and preparing firms for
privatization in sectors including telecommunications, energy, and
transportation.
II.
d.
Information Disclosure
Merica has significantly increased the breadth and frequency of its reporting
Public disclosure of financial data by the Mexican government and the
Bank of Mexico has increased further over the last several months.
•
Mexico has improved the coverage and timing of its reporting on
both real and financial indicators, including data on output,
inflation, international reserves, balance of payments, fiscal and
monetary aggregates, and public debt.
•
The Mexican government and the Bank of Mexico now provide a
wide set of historical and current data on the Internet.
II.
e.
Economic Adjustment
Mexico's economic adjustment program has so far succeeded in its
objectives of. containing the inflationary impact of the devaluation and
improving the country's external position. However, in the first half of the
year, as an inevitable consequence of the financial crisis, the economy
experienced a deep recession, with rising unemployment and losses in real
income. While uncertainties are large, many private analysts believe that
the economy may be positioned to begin recovery.
10
Treasury Secretary's Report to Congress
September 1995
Injlation is moderating
Following a burst of inflation in the first four months, the monthly inflation
rate has fallen sharply.
•
In August, consumer prices rose 1.7%, the lowest monthly increase
this year. In the first two weeks of September, seasonal factors
contributed to a slight uptick in inflation, as prices rose 1.25% over
that time.
Mexico~
trade balance continues to be positive
Weak domestic demand and real exchange rate depreciation have
continued to lead to a large merchandise trade surplus. Mexico registered
a merchandise trade surplus of $760 million in August (based on
preliminary information), up from $583 million in July, compared with a
deficit of more than $1.7 billion in August 1994.
•
Imports remain lower than levels of a year ago, as a result of the
increase in peso costs and a weaker domestic economy; the only
exception to this pattern is intermediate goods used by the export
sector. On a monthly basis, seasonally-adjusted imports rose in
August compared to July by about 18% (using preliminary data), on
strong growth in intermediate goods used by exporting industries,
after falling 4% in July and 1% in June.
•
Exports remain strong, particularly in the manufacturing and
petroleum sectors. Seasonally-adjusted exports rose in August by
10%, after holding roughly constant in July and June.
This merchandise trade surplus has greatly reduced Mexico's external
financing needs, and strong export growth has partially offset weakness in
internal demand (see Table 1 below).
Mexico~
economy has conJTacted
The economic adjustment necessitated by the large drop in capital inflows
has been an important factor leading to a deep recession, notwithstanding
the tempering effects of the U.S.-led multilateral support package.
Mexico's GDP fell 10.5% in the second quarter of the year, resulting in a
5.8% contraction in output in the first half of the year, on a year-over-year
11
Treasury Secretary's Report to Congress
September 1995
basis. Even after accounting for seasonal factors, the recession in the first
half of the year has turned out to be deeper than many forecasters had
predicted. On a seasonally adjusted quarter-to-quarter basis, GOP in the
second quarter fell roughly 7.2% after falling 3.6% in the first quarter.
All components of GOP declined during the first half of the year, except
exports of goods and services. The strong performance of the export sector
cushioned the sharp fall-off in domestic demand.
Table 2. Mexico's Real GDP
(year-over-year change, percent)
1994
0195
0295
Private Consumption
3.6
-8.7
-15.9
Government
Consumption
2.6
-1.9
-5.6
Investment
8.1
-18.4
-35.2
Exports
7.4
29.4
26.7
Imports
13.0
-20.2
-30.4
4.9
-3.7
-13.8
3.5
-0.6
-10.5
Domestic Demand
Gross Domestic Product
The effect of the recession has been uneven on the industrial sector, as
areas sensitive to external demand, such as some utilities and
manufacturing industries, have done relatively well.
•
On a yearly basis, manufacturing productio~ after rising 0.4% in the
first quarter, fell by 11% in the second quarter. The decline in
output between the first half of 1994 and the first half of 1995 was
5.5%, slightly less than the decline in GDP.
The non-tradeable goods sector, in contrast, has been particularly hard-hit
by weak domestic demand, tight credit, and the transfer of resources to the
export sector.
12
Treasury Secretary's Report to Congress
September 1995
•
Retail sales have shown some signs of bottoming out: on a
seasonally-adjusted basis they edged up in June, after falling by a
cumulative 40% from December through May.
With the decline in output, unemployment has grown significantly, though
wage flexibility and the informal sector have prevented even larger drops in
employment
•
The open unemployment rate, a narrow measure of joblessness
based on surveys of major urban areas, rose from 6.6% in June to
7.3% in July, up from 3.2% in December 1994.
•
This July increase is roughly in line with the usual seasonal surge
associated with students entering the labor force; on a seasonallyadjusted basis the unemployment rate has been roughly flat since
May.
Mexico~
economy may be bottoming out
While it is difficult to predict the timing of Mexico's economic recovery,
some signs indicate that economic activity has begun to bottom out.
•
Recent data on retail sales and unemployment contain hints of a
tum-around, though the picture is far from clear.
•
For the last several months, the Bank of Mexico's survey of
manufacturers has suggested an imminent pick-up in activity, though
the June decline in industrial production suggests that this
information should be interpreted with caution.
II.
f.
Banking Sector Developments
The government is putting programs in place that are having an important
stabilizing effect on the banking sector. The sector nevertheless remains
under stress, and will continue to require careful monitoring over the
months ahead.
13
Treasury Secretory's Report to Congress
September 1995
Mexico~ banking qstem
continues to be recapitalized
To restore the solvency of the banking system, the Mexican government
has provided incentives for shareholders to inject additional capital.
•
Through FOBAPROA, the central bank's insurance fund, the
government has purchased loans from banks in proportion to new
capital injected by shareholders. FOBAPROA has acquired the loans
in exchange for non-amortizing, long-term government bonds.
•
As of the end of June, Serlin and Probursa, Mexico's third and tenth
largest banks, had been recapitalized.
•
In September, Internacional, Atlantico, and Promex, Mexico's sixth,
seventh and eighth largest banks, were recapitalized.
These five banks represent 28% of banking system assets.
NonperJonning loans continue to inaeose
Increases in nonperforming loans continue to place a significant strain on
the banking system. On June 30, 1995, the regulatory authorities reported
a nonperforming loan level of 11.9% of total loans. Although new figures
will not be released until after the end of the third quarter, it is estimated
that nonperforming loans now amount to about 13% of the total.
On September 21, the National Banking and Securities Commission
announced the intervention of Banco Interstatal, citing inadequate capital
levels, insufficient loan loss provisions, and poor credit management. It is
the second bank to be intervened by the government this year. Banco
Interstatal has total assets of NP1.3 billion.
Other govemmenl initiatives are also helping to stabilize the banks
Earlier this year the Mexican authorities responded to the prospect of a
banking crisis with a number of initiatives to aid the banks by providing:
liquidity (FOBAPROA), a temporary source of capital (PROCAPTE), and a
program to restructure loans (UDI).
•
Banks have since fully repaid their dollar debt to
had peaked at $3.8 billion in early April.
14
FOBAPROA,
which
Treasury Secretary's Report to Congress
September 1995
•
In March, six banks joined PROCAPTE and issued approximately $1
billion in subordinated debt to meet minimum capital requirements.
•
After completing recapitalization, Banca Serlin withdrew from
PROCAPTE in June; Intemacional has announced plans to withdraw
no later than November.
After a slow start, the pace of restructuring loans under the UDI program is
picking up. The program has been extended until January 31, 1996.
•
The outstanding balance of loans restructured rose from NP3.5
billion on July 7 to NP15.9 billion on August 11 and NP24.7 billion
on September 1. The balance, however, remains far below the
program's NP156 billion ceiling.
•
Loans restructured under the banks' own programs, which include
variations of the UDI instrument, totaled NP39 billion as of August
11 and NP40.4 billion as of September 1.
In August, the Mexican government announced a new program targeted at
consumer, credit card, small business, and mortgage borrowers. The
program is intended to encourage additional loan restructuring, avoid the
development of a non-payment culture, and provide a transitional period
for borrowers to restructure in UDIS.
•
The program became operational on September 11, when borrowers
were expected to enter into written agreements with the banks to
restructure their debt. Early reports indicate a high level of interest
in the program.
II.
g.
Financial Market Trends
Financial markets have responded positively to Mexico's adjustment program.
•
The peso is currently about 20% above its March 9 low in nominal
terms. For the month, the peso depreciated by about 2% to
September 28 on a nominal basis. Because inflation in Mexico
remains above that of its major trading partners, a stable real rate
for the peso would suggest some nominal depreciation by the end of
the year.
15
T1Y!QSUry Sec1Y!taIy's Report to Congress
September 1995
•
Volatility remains much lower than earlier this year. Buying and
selling spreads on the peso, a measure of volatility, have
substantially diminished from those at the height of the crisis, from
as high as 4-5% in January to 0.1% and, briefly, to 0.3% toward the
end of the month.
Mexico's stock market retraced some recent gains toward the end of the
month, but remains at pre-crisis levels and about 60% above its low in late
February. The stock market remains down about 45% in dollar terms from
its mid-December level.
Interest rates have declined steadily since the height of the crisis as the
exchange rate has stabilized, inflation has declined, and the threat of
default on tesobonos has been eliminated.
•
Mexico's benchmark 28-day Treasury bill (cetes) rate has decreased
from a high of 83% in late March to 34% at the September 26
auction.
Improvements in the assessment of Mexican risk are also evident in the
market for Mexico's remaining dollar-denominated Treasury bills
(tesobonos ).
•
Secondary-market tesobono rates have dipped as low as 8.0% from
highs above 30% in late March and early April.
The stronger market for U.S.-backed Brady bonds also reflects a return of
confidence in Mexico, and demonstrates that the risk of contagion in other
Latin markets has diminished.
•
Mexican Brady Bond interest rate spreads over U.S. Treasuries,
adjusted to remove the effect of U.S. collateral, have declined from
1937 basis points in mid-March to 865 basis points on September 21,
a decline of 10.72 percentage points on these long-term instruments.
•
Yields of the stripped portion of Brady bonds in Argentina and
Brazil have also recovered from declines earlier this year that had
been sparked by the Mexican crisis; yields have fallen 11.50 and 8.33
percentage points for comparable bonds from Argentina and Brazil,
respectively.
16
Treasury Secretary's Report to Congress
September 1995
Mexico solidified its standing in the international capiJal11UlTkets over the lost
quarter
The Mexican government and agencies have raised over $3 billion in the
private capital markets thus far in 1995, matching public-sector bond
issuances in 1993 (see Table 2 below).
•
To date, the government excluding agencies has issued $2.1 billion
equivalent, in successive issues of $1 billion and ¥100 billion.
•
Secondary-market yields on the UMS' Eurodollar issue declined from
an initial 11.18% to 9.975% on September 22.
•
This month, Bancomext announced a 2-year ¥20 billion bond with a
3% coupon. Nafinsa's 3-year Swiss Franc Eurobond is scheduled to
close September 29.
•
The Mexican government has announced it is considering new issues
in the global markets by the end of the year.
17
Treasury Secretllly's Report to Congress
September 1995
TABLE 3. Mexican public-sector bond issuances
Issuer
Type
Date
Amount
(USS M)
Tenor
Interest
rate
Bancomext
Euro PRN1
May 23
$30.0
1 year
UBOR
+5.80%
EuroPRN
May 31
$75.0
1 year
UBOR +
5.44%
Nafmsa
EuroPRN
144A
June 23
$3()().0
Eurobond
Sept 18 (to
be issued
Oct 2)
¥2O billion
(approx.
$200)
2 years
EuroPRN
May 4
$1103
1 year
2 years
LIBOR +
5.51%
3% coupon
LmOR +
3.50%
EuroFRN
May 4
$73.7
7 months
LmOR +
2.25%
EuroFRN
May 9
$50.0
1 year
LmOR +
6.00%
EuroFRN
May 15
$28.0
1 year
UBOR +
8.00%
EuroFRN
May 24
$10.0
1 year
UBOR +
5.60%
United
Mexican
States
Eurobond
August 17
DM250
(approx.
$170.0)
3 years
10%
coupon
Eurobond
September
29
SwFr 150
(approx.
$122.0)
3 years
7.50%
coupon
EuroFRN
144A
July 20
$1000.0
2 years
UBOR +
5375%
Euro MTN 2
August 17
¥100
billion
(approx.
$1,100.0)
3 years
5% coupon
1. F10atIDg rate note.
2. Medium-term note.
Treasury Secretary's Report to Congress
September 1995
Mexican corporations and private financial institutions have re-entered the
international capital markets more slowly.
•
Several large corporations with export-oriented businesses have
successfully placed short-term dollar-denominated commercial
paper. Other institutions have found success in placing structured
transactions in which investors have recourse to assets or cashflows
denominated in foreign curreGcies, including dollars.
II.
h.
International Reserves
In the third quarter through September 15, international reserve
accumulation of $5.06 billion has been mostly attributable to inflows from
capital markets, following a reserve gain of $3.93 billion in the first half of
the year that came largely from U.S. and IMP support in excess of
immediate needs to retire tesobonos.
•
July and August saw the successful redemption of the last major
bulge of tesobonos for the year, with peso and dollar redemptions
totalling $6.8 billion for these months. By mid-September, less than
$3 billion remained outstanding in tesobonos, with more recent
redemptions requiring very modest reserves to retire.
•
Further disbursements in the third quarter from the U.S. and the
IMP amounted to $6.1 billion. Despite the use of $4.7 billion in
reserves for tesobono redemptions, reserve accumulation amounted
to 83% of these disbursements, reflecting funds provided by the
market.
Foreign exchange inflows to the Bank of Mexico come through two
principal channels.
•
As a result of banks' continued improvement in access to
international financial markets, they repaid all outstanding dollar
loans to the central bank insurance fund by mid-September.
•
The Government of Mexico's renewed access to market fmance
facilitated a rise in reserves of roughly $2 billion through sovereign
debt issuances as of mid-September.
19
Treasury Secretary's Report to Congress
September 1995
•
Continued government issuances in international capital markets
would be expected to promote reserve accumulation through the
remainder of the year.
Aggregate resetVe levels reach more solid ground
Mexico's international reserves are still below the levels recorded in the
three years prior to the financial crisis at the close of 1994. Nonetheless,
current reserves are approaching levels considered adequate when
measured by a number of criteria.
•
Reserves are equal to more than three months of merchandise
imports.
•
By the end of August, reserves exceeded short-term public-sector
external debt (including tesobonos) by a decisive margin, having
edged above this level in July for the first time in 1995. This was
accomplished by accumulating reserves while shifting the
composition of Mexican debt from short to medium and long-term
instruments; short-term eXternal public-sector debt is roughly onequarter the amount it was at the start of the year.
•
Moreover, under Mexico's current floating exchange rate regime,
monetary policy drives the value of the peso; this results in far fewer
demands on official reserves, now that the tesobonos have been
mostly retired.
20
Treasury Secretary's Report to Congress
September 1995
TABLE 4. Mexico's international reserves (US$ billions)
1990 December
10.2
1991 December
17.5
1992 December
18.6
1993 December
24.5
1994 December
6.1
1995 January
3.48
February
8.96
March
6.85
April
8.71
May
10.44
June
10.06
July
13.87
August
15.07
September 15
15.14
21
Treasury Secretary's Repon to Congress
September 1995
III.
Disbursements, Swaps, Guarantees and Compensation to the U.S.
Treasury
As of September 30, 1995, $13.5 billion in U.S. funds has been disbursed to
Mexico under the support program. Of this amount, a total of $12.5 billion
remains outstanding - $2 billion in short-term swaps, and $10.5 billion in
medium-term swaps. To date, the United States has not extended any
securities guarantees to Mexico under the support program.
•
Under the swap agreements, Mexico purchases dollars and credits a
corresponding amount of pesos to U.S. accounts at the Bank of
Mexico. On the maturity date, Mexico repurchases the pesos by
paying back the dollars.
•
Both the short-term and medium-term swap facilities require Mexico
to maintain the dollar value of peso credits to the United States,
adjusting the amount of pesos on a quarterly basis, in accordance
with changes in the dollar-peso exchange rate.
•
As provided in the Agreements, Mexico must pay interest to the
U.S. government on the swap balances outstanding. The interest
charges applied to short-term swaps are designed to cover the cost
of funds to the Treasury and thus are set at the inception of the
swap based on the Treasury Bill rate. Interest rates are reset at the
time of any roll-overs of existing short-term swaps.
•
Interest charges applied to the medium-term swaps are designed to
cover the cost of funds to the Treasury plus a premium for the
credit risk associated with the extension of such funds, as assessed at
the time of each disbursement. Paragraph 6 (d) of the MediumTerm Exchange Stabilization Agreement (the Medium-Term
Agreement) provides that interest rates on swaps with Mexico are
"intended to be at least sufficient to cover the current U.S.
Government credit risk cost for Mexico."
22
Treasury Secretary's Report to Congress
September 1995
•
For each disbursement under the Medium-Term Agreement, the
premium is the greater of (1) a rate determined by the U.S.
Government's inter-agency country risk assessment system (IeRAs)
as adequate compensation for sovereign risk of countries such as
Mexico, or (2) a rate based on the amount of U.S. funds outstanding
to Mexico from short-term swaps, medium-term swaps, and loan
guarantees at the time of disbursement.
•
Mexico has not missed any interest payments or required principal
repayments under any of the swaps. The Exchange Stabilization
Fund (ESF) has received $188.5 million in interest payments from
Mexico for short- and medium-term swaps. The Federal Reserve
has received $33.4 million in interest on its short-term swaps with
Mexico to date. The next interest payment date is October 2, when
$246.5 million will be due to the ESF on the $10.5 billion in
medium-term swaps.
As of September 30, 1995, $12.0 billion has been disbursed to Mexico
through the ESF, of which $11.5 billion remains outstanding.
The schedule of swaps under both ESF and Federal Reserve swap lines is
as follows:
ESF short-term swaps
•
On January 11 and January 13, 1995, Mexico
made two drawings of $250 million each under
short-term swaps through the ESF. Mexico
repaid these drawings on March 14, 1995.
•
On February 2, 1995, the U.S. disbursed $1
billion under a short-term swap through the
ESF; this swap was rolled over for an additional
90-day period on May 3, 1995 and again on
August 1, for a new maturity date of October
30, 1995. The current quarterly interest rate is
5.45%.
23
Treasury Secretary's Report to Congress
September 1995
ESF medium-term swaps
•
Mexico drew $3 billion under a medium-term
swap on March 14, 1995. The current quarterly
interest rate is 7.80%.
Repayment is to be made in seven installments
as follows: six equal installments of $375
million each, payable on June 30, 1998 and
each successive calendar quarter date to and
including September 30, 1999; and one
installment of $750 million, payable on
December 31, 1999.
•
On April 19, 1995, Mexico made a second $3
billion drawing through a medium-term swap.
The current quarterly interest rate is 10.16%.
Repayment is to be made in twelve installments
as follows: eleven equal installments of $245
million each, payable on June 30, 1997 and on
the last day of each successive calendar quarter,
to and including December 31, 1999; and one
installment of $305 million, payable on March
31,2000.
•
On May 19, 1995, Mexico drew $2 billion under
a medium-term swap. The current quarterly
interest rate is 10.16%.
Repayment is to be made in twelve installments
as follows: eleven equal installments of $170
million each, payable on June 30, 1997 and on
the last day of each successive calendar quarter,
to and including December 31, 1999; and one
installment of $130 million, payable on March
31,2000.
24
Treasury Secretary's Report to Congress
September 1995
•
Most recently, on July 5, 1995, Mexico drew
$2.5 billion under a medium-term swap. The
current quarterly interest rate is 9.20%.
Repayment is to be made in twelve installments
as follows: eleven equal installments of $205
million each, payable on September 30, 1997
and on the last day of each successive calendar
quarter, to and including March 31, 2000; and
one installment of $245 million, payable on
June 30, 2000.
Federal Reserve swaps
•
Disbursements to Mexico through the Federal
Reserve System total $1.5 billion, with $1
billion outstanding. All Federal Reserve
disbursements are in the form of short-term
swaps.
•
On January 11 and January 13, 1995, Mexico
made two drawings of $250 million each under
short-term swaps. Mexico repaid these
drawings on March 14, 1995.
•
A short-term swap of $1 billion was extended
on February 2, 1995; this swap was rolled over
for an additional 90-day period on May 3, 1995
and again on August 1, 1995, for a new
maturity date of October 30, 1995. The
current quarterly interest rate is 5.45%.
Table 5 gives the amortization schedule of outstanding swaps.
IV.
Mexico's Financial Transactions
Effective upon the signing of the agreements on February 21, 1995, and
prior to each disbursement, Mexico must provide Treasury with
information on the intended use of U.S. funds, and Treasury must verify
that such uses are consistent with Mexico's Financial Plan.
25
Treasury Secretary!s Repol1 to Congress
September 1995
TABLE
S. Amortization Schedule of Outstanding Swaps with Mexico
Amount Due fUSS million)
Quarte,
Quarterly
Annually"'
Ending
12,500
12,500
Total Amount
0
Mar-95
0
Jun-95
0
SeJr95
2,000
2,000
Dec-95
0
Mar-96
0
Jun-96
0
SeJr96
Dec-96
0
0
Mar-97
0
415
Jun-97
620
SeJr97
Dec-97
620
1,655
Mar-98
620
Jun-98
995
995
SeJr98
Dec-98
3,605
995
Mar-99
995
Jun-99
995
995
SeJr99
1,370
4,3:'::
Oec-99
Mar-2000
640
Jun-2000
245
SeJr2000
0
885
Oec-2000
0
Repayment Schedule of Disbursements to Date (USS millionJ
02102195*03/14195
07/05/95
04119/95
05/19/95
2,000
2,500
3,000
2,000
3,000
0
0
0
0
0
0
0
0
0
0
0
0
2,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
· 0
0
0
0
0
0
0
0
0
0
170
245
170
205
0
245
170
205
0
245
170
205
0
245
170
205
375
245
170
205
375
245
170
205
375
245
170
205
375
245
170
205
245
375
170
205
375
245
170
205
245
750
205
305
130
0
245
0
0
0
0
0
0
0
0
0
0
0
* This column represents the sum of quarterly payments in a given year; it does not represent an additional payment.
**$2 billion in short term swaps disbursed on February 2, 1995 were rolled over for
an additional 90 day period on May 3, 1995, and again on August 1, 1995, for a new
maturity date of October 30, 1995.
26
Treasury Secretary's Report to Congress
September 1995
•
To date, Mexico has requested and Treasury has authorized the use
of funds to redeem tesobonos and other short-term, dollardenominated debt of the Mexican government and its agencies.
•
As of September 19, 1995, Mexico has used $12.2 billion in U.S.
funds to redeem tesobonos and $0.3 billion to accumulate reserves
for future redemptions of tesobonos and other short-term dollardenominated obligations.
With U.S. and other official support, Mexico has reduced the amount of
outstanding tesobonos, or short-term, dollar-linked government debt, by
about $27 billion since the beginning of 1995.
•
Since the beginning of 1995, the amount of tesobonos outstanding in
public hands has declined from $29.2 billion to $2.6 billion at the
end of September.
v.
Status of the Oil Facility
Payments through the Federal Reserve Bank of New York account
The payment mechanism, established under the Oil Proceeds Facility
Agreement, continues to function smoothly.
An independent review has confirmed that the Mexican oil proceeds
financial mechanism is working well. Petroleos Mexicanos' independent
public auditors, Coopers & Lybrand, analyzed the information utilized for
the last two quarterly export reports prepared by PEMEX and provided a
report to the U.S. Treasury pursuant to the Oil Proceeds Facility
Agreement. Their review revealed that the reports "fairly present"
information related to both PEMEX's oil exports and the collection of
proceeds from such exports. Similar reviews will be performed every six
months.
As of September 18, 1995, $4.6 billion has flowed through Mexico's special
funds account at the Federal Reserve Bank of New York since the
agreement went into effect in early March. Approximately $25 million to
$30 million flows through the account each day. To date, there have been
no set-offs against the proceeds from Mexico's crude oil, petrochemical,
and refined product exports.
27
Mexico has pursued tight monetary policy.
• Money supply growth has been controlled.
Nominal M1, seasonally adjusted
30%
20%
10%
0%
-10%
-20% ~-----------------------------------------------------Jan 94 Mar 94 May 94 Jul 94 Sep 94 Nov 94 Jan 95 Mar 95 May 95 Jul 95
Feb 94 Apr 94 Jun 94 Aug 94 Oct 94 Dec 94 Feb 95 Apr 95 Jun 95 Aug 95
-
Change from previous year
•
Change from previous month
-
Net domestic credit has been reduced.
110,000
100,000
90,000
80,000
70,000
60,000
en
50,000
c
.Q
40,000
30,000
~
a.. 20,000
z 10,000
0
10,000
20,000
30,000
40,000
50,000
-
Monetary Gross International Net Domestic
Base
Reserves
Credit
-
Despite the recessionary effects of adjustment,
Mexico has maintained tight fiscal policy.
• Higher oil receipts and a
VAT increase helped
offset declines in other
public sector reven ues
during the 1st half of
1995.
.... 40%
'"'"
Cii 30%
.r::.
iii
32
20%
.9
~
10%
'" 0%f-----~-----,----=-r-----~~~7IT
~
8
-2%
g;,
-10%
c:
-5'" -20%
-15.9%
Cii
Q)
~-30%L---------------------------------
DOil Revenues.VAT TaxesEJOther Revenues
• Cuts in real non-interest
public sector spending,
particularly investment,
more than offset high real
interest payments.
~
m
m
.-
80%
60%
- 40%
co
54.1%
.c
(ii
.-
B 20%
"ffi
Q)
0%
a.
E
I-----'----~
8 -20%
g> -40%
III
Q)
.c
:::.III -60%
-57.4%
Q)
~-80%L--------------------------------
D
• As a result, the public
sector non-financial
balance increased
compared to the first half
of 1994.
,nterest .Non-Interest DFed. Wages ~Federal
Payments
Spending
and Benefits W Investment
8
6
a..
o
<.9 4
'0
cF-
2.1
2
o
L---i..-_ _ _ __
First half 1994
First half 1995
DOvera" Balance.Primary Balance
Second quarter nominal GOP estimated using reported increase
in Mexican CPl. Primary balance equals overall balance less
interest payments.
Mexico has effectively restructured its short-term
dollar debt. ..
The outstanding balance of tesobonos has been reduced by 91 % this year.
The July-August concentration in maturities has been successfully managed.
•
•
Weekly Amortizations in US$M
Outstanding Balance in US$B
1600
1500
1400
1300
1200
1100
1000
900
800
700
600
500
400
300
200
100
o
30
25
20
15
10
5
~~~~~~~~~~~~~~~~~~~u=~~~~~~~~~~~~0
Jan-95
Feb-95
Mar-95
Apr-95
May-95
Jul-95
Jun-95
Aug-95
Outstanding Balance Amortizations in Pesos Redeemed directly into US$
-
IIIB5:l
_
... and has reconfigured its debt profile .
• Maturities of tesobonos and GOM external
debt* have been extended.
140
o Short-term
.Tesobonos
.Long-term
OIMF
120
• Domestic debt is now mostly
peso-denominated.
100%
OBondes
.Cetes
OAjustabonos
.Tesobonos
80%
100
60%
IJ)
c
~
:0
~
(f)
:::l
80
60
40%
40
20%
20
0
0%
End 1994
End Q2 1995
End 1994
End July 1995
.. Includes only obligations of the Mexican government; does not include $11.5 billion in medium-term
assistance from the IMF and $2 billion in short-term swaps from the ESF and Federal Reserve,
accounted for as Bank of Mexico liabilities.
Mexico's stabilization policies have produced
strong results.
•
I nflation has moderated.
II
Mexican Consumer Price Index
(not seasonally adjusted)
~ 10%
'E
o
E
8%
'"o
;j
.~
6%
a.
~
.::
4%
OJ
g>
ro
~
2%
O%LJ_--
U
Nov 94
•
Dec 94
Jan 95
Feb 95
Mar 95
Apr 95
May 95
Jun 95
Jul95
Aug 95
Nominal interest rates have fallen since their March peak.
90%
28-day Cetes
auction rate
-
70%
60%
50%
40%
30%
20%
10%
O%L---------------------------------~~~--~~~~~~~~~~-3/1
3/15
3/29
4/12
4/26
5/9
5/23
6/6
6/20
7/4
7/18
8/1
8/15
8/29
9/12
•
High real interest rates reflect tight monetary policy.
30%
20%
10%
0%
-10%
-30%3/15
-
Real 28-day Interest rates
-20%
3/31
4/15
4/30
5/15
5/30
6/15
6/30
7/15
7/31
7/15
7/31
8/15
While the banking system remains under strain, dollar
obligations by Mexican banks to the government insurance fund
have been completely repaid .
• Repayment of FOBAPROA loans reflects Mexico's improved access to private
international capita\.
Balances USS billIOnS
400
300
200
100
· 100
·200
~J---~--~--.---'----r---r---r---r---r--~---.---,--~~---L
~Jar>.95
2~Ja(>.95
I().Feb-95
29-Feb-95
16-Ma,·95
4-A(><·95
24-Ap,·95
12-May·95 31-May·95
16-Jun.95
4-Ju~95
2()'JUr>95
7·Aug-95
23-Aug-95
-300
Bond markets have reacted favorably to
Mexico's stabilization program, suggesting
increased investor confidence.
• Stripped spreads on Mexican Brady Bonds have tightened
significantly.
20%
15%
5%
-
Stripped Spread
O%L-----------------------------------------------01/05
02/02
03/02
03/31
04/28
05/26
06/26
07/24
08/21
09/20
12122
01/19
02/16
03/16
04114
05/12
06/12
07/10
08/07
09/06
• Yields on United Mexican States Yankee bonds have declined
since March.
24%
22%
20%
18%
16%
14%
12%
10%
8%L---------------------~--~~--~~--~~~~--~
12/1
1113
12/21
2/15
2/2
4/12
3/15
3/1
3/29
5/10
4/25
-
6/7
5/24
Secondary market yields
7/12
6/20
8/23
8/1
9/20
9/6
Investor confidence in Mexico's adjustment
program has bolstered financial markets.
• The peso is currently about 20% above its March low.
4.54
-
NP/US$ Spot Rate
I
Appreciation
7.14 -
Depreciation
8.33 co
...
...-. ...... ;:: N...
N
N
0>
0
-.
0>
("')
0
0
0
N
N
0
0
...
(0
0>
cry
cry
cry
0
0
0
(0
0
N
0
0
N
0
~
0
...
N
N
~
0
N
'<:t
~ in
in
0
0
0
N
(0
0
Ii5
0
...
Ii5
(0
0
co
0
.-
N
;:::
0
0
Ii5
0
N
;:::
0
... ......
co co
0
0
0
...
co 00>e en0
0
("')
(0
N
co
• Volatility in peso trading has decreased since the height of the crisis.
Spreads in Peso Spot Market
4%
4%
-
Bid-ASk/Ask Price
3%
3%
2%
2%
• Mexico's stock market is currently near pre-crisis levels.
110
100
Peso Index Dollar Index
25 90
80
70
..- 60
x 50
C1>
"'0
c 40
30
20 co
N
II
"<:t
0>
N
N
----
--....
N
0> ..- 0
C')
2
..- ..- ..- N
0>
0
-- --
0
0
0
N
N
N
0
<0
(0
0
..-
0>
N
C')
C')
C')
0
0
0
-- -- -- --
0
~
0
0
N
"<:t
0
N
0
N
II)
II)
0
0
..-
-- -- --
"<:t
N
in
0
<0
-0
<0
0
<0
co
<0 c.o
0
..-
0
0
N
r--
r--
..-
-- -- -- co--
N
0
0
0
0
0
C')
co
0
<0
co
..-
-- -- --
N
co
0
0
0>
0
0>
0
Financial support and market inflows have
helped Mexico rebuild international reserves.
• In 01 1995, liquidity problems caused by large tesobono
redemptions and other capital outflows allowed for an increase in
international reserves of only $702 million despite $12.7 billion in
official assistance.
• In 02, however, reserve accumulation of $3.2 billion amounted to
64% of the $5 billion in official support, despite outflows of $3.9
billion to redeem tesobonos.
• In the third quarter, through mid-September, reserves grew by
$5.1 billion, or 83% of the $6.1 billion Mexico received in official
support, despite outflows of $4.7 billion to redeem tesobonos .
• USA 0 IMF 0 Reserves. Tesobonos 0 Other sources or uses, net
*
14,000
12,000
en
c
.Q
E 10,000
ffi
(/)
=>
vi
3:
8,000
0
&;:
Q)
en
c
ro 6,000
.r:.
u
x
Q)
c
en
.iii 4,000
....
0
l.L.
2,000
o
01 95
USt3S
Sources
(official and
other)
Uses
0295
Sources
(official and
other)
0395**
Uses
Sources
(official and
other)
* Current account balance, public sector external debt issuances and amortizations, and private capital
flows.
** Through September 15.
Mexico's real exchange rate has reflected the
general stability of the peso and a moderating
rate of inflation.
• The real exchange rate has appreciated, but remains below
pre-crisis levels.
110
-
Monthly Average
100
0
0
..-
90
II
0
(J)
(J)
..-
80
70
60
Dec-94
Jan-95
Feb-95
Mar-95
Apr-95
May-95
Jun-95
Jul-95
Aug-95
Exports have exceeded imports for six
consecutive months, producing a trade surplus.
Change from year earlier
50%
40%
30%
20%
10%
0% 1 - - - - - - - - - - - - - - - 1 Imports Exports
-10%
-20%
1-------------
SUS millions
1,500
I • Trade Balance I
1,000
500
o
(500)
(1,000)
(1,500)
(2,000)
(2 ,500)
LOj\).-Oj_\).-Oj:-~----:OJ\).--:'0j\).-?57\).--~:---:~::-0j-;:\).-0j-;:-\).--;~;::.---;~:--0j<:::h--:~c;:;-<:~~<;:~;--0j<:::h--~c;:;-<:~~-;hQ::,
,
~
~
_\.'
~
,
,
,
!o.!
~
d
~
"S5
~
~
~
~
~
0)
#~~~~~~~~&#~~~~~~~~~
Mexico's economy experienced a sharp
recession in 1995.
• Industrial production declined.
15%
10%
-10%
Year over year change
-15%
Change from previous month (SA)
CJ
-
SA indicates seasonally adjusted.
• Retail sales fell.
20%
10%
0%~~~~~.J~~~~~~~~~~
-10%
-20%
-30%
-40%
•
GOP contracted.
10%
5%
0%
-5%
-
Change from a year earlier
-
Change from previous month (SA)
o
c.o
federal financing
WASHINGTON, DC
20220
bonkNEWS
September 29, 1995
FEDERAL FINANCING BANK
Charles D. Haworth, Secretary, Federal Financing Bank (FFB),
announced the following activity for the month of August 1995.
FFB holdings of obligations issued, sold or guaranteed by
other Federal agencies totaled $86.8 billion on August 31, 1995,
posting a decrease of $2,115.7 million from the level on
July 31, 1995. This net change was the result of a decrease in
holdings of agency debt of $1,052.0 million, in holdings of
agency assets of $1,035.2 million, and in holdings of agencyguaranteed loans of $28.5 million. FFB made 16 disbursements and
executed 115 maturity extensions or interest rate resets during
the month of August.
FFB also received 153 prepayments in
August.
Attached to this release are tables presenting FFB August
loan activity and FFB holdings as of August 31, 1995.
RR-610
0)
N
N
N
c.o
N
o
N
(/)
~
0..
0
L{)
~
N
N
N
c.o
N
0
N
tE
l.L
Page 2 of 6
FEDERAL FINANCING BANK
AUGUST 1995 ACTIVITY
BORROWER
DATE
AMOUNT
OF ADVANCE
FINAL
MATURITY
8/15
8/15
8/15
$300,000,000.00
$300,000,000.00
$500,000,000.00
11/15/95
11/15/95
11/15/95
5.722% S/A
5.722% S/A
5.722% S/A
1/2/96
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
5.775%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
INTEREST
RATE
AGENCY DEBT
*U.S. Postal Service
*U.S. Postal Service
*U.S. Postal Service
GOVERNMENT - GUARANTEED LOANS
GENERAL SERVICES ADMINISTRATION
Memphis IRS Service Cent.
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
*Foley Square Courthouse
8/2
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
$4,600,371.74
$770,239.00
$653,458.00
$1,101,529.00
$1,193,114.39
$1,018,833.20
$1,342,726.76
$1,201,031. 96
$1,871,714.54
$2,309,699.55
$1,854,805.86
$2,180,135.68
$3,273,710.81
$1,923,716.00
$4,414,523.23
$318,936.40
$225,436.00
$2,606,399.00
$226,593.00
$73,684.62
$162,889.00
$3,457,711.00
$57,499.00
$28,422.00
$4,899,131.00
$237,979.00
$5,734,790.00
$6,309,667.00
$10,181,743.00
$11,103,871. 00
$225,287.00
$8,662,213.00
$10,657,014.00
$9,443,163.00
S/A is a Semi-annual rate
* maturity extension or interest rate reset
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
Page 3 of 6
FEDERAL FINANCING BANK
AUGUST 1995 ACTIVITY
DATE
BORROWER
AMOUNT
OF ADVANCE
FINAL
MATURITY
INTEREST
RATE
GOVERNMENT - GUARANTEED LOANS
GENERAL SERVICES ADMINISTRATION
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
*Foley
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Square
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Courthouse
Office Bldg.
Office Bldg.
Office Bldg.
Office Bldg.
Office Bldg.
Office Bldg.
Office Bldg.
Office Bldg.
Office Bldg.
Office Bldg.
Office Bldg.
Office Bldg.
Office Bldg.
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
$8,291,656.00
$15,314,730.00
$11,943,484.00
$12,055,809.00
$11,756,626.00
$15,883,111.00
$12,926,671.00
$14,530,174.00
$14,461,021.00
$14,584,776.00
$12,712,708.00
$15,003,796.00
$15,645,628.00
$6,742,550.00
$7,100,892.00
$10,289,963.00
$10,860,308.00
$8,088,093.00
$6,958,810.00
$9,038,123.00
$7,442,287.00
$1,363,301.00
$2,342,530.00
$1,917,588.00
$1,435,217.00
$806,822.00
$793,036.00
$641,496.00
$900,206.00
$1,421,100.00
$1,775,981.00
$2,307,932.00
$1,932,378.00
$1,784,197.00
$2,450,879.00
$2,435,370.00
$3,959,605.00
$2,891,337.00
$3,208,693.00
$5,367,316.00
S/A is a semi-annual rate
* maturity extension or interest rate reset
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
Page 4 of
FEDERAL FINANCING BANK
AUGUST 1995 ACTIVITY .
BORROWER
DATE
AMOUNT
OF ADVANCE
FINAL
MATURITY
INTEREST
RATE
GOVERNMENT - GUARANTEED LOANS
GENERAL SERVICES ADMINISTRATION
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Square Office Bldg.
*Foley Sqare Land Purchase
Oakland Office Building
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/4
8/10
$3,745,205.00
$5,769,225.00
$2,260,036.00
$5,229,713.00
$5,420,349.00
$5,117,626.00
$7,622,759.00
$6,921,378.00
$8,061,766.00
$8,595,398.00
$10,952,780.00
$10,990,271.00
$9,100,311.00
$8,268,511.00
$8,922,315.00
$8,095,979.00
$6,801,793.00
$5,810,309.00
$7,051,191.00
$7,055,348.00
$7,629,703.00
$7,298,033.00
$9,327,114.00
$9,430,667.00
$156,182.00
$9,312,764.00
$8,605,675.00
$8,213,408.00
$7,620,825.00
$6,496,998.00
$5,588,511.00
$6,162,995.00
$5,470,398.00
$2,712,609.00
$2,181,810.00
$1,232,667.00
$1,836,610.00
$1,334,446.00
$104,000,000.00
$50,487.00
S/A is a Semi-annual rate
* maturity extension or interest rate reset
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
7/31/25
9/5/23
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.992%
6.962%
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
Page 5 of 6
FEDERAL FINANCING BANK
AUGUST 1995 ACTIVITY
INTEREST
RATE
AMOUNT
OF ADVANCE
FINAL
MATURITY
8/11
8/11
8/18
8/21
8/22
8/29
8/29
8/29
$230,540.00
$113,621. 37
$1,172,648.73
$314,007.92
$1,382,303.00
$1,541,853.97
$2,730,798.00
$1,740,522.00
12/11/95
12/11/95
9/1/95
12/11/95
7/31/25
9/1/95
7/31/25
1/2/96
5.730%
5.730%
5.732%
5.763%
6.979%
5.607%
6.794%
5.639%
8/15
$11,425,589.04
11/2/26
7.076% S/A
8/4
8/14
8/21
8/22
8/22
$650,000.00
$190,000.00
$250,000.00
$500,000.00
$250,000.00
12/31/26
12/31/26
12/31/25
12/31/13
12/31/25
6.939%
7.014%
6.886%
6.701%
6.919%
DATE
BORROWER
GOVERNMENT - GUARANTEED LOANS
GENERAL
SE~VICES
ADMINISTRATION
Foley Services Contract
Foley Services contract
Atlanta CDC Office Bldg.
Foley Services contract
Foley Square Courthouse
Atlanta CDC Office Bldg.
Foley Square Office Bldg.
Memphis IRS Service Cent.
S/A
S/A
S/A
S/A
S/A
S/A
S/A
S/A
GSA/PADC
ICTC Building
RURAL UTILITIES SERVICE
o & A Electric Coop. #379
Central Power Elec. #395
Randolph Electric #359
Beaver Creek Coo~. #391
wild Rice Electr1c #353
S/A is a Semi-annual rate:
Qtr. is a Quarterly rate.
Qtr.
Qtr.
Qtr.
Qtr.
Qtr.
Page 6 of 6
FEDERAL FINANCING BANK
(in millions)
Net Change
Program
Agency Debt:
Department of Transportation
Export-Import Bank
Resolution Trust Corporation
Tennessee Valley Authority
U.S. Postal service
sub-total·
Agency Assets:
FmHA-ACIF
FmHA-RDIF
FmHA-RHIF
DHHS-Health Maintenance Org.
DHHS-Medical Facilities
Rural Utilities Service-CBO
Small Business Administration
SUb-total·
Government-Guaranteed Loans:
DOD-Foreign Military Sales
DHUD-Community Dev. Block Grant
DHUD-Public Housing Notes
General Services Administration +
DOl-Virgin Islands
DON-Ship Lease Financing
Rural Utilities Service
SBA-Small Business Investment Cos.
SBA-state/Local Development Cos.
DOT-Section 511
sub-total·
grand-total·
.figures may not total due to rounding
+does not include capitalized interest
August 31. 1995
$
0.0
2,646.1
13,603.8
3,200.0
8,614,7
28,064.5
July 31. 1995
$
0.0
2,646.1
14,655.8
3,200.0
8,614.7
29,116.5
811/95-8/31/95
FY '95 Net Change
10/1/94-8/31/95
0.0
0.0
-1,052.0
0.0
0.0
-1,052.0
-664.7
-1,280.4
-12,915.4
-200.0
-358.4
-15,418.8
$
$
1,690.0
3,675.0
22,019.0
8.0
23.8
4,598,9
0.1
32,014.8
1,838.0
3,675.0
22,906.0
8.0
23.8
4,598.9
0.3
33,050.0
-148.0
0.0
-887.0
0.0
0.0
0.0
-0.2
-1,035.2
-4,373.0
0.0
-2,372.0
-17.3
-11. 9
0.0
-0.9
-6,775.2
3,546.1
91.6
1,688.5
2,257.5
21.0
1,432.1
17,276.2
9.8
359.7
14.6
26,697.1
=========
$ 86,776.4
3,567.5
93.1
1,688.5
2,232.2
21.0
1,432.1
17,274.4
15.8
386.0
15.0
26,725.6
-21. 5
-1. 5
0.0
25.3
0.0
0.0
1.8
-6.0
-26.3
-0.4
-28.5
-239.4
-18.3
-58.0
227.9
-1.0
-47.4
-40.4
-46.8
-163.3
0.0
-386.7
=========
$ 88,892.1
========
=========
$-2,115.7
$-22,580.7
TREASURY
NEWS
OFFlCE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C.. 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
October 2, 1995
Contact: Michelle Smith
(202) 622-2960
MEDIA ADVISORY
Treasury Secretary Robert E. Rubin will host the G-7 finance ministers meeting
Saturday, October 7 at the Treasury Department.
A pre-G-7 press conference will be at 10 a.m. Friday. October 6. In Treasury's large
conference room, Room 3327. Secretary Rubin \vill brief reporters. followed on background
by a senior Treasury official. The press conference will be embargoed for 10 to 15 minutes
after the backgrounder.
Cameras should be in place at the Bell Entrance of the Treasury Department (between
the Treasury and the White House) at 11:30 a.m. for arri\'als of the finance ministers. Other
expected press opportunities include a group photo of the finance ministers and a pooled
photo opportunity of the finance ministers' \vorklllg session. TImes for these events will be
provided.
A press conference will be at 5:45 p.Ill .. Saturda\,. (time tel1tatl\e) after the G-7
meeting. in Treasury's large conference roolll. Room 3327.
Media without Treasury, White House. State. Defense or CongressIonal credentials
planning to cove:- any of these events should contact the OffIce of PublIC Affairs at
(202) 622-2960. with the followlflg Information: name. SOCIal SecurIty or passport number.
news organization and date of birth. by 5 p.lll .. Thursday. Octoher 5. TIllS Information may
be faxed to (202) 622-1999.
RR-6JJ
For press releases, .\peeches, public schedules and official hiog:raphies. call
ollr
24-hourfax IiI/£' at 1202) 622-2040
UBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239
FOR IMMEDIATE RELEASE
October 2, 1995
CONTACT: Office of Financing
202-219-3350
RESULTS OF TREASURY'S AUCTION OF 13 -WEEK BII,:"
':~
Tenders for $12,623 million of 13-week bills to be issued
October 5, 1995 and to mature January 4, 1996 were
accepted today (CUSIP: 912794W42).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.31%
5.34%
5.34%
Investment
Rate
5.47%
5.50%
5.50%
Price
98.658
98.650
98.650
$1,000,000 was accepted at lower yields.
Tenders at the high discount rate were allotted 29%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
Received
$45,032,231
$12,623,396
$39,556,466
1,366 1 110
$40,922,576
$7,147,631
1 1 366 1 110
$8,513,741
3,463,530
3,463,530
646 1 125
$45,032,231
646 1 125
$12,623,396
Acce~ted
An additional $98,775 thousand of bills will be
issued to foreign official institutions for new cash.
5.27 -- 98.668
RR-612
5.32 -- 98.655
5.33 -- 98.653
UBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt • Washington, DC 20239
FOR IMMEDIATE RELEASE
October 2, 1995
CONTACT: Office of Financing
202-219-3350
RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Tenders for $12,614 million of 26-week bills to be issued
October 5, 1995 and to mature April 4, 1996 were
accepted today (CUSIP: 912794X90).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
5.36%
5.38%
5.38%
Investment
Rate
5.60%
5.62%
5.62%
Price
97.290
97.280
97.280
$1,650,000 was accepted at lower yields.
Tenders at the high discount rate were allotted 24%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$47,541,130
Accepted
$12,614,294
$41,775,631
1. 257,224
$43,032,855
$6,848,795
1. 257,224
$8,106,019
3,200,000
3,200,000
1.308,275
$47,541,130
1. 308,275
$12,614,294
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
An additional $199,925 thousand of bills will be
issued to foreign official institutions for new cash.
5.25 -- 97.346
RR-613
5.27 -- 97.336
5.37 -- 97.285
DEPARTMENT
OF
THE
TREASURY
NEWS
TREASURY
~iI78~q~. . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
..............................
OFFICE OF PUBUCAFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. _ 20220 _ (202) 622-2960
FOR RELEASE AT 2:30 P.M.
October 3, 1995
CONTACT:
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $26,000 million, to be issued October 12,
1995. This offering will provide about $250 million of new cash
for the Treasury, as the maturing bills are outstanding in the
amount of $25,759 million.
Federal Reserve Banks hold $6,414 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $2,326 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356) for the sale and issue by the
Treasury to the public of marketable Treasury bills, notes, and
bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
RR-614
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED OCTOBER 12, 1995
October 3, 1995
Offering Amount .
$13,000 million
$13,000 million
91-day bill
912794 W5 9
October 10, 1995
October 12, 1995
January 11, 1996
January 12, 1995
$31,882 million
$10,000
$ 1,000
182-day bill
912794 Y2 4
October 10, 1995
October 12, 1995
April 11, 1996
October 12, 1995
Description of Offering:
Term and type of security
CUSIP number
Auction date
Issue date
Maturity date
Original issue date
Currently outstanding
Minimum bid amount
Multiples .
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
Competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive teDders
Competitive tenders
Payment Terms
Prior to 12:00 noon Eastern Daylight Saving time
on auction day
Prior to 1:00 p.m. Eastern Daylight Saving time
on au-ction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
DEPARTMENT
OF
THE
IREASURY ~{\t'f~
~~¢~
TREASURY
NEW S
~/7Hq~. . . . . . . . . . . . . . . . . . . . . . . . . .. . .
............................
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C.. 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
October 4, 1995
Contact: Jon Murchinson
(202) 622-2960
SECRETARY RUBIN ANNOUNCES TAX COURT NOMINEE
Treasury Secretary Robert E. Rubin announced Wednesday, that President Clinton
intends to nominate Joseph H. Gale to be a judge on the United States Tax Court.
Mr. Gale has served as Minority Staff Director for the Senate Committee on Finance
since July 1995. He was the committee's Minority Chief Tax Counsel from January 1995 to
July 1995 and was Chief Tax Counsel from January 1993 to January 1995. Mr. Gale was
Chief Counsel for Senator Daniel Patrick Moynihan (D-N.Y.) from 1990 to 1993. He has
also been an associate attorney with the law firms of Dickstein, Shapiro & Morin in
Washington, D.C. and Dewey, Ballantine, Bushby, Palmer & Wood in Washington, D.C. and
New York, N.Y.
Mr. Gale received an A.B. in Philosophy from Princeton University in 1976 and alD.
from the University of Virginia School of Law in 1980, where he was a Dillard Fellow from
1979 to 1980.
-30-
RR-615
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT
OF
TREASURY;
THE
TREASURY
NEW S__
"~"""""~J7~~"""""
OFFICE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. _ 20220 _ (202) 622-2960
FOR IMMEDIATE RELEASE
October 5, 1995
Contact: Michelle Smith
(202) 622-2960
MEXICO PREPAYS $700 MILLION IN U.S. SWAPS
Treasury Secretary Robert E. Rubin announced on Thursday that Mexico will prepay
the United States $700 million in short-term swaps -- half to Treasury's Exchange
Stabilization Fund (ESF) and half to the Federal Reserve System.
"Mexico is beginning to repay the United States before it was expected to do so, "
Secretary Rubin said. "As we said last winter, the financial program for Mexico supported
economic reforms, protected the American taxpayer, and ensured that Mexico would remain
a growing market for U.S. exports and a stable neighbor on our southern border. By these
measures, the Mexico program is a success. "
In providing assistance to Mexico under the February 21 Agreements, the
Administration acted to protect American exports and jobs, the security of our common
border, and the stability of other emerging market economies.
"Because our support enabled Mexico's authorities to act, Mexico's international
reserves are up, the current account deficit has been closed, tesobonos have been largely
retired, and the country has quickly regained access to the capital markets," Secretary Rubin
said.
After this repayment, U.S. support outstanding will total $11.8 billion, $1.3 billion in
short-term swaps, and $10.5 billion in medium-term swaps. Under the program, Mexico has
paid $435 million in interest on its swaps to the ESF and $33.4 million in interest on its
swaps with the Federal Reserve.
Rubin noted Mexican Finance Minister Ortiz's announcement of an upcoming 5-year
bond issue and added that, "Mexico's ability to repay $700 million, while extending the
maturities of its external debt, is good financial news for Mexico and for the United States.
We agree with the Mexican authorities that the continuation of strong stabilization policies
will be the quickest way for Mexico to return to growth. "
RR-616
(More)
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
While Mexico's repayment demonstrates restored financial stability and regained
confidence, Treasury reaffirms that a total of $20 billion in U.S. support could be made
available to Mexico, in stages, and if needed, based on Mexico's continuing fulfillments of its
commitments under the February 21 agreements.
-30-
DEPARTMENT
OF
THE
TREASURY
NEWS
FOR IMMEDIATE RELEASE
October 5, 1995
Contact: Michelle Smith
(202) 622-2960
RUBIN WELCOMES ASIAN DEVELOPMENT BANK WASHINGTON OFFICE
Treasury Secretary Robert E. Rubin on Thursday welcomed the announcement of the
formal opening of the Asian Development Bank's North American representative office.
"The Asian Development Bank plays a crucial role in development of the region,
where the dynamic growth of Asian economies presents tremendous opportunities for U.S.
businesses," Secretary Rubin said. "Having an office in Washington provides a key access
point for U.S. firms interested in penetrating and expanding their market share in these
emerging markets."
The office, the Bank's ftrst in a non-borrowing country, aims to strengthen and
expand the working ties of the Bank with the United States and Canada, two of the Bank's
donor countries and major shareholders. It will also help improve coordination with key
international development institutions headquartered in Washington and New York. Business
people, academics and non-governmental organizations will also benefit from this important
communication link.
The Asian Development Bank, a development finance institution now in its 29th year
of operation, is engaged in promoting the economic and social progress of the Asian and
Pacific region. The Bank has 56 member countries, 40 within and 16 outside the region. It
provides loans, equity investments and technical assistance, and also cofmances projects with
bilateral and multilateral agencies as well as export credit and commercial sources.
As of June 30, 1995, the Bank had approved $51.9 billion in loans for 1,236 projects
in 34 countries and $3.9 billion for 3,539 technical assistance grants.
-30-
RR-617
Far press releases, speeches, public schedules and official biographies, call our 24.1zour fax line at (202) 622-2040
DEPARTMENT
TREASURY
FOR IMMEDIATE RELEASE
October 5, 1995
OF
THE
TREASURY
NEWS
Contact: Calvin Mitchell
(202)622-2920
STATEMENT OF SECRETARY ROBERT E. RUBIN
ON MEDICARE HOSPITAL INSURANCE TRUST FUND
As Managing Trustee of the Medicare Hospital Insurance (HI) Trust Fund, I have
noted a number of statements by Members of Congress which appear to be based on a
misunderstanding of what our 1995 annual report said. Because votes for significant changes
in Medicare should not be cast without Members knowing the facts, I want to recount briefly
what the Trustees reported about th~ funding status of Medicare.
Simply said, no Member of Congress should vote for $270 billion in Medicare cuts
believing that reductions of this size have been recommended by the Medicare Trustees or
that such reductions are needed now to prevent an imminent funding crisis. That would be
factually incorrect.
In the annual report to Congress on the financial condition of Medicare, the Trustees
concluded that using intermediate assumptions the HI Trust Fund will not be depleted until
2002, seven years from now. The major change between the 1994 Trustees Report and the
1995 Trustee Report is that the 1995 report showed a one year improvement in the solvency
of the trust fund from 2001 to 2002.
When we issued our findings, we asked Congress to take remedial action to fix the HI
Trust Fund on a near-term basis and then to make long-term changes in the system that would
accommodate the influx of "baby-boomer" heneficiaries. The first baby-boomers will reach 65
in the year 2010. At no time did the Trustees call the funding crisis "imminent." Without
adequate time for reflection, a responsible, bipartisan, long-term solution to the financing
problem could not be structured. We therefore did not imply that cuts of the magnitude being
proposed now were needed.
Nonetheless, the Majority is asking for $270 billion in Medicare cuts, almost three
times what is needed to guarantee the life of the Hospital Insurance (Part A) Trust Fund for
the next ten years. Moreover, I understand that the $270 billion of cuts proposed by the
Majority includes increases in costs to beneficiaries under Part B of the Medicare program,
even though increases in Part B do not contribute to the solvency of the Part A Trust Fund. In
this context it is clear that more than $100 billion in Medicare funding reductions are being
used to pay for other purposes -- not to shore up the Medicare HI Trust Fund.
RR-618
(more)
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
By contrast. the President's proposal. by extending the life of the Part A trust fund to
~()06. as certified by the Health Care Financing Administration Chief Actuary, is consistent
with actions by prior Congresses and would afford us far more than sufficient time to propose
a bipartisan solution to the long-term fiscal needs of ~1edicare. Such a bipartisan solution
\\'ill be needed regardless of whether the President's plan or Congress' s plan is finally
adopted.
I am encouraged by the plans recently put forth by Senate Democrats led by Senators
Daschle and Moynihan. which like the Administration' s plan. would strengthen Medicare and
its Hospital Insurance Trust Fund.
Finally. to emphasize. the Trustees did not recommend $270 billion of Medicare cuts
at this time nor state that the funding problems facing Medicare require actions of this
magnitude now to deal with a financing problem that occurs in the next century.
I hope this information can be provided to Members of Congress on both sides of the
aisle as they review the significant changes in Medicare that are being considered so that
Members can have a clear understanding of the facts.
Thank you for this opportunity to present our views.
-30-
DEPARTMENT
OF
THE
TREASURY
~~/78~9~. . . . . . . . . . . . . . . . . ..
....................
OFFICE OF PUBUC AFFAIRS • 1500 PENNSYLVANIA AVENUE, N.W .• WASHINGTON, D.C .• 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
October 5, 1995
Contact: Michelle Smith
Chris Peacock
(202) 622-2960
UPDATED G-7 MEDIA ADVISORY
The following is updated information on the G-7 meeting Treasury Secretary Robert E. Rubin
will host this weekend at the Treasury Department.
Friday, October 6: A pre-G-7 press conference will be at 10 a.m. Friday, October 6, in
Treasury's large conference room, Room 3327. Secretary Rubin will brief reporters, followed on
background by a senior Treasury official. Cameras should be in place by 9:30 a.m. The press
conference will be embargoed for 10 to 15 minutes after the backgrounder; the embargo time will be
announced at the conclusion of the backgrounder.
Saturday, October 7: Cameras may begin setting up at 11 a.m. and should be in place at the
Bell Entrance of the Treasury Department (between Treasury and the White House) by 11:30 a.m.
Saturday, October 7, for arrivals of the finance ministers. Set up for the group photo opportunity of
the finance ministers will be at 1:30 p.m. followed by a pooled photo opportunity of the finance
ministers' working session. Press should meet at the Bell Entrance and will be escorted to the photo
site.
A press conference is tentatively scheduled for 5:45 p.m., Saturday, in Treasury's large
conference room, Room 3327, after the G-7 meeting. Press should enter via Treasury's 15th Street
Entrance. The press conference will be embargoed; the embargo time will be announced at the
conclusion of the press conference.
Pools: Pooled photo opportunities are of the U .S./Japanese bilateral meeting and of the G-7
working sessions. In the event of rain, the group photo opportunity may be pooled.
Treasury pool contact:
Network pool contact:
Hamilton Dix
Tony Capra (NBC)
(202) 622-2960
(202) 885-4200
Media without Treasury, White House, State, Defense or Congressional credentials planning
to cover any of these events should contact the Office of P'_~blic Affairs at (202) 622-2960, with the
following information: name, Social Security or passport number, news organization and date of
birth, by 5 p.m. today, October 5. This information may be faxed to (202) 622-1999.
-30RR-619
For press releases, speeches, public schedules and official biographies, call ollr 24-hourfax line at (202) 622-2040
PUBLIC DEBT NEWS
Department of the Treasury • Bureau of the Public Debt .• , Wastiiwgton, DC 20239
' .T \
\ ~ '-' \
'
.,;,
FOR RELEASE AT 3:00 PM
October 5, 1995
Contact: Peter Hollenbach
(202) 219-3302
PUBLIC DEBT ANNOUNCES ACTIVITY FOR
SECURITIES IN THE STRIPS PROGRAM FOR SEPTEMBER 1995
Treasury's Bureau of the Public Debt announced activity figures for the month of September 1995,
of securities within the Separate Trading of Registered Interest and Principal of Securities program
(STRIPS).
Dollar Amounts in Thousands
Principal Outstanding
(Eligible Securities)
$857,022,252
Held in Un stripped Form
$632,289,872
Held in Stripped Form
$224,732,380
Reconstituted in September
$12,015,398
The accompanying table gives a breakdown of STRIPS activity by individua110an description. The
balances in this table are subject to audit and subseqent revision. These monthly figures are
included in Table VI of the Monthly Statement of the Public Debt, entitled "Holdings of Treasury
Securities in Stripped Form. "
Information about "Holdings of Treasury Securities in Stripped Form" is now available on the
Department of Commerce's Economic Bulletin Board (EBB). The EBB, which can be accessed
using personal computers, is an inexpensive service provided by the Department of Commerce.
For more information concerning this service call 202-482-1986.
000
PA-196
(1Ul~20)
TABLE VI - HOLDINGS OF TREASURY SECURITIES IN STRIPPED FORM, SEPTEMBER 30.1995
(In thousands)
II
PnnCtpal Amount Outstanding
II
Loan DescnptJon
9-112% Note 0-1995
8-718% Note A-1996
7 -318 % Note C-1996
7-1/4% Note 0-1996
8-112% Note A-1997
8-S/8'A, Note 9-1997
8-718% Note C-1997
8-1/8% Note A-1998
9% Note 9-1998
9-114% NoteC-1998 ...
B-718% Note 0-1998
8-718% Note A-1999 .
9-118% Note 9-1999 ...
B% Note C-1999 .. : ......
7-718% Note 0-1999
B-112% Note A-2000 '.
8-718% Note 9-2000.
8-3/4% Note C-2000
8-112% Note 0-2000
7 -314% Note A-2001 ....
8% Note 9-2001 .
7-718% Note C-2oo1...
7.112% Note 0-2001... ..
7-112% Note A·2002 .....
6-318% Note 8-2002. .....
6·114% Note A·2003.....
5-314% Note 9-2003 ..
5-718% Note A·2004 .....
7.1/4% Note 8-2004.....
7-1/4% Note C-2004 ......
7·7/8% Note 0-2004.....
7·112% Note A·2005 ......
6·112% Note B·2005 ..
6-112% Note C-2005 ...
11~18% Bond 2004 .......
12% Bond 2005 ..........
10-314% Bond 2005 ...
9·318% Bond 2006 .....
1103/4% Bond 2009-14 ...
11·114% Bond 2015 ...
10-518% Bond 2015 ......
9-718% Bond 2015 ........
9-1/4% Bond 2016 .......
7·114% Bond 2016 ........
7 ·112% Bond 2016 ........
8-314% Bond 2017 ........
8·718% Bond 2017.. ......
9-118% Bond 2018 .......
9% Bond 2018.
8·718% Bond 2019 .......
8·118% Bond 2019 ......
8·112% Bond 2020 ......
803/4% Bond 2020 .......
8-314% Bond 2020 ........
7.718% Bond 2021.. ...
8·118% Bond 2021.. ......
8.118% Bond 2021.. ...
8% Bond 2021 ..........
7·1/4% Bond 2022.......
7 -5/8% Bond 2022 ....
7·118% Bond 2023 .......
15-1/4% Bond 2023 ........
7.112% Bond 2024 ......
7-518% Bond 2025 ........
6.718% Bond 2025 ........
Total ...............
ax
Matunty Date
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Portion Held In
Unstnpped Form
Total
11/15195 ..
3,239,350
6,300,209
16,640,843
17,311,610
8,709,237
7,S21,236
6,997,129
7,878,748
6,821,187
8,490,646
7,056,475
8,058,823
6,715,903
7,933,794
7,354,760
B,189,033
5,910,630
6,996,646
7.839,282
9,118,402
9,510,108
9,852.785
21,997.142
10,784.237
22.830.215
23,087.203
27,421,428
7,318,550
8,450,609
20,085,643
20,258,810
9,921,237
9,362,836
9,BOB,329
9,159,068
9,165,387
11,342,646
9,902,875
9,719,623
10,047,103
10,163,644
10,773,960
10,673,033
10,496,230
11,080,646
11,519,682
11,312,802
12,398,083
12.339,185
24,226,102
11.714.397
23.859,015
23.562.691
28,011.028
02115196 .
05/15196
11/15196
OS/15197
08/1S/97
11/15197 ..
02115198 ....
05/1S198
08/1SI98 ...
11/15198 ...
02115199 .
05115199 .. ,..
OB/1SI99 ..
11I1SI99......
02115100 ....
05/15100 ......
08/15100 ..
11/15100 ..
02115101 .
05115101 ..
08/15101.. ....
11115101 ......
05115102... ..
08/15102 ......
02115103.... ,.
08/15103., ..
02115104 ......
05/15104 ....
08115104 ......
11/15104......
II
II
PortIOn Held In
Stnpped Form
4,079,200 I I
2,150400 II
3,444,800 II
2,947,200 II
1,212,000 II
1,B41,600 II
2,81 I ,200 II
1,280,320 II
2,344,200 I I
2,852.000 II
2,846,400 II
1,660,800 II
3,331,200 II
2,229,B50 II
3,419.200 II
2,484,000 II
4,5B5,600 II
4,084,000 I I
3,6BO,400 II
2.194,400 II
2,BB7,975 II
2,486,400 II
2.228,960 II
930,160 II
1.028,800 II
475,488 II
589,600 II
9,336,480 II
5.488,000 II
6,560,000 II
6,326,400 II
14,118,400 II
3,828,160 II
4,091,200 II
6,758,160 II
15,524,640 II
899,200 II
7,480,000 II
8,257,600 II
25,640,625 II
3,066,400 II
7,835,200 II
4.046.400 II
1,413.280 II
3,247.040 II
1,128,000 II
011
108,000
1,600
36,800
0
19,200
73,600
105,600
20,800
9,000
40,000
222,400
264,000
48,000
33,SOO
0
75,200
22.400
419,200
362,800
311,200
226,500
19.200
84.800
45,200
113,600
155,040
58,400
0
0
0
0
0
0
0
265,600
18,000
84,000
0
324,800
690,720
647,680
171,200
65,600
0
293,040
434,400
532,800
305.600
202,000
344,000
287,360
246,800
159,360
1,031,840
81,600
216,960
102,400
769,550
790,400
156,800
508,800
338.848
69.200
0
0
II
12,015,398
12.955,On
12.955,on
a II
14.440,372
13,315,267
14.373.760
13,834,754
14,739.504
15,002,580
4,921,006
2,713,908
7,764,913
4,753,164
2.259,984
8,554,679
2,865,436
3,480,659
011
31,200 II
11/15122 ......
02115123 ......
14,440,372
13,346,467
14,373,760
13,834,754
14,739,504
15,002,580
8,301,806
4,260,758
9,269,713
4,755,916
6,005,584
12.667.799
7,149,916
6,899,859
7,266,854
18,823,551
18,864,448
18,194,169
14,016,858
8,708,639
9,032,870
19.250,798
20,213,832
10,228,868
10,158,883
21,418,606
11,113,373
11,958,888
12,163,482
32,798,394
10,352,790
10,699,626
18.374,361
08115123 ......
22.909,044
11115124 ....
11,469,662
11,725,170
12.602.007
02115105 ......
05/15105 ....
08115105 ......
11/15104......
05/15105
08/15105 ....
02115106 ......
11115114......
02115/15 ......
08115115 ......
11/15115 ......
02115/16 ......
05115116 ......
11/15116 ......
05115117 ......
08115/17.. ....
05/15/18 ......
11/15118 ......
02115/19 ......
08/15/19 ....
02115120 ......
05/15120 ......
08/15120 ......
02115121 ......
05/15121 ......
08/15121 ....
11115121... ...
08l15J22. .....
02115125 ......
08115125 ......
8,684,~
18,549,151
18,187,008
8,857,689
8,528,858
2.148,639
2,706,470
5.132,398
16,385,672
6,137,668
3,402,723
5,893,966
10,214,173
4,478,888
3,905,882
7.157.769
7,286,390
2,864,426
14,327,961
21,49S.764
8.222.622
10,597,170
12,602,007
857,022.252
=
632,289.872
=
., EJredrI8 May 1, 1987. secunties held in stnpped form were eligible for reconsbtutlon to thetr Ul'l$l11pped form.
NcJte. On en. 4It1 wor1cDay cI each month Table VI wiR be ~1abIe after 3.00 p.m. eastern time on the Commerce Oepartment'a
EconomIC Bulletin Board (EBB). The telephone number for more infolmabon about EBB is (202) 482-1986. The balance$
1M tn. table are aubfed 10 aud~ and subsequent adjustments.
Rec:onstituted
ThIS Month.1
all
011
011
011
3,380.800 II
1,546,850 II
1,504,800 II
2,752 II
3,745,600 II
4,113,120 II
4,284,480 II
3,419,200 II
602,400 II
274,400 II
6n,44O
224,732,380
II
a=
DEPARTMENT
OF
THE
TREASURY
NEWS
TREASURY
OFFICE OF PUBUC AFFAIRS -1500 PENNSYLVANIA AVENUE, N.W. - WASHINGTON, D.C. - 20220 - (202) 622-2960
FOR IMMEDIATE RELEASE
October 5, 1995
Contact: Jon Murchinson
(202) 622-2960
SECRETARY RUBIN AWARDS FRANK NEWMAN ALEX. HAMILTON AWARD
Treasury Secretary Robert E. Rubin today awarded former Deputy Secretary Frank N.
Newman the Alexander Hamilton Award in recognition of his distinguished leadership and
service to the department. The Hamilton Award, named after the first Treasury Secretary, is
the highest honor bestowed upon department officials by the Secretary of the Treasury.
"In nearly three years Frank Newman mastered Washington, brought keen managerial
insight to Treasury, became our cultural glue and helped this department produce what I
believe is the best legislative record of the Administration," Secretary Rubin said.
Mr. Newman came to Treasury in February 1993 as Under Secretary for Domestic
Finance. He became Deputy Secretary in September 1994. Mr. Newman oversaw the
development of policy and guided Treasury activities in the areas of management of the
public debt, financial institutions policy and regulation, financial management services, and
other domestic financial services. He was responsible for leading legislation affecting
financial institutions, Treasury securities and federal financing.
Mr. Newman represented Treasury on the President's Working Group on Financial
Markets, which includes the chairs of the Federal Reserve Board, the Securities and
Exchange Commission and the Commodities Futures Trading Commission. He was the
chairman of the Advanced Counterfeit Deterrence Steering Committee, which assessed and
developed security features for the recently introduced new U.S. currency. Mr. Newman
was also a member of the President's Management Council which is responsible for
coordinating programs initiated by the National Performance Review that improve the
efficiency and customer service of the Federal government.
Mr. Newman left Treasury on September 22 to become Senior Vice Chairman and a
director of Bankers Trust New York Corporation.
The first Alexander Hamilton Award was given by Secretary George M. Humphrey
on October 24, 1955. The award, a silver dollar-sized gold medal struck at the U.S. Mint,
depicts Hamilton on one side and has the recipient's name inscribed on the reverse side.
RR 621
-30-
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT
OF
THE
TREASURY
NEWS
TREASURY
~/7~. . . . . . . . . . . . . .. .
................
OFFICE OF PUBUC AFFAIRS. 1500 PENNSYLVANIA AVENUE, N.W.• WASHINGTON, D.C .• 20220. (202) 622-2960
FOR IMMEDIATE RELEASE
October 5, 1995
Contact: Jon Murchinson
(202) 622-2960
DISTRICT OF COLUMBIA REPAYS TREASURY $146.7 MILLION LOAN
The Treasury Department announced today that the District of Columbia has repaid
Treasury $146.7 million borrowed on June 30 for short term cash needs. The Treasury also
completed a loan to the District $96 million for capital projects. The loan includes a
$54 million payment to the Washington Metropolitan Area Transportation Authority.
Treasury is advancing these funds pursuant to the District of Columbia Financial
Responsibility and Management Assistance Act of 1995. The District of Columbia Financial
Responsibility and Management Assistance Authority has approved the loan and certified that
this borrowing is consistent with the city's financial plan and that the District is making
appropriate progress towards meeting its responsibilities under the act. The $96 million loan
is due October 1, 1996 and is fully secured by the District's Federal Payment.
-30RR-622
For press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT
OF
THE
TREASURY
NEWS
TREASURY
~~178~q~. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .
..............................
OFFICE OF PUBUC AFFAIRS - 1500 PENNSYLVANIAA;VENUE, N.W.;- 'rAfHINGTON, D.C. - 20220 - (202) 622-2960
FOR IMMEDIATE RELEASE
October 6, 1995
Contact:
Jon Murchinson
(202) 622-2960
TREASURY RELEASES UNIFORM-PRICE AUCTION STUDY
The Treasury released today the results of its study of uniform-price auctions. The
study entitled "Uniform-Price Auctions: Evaluation of the Treasury Experience," compares
uniform-price auctions, which the Treasury has used to sell two-year and five-year notes since
September 1992, with multiple-price auctions.
The major findings of the study are:
•
Concentration of auction awards has declined under uniform-price auctions,
compared to multiple-price auctions.
•
Awards to the top 10 primary dealers were a smaller portion of total
awards, although primary dealers continued to receive the majority of
awards.
•
Uniform-price auctions have not increased overall participation
significantly.
•
As predicted by auction theory, the uniform-price auction results in a broader
dispersion of yields bid in auctions.
•
While the results of the uniform-price auctions to date are not conclusive, they
suggest that the uniform-price auction technique may result in a marginally
lower borrowing cost to the Treasury.
•
The greater volatility of auction results in uniform-price auctions, relative to
multiple-price auctions, means that there is a high degree of uncertainty that
the Treasury's borrowing cost will be lower in any given auction.
Highlights of the study are attached. The entire 60 page study may be obtained by
calling the Office of Public Affairs, (202) 622-2960.
-30RR-623
Far press releases, speeches, public schedules and official biographies, call our 24-hour fax line at (202) 622-2040
DEPARTMENT OF THE TREASURY
WASHINGTON
HIGHLIGHTS OF THE UNIFORM-PRICE AUCTION STUDY
In September 1992, the Treasury Department began conducting uniform-price auctions
for all 2- and 5-year notes. The use of uniform-price auctions was one of the
recommendations of the Joint Report on the Government Securities Market, issued in January
1992 by Treasury, the Federal Reserve and the Securities and Exchange Commission.
Treasury's purpose in conducting uniform-price auctions is to determine whether they reduce
Treasury's financing costs by encouraging more aggressive bidding for Treasury securities,
and whether they broaden participation in Treasury auctions and reduce concentration of
auction awards.
Uniform-price auctions differ in only one important way from the traditional multipleprice auctions. In multiple-price auctions, successful competitive bidders are awarded
securities at the actual yields specified in their bids. By contrast, in uniform-price auctions,
all successful bidders are awarded securities at a common yield -- the highest accepted yield,
or "stop-out" yield.
The results of the Treasury study indicate that concentration of awards has declined
under uniform-price auctions when compared to mUltiple-price auctions. The data show that
the shares of awards going to the top primary dealers for their own accounts have declined,
while the shares of awards to large customers of primary dealers have increased. However,
the evidence suggests that uniform-price auctions have had a much smaller impact on
increasing overall participation.
The reduced concentrations of awards to the top dealers for their own accounts in part
may be due to the perception that the dealers' informational advantages have diminished with
the adoption of the uniform-price auction technique. However, it is also partly due to
changes in bidding strategies and a broader dispersion of bids under the uniform-price
technique.
The results also suggest that expected revenue to Treasury from uniform-price auctions
is at least as great and probably greater than from multiple-price auctions.
One way to test whether the uniform-price auction technique reduces financing costs
relative to the multiple-price technique is to compare the average spreads between the auction
yields and the contemporaneous when-issued (WI) yields under the two techniques. A
positive spread represents a premium to successful bidders, or alternatively, a reduction in
revenue to Treasury.
Although a direct comparison of the two techniques shows that average spreads of
uniform-price auctions are smaller than the comparable spreads of multiple-price auctions, the
difference is not statistically significant. Thus, on this basis it is not possible to conclude that
there is a difference in expected revenue from the two techniques.
However, by examining the average auction spreads separately and testing whether
each spread is statistically distinguishable from zero, the data show that the average yield
spread is different from zero in multiple-price auctions, whereas there is no similar evidence
for the uniform-price technique. On this basis, expected revenue under the uniform-price
technique is marginally greater than under the multiple-price technique.
The primary reason that the average yield spread in uniform-price auctions is not
statistically different from zero is greater auction-to-auction volatility of results with respect to
the WI market. The greater volatility is partly a result of a broader and more volatile
distributions of bids, and partly a result of the difference in the yield measure used to report
auction results under the two techniques. In multiple-price auctions, an average yield concept
is used, while in uniform-price auctions, the reported yield is not an average, but a marginal
or stop-out yield. An average of a relatively stable set of numbers is inherently less volatile
than the endpoint of another set of numbers that exhibits more variability. Thus, uniformprice auctions may produce greater revenue on average, but present greater uncertainty
regarding revenue at any given auction.
The Department of the Treasury
October 6, 1995
Unifortll-Price Auctions:
Evaluation of the Treasury
Experience
Department of the Treasury
October 1995
Uniform-Price Auctions:
Evaluation of the Treasury Experience
by
Paul F. Malvey
Christine M. Archibald
Sean T. Flynn
Office Of Market Finance
U.S. Treasury
Washington, D. C. 20220
The authors would like to thank Kerry Back, Roger Bezdek, Carlo Cottarelli, Peter
Dattels, Frank Keane, Loretta Mester, Jill Ouseley, Vincent Reinhart, and Suresh
Sundaresan for helpful comments. Any errors, however, remain those of the authors.
Uniform-Price Auctions:
Evaluation of the Treasury Experience
Table of Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,
ES-I
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury Auction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Auction Theory
8
...................................
Empirical Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
24
Evaluation of Treasury Uniform-Price Auctions . . . . . . . . . . . . . . ..
29
Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
56
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
61
Appendix of Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .,
65
III
Uniform-Price Auctions:
Evaluation of the Treasury Experience
Executive Summary
The Treasury's purpose in conducting uniform-price auctions is to determine
whether the uniform-price auction technique reduces the Treasury's financing costs
compared with multiple-price auctions, by encouraging more aggressive bidding by
participants, and whether it broadens participation and reduces concentration of
securities on original issue. Thus, the evaluation has focused on the impact on
revenues and the breadth of initial distribution of awards.
In addition to auction technique, a constellation of other factors also affects
auction results, such as the economic outlook, expectations for movements in absolute
or relative interest rates, and any other factors affecting the portfolio decisions of
dealers and investors. For example, the Treasury auction process has undergone
regulatory and other changes that may also have had an impact on bidding strategies
and trading practices of market participants. The confluence of these and other factors
produces significant auction-to-auction volatility in the data, making it difficult to
isolate the impact of auction technique itself.
Our methodology was to compare auction results and WI market trading
patterns for the 2-year and 5-year notes under the uniform-price and multiple-price
techniques. We then examined whether any differences in performance are consistent
with the purpose of conducting uniform-price auctions and whether the differences are
consistent with the predictions of auction theory.
ES-l
ES-2
Impacts on the Distribution of A wards
Some economists contend that uniform-price auctions will encourage more
bidders to participate in competitive bidding than do mUltiple-price auctions by
reducing the importance of specialized knowledge regarding market demand and the
information costs associated with its collection. A corollary to increased participation
is a reduction in the concentration of awards.
We found no significant change in awards to the primary dealer community as a
whole, but we found statistically significant evidence that the concentration of awards
to the top primary dealers for their own accounts has been reduced. The average share
of awards of 2-year notes to the top five and top ten dealers declined, with the
reductions ranging from about 5 percent to 15 percent. By contrast, the shares to the
top dealers in 3-year and lO-year note multiple-price auctions either remained
essentially the same or increased significantly.
The shares of awards to dealers plus their large customers displayed essentially
the same pattern as awards for dealers' own accounts. Also, awards for large
customers alone increased, from about 17 percent to 25 percent for both the 2-year and
5-year notes, suggesting greater participation by large customers in auctions under the
uniform-price technique. Meanwhile, the shares of awards to customers for 3-year and
IO-year notes did not change significantly.
The reduced concentrations of awards to the top dealers may be attributed to
two interrelated factors. The first is a widening in the overall distribution of auction
bids, as one might expect from auction theory. Under multiple-price auctions, there is
a relatively tight distribution of large bids around the auction average because
successful bidders pay the price actually bid. Under uniform-price auctions, however,
the distribution of bids is much broader because there is no penalty for submitting bids
ES-3
well ahead of the market to ensure supply, unless such aggressive bids in the aggregate
match or exceed the auctioned amount.
The second factor is that the evidence suggests large dealers have changed
bidding strategies, in response to expected wider bid distributions, by splitting bids into
more numerous smaller bids -- some ahead of the market, some at the market, and
some trailing off the market.
The combined effect of the broader distribution of bids and the greater incidence
of bid splitting is that the bids of the larger, usually more aggressive dealers are
increasingly interspersed with the more aggressive bids of other market participants
(particularly large customers) who are trying to ensure supply in an auction. The net
result is that at the margin the share of awards to the top groups of primary dealers has
decreased.
Impact on revenues
The impact of the uniform-price auction technique on revenues is more difficult
to analyze because there is a vast array of factors that affect bidding at Treasury
auctions. Nevertheless, we have directly tested for any differences in expected revenue
from the two techniques, and have examined the empirical results of other researchers
with respect to our own findings.
The most direct way to determine the impact on expected revenue of auction
technique would be to compare average auction yields under the two techniques, and
determine if there is a statistically significant difference.
Our results show that the average spreads of auction yields to WI yields for
uniform-price auctions are smaller than those for multiple-price auctions, but the
ES-4
difference is not statistically significant. On this basis, we are unable to conclude that
there is a difference in expected revenue.
However, by examining the average auction spreads separately and testing
whether each spread is statistically distinguishable from zero, we did obtain statistically
significant results. The data show that the average yield spread is different from zero
in multiple-price auctions, whereas there is no similar evidence for the uniform-price
technique. On this basis, expected revenue under the uniform-price technique is
marginally greater than under the multiple-price technique.
The primary reason for the lack of a statistically significant difference between
auction yields and WI yields under the uniform-price auction technique is greater
auction-to-auction volatility of the results with respect to the WI market. The greater
volatility is partly a result of the broader and more volatile distributions of bids, and
partly a result of the difference in the yield measure used to report auction results
under the two techniques. In multiple-price auctions, an average yield concept is used,
while in uniform-price auctions, the reported yield is not an average, but a marginal or
stop-out yield. An average of a relatively stable set of numbers is inherently less
volatile than the endpoint of another set of numbers that exhibits more variability.
Thus, uniform-price auctions may produce greater revenue on average, but present
greater uncertainty regarding revenue at any given auction.
Uniform-price Auctions:
Evaluation of the Treasury Experience
Introduction
One of the recommendations of the Joint Report on the Government Securities
Market l was that the Treasury consider alternatives to the sealed-bid auction technique
for auctioning Treasury securities. After an extensive review of the issues, the
Treasury announced on September 3, 1992, that it would conduct a uniform-price
auction experiment for all auctions of 2-year and 5-year notes.
The uniform-price technique differs in only one important way from the
mUltiple-price auction technique that the Treasury has been using to issue notes and
bonds since the 1970s. In the traditional format, competitive bids state the amount and
yield desired and are ranked from the lowest to the highest yield. Awards are made at
successively higher yields until the amount allotted for competitive tenders is fulfilled,
with awards at the highest yield prorated. The process for the uniform-price auctions
is identical except that, instead of awards being made at the individual yields stipulated
by the bidders, all accepted bids are filled at the highest yield of accepted competitive
tenders.
The purpose of using uniform-price auctions for the 2-year and 5-year notes is
to determine whether the alternative auction technique results in reducing the
Government's financing costs by encouraging more aggressive bidding by participants,
Joint Report on the Government Securities Market. Washington, D.C., Government
Printing Office, 1992.
I
1
2
and whether it results in broader participation and reduced concentration of securities
on original issue.
The remainder of this paper is divided into five parts: an overview of the
Treasury auction process; a summary of the results of auction theory, particularly as
they apply to the Treasury market; a review of the empirical work related to the
auctioning of Treasury securities; an analysis of the results of the uniform-price
auctions thus far; and a summary and conclusions.
I. Treasury Auction Process
Total Treasury debt amounted to $4.9 trillion on October 1, 1995, including
$3.3 trillion of marketable securities held by private investors. 2 The Treasury has
auctioned large amounts of marketable Treasury securities in the past ten years. In
fiscal year 1985, the Treasury sold less than $1.2 trillion of marketable Treasury
securities. By fiscal year 1995, this figure had increased to over $2.2 trillion.
Marketable Treasury securities
The Treasury issues three types of marketable securities -- bills, notes, and
bonds. They are commonly known as marketable securities because they can be bought
and sold in the secondary market at prevailing prices through financial institutions,
brokers, and dealers in government securities.
The rest of the public debt is comprised of nonmarketable Treasury securities
(including those issued directly to federal trust funds), United States savings bonds, state and
local government series securities, and marketable securities held by federal government
accounts and the Federal Reserve System.
2
3
Treasury bills are short-term securities, with original-issue maturities of 13, 26,
or 52 weeks. The 13- and 26-week bills are auctioned weekly, while 52-week bills are
auctioned every four weeks. Bills are issued at a discount from face value (par amount)
and are redeemed at their face value at maturity.
Treasury notes have fixed maturities of more than 1 year and not more than 10
years. They are issued with a stated rate of interest, earn interest semiannually, and
are redeemed at par at maturity. The Treasury currently offers notes with originalissue maturities of 2, 3, 5, and 10 years. The 2- and 5-year notes are issued once a
month, and 3- and IO-year notes are issued once a quarter.
Treasury bonds are long-term securities with fixed maturities of more than 10
years. As with notes, bonds are issued with a stated rate of interest, earn interest
semiannually, and are redeemed at par at maturity. Until May 1993, 30-year bonds
were offered once a quarter along with the 3-year and IO-year notes. Since then, the
Treasury has sold bonds in two offerings each year, in mid February and mid August.
Evolution of Treasury rmancing techniques
The Treasury has employed multiple-price auctions for Treasury bills since they
were introduced in 1929. Since then, the only major modifications to bill auctions
have been a provision for noncompetitive bids in 1947 and a change in 1983 to
receiving bids on the basis of yield (bank discount basis) rather than price.
Prior to the early 1970s, the traditional methods for selling notes and bonds
were subscription offerings, exchange offerings, and advance refundings. Subscriptions
involved the Treasury setting an interest rate on the securities to be sold and then
selling them at a fixed price. In exchange offerings, the Treasury would allow holders
of outstanding maturing securities to exchange them for new issues at an announced
price and interest rate (coupon rate). In some cases, new securities were issued only to
4
holders of the specific maturing securities; in others, additional amounts of the new
security would be issued. Advance refundings differed from exchange offerings in that
the outstanding securities could be exchanged before their maturity date. A
fundamental difficulty with subscription offerings was that market yields could change
between the announcement of the offering and the deadline for subscriptions. Increased
market volatility in the 1970s made fixed-price subscription offerings very risky for the
Treasury.
A multiple-price auction technique for notes and bonds had been introduced in
1970, in which the interest rate was still preset by the Treasury, and bids were made
on the basis of price. Setting the coupon rate in advance, however, still involved
forecasting interest rates, with the risk that the auction price could vary significantly
from the par value of the securities. In 1974, the Treasury started to conduct multipleprice auctions for coupon issues on a yield basis. Bids were accepted on the basis of
an annual percentage yield, with the coupon rate based on the weighted average yield
of accepted competitive tenders received in the auction. Yield auctions freed Treasury
from having to set the coupon rate prior to the auction and ensured that the interest
costs of new note and bond issues would accurately reflect actual market demand and
supply conditions at the time of the auction.
A uniform-price auction technique was used in six auctions of long-term bonds
in Treasury mid-quarter refundings between February 1973 and May 1974. The
coupon rate was preset by the Treasury and bids were accepted in terms of price,
starting with the highest price and moving through successively lower prices until the
offering had been fully placed. All successful bidders were awarded securities at the
lowest price of accepted bids. The results of this experiment were inconclusive and
will be addressed later.
5
Current auction techniques
Today, all Treasury marketable securities are sold in auctions and all Treasury
auctions are conducted on a yield basis. The Treasury has a regular, predictable
schedule for offering marketable securities, which is well known to market participants.
The details are usually announced about one week prior to an auction, and the
settlement date occurs from a few days to about one week after an auction, depending
upon holidays and other vagaries of the calendar.
The Treasury sells the entire announced amount of each security offered at the
yield or yields determined in the auction. It does not set a maximum acceptable yield
(minimum price), nor does the Treasury add to or reduce the announced size of an
offering after the offering is announced. 3
The Treasury accepts competitive and noncompetitive bids at auctions.
Noncompetitive bids are accepted from the public for up to $1 million of Treasury bills
and up to $5 million of notes and bonds. All noncompetitive bids are awarded in full
at the auction yield determined by the competitive bidders. The ability to bid on a
noncompetitive basis ensures that small investors, who may not have current market
information, can purchase securities at a current market yield. Noncompetitive bidding
eliminates the risk that a prospective investor might bid a yield that is too high and not
obtain the securities desired or might bid a yield that is too low and potentially pay too
much for the securities.
Competitive bidders submit tenders stating the yield (discount rate for bill
auctions) at which the bidder wants to purchase the securities. The bids are ranked
from the lowest yield to the highest yield required to sell the amount offered to the
The only exception is to add awards to foreign official accounts that are held in
custody at the Federal Reserve Bank of New York.
3
6
public. In the multiple-price auction technique, awards are made at successively higher
yields until the amount allotted for competitive tenders is fulfilled, with awards at the
highest yield prorated. Successful competitive bidders pay the price eQuivalent to the
yield that they bid. In an auction of Treasury notes or bonds, the coupon rate is based
on the average yield of accepted competitive bids.
The process for a uniform-price auction is identical except that, instead of
competitive awards being made at the individual yields specified by the bidders, all
accepted bids are filled at the highest yield of accepted competitive tenders.
When-issued market
Market participants can begin trading Treasury securities as soon as the details
of an issue have been announced. From the time of the announcement until the
securities are issued, usually a period of about a week and a half, the issue is said to
trade on a "when, as, and if issued" (WI) basis.4 Prior to auctions, WI securities are
quoted for trading on a yield basis because a coupon is not determined until after an
auction is completed. After auctions, they are quoted on a price basis.
The when-i
@FedFRASER