Full text of Treasury Bulletin : June 1990
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Contents
SPRING ISSUE, JUNE
TREASURY ISSUES
.
1990
.
Page
DOMESTIC FINANCE
Issues
in
the Securities
3
and Futures Markets.
TAX POLICY
Trends
in
7
Corporate Tax Receipts
9
Abstracts of Recent Taxation Studies
.
TREASURY ISSUES INDEX
11
FINANCIAL OPERATIONS
FEDERAL FISCAL OPERATIONS
Analysis. --Budget results for the
FFO-1 .-Summary
second quarter,
fiscal
1990
of fiscal operations
Chart.-Monthly receipts and outlays
FFO-2 -On-budget and off-budget
receipts by source
Chart.-Budget receipts by source
FFO-3.-On-budget and off-budget outlays by agency
19
21
22
23
25
26
FEDERAL OBLIGATIONS
class
FO-1 -Gross obligations incurred within and outside the Federal Government by object
or
agency
department
by
Government
Federal
the
outside
incurred
obligations
FO-2.-Gross
28
Chart-Gross Federal obligations; gross Federal obligations incurred outside the Federal Government
31
TREASURY
ACCOUNT OF THE
U.S.
UST-1 -Elements
changes
of
29
in
Federal Reserve and tax and loan note account balances
32
FEDERAL DEBT
FD-I.-Summary
of Federal debt
35
FD-2. -Interest-bearing public debt
FD-3.-Government account series
FD-4. -Interest-bearing securities issued by Government agencies
private investors
FD-5.-Maturity distribution and average length of marketable interest-bearing public debt held by
37
38
FD-6.-Debt subject to statutory limitation
Chart— Average length of the marketable debt
Chart -Private holdings of Treasury marketable debt by maturity
FO-7 -Treasury holdings of securities issued by Government corporations and other agencies
TREASURY FINANCING OPERATIONS
''I
^^
III
IV
Contents
Page
PUBLIC DEBT OPERATIONS
PDO-1
-Maturity schedule of interest bearing marketable public debt securities other than regular
Treasury
PDO-2.-Offering of
PDO-3. -Public
46
52
bills
offerings of marketable securities other than regular
PDO-4. --Allotments by investor classes
U.S.
weekly and 52 week
outstanding
bills
for public
weekly Treasury
54
bills
57
marketable securities
SAVINGS BONDS AND NOTES
SBN-1 .-Sales and redemptions by
SBN-2. -Sales and redemptions by
SBN-3. -Sales and redemptions by
59
series, cumulative
period,
all
series of savings
period, series E, EE, H,
bonds and notes combined
59
and HH
60
OWNERSHIP OF FEDERAL SECURITIES
OFS-1
-Distribution of Federal securities by class of investors
and type
62
of issues
63
OFS-2. -Estimated ownership of public debt securities by private investors
H/IARKET YIELDS
MY-1 -Treasury market bid yields at constant maturities: bills, notes, and bonds
Chart— Yields of Treasury securities
MY-2 -Average yields of long-term Treasury, corporate, and municipal bonds by period
Chart— Average yields of long-term Treasury, corporate, and municipal bonds
65
66
67
68
FEDERAL AGENCIES' FINANCIAL REPORTS
FA-1 -Direct and guaranteed loans
70
Chart -Direct and guaranteed loans
73
INTERNATIONAL STATISTICS
INTERNATIONAL FINANCIAL STATISTICS
77
IFS-1 -U.S. reserve assets
I
FS-2. -Selected U.S.
liabilities to
78
foreigners
IFS-3.-Nonmarketable U.S. Treasury bonds and notes issued
I
FS-4— Trade-weighted
to official institutions
index of foreign currency value of the dollar
and other residents
of foreign countries
78
79
CAPITAL MOVEMENTS
LIABILITIES
CM-l-1
Chart
TO FOREIGNERS REPORTED BY BANKS
IN
THE UNITED STATES
82
-Total liabilities by type of holder
83
-Liabilities to foreigners
84
CI\1-l-2. -Total liabilities
by type, payable
GM-l-3.-Total
liabilities
by country
85
CM-l-4. -Total
liabilities
by type and country
86
in
dollars
CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN
THE UNITED STATES
CM-ll-1. -Total claims by type
87
Chart -Claims on foreigners
88
CM-ll-2.-Total claims by country
89
Contents
Page
CM-ll-3. -Total claims
on foreigners by type and country reported by banks
in
the United States
SUPPLEMENTARY LIABILITIES AND CLAIMS DATA REPORTED BY BANKS
CM-lll-1 .-Dollar claims
CM-lll-2.-Dollar
IN
90
THE UNITED STATES
on nonbank foreigners
liabilities to,
and
91
dollar claims on. foreigners
in
countries
and areas not
regularly reported separately
AND CLAIMS ON, FOREIGNERS REPORTED BY NONBANKING BUSINESS ENTERPRISES
THE UNITED STATES
LIABILITIES TO,
92
IN
CM-IV-1. -Total
liabilities
and claims by type
93
CM-IV-2. -Total
liabilities
by country
94
CM-IV-3.-Total
liabilities
by type and country
95
CM-IV-4.-Total claims by country
96
CM-IV-5.-Total claims by type and country
97
TRANSACTIONS IN LONG-TERM SECURITIES BY FOREIGNERS REPORTED BY BANKS AND BROKERS
THE UNITED STATES
CM-V-1 .-Foreign purchases and sales
CM-V-2— Foreign purchases and sales
CM-V-3— Net foreign
transactions
in
of long-term
IN
domestic securities by type
of long-term foreign securities
98
by type
98
long-term domestic securities by type and country
Chart.-Net purchases of long-term domestic securities by selected countries
99
100
CM-V-4. -Foreign purchases and sales
of long-term securities,
by type and country
101
CM-V-5. -Foreign purchases and sales
of long-term securities,
by type and country
1
02
FCP-l-1 -Nonbanking firms' positions
1
04
FCP-l-2. -Weekly bank positions
104
FOREIGN CURRENCY POSITIONS
SUMMARY POSITIONS
CANADIAN DOLLAR POSITIONS
FCP-ll-1. -Nonbanking firms' positions
105
FCP-ll-2 -Weekly bank positions
105
GERMAN MARK POSITIONS
FCP-lll-1. -Nonbanking firms' positions
106
FCP-lll-2. -Weekly
106
bank positions
JAPANESE YEN POSITIONS
FCP-IV-1
-Nonbanking
firms' positions
FCP-IV-2 -Weekly bank positions
107
107
SWISS FRANC POSITIONS
FCP-V-1 -Nonbanking
firms' positions
FCP-V-2. -Weekly bank positions
108
108
STERLING POSITIONS
FCP-VI-1 -Nonbanking
firms' positions
FCP-VI-2. -Weekly bank positions
109
1
09
VI
Contents
Page
U.S.
DOLLAR POSITIONS ABROAD
FCP-VII-1 .-Nonbanking firms' foreign subsidiaries' positions
110
FCP-VII-2. --Weekly bank foreign office positions
110
EXCHANGE STABILIZATION FUND
113
ESP- 1. -Balance sfieet
ESF-2— Income and expense
113
SPECIAL REPORTS
U.S.
CURRENCY AND COIN OUTSTANDING AND
IN
CIRCULATION
Notes
Details offigures
may
r represents Revised,
not
add
to totals
p Preliminary,
because of rounding.
n.a.
Not available.
119
VII
Nonquarterly Tables and Reports
For the convenience of the Treasury
with the issues in which they
Bulletin user, nonquarterly tables
and
reports are listed below along
appear
Issues
Winter
Spring
Summer
Fall
Federal Fiscal Operations
FFO-4. --Summary
Capital
of internal
revenue collections by States and other areas
.
.
v
Movements
CM-lll-2— Dollar
liabilities to,
and
dollar claims on. foreigners in countries
and
V
areas not regularly reported separately
V
Special Reports
V
Consolidated Financial Statements of the United States Government
Statement
States
Trust
of Liabilities
and Other Financial Commitments
Government
of the United
v
Fund Reports:
Airport
and airway
Asbestos
trust
trust
V
fund
fund
V
Black lung disability trust fund
Civil
and
service retirement
"V
disability
fund
Federal disability insurance trust fund
Federal hospital insurance trust fund
Federal old-age and survivors insurance trust fund
Federal supplementary medical insurance
Harbor maintenance
trust
trust
fund
V
fund
Hazardous substance superfund
v
Highway
V
Inland
trust
fund
waterways
trust
fund
v
Leaking underground storage tank
National service
life
trust
fund
v
insurance fund
Nuclear waste fund
v
V
Railroad retirement account
V
Reforestation trust fund
Unemployment
Investments
trust
fund
of specified trust
accounts
V
•,!*'*
P-.'*
V>-^_^^Fr
TREASURY ISSUES
Issues in the Securities
and Futures Markets
Robert R. Glauber
Thank you for this opportunity to discuss the Treasury
Department's views on regulatory fragmentation and related
issues in the securities and futures markets. We continue to
believe that
is important to increase investor confidence
disruptions,
and promote innovation in our financial markets. This means
necessary steps to reduce the chances of major
reducing
while
streamlining
and
market disruptions,
•
it
rules,
can
interact to create
a major financial disruption.
These events, along
with other instances of major market
appear to have contributed to declining investor
participation and capital formation in the United States:
taking
regulation.
As Secretary Brady has
said
many
times, whatever steps
take must include the recognition that securities and
believe the
derivative markets are really one market.
financial community already recognizes this fact, as do
regulators in other countries. The question is whether our
regulatory structure needs change in order to recognize this
fact as well--whether integrated markets require some form
we
I
of unified regulation,
and whether
Initial public offerings (IPOs) have plummeted since the
1987 market break. After peaking at $18 billion in 1986, IPOs
raised only about $6 billion a year in 1988 and 1989.
this will result in additional
•
Equity offerings as a percentage of new funds raised
domestically has fallen off dramatically. In the early 1980s,
equity accounted for about 30-50 percent of all public new
issues, but the share dwindled to only 10 percent
in
1989.
•
The percentage of stock outstanding held by individuals
has declined from 84 percent in 1965 to 55 percent in 1989.
progress on key intermarket issues.
•
The Treasury Department believes the answer
this
to
preeminence of our
enhance investor confidence. As you know,
the President's Working Group on Financial Markets, whose
question
is
yes, both to preserve the
markets and
members
in
options, futures,
and stocks
is
off
1987 market break.
to
here today, has discussed this issue. This is
only appropriate, since the very purpose of the Working
Group is to address intermarket issues, and regulatory
fragmentation is obviously central to the question of
are
Trading volume
substantially from levels that prevailed before the October
all
we are to bring investors back into our markets to stay,
we must renew their confidence that market mechanisms are
If
operating efficiently; that markets are
they are
still
fair,
not rigged; that
a safe place to invest; and that regulation
is
effective.
intermarket coordination.
These discussions have proved extremely useful in
Group members of each other's concerns.
Need
to
Avoid Overreaction
informing Working
is much common ground, and the discussions should
continue on this and related intermarket issues in order to
promote continued understanding and cooperation. Of
course, the Working Group is not and was never intended to
be a single agency with a single viewpoint.
at the outset, there are a number of ways
achieve these results. But it is imperative to avoid
As mentioned
There
to help
overreaction that
will stifle
innovation.
For example, the Treasury Department shares many of
been expressed about problems
associated with excessive market volatility. But we completely disagree with those who suggest that the solution is
the concerns that have
Therefore, my testimony today reflects the views of the
Treasury Department, just as am sure that the testimony of
my colleagues will reflect their views.
I
Let me begin with a description of one of the fundamental
problems that need to be addressed, the concern that major
market disruptions are sapping investor confidence, and
discuss certain well-publicized "solutions" that we reject. will
conclude with specific suggestions for more unified regulation, which will address the key issues of competitiveness
I
and enforcement as
well.
to
outlaw financial futures or ban program trading.
markets are one of our country's
and innovative financial resources. Any attempt to
outlaw such futures or to regulate them to a point where they
cease to serve an economic purpose would be a grave
mistake. Not only is there little evidence that futures
contracts have had any negative effect on the economy, but
we believe their use has helped keep our cost of capital
lower than otherwise would be.
The
most
financial futures
vital
it
Need
to
Enhance Investor Confidence
The linkage among
and stock
October
1987 and October 1989. Both days demonstrated dramatistocks,
stock options,
index futures directly affected the market breaks
cally
how these
markets,
all
operating by their
in
own
sets of
777/s
was testimony by
for Finance, Inarch 29,
Securities
Affairs
of the
Committee.
the
Under Secretary of the Treasury
1990, before the Subcommittee on
Senate Banking,
Housing,
and Urban
DOMESTIC FINANCE
Instead of attempting to
to find better
ways
limit
to integrate
the use of futures,
them
we need
this legislation.
"one market" so
into the
do not destabilize the system. A more integrated
framework,
believe, will help avoid major
disruptions and help make our financial system more stable,
efficient, and competitive.
Nevertheless, as important as this legislation
that they
regulatory
I
not address the key intermarket issue, which
is
is,
it
does
regulatory
In the past we have tended to focus too
narrowly on discrete intermarket issues. Instead, we need to
embrace a unified regulatory framework to promote innova-
fragmentation.
and competitiveness; to deal with enforcement
problems; and to coordinate market mechanisms to avoid
major market disruptions. These goals are extremely
important but difficult to accomplish in our currently
balkanized system.
tion
we continue
oppose program trading restrictions as overly broad
and potentially harmful.
.
.
.
to strongly
We
believe that progress on
some form
of
unified regulation.
all these issues requires
Since securities and their
really comprise one market, this only makes
sense. How can we really expect to make substantial
progress our right hand does not always know what our left
is doing, and can do very little about
even when it does?
derivatives
Likewise, the Treasury Department has repeatedly stated
view that the blunt approach of Government intervention
to stop program trading is an inappropriate way to address
problems of excessive market volatility. Rather than trying to
restrict particular trading strategies, it would be far better to
focus on the fundamental mechanisms of the individual
markets and the inconsistency of intermarket regulation that
can themselves engender unnecessary volatility.
its
to restrict program trading, like the one
approved by the House Energy and Commerce
Committee, represent a fragmented approach that itself
could be disruptive. Because this type of provision would
apply only in the stock market,
could promote ad hoc
responses to market turmoil that would create additional
uncertainty, which in turn could actually destabilize markets
because of the lack of coordination.
Provisions
recently
if
it
The other countries with major securities markets do not
fragment their regulation this way. Japan, the United
Kingdom, and France, which together with the United States
account for 90 percent of global futures trading, recognize
the "one market" reality--each country assures that regulation of stocks, options, and futures is coordinated by a single
regulator. Yet here in the United States, by reason of
historical accident, the Securities
and Exchange Commission
regulates stocks and stock options, while the
Commodity
Futures Trading Commission regulates stock index futures.
it
Indeed, the uncertain application of restrictions on trading
strategies could simply drive market participants to foreign
markets to execute the stock side of program trades. This
would directly reduce the competitiveness of U.S. markets.
Accordingly we continue to strongly oppose program trading
restrictions as overly broad and potentially harmful. Instead,
we believe that Senator D'Amato's amendment to the Market
Reform bill, which would require the SEC to report on the
adequacy of its current authority to protect against market
manipulation or fraud caused by program trading, is a more
constructive approach.
The Need
to Addres.s
Regulatory Fragmentation
While banning futures or program trading is not the right
approach to addressing intermarket problems, other steps
can and should be taken. One is the enactment of S.648,
"The Market Reform Act of 1989," which is clearly a step in
the right direction.
The recent collapse
of
Drexel
Lambert Group only underscores the need
company
for
Burnham
two
of the
and
improve the clearance and settlement system.
Similarly, the market breaks of October 1987 and October
1989 demonstrated the need for timely reporting of large
trader transactions. We continue to urge prompt action on
bill's
provisions,
measures
to
holding
risk
fragmented system, we stand to gain
enforcement, coordinated
market mechanisms, and globalization.
By
integrating our
significant benefits in innovation,
Innovation. -\n the past, fragmented regulation sometimes
promoted innovation. Competition between Chicago and
New York markets spurred new product development, while
the practices of different regulators often promoted diversity,
experimentation, and creativity.
But regulatory competition also begets jurisdictional
squabbles, which can strangle innovation. New products are
not merely stifled; they quickly move to overseas markets.
is demonstrated only too well by the recent skirmish
over a new "hybrid" product called index participations. The
battle over whether it is a stock or a futures product continues to rage in our courts. Meanwhile, trading of the new
product has stopped in the United States and begun in
Toronto, with London soon to follow.
This
My point is this: with the globalization of financial
markets, other countries have provided us all the regulatory
we need. We can no longer afford intramural
squabbling that stifles innovation at home and drives
important business overseas.
competition
reporting
Enforcement.-Un\i\ed
enhance enforcement
regulation
would
substantially
efforts to stop intermarket violations.
Like State troopers who are forced to stop at the State
when chasing lawbreakers, today the SEC and CFTC
line
are
DOMESTIC FINANCE
prevented from dealing effectively with intermarket
such as manipulation and frontrunning. While
progress has been made, there is still no universally
accepted definition of illegal frontrunning, and substantial
gaps remain in our capacity to detect and deter cross-market
often
abuses
to move toward more unified regulation as the umbrella
under which specific intermarket issues can be much more
easily resolved. The result will be more streamlined and
need
efficient regulation.
abuses.
In
the past
we have tended
In short, with our current system it is simply too easy for
intermarket abuses to slip through the cracks because of the
dispersion of regulatory responsibility. Integrated regulation
would enhance surveillance, facilitate intermarket rulemaking, and promote accountability.
to focus too narrowly
on
problems. This has been
only partly successful, and it would be a mistake to continue
solely down this path. The Market Reform Act, harmonized
margins, and jurisdiction over new products are each
important issues that need addressing. But they are all
pieces of a systemic problem that requires a systemic
piecemeal solutions
to particular
solution.
Market mechanisms. -Secrelary Brady has often cited the
problems created by conflicting rules applying to fundamental
market mechanisms, including unharmonized margin
requirements, uncoordinated circuit breakers, inconsistent
short selling rules, and discrete clearance and settlement
systems. Taken together, they foster excessive volatility,
heighten risk, and drive investors away from markets.
For example, low futures margins indirectly permit high
in stocks. This leverage creates the potential for
major market disruptions, starling in the futures market and
washing back to the stock market. The active use of this
leverage has the potential, when concentrated in short
periods of time, to punch a hole in the fabric of the market.
By
integrating our fragmented system,
we
stand to gain significant benefits in
innovation, enforcement, coordinated
market mechanisms, and globalization.
leveraging
Likewise, uncoordinated circuit breakers and clearance
and settlement systems can risk major market disconnections. Coordinating these and other market mechanisms
demands a more unified approach.
Globalization. -Ihe
toward globalization of
have already
financial markets has now been recognized.
discussed how this overseas competition demands that the
United States take the steps necessary to foster domestic
innovation. But
also requires viewing interrelated domestic
markets in a global context and speaking with one voice to
our foreign counterparts.
clear
trend
I
Obviously, the broadest solution would be to merge the
and the CFTC. This would make our regulatory system
similar to our major foreign competitors. N^oreover, by
unifying all regulation we could address not only the
SEC
intermarket issues
bound
Brady,
testifying
before
the
full
Banking
recognize, but
new ones
that are
derivatives to unified regulation of stock-related products.
We
minimum course
to unify regulation of stocks, stock options,
would be
and stock index
agency with the greatest
overall expertise
believe that the
futures under the
of action
combination of these products, the SEC. Margin
authority over each of these products would also require
consolidation in a single regulator. In addition, it is imperative
that we end the jurisdictional disputes over the regulation of
new products that simply drive them to overseas markets
(this would require elimination of the "exclusivity" clause in
the Commodity Exchange Act, which currently requires
exclusive CFTC regulation of any instrument that has any
element of iuturity").
in
Secretary
we now
as innovation continues.
A different solution would be to unify regulation of those
markets that are particularly connected. This could range
from unified regulation of all financial products and their
it
Committee last October, described the growing interdependence of the world's financial markets and supported the
idea of identifying particular issues where an international
and intermarket approach would be useful. Integrating "one
market" regulation in the United States would obviously
facilitate the process. In addition, integrated regulation would
enable us to deal more effectively with foreign governments
by speaking in a unified and consistent way.
to arise
the
minimum solution would deal comprehensively with
most prominent problems we now face. Moreover,
because index futures are only a small percentage of the
would not be a radical
transactions regulated by the CFTC,
departure from the existing regulatory scheme.
This
the
Recommended
Solutions
it
what we now have is a single market with
uncoordinated and even conflicting regulation. That may
have created benefits in the past when markets were less
connected and overseas competition was minimal. But now
creates problems, as have just described.
In
short,
it
I
The
solution
to put in place.
is
not complicated, though
We
do not need more
it
may be
regulation. But
difficult
we do
Indeed, we believe that any more limited approach will
only delay the resolution of intermarket problems that must
be addressed. Indeed, if this minimum approach cannot be
accomplished soon, it seems very likely that we would be
forced to adopt a complete merger approach at a later time
DOMESTIC FINANCE
in
doing a good job under difficult circumstancesadministering a scheme of regulation that simply is not
designed for the unified marketplace they are expected to
regulate. We believe the answer is a coherent regulatory
structure that can deal effectively with unified markets.
response to new major market disruptions.
are
Conclusion
In
conclusion,
tlie
benefits of
unified
regulation
are
want to
While we embrace this approach,
emphasize our belief that today's problems do not come
from the regulators themselves. Both the CFTC and the SEC
substantial.
I
Resolving regulatory fragmentation
key
confidence,
which
is
a
competitiveness.
will
to
promote investor
our
long-term
v
Trends
in
Corporate Tax Receipts
Harvey
am
I
views
pleased to have
of the administration
present the
corporate tax
this opportunity to
on recent trends
in
receipts.
S.
Rosen
decrease. During the 1982-83 recession, for example,
corporate taxes as a percentage of total receipts fell from
10.2 percent in 1981 to 6.2 percent in 1983. A significant
portion of this decline
corporate
INTRODUCTION
$178
Since its inception in 1913, the corporate income tax has
generated a sizable share of total U.S. tax receipts. As the
committee has requested, my remarks today focus principally on the trend in corporate tax receipts, the importance
of the corporate tax in other countries,
Tax Reform Act
of
1
986 on corporate
and the
effect of the
tax receipts.
was
attributable to the
from $202 billion
1982 and 1983.
profits,
billion in
in
fall
in
pretax
1981 to an average
of
most recent estimates indicate that the
1986 act will increase corporate tax
receipts by $140 billion over the 1987-91
.
.
.
period.
History of Corporate Income
Tax Receipts
In 1989, the corporate income tax produced $104 billion
revenue for the U.S. Government. The $104 billion was
the most revenue ever produced by corporate taxes and
represented the sixth consecutive annual increase in
in
corporate tax receipts. In general, corporate tax receipts
have increased over the past 40 years. In the 1950's,
corporate tax receipts averaged $19 billion per year; in the
1960's, $26 billion per year; in the 1970's, $38 billion per
year; and from 1980 to 1986, $56 billion per year. Since
1986, corporate tax receipts have averaged $94
billion
per
Corporate Taxes
Because
systems,
The longrun increase
similar
to
the double tax on
corporate taxes occurred even
as a percentage of gross
national product (GNP) fell sharply. In the mid-1 950's, when
corporate taxes were at their peak as a percentage of total
Federal tax receipts, pretax corporate profits were about 1
percent of GNP; by 1986, this percentage had fallen to 5.1
percent.
Although the level of Federal corporate receipts rose
from the mid-1 950's to 1986, they fell as a percentage of
1986, the declining trend in the
relative importance of the corporate tax has been reversed.
From 1987 to 1989, corporate taxes accounted for an
increasing share of total tax receipts. In 1989, corporate tax
receipts.
total
But,
since
receipts accounted for
which
trend
10.5 percent of total tax receipts,
the highest percentage since 1980. We expect this
to continue into the future. By 1995, we expect
is
corporate tax receipts to account for
1
1.4 percent of total tax
receipts.
It
is
receipts
important to note that the level of corporate tax
depends heavily on the strength of the U.S.
economy. When the U.S. economy
is
growing, as
it
the
recession, corporate profits tend to
fall,
differences, foreign
U.S.
tax
system.
have
Others
among
distributed
tax
corporate earnings.
systems make
it
all
of
These
difficult to directly
tax burdens across countries. Nonethe-
general observations.
1987, corporate income taxes accounted for an
of 8 percent of total tax receipts for the 22 countries
in the Organization for Economic Cooperation and Development (OECD) for which we have data. The data pertain to
corporate taxes at both the central government and local
levels. Comparisons of corporate tax receipts for central
governments only would be misleading because some
countries have much greater corporate taxation at the local
In
average
level
than others.
Although U.S. corporate taxes as a percentage of total
was 8 percent in 1987, the same as the average
for the 22 OECD countries, the U.S. percentage will be
current trends continue.
higher in subsequent years
Countries that were above the OECD average in 1987
include Japan at 23 percent, the United Kingdom at 1
percent, and Italy at 1 1 percent. Countries that were below
the average include Germany at 5 percent, France at 5
percent, and Switzerland at 6 percent.
tax receipts
if
has been
past 7 years, corporate profits are strong, and
corporate tax receipts increase. But when the economy is in
for
the
we can make some
less,
in
profits
historical
integrated tax systems, which generally relieve pari or
compare corporate
though pretax corporate
and
cultural
of
countries have a wide variety of tax systems. For example,
some countries have separate individual and corporate tax
differences
year.
Foreign Countries
in
and corporate taxes
These were remarks by the Deputy Assistant Secretary, May
1990, before the Senate Finance Committee.
3,
TAX POLICY
In 1980, corporate income taxes also accounted for 8
percent of total tax receipts in the 22 OECD countries. Thus,
there does not appear to be any general trend toward
increased or decreased reliance on corporate taxes among
OECD countries.
1986 act
most recent estimate
indicates that the numerous positive and negative provisions
of the 1986 act sum to a total change in receipts of less than
testified in
1
February, for
been
has
revenue
percent over the
1
all
practical purposes, the
neutral.
Our
987-91 period.
act was also expected to increase corporate
and lower individual receipts as a percentage of
total income tax receipts. This has also occurred. The
percentage of income tax receipts accounted for by corporate taxes increased from 15 percent in 1986 to 19
percent in 1989; correspondingly, the percentage accounted
for by individual taxes fell from 85 percent to 81 percent.
The 1986
The Tax Reform Act
of 1986
tax receipts
The Tax Reform Act of 1986 (1986 act) made significant
changes to the corporate tax system. These changes were
expected to increase corporate tax receipts significantly. Our
most recent estimates indicate that the 1986 act will increase
corporate tax receipts by $140 billion over the 1987-91
period.
CONCLUSION
Corporate Changes
In the
1986 Act
summary,
In
The
designed
1986
act
adopted
to increase the overall level of
taxes, even though the
measures
corporate income
base-broadening
maximum
marginal tax rate
was
reduced from 46 percent to 34 percent. The corporate tax
base broadening was accomplished primarily by repealing
the investment tax credit, limiting depreciation deductions,
restricting the use of net operating losses, enacting the
corporate alternative minimum tax, and adopting important
changes in accounting rules; for example, by requiring
uniform capitalization of certain expenditures.
act also made three changes that affect the
corporations and their shareholders and the
desirability of operating in the corporate form: (1) the relative
relationship of the top individual and corporate tax rates was
reversed, with corporations now subject to a higher marginal
The 1986
taxation
of
tax rate than
most
individuals; (2) the preference for both
corporate and individual capital gains was eliminated; and
(3) the so-called general utilities doctrine was repealed.
Tax Receipts
•
The Tax Reform Act
act
was expected
to
most
neutral.
As we
recent
trends
in
•
in
of the
the
relative
of
1986 reversed a long-term
importance
budget period.
The 1986
act
has been revenue neutral because
individual tax receipts are higher than expected.
•
Lower than expected corporate
in
profits explain
much
of
corporate tax receipts.
the 1986 act was revenue neutral and sigincreased corporate tax receipts both in absolute
terms and as a proportion of all income tax receipts.
In
be revenue
characterize
of corporate taxes in
producing revenues for the U.S. Government. The share of
total taxes paid by corporations has been steadily rising
since 1986. This trend is expected to continue throughout
decline
short,
nificantly
The 1986
would
•
Corporate tax receipts forecasts made by both the
Treasury and the Congressional Budget Office following the
enactment of the 1986 act exceeded actual corporate tax
receipts by between $20 billion and $25 billion per year for
the 1987-89 period.
the underestimate
Effect on Corporate
I
corporate tax receipts as follows:
Abstracts of Recent Taxation Studies
Financing Health and Long-Term Care
The Treasury report, "Financing Health and Long-Term
Care," analyzes a variety of existing and proposed tax measures related to the financing of health and long-term care.
The report contains no specific recommendations, but instead presents for further consideration and analysis various
financing options. The options include adjusting pension,
and individual retirement account payments for
long-term care contingencies; clarifying the tax treatment of
annuity,
employers' contributions to prefund long-term care insurance
and of distributions from these policies; limiting the employee
exclusion or employer deduction for employer-provided
health insurance; providing a credit to families who do not
have employer-provided health insurance; and expanding or
making permanent the deduction for health insurance purchased by the self-employed. The report should be of interest to health and long-term care providers, legislators, and
insurers as well as the general public since Congress is
continue to consider these issues in future sessions.
is available from the Government Printing Office,
Stock Number 048-000-00414-8, price $7.50.
likely to
The
report
GPO
Widely Held Partnerships: Compliance and Administration Issues
"Widely Held Partnerships: Compliance and Administrais a Treasury study which reviews the Federal
income tax treatment of widely held partnerships, which in
recent years have grown significantly in number. The study
concludes that under current law reporting of income by
widely held partnerships and auditing of these partnerships
tion Issues"
by the IRS have become needlessly complex. The study
proposes a streamlined reporting system and revamped
audit system for widely held partnerships. The report is expected to be of interest to investors and managers of widely
held partnerships as well as to anyone interested in the tax
treatment of partnerships and other passthrough entities.
The Taxation of Life Insurance Company Products
In its "Report to the Congress on the Taxation of Life
Insurance Company Products," Treasury evaluates the effectiveness of recent changes in the tax treatment of life insurance and annuity products in preventing the sale of life insurance primarily for investment purposes. The report also
evaluates the policy justifications for and practical implications of the current tax treatment of the investment earnings
on life insurance and annuity products. It concludes that re-
cent tax legislation has curtailed certain tax shelter investments using life insurance and annuity contracts. The report
also questions whether the favorable tax treatment of life
insurance company products is the most effective means of
encouraging private insurance protection and long-term
savings.
tended
In
practice, the current tax rules often result
and
undesired
effects
which
in
with
conflict
unin-
those
objectives.
Reinsurance Excise Tax Study
The Treasury "Report to Congress on the Effect on U.S.
Reinsurance Corporations of the Waiver by Treaty of the
Excise Tax on Certain Reinsurance Premiums" examines the
competitiveness
foreign
of
companies
U.S.
in
reinsurance companies
firms
1
light of
existing treaty policy
With respect
to
and those in no-tax
foreign companies from full-tax
in
full-tax
insurers.
However,
in
in
1
-percent excise
a competitive advantage
for foreign
the case of reinsurers resident
in
no-
tax jurisdictions waiver of the excise tax generally increases
and the
the foreign firm's competitive position. An added complexity
examined in the study relates to controlled foreign corpora-
-percent
resident
tax by treaty results
vis-a-vis
excise tax on certain
reinsurance
premiums. The study draws a distinction between foreign
current
the study finds no evidence that waiving the
jurisdictions.
in
nontax jurisdictions and
shareholders under subpart F.
tions
the treatment
of
U.S.
jurisdictions.
Depreciation of Horses
Treasury's "Report to Congress on the Depreciation of
Horses" recommends that the existing five asset classes for
horses under the Modified Accelerated Cost Recovery System (MACRS) be combined into a single class with a 10-year
class
life
for
all
horses, regardless of their age
when placed
service or the use to which they are put. This recommendation would result in a 7-year regular depreciation MACRS
in
recovery period
for
all
horses. This report
was prepared as
10
TAX POLICY
mandate
the Tax Reform Act of
assets. The legislative
history of the 1986 act directed Treasury to give priority to a
part of the congressional
1986
to study the depreciation of
in
all
study of horses. While the study's findings are based primarily on data for thoroughbred horses acquired as yearlings,
Treasury believes that the results reasonably apply to all
horses. Two major issues that arose during this study and
that affected its findings include the treatment of assets that
initially appreciate in value and the treatment of assets that
change in use over their lifetime.
Depreciation of Scientific Instruments
The "Report
to Congress on the Depreciation of ScienInstruments" describes the results of the Treasury's
study of the depreciation of scientific instruments. The study
tific
uses 5 methodologies
to analyze the depreciation of 12 matypes of scientific instruments. The primary method used
to determine the equivalent economic life is an analysis of
the decline in value with age, as obtained from resale price
jor
method
supplemented by a method in which a
is assumed. Other factors examined include measures of the actual and anticipated useful lives and the depreciation lives used for financial accounting. The study concludes that the current recovery periods
for these assets appear reasonable and does not recommend the establishment of a separate asset class.
data. This
is
specified service flow pattern
Depreciation of Fruit and Nut Trees
Treasury's "Report to Congress on the Depreciation of
and Nut Trees" presents the results of a study of the
depreciation of fruit trees and nut trees. Information obtained
from published sources (primarily relative to crops grown in
California) as well as opinions of industry experts was used
to estimate the economic depreciation of fruit and nut trees.
Of particular interest is the treatment of the early portion of
the fruit and nut tree's life, during which it characteristically
Fruit
The Department
vice,
of the Treasury released the
5285 Port Royal Road, Springfield,
VA
above reports on March
in value. The study concludes
measured average equivalent economic
increases
life
of fruit
and nut
approximately 60 years; however, the average equivalent economic life of newly planted fruit and nut trees for all
regions and types of trees may be shorter than this observed
trees
is
value.
No
specific
concerning the
30, 1990.
22161, phone: (703) 487-4660.
that the historically
life
recommendation is made
and nut trees.
to
Congress
of fruit
Copies may be purchased from the National Technical Information Ser-
11
TREASURY ISSUES INDEX
Economic Policy
"Direct
Revenue Effects
of
Capital
Evidence, The." Darby, Michael
R.,
Gains Taxation: A Reconsideration of the Time-Series
Robert Gillingham, and John S. Greenlees. June 1988, pp.
2-2.8.
A report presenting results that indicate the time-series data, like the cross-section data, provide considerable
evidence supporting the likelihood of direct revenue gains from reductions in capital gains lax rates.
"Fiscal 1991 Budget, The." Brady, Nicholas F. March 1990, page 3.
A statement by the Secretary of the Treasury on the elements of the family savings account, the capital gains tax
reduction, and the home ownership initiative contained in the administration-proposed Savings and Economic
Growth Act.
"Outlook for the Savings and Loan Industry after the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989." Glauber, Robert R. December 1989, pp. 4-6.
A discussion of the savings and loan indu.stry' s future as
Reform, Recovery, and Enforcement Act of 1989.
"Solution to the Savings
page
it
relates to provisions in the Finarwial Institutions
and Loan Problem, The." Excerpted. Brady, Nicholas
F.
September 1989,
3.
Remarks by the Secretary of the Treasury on the administration s comprehensive reform plan proposed for the
overhaul of the savings and loan industry.
Fiscal Service
"Status Report on the Fiscal Operations of the Government, A." Murphy, Gerald. December
1988, pp. 3-7.
A sweeping look by the Fiscal Assistant Secretary of the Treasury at each of nine major responsibilities making
up the Fiscal Service's financial leadership role in Government.
International Affairs
"International Debt Strategy, The." Brady, Nicholas F. June 1989, pp. 3-4.
RemarLs by the Secretary of the Treasury on the debt problem and the direction needed to be provided to
international efforts to strengthen the debt strategy.
"Strengthened Debt Strategy, The." Brady, Nicholas F. December 1989, page 3.
An update from the Secretary of the Treasury on the inlerruitional debt strategy to improve
creditors' assets and creditworthiness in debtor countries.
the quality of
Toward Direct Foreign Investment." Robson, John E. March 1990, pp. 4-7.
An exploration irUo the position that the United Stales is taking on foreign trade and investment policy
"U.S. Policy
matters.
12
TREASURY ISSUES INDEX
Tax Policy
Congressional Reports and Staff Working Papers by the Office of Tax Policy. March 1988, pp.
3-4.
A
listing
of research studies pertaining to important contemporary and anticipated tax policy
issues, particularly
related to the 1986-7 tax reform effort.
Tax Reform Act of 1986 on Commercial Banks, The." Excerpted. Neubig, Thomas
and Martin A. Sullivan. June 1988, pp. 3-7.
An analysis of the overall effect of tax reform on the banking industry, which, the study concludes, benefits from
"Effect of the
S.,
tax reform.
"Impact of the Tax Reform Act of 1986 on Trade and Capital Flows, The." Excerpted. Grubert,
Harry,
and John
Mutti.
March 1988, pp.
5-8.
An
analysis of the international implications of tax reform, based on a general equilibrium
States and the rest of the world.
"New Estimates of
Data." Summary.
model of the United
Capital Gains Realization Behavior: Evidence from Pooled Cross-Section
Gllllngham, Robert, John S. Greenlees, and Kimberly D. Zieschang.
September 1989, pp. 4-5.
A paper developing and estimating a
behavioral model of taxpayer response to capital gains taxation. Using the
econometric approach, the pooled cross-section data represents a set of independent observations from a taxpayer
sampling extending over the period 1977-85.
"Noncorporate Business Taxation: Before and After the Tax Reform Act of 1986." Excerpted.
Nelson, Susan C. December 1988, pp. 8-12.
An analysis of the effects that the Tax Reform Act of 1986 might have on noncorporate business in terms of tax
revenue, incentives for noncorporate versus corporate investment, and individual marginal tax rates on different
types of income from noncorporate business.
Operation and Effect of the Domestic International Sales Corporation Legislation: July
June 30, 1983. June 1988, page 8.
An announcement of the Department
1,
1981, to
of the Treasury's release of the llth report in a series on domestic
on part of their
international sales corporations, special corporations eligible for deferral of Federal income tax
export profits.
"Tax Expenditure Budget Before and After the Tax Reform Act of 1986, The." Excerpted. Neubig,
Thomas S., and David Joulfaian. March 1989, pp. 3-10.
Findings from a recent study showing changes made by the Tax Reform Act of 1986 led to significant reductions
in
Government subsidies provided through
tax expenditures.
Taxation Studies, Abstracts of Recent. September 1988, page 3.
Summaries of four major papers and reports, ranging from an examination of trends
taxation to a study of certain employee benefits not subject to Federal income tax.
Taxation Studies, Abstracts of Recent. June 1989, page
A
in
noncorporate business
5.
brief look at four reports covering the taxation of insurance syndicate income, Social Security benefits,
Americans working overseas; and the possessions corporation system of taxation.
and
13
TREASURY ISSUES INDEX
Taxation Studies, Abstracts of Recent. September 1989,
pp. 6-8.
A summalion of the reports to Congress on life insurance taxation and the depreciation
of clothing held fo,
rental, and various OTA papers on issues running from transfer pricing
to capital gains realization
behavior.
FINANCIAL OPERATIONS
17
FEDERAL FISCAL OPERATIONS
INTRODUCTION
Background
collections.
Section 114 of the Budget and Accounting Procedures Act of
(31 U.S.C. 3513a) requires the Secretary of the Treasury to
prepare reports on the financial operations of the U.S. Government.
following major categories; (1) budget receipts and (2) offsetting
collections. Budget receipts are collections from the public that result
three Federal fiscal operations (FFO) tables are
published quarterly and cover 5 years of data, estimates for 2 years,
detail for 13 months, and fiscal year-to-date data. The tables are
designed to provide a summary of data relating to Federal fiscal
operations reported by Federal entities and disbursing officers, and
from the exercise of the Government's sovereign or governmental
powers, excluding receipts offset against outlays. These collections,
also called governmental receipts, consist mainly of lax 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.
1950
The
first
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. Government. Data used in the
preparation of tables FFO-1, FFO-2, and FFO-3 is derived from the
Monthly Treasury Statement of Receipts and Outlays of the United
Rece;p(s.-Receipts reported
in
the tables are classified into the
daily reports from the Federal
Offsetting collections are from other
Government accounts
or
the public that are of a business-type or market-oriented nature.
They
are
classified
collections credited
receipts
offsetting
into
to
(i.e.,
two
major
categories;
(1)
offsetting
appropriations or fund accounts, and (2)
amounts deposited in receipt accounts).
States Government.
Collections credited to appropriation or fund accounts normally can
be used without appropriation action by Congress. These occur in
Budget authority usually takes the form of "appropriations"
which permit obligations to be incurred and payments to be made.
Most appropriations for current operations are made available for
obligation only during a specified fiscal year (annual appropriations).
two instances;
Some are for a specified longer period (multiple-year appropriations).
Others, including most of those for construction, some for researcfi,
and many for trust funds, are made available for obligation until the
amount appropriated has been expended or until the objectives have
spending, and outlays are reported as the net amount.
been attained (no-year appropriations).
Budget authority can be made available by Congress for
and disbursement during a fiscal year from a succeeding
year's appropriations (advance funding). For many education
programs. Congress provides forw/ard funding-budget authority
made available for obligation in one fiscal year for the financing of
ongoing grant programs during the succeeding fiscal year. When
advantageous to the Federal Government, an appropriation is
provided by Congress that will become available 1 year or more
beyond the fiscal year for which the appropriation act is passed
(advance appropriations). Included as advance appropriations are
appropriations related to multiyear budget requests.
obligations
When budget
is made available by Congress for a
any part not obligated during that period
expires and cannot be used later. Congressional actions that extend
the availability of unobligated amounts that have expired or would
authority
specific period of time,
otherwise expire are known as reappropriations. The amounts
involved are counted as new budget authority in the fiscal year of the
legislation in which the reappropriation action is included, regardless
of when the amounts were originally appropriated or when they
would otherwise lapse.
Out/ays.-Obligations generally are liquidated by the issuance of
checks or the disbursement of cash; such payments are called
outlays. In lieu of issuing checks, obligations also may be liquidated
(and outlays recorded) by the accrual of interest on public issues of
Treasury debt securities (including an increase in the 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, rather
than as outlays. However, payments for earned-income tax credits in
excess of tax liabilities are treated as outlays rather than as a
reduction in receipts. Outlays during a fiscal year may be for
payment
of obligations incurred
Outlays, therefore, flow
in
in
prior
part from
years or
in
the
same
unexpended balances
year.
of prior
year budget authority and in part from budget authonty provided for
the year in which the money is spent. Total outlays include both
budget and off-budget outlays and are stated net of offsetting
(1) when authorized by law, amounts collected for
materials or services are treated as reimbursements to appropria-
and (2) in the three types of revolving funds (public enterprise,
intragovernmental, and trust); collections are netted against
tions
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 funds-these are payments into receipt accounts
from governmental appropriation or fund accounts. They finance
operations within and between Government 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
are
subdivided
into
three
transactions
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.
deducted from budget authority
by subfunction, or by agency. There are four
receipts, however, that are deducted from budget totals as
Offsetting receipts are generally
and outlays by
function,
types of
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 (i.e., interest collected on Outer Continental Shelf
money
in
deposit funds
when such money
is
transferred into the
budget).
entities. -The Federal Government has used
budget concept as the foundation for its budgetary
analysis and presentation since 1969. This concept calls for the
budget to include all of the Government's fiscal transactions with the
public. Starting in 1971, however, various laws have been enacted
under which several Federal entities have been removed from the
budget or created outside the budget. Other laws have moved
Off-budget Federal
the unified
certain off-budget Federal entities onto the budget.
law,
the off-budget
Federal
entities consist of
Under current
the two
Social
18
FEDERAL FISCAL OPERATIONS
Security trust funds, Federal old-age
and survivors insurance and
and net miscellaneous
receipts by source.
Federal disability insurance.
The off-budget Federal
entities
controlled, but their transactions are
under provisions of law.
outlays,
and surplus or
When an
deficit
are
federally
owned and
excluded from the budget
entity is off-budget,
are not included
in
its
budget outlays, or the budget deficit; its budget authority is not
in the totals of budget authority for the budget; and its
and surplus
Congress
receipts,
budget receipts,
included
receipts, outlays,
Table FFO-3.-On-budget and Off-budget Outlays by Agency
totals
or deficit ordinarily are not subject to
[generally]
in
obligate the
[usually]
provides
budget
the form of appropriations,
which
authority
then
is
Federal agencies
Government funds to make outlays. The amounts in this
a breakdown of on-budget and off-budget outlays by
table represent
agency.
the targets set by the congressional budget resolution.
Nevertheless, the Balanced Budget and Emergency Deficit
(commonly known as the Gramm-RudmanHollings Act) included the off-budget surplus or deficit in calculating
Control Act of 1985
and in calculating the excess deficit
purposes of that act. Partly because of this reason, attention has
focused on the total receipts, outlays, and deficit of the Federal
Government instead of the on-budget amounts alone.
the deficit targets under that act
for
Table FFO-4.--Summary of Internal Revenue Collections by States and
Other Areas
This annual table provides data on internal revenue collections
and other areas and by type of tax. The amounts
reported are for collections made in a fiscal year beginning in
classified by States
October and ending the following September.
Fiscal year collections
Table FFO-l.-Summary of Fiscal Operations
they consist of prepayments
liability years because
estimated tax payments and taxes
span several tax
(e.g.,
withheld by employers for individual income and Social Security
This
table
summarizes the amount
outlays, total surplus or deficit, transactions
monetary
assets,
of
total
receipts,
total
Federal securities and
balances in Treasury
in
and transactions and
of payments made with tax returns, and
payments made after tax returns are due or are filed
with delinquent returns or on delinquent accounts).
taxes),
of
subsequent
payments
(e.g.,
operating cash.
It
is
also important to note that these data do not necessarily
taxes, social insurance taxes, net contributions for other insurance
Federal tax burden of individual States. The amounts are
reported based on the primary filing address furnished by each
taxpayer or reporting entity. For multistate corporations, this address
may reflect only the State where such a corporation 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
and retirement, excise taxes, estate and
work
reflect the
Table FFO-2.--On-budgct and Off-budget Receipts by Source
Budget receipts are taxes and other collections from the public
from the exercise of the Government's sovereign or
governmental powers. The amounts in this table represent income
that result
gift
taxes,
customs
duties,
in
another State.
19
FEDERAL FISCAL OPERATIONS
Budget Results for the Second Quarter, Fiscal 1990
Summary
The Federal budget deficit in the second quarter of fiscal
1990 totaled $80-1/3 billion, up from $60-3/4 billion in the
second quarter of fiscal 1989. For the first 6 months of fiscal
for the health
1990, the deficit was $151 billion, or $22-1/2 billion wider
than for the same period of fiscal 1989 when the deficit for
the full fiscal year was $152 billion. Outlays during the first
half of fiscal 1990 were up 7 percent from a year earlier,
while receipts increased by 4 percent. In the Budget of the
U.S. Government, Fiscal Year 1991, released early this year,
a deficit of $124 billion was projected for the full year fiscal
1990.
quarter of fiscal 1989. Outlays for national defense in the
second quarter increased almost 5 percent from a year ago
Outlays in terms of major functional category in the second quarter of fiscal 1990 were up almost across the board
from the readings of a year earlier. There had been a more
mixed pattern in the first quarter. In the second quarter, increased spending by the Resolution Trust Corporation
(concentrated in March) sharply boosted outlays for the commerce and housing credit function. Second-quarter spending
Pn
Total on-budget
and off-budget
results:
Tolal receipts
On-budget receipts
Off-budget receipts
Total outlays
On-budget outlays
Ofl-budget outlays
Total surplus {+) or deficit
(-)
On-budget surplus
(+) or deficit
(-)
.
.
Off-budget surplus
(+)
or deficit
(-)
.
.
Means
of financing:
Borrowing from the public
Reduction
of operating
cash. Increase
(-)
Other means
Total on-budget
and off-budget financing
and medicare functions was up appreciably (18
percent) from the second quarter of fiscal 1989. Spending for
income security rose by 11-1/2 percent from the second
after having slowed
year earlier figure.
in
the
first
quarter of fiscal 1990 from the
Expenditures for health and medicare
jumped, spending for income security
rose, and outlays for national defense
increased.
millions]
20
FEDERAL FISCAL OPERATIONS
quarter of fiscal 1990 totaled $22 billion. This was $3.4
lower than the first quarter of fiscal 1989. This
downturn in receipts reflected lower corporate profits. The
first
the
billion
ance and retirement were $1.1 billion, slightly less than for
the comparable quarter of fiscal 1989. The slight decrease in
receipts reflects the general pattern of a decrease in the
number of individuals covered under the old civil service
$3.4
and
decrease was mostly due to a fall in estimated
payments of $2.3 billion and $0.8 billion, respec-
billion
final
tively. In addition,
refunds increased by $0.3
first
quarter of fiscal 1990, contributions for other insur-
These
retirement system.
billion.
new
individuals are being replaced with
who
employees
have relatively lower
employees' retirement system contributions.
Employment taxes and contributlons.-Employment
taxes and contributions increased from $68.7 billion during
the first quarter of fiscal 1989 to $72.7 billion in the first quarter of fiscal 1990. Two adjustments were made to the Social
Security trust funds during the quarter. The old-age survivors, disability, and health insurance (OASDHI) trust funds
were adjusted to reflect actual withholding data from 1988.
As a consequence, $0.1 billion was returned to the withheld
individual income tax account. This adjustment was smaller
than a comparable adjustment in the previous year when the
trust fund was reduced by $0.6 billion to reflect 1987 withholding data. Based on self-employment earnings reported
on tax returns from 1987 and prior years, the OASDHI trust
funds were increased by $0.1 billion, and the nonwithheld
individual income tax account was decreased accordingly. In
the prior year, the adjustment to the trust funds for selfemployment taxes was $0.3 billion.
Excise taxes.-Excise tax receipts for the Octoberquarter were $8.7 billion, compared with
$9.4 billion for the comparable quarter of fiscal 1989. Yearto-year comparisons of excise tax receipts have been affected by changes in timing of collections and refunds of fuel
lax receipts. The decrease of $0.7 billion in net excise
receipts from the comparable prior year level is primarily the
result of these timing factors.
December 1989
Estate and gift taxes.-Estate and gift tax receipts were
$2.4 billion in the October through December quarter of
1989. This represents an increase of $0.3 billion over the
previous quarter as well as over the same quarter in the previous year.
Customs duties.-Customs
Unemployment insurance.--Unemployment
insurance
$4.2
fell by $0.8 billion between the first quarters of fiscal
1989 and fiscal 1990. For the 3-month period beginning
October 1989, the unemployment insurance account was
credited with $3.1 billion. Department of the Treasury transfers to the Federal Unemployment Tax Act trust fund were
taxes
adjusted
downwards
sive transfers during
in
1
the quarter to
compensate
for
billion for
the
to
receipts net of refunds
were
quarter of fiscal 1990. This increase of
over the comparable prior year period is
first
less than $0.1 billion
due
an increase
in
imports.
Miscellaneous receipts.~Net miscellaneous receipts for
first quarter of fiscal 1990 increased by $1 billion, over
the comparable prior year period, to $7.3 billion. Deposits of
Federal Reserve earnings increased by $1.1 billion, while net
other miscellaneous receipts decreased by $0.1 billion.
the
exces-
989.
Contributions for other insurance and retirement.--ln
Firet-Ouarter Rscal 1990 Net
[In billions
Federal
Budget Receipts, by Source
o( dollars]
21
FEDERAL FISCAL OPERATIONS
Table FFO-1 .--Summary of Fiscal Operations
[In
millions of dollars. Source:
Monthly Treasury Statement of Recelpis and Outlays
of Ihe
United Stales Government]
Means
Total on-budget
Fiscal year
or
Total
receipts
month
On-budget
Off-budget
receipts
receipts
Total
outlays
and off-budget
results
On-budget
Off-budget
outlays
outlays
of financing
-net transactions
Total
surplus
On-budget
Off -budget
surplus
surplus
Borrowing from the
public-Federal
or
or
or
securities
deficit
deficit
deficit
(-)
(•)
(-)
Public
debt
securities
(1)
1985
1986
1987'
1988
1989'
734,057
...
...
...
...
...
1990
(Est.)
1991
(Est.)
1989- Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1990- Jan
Feb
Mar
FiscallQSO
to
date
.
.
.
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
22
FEDERAL FISCAL OPERATIONS
MONTHLY RECEIPTS AND OUTLAYS
FISCAL YEARS 1989 AND 1990
Source: Monthly Treasury Statement of Receipts and Outlays
of the
United States Government
I
n
B
o
n
s
o
f
D
I
I
a
r
s
r
0'88
N
DJ'89FMAMJJASO
FISCAL YEARS 1989
AND
1990
D
J -90
M
23
FEDERAL FISCAL OPERATIONS
Table FF0-2.--0n-budget and Off-budget Receipts by Source
[In
millions of dollars. Source:
Monlhly Treasury Slalement of Receipis and Outlays
ot Ihe
United Stales Governmenl]
Income taxes
Fiscal year
or month
Social insurance
taxes and contributions
Corporation
Net
Refunds
taxes
income
Net
Gross
Errployment taxes and contributions
Old-age. disability, and
fiospital insurance
Gross
1985
19S6
1987
1988
1989
1990
302.554
(Est.).
1991 (Est.).
1989- Mar
Apr
.
,
.
f«lay.
June
July
.
.
Aug.
Sept.
Oct
.
Nov.
Dec.
1990 -Jan
..
Feb..
Mar.
Fiscal
1990
to date.
Refunds
Net
24
FEDERAL FISCAL OPERATIONS
Table FF0-2.--0n-budget and Off-budget Receipts by Source--Continued
[In
millions of dollars]
25
FEDERAL FISCAL OPERATIONS
BUDGET RECEIPTS BY SOURCE THROUGH SECOND
QUARTER OF FISCAL YEARS 1989 AND 1990
Source: Monthly Treasury Statement of Receipts and Outlays
of the
Z.1VJ
195
-;
-
United States Government
26
FEDERAL FISCAL OPERATIONS
Table FF0-3.--0n-budget and Off-budget Outlays by Agency
[In
LegisFiscal year
or month
millions of dollars. Source:
Monthly Treasury Slalemeni
of
Receipts and Outlays of the United States Governmanl]
27
FEDERAL FISCAL OPERATIONS
Table FF0-3.--0n-budget and Off-budget Outlays by Agency-Continued
[in
EnvironFiscal
year or
19B5
1986
1987.
1988
1989
1990
(Est.)
1991
(Esl.)
1989- Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1990- Jan
Feb
Mar
miHions of dollars]
28
FEDERAL OBLIGATIONS
order, but the order itself usually
are the basis on which the use of funds is
the Federal Government. They are recorded at the point
at which the Government makes a firm commitment to acquire goods
or services and are the first of the four key events-order, delivery,
payment, and consumption-which characterize the acquisition and
use of resources. In general, they consist of orders placed, contracts
"Obligations"
controlled
private
in
causes immediate pressure on the
economy.
Obligations are classified according to a uniform set of
categories based upon the nature of the transaction without regard to
ultimate purpose. All payments for salaries and wages, for
its
example, are reported as personnel compensation, whether the
personal services are used in current operations or in the construc-
awarded, services received, and similar transactions requiring the
disbursement of money.
tion of capital items.
The
point
in
Government transactions
obligational stage of
gauging the impact
of
a strategic
the Government's operations on the
is
Federal agencies often do business with one another; in doing
agency records obligations, and the "performing"
agency records reimbursements. In table FO-1, obligations incurred
within the Government are distinguished from those incurred outside
the Government. Table FO-2 shows only those incurred outside.
so, the "buying"
frequently represents for business firms
economy, since
the Government commitment which stimulates business investment,
including inventory purchases and employment of labor. Disbursements may not occur for months after the Government places its
national
it
Table FO-1 .--Gross Obligations Incurred Within and Outside the Federal Government
by Object Class, as of Dec. 31, 1989
[In
millions ot dollars. Source:
Standard Fofm 225. Report on Obligalions, Irom aqencies]
Gross obligations incurred
Object class
Total
Outside
Personal services and benefits:
Personnel compensation
Personnel benelils
Benefits lor former personnel
36,075
2,103
36,075
8,644
200
200
Contractual services and supplies:
Travel and transportation of persons
Transportation of tilings
Rent, communications, and utilities
Printing and reproduction
Olfier services
Supplies and materials
139
213
1,392
1.837
3,449
192
41,533
12.309
.
.
1,531
2.050
4.496
1.047
154
9,257
5,950
50.790
18.259
227
14.799
61
4,036
5,728
346
Acquisition of capital assets:
14,572
3.975
5.725
Equipment
Lands and structures
Investments and loans
3
Grants and fixed charges:
Grants, subsidies, and contributions
Insurance claims and indemnities
Interest and dividends
.
108.431
34
61.882
177
23.633
Refunds
52.695
108.465
85.515
177
8.758
43,937
.
.
Other:
23
Unvouchered
Gross obligations Incurred
'
1.452
3.661
340.021
57.470
397,491
For Federal budget presentation a concept of "net obligations incurred" is generally used.
concept eliminates transactions wilfiin ttie Government and revenue and reimbursements from the public whichi by statute may be used by Government agencies without
appropriation action by the 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.)
Tfiis
24
1
2.209
Undistributed U.S. obligations
Gross obligations incurred (as above)
Deduct:
Advances, reimbursements, other income,
Otlsetting receipts
Net obligations incurred
etc.
-86.808
-68.568
29
FEDERAL OBLIGATIONS
Table FO-2.--Gross Obligations Incurred Outside the Federal Government by
Department or Agency, as of Dec. 31, 1989
[In
millions ol dollars.
Source: Standard Form 225. Report on Obligations. Irom agencies]
Personal services and benefits
Classification
Contractual services and supplies
30
FEDERAL OBLIGATIONS
Table FO-2.--Gross Obligations Incurred Outside the Federal Government by
Department or Agency, as of Dec. 31, l989--Continued
[In
millions of dollars]
Grants and fixed charges
Acquisition of
capital assets
Classification
Equip-
ment
Lands
and
Invest-
struc-
ments
and
tures
loans
Grants.
subsidies,
Insurance
claims
and
and con-
and indem-
dividends
tributions
nities
Interest
Refunds
Unvouchered
Total
Undistributed U.S.
gross
obliga-
obliga-
tions
tions
Incurred
23
Legislative branch
The
judiciary
1
Office of the President
Funds appropriated
1
to the President:
International security assistance
International
1.880
development assistance
Other
2
1
Agriculture Department:
Commodity Credit Corporation
3
Other
Commerce Department
20
13
12
1
4.017
262
393
518
6,121
1,058
1
Defense Department:
Military:
Department of the Army
Department of the Navy
Department of the Air Force
Defense agencies
Total military
1
,339
6,160
5,296
609
1
3,404
13
Civil
Education Department
Energy Department
Heattn and Human Services, except
476
24
Social Security
Health and Human Services, Social
Security (off-budget)
Housing and Urban Development Department
Interior Department
Justice Department
Labor Department
State Department
Transportation Department
Treasury Department:
Interest on the public debt
Interest on refunds, etc
Other
Veterans Affairs Department
Environmental Protection Agency
General Services Administration
National Aeronautics and Space
2
204
52
41
17
7
32
Administration
Ottice of Personnel
1
15
5
Management
1
Small Business Administration
Other independent agencies:
Postal Sen/ice
171
Tennessee Valley Authority
36
Other
10
Total
14,572
217
164
1.474
49
11
16
5
91
5
16
12
305
61
5,075
1
5.097
31
FEDERAL OBLIGATIONS
GROSS FEDERAL OBLIGATIONS AS OF
DEC.
1989
31,
Personal Services & Benefits
Outside Government
Within Government
Contractual Services & Supplies
Acquisition of Capital Assets
Grants & Fixed Charges
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
50
I
I
I
—
I
I
I
100
I
I
I
I
I
I
I
I
I
I
I
I
I
I
200
150
$ Billions
GROSS FEDERAL OBLIGATIONS INCURRED
OUTSIDE THE FEDERAL GOVERNMENT
As
of
Dec. 31, 1989
;ontractual Services
and Supplies
18%
Acquisition of Capital Asset:
7%
ersonal Services and Benefits
11%
Granis and Fixed Chargei
64%
I
I
I
250
32
ACCOUNT OF THE
U.S.
TREASURY
SOURCE AND AVAILABILITY OF THE BALANCE IN THE ACCOUNT OF THE
The operating cash of the Treasury is maintained in Treasury's
accounts with the Federal Reserve banks and branches and in tax
and loan accounts. Major information sources include the Daily
Balance Wire received from the Federal Reserve banks and
branches, and electronic transfers through the Letter of Credit
Payment, Fedline Payment, and Fedwire Deposit Systems. As the
balances in the accounts at the Federal Reserve banks become
depleted, they are restored by calling in (withdrawing) funds from
thousands of financial institutions throughout the country authorized
to maintain tax and loan accounts.
Law 95-147, the Treasury implemented
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
in the program. Depositaries that wish to retain funds deposited in
their tax and loan accounts in interest-bearing obligations participate
under the Note Option; depositaries that wish to remit the funds to
the Treasury's account at Federal Reserve banks participate under
the Remittance Option.
Under authority
a program on Nov.
of Public
business under a uniform
U.S.
TREASURY
procedure applicable
to
all
financial
whereby customers of financial institutions deposit with
them tax payments and funds for the purchase of Government
securities. In most cases the transaction involves merely the transfer
of funds from a customer's account to the tax and loan account in the
institutions
same
financial institution.
On
occasion, to the extent authorized by
the Treasury, financial institutions are permitted to deposit in these
accounts proceeds from subscriptions to public debt securities
entered for their own account as well as for the accounts of their
customers. Also, Treasury can direct the Federal Reserve banks to
invest excess funds in these accounts directly from its account at the
Federal Reserve banks.
2,
Deposits to tax and loan accounts occur
in
The tax and loan system permits the 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
such time as the Treasury needs the funds for its operations. In this
way the Treasury is able to neutralize the effect of its fluctuating
operations on Note Option
financial institution reserves and the
economy.
the normal course of
Table UST-1 .--Elements of Changes
[In
in
Federal Reserve and Tax and Loan Note Account Balances
millions of dollars. Source: Financial
Management
Service]
33
ACCOUNT OF THE
Table UST-1 .--Elements of Changes
in
U.S.
TREASURY
Federal Reserve and Tax and Loan Note Account Balances-Con.
[In
millions of dollars]
Balances
End
of period
Fiscal year
Federal
Tax and
monlh
Reserve
loan note
or
accounts
During period
High
Average
Federal
Tax and
Federal
Tax and
Federal
Reserve
loan note
Reserve
loan note
Reserve
accounts
1985
1986
1987
1988
1989
1989- Mar.
.
Apr.
.
May
.
June.
July
Aug
.
.
Sept.
Oct..
Nov
Dec
.
.
1990-Jan..
Feb..
Mar..
4,174
7.514
9.120
13,023
13,452
12,886
23,870
27.316
31.375
19,877
19,087
29,688
27.521
25.444
4.462
22,952
5,288
12,153
5,312
6,652
13,452
13,124
5,500
6.217
13,153
6.613
4.832
10,211
6.421
30,508
26,776
31.560
16.837
18.732
22.952
25.444
19.822
12.153
7.775
13.669
13.452
7.133
6,217
13,153
7,925
8,303
27.521
30,362
16,214
20,718
31.899
12,976
13,634
19.101
Less than $500,000.
Represents transfers from tax and loan note accounts, proceeds from sales
other than Government account series, and taxes.
'
22,398
25,139
28,553
32,188
32.214
20,039
30,508
32.214
31.756
31,560
20,614
31,591
X,362
29.263
22.446
31.899
31,820
18,372
Represents checks paid, wire transfer payments, drawrdowns on letters of credit,
redemptions ol securities other than Government account series, and investment (transfer)
of excess funds out of this account to the tax and loan note accounts.
Special depositaries are permitted to maite payment in the form of a deposit credit lor the
purchase price of U.S. Government securities purchased by them for their own account, or
tor the account of their customers who enter subscriptions through them, when this method
of payment is permitted under the terms of the circulars inviting subscriptions to the issues.
Effective Oct. 1. 1989, public debt securities, including U.S. savings bonds, will no longer be
and loan note accounts.
1,429
311
1,518
851
3,754
2,436
2,698
255
3,430
4,242
3,670
4,157
4,280
3,787
3,368
4,265
3,815
3,477
3,335
3,924
4,712
6,401
U.S.
savings notes
255
26,776
7,849
11,123
551
5,344
7,028
3,871
3,982
3,137
12,806
5,097
first
offered for sale as of
Tax and
loan note
accounts
4,162
4,546
6,584
5,028
7,328
11,649
12,208
18.485
19.718
19.030
5,155
8,798
14,126
10,072
6.067
5,437
7.679
6,111
5,008
4,787
6,302
5,867
5,349
13.991
14.378
31.531
Includes U.S. savings bonds, savings notes, retirement plan and tax
of securities
^
settled through the tax
accounts
May
1,
20.856
18,868
12,705
18,763
17,280
10,780
13,536
18,814
17,858
12,622
and
loss bonds.
1967, and were discontinued alter
June 30, 1970. Retirement plan bonds first offered for sale as ol Jan. 1.1963; tax and loss
bonds first issued in March 1968.
Taxes eligible for 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 Contributions Act beginning January 1950, and
under the Railroad Retirement Tax Act beginning July 1951; a number of excise taxes
beginning July 1953; estimated corporation income taxes beginning April 1967; all
corporation income taxes due on or after Mar. 15, 1968; FUTA taxes beginning April 1970,
and indK'iduai estimated income taxes beginning October 1988.
34
FEDERAL DEBT
INTRODUCTION
Treasury securities
(i.e.,
public debt securities) comprise
most
of
the Federal debt, with securities issued by other Federal agencies
accounting for the remainder. In addition to the data on the Federal
debt presented in the tables In this section of the quarterly Treasury
Bulletin, the Treasury publishes detailed data on the public debt
agency borrowing from the Treasury, which is presented in the
Monthly Treasury Statement of Receipts and Outlays of the United
eral
States Government. The Government-sponsored entities, whose
securities are presented in the memorandum section of table FD-4,
are not agencies of the Federal Government, nor are their securities
presented
FD-4 guaranteed by the Federal Government.
outstanding in the Monthly Statement of the Public Debt of the
United States and on agency securities and the investments of Federal Government accounts in Federal securities in the Monthly
Treasury Statement of Receipts and Outlays of the United States
Table
Government.
Marlictable Interest-Bearing Public Debt Held by Private Investors
Table FD-1. --Summary of Federal Debt
is summarized as to holdings of
and agency securities by the public, which includes the
Federal Reserve, and by Federal agencies, largely the social security and other Federal retirement trust funds. Greater detail on hold-
The Federal debt outstanding
public debt
ings of Federal securities by particular classes of investors
sented
in
the ownership tables,
OFS-1 and OFS-2,
is
pre-
of the Treasury
Bulletin.
Tabic FD-2."Intcrcst-Bcaring Public Debt
marketable and nonmarketable Treasury
presented as to type of security The difference between interest-bearing and total public debt securities reflects outstanding matured Treasury securities on which interest has ceased
to accrue. The Federal Financing Bank (FFB) is under the superviInterest-bearing
securities are
and FFB securities shown
by a U.S. Government account.
sion of the Treasury,
in this
in
table
FD-S.-Maturity
Distribution
and
Average
Length
of
The average maturity of the privately held marketable Treasury
debt has increased gradually since it hit a trough of 2 years, 5
months, in December 1975. In March 1971, the Congress enacted a
limited exception to the 4-1/4-percent interest rate ceiling on Treasury bonds that permitted the Treasury to offer securities maturing in
more than 7 years at current market rates of interest for the first time
since 1965. The exception to the 4-1/4-percent Interest rate ceiling
had been expanded since 1971 to authorize the Treasury to continue
to issue long-term securities. The 4-1/4-percent interest rate 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, and the average length comprises an average of
remaining periods to maturity, weighted by the amount of each security held by private investors (i.e., excludes the Government accounts and Federal Reserve banks).
Table FD-6.--Debt Subject to Statutory Limitation
table are held
The
limit.
debt that the
debt ceiling.
Table FD-3.-Government Account Scries
is compared with the outstanding debt
The other debt category includes certain Federal
Congress has designated by statute to be subject to the
The changes in non-interest-bearing debt shown in the
statutory debt ceiling
subject to
column reflect maturities of Treasury secunties on nonbusiness
such as weekends and holidays. In that event, Treasury
securities are redeemed on the first business day following a nonlast
Nonmarketable Treasury securities held by US Government
accounts are summarized as to issues to particular funds within the
Government. Many of the funds Invest In par-value special series
nonmarketables at statutorily determined interest rates, while others
whose statutes do not prescribe an interest rate formula invest In
market-based special Treasury securities whose terms mirror the
terms of marketable Treasury securities.
Tabic
FD-4.-Intcrest-Bcaring
Securities
Issued
by
Government
Agencies
Federal agency borrowing has been declining in recent years,
because the Federal Financing Bank has been providing
financing to other Federal agencies. This table does not cover Fedin
part
days,
business day.
Table FD-7.-Treasury Holdings of Securities Issued by Government
Corporations and Other Agencies
Certain Federal agencies are authorized by statute to borrow
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.
The Treasury finances such loans to the Federal agencies with is-
sues of public debt securities.
35
FEDERAL DEBT
Table FD-1 .--Summary of Federal Debt
[In
millions ot dollars. Source: Monthly Treasury
Amount outstanding
End
of
fiscal
or
year
month
Statement
of
Receipis and Oullays ot the United Slales Government]
Securities held by:
36
FEDERAL DEBT
Table FD-3.--Government Account Series
|ln
millions of dollars. Source:
Monthly Slalemenl
o! Ihe Public
Debl
ol the
United States]
37
FEDERAL DEBT
Table FD-4.--lnterest-Bearing Securities Issued by Government Agencies
[In
millions of dollars.
Source: Monthly Treasury Slalement
Detense
Endol
tiscal
year
Total
outstanding
of
Receipts and Outlays of Ihe United Stales Government and Financial
Management
Servicel
38
FEDERAL DEBT
Table FD-5."Maturity Distribution and Average Length of Marketable
Interest-Bearing Public Debt Held by Private Investors
[In
End
of
fiscal
year
or montti
millions of dollars. Source:
Amount
OHice
of
Market Finance]
Maturity
dasses
outstanding
privately
Witfiin
field
1
year
1-5
years
5-10
years
10-20
years
20 years
and over
Average
lengtfi
39
FEDERAL DEBT
m
UJ
o
lU
m
<
IUJ
<
m
o
^r~
CD
li-
o
z
UJ
IIJ
o
<
LU
i
40
FEDERAL DEBT
e o
QO
41
FEDERAL DEBT
Table FD-7.--Treasury Holdings of Securities Issued by Government Corporations and Other Agencies
[In
millions of dolla:s. Source:
Endol
fiscal
year
or montfi
Total
Monthly Treasury Stalemenl
of
Heceipls and Outlays
ol
the United Slates GovBrnmeni]
42
TREASURY FINANCING OPERATIONS, JANUARY-MARCH
JANUARY
52-Weel(
1990
Bills
On January
5 tenders were invited for approximately
364-day Treasury bills to be dated January
18, 1990, and to mature January 17, 1991. The issue was to
refund $9,119 million of maturing 52-week bills and to raise
about $375 million of new cash. Tenders were opened on
January 11. They totaled $30,431 million, of which $9,515
million was accepted, including $1,115 million of noncompetitive tenders from the public and $2,290 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 7.21 percent.
$9,500
Auction of 7- Year Notes
3 the Treasury announced that it would auc$7,500 million of 7-year notes to refund $4,726 million of
notes maturing January 15, 1990, and to raise about $2,775
million of new cash. The notes offered were Treasury Notes
of Series D-1997, dated January 16, 1990, due January 15,
1997, with interest payable on July 15 and January 15 until
maturity. An interest rate of 8 percent was set after the determination as to which tenders were accepted on a yield auc-
On January
tion
million of
tion basis.
Tenders for the notes were received until 1 p.m. EST,
January 10, 1990, and totaled $21,999 million, of which
$7,588 million was accepted at yields ranging from 8.00 percent, price 100.000, up to 8.02 percent, price 99.894.
Tenders at the high yield were allotted 62 percent. Noncompetitive tenders were accepted in full at the average yield,
8.02 percent, price 99.894. These totaled $365 million. Competitive tenders accepted from private investors totaled
$7,223
million.
FEBRUARY
February Quarterly Financing
On January 31 the Treasury announced that it would
auction $10,000 million of 3-year notes of Series S-1993,
$10,000 million of 10-year notes of Series A-2000, and
$10,000 million of 30-year bonds of 2020 to refund $18,051
million of
In
addition to the $7,588 million of tenders accepted
the auction process,
Reserve banksr as
$140
million
in
2- Year
1
,950 million of
new
cash.
was accepted from Federal
agents for foreign and international
monetary authorities, and $116 million was accepted from
Federal Reserve banks for their own account.
Auction of
Treasury securities maturing February 15 and to
raise about $1
The notes of Series S-1993 were dated February 15,
due February 15, 1993, with interest payable on
August 15 and February 15 until maturity. An interest rate of
8-3/8 percent was set after the determination as to which
tenders were accepted on a yield auction basis.
1990,
Notes
p.m. EST,
1
which $10,001
million was accepted at yields ranging from 8.42 percent,
price 99.883, up to 8.44 percent, price 99.831. Tenders at
the high yield were allotted 12 percent. Noncompetitive
tenders were accepted in full at the average yield, 8.43 percent, price 99.857. These totaled $1,189 million. Competitive
tenders accepted from private investors totaled $8,812
Tenders
On January 17
the Treasury announced that it would
auction $10,000 million of 2-year notes to refund $10,209
million of notes maturing January 31, 1990, and to pay down
about $200 million. The notes offered were Treasury Notes
V-1992, dated January 31, 1990, due January 31,
1992, with interest payable on July 31 and January 31 until
maturity. An interest rate of 8-1/8 percent was set after the
determination as to which tenders were accepted on a yield
of Series
February
6,
for the
and
notes were received
totaled
$34,074
until
million, of
million.
auction basis.
p.m. EST,
Tenders for the notes were received
January 24, and totaled $26,908 million, of which $10,027
million was accepted at yields ranging from 8.19 percent,
price 99.882, up to 8.21 percent, price 99.846. Tenders at
the high yield were allotted 72 percent. Noncompetitive
tenders were accepted in full at the average yield, 8.21 percent, price 99.846. These totaled $1,326 million. Competitive
tenders accepted from private investors totaled $8,701
until
1
million.
In addition to the $10,001 million of tenders accepted in
the auction process, $825 million was accepted from Federal
Reserve banks as agents for foreign and international
monetary authorities, and $3,830 million was accepted from
Federal Reserve banks for their own account.
The notes of Series A-2000 were dated February 15,
due February 15, 2000, with interest payable on
August 15 and February 15 until maturity. An interest rate of
8-1/2 percent was set after the determination as to which
1990,
tenders were accepted on a yield auction basis.
In
addition to the $10,027 million of tenders accepted
in
$677 million was awarded to Federal
Reserve banks as agents for foreign and international
monetary authorities. An additional $539 million was accepted from Federal Reserve banks for their own account.
the auction process,
notes were received until 1 p.m. EST,
and totaled $23,943 million, of which $10,013
million was accepted at yields ranging from 8.58 percent,
price 99.470, up to 8.59 percent, price 99.404. Tenders at
the high yield were allotted 60 percent. Noncompetitive
tenders were accepted in full at the average yield, 8.59
Tenders
February
7,
for the
43
TREASURY FINANCING OPERATIONS, JANUARY-MARCH
percent, price 99.404.
These
totaled
$565
Competi-
million.
tenders accepted from private investors totaled $9,448
tive
million.
In
addition to the $10,013 million of tenders accepted
the auction process, $200 million
in
The notes of Series A-2000 may be held in STRIPS
The minimum par amount required is $400,000.
February 15,
February 15
was
form.
2020 were dated February 15, 1990, due
2020, with interest payable on August 15 and
of
until maturity.
An
interest rate of 8-1/2 percent
set after the determination as to
which tenders were
accepted on a yield auction basis.
bonds were received until 1 p.m. EST,
and totaled $18,441 million, of which $10,001
million was accepted at yields ranging from 8.48 percent,
price 100.216, up to 8.53 percent, price 99.677. Tenders at
the high yield were allotted 54 percent. Noncompetitive
tenders were accepted in full at the average yield, 8.50 percent, price 100.000. These totaled $442 million. Competitive
tenders accepted from private investors totaled $9,559
Tenders
February
addition to the $10,002 million of tenders accepted
the auction process,
$840
million
in
was accepted from Federal
Reserve banks as agents for foreign and international
monetary authorities, and $913 million was accepted from
Federal Reserve banks for their own account.
was accepted from Federal
Reserve banks as agents for foreign and international
monetary authorities, and $450 million was accepted from
Federal Reserve banks for their own account.
The bonds
In
1990
for the
8,
The notes of Series K-1995 were dated March 1, 1990,
due May 15, 1995, with interest payable on November 15
and May 15 until maturity. An interest rate of 8-1/2 percent
was set after the determination as to which tenders were
accepted on a yield auction basis.
Tenders for the notes were received until 1 p.m. EST,
February 22, and totaled $30,131 million, of which $8,045
million was accepted at yields ranging from 8.52 percent,
price 99.847, up to 8.53 percent, price 99.805. Tenders at
the high yield were allotted 52 percent. Noncompetitive
tenders were accepted in full at the average yield, 8.53 percent, price 99.805. These totaled $464 million. Competitive
tenders accepted from private investors totaled $7,581
million.
In
addition to the $8,045 million of tenders accepted
was awarded
the auction process, $220 million
Reserve banks as agents
monetary authorities.
for
foreign
and
in
to Federal
international
million.
52-Week
In
Bills
addition to the $10,001 million of tenders accepted in
the auction process,
Reserve banks
$226
for their
million
own
was accepted from Federal
The bonds of 2020 may be held in STRIPS
minimum par amount required is $400,000.
On
February 2 tenders were invited for approximately
364-day Treasury bills to be dated February
15, 1990, and to mature February 14, 1991. The issue was
to refund $9,088 million of maturing 52-week bills and to
raise about $400 million of new cash. Tenders were opened
on February 13. They totaled $36,641 million, of which
$9,568 million was accepted, including $1,310 million of noncompetitive tenders from the public and $2,870 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 7.42 percent.
$9,500
account.
form.
The
Auction of 2- Year and S-Year 2-Month Notes
On February 14 the Treasury announced that
auction $10,000 million of 2-year notes of Series
it
would
W-1992
million of
and $8,000
million of 5-year 2-month notes of Series K-1995
$9,850 million of publicly held 2-year notes maturFebruary 28, 1990, and to raise about $8,150 million of
to refund
ing
Cash Management
Bills
new cash.
The notes of Series W-1992 were dated February 28,
1990, due February 29, 1992, with interest payable on the
last day of August and February until maturity. An interest
rate of 8-1/2 percent was set after the determination as to
which tenders were accepted on a yield auction basis.
Tenders for the notes were received until 1 p.m. EST,
February 21, and totaled $26,337 million, of which $10,002
million was accepted at yields ranging from 8.48 percent,
price 100.036, up to 8.50 percent, price 100.000. Tenders at
the high yield were allotted 83 percent. Noncompetitive
tenders were accepted in full at the average yield, 8.50 percent, price 100.000. These totaled $1,189 million. Competitive tenders accepted from private investors totaled $8,813
million.
On February 27 tenders were invited for approximately
$10,000 million of 52-day bills to be issued March 5, 1990,
representing an additional amount of bills dated October 26,
1989, maturing April 26, 1990. The issue
cash. Tenders were opened on March
was
1.
to raise
They
new
totaled
$52,010 million, of which $10,177 million was accepted. The
average bank discount rate was 7.95 percent.
MARCH
Auction of 2-Year and 4- Year Notes
On March
would auc21 the Treasury announced that
$10,000 million of 2-year notes of Series X-1992 and
$8,000 million of 4-year notes of Series M-1 994 to refund
tion
it
44
TREASURY FINANCING OPERATIONS, JANUARY-MARCH
$16,665 million of Treasury notes maturing March 31 and
raise about $1,325 million of newcasfi.
to
until
1
of
million.
In
addition to the $10,085 million of tenders accepted
$607
million
in-
In
addition to the $8,026 million of tenders accepted
the auction process, $242 million
in
was accepted from Federal
Reserve banks as agents for foreign and international
monetary authorities, and $896 million was accepted from
Federal Reserve banks for their own account.
p.m. EST,
which $10,085
million was accepted at yields ranging from 8.58 percent,
price 99.856, up to 8.59 percent, price 99.838. Tenders at
the high yield were allotted 76 percent. Noncompetitive
tenders were accepted in full at the average yield, 8.59 percent, price 99.838. These totaled $1,569 million. Competitive
tenders accepted from private investors totaled $8,516
the auction process,
Competitive tenders accepted from private
million.
vestors totaled $7,172 million.
Tfie notes of Series X-1992 were dated April 2, 1990,
due March 31, 1992, with interest payable on September 30
and March 31 until maturity. An interest rate of 8-1/2 percent
was set after the determination as to which tenders were
accepted on a yield auction basis.
Tenders for the notes were received
March 27, and totaled $28,786 million,
$854
1990
in
was accepted from Federal
Reserve banks as agents for foreign and international
monetary authorities, and $1,750 million was accepted from
Federal Reserve banks for their own account.
52-Week
On March
2 tenders were invited for approximately
364-day Treasury bills to be dated March
15, 1990, and to mature March 14, 1991. The issue was to
refund $9,056 million of maturing 52-week bills and to raise
about $700 million of new cash. Tenders were opened on
March 8. They totaled $24,936 million, of which $9,750 million was accepted, including $1,007 million of noncompetitive
tenders from the public and $2,730 million of the bills issued
to Federal Reserve banks for themselves and as agents for
$9,750
million of
foreign
and
$124
accepted on a yield auction basis.
million
for foreign
cash.
The notes of Series M-1994 were dated April 2, 1990,
due March 31, 1994, with interest payable on September 30
and March 31 until maturity. An interest rate of 8-1/2 percent
was set after the determination as to which tenders were
lion was accepted at a yield of 8.58 percent, price 99.734,
which represented the full range of accepted bids. Competitive tenders at the 8.58-percent yield were allotted 74 percent. Noncompetitive tenders were accepted in full at the
average yield, 8.58 percent, price 99.734. These totaled
international
was issued
and
monetary
international
Cash Management
On March 27
authorities.
An
additional
Reserve banks as agents
monetary authorities for new
to Federal
The average bank discount
rate
was 7.76
percent.
Bills
tenders were invited for approximately
16-day bills to be issued April 3, 1990,
representing an additional amount of bills dated August 15,
1989, maturing April 19, 1990. The issue was to raise new
cash. Tenders were opened on March 29. They totaled
$51,415 million, of which $13,004 million was accepted. The
average bank discount rate was 8.15 percent.
$13,000
Tenders for the notes were received until 1 p.m. EST,
March 28, and totaled $39,684 million, of which $8,026 mil-
Bills
million of
45
PUBLIC DEBT OPERATIONS
INTRODUCTION
52-week bill is a reopening of the existing 52-week
low, and average yields on accepted tenders and the
Background
The Second Liberty Bond Act (31 U.S.C. 3101, at seq.) provides the Secretary of the Treasury with broad authority to borrow
and to determine the terms and conditions of issue, conversion,
payment, and interest rate on Treasury securities. Data
have been published
maturity,
the "Public Debt Operations" section, which
the Treasury Bulletin in
in
are able to participate
Table PDO-l.-Maturity Schedule of Interest-Bearing Marketable
Public Debt Securities Other than Regular Weekly and S2-Week
All
Bills
unmatured Treasury notes and bonds are
listed in maturity
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.
total
securities.
in offerings of new marketable Treasury
Noncompetitive bids are awarded at the average yield on
accepted competitive
Table PDO-2."Ofrcrings of Bills
Regular Weekly Treasury
weekly auctions of 13- and 26-week bills and
bills every fourth week are presented in table
PDO-2. Treasury bills mature each Thursday. New issues of 13week bills are reopenings of 26-week bills. The 26-week bill issued
every fourth week to mature on the same Thursday as an existing
results of
Bills
The results of auctions of marketable Treasury securities, other
than weekly bills, are listed in the chronological order of the auction
dates over approximately the most recent 2 years. This table includes notes and bonds presented in table PDO-1, 52-week bills in
table PDO-2, and data for cash management bills. Treasury offers
cash management bills from time to time to bridge temporary or
seasonal declines in the cash balance. Cash management bill
maturities generally coincide with the maturities of regular issues of
Treasury bills.
Table PDO-4.-AIIotnients by Investor Classes for Public Marketable
A and B
Data on allotments of marketable Treasury securities by invesare presented in chronological order of the auction date for
approximately the most recent 2 years. These data have appeared in
the Treasury Bulletin since 1956. Tenders in each Treasury auction
of marketable securities other than weekly auctions of 13- and 26week bills are tallied by the Federal Reserve banks into investor
classes described in the footnotes to the table.
tor class
The
bids.
Table PDO-3."Public Offerings of Marketable Securities Other than
Securities, Parts
auctions of 52-week
high,
in
some
order, beginning with the earliest maturity.
The
bids is presented, along with the dollar value of awards on a
competitive and a noncompetitive basis. The Treasury accepts noncompetitive tenders of up to $1 million in each auction of Treasury
securities in order to assure that individuals and smaller institutions
form since its inception in 1939, pertain only to marketable Treasury securities, currently bills, notes, and
bonds. Treasury bills are discount securities that mature in 1 year or
less, while Treasury notes and bonds have semiannual interest payments. New issues of Treasury notes mature in 2 to 10 years, and
bonds mature in over 10 years from the issue date. Each marketable
Treasury security is listed in the Monthly Statement of the Public
Debt of the United States.
Treasury
bill.
dollar value of
46
PUBLIC DEBT OPERATIONS
Table PDO-1 .--Maturity Schedule of Interest-Bearing Marketable Public Debt Securities Other than
Regular Weekly and 52-Week Treasury Bills Outstanding, Mar. 31, 1990
[In
millions of dollars. Source: Monthly
Slalement
of The Public
Debt
of Ihe Untied Slates,
and Office
of
Market Finance]
Amount
Date
of final maturity
Description
of maturities
47
PUBLIC DEBT OPERATIONS
Table PDO-1 .--Maturity Schedule of Interest-Bearing Marketable Public Debt Securities Other than
Regular Weekly and 52-Week Treasury Bills Outstanding, Mar. 31, 1990-Continued
[In
millions of dollars]
Amount
of maturities
Held by
Date
of final
Govl
accounts and
U.S.
maturity
Descriplion
Federal Reserve banks
All
other
investors
1992-Con.
Aug. 15, 87-92
Aug. 1
Aug. 15
Sept. 30
Oct.
1
15
15
15
Nov.
Nov.
Nov.
Dec.
4-l/4%bond
7-7/8%-T note
7-
1/4% bond
8-3/4%-P note
9-3/4%-G note
10-1/2%-C note
8-3/8%-L note
7-3M%-U
note
9-1/8%-Q note
31
304
08/15/62
08/15/89
07/08/77
09/30/88
11/01/85
11/15/82
09/03/87
11/15/89
01/03/89
1.360
13.523
1.504
8.000
6.287
4.331
8.549
1.056
2.549
14.311
3.634
8,287
645
01/15/86
02/15/83
12/01/87
02/15/90
01/17/63
01/10/73
01/06/78
03/31/89
04/03/86
05/16/83
03/03/88
06/30/89
07/07/86
08/15/73
07/11/78
08/15/83
06/01/88
10/02/89
11/03/86
11/15/83
09/01/88
10/10/78
01/02/90
6.515
5.162
8,256
14.744
66
320
6,195
781
4,381
51
8,205
10,909
92
605
97
300
115
10.974
1.412
7.395
6.190
4,031
8.434
10,677
7,642
Total..
1993
Jan.
8-3/4%-E note
10-7/8%-A note
1
15
15
15
Feb.
Feb.
Feb.
Feb.
15.
1/4%-J note
8-3/8%-S note
8-
88-93
6-3/4% bond
7-7/8% bond
9-5/8%-N note
Feb.15
Feb.15
Mar. 31
Apr, 15
May 15
May 15
7-3/8%-F note
10-1/8%-B note
7-5/8%-K note
8-1/8%-P note
7-1/4%-G note
June 30
July 15
Aug.
Aug.
Aug.
Aug.
15.
4%bond
88-93
15
15
15
7-1/2%bond
8-5/8%bond
1-7/8%-C note
8-3/4%-L note
8-1/4%-Q note
7-1/8%-H note
11 -3/4%-D note
9%-!^ note
8-5/8% bond
7-5/B%-H note
1
Sept. 30
Oct. 15
Nov. 15
Nov. 1
Nov. 15
Dec. 31
627
1.501
9,204
6,511
5,100
8,096
8.393
6.757
1.814
1.768
6.593
7,370
8,745
7.013
12.478
7.518
1.509
8,974
3.835
42
109
137
822
75
567
50
400
58
878
24
518
1,364
8,382
6,436
4,533
8,046
7,993
6,699
936
164
1.604
1,606
4.987
7.320
8.379
6,915
50
366
98
2.058
165
685
10,420
7,518
1,344
8,289
13.317
1994
Jan.
Feb.
Feb.
Apr.
15
15
15
15
May
May
May
15.
July
15
15
1
Aug. 15
Aug. 15
Aug. 15
Oct. 15
Nov. 15
Nov. 15
Nov. 15
7%-D
note
9%bond
8-7/B%-H note
89-94
7%-E note
4-l/8%bond
13-1/8%-A note
9-1/2%-J note
8%-F note
12-6/8%-B note
8-3/4%bond
8-5/8%-K note
9-1/2%-G note
21 1-5/8%-C note
10-1/8% bond
B-1/4%-L note
01/05/87
01/11/79
12/01/88
04/01/87
04/18/63
05/15/84
03/03/89
07/06/87
08/15/84
07/09/79
06/02/89
10/15/87
11/15/84
10/18/79
09/01/89
7,295
3,010
7,806
7.336
436
5.669
8,532
7,221
6,300
1,506
7,842
7,074
6,659
1,502
8,272
154
100
75
330
751
25
165
827
52
95
1.005
71
7.141
2.910
7.806
7.261
106
4.918
8.507
7.056
5.473
1.454
7.842
6.979
5.654
1.431
8.272
86.460
1995
Jan. 1
Feb. 15
Feb. 15
Feb. 15
Feb. 15
Apr. 15
May 15
May 15
May 15
May 15
July 15
Aug. 15
8-5/8%-E note
3%bond
10-1/2% bond
211-1/4%-Anote
7-3/4%-J note
8-3/8%-F note
12-S8% bond
10-38%bond
1-1/4%-B note
8- 1/2%-K note
21
8-7/8%-G note
210-1/2%-C note
01/15/88
02/15/55
01/10/80
02/15/85
12/01/89
04/1 5/88
04/08/80
07/09/80
05/1 5/85
03/01/90
07/1 5/88
08/15/85
7.343
135
1.502
6.934
8.344
7.018
1.503
1.504
7.127
8.293
6,805
7,956
38
57
7.305
46
1.456
5,851
1.083
78
20
294
372
62
796
8,324
6.724
5
8.288
6.692
6,906
113
1,050
1.131
1.442
6,331
48
PUBLIC DEBT OPERATIONS
Table PDO-1. "Maturity Schedule of Interest-Bearing Marketable Public Debt Securities Other than
Regular Weekly and 52-Week Treasury Bills Outstanding, Mar. 31, 1990-Continued
[In
millions of dollars]
Amount
of maturiiies
Held by
Dale
of final maturity
U.S.
Description
Total
Govt
accounts and
Federal Reserve banks
All
other
investors
1995-Con.
Oct. 15
8-5/8%-H note
Nov. 15
Nov. 15
29-1/2%-Dnote
11-1/2%bond
10/17/88
10/14/80
11/15/85
7,195
1.482
7.319
286
32
273
80,460
Total..
6,909
1,450
7,046
75,933
1996
Jan. 15
9-1/4%-E note
28-7/8%-A note
iB-7/8%-B note
9-3/8%-F note
27-3/8%-C note
7-7/8%-G note
Feb. 15
Feb. 15
Apr. 15
May 15
July 15
Oct. 15
Nov. 15
8%-H note
27-1M%-D
note
01/17/89
02/15/86
02/15/86
04/17/89
05/15/86
07/1 7/89
10/16/89
11/15/86
7.421
8.412
163
7.782
20.086
7.725
7.989
20.259
212
484
7,209
7,928
110
163
7,672
1,775
18,311
286
126
715
7,439
7,863
19,544
Total..
76,129
1997
Jan. 15
8%-D
lulay 15
Aug. 15
Nov. 15
28-1/2%-A note
28-5/8%-B note
28-7/8%-C note
note
01/16/90
05/15/87
08/15/87
11/15/87
7,852
9,921
9,363
9,808
116
294
202
360
7,736
9,627
9.161
9.448
35,972
Total..
1998
Feb. 15
May
May
28-1/8%-A note
29%-B note
1
15.
93-98
Aug. 15
Nov. 15
Nov. 15
7%bond
29-1/4%-C note
28-7/8%-D note
3-1/2%bond
02/15/88
05/1 5/88
05/15/73
08/15/88
11/15/88
10/03/60
9,159
9,165
150
9.009
8.765
11,343
9,903
400
228
375
300
10.968
9,603
315
162
153
9.720
10.047
2.378
10,164
10,774
225
200
1,417
9,495
9,847
961
9,764
10.374
43,083
2,642
40,441
10,673
2,749
4,612
450
691
2,078
10,223
2,058
2,534
18,034
3,219
14.815
1,501
161
1,750
1,485
1,753
1.753
162
741
199
163
1,340
1.588
692
464
Total..
1999
Feb. 15
May 15
May
15,
94-99
Aug. 1
Nov. 15
28-7/8%-A note
29-1/8%-B note
8-1/2% bond
2
8%-C
note
27-7/8%-D note
02/1 5/89
05/15/89
05/15/74
08/15/89
11/15/89
Total..
400
400
2000
Feb. 15
Feb. 15, 95-00
Aug.
15.
95-00
8-1/2%-A note
7-7/8%bond
8-3/8%bond
02/15/90
02/18/75
08/15/75
Total..
2001
Feb. 15
May 15
Aug. 15, 96-01
Aug. 15
Nov. 15
11 -3/4% bond
13-1/8% bond
8% bond
13-3/8%bond
15-3/4%bond
Total..
01/12/81
04/02/81
08/16/76
07/02/81
10/07/81
744
1,554
1,590
6.816
49
PUBLIC DEBT OPERATIONS
Table PDO-1 .-Maturity Schedule of Interest-Bearing Marketable Public Debt Securities Other than
Regular Weekly and 52-Week Treasury Bills Outstanding, Mar. 31, 1990-Continued
[In
millions of dollars]
Amount
of maturilies
Held by
Date
of final maturity
U.S.
Description
Govl
All
accounts and
Federal Reserve banks
other
investors
1,759
2.753
96
173
1.663
2,580
4,234
1,495
1,539
5.729
1.804
2,103
5.230
1.656
7.333
2,410
Issue date
Total
01/06/82
09/29/82
2002
14-1/4%bond
tl-SSVobond
Feb. 15
Nov. 15
Total
2003
10-3'4%
10-3/4%
11-1/8%
11-7/8%
Feb. 15
May 15
Aug. 15
Nov. 15
bond
bond
bond
bond
01/04/83
Total
2004
May 15
Aug. 15
Nov. 15
12-3/8%bond
13-3'4%bond
21
1-5/8% bond
Total
2005
May
May
15.
00-05
8-l/4%bond
212%bond
15
210-3/4%bond
Aug. 15
Total
2006
29-3'8%bond
Feb. 15
Total
2007
Feb. 15. 02-07
Nov, 15. 02-07
7-5/8%bond
7-7/8%bond
02/1 5/77
11/15/77
Total
265
2008
Aug.
Nov.
15.
0308
15,
03-08
8-3/8%bond
8-3/4%bond
Total
08/15/78
11/15/78
,
754
2009
May
Nov.
15.
15.
04-09
04-09
9-l/8%bond
10-3/8%bond
05/15^79
11/15/79
4.606
788
4.201
1,026
50
PUBLIC DEBT OPERATIONS
Table PDO-1 .--Maturity Schedule of Interest-Bearing Marketable Public Debt Securities Other than
Regular Weekly and 52-Week Treasury Bills Outstanding, Mar. 31, 1990"Continued
[In
millions of dollars]
Amount
of maturities
Held by
Date
of final
maturity
U.S.
Description
issue date
Total
02/15/80
05/15/80
11/17/80
2.494
2.987
4.736
Govl
All
accounts and
Federal Reserve banks
other
investors
804
1,690
1,822
3.763
2010
Feb. 15,05-10.
May
05-10.
Nov. 15.05-10
15.
ll-3'4%bond
10% bond
12-3/4%bond
1,165
973
2.942
Total
2011
May
15, 06-11
Nov. 15.06-11
.
13-7/8%bond
14%bond
05/15/81
11/16/81
4.609
4.901
966
687
7.867
Total
2012
Nov. 15.07-12
10-3^8% bond
11/15/82
1.022
1.022
Totaf
2013
Aug.
15.
08-13
12% bond
08/15/83
14.755
Total
2014
May 15. 09-14.
Aug. 15.09-14
Nov. 15.09-14
13- 1/4% bond
12-l/2%bond
211-3/4%bond
05/15/84
08/15/84
11/15/84
Total
2015
Feb. 15
Aug. 15
Nov. 15
211-l/4%bond
21 0-5/8% bond
29-7/8% bond
02/15/85
08/15/85
11/15/85
Total
2016
Feb. 15
t^ay 15
Nov. 15
29-1/4% bond
27-l/4%bond
27-l/2%bond
02/15/86
05/15/86
11/15/86
Total
2017
May 15
Aug. 15
28-3/4% bond
28-7/8% bond
05/1 5/87
08/15/87
Total
2018
May
15
Nov. 15
29-l/8%bond
29% bond
Total
3.653
4.214
05/15/88
11/15/88
51
PUBLIC DEBT OPERATIONS
Table PDO-1. --Maturity Schedule of Interest-Bearing Marketable Public Debt Securities Other than
Regular Weekly and 52-Week Treasury Bills Outstanding, Mar. 31, 1990-Continued
[In
Date
2019
Feb. 15
Aug. 15
2020
Feb. 15
.
of final maturity
millions of dollars]
52
PUBLIC DEBT OPERATIONS
Table PD0-2."0fferlngs of
[Dollar
amounls
in millions.
Description of
new
Source: Monlhly Slalement
of the Public
Debt
Amounls
issue
Bills
of The
United StaTes and allotments]
of bids
accepted
Arrxjunt
Maturity
Number
date
days
to
maturity
of
Amount
of
bids
tendered
Total
On com-
On noncom-
amount
petitive basis
petilive basis
^
"
maturing on
issue dale
of
new
offering
Regular weekly:
(13-week and 26-week)
1989 -Dec.
1990- Jan.
Feb.
7
Total
unmatured
issues outstanding after
new issues
53
PUBLIC DEBT OPERATIONS
Table PD0-2.--0fferings of Bills-Continued
Regular weekly:
54
PUBLIC DEBT OPERATIONS
Table PD0-3.--Public Offerings of Marketable Securities Other than Regular Weekly Treasury
[Dollar
Auction
amounls
in millions.
Source: Bureau
of the Public Debt]
Bills
55
PUBLIC DEBT OPERATIONS
Table PD0-3.--Public Offerings of Marketable Securities Other than Regular Weel<ly Treasury Bills-Con.
[Dollar
amounts
in
millions]
56
PUBLIC DEBT OPERATIONS
Table PD0-3.--Public Offerings of Marketable Securities Other than Regular Weekly Treasury Bills-Con.
'^ Yields accepled ranged from
average
at
8.84%
8.83%
(price 99.856)
up
to
8.85%
(price 99.820) with the
average
8.70%
(price 99.619)
up
to
B.72%
(price 99.537) with the
average
8.25%
(price 100.000)
to
8.27%
(price 99.964) with the
average
(price 99.838).
^° Yields accepted ranged from
average
^'
at
8.72%
(price 99.537).
Yields accepted ranged from
up
at 8.26% (price 99.982).
^^ Yields accepted ranged from 8.19% (price 99.782) up to
average
at 8.19% (price 99.782).
^^ Yields accepled ranged from 7.88%
8.20%
(price 99.749) with the
^''
at
7.89%
7.73%
average
at
at
7.93%
8.03%
up
to
7.90%
(price 99.868) with the
(price 100.036)
up to 7.76% (price 100.000) with
(price 99.882)
up to 7.94%
(price 99.829) with the
8.02%
(price 99.864)
up
to
8.05%
(price 99.661) with the
^^ Yields accepted ranged from
average
average
average
to
8.15%
(price 99.721) with the
average
at 8.14% (price 99.833).
^° Yields accepted ranged from 8.35%
(price 99.819)
up
to
8.38%
(price 99.765) with the
average
at 8.37% (price 99.783).
^' Yields accepted ranged from 8.24%
(price 99.976)
up
to
8.26%
(price 99.893) with the
average
average
average
^°
^'
(price 99.893).
Yields accepted ranged from
average
at
8.39%
8.37%
(price 100.009)
up
to
8.40%
(price 99.955) with the
at
at
at
at
at
at
average
at
at
at 8.35% (price 99.666).
'^ Yields accepted ranged (rom 8.07% (price 99.631) up to
8.08%
(price 99.579) with the
average
at
average
''^
at
8.08%
7.72%
(pries 99.827)
up
to
7.75%
(price 99.772) with the
7.76%
(price 99.974)
up
to
7.78%
(price 99.921) with the
at 7.77% (price 99.947).
^^ Yields accepted ranged from 7.93% (price 99.625) up to
7.94%
(price 99.557) with the
Yields accepted ranged from
at 7.74% (price 99.791).
^^ Yields accepted ranged from
™ Yields
^^
(price 99.579).
7.69%
(price 99.882)
up
to
7.73%
(price 99.809) with the
(price 99.949)
up
to
7.65%
(price 99.915) with the
to
8.02%
(price 99.894) with the
(price 99.846).
7.64%
(price 99.915).
8.00%
(price 100.000)
The
up
(price 99.894).
8.21%
(price 99.846).
8.43%
8.42%
up to 8.44%
(price 99.831) with the
ranged from 8.58% (price 99,470) up to 8.59%
(price 99.404) with the
(price 99.883)
(price 99.857).
8.50%
8.50%
(price
1
8.53%
up
8.53%
to
(price 99.677) with the
00.000).
ranged from 8.48%
(price 100.036)
up
to
up
to
8.50%
(price 100.000) wiih the
(price 100.000).
Yields accepled ranged Irom
average
up
8.02%
™ Yields accepled
(price 99.666) with the
average
(price 99.857).
at 8.59% (price 99.404).
'^ Yields accepled ranged Irom 8.48% (price 100.216)
8.35%
(price 99.699)
7.65%
to
accepled ranged from 8.19% (price 99.882) up to 8,21% (price 99.846) with Ihe
to
8.34%
7.71%
" Yields accepted
"
(price 99.973).
Yields accepted ranged from
7.77%
Yields accepled ranged from
up
8.26%
(price 99.815) with the
at
^ Yields
(price 99.944)
at
(price 99.927) with the
up
(price 99.945).
Yields accepled ranged from
average
8,13%
average
7.79%
7.78%
Yields accepted ranged from
average
'^
(price 99.796).
102.992) up to 7.87% (price 102.875) with the
accepted ranged from 7.76% (price 99.899) up to 7.78%
at
^ Yields
''
(price 99.856).
^^ Yields accepted ranged from
(price 99.557).
at 7.87% (price 102.875).
^' Yields accepted ranged from 7.76% (price 99.982)
^°
the average at 7.75% (price 100.000).
^^ Yields accepted ranged Irom 7.92%
average
(price 99.974)
(price 99.921).
Yields accepled ranged Irom
7.94%
*' Yields accepled ranged from
average
average
at
" Yields accepted ranged from 7.86% (price
8.52%
(price 99.847)
8.53%
(price 99.805) with the
(price 99.805).
accepted ranged from 8.58% (price 99.856) up to 8,59% (price 99.838) with Ihe
8.59%
low, high,
(price 99.838).
and average
yield
was 8.58%
(price 99.734).
Note. "All notes and bonds, except lor foreign-targeted issues,
average
auction through conpetilive bidding only.
average
were
sold at auction
through competitive and noncompetitive bidding. Foreign-targeted issues were sold at
57
PUBLIC DEBT OPERATIONS
Table PDO-4.--Aliotments by Investor Classes for Public Marketable Securities
Part
A-Otherthan
[In
millions o( dollars]
Bills
58
PUBLIC DEBT OPERATIONS
Table PDO-4.--Allotments by Investor Classes for Public Marketable Securities--Con.
Part B--Bills Other than Regular Weekly Series
[Dollar
amounts
in millions]
59
U.S.
SAVINGS BONDS AND NOTES
Series EE bonds, on sale since Jan. 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-D were sold from Mar. 1, 1935, through Apr. 30, 1941.
Series E was on sale from May 1, 1941, through Dec. 31, 1979
(through June 1980 to payroll savers only). Series F and G were sold
from IVIay 1, 1941, through Apr. 30, 1952. Series H was sold from
June 1, 1952, through Dec. 31, 1979. Series HH bonds were sold for
cash from Jan. 1, 1980, through Oct. 31, 1982. Series J and K were
sold from l^ay
1
,
1952, through Apr 30, 1957.
U.S. savings notes were on sale May 1 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
Bulletins of March 1967 and June 1968; and the Annual Report of
the Secretary of the Treasury for fiscal year 1974.
Table SBN-1.--Sales and Redemptions by Series, Cumulative through Mar. 31, 1990
[In
millions of dollars.
Source: Monthly Slalemenl
ol
Ihe Public Debt of the United Slates; Market Analysis Section, United Slales Savings
Bonds
Divisionl
Amount oulslanding
Accrued
discount
Series
Sales plus
accrued
discount
Redemptions
^
Interest-
Matured
bearing debt
non-inlerest-
bearing debt
Savings bonds;
Series A-D^
3.949
SeriesE, EE, H,
Series F and G
Series J and
Savings notes
Tola!
K
andHH.
60
U.S.
SAVINGS BONDS AND NOTES
Table SBN-3.--Sales and Redemptions by Period, Series
[In
millions of dollars. Source: Monthly
Statement
of the Public
Debt
of the
Sales plus
accrued
EE, H, and
HH
United States: Market Analysis Section, United Stales Savings Bonds Division]
Redemptions
Accrued
discount
Period
E,
Total
discount
Sales
Accrued
price
discount
Exchange of
E bonds for
H and HH bonds
Amount outstanding
Interest-
Matured
bearing debt
non-interest-
bearing debt
Series E and
Fiscal years:
1941-87
1988
1989
241,724
7,264
7,923
Calendar years:
1941-87
1988
1989
1989 -Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1990- Jan
Feb
Mar
243,380
7,407
7,644
713
634
695
623
607
622
528
589
541
593
826
652
723
100,916
EE
61
OWNERSHIP OF FEDERAL SECURITIES
INTRODUCTION
Federal securities presented in these tables comprise public
debt securities issued by the Treasury and debt issued by other
Federal agencies under special financing authorities. See the Federal debt (FD) series of tables for a more complete description of the
Federal debt.
Table OFS-I.-Distribution of Federal Securities by Class of Investors
and Type of Issues
Holdings of Treasury marketable and nonmarketable securities
and of debt issued by other Federal agencies are presented for Government accounts, the Federal Reserve banks, and private investors. Government account holdings largely reflect investment by the
social security and Federal retirement trust funds. The Federal Reserve banks acquire Treasury securities in the market as a means of
executing monetary policy.
Table OFS-2.--Estiniated Ownership of Public Debt Securities Held by
Private Investors
Privately held Treasury securities are those held by investors
Government accounts and Federal Reserve banks.
Treasury obtains information on private holdings from a variety of
sources, such as data gathered by the Federal financial institution
regulatory agencies. State and local holdings and foreign holdings
include special issues of nonmarketable securities to municipal entities and foreign official accounts, as well as municipal and foreign
official and private holdings of marketable Treasury securities. Data
on foreign holdings of marketable Treasury securities are presented
in the capital movements tables in the Treasury Bulletin. See the
other than the
footnotes for descriptions of the investor categories.
62
OWNERSHIP OF FEDERAL SECURITIES
Table OFS-1 .--Distribution of Federal Securities by Class of Investors and Type of Issues
[In
millions of dollars.
Source: Financial Management Service]
63
OWNERSHIP OF FEDERAL SECURITIES
Table 0FS-2.--Estimated Ownership of Public Debt Securities by Private Investors
[Par values
^
in billions of dollars.
Source: Office
of
Market Finance]
Nonbank
End of
month
Total
Commer-
privately
cial
held
banks
Total
ings
Other
secu-
bonds
rities
investors
Insurance
Money
Corpora-
State
Foreign
companies
market
funds
tions
and
and
local
national
govern-
ments
1982- Mar
June
Sept
Dec
1983- Mar
June
Sept
733.3
740.9
791.2
848.4
116.1
116.1
617.2
624.8
673.4
717.0
112.5
117.8
131.4
115.6
116.5
67.5
67.4
67.6
68.3
45.0
46.7
48.0
48.2
35.8
38.6
44.1
906.6
948.6
982.7
753.4
777.0
806.4
833.8
116.7
121.3
129.0
133.4
68.8
69.7
70.6
71.5
47.9
51.6
58.4
61.9
49.6
64.0
58.5
65,3
44.8
28.3
8B0.1
72.2
72.9
73.7
74.5
64.0
69.3
68.7
69.3
66.1
19.4
14.9
13.6
25.9
145.1
75.4
76.7
78.2
79.8
69.7
72.0
73.2
75.0
66.5
81.4
83.8
76.4
75.7
70.9
70.4
84.0
88.6
96.4
105.6
29.9
22.8
24.9
28.6
68.1
107.8
104.0
104.6
104.9
18.8
20.6
15.5
114.1
32.1
25.7
22.4
38.6
42.6
Dec
1.022.6
153.2
171.6
176.3
188.8
1984 -Mar
1.073.0
1.102.2
1.154.1
1.212.5
192.9
185.4
184.6
186.0
1.026.5
136.2
142.2
142.4
143.8
1.254.1
1.292.0
1.338.2
1.417.2
197.8
201.6
203.6
198.2
1.056.3
1.090.4
1.134.6
1.219.0
148.7
151.4
154.8
1.473.1
1.502.7
1.553.3
1.602.0
201.7
200.6
200.9
203.5
1.271.4
1.352.4
1.398.5
157.8
159.5
158.0
162.7
1.641.4
r1.658.1
rl.680.7
rl.731.4
199.9
199.4
205.2
201.5
1.441.5
1.458.7
1.475.5
1.529.9
162.8
165.2
167.0
172.4
94.7
96.8
98.5
101.1
r71.3
r1.779.6
r1.786.7
rl.821.2
r1.858.5
203.3
198.3
199.2
193.8
1.576.3
1.588.4
1.622.0
1.664.7
178.2
104.0
106.2
107.8
109.6
r74.2
r75.9
r77.6
r79.2
103.9
103.8
15.2
13.4
105.1
11.1
107.3
11.8
200.9
r186.7
r174.8
r180.6
1.702.5
1.722.4
1.783.5
1.835.2
202.8
210.2
214.2
112.2
114.0
115.7
117.7
r90.6
r96.2
r96.4
r96.5
107.4
106.3
r105,B
Dec
r1.903.4
r1.909.1
r1.958.3
r2.015.8
p107.9
13.0
11.3
12.9
14.4
1990- Mar
2.115.1
p182.0
1.933.1
219.0
119.9
p99.1
p108.0
p31.3
June
Sept
Dec
1985 -Mar
June
Sept
Dec
1986 -Mar
June
Sept
Dec
1987-Mar
June
Sept
Dec
1988- Mar
June
Sept
Dec
1989-Ma;
June
Sept
916.8
969.5
1.302.1
182.1
185.4
188.8
212.1
87.1
92.3
68.4
68.5
64.2
56.5
64.5
69.1
71.4
78.5
22.1
22.8
26.7
24.8
22.7
25.1
14.6
16.9
inter-
Other
inves^
tors
64
MARKET YIELDS
INTRODUCTION
The tables and charts in this section present yields on Treasury
marketable securities and compare long-term Treasury market yields
with yields on long-term corporate and municipal securities.
which are discount
bank discount rates at
which Treasury bills trade in the market. The Board of Governors of
the Federal Reserve System also publishes the Treasury constant
maturity data series in its weekly H.I 5 press release.
a consistent data
securities, are the
series. Yields
on Treasury
coupon equivalent
bills,
yields of
Table MY-1. -Treasury Market Bid Yields at Constant Maturities:
Bills, Notes, and Bonds
Table MY-2.--Average Yields of Long-Term Treasury, Corporate, and
presented in the chart that accompanies table MY-1, is based on current market bid quotations on the
most actively traded Treasury securities as of 3:30 p.m. each business day. The Treasury obtains quotations from the Federal Reserve
Bank of New York, which composites quotations provided by five
primary dealers. This yield curve reflects yields based on semiannual
interest payments and is read at constant maturity points to develop
The Treasury
yield curve,
Municipal Bonds
rate is the 30-year constant maturity
MY-1. The corporate and municipal bond
series are developed by the Treasury, using reoffering yields on new
long-term securities rated Aa by Moody's Investors Sen/ice. See the
The long-term Treasury
rate presented in table
footnotes for further explanation.
65
MARKET YIELDS
Table MY-1 .-Treasury Market Bid Yields
at
Constant Maturities:
Bills,
Notes, and Bonds*
[Source: Office ot Market Finance]
Dale
1-yr.
Monthly average
1989 -Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1990- Jan
Feb
Mar
End
of
8.96%
8.73
8.43
8.1S
8.17
8.01
7.89
7.94
7.88
7.90
8.00
8.17
month
1989- Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1990 -Jan
Feb
Mar
8.70
8.92
8.26
8.06
8.16
8.18
8.04
7.84
7.80
8.00
8.04
8.06
917%
2-yr.
3-yr.
5-yr.
7-yr.
10-yr.
30-yr.
66
MARKET YIELDS
67
MARKET YIELDS
Table MY-2.--Average Yields of Long-Term Treasury, Corporate, and Municipal Bonds
[Source: Office
Treasury
Period
30-yr.
bonds
corporate
2
municipal
bonds
d
Market Finance]
Treasury
New Aa
New Aa
Treasury
30-yr.
corporate
municipal
30-yr
bonds
bonds
1
'
New Aa
corporate
?
bonds'^
municipal
bonds^
Treasufy
68
MARKET YIELDS
AVERAGE YIELDS OF LONG-TERM TREASURY,
CORPORATE, AND MUNICIPAL BONDS
Monthly Averages
20
Treasury 30-Yr. Bonds
Aa Municipal Bonds
16
Aa Corporate Bonds
P
e
12
r
c
e
n
8 -
t
4
-
myn
80
81
iii|iiii
82
83
nnr
mill mill Mini i|iiiiiiiiiii|iiiiiiiiiii|iiiiiiiiii mill II
84
85
86
CALENDAR YEARS
87
88
89
90
69
FEDERAL AGENCIES' FINANCIAL REPORTS
INTRODUCTION
Section 114 of the Budget and Accounting Procedures Act of
(31 use. 3513a) requires the Secretary of the Treasury to
prepare reports on the financial operations of the U.S. Government
and provides that each executive agency must furnish the Secretary
of the Treasury such reports and information relating to the agency's
financial condition and operations as the Secretary may require. The
provisions do not apply to the legislative and judicial branches of the
Federal Government; however, these entities are encouraged to
submit the prescribed reports so the Secretary of the Treasury can
prepare comprehensive reports on all the financial activities of the
U.S. Government.
1950
Manual (I TFM 2-4100) sets the criteria
annual and quarterly financial reports in accordance with the Reporting Entities Listing (Bulletin No. 88-11). Reports are provided for six fund types: Revolving funds, trust revolving
funds, 15 major trust funds, all other trust funds, all other activity
combined, and consolidated reports of an organizational unit. The
financial transactions supporting the required reports are to be accounted for on the accrual basis. The Report on Operations can be
submitted on a cash basis under certain circumstances (see TFI^
2-4180.20). Reports are to be prepared from a budgeting and accounting system which contains an integrated data base that is part
of the agency's Integrated financial management system as required
by the Office of Management and Budget (OMB) Circular No. A-127,
The Treasury
for the
submission
Financial
of
I
The required
equities relating to
reports should include
all
programs and
all
assets,
activities
liabilities,
under control
and
of the
reporting entity, except tor the assets of disbursing officers, which
are reported by the Treasury. Reports should include transfer appropriation accounts from other agencies, foreign currencies, opera-
conducted In the territories or overseas, and any monetary
assets or property received, spent, or otherwise accounted for by the
reporting entity. Amounts are reported to the dollar.
tions
Requirements provide that Federal agencies submit to Treasury
reports supplemented by three supporting reports
These reports are: Report on Financial Position (SF 220), Report on
Operations (SF 221), Report on Cash Flow (SF 222), and Report on
Reconciliation (SF 223). The three supporting reports are: Direct and
Guaranteed Loans Reported by Agency and Program Due from the
Public (SF 220-8), Report on Accounts and Loans Receivable Due
from the Public (SF 220-9), and Additional Financial Information (SF
220-1). The report on Direct and Guaranteed Loans is submitted to
Treasury quarterly, and annually for publication in the Treasury Bulletin. The Report on Accounts and Loans Receivable Due from the
Public Is submitted quarterly on a selected basis, and by all entities
annually. Information captured in the SF 220-8 is shown in the folfour financial
lowing table:
Table FA-I.-Direct and Guaranteed Loans
and guaranteed loans to the
Program to support credit activities.
This report reflects the direct loans
public through the Federal Credit
Actual control of credit program levels remains with authorizing legislation and appropriations acts. The report on Direct and Guaranteed
Loans also provides the Federal Reserve Board information to
monitor the flow of funds. An accompanying chart depicts direct
loans and guaranteed loans for the first quarter of fiscal 1 990.
70
FEDERAL AGENCIES' FINANCIAL REPORTS
Table FA-1.— Direct and Guaranteed Loans, Dec. 31, 1989
[In
thousands
of dollars. Source:
SF
220-8; compiled by Financial
Management
Direct loans or credit
Agency and program
I
Maximum
Amount
Maximum
outstanding
authonty
outstanding
authority
U.S. dollar loans
to the President:
Guaranty reserve fund
1.694,721
Foreign military sales credit
Military sales credit to Israel
Emergency
security assistance to Israel
Housing and other
credit guaranty
programs
Alliance for Progress loan fund
Other programs
Overseas
Total
Department
Private Investment Corporation
Funds appropriated
to the President
of Agriculture:
Commodity loans
Rural electnfication and telephone revolving fund
Rural Telephone
Bank
Rural communication development fund
Agncultural credit insurance loans
Rural development insurance loans
Rural housing insurance loans
Self-help housing development loans
Rural development loans
Other Farmers
Home
Administration loans
Total Department of Agriculture
Department of Commerce:
Economic development loans
Coastal energy Impact fund
Federal ship financing fund
Other loans
Total Department of
Commerce
Department of Defense:
Army loans
Total DepeUlment of Defense
Department
of Education:
College housing loans
Higher education
facilities
loan
and insurance fund
Other loans
Total Department of Education
Department of Energy:
Bonneville
Power Administration loans
Other loans
Total Department of Energy
Department of Health and Human Services:
Health professions graduate student loan fund
Medical
facilities
guarantee and loan fund
Student loan program
Other Health Resources and Services Administration loans
Nurse training fund
Health maintenance organization loan fund
Total Department of Health
and Human Sen/ices
.
Guarantees or insurance
Amount
— Wholly owned Government enterprises
Funds appropnated
Service]
71
FEDERAL AGENCIES' FINANCIAL REPORTS
Table FA-1.— Direct and Guaranteed Loans, Dec. 31, 1989- -Con.
Direct loans or credit
Agency and program
I
Maximum
Amount
Maximum
outstanding
authority
outstanding
authority
— Wholly owned Government enterprises
U.S. dollar loans
Department
of
Housing and Urban Development:
5.348.396
Federal Housing Administration fund
Housing
(or the elderly or
handicapped
Low-rent public housing programs
,
Other housing loans
Guarantees
of
mortgage-backed securities
,
Rehabilitation loan fund
Urban renewal programs
,
Community disposal operations fund
Community planning and development loans
Nonprofit sponsor assistance
Flexible subsidy fund
Total Department of Housing
Department of the
and Urban Development
.
Interior
Reclamation projects
Indian aftairs revolving fund for loans
Indian loan guaranty
Guam Power
and insurance fund
Authonty
Virgin Islands construction
Total Department of the Interior
Department
of Labor:
Pension Benefit Guaranty Corporation
Total Department of Labor
Department of State:
Emergencies
in
diplomatic
and consular service
Total Department of State
Department
of Transportation:
Federal Aviation Administration
— purchase of aircraft
—right-of-way revolving fund
Federal Highway Administration
Federal Railroad Administration loans
Urban Mass Transportation loans
Maritime Administration
— Federal
ship financing fund
Total Department of Transportation
Department
Loans
of the Treasury:
governments
to foreign
Total Department of the Treasury
Department
of
Veterans
Affairs:
Loan guaranty revolving fund
Direct loan revolving fund
Service-disabled veterans insurance fund
Veterans reopened insurance fund
Vocational rehabilitation revolving fund
Education loan fund
Other
trust
funds
National service
Veterans special
life
life
insurance fund
insurance fund
Compensation and benefits
Other loans
Total Department of Veterans Affairs
.
Guarantees or insurance
Amount
72
FEDERAL AGENCIES' FINANCIAL REPORTS
Table FA-1.— Direct and Guaranteed Loans, Dec. 31,
Direct loans or credit
Agency and program
1989— Con.
Guarantees or insurance
Amount
Maximum
Amount
Maximum
outstanding
authority
outstanding
authority
I— Wholly owned Government enterprises
U.S. dollar loans
Environmental Protection Agency:
Loans
Total Environmental Protection
Agency
General Services Administration:
924.620
Federal buildings fund
27.186
Other funds
27,186
Total General Services Administration
Small Business Administration:
Business loans
Disaster loan fund
Other loans
Total Small Business Administration
Other independent agencies:
Loans
to
DC
Government
Export-Import Bank of the United States
FSLIC Resolution Fund
National Credit Union Administration
Tennessee
Valley Authority
Total Other independent agencies
Total Part
II— Wholly
I
owned Government
Loans repayable
in
enterprises
foreign currencies
Loans repayable in foreign currencies:
Agency for International Development
United States Information Agency
Total Part
Ill— Privately
150.663
411
II
owned Government-sponsored
enterprises
Privately
owned Government
-
sponsored enterprises:
Student Loan Marketing Association
Federal National Mortgage Assoctation
Banks for cooperatives
Farm credit banks
Home Loan Mortgage
Total Part
Grand
III
total, all
8.600,998
,
110.721,000
10,676.368
,
Federal Housing Finance Board
Federal
,
Corporation
,
,
,
parts
,
40.463.370
141.797.118
21.329.379
333.588.233
536,518.976
73
FEDERAL AGENCIES' FINANCIAL REPORTS
DIRECT AND GUARANTEED LOANS
DEC.
31,
1989
Wholly owned Government Enterprises-U.S. Dollar Loans
Agriculture
Direct
Loans
iuaranteed Loans
Educatio
4%
Eximbank
5%
INTERNATIONAL STATISTICS
77
INTERNATIONAL FINANCIAL STATISTICS
The
tables
in this
reserve assets and
section are designed to provide data
liabilities
and other
on U.S.
statistics related to the U.S.
balance of payments and international financial position.
are used
Table IFS-1 shows the reserve assets of the United States, inits gold stock, special drawing rights held in the Special
cluding
Drawing Account
in
the International Monetary Fund, holdings of
convertible foreign currencies,
tional
and reserve
position
in
Table IFS-2 brings together
cial institutions,
In
foreign
offi-
official
institutions
and other residents
of foreign
countries.
Table IFS-4 presents a measure of the general foreign ex-
.--U.S.
tin
Total
reserve
assets '
Gold stock
2
of the U.S. dollar.
Reserve Assets
millions ol dollars]
Special
year or month
liabilities to
other foreigners, which
the Interna-
Table IFS-1
calendar
on
Table IFS-3 shows U.S. Treasury nonmarketable bonds and
change value
of
statistics
liabilities to all
the U.S. balance of payments statistics.
notes issued to
Monetary Fund.
End
and selected
drawing
rights
1
3
78
INTERNATIONAL FINANCIAL STATISTICS
Table IFS-2.--Selected U.S.
pn
Liabilities to
millions ol dollars]
LJabJIilies lo foreigr^
Official inslftulions
End
of
calendar
year or
month
Total
Total
(1)
(2)
1
countries
Foreigners
79
INTERNATIONAL FINANCIAL STATISTICS
These indices are presented to provide measures of the general
exchange value of the dollar that are broader than those
provided by single exchange rate levels. They do not purport to
represent a guide to measuring the impact of exchange rate levels
foreign
on US international transactions. The indices are computed as
geometric averages of individual currency levels with weights
derived from the share of each country's trade with the United States
during 1982-83.
Table IFS-4.--Trade- Weighted index of Foreign Currency Value of the Dollar
[Source: Office of Foreign
Exchange Operations-International
Date
Affairs]
Index of industrial
country currencies
Annual average
(1980= 100)2
1980
100.0
1981
109.1
1982
1983
1984
1985
1986
1987
1988
1989
119.7
125.2
133.5
139.2
119.9
107.5
100.4
102.8
End of period
(Dec. 1980 = 100)
1980
00.0
09.5
19.5
27.9
40.8
27.8
4.4
97.8
98.4
00.0
1981
1982
1983
1984
1985
1986
1987
1988
1989
1989 -May
June
.
.
.
.
July
Aug
Sept
Oct
Nov
Dec
1990-Jan
Feb
Mar
Apr
Each index covers (a) 22 currencies of countries represented in the Organization for
Economic Cooperation and Development (OECD): Australia, Austria. Belgium-Luxembourg.
Canada. Denmark. Finland. France. Germany. Greece. Iceland, Ireland, Italy, Japan, the
Netherlands, New Zealand, Nonvay, Portugal, Spain, Sweden, Swnzerland, Turkey, and the
'
105.3
104.9
101.7
104.3
102.1
102.4
101.7
100.0
100.2
101.0
102.0
101.9
United Kingdom: and (b) currencies of 4 major trading economies outside the OECD: Hong
Kong, Korea, Singapore, and Taiwan. Exchange rates are drawn Irom the International
Monetary Fund's "International Financial Statistics" when available.
2 Index includes average annual rates as reported in "International Financial Statistics."
80
CAPITAL MOVEMENTS
INTRODUCTION
Background
Data relating to capital movements between the United States
and foreign countries have been collected in some form since 1935.
Reports are filed with district Federal Reserve banks by commercial
banks, other depository institutions, bank holding companies,
securities brokers and dealers, and nonbanking enterprises in the
United States. Statistics on the principal types of data by country or
geographical area are then consolidated and are published in the
Treasury Bulletin.
used in the Treasury
System have been revised a
number of times to meet changing conditions and to increase the
usefulness of the published statistics. The most recent, general
The
reporting forms
and
instructions'
International Capital (TIC) Reporting
revision
of
the
report forms
reports as of April 30, 1978,
became
and
effective with the banking
with the nonbanking reports as of
December 31, 1978. Revised forms and instructions are developed
with the cooperation of other Government agencies and the Federal
Reserve System and in consultations with representatives of banks,
securities firms,
and nonbanking
United States, including the branches, agencies, subsidiaries, and
other affiliates in the United States of foreign banking and nonbanking firms. Entities that have reportable liabilities, claims, or securities
transactions below specified exemption levels are exempt from
reporting.
Banks, other depository institutions, and some brokers and
dealers file monthly reports covering their dollar liabilities to, and
dollar claims on, foreigners in a number of countries. Twice a year,
as of June 30 and December 31, they also report the same liabilities
and claims items with respect to foreigners in countries not shown
separately on the monthly reports. Quarterly reports are filed with
respect to liabilities and claims denominated in foreign currencies
Effective January 31, 1984, the specified
applicable to the monthly and quarterly banking
foreigners.
vis-a-vis
exemption
level
was raised from $10 million to $15 million. There
separate exemption level for the semiannual reports.
reports
Banks, other depository
dealers,
institutions,
and other enterprises
securities
is
no
brokers and
report monthly their transactions
in
long-term securities with foreigners. The applicable exemption level
is $500,000 with respect to the grand total of purchases and to the
grand total of sales during the month covered by the report.
enterprises.
Basic Derinitions
Quarterly reports are
The term "foreigner" as used in the Treasury reports covers all
institutions and individuals domiciled outside the United States,
including U.S. citizens domiciled abroad, and the foreign branches,
subsidiaries, and other affiliates abroad of U.S. banks and business
concerns; the central governments, central banks, and other official
institutions of foreign countries, wherever located; and international
and regional organizations, wherever located. The term "foreigner"
also includes persons in the United States to the extent that they are
known by reporting institutions to be acting on behalf of foreigners.
In general, data are reported opposite the foreign country or
geographical area in which the foreigner is domiciled, as shown on
the records of reporting institutions. For a number of reasons, the
geographical breakdown of the reported data may not in all cases
reflect the ultimate ownership of the assets. Reporting institutions
are not expected to go beyond the addresses shown on their
records, and so may not be aware of the country of domicile of the
Furthermore, U.S. liabilities arising from
ultimate beneficiary.
deposits of dollars with foreign banks are reported in the Treasury
statistics as liabilities to foreign banks, whereas the liability of the
foreign bank receiving the deposit may be to foreign official
institutions or to residents of another country.
Data pertaining
to
institutions are reported
branches or agencies
of
opposite the country
which the
to
foreign
official
official
belongs. Data pertaining to international and regional
organizations are reported opposite the appropriate international or
regional classification except for the Bank for International Settlements, which is included in the classification "Other Europe."
institution
Reporting Coverage
Reports are required from banks, other depository institutions,
bank holding companies. International Banking Facilities (IBF's),
securities brokers and dealers, and nonbanking enterprises in the
and commercial concerns,
other
depository
enterprises
if
filed
by exporters, importers, industrial
financial institutions other than banks,
institutions,
their liabilities to, or
and other nonbanking
claims on, unaffiliated foreigners at
brokers,
quarterend exceed specified exemption levels. Effective f^arch 31,
1982, this exemption level was set at $10 million, up from $2 million.
Nonbanking enterprises also report for each monthend their U.S.
dollar-denominated deposit and certificates of deposit claims of $10
million or more on banks abroad.
Description of Statistics
Section
presents data on liabilities to foreigners reported by
banks, other depository institutions, brokers, and dealers in the
United States. Beginning April 1978, the following major changes
were made in the reporting coverage: Amounts due to banks' own
foreign offices are reported separately; a previous distinction
between short-term and long-term liabilities was eliminated; a
separation was provided of the liabilities of the respondents
I
themselves from their custody liabilities to foreigners; and foreign
currency liabilities are only available quarterly. Also, beginning April
1978, the data on liabilities were made more complete by extending
to securities brokers and dealers the requirement to report certain of
their own liabilities and all of their custody liabilities to foreigners.
Effective as of January 31 1985, savings and loan associations and
other thrift institutions began to file the TIC banking forms. Previously
,
they had reported on TIC forms for nonbanking enterprises.
Section 11 presents the claims on foreigners reported by banks,
other depository institutions, and brokers and dealers in the United
States. Beginning with data reported as of the end of April 1978. a
distinction was made between banks' claims held for their own
account and claims held for their domestic customers The former
are available in a monthly series whereas the latter data are
collected on a quarterly basis only. Also, the distinction in reporting
of
long-term
discontinued.
remaining
to
and short-term components of banks' claims was
data began to be collected quarterly on a time
maturity basis as opposed to the historic original
Ivlaturity
maturity classification. Foreign currency claims are also collected on
Copies
of the reporting
Data Management. Office
of the Treasury.
of
forms and instructions
may be
obtained from the Office of
the Assistant Secretary for International Affairs. Department
Washington. D.C. 20220. or from
district
Federal Reserve banks.
a quarterly basis
only.
Beginning March 1981,
this
claims coverage
81
CAPITAL MOVEMENTS
was extended
to certain
the United States.
reporting of
items
in
See notes
and dealers in
above concerning the
the hands of brokers
to
section
I
thrift institutions.
Another important change in the claims reporting, beginning
quarterly data as of June 30, 1978, was the adoption of a
broadened concept of "foreign public borrower," which replaced the
previous category of "foreign official institution" to produce more
meaningful information on lending to the public sector of foreign
with
new
countries.
The term
"foreign public borrower"
encompasses
central
governments and departments of central governments of foreign
countries and of their possessions; foreign central banks, stabilization funds, and exchange authorities; corporations and other
agencies of central governments, including development banks,
development institutions, and other agencies which are majorityowned by the central government or its departments; State,
provincial, and local governments of foreign countries and their
departments and agencies; and any international or regional
organization or subordinate or affiliated agency thereof, created by
treaty or convention between sovereign states.
exclude claims held through banks in the United States.
Beginning with data reported as of December 31, 1978, financial
liabilities and claims of reporting enterprises are distinct from their
commercial liabilities and claims; and items are collected on a time
remaining to maturity basis instead of the original maturity basis
also
used previously.
Section V contains data on transactions in all types of long-term
domestic and foreign securities by foreigners as reported by banks,
and other entities in the United States (except nonmarketable U.S. Treasury notes, foreign series; and nonmarketable
U.S. Treasury bonds and notes, foreign currency series, which are
brokers,
shown in the "International Financial Statistics" section, table IFS-3).
The data cover new issues of securities, transactions in outstanding
issues, and redemptions of securities. They include transactions
executed in the United States for the account of foreigners, and
transactions executed abroad for the account of reporting institutions
and their domestic customers. The data include some transactions
which are classified as direct investments in the balance of
payments accounts.
The
III
includes supplementary statistics on U.S. banks'
and claims on, foreigners. The supplementary data on
banks' loans and credits to nonbank foreigners combine selected
information from the TIC reports with data from the monthly Federal
Reserve 2502 reports submitted for major foreign branches of U.S.
banks. Other supplementary data on U.S. banks' dollar liabilities to,
and banks' own dollar claims on, countries not regularly reported
separately are available semiannually in the June and December
with U.S. residents; but the net figures for transactions of individual
countries and areas may include some transactions between
issues of the Treasury Bulletin.
foreigners of different countries.
Section
liabilities to,
Section iV shows the
foreigners
by
exporters,
liabilities to,
importers,
and claims on, unaffiliated
and commercial
industrial
concerns; financial institutions other than banks, other depository
institutions, and brokers; and other nonbanking enterprises in the
United States. The data exclude the intercompany accounts of
nonbanking enterprises in the United States with their own branches
and subsidiaries abroad or with their foreign parent companies.
(Such transactions are reported by business enterprises to the
Department of Commerce on its direct investment forms ) The data
breakdown of the data on securities
the country of domicile of the foreign buyers and
sellers of the securities; in the case of outstanding issues, this may
differ from the country of the original issuer. The gross figures
geographical
transactions
shows
some offsetting transactions between foreigners. The net
figures for total transactions represent transactions by foreigners
contain
The data published in these sections do not cover
reported capital movements between the United States
The
all
types of
and
foreign
exclusions are the intercompany capital
transactions of nonbanking business enterprises in the IJnited States
countries.
with their
principal
own branches and
subsidiaries abroad 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 U.S. balance of payments.
82
CAPITAL
Section
I.
-
Liabilities to Foreigners
Table
CM-l-1. -
MOVEMENTS
Reported by Banks
Total Liabilities by
Type
[In millions of dollars]
End of
in
the United States
of Holder
83
CAPITAL MOVEMENTS
TO FOREIGNERS
CALENDAR YEARS 1985-90
LIABILITIES
Reported by International Banking
Facilities
and by Banks
in
the
United States
850
800
750
-
n
700
-
B
650
International
Banking
Banks
i
r
-i
m
-i
600
-
550
-.
Facilities
I
I
'
n
500
-i
450
-i
400
-
350
-i
300
-i
h
f
ri
° 250^
O
1
200
r
I
a
»
150
100
1
-
n
s
50 H
1985
1986
1987
1988
END OF PERIOD
1989
1990, 1st Qtr.
84
CAPITAL MOVENflENTS
Table
CM-l-2. -
Total Liabilities by Type, Payable in Dollars
Part A
-
Foreign Countries
[In millions of dollars]
CAPITAL MOVEMENTS
CM-l-3. - Total Liabilities by Country
[Position at end of period in millions of dollars]
Table
Calendar year
Country
Europe:
Austria
-^
i^iSJ;^^!!^!-;;;;;;;;;;----Finland
'''III
^^;-er::;;::;;;;::;:;:;;;;;::;;;
^l-
J^?^e;;ands;;:;;;;;;;;:;;:;;:;i;;
901
.046
564
,0,815
'"''in
80
''m
«.
1.84
'
''-ir.
^^'Ul
,2,
n.
"
''-
„
-1
-
«
-•
^J
1,405
34.354
922
126.443
'"'"^p
A:in
2,2
^
1.308
36.284
1.078
12j;902
'^°'??«
dfot
1.414
1,41,
,.935
"•"'
^*.«'
n.el^
,J-
",^J^
^_^U6
'1^
-11^
^??
i5,^J^
u.?^?
...Ill
'J:?^?
2.4!^
2.V2I
2.l\l
..W]
?'
l.,55
33,722
1.438
4.4^^
1,498
5.5^^
4.4^^
5.0M
„j,
uj'sil
'"•?''
112'?73
"^'''^
-'-'-'
'476
^,5
•!""'
in.so?
317
^^^
5°^
9
.
109.200
''"«
»«4n
i.&ia
,J'2L
15,964
.'JL'
13.432
13,362
11.938
loiiasi
263
1,613
9,314
191,463
254.432
252.219
?66. 692
262.162
255,600
T^iJ^
248,610
21,789
18.918
19.415
19.798
32
27503
and Caribbean
2.
-'[
710
10
586
'0'^°°
3
Canada
'•
--'
-!=i
631
5,4
•"'
WV.
^"'"^
'-11'^
^-^^
\^v.v^v.:v.::::::::::::
"""
III
"-ir,
}?
'^i
^rr:::;:;:;;;;;;:;:;;;;;;;;;
'^"i'?". Kingdom
u.s.s.R...r::.:;;:;:::;;::
Yugoslavia
Other Europe
''^S
HI
.•.•;;:;
Gr?:^^De.oc;a;;rRep^bi;c:;;;;::
!"e?:;5:;:;;:;;;:::;;;;:;;-:-----
'^H
138
i?9
214,767
225.023
277,470
o'2i
'"•'"
?''J',
'^'SOf
?«-J"
'".^1
,
n
,
'•"'
'-"l
307.584
Asia:
China:
Hong Kong
India...'
l"?a2?!:?:;;;;:;;;:;;;:;-;-'---
-?";:;;::;::;::;;;;;;::;;;;;;:
•
i1
=:
!•
'1
n!
:::"
^1
SS"";;:::::;:;;-::::::-
S-"'"--r::"^E;;^^
^°"' *'''
19.599
14,313
19,185
13,721
ulll
.IV^
?
ni;^5^
..J-
„-
^il^
'."S
^ilt
^i^?
-l]^,
1.065
1,143
:
^'^
^
ill
.«^;
.iS
.;;iS
,;:i
-•i
-ii
-I
'^
']i
.S:i
.ijj'
.iji
121,669
148,567
195.104
190.755
189.117
174.202
164.333
4.078
3.988
4.Q60
5.370
4
4
«
'
other countries
Total
foreign countries
International and regional:
In terna t ional
European regional
Latin American regional
Asian regional....
..III
HI
636
Africa:
Total
17,935
13,019
!:-
u
'
•
ilf^;??a::::;::;;:;;:;;:
Pakistan
•",'>
14,239
301
564,849
4,648
'
'
',
6,354
756,995
798,603
2,868
''
"o?
2.547
'•"'
4.846
"?'?
1333
A,
\\t
«39
j,
1047
^
•\\l
--
^^
797,339
766,080
749,300
949
3.830
3.094
3.841
\\\
703
^^
877
158
675
,5,
3.
92
86
CAPITAL MOVEMENTS
Table
CMH-4. -
Total Liabilities
by Type and Country, as of Mar.
[Position in millions of dollars]
Total liabilities
dollars
(1)
Europe:
Austria
Belgium-Luxembourg
Bulgaria
Czechoslovakia
Denmark
(2)
1,884
14,104
74
66
Finland
France
German Democratic Republic
Gemany
Greece
Hungary
Ireland
Italy
1.935
435
?4,549
116
11.547
909
254
846
14.991
10,009
2,620
789
2,427
^ethepl ands
Nonvay
Poland
Portugal
Romania
Spain
Sweden
Switzerland
Turkey
United Kingdo-n
U.S.S.R
Yugoslavia
Other Europe
1,532
36,081
1.078
105.081
268
1,613
9,314
Total Europe
248,610
55
5,033
Canada
19.095
Latin America and Caribbean:
Argentina
Rahamas
8emuda
Brazil
British West Indies
Chile
Colombia
Cuba
Ecuador
Guatemal a
U-'aica
Mexico
Netherlands Antilles
Panama
Peru
Trinidad and Tobago
Uruguay
Venezjela
Other Latin America
and Caribbean
8,141
98,512
2.551
7.398
144.918
3,348
4,493
9
1,354
1
,410
?45
15.498
7,677
4,941
1.858
334
2.545
9.971
Ljtin \nerica
and Caribbean
Total
Asia:
China:
Mainland
Taiwan
Hong Xong
1,698
15.589
13.464
1,034
1,550
India
Indonesia
Israel
1.511
Japan
Korea
96.786
2,328
LebaniTn
371
1,095
701
1.206
12,436
193
1.929
13.605
Malaysia
Pakistan
Philippines
Singapore
Syria
Thailand
Other Asia
Total Asia
'.
.
165.497
Africa:
602
Egtfpt
Shana
Liberia
Ill
Morocco
South Africa
Zaire
Other Africa
482
80
288
81
2,859
Total Africa
Other countries:
Australia
All other
Total other countries.
Total
foreign countries
International and regional:
International
European regional
Latin American regional...
Asian regional
African regional
Middle Tastern regional...
3,841
92
969
95
84
*
Total
international
and regional
Grand total
5.082
769,113
1,759
1990, Preliminary
__„
Liabilities payable in dollars
"
Payable
Total
31,
To foreign official
institutions and
unaFfi iated foreign banks
Totals
Payable
1
Banks'
Custody
foreign own lia- liabilDeposits
curren- bilities ities
cies J_/
Demand Time
(31
(4)
(5)
(6)
2^/
(7)
Liabilities to
MemoLiabilall other foreigners
randun
ities to
banks'
Deposits
ShortOther
NegotiShortOther
own
term U.S. liabil- able
term U.S. liabil- foreign Demand Time ^/ Treasury ities
CD's
Treasury ities
offices
obligaheld
obligations
for all
tions
for(8)
(91
(10)
(11)
(12)
(13)
(14)
(15)
87
CAPITAL MOVEMENTS
Section
11.
- Claims on
Table
Foreigners Reported by Banks
CM-ll-1. -
the United State
in
Total Claims by Type
[Position at end of period in millions of dpi
1
a rs
endar
year
Cal
Type of claim
June
1987
Total
claims
Payable In dollars
Banks' own claims on foreigners
Foreign public borrowers
Unaffiliated foreign banks:
Deposits
Other
Own foreign offices
other foreigners
All
Claims of banks' domestic
customers
Deposits
Negotiable and readily
transferable instruments
Collections and other
Payable in foreign currencies
Banks' own claims on foreigners
Claims of banks' domestic
customers
Meirtoranda
Sept.
Dec.
Mar.
r
June
r
Sept.
Dec.
p
549,457
549,086
577,515
008,035
631,622
604,590
625,837
657,957
497,635
495,189
513,690
538,689
558,196
540,994
552,350
589,721
459,877
64,605
459,895
64,586
477,909
65,612
491,165
62,658
505,054
63,519
491,514
63,683
500,211
62,093
535,706
60,523
60,687
66,922
224,727
42,936
58,891
64,479
231,127
40,812
61,126
63,466
246,142
41,563
65,898
63,527
257,436
41,646
66,921
62,955
272,848
38,811
68,367
59,685
259,112
40,668
72,605
58,319
266,637
40,556
77,900
56,942
297,184
43,158
37,758
3,692
35,294
4,843
35,781
5,391
47,524
8,289
53,141
12,046
49,480
11,101
52,139
11,253
54,014
10,383
26,696
7,370
23,982
6,468
20,896
9,494
25,700
13,535
24,960
16,134
22,017
16,362
24,277
16.609
29,040
14,591
51,822
51,271
53,897
52,892
63,825
63,490
69,347
68,983
73,426
73,050
63,597
62,874
73,487
70,929
68,236
65,136
551
1,004
335
364
376
723
2,558
3,100
280,897
239,880
41,016
232,960
237,729
45,232
300,420
245,525
54,895
320,056
260,903
59,153
335,987
272,610
63,377
322,362
268.471
53,891
333,558
273,413
60,145
343,052
289,881
53,172
23,107
19,648
18,759
19,596
17,193
16,808
13,119
12,313
;
Claims reported by 13Fs
Payable in dollars
Payable in foreign currencies
Customer liability on acceptances
Claims with remaining
maturity of 1 yeir or less:
On foreign public borrowers
On all other unaffiliated
foreigners
Claims with remaining
maturity of more than 1 year:
On foreign public borrowers
On all other unaffiliated
foreigners
25,889
27,584
29,434
26,562
24,499
24,295
24,054
23,687
138,108
136.204
138,635
146,071
144,028
143,368
145,138
154,378
38,625
88
CAPITAL MOVEMENTS
CLAIMS ON FOREIGNERS
CALENDAR YEARS
Reported by International Banking
1984-89
Facilities
and by Banks
in
the
United States
1984
1985
1986
1987
END OF PERIOD
1988
1989
(Preliminary)
89
CAPITAL MOVEMENTS
Table CM-ll-2. - Total Claims by Country
[Position at end of period In minions of dollars]
Calendar
Country
yea r
1987
Europe:
Austria
Selgium-Luxeinbourg
888
10,733
Bulgaria
Czechoslovakia
Denmark
Finland
France
German Democrat ic Republic
Germany
Greece
Hungary
Ireland
Italy
Netherlands
Norway
Poland
Portugal
Romania
Spain
Sweden
Switzerland
Turkey
United Kingdom
U.S.S.R
Yugoslavia
Other Europe
48
28
985
1,180
15,146
134
3,807
523
472
n.a.
9,401
3,462
981
239
493
74
2,019
2,569
3,640
1,76
7
80,598
474
1,728
677
Europe
Total
Sept.
142,064
Canada
30,722
Latin America and Caribbean:
Argentina
Bahamas
Bermuda
12,520
66,477
485
26,447
54,408
6,492
2,898
Brazil
British West Indies
Chile
Colombia
Cuba
Ecuador
Guatemala
Jamaica
Mexico
Netherlands Antilles
3
2,410
155
195
31, 034
1,155
5.370
1,357
P'Snama
Peru
Trinidad and Tobago
Uruguay
Venezuela
Other Latin America
and Caribbean
152
1,003
11, 088
1
Total Latin Am erica
and Caribbean
,
741
225,397
Asia:
China:
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
^orea
Lebanon
Mai ay si
1,058
4,696
10,920
574
639
1,485
95,946
5,261
87
a
1
Pakistan
Philippines
Singapore
Syria
Thailand
Oi -exporting countries
Other Asia
Total
2,088
8,271
52
U
Asia
642
5,227
319
137,598
Africa:
Egypt
Ghana
Liberia
Morocco
South Africa
Zaire
546
16
535
560
1,586
41
Oil-exporting countries 2/
Other Africa
T
Total
35
199
Africa
1,188
7
27
5,198
Other countries:
Australia
Al
other
1
Total
other countries
Total
foreign countries....
International and regional:
Internal ional
European regional
Latin American regional
Asian regional
African regional
Middle Eastern regional
Total
int'l
Grand total
and regional
3,716
29
48
14
11
3,819
549,457
90
CAPITAL
MOVEMENTS
Tabia CMHI-3. - Total Claims on Foreigners
by Type and Country Reported by Banks
In the
United States, as of Dec.
[Position at end of period in millions of dollars]
Country
3'^
1989
91
CAPITAL MOVEMENTS
Section
III.
- Supplementary
Liabilities
Table CM-lll-1.
-
and Claims Data Reported by Banks
Dollar Claims on
in
the United States
Nonbank Foreigners
[Position at end of period in millions of dollars]
Dollar claims of U.S. offices
Total
End of cal endar
year or month
doHar
92
CAPITAL MOVEMENTS
Table CM-III-2.
in
-
Dollar Liabilities to, and Dollar Claims on, Foreigners
Countries and Areas Not Regularly Reported Separately
[Position at end of period in millions of dollars]
Total
Other Europe:
Cyprus
Iceland
Ireland
Monaco
Other Latin America and Caribbean:
Aruba
Barbados
Bel ize
Bol i via
Costa Rica
Dominica
Dominican Republic
El Salvador
French West Indies and French Guiana..
Guyana
Haiti
Honduras
Nicaragua
Paraguay
Suriname
Other Asia:
Afghanistan
Bangladesh
Brunei
Cambodia (formerly Kampuchea)
Jordan
Macau
Nepal
Lanka
Vietnam
Sri
Ye.nen
Yemen
59
74
150
119
n.a.
50
28
4 36
6
84
19
957
627
35
32
182
490
110
489
61
85
72
53
18
Buniia
(Aden)
(Sanaa)
Other Africa:
Angola
Burundi
Cameroon
Djibouti
Ethiopia, including Eritrea
Guinea
Ivory Coast
Kenya
Madagascar
Mauritania
Mauritius
Mozambique
Ni ger
Rwanda
Senegal
Somalia
Sudan
Tanzania
Tunisia
Uganda
Zambia
Zimbabwe
other:
Fiji
Marshall Islands
New Zealand
Papua Hew Guinea
U.S. Trust Territory
of the Pacific Islands
Vanuatu (formerly New Hebrides)
liabilities
Calendar year
Country
5
101
17
30
72
163
11
11
27
14
14
51
33
12
55
80
19
23
14
8
12
6
17
19
45
22
58
43
203
28
All
12
n.a.
348
49
91
9
59
Total banks'
Gal
endar year
own claims
CAPITAL
Section
IV.
-
Liabilities to,
93
MOVEMENTS
and Claims on, Foreigners Reported by Nonbanking Business Enterprises
Table
CM-IV-1. -
Total Liabilities and Claims by Type
[Position at end of period in millions of dollars]
Calendar year
Type of liabilities
1985
1988
in
the United States
94
CAPITAL MOVEMENTS
Table
CM-IV-2, -
Total Liabilities by Country
[Position at end of period in millions of dollars]
Cal endar
year
1988
Country
Sept.
Europe;
Austria
Belgium-Luxembourg
Bulgaria
Czechoslovakia
Denmark
Finland
France
German Democratic Republic
Germany
Greece
Hungary
Ireland
Italy
Netherlands
Norway
Poland
Portugal
Romania
Spain
Sweden
Switzerland
Turkey
United Ki ngdom
U.S.S.R
Yugoslavia
Other Europe
Total
81
519
58
411
1
2
2
*
53
317
21
42
224
1,013
19
42
345
460
64
454
474
62
446
5
4
3
3
7
77
2
1
2
1
1
44
200
799
94
233
101
283
808
53
192
3
13
19
5
2
37
6
3
983
1,083
1,460
2,448
2,113
2,028
2.005
2.308
34
70
19
192
265
214
217
182
160
236
1,309
828
1.029
9
7
1
1
2
3
2
2
n.a.
352
1,224
236
n.a.
342
n.a.
384
,289
136
n.a.
518
1,402
204
n.a.
568
2
1
1
n.a.
436
1 ,602
234
72
n.a.
456
2
n.a.
497
1 ,470
176
69
4
2
8
53
10
39
181
15
38
11
37
220
318
1,599
242
344
1,436
176
278
333
1,254
10.723
9.804
3
966
201
1
1,523
191
31
24
36
39
25
35
137
826
1,031
1,117
24
25
9
38
74
4,392
5,281
6,481
7,155
8,722
3
4
6
2
6
4
21
49
30
97
22
145
46
20
123
21
12
35
61
105
159
214
162
234
87
72
1.933
1,135
127
159
81
87
2,136
1.887
29
646
160
93
1,196
136
3
33
10
77
34
21
51
17
18
16
17
337
168
233
199
388
541
663
213
305
113
728
21
35
54
71
95
797
68
679
224
426
103
502
21
30
41
36
286
7
3
Mexico
Netherlands Antilles
953
136
114
446
115
239
86
55
49
12
25
22
10
10
10
11
8
5
1
1
2
2
773
216
216
177
179
185
140
l_94
50
6,957
4,272
2.868
106
203
159
232
140
175
264
32
191
39
130
198
35
*
60
2
36
26
12
5
5
2
13
3
16
13
6
3
3
5
3
4
4
181
213
417
28
199
429
8
5
3
30
12
14
15
27
10
202
32
11
6
41
96
3
8
194
444
5
2,407
Asia:
China:
India
Israel
Japan
Korea
Lebanon
Malaysia
Pakistan
Philippines
Singapore
Sy
r
i
a
Thailand
countries
Oil -exporti ng
l_/
Other Asia
Total
Asia
Africa:
Egypt
Ghana
Liberia
Morocco
South Africa
Zaire
Oil-exporting countries 2/
Other Africa
Total
113
112
25
79
193
3,440
572
204
249
208
92
318
521
575
60
397
567
652
62
42
129
420
552
644
65
69
415
463
681
93
65
69
123
5,779
1,099
14
26
295
133
4,620
5,660
785
687
6,009
870
5,937
885
1
3
3
4
3
13
14
17
39
17
15
135
18
155
179
188
13
8
9
18
16
15
13
184
215
279
391
331
2
2
3
5
13
101
31
2,527
49
40
2,911
103
1,686
201
1,527
34
1,971
192
136
1,339
164
7,063
7,861
6,885
9.017
10,229
145
168
212
274
2,465
499
2,997
4
1
55
50
36
42
14
22
356
2
54
631
156
209
»
*
1
1
2
2
3
5
162
141
165
9
1
234
48
238
347
443
94
18
-
1
59
319
46
319
197
57
1,443
63
210
1,408
30
11,037
10,955
10,896
15
2
2
1
4
13
25
24
158
158
136
137
125
1
1
2
3
1
1
2
2
2
198
42
136
64
202
44
275
64
255
125
248
129
547
42
599
436
444
443
1
27
20
38
43
30
1
Africa
Other countries:
Australia
Al
other
1
Total
other countries....
Total
foreign countries..
International and regional:
International
European regional
Latin American regional
Asian regional
African regional
Middle Eastern regional
Total
int'l
Grand total
and regional
27
242
344
1.413
215
11,926
166
Indonesia
193
46
41
157
151
Colombia
Cuba
Ecuador
Guatemala
Jamaica
Mainland
Taiwan
Hong Kong
1,655
220
136
989
10,746
Total Latin America
and Caribbean
220
1,142
n.a.
487
835
182
Canada
Panama
Peru
Trinidad and Tobago
Uruguay
Venezuela
Other Latin America
and Caribbean
8
1
77
1,127
1,433
Ill
116
124
Latin America and Caribbean:
Argent ina
Bahamas
Bermuda
Brazil
British West Indies
Chile
83
511
68
206
827
28
1
Europe
26
370
*
-
-_
440
462
29,374
27,825
35
603
322
1,198
273
10,302
2
95
CAPITAL MOVEMENTS
Table CM-IV-3. - Total Liabilities by Type and Country, as of Dec. 31, 1989, Preliminary
[Position at end of period in millions of dollars]
Fi nanc
i
al
liabilities
Payable
Country
Payabl
Total
1
1
a b
1"
in
1 i
e
dollars
i
n
f
orei gn
currerc es
i
Cominerc
(3)
Europe;
Austria
Belgium-Luxembourg
Bulgaria
Czechoslovakia
Denmark
Finlan'J
France
German Democratic Republic
Germany
Greece
Hungary
Ireland
Italy
Netherlands
Norway
Poland
Portugal
Roman! a
Spain
Sweden
Switzerland
Turkey
United Kingdom
U.S.S.R
Yugoslavia
Other Europe
Total
83
511
39
340
8
5
25
14
310
30
1
101
134
86
243
86
216
26
899
98
1,574
3
3
2,3 08
160
159
2
n.a.
568
1,655
193
46
2
n.a.
82
946
45
37
728
213
13
13
7
7
n.a.
35
603
32 2
19
10
10
1,198
578
207
371
7,326
154
2
17
27 3
10,302
Jamaica
Mexico
Netherlands Antilles
Panama
Peru
Trinidad and Tobago
Uruguay
Venezuela
Other Latin America and Caribbean
Total
Asi
Latin America and Caribbean
2
61
18
197
326
100
621
34
48
157
156
17
17
*
14
5
3
252
471
6
1
451
450
435
428
3
19
5
1
154
85
2,356
China:
India
Indonesia
Israel
Japan
Korea
Lebanon
Malaysia
Pakistan
Phi
1
i
ppi nes
Singapore
Syria
Thailand
Other Asia
Total
Asia
Africa:
Egypt
Ghana
Liberia
Morocco
South Africa
397
535
895
72
74
133
6,796
98 7
Total
other countries
foreign countries
International and regional;
International
European regional
Latin American regional
Asian regional
African regional
Middle Eastern regional
Total
international and regional
Grand total
1,618
333
2,446
7
243
1,387
12,001
251
*
1
37
146
4
02
Africa
Total
4,064
333
299
Other countries:
Australia
Al 1 other
Total
1
107
24
33
2
Other Africa
1
3
Zai re
583
311
621
273
2,321
2
a
Mainland
Taiwan
Hong Kong
.
485
709
180
61
234
a
n.a
39
27
35
27
Europe
Gua temal
3
1
Canada
Latin America and Caribbean;
Argentina
Bahamas
Bermuda
Brazi 1
British West Indies
Chile
Colombia
Cuba
Ecuador
45
172
5
101
220
1,142
1
32
33
39,679
4,916
2,460
i
a
1
liabilities
96
CAPITAL MOVEMENTS
Table
CM-IV-4. -
Total Claims by Country
[Position at end of period
Tii
1
1
i
ons of dol Tars]
97
CAPITAL
MOVEMENTS
Table CM-IV-5. - Total Claims by Type and Country, as of Dec. 31, 1989
[Position dt end oF period fn millions of dollars]
Financial claims
Country
Denomi nated
Total
claims
Total
in
dollars
Oenomi nated
In foreign
Coininerci al
currencies
claims
(21
Europe
Austria
Belgium-Luxembourg
Bulgaria
Czechoslovakia
Denmark
Finland
France
German Democratic Republic
Germany
Greece
Hungary
Ireland
Italy
Netherlands
Norway
Pol and
Portugal
Roman a
Spain
Sweden
Switzerland
Turkey
United Kingdom
U.S.S.R
Yugoslavia
Other Europe
:
i
82
3
1
214
13
11
SO
200
4
4
14
75
6
2
14
64
69
,1 31
181
25
194
148
33
950
25
177
18
670
3
1
3
54
15
n.a.
n.a.
652
65
66
864
57
15
n. a
.
663
793
190
18
127
14
253
204
397
41
*
n.a.
u
11
303
296
490
39
36
151
*
U
93
34
14
242
187
304
114
*
U
16
92
8
3
13
26
66
3
114
.574
S3
135
58
2,210
83
Europe
Total
Canada
Latin America and Caribbean:
Argentina
Bahamas
Bermuda
Brazil
British West Indies
Chile
C 1 omb i a
Cuba
Ecuador
Guatemal a
Jamaica
Mexico
Netherlands Antilles
Panama
Peru
Trinidad and Tobago
Uruguay
Venezuela
Other Latin America and Caribbean.
Total
Asi
171
28
1,570
1.513
329
509
5,352
28
,507
6
7
1
5
224
5,316
221
,247
69
85
1
210
90
3
2
82
35
47
604
49
48
79
20
52
12
13
94
34
14
24
52
11
12
91
34
9
24
12
169
265
20
20
32
27
120
425
185
128
113
168
,618
372
26
130
31
25
121
23
Latin America and Caribbean
a
China:
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Lebanon
Mai ays
i
a
Pakistan
Philippines
Singapore
Syria
Thailand
Other Asia
Total
7
440
327
43
113
55
other countries
Total
foreign countries
International and regional:
International
European regional
Latin American regional
Asian regional
African regional
Kiddle Eastern regional
international and regional.
Grand total
1
12
9
*
6
2
4
1
2
2
2
337
42
84
27
22
5
9
6
3
600
57
53
4
51
1
107
I
16
11
84
16
14
13
325
114
107
Africa
Total
13
1
17
48
40
Other countries:
Australia
All other
Total
3
1
Asia
Africa:
Egypt
Ghana
Liberia
Morocco
South Africa
Zaire
Other Africa
Total
17
24
IS
12
98
CAPITAL
Section
-
V.
Transactions
Table
[In
minions
In
MOVEMENTS
Long-Term Securities by Foreigners Reported by Banks and Brokers
CM— V-1. —
Foreign Purchases and Sales ot Long-Term Domestic
negative figures indicate net sales by foreigners or
of dollars;
Marketable Treasury bonds and notes
a
net outflow of capital
Gov't corporations
and federally sponsored
agencies
the United States
from the United States]
Corporate and other securities
U.S.
Net foreign purchases
in
Securities by Type
Bonds
Stocks
1/
Foreign countries
Offi-
InternaOther
tional
instiforand reTotal tut ions eigners gional
Cal endar
year
or month
cial
(1)
1986
1987
1988
1989
.
.
.
r
.
1990-Jan-Har
1989-Mar.
p
.
r
Oct.
r
Nov.
.
Dec.
1990-Jan.
.
.
Feb.
Mar
\J
.
(3)
19,388
25,587
48,832
54,723
-6,527
14,214 6,278
-176
31,064
26,624 21,546
27,028 25,720
-4,931
-788
8,639
1,740
1,125
6,533
-5,730
-3,560
12.419
5.013
-2.413
6.626
-1.667
762
3,220
-4,770
6,549
-842
28
6.990 1,069
-5.150
461
-1,209
2,907
21,906 9,918
4.704
773
-2.138
-979
8.195
1,686
1.149
1.305
818
328
1.454
1.425
-8.799 -3.833
.
Apr.
May r.
June r
July r
Aug.
Sept.
(2)
.
p
p
(4)
Gross
foreign Gross
purforeign
chases
sales
(5)
Gross
foreign foreign Gross
purpurforeign
chases chases
sales
Net
(7)
(6)
1,103 1,084,326 1.064,938
5,302 1,337.447 1,311,361
(8)
(9)
6,976 37,105 30,130
37,780
24,672
36,310
13,325
5,047 42,327
661 1,560,376 1,511,544
6,740 31,412
1,976 2,100,253 2,045,530 15,120 51,430
-808
508,481
515.008 2.193 15,517
350
-255
1,525
119
-557
-431
1,082
1,254
-116
1,511
-272
-341
-196
149.709
142.990
188.619
220.946
205.212
224,245
150,964
204,560
186,793
134,561
181,976
174.664
151.841
141.070
142.961
181.630
226.096
206,421
202.339
146,260
206,699
178,598
133,413
181,158
173,210
160,641
926
1,759
-510
602
338
1,506
1,143
2,352
1,768
1,635
539
1,382
271
4,441
4,432
2.473
3,638
3.479
5.540
3.574
6.089
4.998
6.010
5.358
5.697
4,462
3,515
2.673
2,983
3.036
3.141
4.033
2.431
3.237
3.230
4,375
4,819
4,314
4.191
Net
foreign
purchases
Gross
foreign Gross
purforeign
chases
sales
Net
foreign
purchases
Gross
foreign Gross
purforeign
chases
sales
(12)
(13)
(14)
(10)
(U)
43,672
22,497
21,224
19,055
3,402
86.063
63.029
54.969
69,036
13,476
42.391
40.533
33.745
49.982
10,074
18,719
16,272
-2,000
9,589
-3,299
143,114
249,122
181,135
212,975
43,636
129,395
232,849
133.185
203,385
46,935
2.472
2.707
5.982
5.304
5,870
7,218
6,566
5,404
5,029
4,841
6,135
7,692
4.105
4.599
4.772
3,510
2,597
5.800
6.141
4.410
5.327
4,426
3.566
3.427
374
-143
1.064
3.670
2,035
1.171
2.548
1.363
-1.117
15.824
4.9 38
-1.458
-383
-229
-2.688
.449
,259
,849
,646
,087
,942
,049
,988
,947
,368
,128
,691
,116
70
1.077
2,156
77
603
1.275
2.708
2,754
1,115
1,200
1.086
2,989
3,399
3.686
14.
U6
17.913
24.316
17,122
22,112
19,597
22,350
13,830
15,410
13,745
13,462
16,429
(15)
Oata include transactions in directly placed issues abroad
by U.S. corporations and issues of States and municipalities.
Table
[In millions of dollars:
CM-V-2. -
Foreign Purchases and Sales of Long-Term Foreign Securities by Type
negative figures Indicate net sales by foreigners or a net outflow of capital from the United States]
Net
f Orel gn
Calendar year
or month
purchases
of foreign
securities
Foreign bonds
Net
f orei gn
Gross
purchases
purchases
f
orei gn
Foreign stocks
Gross
f
orei gn
sales
(1)
1986
1987
1988
1939 r
1990-Jan-Mar.
1989-Mar.
r
Apr. r
Hay
r
June r
July
Aug.
Sept.
Oct.
Nov
Dec
r
r
r
r
—
p
p
purchases
forei gn
Gross
foreign
sales
(7)
-5.921
-2.597
166,992
199.089
218.521
234.099
61.541
170.677
207,035
225,955
240,020
64,139
-1.853
1.081
-1.959
-12.515
-355
49,149
95,458
75,356
108,917
35.222
51,002
94,377
77,315
121,433
35,577
-641
-193
-112
-1.538
-1,437
1,004
-1,348
-638
478
-270
556
-159
-2.995
23,499
15,571
17,302
21,073
20,239
24,106
18,325
21,266
20,463
13,543
18,512
20,671
22.359
24,140
15.764
17.414
22.611
21.676
23,102
20,173
21,904
19,986
18,812
17.955
20.830
25.354
-367
-1.120
-1,172
-2,457
-496
-1,598
-277
-1,558
-525
-2,150
9,477
7,187
8,016
9.239
8.023
9.598
9.803
11.399
10.304
9,857
12,932
10.479
11,760
9.843
8.307
9.187
11.696
3.518
11.197
10.080
12,958
10.329
12.007
12.210
11,461
11,906
-3,685
-7,946
-1,003
-1,313
-1,283
-3,995
-1,933
-594
-2,125
-2,196
-2,420
1,329
-1,140
-3,141
Gross
purchases
(5)
-5,538
-6,365
-9,393
13,436
-2,952
-47
I990-Jan
Feb.
Mar.
p
Net
f orei gn
-7 ,434
Note
As a result of the merger of a U.S. and a U.K.
company in July .1989, the former shareholders of the
U.S. company received $5,453 million in shares in the
772
-981
-146
new combined U.K. company.
This transaction is not
reflected in the data above.
99
CAPITAL MOVEMENTS
Table
CM-V-3. -
[In millions of dollars;
Net Foreign Transactions
m
Long-Term Domestic Securities by Type and Country
negative figures indicate net sales by roreigners or
Marketable Treasury
bonds and notes
1989
a
Gov't corporations
and Federal agency bonds
net outflow of capital
From the United States]
U.S.
1990
1989
Corporate bonds
1989
1990
Corporate stocks
1990
1990
1989
Country
Calendar Oct.
Jan.
Jan.
Calendar Oct.
Calendar OctJan.
Calendar Oct.
Jan.
year
through through year
through through year
through through year
through through
Mar.p
1989r
Mar.p
1989r
Dec.
Oec.
1989r
Oec.
Har.p
19a9r
Dec.
Har.p
Europe:
Hustria
Belgium-LUKembourg
Bulgaria
Czechoslovakia
Denmark
Finland
France
German Democratic Republic...
Germany
Greece
Hungary
Ireland
Italy
Netherlands
Norway
Poland
Portugal
Romania
Spain
Sweden
Switzerland
Turkey
United Kingdom
U.S.S.R
Yugoslavia
Other Europe
Total
Europe
Canada
Latin America and Caribbean:
Argentina
Bahamas
Bermuda
Brazil
British Uest Indies
Chile
Colombia
Cuba
Ecuador
Guatemala
Jamaica
Mexico
Netherlands Antilles
Panama
Peru
Trinidad and Tobago
Uruguay
Venezuela
Other Latin America
and Caribbean
1.
*-**. **_
--, --*-- *...2**
*1 *-* 33* 43
.*» ...
*.*
...
1-13
»**
.._ *.*
.-. 9-14
2«26 1** 1*12 21*
*-* ...29*. ...
343
053
-1.697
182
1,444
215
-63
-443
49
148
23
-6
-542
-225
-396
21
541
111
57
173
-22
628
-190
2
-43
355
1
56
39
3
32
-1,356
-503
-270
28
-21
40
700
222
32
9
56
33
11
16
2
11
314
-74
92
-700
-816
-305
-12
-69
•
-49
148
-24
-2
-866
-15
-277
•
9
32
-1
-382
27
20
2
2
1
•
3
4
3
1
20
9
-7
-1
-31
33
632
-11
128
154
-3
-10
8
24
7
6
17
307
209
59
7,907
3,538
74
113
981
114
15
-
-
177
103
243
-1,137
1,171
81
13
6
-1,533
80
-166
516
-2,141
-116
218
97
86
50
47
20
18
236
56
265
21
20
14
9
5
4
2,640
886
1.097
340
-62
247
177
-3
34
-153
4
54
-9
-251
155
549
-3,471
75
86
-114
65
-237
79
-540
75
10
137
-142
-1,322
-1,195
-923
20,250
4,190
1,473
5,271
2,319
228
13,216
3,641
2,662
3,728
-361
-911
-6
-
-
-
-
-
-2
-2
-
-
•
-
6
5
1
- 1
•
103
74
163
199
30
22
31
-8
157
-94
132
76
-3
3
1,165
-83
95
15
15
18
6
^J^
64
•
1
36,016
4,556
1,049
6,519
2.883
114
13,354
3,213
2,455
248
-2,044
-1.316
700
767
20O
110
-860
-736
-251
13
-51
53
13
-8
2__
731
-4.063
345
92
650
1
1
5
7
4
127
272
458
13
12
51
38
-2
71
119
56
6
3
64
24
366
85
217
-27
44
-20
-511
-104
-11
-34
40
10
75
27
175
59
-11
*
1
-14
18
-1
2
21
3
6
12
24
4
-2
15
*
«
-1
14
-4
-4
606
475
563
-553
33
*
139
464
16
-1,151
294
758
57
-2
36
25
93
16
5
26
-1
2
10
1
1
135
-11
6
2
8
1
*
*
28
6
7
- 1 3
2
1
311
199
-118
23
3
5
8
5
5
-41
12
-1
-47
-91
69
U
7
-1
1_56
^li
li^
il^
79
-124
-353
-497
2
-1.410
-109
90
163
750
29
161
69
140
115
112
1,349
-30
-213
-24
3
9
15
31
-2
14
-2
17
.-- ... ...
.--2-11
3*
12 1-14 2*2 512
-1-1
...
1*1 1** '11
414
Total Latin America
and Caribbean
-86
213
-
-75
9
2
2
5
163
143
553
199
55
35
13
55
23
133
•
9
94
37
430
9^2
201
-3
129
-13
827
726
-326
121
-I
3
27
2
1
-6
-67
-12
68
189
102
31
937
306
362
104
139
1
-1,082
477
359
1,054
2,769
7
57
91
755
-422
-S3
-23
-395
-37
10
3
760
642
3,096
15
-11
29
23
4
1
-13
7
-1
27
-46
4
Asi a:
China:
Mainland
Taiwan
Hong Kong
India
-61
-11
432
Indonesia
Israel
Japan
Korea
Lebanon
Malaysia
Pakistan
Philippines
Singapore
Syria
Thailand
Oil-exporting countries 1/...
Other Asia
7
4
2,383
-440
-160
1,379
-681
-106
-3,941
-459
1
*
-24
-73
3,223
2
19
3*1-1
1*1
2
*
100
102
*
•
3
-2
15
-1
12
*
-5
27
4
625
1,897
-33
3,348
1,232
-702
HI
44
9
14
25
-1
27
-4
11
•
-12
1
1
Asia
i
5,706
755
-20
2,139
-156
938
-265
-1
2
2
-18
173
-I
*
*
•
1
-1
•
-132
1.258
67
15
2
1
14
259
-206
-49
23
1
446
-42
133
-59
-1.428
-19
105
-65
241
-12
180
65
60
1.894
2.532
... ...
1
-
*
*
-3
211
150
62
21
*
8.148
514
-2.849
2.906
-212
-26
292
32
52
393
38
14.000
-1.154
-2,366
6,937
2,800
504
Total
.
.
17
-1
-2
-19
-13
1
3
-1
-6
1
-5
*
-20
2
-I
1
-1
*
•
435
-360
35
3.530
-43
173
6.944
1.341
... ... ..[
...
-1-1-1
-5
_2_/.
•
2
;;
Total
Africa:
Egypt
Ghana
Liberia
Morocco
South Africa
Zaire
Oil-exporting countr es
Other Africa
6
-4
...
*
-1
3
2__
-1,079
-2
1
•
-1
*
*
-
-
1
•
-
2
•
3
19
-1
-1
*
53
33
4
•
*
37
10
7
-2
107
23
-38
-8
-6
*
1
1
*
*
-1
-4
-1
-4
.
-
.
.
-
-
3
•
-
31
1
1
2
2
*
-1
2
•
*
*
-1
.-[•
7
78
Africa
Other countries:
Austral ia
All other
Total
other countries.
Total
foreign countries
International and regional:
International
European regional
Latin American regional
Asian regional
African regional
Middle Eastern regional
Total international
and regional
Grand total
*
J_/
Less than $500,000.
Includes Bahrain, Iran,
52,747
--
-738
-
-
160
1
166
-40
1.976
2.649
-808
330
101
-202
23
15
-10
-245
-26
54,723
7.205
-6.527
15.120
6.255
2.193
19.055
6.737
3,402
9.589
-1,213
Iraq, Kuwait,
13
-206
192
-58
Oman, Oatar,
Saudi
356
-35
-28
92
-214
-25
9
13
31
3
31
;7
I
..- ...
2.350
3
231
250
153
-134
1.473
5
8
6
-243
-26
2
-
-
-
-
3
8
6
-13
-2
-
1
-
-
-
-
-
-
•
;
8
2
-_3
1
1
-1
Arabia and the United Arab Emirates (Trucial
2J Includes Algeria. Gabon, Libya and Nigeria.
16
'
16_
-3.299
States).
100
CAPITAL MOVEMENTS
NET PURCHASES OF LONG-TERM DOMESTIC
SECURITIES BY SELECTED COUNTRIES
Calendar Years
45
n
40
-
35
-
30
-
B
i
I
I
i
25
n
s
20
-
15 f
D
10 -
o
I
I
a
r
s
5 -
1
986 through
1
990, First Quarter
CAPITAL
Table
CM-V-4. -
101
MOVEMENTS
Foreign Purchases and Sales of Long-Term Securities,
by Type and Country, [Xirlng First Quarter 1990, PrellmlnEa'y
[In millions of dollars]
Gross purchases by foreigners
Gross sales by foreigners
Domestic securities
Marketable
Bonds
Treasof U.S.
ury A
Gov't
Federal corp.
Financ- and fed- Corporate
erally
and other
ng
Total
Bank
sponpurbonds * sored
chases notes
agencies Bonds Stocks
Country
i
(2)
(1)
Europe
Austria
Belgium-Lux...
Bulgaria
Czechoslovakia
Denmark
Finland
cpance
German Dem. Rep
Germany
Greece
Hungary
Ireland
Italy
Netherlands...
Norway
Poland
Portugal
Romania
Spain
Sweden
Switzerland...
Turkey
United Kingdom
U.S.S.R
Yugoslavia
Other Europe.
:
(31
(4)
840
2.963
3
11
162
254
211
2.016
*
-
-
-
*
2.796
1,568
9,866
1,S8S
1,296
4,306
194
198
168
14
102
56
34
314
23
18
*
15.135
6.815
170
121
10
885
3,230
8.365
1,821
•
408
•
615
861
5.076
1,291
366
10.039
7,783
10,691
3,532
6,893
3,353
67
29
189.284
133,189
1
2
Stocks
Bonds
(7)
14
16
178
331
382
30
39
1,379
•
•
33
17
-
-
17
-
1,627
4.946
1.436
15,956
5,834
17
676
1,478
5,612
35
7
3
74
10
25
1
30
1
7
781
345
•
8
79
75
104
2
7.217
1,407
137
10
45
191
422
803
190
297
1,446
63
2,219
1,041
101
•
13
4
1
12
3,285
6,716
3,892
199
34
55
958
3
5
125
376
511
152
117
282
4,278
1.101
1,183
131,716
3,035
3,795
11,802
22.728
11,916
.
6
.
97
43
101
136
29
452
428
1,264
1,288
795
348
3
1,048
3,330
10,834
1,791
38
941
119
.
.
-
•
7
3
2
130
*
3,355
970
545
1,292
2,146
10,041
7,381
10,853
5
4
16
17
10,991
23,380
12,005
184,991
199
437
•
13
3,263
6,456
132
150
HI
859
1,920
108
43
175
397
35
335
65
145
1,807
109
23
26
13
,
9
481
1,622
57
12
,
1
222
47
I
26
--....
-•-•12
...
-.-*._
3-1517
_..
•••2--
903
3.411
190
294
199
183
(14)
223
1
2
Stocks
35
63
16
•
(13)
166
5
106
-
Bonds
(12)
2,085
*
1
1,347
7,111
(11)
1
1,867
1,318
3,678
1,317
2
184
264
(101
(9)
Foreign
securi 1 es
2,869
1,493
8,885
252
125
1,741
...
.
399
674
Total
sales
(8)
....-_
-23-''
«•-..__*
1.599
6.380
-
Foreign
securi ties
(6)
(5)
Domestic securities
Marketable
Bonds
Trcasof U.S.
ury 4
Gov't
Federal corp.
Financ- and fed- Corporate
ing
erally
and other
Bank
sponbonds 8 sored
notes
agencies Bonds Stocks
59
395
126
•
.
1
6
2
•
-
2
4,410
8
154
2.339
113
.
Europe
Total
Canada
Lit.
Amer.
8
Caribbean;
Argentina
Bahainas
Benuda
Brazil
Brit. Uest.Ind
Chile
Colombia
Cuba
Ecuador
Guatemala
Jamaica
Menico
Neth Antilles.
Panama
Peru
Trin.
S
Tobago
Uruguay
Venezuela
Other Lat. Amer.
I Caribbean.
Tot.
!
33
33
3
78
467
1,497
220
497
43
262
4
1,655
5,053
454
4,309
242
2
64
-
•
134
12
5
1,976
5,897
530
5,285
967
3,046
409
2,486
104
198
331
77
74
16
11
12
18
21
15
-
-
-
-
-
-
19
16
3
5
3
5
2
•
2
2
2
9
•
•
9
•
•
4
•
•
8
154
78
39
66
36
1,322
2,060
61
45
8,879
43
632
4
24
23
36
1.478
595
20
258
9
4,429
232
238
1,940
86
25
72
263
422
226
80
20
1
3
2
11
1
1
3
•
1
'
1
•
*
57
44 1
11
1
9
8
10
12
14
1
362
22
39
8
33
542
6^6
238
20
24
185
76
42
m
3.931
954
881
16
1
219
21
62
309
33
56^
4.125
879
6.758
1,559
1,387
Lat. Amer.
Caribbean
25.983
9,977
6,179
1,521
6,261
2,038
1.007
24,255
9,547
102
CAPITAL MOVEMENTS
Table
CM-V-5. -
Foreign Purchases and Sales of Long-Term Securities,
by Type and Country, During Calendar Year 1989
[In millions oF dollars]
Gross sales by foreigners
Gross purchases by foreigners
Oomestic securities
Domestic securities
Marketable
Bonds
Treas- of U.S.
ury S
Gov't
Federal Corp.
Financ- and fed- Corporate
erally
and otiier
ing
Bank
sponbonds S sored
notes
agencies Bonds Stocks
Country
Total
pur-
chases
111
"Justria
Belgium-Lut..
Bulgaria
Czechoslovakia
Denmark
Finland
France
German Oen. Rep
Germany
Grcec"
Hungary
Ireland
Italy
Neth-rlands.
Norway
Poland
Portugal
Romania
Spain
Sweden
Switzerland...
Turkey
United Kingdom
.
.
--•*--
(13)
(14)
.***--
3,285
9,383
8
56
381
2,238
837
6,852
633
3,367
-
-
-
3
-
-
413
244
80
9.813
10,477
21,547
383
593
426
357
64
1,070
8,179
1,395
508
11,587
281
3,017
12,581
11,926
47,761
353
183
7,478
1,237
372
11,108
22
*
1
32
1
*
3
19
1
9
1,316
7,450
15,437
3,259
12,778
3,632
19
6
573
42
8,316
149
51,333
1.029
1,865
5
7
164
3
•
1
6
60,922
1,123
32,571
375
389
63
73
-
24
5.095
8,446
33.635
8.408
4,166
2,183
21,819
6.993
23
297
260
45
23
154
1.367
269
21
14
Stocks
Bonds
(121
3
30
42
(U)
(10)
5,171
23,310
1,052
204
1.384
781.394
(91
-
924
704
433
4
(a)
*
Foreign
securl ties
978
3,115
10,659
22,991
IJ.S.S.R
(71
Corporate
erally
and other
sponsored
agencies Bonds Stocks
2
12,037
12.116
46.461
28.291
62.754
43.695
(61
(51
Total
sales
Gov't
Corp.
and fed-
676
3,112
114
882
-
*
Bonds Stocks
ing
Bank
bonds
notes
of U.S.
1
56
529
*
1
Foreign
securities
Bonds
844
7,207
3.629
10,436
3
378
Yugoslavia...
Other Europe.
(4)
5,585
23,144
1
.
(3)
(2)
Marketable
Treasury 4
Federal
Financ-
96
266
•
24.665
301
2
2
-
75
15
338
1,331
3.532
193
120
3,073
2.819
250
5,111
7,609
35.452
7.039
3.988
1,940
84
446
1.632
3.801
629
I
.
.
1
13
21
49
5
138
...
-*.*--
21.549
58.322
15.287
1.225
41
58
121
430
1,915
2
1
219
1.016
19.606
1.601
2.424
3.188
3.641
330
3,268
*
25.086
61.005
48,661
3
»
252
1,088
97
4.954
3
-
12
29
3
343
121
37
1,608
3.633
430
419
1,313
3.936
254
358
2,617
4.114
334
I
.
•
4
20
21
61
216
209
57
466
23,077
1.513
2.209
3,683
3.012
319
5,201
24
22.955
5.821
10
80
163
735
32
1
18.908
57,936
14,190
1.228
7
344
••
2,166
.«.
.*.--2
27
9
47
8,174 18.306
46.424
93.311
42.558
2
1
37
*
26
397
212
1.920
5,701
106
9
794
1,468
248
1,250
4B2
898
100
2
29
6
3
85
564.150 13.445 31.522
50.151
84,602
37,524
752,671
543,900
>
1
10
-
48
8
226
856
1,725
51
413
6.120
23,704
2,812
15.337
42
18
286
1.240
2.626
14,019
2,166
6.237
135
166
9
18
114
23
453
744
6.104
902
548
316
72
91
177
36
16
34
89
119
94
33
82
96
32
9
4
33
4
7
71
•
18
13
10
4
18
•
4
337
257
159
394
1,016
10.143
2.949
789
101
6
15
1,967
250
23
226
345
1.390
85
161
4
443
2,157
25.356
4,961
270
7
»
\
I
>
'
13
19
197
1.205
31
6
9
47
1
881
17
24
102
232
31
20
3.228
8.613
20,778
44
23
63
20
81
10
415
•
1
2
-
63
28
211
286
20
366
183
54
-
89
13.250
Total Europe
Canada
Amer. 4 Caribbean:
Lat.
Argentina
Bahamas
Bermuda
Brazil
Brit. West Ind.
Chile
Colombia
Cuba
Ecuador
Guatemala
Jamaica
Mexico
Neth. Antilles.
Panama
Peru
Trin. S Tobago
Uruguay
Venezuela
Other lat. Amer
• Caribbean.
645
6.648
24.760
2,399
16,281
2.752
12.610
2,057
6,651
567
45
4 36
135
1
116
161
565
1.849
1.978
7.050
27
112
73
110
1,109
6.462
786
906
101
55
78
132
137
56
25
......
•1153*
10
2
3
2
302
527
1.072
29
154
2,525
449
9,671
2,271
33
122
37
32
89
191
82
22
1.351
47
298
664
5
957
4,528
4,950
218
3,071
4.145
10.090
32,782
1
546
30
9
13
5
32
14
24
136
3.109
27,842
5,338
943
395
10,618
846
3,413
281
4
194
20
37
5
1.192
40
3.027
7.786
21.505
22
270
11
.
38
76
102
106
799
235
1.517
4
6
242
697
1,273
98
54
43
1
919
305
1,099
_.-...
8.916
2.136
133
3
•
1
1.037
296
8
'
Tot. Lat. Ame
S
Caribbean
Asia:
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Lebanon
Malaysia
Pakistan
Philippines...
Singapore
Syria
Thailand
Other Asia
3.856
9.302
35.675
580
466
7,942
1,098,872
4.602
257
393
31
13
3
1
2
19
23
7,340
955,052 20.599 13.260
154
2.325
1.516
125
1
4
40
6.472
5.993
23
14
127
32
179
34
199
339
32.106
45.330
61
73
61
483
4
2
168
1
66
6.478
6.017
•••72'
17
3
2
1.007
52.603
576
43.588
29
740
1.277
61.903
1.601
•
11
*
213
827
156
401
1.740
63.938
26
145
1.115
128
1.837
13.716
480
1.483
Total Asia... 1,304,549 1,116,032 24.892 17,216
52,540
56,260
53
73
9
2.075
80,948
12
13
45
3
206
28
33
187
34
1
188
615
42.571
242
27
28.758
33
92
73
12
I*>5
3
33.280
101
6
1
266
95
•
3
I
13
926
58
144
27
25
48.963
649
45.365
14
1.060
295
140
1.133
768
1.262
3
1
1.065
53.247
•
24
14
1,762
1.837
10,230
483
1,672
153
191
37.610 1.271.821 1,102.032 17.954 15.321
45.596
52,753
38.165
15
1
13
1
.4.9..
34
66
10
•
5
I
-
9
-
•
3
2
4
-
1
9
•
120
7
93
4
4
79
631
33
51
726
45
4
69
524
43
38
•
8
*
•
13
6
32
35
94
•
118
72
13
2
158
33
<
-
-
3
7U
377
34
29
2
*
167
127
I
.
_
-
4
3
-
300
6
18
117
117
9
361
17
98
722
240
130
10,117
1.269
26
58
250
2,302
139
4,434
1.993
2,296
45
84
295
2,440
6.426
2.445
1,963
477
47
124
853
273
189
20.640
4,149
11,370
1.456
13
67
411
106
2,554
160
4,168
2.297
2,124
19,425
3.652
12,825
80
517
2,714
6.464
33
9
4
568
-
Africa.
24.789
6
U
Other countries:
Australia
All other
Total other..
24
23
5
2,814
17
1
1,567
Total
2
764
918
4.192
896
139
Egyjt
Ghana
Liberia
Morocco
South Africa..
Zaire
Other Africa..
21
318
404
24
6,908
23
952.669 14.893 12.635
42
2.765
761
315
272
'
475
7,785
32.524 1.084.807
63
3.944
3
21
41
310
4.501
63
2,187
23,076
11,386
5
-
149
"countries.'! 2.695,140 2,025,032 50,222 68,936 212,481 230,322 108,147 2.617.160 1.972.284 35,432 49.904 202,647 236,258 120,634
"international.
European reg..
Lat. Amer.
reg
Asian regional
African reg...
Hid. East, re g
"and reg
75,180
148
995
1.175
69,399
1,099
75
493
3,344
770
736
-
-
-
-
37
42
-
-
11
?
2
-
103
132
743
35
70
45
-
1.273
880
2.228
1.872
622
36
-
-
615
847
2
4
2
2.003
1.806
-
-
-
23
225
62
4
:
:
79.499
73.246
877
78
738
3.762
14
31
12
-
52
-
2.334
1.739
853
1.097
2.156
1.671
-
-
146
-
55
12
1
:
81.571
75.222
1.207
101
493
3.777
770
73,159
67,927
2.888
796
2
^
^J^j
Grand total.. 2.776.711 2.100.253 51.430 69.036 212.975 234.099 108.917 2.696.659 2.045.530 36.310 49.982 203.385 240.020 121.433
•
Less than S500.000.
103
FOREIGN CURRENCY POSITIONS
INTRODUCTION
Background
Data have been collected since 1974 on the foreign currency
banks and nonbanking firms in the United States, and on
those of foreign branches, majority-owned foreign partnerships, and
majority-owned foreign subsidiaries of U.S. banks and nonbanking
firms. Reports cover five major foreign exchange market currencies
and U.S. dollars held abroad. Reporting has been required pursuant
of Public Law 93-110, an amendment to the Par Value
to title
Modification Act of September 21, 1973, and implementing Treasury
regulations. Statistics on the positions have been published since
March 1977 beginning with data for December 1975.
positions of
II
"Majority-owned foreign partnerships" are those organized under the laws of a foreign country In which one or more nonbanking
concerns or nonprofit institutions In the United States, directly or
indirectly, own more than 50 percent profit interest. "Majority-owned
foreign subsidiaries" are foreign corporations in which one or more
nonbanking business concerns or nonprofit institutions located in the
United States, directly or indirectly, own stock with more than 50
percent of the total combined voting power of all classes of stock
entitled to vote, or more than 50 percent of the total value of all
classes of stock.
Reporting Threshold
The report forms and instructions used in the collection of bank
data were revised effective with reports as of March 16, 1983, for the
weekly reports. The most recent revision of the nonbank foreign
currency forms (see below)
day of March 1983.
Common
Definitions
became
effective as of the last business
and Concepts
The term "United States" means
the States of the
United
States, the District of Columbia, the Commonwealth of Puerto Rico,
American Samoa, Midway Island, the Virgin Islands, and Wake Is-
The term "foreign" means locations other than the "United
The term "worldwide" Is used to describe the sum of "United
States" and "foreign" data.
land.
States."
United States Include amounts reported by sole
proprietorships, partnerships, and corporations In the United States
including the U.S. branches and subsidiaries of foreign nonbanking
concerns. In the case of "nonbanking firms' positions," and the
agencies, branches, and subsidiaries located In the United States of
foreign banks and banking Institutions, In the case of the weekly
"bank positions."
Data
for the
Data for "foreign branches" and "abroad" include amounts reported by the branches, majority-owned partnerships, and majorityowned subsidiaries of
banking and nonbanking concerns. In
general, these data do not reflect the positions of foreign parents or
foreign parents' subsidiaries located abroad except through Intercompany accounts. The data Include the foreign subsidiaries of a
few foreign-owned U.S.-based corporations.
The exemption level applicable to banks and banking instituwas $10 million equivalent through January 1982, when was
raised to $100 million. The exemption level applicable to nonbanking
business concerns and nonprofit institutions was $1 million equivalent on all nonbank forms from March 1975 through November 1976.
It was raised to $2 million equivalent on the monthly reports of positions held In the United States from November 1976 through September 1978. The exemption level was raised to $3 million on foreign
subsidiary positions on June 30, 1977, and for positions held In the
United States on September 30, 1978. The exemption level for nonbanking firms was raised to $100 million on positions In the United
States in January 1 982 and on foreign branch and subsidiaries positions in March 1982.
tions
it
Firms must report their entire foreign currency position In a
If a specified U.S. dollar equivalent value
Is reached In any category of assets, liabilities, exchange contracts
bought and sold, or the net position in the currency. In general, exemption levels are applied to the entire firm. In reports on their foreign branches, majority-owned foreign partnerships, and majorityowned foreign subsidiaries, U.S. banks and nonbanks are required
to report the U.S. dollar-denominated assets, liabilities, exchange
contracts bought and sold, and net positions of those branches,
specified foreign currency
partnerships,
and subsidiaries with reportable
positions
in
the speci-
fied foreign currencies.
US
Description of Statistics
Data collected on the Treasury foreign currency forms are pubIn the Treasury Bulletin In seven sections. The first section
presents a summary of worldwide net positions in all of the currencies reported. Sections
through VI each present data on a
specified foreign currency. Section VII presents the U.S. dollar positions of the foreign branches and subsidiaries of U.S. firms which are
lished
Assets, liabilities, and foreign exchange contract data are reported on the basis of time remaining to maturity as of the date of the
report, regardless of the onginal maturity of the instrument Involved.
"Spot" means due for receipt or delivery within 2 business days from
the date of the report. "Short-term" means maturing in 1 year or less
from the date of the report.
II
required to report
in
one or more
of the specified foreign currencies.
104
FOREIGN CURRENCY POSITIONS
Section l.--Summary Positions
Table FCP-i-l."Nonbanking Firms' Positions
[In
Report
date
millions of foreign currency unils, excepi yen,
which
is in
billions]
Canadian
German
Japanese
Swiss
British
U.S.
dollars
marlffi
yen
francs
pounds
dollars *
105
FOREIGN CURRENCY POSITIONS
Section ll.--Canadlan Dollar Positions
Table FCP-ll-1.--Nonbanking Firms' Positions
[In
.
Report
date
millions of dollars]
106
FOREIGN CURRENCY POSITIONS
Section lll.--German Mark Positions
Table FCP-lll-1.-Nonbanking Firms' Positions
[In
Report
date
millions of marks]
107
FOREIGN CURRENCY POSITIONS
Section !V.--Japanese Yen Positions
Table FCP-IV-1.--Nonbanking Firms' Positions
108
FOREIGN CURRENCY POSITIONS
Section V.--Swiss Franc Positions
Table FCP-V-1.--Nonbanking Firms' Positions
[In
Report
date
millions of francs]
109
FOREIGN CURRENCY POSITIONS
Section Vl.--Sterling Positions
Table FCP-VI-1.--Nonbanking Firms' Positions
[In
Report
dale
millions of
pounds]
110
FOREIGN CURRENCY POSITIONS
Section VII.-U.S. Dollar Positions Abroad
Table FCP-VII-1.--Nonbanking Firms' Foreign Subsidiaries' Positions
[In
millions of dollars]
111
FOREIGN CURRENCY POSITIONS
Footnotes to Tables FCP-I through FCP-VII
SECTION
o
I
Excludes receivables and installment paper sold or discounted before maturity, fixed
Worldwide net posilions on the
business concerns
in
last
business day
of the
calendar quarter
ol
nonbankJng
the United Stales and their foreign branches and majority -owned
assets
partnerships and subsidiaries. Excludes receivables and installment paper which have been
sold
or
discounted
before
maturity,
U.S.
parent
conpanies'
investment
in
Includes both spot and forward
5
leases for plant and equipment.
2
Columns
1
and 3
are expressed
of
banks and banking
institutions
in
the United States.
dollar.
and
their foreign
and
liabilities.
less
in
parents'
investment
exchange
columns 2 and
of
institutions
subsidiaries. In
in
Excludes
section
VII.
foreign
capital liabilities.
Includes both spot and fonward exchange contracts.
Positions of nonbanking business concerns
in
the United
branches and majority -owned partnerships and subsidiaries.
foreign
States and their foreign
In
branches and majority -owned partnerships and subsidiaries
section VII positions of
Columns 3 and 9
only.
See footnote
6.
all
others
in
foreign units per U.S.
less
1
988.
the United States and their foreign branches and
Excludes capital assets.
g
1
foreign
rates.
subsidiaries only.
VII
majority-owned
the automated representative rates changed as of June 30.
Banks and banking
majority -owned
SECTIONS II THROUGH
in
4.
U.S. dollars per unit of foreign currency,
The source
branches and majority-owned foreign subsidiaries. Excludes capital assets
Foreign branches and majority -owned subsidiaries only.
and
Representative rates on the report date. Canadian dollar and United Kingdom pound rates
Foreign branches and majority-owned partnerships and subsidiaries only.
Weekly worldwide net posilions
equipment),
and equipment leases are excluded.
Capitalized plant
their
majority-owned foreign subsidiaries, fixed assets (plant and equipment), and capitalized
and
(plant
subsidiaries.
columns 6 and
12.
branches
and
majority-owned
112
EXCHANGE STABILIZATION FUND
INTRODUCTION
ments as liabilities, they must be redeemed by the ESF only in the
event of liquidation of, or U.S. withdrawal from, the SDR Department
Background
Fund (ESF) was established under
January 30, 1934 (31 U.S.C. 822a). This act
authorized the establishment in the Department of the Treasury of a
stabilization fund to be operated under the exclusive control of the
The Exchange
the Gold
Stabilization
Reserve Act
of the
I
MF or cancellation
of
SDRs.
of
Secretary of the Treasury, with the approval of the President, for the
purpose of stabilizing the exchange value of the dollar. Subsequent
amendment of the Gold Reserve Act modified the original purpose
somewhat to reflect termination of the fixed exchange rate system.
SDR certlflcates.-\ssued to the Federal Reserve System
against SDRs when SDRs are "monetized" and the proceeds of the
monetization are deposited in an ESF account at the Federal Reserve Bank of New York.
Description of Tables
The resources of the fund consist of
invested in U.S. Government securities,
(SDRs), and balances of foreign currencies.
dollar balances,
partly
drawing
rights
special
sources of income or losses for the
or losses on holdings of and transactions in
foreign exchange, and the interest earned on assets.
The
been
principal
profits
ESF have
SDRs and
Table ESF-1 presents the assets, liabilities, and capital of the
ESF. Data are presented in U.S. dollars or U.S. dollar equivalents
based on current exchange rates computed according to the accrual
method of accounting. The capital account represents the original
capital appropriated to the ESF by Congress of $2 billion, less a
subsequent transfer of $1.8 billion to pay for the initial U.S. quota
Subsequent gains and losses since incepcumulative net income (loss) account.
subscription to the IMF.
tion are reflected in the
Definitions
Special drawing ngAite-international assets created by the
International Monetary Fund (II^F). They serve to increase international liquidity
and provide
additional international reserves,
be purchased and sold among
SDR
eligible holders
through the
and may
IIVlF.
allocations.-Jhe counterpart of SDRs issued by the IMF
in the IMF. Although shown in ESF state-
based on members' quota
Table ESF-2 presents the results of operations by quarter. Data
are presented in U.S. dollars or U.S. dollar equivalents computed
according to the accrual method of accounting. The "Profit (loss) on
foreign exchange" includes realized profits (losses) on sales of foreign currencies as well as revaluation gains (losses) on currencies
held. "Adjustment for change in valuation of SDR holdings and allocations" reflects the net gain (loss) on revaluation of SDR holdings
and
allocations for the quarter.
113
EXCHANGE STABILIZATION FUND
Table ESF-1 .--Balances as of Sept. 30, 1989, and Dec. 31, 1989
[In
Assets,
liabilities,
and
capital
thousands
of dollars]
Sept. 30. 1989.
through
Dec. 31.1989
Sept. 30. 1989
Dec. 31. 1989
Assets
U.S. dollars:
Held at Federal Reserve Bank ol
Held with Treasury:
U.S. Government securities
New York
Other
Special drawing rights '
Foreign exchange and securrties
1.014.838
(560.502)
164.185
1.067.000
9.487.031
241.526
5.459.946
Japanese yen
Pounds sterling
6,601 ,491
70
23,716
384.072
19.
Swiss francs
f^exican pesos
405.711
1 .067.000
9.950,788
81,774
600,485
5,541,720
7,201,976
671
1,748
1
19,841
25,464
341,809
75,000
86,000
219,932
(42,263)
75.000
Bolivian bolivianos
Polish ziotys
Accounts receivable
86,000
15,994
203.938
24.600.387
Total assets
Liabilities
and
25,389,577
capital
liabilities:
Accounts payable
Advance from U.S. Treasury (U.S. drawing
on II^F) 3
Total current
Other
463.757
2:
German marks
Current
454.336
9,778
86,434
96,212
1,067,000
1
,067.000
1.153.434
liabilities
liabilities:
Special drawing rights certrficates
Special drawing rights allocations
Total other
8.518.000
6.270.451
168.293
8,318,000
6,438.744
200.000
8.358.502
711.119
9.069.621
8.558.502
711.119
9.269.621
14.788.451
liabilities
Capital:
Capital account
Net income (loss) (see table ESF-2)
Total capital
Total
See
liabilities
and
200,000
24.500.387
capital
25.389.577
footnotes at end of table ESF-2.
Table ESF-2.~lncome and Expense
[In
thousands
of dollars]
Current quarter
Oct. 1. 1989.
Year
through
Dec. 31, 1989
through
Dec. 31.1989
Oct.
to date
1.
1989.
Income and expense:
on;
Foreign exchange
Profit (loss)
Adjustment
and
for
change
allocations
326.754
in
valuation of
326.754
SDR holdings
i
93.183
Interest (net charges) on:
Special drawing rights
U.S. Government secunties
Foreign exchange
74.950
18.008
198.225
Income from operations
711.120
Net Income
1
Beginning July 1974. the International Monetary Fund (IMF) adopted a technique for
valuing the special drawing rights (SDRs) based on a weighted average of exchange rates
for the currencies of selected member countries. The U.S. SDR holdings and allocations
are valued on this basis beginning July 1974.
2 Excludes foreign exchange transactions for future and spot delivery.
3 A non-interest-bearing liability to the U.S. Treasury resulting from the transfer to the
Exchange Stabilization Fund of foreign currencies drawn from the IMF by the United States.
74.950
18.008
198.225
711.120
Note. -Annual balance sheets for fiscal years 1934 through 1940 appear in the 1940
Annual Report of the Secretary of the Treasury and those for succeeding years appear in
subsequent reports through 1980, Quarterly balance sheets beginning with Dec. 31. 1938,
have been published in the Treasury Bulletin. Data from inception to Sept. 30. 1978. may
be found on the statements published in the January 1979 Treasury Bulletin.
SPECIAL REPORTS
m.
Ir
U.S.
CURRENCY AND COIN OUTSTANDING
AND IN CIRCULATION
118
U.S.
CURRENCY AND COIN OUTSTANDING AND
IN
CIRCULATION
INTRODUCTION
Definition of Terms
Purpose and Scope
The U.S. Currency and Coin Outstanding and
Statement
in
Circulation
prepared to inform the public of the face value of currency and coin which are used as a medium of exchange and the
total thereof, as of the end of a given accounting month.
is
The statement defines the total amount of currency and coin
outstanding and the portion of which is deemed to be in circulation.
Although still includes some old and current rare issues of coin and
currency which do not circulate or may do so to a limited extent,
it
Treasury policy is to continue their inclusion in the statement since
such issues were originally intended for general circulation. The
statement also provides a brief description of the various issues of
U.S. paper money and further presents a comparative amount of
money
circulated
in
The
"Amounts outstanding and in circulation"
issues by the Bureau of the Mint which are purposely
intended as a medium of exchange. Therefore, coins sold by the
Bureau of the Mint at premium prices are excluded. However, unincludes
classification
all
circulated coin sets, sold by the Mint at face value plus
charge, are included.
The term "Federal Reserve notes" refers to issues by the U.S.
Government to the public through the Federal Reserve ijanks and
their member banks. These notes represent U.S
Government
obligations. 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.
relation to population.
History
Statements of currency and coin outstanding and in circulation
have been published by the Department of the Treasury since 1888.
These statements were originally prepared monthly by the Division
of Loans and Currency, which was then under the Office of the Secretary of the Treasury but later became part of the Public Debt Service (currently known as the Bureau of the Public Debt) in 1929. The
statement was published with the title "Circulation Statement of
United States t^oney" from 1923 through December 31, 1965. Concurrently, from December 31, 1919, to September 30, 1951, the
Office of the U.S. Treasurer published a statement entitled "Monthly
Statement -Paper Currency of Each Denomination Outstanding."
Two months after the Office of the U.S. Treasurer assumed publication of the "Circulation Statement of United States Money," a revision
statement to include denomination detail of the
Publication of the "Monthly Statement- Paper
Currency of Each Denomination Outstanding" was discontinued, and
the revised version which combines information from both statements became known as the United States Currency and Coin Outstanding and in Circulation Statement. The statement in 1983
ceased to be published as a separate, monthly release and instead
was incorporated into the quarterly Treasury Bulletin as a special
currency
report.
known as
and were
lssue-1862 ($5 to
$1,000 notes), (b) Second lssue-1862 ($1 to $2 notes), (c) Third
lssue-1863 ($5 to $1,000 notes), (d) Fourth lssue-1863 ($1 to
$10,000 notes), and (e) Fifth lssue-1901 ($10 notes).
"U.S. notes" are also
issued
was made
a handling
in five
different issues;
legal tender notes
namely,
(a) First
The column for "Currency no longer issued" consists of gold
and new series), silver certificates (old and new
series). Federal Reserve notes (old and new series), national bank
notes (old and new series), and Treasury notes (1890 series).
certificates (old
"Dollar coins" include standard silver coins
"Fractional coins" include subsidiary coins
and nonsilver coins.
in
denominations
50 cents, 25 cents, and 10 cents and minor coins
(5 cents
and
of
1
cent).
to the
in circulation.
Reporting Sources
Data used in the preparation of the U.S. Currency and Coin
Outstanding and in Circulation Statement is derived from monthly
reports required from Treasury offices, various U.S. Mint offices, the
Federal Reserve banks, and the Federal Reserve Board Such reports convey information about the amount, class, and denomination
of new issues of currency and/or coin, of destroyed and replaced
currency, and of currency and coins withdrawn from circulation. Estimates of population from the Bureau of the Census are used in the
calculation of money circulated per capita.
119
U.S. Currency
and Coin Outstanding and
[Source: Financial
Management
in Circulation
Service]
AMOUNTS OUTSTANDING AND IN CIRCULATION
Mar. 31. 1990
Currency
Total
currency and
U.S. notes
Amounts outstanding
Less amounts held by:
The Treasury
The Federal Reserve banks ...
Amounts
in circulation
Currency no
Total
Dollars
^
longer issued
coin
Fractional
coin
$298,549,695,255
$279,300,656,357
$278,708,725,606
$325,520,966
$266,409,785
$19,249,038,898
$2,024,703,898
$17,224,335,000
552.562.989
40,332.767.916
39.688.770
39.764.867.245
6.901.702
39.764,853,750
32.563.039
224.029
213
13.282
512.874.219
567.900,671
322.383.689
105.494.856
190.490.530
462.405,815
257.664.364.350
239,496.100.342
238.936.970.154
292,957.714
266.172.474
18.168.264.008
1.596.825.353
16.571.438.655
CURRENCY
IN
COMPARATIVE TOTALS OF CURRENCY AND COIN
IN CIRCULATION-SELECTED DATES
CIRCULATION BY DENOMINATION
Mar. 31. 1990
Amount
Denomination
Federal
Reserve
notes
1
U.S.
notes
Currency
no longer
issued
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