Full text of Treasury Bulletin : June 1992

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m

Real Disposable Personal Income
Percent Change--4th

qtr. to 4tti qtr.

PROFILE OF

THE ECONOMY
Both real disposable personal income and real
consumer spending were soft in the final months of
1991. After-tax income rose at an annual rate of .5
percent

in

the 4th quarter, contributing to a narrow

spendable income

.4

percent increase

of

1991. Meanwhile, real consumer spending

in real

for all
fell

T

at

1 .1
percent annual rate in the 4th quarter as a
moderate increase in spending for services was
offset by a sharp decline in purchases of goods. For
all of 1991, spending was up by just 0.3 percent.

a

1

1

1

1

1

r

1

1984 1985 1986 1987 1988 1989 1990 1991

Real Personal Spending
Percent Change"4th

1984

1985

1986

1987

qtr. to 4thi qtr.

1988

1989

1990

1991

See page 27

for

Profile of the

Economy

more

of:

TREASURY
'BULLETIN
THIS ISSUE
Treasury official

tells

Congress that Japan's
market problems are
unlikely to significantly
affect

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The Treasury
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Contents
JUNE 1992

TREASURY ISSUES
Page

INTERNATIONAL FINANCES
The Japan stock market drop

is

not expected to seriously affect the U.S. stock market,

Treasury Assistant Secretary for Domestic Finance Jerome H. Powell

tells

the Senate

3

ECONOMIC POLICY
The Debt Debate,

the latest on long-term vs. short-term borrowing to finance the public debt.

Excerpted from the

Government Executive magazine

April issue of

9

TREASURY REPORTS AND INDEX
Recent Reports and Studies

13

Treasury Issues Index

19

FINANCIAL OPERATIONS
PROFILE OF THE

ECONOMY

POE-A. -Chart: Growth of real gross domestic product
POE-B. -Chart: Federal outlays and receipts as a share
POE-C.-Chart: Personal saving

POE-D. -Chart: Federal

POE-E

23
of gross domestic product

23
24
24

deficit

-Chart: Real disposable personal income; real personal spending

POE-F. -Chart: Merchandise trade

25
26

deficit

FEDERAL FISCAL OPERATIONS

FFO-B. -Chart: Budget receipts by source

28
30
30

FFO-1. -Summary of

31

Analysis-Budget

results for the

second

quarter, fiscal

1992

FFO-A. -Chart: Monthly receipts and outlays
fiscal

operations

32
34

FFO-2.-On-budget and off-budget receipts by source
FFO-3.-On-budget and off-budget outlays by agency

FEDERAL OBLIGATIONS

FO-B.-Chart: Total gross Federal obligations

37
38
38

FO-2. -Gross obligations incurred outside the Federal Government by department or agency

39

FO-1 .-Gross obligations incurred inside and outside

of the Federal

Government by object class

FO-A.-Chart: Gross Federal obligations; gross Federal obligations incurred outside the Federal Government

ACCOUNT OF THE

U.S.

TREASURY

UST-1. -Elements of changes

in

Federal Reserve and tax and loan note account balances

42

FEDERAL DEBT

FD-4. -Interest-bearing securities issued by Government agencies

44
45
46
47

FD-5. -Maturity distribution and average length of marketable interest-bearing public debt held by private investors

48

FD- 1 -Summary of Federal debt
FD-2. -Interest-bearing public debt
FD-3. -Government account series

IV

Contents
Page

FD-6.-Debt subject

48

to statutory limitation

FD-7.-Treasury holdings of securities issued by Government corporations and other agencies

49

FD-A. -Chart: Average length of the marketable debt

50

FD-B. -Chart: Private holdings of Treasury marketable debt by maturity

51

PUBLIC DEBT OPERATIONS
TREASURY FINANCING
PDO-1 -Maturity schedule
Treasury

PDO-2 -Offerings
PDO-3. -Public

bills

53

of interest-bearing marketable public debt securities other than regular w/eekly

57

outstanding

63

of bills

offerings of marketable securities other than regular weekly Treasury

PDO-4. -Allotments by investor classes
U.S.

and 52-w/eek

for public

65

bills

68

marketable securities

SAVINGS BONDS AND NOTES

SBN-1 -Sales and redemptions by
SBN-2. -Sales and redemptions by
SBN-3 -Sales and redemptions by

series, cumulative

period,

all

71

series of savings bonds

period, series E, EE, H,

and notes combined

71

and HH

72

OWNERSHIP OF FEDERAL SECURITIES
OFS-1. -Distribution

of

Federal securities by class of investors and type of issues

OFS-2.-Estimated ownership

of public

74

75

debt securities by private investors

MARKET YIELDS
MY-1 -Treasury market
MY-A. -Chart: Yields

bid yields at constant maturities:

bills,

notes,

and bonds

77
78

of Treasury securities

fu1Y-2.-Average yields of long-term Treasury, corporate, and municipal bonds by period

MY-B.-Chart: Average yields
U.S.

of long-term Treasury, corporate,

CURRENCY AND COIN OUTSTANDING AND

USCC-1. -Amounts outstanding and
USCC-2.-Amounts outstanding and

IN

80

and municipal bonds

81

CIRCULATION

in circulation;

currency, coin

83

in circulation;

by denomination, per capita comparative totals

84

FEDERAL AGENCIES' FINANCIAL REPORTS
FAFR-1 .-Direct and guaranteed loans

86

FAFR-A— Chart:

89

Direct

and guaranteed loans

INTERNATIONAL FINANCIAL STATISTICS
94

IFS-1 -U.S. reserve assets

IFS-2.-Selected U.S.

liabilities to

95

foreigners

IFS-3.-Nonmarketable U.S. Treasury bonds and notes issued

to official institutions

and other residents

IFS-4. -Trade-weighted index of foreign currency value of the dollar

of foreign countries

96

97

CAPITAL MOVEMENTS
LIABILITIES

TO INTERNATIONALS REPORTED BY BANKS

IN

THE UNITED STATES
99

CM-l-1 -Total

liabilities

by type of holder

CM-l-2. -Total

liabilities

by type, payable

CM-l-3. -Total

liabilities

by country

101

CM-l-4. -Total

liabilities

by type and country

103

CM-A.-Chart: International

liabilities

in

dollars

1

00

105

Contents
Page

CLAIMS ON FOREIGNERS, REPORTED BY BANKS

IN

THE UNITED STATES
106

CM-ll-1. --Total claims by type

107

CM-ll-2. -Total claims by country
CM-ll-3. -Total claims

on foreigners by type and country, reported by banks

in

SUPPLEMENTARY LIABILITIES AND CLAIMS DATA REPORTED BY BANKS
CM-lll-1 -Dollar claims

109

the United States

IN

THE UNITED STATES

on nonbank foreigners

CM-lll-2. -Dollar liabilities

CM-B. -Chart: Claims on

and other

financial

Ill

commitments

of the United States

Government

112
113

internationals

AND CLAIMS ON, FOREIGNERS, REPORTED BY NONBANKING BUSINESS ENTERPRISES
THE UNITED STATES

LIABILITIES TO,

IN

CM-IV-1. -Total

liabilities

and claims by type

114

CM-IV-2.-Total

liabilities

by country

115

CM-IV-3. -Total

liabilities

by type and country

117

CM-IV-4. -Total claims by country

119

CM-IV-5. -Total claims by type and country

121

TRANSACTIONS IN LONG-TERM SECURITIES BY FOREIGNERS REPORTED BY BANKS AND BROKERS
THE UNITED STATES

CMC. -Chart:

Net purchases of long-term domestic securities by selected countries

CM-V-1 -Foreign purchases and sales
CM- V-2. -Foreign purchases and sales

CM-V-3— Net

foreign transactions

in

domestic securities by type

of long-term foreign securities

by type

long-term domestic securities by type and country

CM-V-4. -Foreign purchases and sales

CM-V-5— Foreign purchases and

of long-term

of long-term securities,

IN

123
1

24

124

125

by type and country

127

and country

129

sales of long-term securities, by type

FOREIGN CURRENCY POSITIONS

SUMMARY POSITIONS
FCP-l-1

-Nonbanking

firms' positions

FCP-l-2.-Weekly bank positions

132
132

CANADIAN DOLLAR POSITIONS
FCP-ll-1. -Nonbanking firms' positions

133

FCP-ll-2.-Weekly bank positions

133

GERMAN MARK POSITIONS
FCP-lll-1. -Nonbanking firms' positions

FCP-lll-2 -Weekly

bank positions

134
134

JAPANESE YEN POSITIONS
FCP-IV-1 .-Nonbanking

firms' positions

FCP-IV-2.-Weekly bank positions

1

35

135

SWISS FRANC POSITIONS
FCP-V-1 -Nonbanking

firms' positions

FCP-V-2.-Weekly bank positions

136
136

VI

Contents
Page

STERLING POSITIONS
FCP-VI-1.-Nonbanking

137

firms' positions

137

FCP-VI-2.--Weekly bank positions

U.S.

DOLLAR POSITIONS ABROAD

FCP-VII-1.--Nonbanking

firms' foreign subsidiaries' positions

FCP-VII-2 --Weekly bank foreign office positions

138
1

38

EXCHANGE STABILIZATION FUND
ESF-1 -Balance sheet

141

ESF-2— Income and expense

141

GLOSSARY

142

NOTES
Details offigures

may not add

r represents Revised,

to totals

p Preliminary,

because of rounding.

n.a.

Not available.

VII

Nonquarterly Tables and Reports
For the convenience of the Treasury

Bulletin user, nonquarterly tables

and

reports are listed below along

with the issues in which they appear.

Issues

March

June

Sept.

Dec.

Federal Fiscal Operations
FFO-4. -Summary of internal revenue collections by States and other areas

Capital

.

.

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
Consolidated Financial Statements of

Statement

and

of Liabilities

tfie

Commitments

of

tfie

United

V

States Government
Trust

V

United States Government

Otfier Financial

Fund Reports:

Civil

service retirement

Airport

and airway

Asbestos

trust

and

trust

disability

V

fund

V

fund

fund

V

Black lung disability trust fund

V

V
V
V

Federal disability insurance trust fund
Federal hospital insurance trust fund

Federal old-age and survivors insurance trust fund
Federal supplementary medical insurance trust fund

Harbor maintenance

trust fund

V

V
V

Hazardous substance superfund

Highway

trust

fund

Inland waterways trust fund

V

Leaking underground storage tank
National service

life

trust

fund

V

insurance fund

V

Nuclear waste fund
Railroad retirement account
Reforestation trust fund

V

Unemployment trust fund
Investments of specified

trust

accounts

V

V
V

TREASURY ISSUES

Treasury Official Tells Congress Dropping Japanese Market
Will Not Significantly Affect Independent U.S. Stock Market
The following addresses the recent economic and financial developments in Japan and the effect those developments might ultimately have on our own economy. It was excerpted from a statement given by then Assistant Secretary
of the Treasury for Domestic Finance Jerome H. Powell.

The

increasing internationalization of national econo-

mies and financial mar1<ets is a fact of life. On balance, It is
a positive trend, full of benefits for each and every nation.
Globalization allows the world to mobilize

its

savings

more effectively, drawing funds to those Investment prqects
wherever they may be located. It
allows the world economy to produce at the lowest possible
cost in terms of resources, directing demands for products
to whereverthe most efficient sources of supply are located.
At times of economic adversity abroad, however, increased
international ties can become a source of concem.
that offer the best returns,

The economic links between the United States and Japan are many, and they cover a broad range of areas, from
finance to farming. The concem that has been expressed
about the possible spillover effects

sharp decline

of the

In

Japanese stock prices is, therefore, an understandable one.
will review some of the particular areas in which one
might expect to see those effects-for example, in Japanese
banks' activities in this country, in Japan's investments in
our securities and real assets, and in Japan's exports to and
imports from the United States.
I

To summarize my conclusion: while the links between
the two nations' economies are undeniable, it is our view
that the spillover onto our economy of the recent stock
market developments

in

Japan

is likely

Background on Developments

in

to

be

limited.

Japan's Stock Market

would like to begin by reviewing briefly the path Japan's
stock market has taken in recent years. Buoyed in part by
an expansionary monetary policy, the market soared during
the last half of the 1 980s. The Nikkei index tripled from 1 985
to its peak at just below 39,000 at yearend 1989.
I

however, was followed by an even more
Nikkei, now at roughly 17,500, has fallen
by more than one-halt from its high and is back to levels not
seen since 1986.

That rapid

rise,

rapid decline.

The

Land

prices, too, skyrocketed in the late

retreated since.
restrictions

between

on

April

The

1980s and have

Ministry of Finance's imposition of

real estate lending by commercial banks
1990 and December 1991 was undoubtedly

TREASURY ISSUES

in

business and consumer confidence. Highly leveraged

investors have kjeen especially hard-hit,
have Increased sharply.

and banlouptcles

Although real Gross National Product growth in Japan
as a whole was 4.5 percent, there was a sharp
deceleration over the 4 quarters, with a small decline in
output registered in the final quarter. A second factor behind
the drop in stocl< prices Is a general erosion In Investor
confidence. The scandals that have surfaced In that mari<et
in recent years contributed to this development.
for 1991

Since investors began to lose money in the mart<et and
then were confronted with evidence that the playing field
might be less than level, they appear increasingly to have
withdrawn. Indeed, liquidity in Japan's stock mari<et is
greatly reduced, with turnover running at pertiaps a quarter
of its eariier rate. This in turn has produced more volatility
in share prices, which makes the needed recovery in confidence that much more difficult. We are watching the situation in Japan carefully. But we believe that the decline to
date, which has occurred over a 28-month period, essentially constitutes a major correction of what was widely
acknowledged to be a distorted and inflated mart<et.

With respect to our own mari<et, there is little evidence
direct or important effects of the drop in Japanese
share prices.

of

any

In fact, U.S. stock indexes have tended to rise during the
period of decline in the Nikkei, hitting new highs within the
last month. In general, the relationship between price movements in the U.S. and Japanese stock mart<ets has been
fairiy weak, as analyzed exhaustively in Securities and
Exchange Commission Chairman Breeden's testimony be-

U.S. -based

banks have improved

their balance sheets over the last year

and are

better positioned to take advantage of lending opportunities that
may arise from a retrenchment by

Japanese banks.
fore this

Committee 2 weeks ago.

Japanese Banks'

Ability to

Meet International Capital

Standards

The reduction in stock and property prices in Japan has
generated questions about the capital positions of Japanese banks and their ability to meet international standards

adequacy.

order to address these concems, it
general observations about capital
adequacy and profitability in Japan's banking system.

for capital
is

useful to

In

make some

The sharp rise of stock prices over the 4-year period
through 1989 contributed to a lower cost of capital for
Japanese banks by enabling them to raise equity at very
low cost and also by increasing the value of the stock
holdings that constitute part of their reserves. Correspondingly, the Nikkei's subsequent decline both has Increased
the cost of raising new capital and has eroded capital
adequacy. In addition, Japanese banks are suffering from
reduced profits as the quality of their loan portfolios Is
impaired by the weaker economy, rising bankruptcies, and
declines in real estate values.
But Japan's banks have been adjusting to the adverse
developments, as evidenced in part by less aggressive
lending pattems in various mari<ets. According to the Ministry of Finance, the average ratio of risk-weighted assets
to capital for the major Japanese banks was just above 8
percent at the end of March 1992.

How

these banks reinforce their capital positions-in
asset growth-ahead
of the full phase-in of the BIS intemational capital standards
next year will have consequences for the rest of the worid,
but we expect these effects to be relatively small.

terms

of raising capital or restraining

Effects of Japanese Financial Market Developments on
Japanese Bank Lending in the United States

Concems also have surfaced as to the likelihood that the
U.S. agencies, branches, and subsidiaries of Japanese
banks will curtail lending in the United States, and about the
impact this development might have on commercial real
estate mari<ets, U.S. banks, and the Califomia economy,
where their mari<et share is especially high. To address
these concems, it is useful to review the pattem of lending
by Japanese banks in the United States in recent years.
In a nutshell, after growing at an average annual rate of
24 percent from 1985 through 1989, assets of Japanese
banks in this country have been about flat.

The dramatic growth in the last half of the 1980s was
spurred by several factors. First, Japan was running a
substantial current account surplus, with a corresponding
net outflow of capital, a major share of which found its way
into the United States~a portion of that through banks.
Second, the yen was relatively strong versus the dollar,
making direct investment in the United States attractive to
many Japanese investors. This took many forms, including
investments in real estate, in manufacturing facilities, and
in financial and banking operations, the latter notably In
Califomia. Third, the cost of capital to

Japanese banks was

.

TREASURY ISSUES

very low, enabling them to finance rapid growth
assets both at home and abroad.

in their

During this period, the share of Japanese bank assets in
the U.S. market grew significantly, particularly in California.
At the end of 1 990, the Japanese share of commercial bank
assets reached over 11 percent nationally and over 26
percent in the State of California. The Japanese share of
business loans was even higher, and it continued to grow
in 1 991 as U.S. banks pulled back from this type of lending.
This year, Japanese banks are expected to reduce their
woridwide growth in order to reach and maintain their capital
at the levels required by the BIS standards. They may be
expected to give greater precedence to their customers in
Japan, resulting in some further retrenchment of lending
overseas, including in the United States. Therefore, it is
unlikely that Japanese bank lending in the United States
and California will be particulariy strong in the near term.
Nevertheless, this trend does not necessarily portend

more constrained borrowing conditions in California. U.S.based banks have improved their balance sheets over the
last year and are better positioned to take advantage of
lending opportunities that may arise from a retrenchment by
the Japanese banks. U.S. banks have built up a considerable stock of liquid securities that can be replaced with loans
as private credit demands pick up in a strengthening economy. Banks based in other foreign countries have lending
capacity as well.

For example, although Japanese bank assets in the
United States declined by $7 billion in 1991 foreign-based
banks as a group expanded their assets in the United States
by $79 billion. Therefore, the overall effect on the Califomia
economy of a diminished presence by Japanese banks
should not be disruptive.
,

We believe that the view that the Government or the U.S. economy as a
whole is "hostage" to particular investor groups or foreign countries is
mistaken.
particular countries being more than offset by increases in
the holdings of other countries is a typical one. The result
has been that the percentage of the public debt held by
foreigners has remained remarkably constant over the
years. Foreign demand for Treasury debt has grown at very
close to the same rate as Treasury debt itself has grown.
In December 1 982, the share of the total public debt held
by foreign and intemational accounts was 1 2.5 percent, and
in February 1 992 it was 1 2.2 percent. This constancy is also
evident when the public debt held by U.S. Government
accounts and Federal Reserve banks is excluded from the
calculation. By that accounting, at the end of 1982, the
percentage of this debt held by foreigners was 1 7.6 percent,
and in February 1992, 17.9 percent.

Tuming

to

Long-Tenn

Interest Rates,

While Japanese investments in U.S. corporate debt and
U.S. equities"$1 8 billion and $20 billion, respectively, at the
end of 1 991 -are large in absolute amounts, they represent
only a small fraction of the total mart<et. These figures

While accurate figures on total Japanese investment in
U.S. Treasury securities do not exist, the downward trend
since the middle of 1989 is clear. According to the best

Japanese holdings of U.S.
are estimated to have decreased $47

figures currently available,

Treasury securities
billion from mid-1989 to February 1992. This represented a
decline from about 5 percent to 2 percent of outstanding
privately-held Treasury securities (based on the 1984 Foreign Portfolio Investment Survey benchmari<).
significant

as that decrease may seem,

Japanese ownership of slightly over 1 percent
and approximately .5 percent of the
value of U.S. equities at the end of 1 991

translate into

of U.S. corporate debt

From a broader perspective, the amount the U.S. econis dependent on capital inflows can be

omy as a whole

and

As

of private sector U.S.
these holdings would not appear to

be a great concem.

total mari<et

Effects on U.S. Economy,
U.S. Budget Financing

Japanese holdings

securities, the size of

I

would point

out that total foreign investment in U.S. Treasury securities
increased by approximately $100 billion over the same
period. In other words, the drop in Japanese holdings has
been more than offset by increases in the holdings by other
countries. This pattem of decreases in the holdings of

determined by looking at the U.S. balance of payments.
Since the United States has been running a current account
deficit, this means that there has been a net capital inflow
into this country.

However, the current account deficit has been declining,
which means, in effect, that the U.S. economy as a whole
is depending less on foreign capital inflows. At the same
time, interest rates here have declined.
Despite the size of the U.S. Government's budget deficit
and the sometimes very large U.S. current account deficit,
we ttelieve that the view that the Government or the U.S.
economy as a whole is "hostage" to particular investor

groups or foreign countries

is

mistaken.

too widely distributed and international capital mart<ets are too well developed for that to
be the case. Consequently, we do not believe that Japanese

The Treasury's debt

is

TREASURY ISSUES

disinvestment in Treasury securities or other capital flows
resulting from current Japanese financial market difficulties
will have any perceptible effect on long-term interest rates
in this

the risk of contagion is quite small,
as our stock market has remained ro-

country.

.

U.S. Bilateral Trade Deficit with Japan: U.S. Manufacturing Base

would like to turn to the question of the U.S.
trade deficit with Japan, the likelihood that it will
worsen, and the effects of this on the U.S. manufacturing
base. First, should say that the Treasury Department does
not attempt to make forecasts of bilateral balances. That
said, we do expect much larger Japanese trade and current
account surpluses this year than last, and there are some
reasons to think that our bilateral deficit with Japan will also
increase this year.
Next

.

.

moving in the opposite direction
of the Nikkei in recent years.

bust,

I

bilateral

I

By way

of background, Japan's current account surplus

actually declined sharply from a

peak

of

$87

billion in

1987

1990. However, last year, the surplus more
than doubled to $73 billion. For 1992, the International
Monetary Fund forecasts Japan's current account surplus
to

at

$36

and medical machinery grew 129
and engine exports increased by
60 percent, and exports of computers, peripherals, and
semi-conductors increased by 1 24 percent.

and exports

The United States also does well on service transactions.
finance-related service transactions, such as
and license fees, financial services and insurance,
the United States has a surplus with Japan.
In fact,

billion.

The reasons behind the recent rise in Japan's extemal
surplus are dear: Both the Japanese yen and Japan's
domestic demand growth have weakened. These developments tend to make imports into Japan more expensive,
tend to make Japan's demand for imports fall, and tend to
divert more of Japanese production toward export martlets.
Nevertheless, the U.S.-Japan bilateral trade deficit has
widened only slightly, from $42 billion in 1990 to $44 billion
last year. In the first 2 months of this year, the deficit ran a
bit above last year's pace.

Most

of the increase in

Japan's current account surplus

was

registered with countries other than the United States,
particulariy some Asian nations and the countries of the
European Community. However, if signs of economic recov-

ery in the United States are borne out and the slowdown in
Japan's economy is not soon arrested, the bilateral imbalance between us could worsen further.

With respect to the effect of trade with Japan on the U.S.
manufacturing base, the numbers do not support the view
that the United States is able to export only agricultural
products and unsophisticated manufactures to Japan. For
example, over the last 4 years, the value of U.S. exports to
Japan has grown by 70 percent, whereas imports from
Japan have grown much less rapidly, by only 8 percent.

Looking behind these numbers, one notes that U.S.
export growth has been strong in sophisticated and hightechnology goods. For example, U.S. exports to Japan of
industrial and service machinery grew 93 percent, telecommunications equipment exports increased by 148 percent,

in

royalties

To sum

billion in

about $93

of scientific

percent. Civilian aircraft

up, Japan's trade

and current account surpluses

a decline in the
which in tum has been a function of a
weaker yen and slower growth in Japan. So far, the U.S.
bilateral trade deficit with Japan has not borne the brunt of
this decline, but there is a possibility that our deficit will grow

have

risen dramatically, primarily reflecting

level of imports,

this year.

Cross-Ownership of Japanese Stock (Keiretsu)
like to respond to your question about the
the Japanese practice of corporate crossownership of stock, an aspect of the keiretsu system, will
unravel as a result of the decline in the Japanese stock
mari<et. First, some basic facts about cross-ownership of
stock in Japan. About 70 percent of Japanese stocks are
held in the form of long-term stable shareholdings. One-third
of this amount is held in "cross-shareholdings" between
business corporations, and the other two-thirds is held by
institutional investors, such as banks, pension funds, and

Finally,

I

would

possibility that

insurance companies.
During the bull mari<et of the 1 980s, these share holdings
could be justified on the basis of large capital gains. However, since the average dividend yield on Japanese equities
has been meager, in the absence of capital gains, corporations and financial institutions may well re-evaluate their
holdings. In addition, some corporations could be forced to
divest stocks held in a cross-shareholding arrangement in
order to meet their investment financing needs in the face
of

reduced credit

availability.

These mari<et pressures will probably reduce the proporshareholdings and erode the cross-shareholding system to some extent, but certainly does not spell
the end of the keiretsu system.
tion of stable

it

TREASURY ISSUES

CtToss-share holding

is

only one, albeit the most visible,

aspect of the keiretsu system. While the decline in share
prices may cause companies, especially investment institutions, to re-evaluate their share holdings and divest those
that are nonperforming, in many instances the financial
aspects of cross-shareholdings are secondary to their role
in cementing the long-temi relationships among corporate
business partners that are central to the keiretsu system.
Therefore, there will continue to be strong institutional and
business pressures to hold onto shares of "group" members
and of companies that are major suppliers or customers.

Conclusion

The capitalization of Japan's stock market has declined
by about one half, and a drop of that magnitude cannot occur
without notable repercussions on Japan's wealth, the health
of

its

financial sector,

and

its

economy

generally.

But one mitigating factor has been the extended period
over which that decline has taken place, thereby allowing
businesses to adjust to their changed circumstances and
reducing the

risk of

damage

to the

economy.

From the United States' perspective, the drop in the
Japanese stock market is likely to have limited effects. As
noted, the risk of contagion is quite small, as our stock
mari<et has remained robust, moving in the opposite direction of the Nikkei in recent years.

do not wish to minimize the import of the sharp decline
Japanese stock prices over the past 28 months.
I

in

While worid economies are increasingly interdependent,
not expect the decline in stock prices in Japan will
translate into substantial consequences for our economy.

we do

TREASURY ISSUES

THE DEBT DEBATE
In recent months, the issue ofFederal debt management has become a topic ofgreat interest. Thefollowing,

featuring an interview with Treasury Assistant Secretary for Domestic Finance Jerome H. Powell, continues
to

expand on debt issues brought

of the Treasury Bulletin. Excerpted with
it first appeared in that publication in April 1992.

to the forefront in recent issues

permission o/Government Executive magazine,
Paul Starobin

is

Many people

a correspondent for National Journal.
think the Federal

Government

heavily on long-term securities to finance
ury's debt

Its

relies

too

debt. But Treas-

managers oppose a change.

week, these auctions attract flocks of investors from Wall
Street to Tokyo. (Foreigners hold about 18 percent of the
public debt; the Japanese alone account for about 3 percent.)
All of the buyers are eager to lend Uncle Sam money, all of

them are sure

this is

"Borrowing

one loan

money

is

one

that won't

go

sour.

of the things the

Government

says Jerome H. Powell, Treasury's Assistant Secretary for Domestic Finance. "Debt management is
basically a success story."

does

...a

number of analysts

believe that

really well,'

Sure, the Govemment has been able to finance
But has it done so at the lowest possible cost to
the taxpayer? With interest-rate payments on Treasury securities exceeding $200 billion annuaiiy-an expenditure that
now outstrips every component of the budget, except for

Or

flaws in the Government's debt-

is it?

its deficits.

management strategy are adding
hundreds of millions of dollars
annually to the cost of servicing the
public debt.
The Federal Government may justifiably be criticized for
many shortcomings, but there is at least one task that

Defense and Social Security-this is not an idle question. An
increase of a mere one-hundredth of one percentage point
(one basis point) in the interest rate paid on Treasury paper
costs taxpayers an extra $250 million or so a year in debtservice costs.

it

appears

to perform exceedingly well-with almost frightening

proficiency, in fact. That's the job of raising

money to finance

the public debt.

The era

of hundred-billion-dollar-plus deficits, which bethe 1980s and which the House Budget Ck)mmittee
recently predicted could last into the next century, has posed
something of a challenge to the Treasury Department team
responsible for meeting the Government's cash needs. After
all, every dollar of spending the Government can't cover with
a dollar of revenue has to be borrowed from private investors
and paid back, of course, with interest.

gan

in

But no amount of fiscal excess has proven too big for
Treasury's debt managers to handle. In 1980, investors held
a mere $709.3 billion in Federal debt; 1 992 debt holdings will
likely breach the $3 trillion mark. Last year, Treasury issued
$1 .7 trillion in marketable securities~$1 .4 trillion of the proceeds went toward retiring maturing debt and the rest toward
financing the budget deficit. Meanwhile, the Office of Management and Budget (OMB) projects that the deficit for the
current fiscal year will be a record $399.1 billion.

Not to worry: The hole Is being filled by the mountain of
cash raised in the auctions of Treasury securities held by the
debt-management squad 160 times annually. Week after

Powell's assessment notwithstanding, a number of anathe Government's debt-management strategy are adding hundreds of millions of dollars
annually to the cost of servicing the public debt and thereby
depriving the budget of scarce funds. The criticism boils down
to this: Treasury's debt managers, either because they tend
to be captives of the big Govemment bond dealers on Wall
Street or simply because they are afflicted with bureaucratic
inertia, have their heads in the sand.
lysts believe that flaws in

Enormous deficits beg for an aggressive, entrepreneurial
to managing the public debt, critics say, but Treasury's posture tends to be cautious and unimaginative.

approach

Passing the Long Bond

A

prime example of Treasury short-sightedness that
the department's reluctance to shift away from
sales of 30-year Treasury bonds~the so called long bond-toward sales of shorter-term Treasury securities.
critics cite is

Advocates of such a shift, including Nobel laureate
economist James Tobin of Yale University and Stephen H.
Axiirod, formeriy a top staffer at the Federal Reserve Board,
note that the prevailing mari<et interest rate on the long bond
is much higher than the rate on short-term securities, such as

TREASURY ISSUES

10

the 3-month and 6-month bills and the 2-year and 5-year
notes. In fact, the spread between short-term and long-bond
rates has never been higher. The Congressional Budget
Office said in a recent report on the economic and budget
outlook that shifting the $50 billion or so that Treasury now
sells each year in long bonds into short-temfi maturities would

save about $1

billion in interest

payments annually.

For many economists, the logic

is

simple and compelling.

"Interest-rate restmcturing is taking place at the

consumer

through a refinancing of mortgages at lower rates, and
at the corporate level, through the plethora of new corporate
bond Issues at lower rates," says Kathleen M. Camilli, an
economist for Maria Ramirez Capital Consultants Inc. on Wall
Street. "The only place it is not taking place is at the Federal
Government level. think we could find some more creative
ways of saving the taxpayer money."
level,

"The debt is so big that if you start
surprising the market with a lot of
innovation, you pay a price, " said
Frank X. Cavanaugh, a former
Treasury aide.

Inside the Treasury
Although

I

What's more, many who advocate shifting away from
long bonds also predict a side benefit to the economy: a
further reduction in mortgage and corporate-bond rates. If the
Treasury makes long bonds scarce, this argument goes, they

become more valuable, and

investors who still want them
have to bid a higher price and settle for a lower rate of
return. Because mortgage and corporate rates tend to move
in the credit markets in tandem with long-bond rates, their
interest rates too would decrease.

will

will

to curtail long

it

On Febmary 5, Powell declared at a press conference
attended by a packed house of financial joumalists that, aside
from making a modest, one-time-only reduction in its quarterly
long-bond issues, Treasury would not depart from its traditional debt-management strategy, after all. "Over time, the
cost of financing the debt is minimized by a stable, predictable
pattem of Treasury financing," he said. In an interview in his
office a few days later, he insisted that neither concems about
upsetting the bond dealers nor a commitment to bureaucratic
routine played any role in the decision.
Francis X. Cavanaugh, an ex-Treasury aide who until
1986 was the top career official advising political appointees
on debt-management policy, also defends Treasury's traditional debt-management approach. "The debt is so big, so
enomnous, that if you start surprising the market with a lot of
innovation, then you pay a price for it," says Cavanaugh, now
head of the Federal Retirement Thrift Investment Board. 'This
is business-it's not airy macro economics."

one

offers

decision, the debate over

a window

whether

into the little-understood

how the Govemment makes and
management policy.

world of

carries out debt-

The first thing to grasp is that debt management, notwithstanding its implications for the economy and the Federal
budget, is virtually the sole province of the Treasury Department. Although advice is often sought from the Federal
Reserve Board and occasionally from other quarters of Govemment, Treasury feels free to ignore it.
During the

Last December, Treasury Secretary Nicholas F. Brady
revealed that the Govemment was reviewing its borrowing
strategy with an eye toward reducing reliance on the long
bond. But his comment sparked opposition within the financial
community, particularly among Wall Street Govemment bond
dealers who buy and actively trade Treasury securities. For
dealers and investors, the long bond is by farthe most popular
and most profitable of all U.S. Govemment securities-in fact,
it is the most actively traded security in the world.

is just

bonds

Reagan

Administration, for instance. Council

Economic Advisers member William A. Niskanen says he
tried without success to sell Treasury on issuing a so-called
index bond that Niskanen thought could signal the Government's commitment to lowering inflation. "The Treasury debtmanagement people are a worid unto themselves and are
basically unresponsive to outside advice," Niskanen says.
of

Today, even Richard Darman, the powerful and often-im0MB, is quick to defer to Treasury's supremacy on debt-management decisions. At a late January
hearing, Darman told House Budget Committee lawmakers
perious chief of

that

he personally favored

"a sensible shift out of long into

short maturities," but added,
a Treasury decision."

"We

don't control that.... That's

And though the top dog at Treasury, the Secretary, is
nominally responsible for debt policy, the key players are
deeper within the bureaucracy. The two most important slots
are the one occupied by Powell, Assistant Secretary for
Domestic Finance, and a perch immediately below his, the
Deputy Assistant Secretary for Federal Finance.
These

officials

meet

regulariy with the

Treasury Borrow-

ing Advisory Committee, a group of senior officials at impor-

bond dealerships and investment houses who make
recommendations on debt-management strategy and tactics.
The atmosphere has tended to be clubby. In fact, the Deputy
tant

Assistant Secretary for Federal Finance, Treasury's front-line

contact with Wall Street, traditionally has been a political
appointee drawn from the bond-dealer community.

TREASURY ISSUES

But a change occurred recently following Salomon Brothers Inc.'s admission last summer that it had repeatedly
cheated in Treasury's bond auctions. Faced with widespread
perceptions on Capitol Hill and elsewhere of incestuous links
between the dealers and Treasury, Powell filled the Federalfinance slot with a career economist at the Fed, Deborah J.
Danker. The 38-year-old Danker has a high-powered academic background that includes a doctorate in intemational
economics from Yale University, but she has never traded a
bond on Wall Street or anywhere else. (Nor, for that matter, has Powell; he previously

worked as an investment
banker at Secretary Brady's old
firm, Dillon, Read & Co. Inc.)

Danker says her toughest

11

response to a single question posed by a lawmaker in the
middle of a House Ways and Means hearing on middle-class
tax proposals, and all Brady said was that a change in strategy
was "something we're taking a look at." Nevertheless, the
comment was pounced on by financial wire service journalists
covering the hearing; split-second transmission to Wall Street
sent the prices of short-term securities down (on the guess
that Treasury would make more of them available) and long
bonds up (on the guess that they would become scarce). But
before the day was out, other
Treasury officials played down
Brady's remarks, and long-

THE SPIRALING PUBLIC DEBT
As Federal debt

bond prices

retreated.

held by the public skyrocketed from $395

billion in 1 975 to $2.4 trillion in 1990, interest on that debt grew
from 7.5 percent of Federal outlays to 16.1 percent. From
1991 -95, the debt is expected to grow by 1 ,4 trillion.

It

that

is just this

sort of

episode

makes debt-management

Street to introduce herself to

professionals nervous. At a
February press conference,
Powell said big shifts in the mix
of securities offered by Treasury would ultimately cost the
Government in interest payments because, lacking a pre-

the Important players
bond market.

the mart<et would charge an

challenge

her

new

job probably will be establishing herself
as an effective liaison with the
dealer community. She's been
in

The graph shows growth of the debt in trillions of constant
1987 dollars. By this inflation-adjusted measurement, the debt
is expected to grow lay 350 percent between 1975 and 1995.

making the rounds on Wall
in

the

dictable pattern of financing,
"uncertainty

A

non-player at Treasury
comes to the making of
debt-management policy is the
Bureau of the Public Debt.

when

premium"

for hold-

ing bonds.

it

The mari<et's big players
certainly aren't asking for
changes in the status quo. The

The Bureau handles administrative tasks, including
conducting auctions of Treasury securities and accounting
for debt holdings in the mar1<et.
Bureau commissioner

Brady trial balloon, if that's what
was, triggered a 16-page report by Goldman Sachs & Co.
entitled "The Misguided Moveit

ment
Bond

Flichard

Gregg, who joined Treasury
970, gets a bit testy when a
reporter tries to draw him out on
the policy question of whether
Treasury should shift to shortterm maturities.

to

Abandon Treasury

Sales."

L.

in

Many

1

of the report's argu-

ments made sense, such as the
observation that a few years of

1975

'80

'85

'90

'95

taxpayer savings achieved by
curbing long-bond purchases
Source: Budget of the United States Government, Fiscal 1993
could ultimately be negated if
"No matter what thought
the debt had to be refinanced at
or said, the decision is with the
higher interest rates later. GoldUndersecretary [for Finance] or Assistant Secretary for Doman also noted that the long bond was not, by any means,
mestic Finance," Gregg says. "That's not my job."
the dominant security in Treasury's arsenal: It currently comprises only about 1 1 percent of outstanding public debt, and
Market Jitters
more than half of Treasury's mari<etable debt comes due
within 2 years. Goldman Sachs did not mention that the
Gregg's reluctance to talk about policy is understandable.
company is one of Wall Street's biggest dealers in the high
Just as financial mari<ets can be rolled by seemingly benign
profit sales of long bonds.
remari<s by the chairman of the Fed, comments made by
I

Treasury or other officials on debt-management matters can
send shivers through Wall Street.

ing

Consider Brady's revelation that Treasury was considera shift away from borrowing long bonds. It came In

Also weighing

in

against curtailment of long bonds

was

powerful Chicago Board of Trade, the worid's
largest commodity futures exchange. Just as traders buy
pork-belly futures to protect against swings In pori< prices,

the

politically

"

.

TREASURY ISSUES

12

holders of Treasury securities buy Treasury futures to hedge
against movements in bond prices. In fact, futures and options
contracts based on the long txsnd accounted for a whopping
three-fourths of the exchange's trading volume in 1 991

The price of a seat on the exchange plummeted in the
wake of Brady's remart<s, and Board of Trade President
Thomas R. Donovan dashed off a letter to Brady protesting
that a curb on long bonds "would cripple" the exchange. He
the board's long-time protector on
Democrat Dan RostenkowskI of Chicago, the

wrote a similar
Capitol

Hill,

letter to

powerful chaimian of

House Ways and Means.

Serving Constituents
Analysts disagree on the extent to which Treasury debt
managers should cater to the demands of the mari<et. Treasury orthodoxy holds that, just as Detroit should make the kinds
consumers want to buy, debt managers should
sell the kinds of securities that the mari<et wants to purchase.
And nobody should object to dealers making money on
Treasury securities, this logic goes: If the business weren't
profitable, then the Govemment would run Into trouble financof cars that

its

to say that

Treasury

was not trying to signal any basic
change in debt-management strategy.

He said shortage-averting injections of
securities

would be offered in only

and emphasized, "It is
not our intention to micro manage the
"rare cases"

Powell says Treasury has received inquiries about its
review of the long bond from Capitol Hill but refuses to name
specific sources; he also says congressional pressure did not
Influence Treasury's decision.

ing

Powell was quick

debt.

But many economists say this sort of conservative approach underestimates the market's ability to adapt to
change. Even as Chicago's Donovan was writing to warn
Brady of the dangers of cutting back on long bonds, Richard
L. Sandor, the board of trade's former chief economist, was
telling reporters that a move toward shorter maturities
wouldn't be a big deal. Hedgers and speculators would simply
shift their trading into futures based on two-year notes and
other short-term Treasury securities, Sandor said.

Treasury market-at all.
registered with the Securities and Exchange Commission are
allowed to submit bids for customers. What's more, the
Treasury is Installing a system that will allow firms to submit
bkls by computer.

"What you're doing Is breaking down that clubby little
between Treasury and the primary dealer community," says a veteran Wall Street analyst, and "giving the
Treasury more flexibility than they might have had in the past
because they had to depend on the 30 or so primary dealers."
relationship

Economist Camiiii suggests that Treasury hire a special
group of whIz-kId traders to handle debt management-the
sorts of people who would wori< in Govemment for maybe a
year or two after graduate school and then go on to make big
bucks on Wall Street. Agencies, such as the Intemational
Monetary Fund, the Fed, and the Federal Home Loan Mortgage Corp. (Freddie Mac) hire many such people, she notes.
For example, Freddie Mac has a cadre of savvy debt-mari<eting specialists who sell mortgage-backed securities to investors in New Yori<, Tokyo, and other global centers of finance.
Treasury's auction reforms also contained a policy that

Other analysts say that Treasury's recent overtiaul of
auction procedures-spun-ed by the Salomon scandal-provides fresh opportunities for debt managers to operate in a
more freewheeling fashion. Under the old rules, only a small

Govemment bond

deaiers-so-calied primary dealers~and commercial banks were allowed to submit bids on
behalf of customers.
circle of

Under the new
In auctions, ail

rules,

aimed

Govemment

at

broadening participation

securities brokers

and dealers

some on Wall Street took as a hartaingerof a newly aggressive
stance toward the bond mart<ets: providing additional quantities of

a

security to the mari<et

shortage develops. The idea

is

when an

to prevent

acute, protracted

any one

firm

from

cornering the mari<et on a new issue. But in the interview,
Powell was quick to say that Treasury was not trying to signal
any basic change in debt-management strategy. He said
shortage-averting injections of securities would be offered in
only "rare cases" and emphasized, "It is not our Intention to
micro manage the Treasury mari<et~at all."

TREASURY ISSUES

13

Recent Reports and Studies
Economic Developments and Reforms
The GDP for the former Soviet Union fell by as much as
12 percent in 1991, and the IMF estimated inflation of 140
percent for the same year, according to David C. Mutford,
Under Secretary of the Treasury for International Affairs. The
Under Secretary spoke to the House Committee on Banking,
Finance, and Urban Affairs, and the Subcommittee on International Development, Finance, Trade, and Monetary Policy on
February 5, 1992, regarding economic reform measures in the
former Soviet Union.
According to the Under Secretary, the budget deficit increased to more than 22 percent of GDP. However, a trade
surplus was the result of declines in both imports and exports.
In January of this year, the Russian government introduced a
28 percent value added tax, a 32 percent profits tax, and a 37
percent wage tax. Overall consumer prices have roughly dou-

in the

Former Soviet Union
IMF and other

publics are also working with the
institutions.

Secretary

State

international

James Brady announced

U.S.
support for early consideration of IMF and World Bank membership for new states establishing diplomatic relations with the
United States.
of

The exchange rate for commercial transactions is 110
rubles to the dollar. Russian authorities expect the value of the
ruble to strengthen as confidence in the reform program increases. However, a proposal by the Central Bank for a

foreign investment" rate

of 8-1

rubles to the dollar could have

a substantial negative impact on foreign investment.

The Western response to the reforms taking place includes debt deferral by leading creditor countries,
humanitarian and food aid, technical assistance, and nuclear
risk reduction.

bled since January.

The Russian Federation

working in cooperation with the
IMF to pursue economic reform. Plans include changes in fiscal
and monetary policies, the foreign exchange system, price
liberalization, and privatization. Russia has cut both domestic
and military spending substantially. Several other former re-

Contrasting the current situation with the rebuilding of
II, the Under Secretary said "the

is

Europe following World War
process

systems
in

in

the

for

new states

requires creation of institutions

and

a market-based economy, which has not existed

these countries during

much

of

the present century."

Changing Economic and Financial Relationships Between the United States and Pacific Region
The nature of relationships Between the United States and
Taiwan and Korea has changed as Asian economies have
grown and prospered, according to Treasury's Deputy Assistant Secretary for Developing Nations, who spoke to the
Bankers' Association for Foreign Trade on January 23.

The first
is

to

objective

in

improve treatment

consultations with Korea and Taiwan

of

U.S. financial firms, ensuring

them

equality of competitive opportunity with domestic counterparts.

The United States
financial

is also seeking broader liberalization of
markets to include interest deregulation, elimination

of capital controls,

and changes to exchange

rate policies.

both Korea and Taiwan, policies exist that discriminate
strictly limits foreign banks'
access to domestic funding resources and restricts foreign
In

against foreign institutions. Taiwan

exchange activities. Korea offers a "closed, protected, unfair,
and discriminatory environment for foreign institutions," and
strictly controls and directs foreign exchange activities. Banks
must adhere to a long list of prohibited activities. A regulatory
system is used in Korea with minimal written implementation.

The Deputy

Assistant Secretary concluded that the newly
economies must "take up the challenge of liberalization and opening markets"
more equitable financial
markets are to be established.
industrializing

if

Deputy Secretary Robson Addresses the Mortgage Bankers Association
Deputy Secretary
scribed the

of the

economy as

Treasury John

E.

Robson dedue to

"unsatisfactorily sluggish"

forces in the business cycle" while addressing the Mortgage
Bankers' Association. The Deputy Secretary spoke February
1992, to discuss the Administration's proposals for bank
reforms aimed in part at strengthening the real estate industry.
He referred to the President's economic growth plan that
includes passive loss relief, using pension funds for real estate
investment, extending tax credits to stimulate construction and
refurbish low income rental housing, and cutting the capital
gains tax.

The

plan also incorporates a $5,000 credit

and penalty

free withdrawal from Individual Retirement Accounts (IRAs) for
first

The plan is intended
increased real estate values and a stronger market.

time buyers, and other tax incentives.

to result

in

3,

Concerning the present

Deputy Sechas been available to fuel the
estate industry, and called on banks to "come out of

retary said that too
real

hibernation

so.

to

and

little

"credit crunch," the

credit

start lending."

"Banking," he said, "is not risk free and not intended to be
And bankers should be stepping forward nowto make loans

sound borrowers." Credit crunch guidelines were created by

TREASURY ISSUES

14

the four bank regulatory agencies to ensure "balance and good
judgment" in bank and thrift examinations. They instruct examiners to view real estate values in the long term.

'We cannot have examiners hanging a

scarlet letter on

Deputy Secretary Robson said. The Administrasupports changes in regulatory law, including flexibility for
the Office of Thrift Supervision (OTS) in granting extensions to
thrifts that must set aside capital against real estate investreal estate,"

tion

The Administration's Views on
Under

capital loss protection provisions, the Federal

Sav-

down on designated

were generally reimbursed for the difference between the book value of
an asset and the selling price or the write down value.
assets. Institutions

maintenance, institutions were
guaranteed a minimum yield or return on covered assets.
Assistance agreements made in 1 988 and 1 989 obligated the
FSLIC to make ongoing assistance payments to 91 remaining
institutions resolved in 1988 and 1989 transactions. Those

Under guaranteed

yield

institutions take the position that the
is

Government assistance

deductible for income tax purposes.

February 11,1 992,
for Regulatory

Counsel

Hyde, Deputy Tax Legislative
presented to the House Com-

Terrill A.

Affairs,

in

the amount of capital that must

Deputy Secretary Robson blamed the weak banking system on antiquated laws that prevent financial health and reduce
international competitiveness. In his argument for fundamental
bank reform, he said that rather than adopting the Administration's bank reforms Congress has passed flawed legislation
that imposes more regulation, higher costs, and offers no
opportunity for the banks to strengthen themselves financially."

Thrift Institutions' Deductions

ings and Loan Insurance Corporation (FSLIC) agreed to
protect resolved institutions against losses realized on the sale
of or write

ments, as well as a reduction

be set aside.

of Reimbursed Losses

Ways and Means the

mittee on

extent to which

thrift institutions

Administration's views on the
should be permitted to deduct

losses reimbursed with tax free Government assistance.
Treasury's Report on Tax Issues Relating to the 1988/89

Federal Savings and Loan Insurance Corporation Assisted
Transactions concludes that reimbursed losses should not be
deductible and that the issue

law precluding deduction

The

report

recommends

to avoid the delay
Internal

is governed by principles of tax
compensation by insurance.

of

and cost

Revenue Service

(I

legislation to clarify deductibility
of litigation

RS).

The

on

this issue

by the

report determines that the

potential cost to the taxpayer of continuing the incentives to

hold covered assets and to minimize the value of assets when
sold would outweigh the cost of "creating the perception that

the Government

is

not adhering to

its

bargain."

Report to Congress on the Request for Additional Funding for the Resolution Trust Corporation
The Resolution Trust Corporation (RTC) Oversight Board
requested additional funds to cover losses as well as working
capital to finance RTC's acquisition of failed thrifts. September
12, 1991, Deputy Secretary of the Treasury John E. Robson
spoke to the House Subcommittee on Financial Institutions
Supervision, Regulation and Insurance, in support of additional
funding for RTC, RTC asset disposition, and RTC restructuring. (The bill has since been passed to the full committee.)
The Board estimated that another $80 billion in loss funds
would be needed, doubling the amount already authorized. It
also requested that RTC's borrowing limit be raised from $125
billion to $160 billion. Also, RTC is requesting an extension of
Office of Thrift Supervision transfer authority until September
30, 1993, citing a larger than expected case load. Deputy

Secretary Robson said RTC is "making progress" in meeting
clean-up goals, and that mandated improvements in RTC

management

include a uniform Conservatorship Operations
Manual, a soon-to-be-operational computerized securities
portfolio management system, an assets tracking system, and

standardized contracting policies and procedures.

As

of

June 30, 1991

value of securities

,

RTC had

sold 51 percent of seized

73 percent of RTC's book
has been sold with only a 3 percent loss.

assets, netting $168.2

billion.

Also,

Through August of 1991, RTC has sold $2.5 billion of its
mortgage-backed securities and is considering securing commercial loans.

The RTC has introduced a

portfolio sales

program to

increase asset sales due to growing inventories of hard-to-sell
is promoting the sale of single- and multi-family
homes. As of June 30, 1991, 22 percent of its single-family
homes; 10 percent of the multi-family homes had been sold.

assets and

Report to Congress on Tax Simplification, Employee Benefits; Proposals Concerning Tax Deposits,
Earned Income Tax Credit, and Pension Coverage and Portability
The Tax
by the Office

a

Simplification Act of 1991 (S. 1394)
of

Tax Analysis to be

is

estimated

"nearly revenue neutral, with

loss of $89 million in fiscal 1992 and $47 million over the
5-year budget period," according to Kenneth W. Gideon, Assistant Secretary of the Treasury for Tax Policy, who
addressed the Senate Subcommittee on Taxation and the

Committee on Finance on tax simplification proposals pending
(S. 1394 and S. 1364) and related proposals September 10,
1991. The Employee Benefits Simplification and Expansion
Act of 1991 (8. 1364), according to the Administration, would
lose approximately $16 billion in its current form.

.

TREASURY ISSUES
Although the Administration believes that simplification of
be achieved within the parameters of
the budget agreement," it opposes legislation that loses revebenefit provisions "can

nue. Proposed simplification of the employment tax deposit
system (H.R. 2775) would require semi-weekly deposits in-

stead of the eight monthly deposits required by the current
system. Also proposed are repeals of "interaction rules" preventing taxpayers from receiving full benefit of health insurance

credit,

15

the young child credit, and other provisions, and the

expand pension coverage and
enhance pension portability. The proposals also include simplifying and encouraging tax free roll-overs, establishing a
simplified employee pension program, simplifying the administration of 401 (k) and other plans, extending 401 (k) plans to
Government employees and employees of tax-exempt organizations, and adopting a uniform vesting standard.
simplification of tax laws to

The Administration's Views on a Proposal To Allow U.S. -Controlled Foreign Corporations To Elect
To Be Taxed as Domestic Corporations
The Administration opposes H.R. 2889, which would eliminate deferral on income from property imported into the United
States, including profits, commissions, and fees, according to

the

Tax Counsel, Department of
the Treasury. He presented to the House Committee on Ways
and Means the Administration's views on H.R. 2889 and on the
proposed taxing of U.S.-controlled foreign corporations on

in

Philip D. Morrison, International

October

The

3,

1

991

bill

also applies to

components incorporated

into other

products, which are subsequently imported. Further complicating enforcement

would be the importation

of

components used

U.S. manufacturing of products to be exported.

Another concern

is

that the

bill

would increase taxes for
companies that, due to

U.S.-controlled agricultural or mineral

geographical limitations, must operate abroad. The Adminiexpresses reservations concerning the impact of

stration also

Administration's opposition stems from the

difficulty

enforcement, the fact that the proposal differs significantly
from the traditional focus, and the lack of impact, due in part to
excess foreign tax credits.
in

Under the bill, the IRS would be required to trace indirect
as well as determine whether a U.S.-controlled corpoexpected at the time of the initial sale
ration should have '.
that the property would ultimately be imported into the United
States." Adding to the complexity of these tasks is the fact that
sales,

.

.

the

bill

for

companies who import from both high-tax and

low-tax countries.

The Administration also opposes U.S. shareholders being
allowed to treat U.S.-controlled foreign corporations as U.S.
corporations. It is the Administration's view that, without saf eguards, a reduction
approximately $1.5

in

tax liabilities would result in
revenue losses over the 5-year

billion in

budget window.

Copies of the preceding statements are available througti the U.S. Department of the Treasury, 1 500 Pennsylvania Ave., NW., Office of Public Affairs,
Room 2315, Washington, D.C. 20220, phone (202) 566-2041.

Integration of the Corporate

The

current tax system taxes corporate profits distributed
twice-once at the corporate level and

and Individual Tax Systems
not contain any legislative recommendaintended to stimulate discussion of the
prototypes and encourage serious consideration of proposals
for integrating the individual and corporate tax systems in the

The Report does

to shareholders at least

tions, but rather

at the shareholder level. On January 6, 1992, Treasury
released the Report of the Department of the Treasury on
Integration of the Individual and Corporate Tax Systems: Tax-

United States. The report

once

ing Business Income Once, which documents distortions
created by the double tax and describes several integration

Printing Office,
of

is

is

available from the

Government

GPO Stock Number 048-000-00430-0, at a cost

$14.00.

prototypes for taxing corporate income once.

Tax Treatment of Deferred Compensation Under Section 457
Section 457 of the Internal Revenue Code limits the
of deferred compensation provided to employees of

amount

tax-exempt organizations and State or local governments,
according to the Report to the Congress on the Tax Treatment
of Deferred Compensation Under Section 457, released on
January 7, 1992.

The

report

summarizes the

legislative history

and the

underlying policies of section 457, regarding tax-exempt organizations and concludes that statutory limits are appropriate

because, unlike taxable employers, employers that are exempt
from income taxation have no tax incentive to limit deferred
compensation. Moreover, section 457 serves as an incentive
for tax-exempt employers to provide greater benefits through
tax-qualified plans.

The report recommends section 401 (k) cash or deferred
arrangements be extended to nongovernmental, tax-exempt
employers, as current law does not allow certain tax-exempt
employers to offer salary reduction plans to their employees.

TREASURY ISSUES

16

Allocation of Excess Pension Plan Assets in the Case of Bridge
In response to the requirements of Section 6067(b) of the
Technical and Miscellaneous Revenue Act of 1988, Treasury
released its "Study on the Allocation of Excess Pension Plan
Assets in the Case of Bridge Banks' January 7, 1992. The
study examines conflicting goals of pension policy and bank
insurance policy in an over-funded defined benefit pension plan
sponsored by a bank holding company for the joint benefit of

Banks

the employees of the bank holding company and a failing
subsidiary bank. According to the study, the current provision

Revenue Code should be amended to require
of the full amount of excess pension
assets whenever a bridge bank receives assets and liabilities
of an insured bank closed by regulations.
in

the Internal

an equitable allocation

Report to the Congress on the Tax Treatment of Bad Debts by Financial Institutions
Recently proposed regulations generally allow banks and
to conform their tax and regulatory accounting for the
charge-off of bad debts, according to Treasury's 'Report to the
Congress on the Tax Treatment of Bad Debts by Financial
Institutions," released on September 16, 1991.
thrifts

The

report studies the criteria to

be used

in

determining

worthless for Federal tax purposes and
specifically considers circumstances under which a conclusive

whether a debt

is

or rebuttable presumption of worthlessness

Coplas of these reports may

l>e

is

The

report concludes that conformity of tax

and regulatory

treatment should not apply to accrued but unpaid interest on
loans that are placed in nonaccrual status for regulatory purposes.

The

report further states that extension of the conformity

would be a significant departure
from settled policy and practice that should be left to Congress
rules to unregulated lenders

to consider.

appropriate.

purchased from the National Technical Information Service, S28S Port Royal Road, Springfield,

VA 221 61 phone (703)
;

487-4660.

Revenue Impact of Proposed Capital Gains Tax Reductions
In recent years, a considerable amount of debate has
centered on the likely effect of a decrease in the capital gains
tax. While analysis of the issue has been split between two
approaches-estimating aggregate responsiveness of capital
gains realizations, as well as focusing on individual taxpayer
responsiveness-neither has provided conclusive evidence to
decide the issue.

Research Paper No. 9003, 'The effect of Marginal Tax
Rates on Capital Gains Revenue: Another Look at the Evidence," by Robert Gillingham and John S. Greenlees (Office
of Economic Policy, Department of the Treasury), focuses on
aspects of the debate. The authors define the responsiveness
of revenue to tax rates at the individual and aggregate levels.

A related study concludes that a capital gains tax reduction
would increase the number and amounts of such gains declared by taxpayers. And
would do so in sufficient amounts
to increase tax revenues. Research Paper No. 9004, 'An
Econometric Model of Capital Gains Realization Behavior,' by
Robert Gillingham, John S. Greenlees, and Kimberly D. Zieschang (Office of Prices, Bureau of Labor Statistics), explores
the revenue impact of proposed reductions in capital gains
taxation, as well as the expected response of taxpayers.
it

an analysis by the Congressional Budget Office they
present an econometric data analysis procedure.
Citing

The study
ing revisions

also includes time-series evidence incorporat-

the National Accounts and Flow of Funds data

in

to demonstrate the effect of the

Tax Reform Act

of

rate

on long-term gains has a negative

impact on both the proportion of taxpayers realizing capital
gains and on the value of those gains declared, according to
the study. The researchers further stated that there was no
evidence that income switching as a result of the reductions

986 on the

The aim

of

the paper

is

to give a better understanding of

among capital gains tax realizations, revenues,
And although analyses do not give conclusive

the relationship

and tax

rates.

evidence on the effect of proposed tax rate changes, the
authors conclude that the evidence does not suggest that a tax
reduction would decrease tax revenues.

offset expected tax revenue increases. The study includes taxpayer data covering three historical tax policy
regimes that varied widely in their treatment of capital gains.

would

The authors supported

their predictions

by

citing

a 1988

study finding, in the past, the majority of capital gains were
never realized for tax purposes. That 1988 study found only
3.1 percent of the stock of

between 1960-84. This

accrued gains realized each year

large flow of unrealized gains, accord-

ing to the authors, supports their conclusion that

The marginal tax

1

estimated relationship.

a reduction

the capital gains tax would yield a permanent increase

in
in

government revenues.
(For related studies on the capital gains tax issue, see
Research Paper Nos. 8801 and 9002.)

TREASURY ISSUES

17

Report on Social Security and the Public Debt
For the next 25 years, the social security program is
expected to have average surpluses of .6 percent of Gross
National Product (GNP), according to James E. Duggan's
Research Paper No. 9102. After that, the senior economist
says, deficits

will

reach

1

addition of health care).

CoplM of th«M

.7 percent of

These

rasearch papers

GNP (4 percent after the

deficits

could result

in

large,

may be obtained by wrRIng to Shirley

Room

unstable debt ratios and

may affect future U.S.

debt policy. The

study stresses the public debt implications of the long-run
financial status of the program and presents three alternatives,
or combinations thereof, for financing Social Security obligations.

James

Economic

E.

Duggan

Policy, U.S.

is

a senior economist. Office of
of the Treasury.

Department

Bryant, U.S. Department of the Treasury, 1 5th

4422, Washington, D.C. 20220;

phone (202) 866-6600

& Pennsylvania Avenue, NW.,

.

TREASURY ISSUES

18

RESEARCH PAPER SERIES
Available Through the Office of the Assistant Secretary for Economic Policy

8701 "The Empirical Reliability of Monetary Aggregates as Indicators: 1983-1987." Michael R. Darby, Angelo R. Mascaro,
and Michael L. Marlow.

8702. "The Impact of Government Deficits on Personal and National Saving Rates." Michael R. Darby, Robert Gllllngham,
and John S. Greenlees.

8703. "The Ins and Outs of Unemployment: The Ins Win." Michael R. Darby, John C. Haltiwanger, and Mark

8704. "Accounting for the Deficit:
Michael R. Darby.

An Analysis

of

Sources

of

8801 "The Direct Revenue Effects of Capital Gains Taxation:
R. Darby, Robert Gllllngham, and John S. Greenlees.
.

9001.

"Some Economic Aspects

of the U.S. Health

Change

in

W.

the Federal and Total Government Deficits."

A Reconsideration of the Time Series Evidence."

Care System." James

Plant.

E.

Michael

Duggan.

8002. "Historical Trends In the U.S. Cost of Capital." Robert Gllllngham and John S. Greenlees.

9003. "The Effect of Marginal Tax Rates on Capital Gains Revenue: Another Look at the Evidence." Robert Giiiingham
and John S. Greenlees.

9004. "An Econometric Model of Capital Gains Realization Behavior." Robert Gllllngham, John S. Greenlees, and

Kimberiy D. Zieschang.

9101. "The Impact of Government Deficits on Personal and National Saving Rates" (Revised). Michael R. Darby, Robert
Giiiingham, and John S. Greenlees.

9102. "Social Security and the Public Debt."

James

E.

Duggan.

Copies of thasa research papers may be obtained by writing to Shirley Bryant, U.S. Department of the Treasury, 15th & Pennsylvania Avenue, NW.,
Room 4422, Washington, D.C. 20220; phone (202) 566-6600

TREASURY ISSUES

19

Index

Previous Treasury Issues articles are

listed

below by subject,

title,

issue,

and page.

DOMESTIC FINANCE
'Findings of the Joint Report on the Government Securities Market Revealed by Assistant Secretary for Domestic
Finance." Powell, Jerome H. March 1992, pp. 18-19.
Findings of the review of the Government Securities Market unclertal<en by Treasury, the Federal Reserve, and the
Securities Exchange Commission, after the admission of wrongdoing by Salomon Brothers.

'Assistant Secretary for Domestic Finance Jerome H. Powell Talks About the latest Developments In the Government
Securities Market;* "Recent Changes to Treasury Auctions and Rules;" and "Auction Violations Lead to Closer Scrutiny
of the Government Securities Market." Powell, Jerome H. December, 1991, pp. 3-13.
Exclusive interview in which the Assistant Secretary for Domestic Finance expands on the Salomon Brothers' auction
violations and their effects; recent auction changes; a summary of Powell's September statement to Congress.

ECONOMIC POLICY
"Secretary of the Treasury Discusses the President's Economic Proposals, The." Brady, Nicholas F. March 1992, pp.
12-17
A summary of Secretary Brady's address to the House Committee on Ways and Means concerning the economic
proposals announced by President Bush in his State of the Union address and detailed in the President's budget for fiscal 1993.

"Moderate Growth Projected for U.S. Economy." Jones, Sidney L. September 1991, pp. 3-4.
An article by the Assistant Secretary of the Treasury for Economic Policy on projected economic growth and recovery
from the ninth postwar recession.

INTERNATIONAL AFFAIRS
"New OECD Tied Aid Agreement Expected

to Benefit U.S. Exporters Says Deputy Assistant Secretary For Trade and
Investment Policy William E. Barreda." Barreda, William E. March 1992, pp. 3.
Interview summarizing the tied aid rules recently agreed to by the Organization for Economic Cooperation and
Development designed to reduce trade distortions.

Futures Markets Grows." Cayton, Michael. March 1992, pp. 7-11
in the U.S. futures market previews
the upcoming release of the Foreign Investment Portfolio Survey.

"Foreign Participation
This

first

In U.S.

of a kind Treasury report on the scope of foreign participation

information included in

some

of the

"Director of the Office for Trade Finance William L. McCamey Explains New OECD Agreement to Congress." McCamey,
William L. March 1992, pp.4-6.
Summary of statement to Congress by the Director of the Office of Trade Finance detailing the tied aid agreement.

^
FINANCIAL
OPERATIONS

23

Economy

Profile of the

CHART POE-A.--

Quarterly Annual Rate

Growth

of Real Gross Domestic Product

GDP

Real

grew

at

a 2 percent annual rate

1992, the strongest showing

the

in

3 years and up from

in

first

.4

quarter of

percent

in

the

jumped at a 4.8 percent rale
reflecting a 5.3 percent rise in consumer spending and a 15.8 percent
increase in homebuilding. Many of the final purchases were made

fourth quarter of 1991. Real final sales

from existing inventories rather than increased domestic production,

91,

which resulted

92,1

IV

in

Percent Change--4tti

qtr. to

drawdowns.

large inventory

percent annual rate

in

the

rose to a 3.1

Inflation

quarter of 1992.

first

4th qtr

7

6
5

4
3

2

n

1

u

-1

-2

x

-3

76

75

T T

T

r

X

77

79

80

81

78

T T T T T
82

84

83

86

85

T

T
88

87

90

89

91

CHART POE-B.-Federal Outlays and Receipts As a Percent of Gross Domestic Product

I

I

I

1950

I

I

I

I

I

I

I

I

I

I

I

1960

1955

I

I

I

I

I

I

I

I

I

1970

1965

rx

I

I

I

I

1980

1975

I

I

I

I

I

I

1985

I

I

I

I

1990

I

I

I

I

I

1995

FISCAL YEARS*
The new
still

budget projects fiscal year 1992 outlays at 25.2 percent of

are expected

defense cutbacks
1997.

to

climb to a near-record 23.9 percent. That figure
Also, the receipts share of

The projected gap between
*

Daia

lor

1

receipts

992 through

1

GDP

is

expected

and outlays

in fiscal

to

is

fall

GDP-a post-war

projected to

to

high. Excluding deposit insurance outlays, outlays

to 21 .6

percent by

fiscal

1997, mostly because of

18.4 percent this year, before leveling off at 19 percent through fiscal

1997 represents a

997 are based on projections from the

fall

liscaJ

1

structural deficit of

993 budget,

about 2-3/4 percent

figured on a cash basis of accounting.

of

GDP

24

PROFILE OF THE ECONOMY

CHART POE-C.--Personal Saving
Household Saving as a Percent

1950
The
increase

1960

1955

personal saving rate
in

tell

to

in

the

first

spending, which outpaced a moderate increase

edged up only

slightly ito 4.5

money was tunneled
low of 4.3 percent,

it

percent

in

Income Througfi Marcfi 1992

quarter of 1992, from 5.2 percent
in

in

1991 The decline

disposable incomes. The saving rate drpped

Feburary. During f^arch, spending slowed significantly (and

far

was down

1992

for

is

based on

lifsi

quaner

Latest 12 Months

(In billions of dollars)

CHART POE-D."

350

Federal Deficit
deficit

by $49.4

compared
year

was

in

300

-

250

-

200

-

150

-

100

-

billion in Inarch,

with $41.2 billion a

For the

earlier.

months

first

6

of fiscal 1992, the deficit

totaled $196.9 billion while the

the same period last
was $152.2 billion. After

deficit for

year

adjustments
in

for this year's

drop

Resolution Trust Corporation

and other deposit insurance
outlays as well as Desert Storm
contributions, the 1992 deficit
widened by $33 billion.

now expect the total
1992 to come in well

Forecasters
deficit for

below the Administration's $400
billion

estimate, mainly

due

to
liiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

lower deposit insurance

spending than originally
anticipated
shortfalls

and the

82

83

84

85

86

87

88

possibility of

elsewhere.

saving reflected a sharp

percent

in real

ligures.

Sum Over the

Federal budget

in

1995

in

January and

terms) and

much

in

of that

The f^arch saving rate improved significantly to 5.3 percent. Although the current rate is well above the 1987
lower than the historical high of 9.0 percent and well below the long-term average of 6 9 percent.
Noie: The rate

The

to 4.3

into savings.
is

1990

1985

1980

1975

1970

1965

4 7 percent

of After-Tax

CALENDAR YEAR

—

25

PROFILE OF THE

ECONOMY

Real Disposable Personal Income
Percent Change--4th

4th

qtr. to

qtr.

CHARTS POE-E.Real consumer spending was up by a strong
5.3 percent annual rate

1992, after very

little

in

the

first

quarter of

growth over the past 2

years. Most of that spending took place

in

January and February; purchases dipped in
March. Meanwhile, first-quarter growth of aftertax income grew at a smaller, yet sizable,
annual rate of 3 percent with private sector
wage and salary payments up strongly in
February and March.

T

1

1

1

1

1

r

1

1985 1986 1987 1988 1989 1990 1991 1992*

Real Personal Spending
Percent Ctiange-4tti

qtr. to 4tti qtr.

6
5

4
3

-

First quarter at

-

2 -

n

1

n

n

-1

-2
-3 -

-4 -5 -

-6

—

1

1

1

1

1987

1988

1989

1

1

1

\

1985

1986

1990

1991 1992*

an annual

rata.

26

PROFILE OF THE ECONOMY

CHART POE-F.--Merchandise Trade Deficit
February from a slightly revised $5.9 billion now posted for January
The February drop was supported by a significant increase in exports6.8 percent-- as well as a drop in imports of 0.4 percent, attributed to a reduced volume of oil imports combined with lower oil
prices. Translated to an annual rate, the trade deficit for the first 2 months of 1992 was $56 billion, which compares with a
1991 annual rate of $66 billion. Figures for the first 2 months of this year imply that the trade component made a positive

The trade deficit narrowed sharply

The February

figure

is

contribution to the real

to

$3.4

billion in

the smallest since March 1983.

Gross Domestic Product

in

the

first

quarter of this year.

(In billions of dollars)

175

-r

83

91

84

YEARLY
n billions of dollars)

MONTHLY

1/91

2/91

3/91

4/91

5/91

6/91

7/91

8/91

9/91 10/9111/9112/91 1/92

2/92

WM

27

INTRODUCTION:

Federal Fiscal Operations

Budget authority usually takes the form of appropriations that
allow obligations to be incurrBd and payments to be made. Reappropriaticns are Congressional actions tnat extend the availability of
unobligated amounts that have expired or would otherwise e)x>ire.
These are counted as new budget authority In the fiscal year or the
legislation in which the reappropriation act is included, regardless of
when the amounts were originally appropriated or when mey would
otherwise lapse.

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. ttiat collected on Outer Continental Shelf money in deposit
funds when such money is transfen-ed into the budget).
,

The Govemment has used

the unified budget concept as

a

foundation for its budgetary analysis and presentation since 1 969. The
concept calls for the Dudget to include all of the Government's fiscal
transactions with the public. Since 1971 however, various laws have
been enacted removing several Federal entities from (or creating them
outside of) the budget. Other laws have moved certain off -budget
Federal entities onto the budget. Under current law, the off-budget
Federal entities consist of the two Social Security trust funds. Federal
old-age and survivors insurance, and Federal disability insurance.
,

Obligations generally are liquidated by the issuance of checks or
the disbursement of cash-outfays. Obligations may also be liquidated
(and outlays recorded) by the accrual of interest on public issues of
Treasury debt securities (including an increase in redemption value of
bonds outstanding); or by the issuance of bonds, debentures, notes,
monetary credits, or electronic payments.

Refunds of collections generally are treated as reductions of
collections, whereas payments for eamed-income tax credits in excess
of tax liabilities are treated as outlays. Outlays during a fiscal year may
be for payment of obligations incurred in prior years or in die same
year. CXJtIays, therefore, flow in part from unexpended balances of prior
year budqet authority and from budget authority provided for the year
in which the money is spent. Total outlays include both Ixidget and
off-budget outlays and are stated net of offsetting collections.
the tables as either budget receipts or
offsetting collections. They are collections fnom the public, excluding
receipts offset against outlays. These, also called governmental receipts, consist mainly of tax receipts (including social insurance taxes),
receipts from court fines, certain licenses, and deposits of earnings by
the Federal Reserve system. Refunds of receipts are treated as

Receipts are reported

in

deductions from gross receipts.
Offsetting collections from other Government accounts or the
public are of a business-type or mari<et-oriented nature. They are
classified as either collections credited to appropriations or fund accounts, or offsetting receipts (i.e., amounts oeposited in receipt
accounts). The former normally can be used without appropriation act
by Congress. These occur in two instances: (1) when authorized by
law, amounts collected for materials or services are treated as reimbursements to appropriations, and (2) in the three types of revolving
funds (public enterprise, intragovemmental, and trust); collections are
netted against spending, and outlays are reported as the net amount.

Offsettingreceipts in receipt accounts cannot be used without
appropriation.They are subdivided into two categories: (1) proprietary
receipts, or collections from the public, offset against outlays by agency
and by function, and (2) intra-govemmental funds, or payments into
receipt accounts from governmental appropriation or fund accounts.
They finance operations within and between Govemment agencies
and are credited with collections from other Govemment accounts.

Intrabudgetaiy transactions are subdivided into three categories:
transactions-payments are from one fund group (either
Federal finds or trust funds) to a receipt account in the otner fund
group; (2) Federal intrafund transactions-payments and receipts both
occur wifliin the Federal fund group; ana (3) trust intrafund transactions-payments and receipts both occur within tfie trust fund group.
(1) interfund

Offsetting receipts are generally deducted from budget authority
subfunction, or agency. There are four types
however, that are deducted from budget totals as undisoffsetting
tributed
receipts. They are: (1) agencies' payments
(including payments by off-budget Federal entities) as employers into

and outlays by functon,
of receipts,

Although an off-budget Federal entity's receipts, outlays, and
surplus or deficit ordinarily are not subject to targets set by the
congressional resolution, the Balanced Budget and Emergency Deficit
Control Act of 1985 (commonly known as the Gramm-RudmanHollings Act) included off-budget surplus or deficit in calculating deficit
targets

under

that act

and

in

calculating

excess

deficit. Partly for this

reason, attention has focused on both on- and off-budget receipts,
outlays, and deficit of the Govemment.

Tables FFO-1, FFO-2, and FFO-3 are published quarteriy and
cover 5 years of data, estimates for 2 years, detail for 1 3 months, and
fiscal year-to-date data. They provide a summary of data relating to
Federal fiscal operations reported by Federal entities and disbursing
officers, and daily reports from the Federal Reserve banks. They also
detail accoun'ing transactions affecting receipts and outlays of the
Govemment and off -budget Federal entities and their related effect on
assets and liabilities of tne Govemment. Data are derived from the
Monthly Treasury Statement of Receipts and Outlays of the United
States

Govemment.

• Table FFO-1 summarizes the amount of total receipts, outlays,
and surplus or deficit, as well as transactions in Federal securities,
monetary assets, and balances in Treasury operating cash.

• Table FFO-2 includes on- and off-budget receipts by source.
Amounts represent income taxes, social insurance taxes, net contributions for other insurance and retirement, excise taxes, estate and gift
taxes, customs duties, and net miscellaneous receipts.

•

Table FFO-3 details on- and off-budget outlays by agency.

(Fall issue) summarizes intemal revenue collecand other areas and by type of tax. Amounts reported
made in a fiscal year. Tney span several tax liability
years because they consist of prepayments (i.e., estimated tax payments and taxes vifithheld by employers for individual income and
Social Siecurity taxes), of payments made with tax retums, and of
subsequent payments made after tax retums are due or are filed (i.e.,
payments with delinquent retums or on delinquent accounts).

•

Table FFO-4

tions by States
are collections

It is important to note that these data do not necessarily reflect
the Federal tax burden of individual States. Amounts are reported
based on the primary filing address provided by each taxpayer or
reporting entity. For multistate corporations, the address may reflect
only the Slate where such a corporation reported its taxes from a
principal office rather than other States where income was eamed or
where individual income and Social Security taxes were withheld. In
addition, an individual may reside in one State and wori< in another.

FEDERAL FISCAL OPERATIONS

28

Budget Results for the Second Quarter, Fiscal 1992
Summary
The budget deficit was $113.8 billion in the second
quarter of fiscal 1992, or roughly $48 billion wider than the
$65.7 billion in the corresponding quarter a year earlier. A
better measure of underlying trends in the deficit might be
obtained by excluding some of the special factors that
affected the figures. Among these, foreign contributions to
Desert Storm dwindled to $0.5 billion in the second quarter
1992 from $22.6 billion a year earlier. (The deficit
was not reduced in the second quarter of fiscal 1991 by the
full
$22.6 billion, because actual Defense outlays were
boosted by the effort. However, the major portion of the cash
outlays associated with Desert Storm were spread out over a
of fiscal

much

An

longer period of time.)

additional special factor

was

a 1992 increase in deposit insurance outlays (by the RTC,
FDIC, etc.) of $8.2 billion from last year's fiscal second
quarter. Excluding these factors, the deficit was wider by
about $18 billion than in the second quarter of fiscal 1991.
For the first 6 months of fiscal 1992, the deficit was
$196.9 billion, or $44.7 billion more than the $152.2 billion in
the corresponding months of 1991. That difference narrows
to about $33 billion after adjustments for the above factors.
Receipts increased by 2.5 percent in the second quarter
from a year earlier and by a similar 2.4 percent for the entire
6 months of the current fiscal year. Fiscal year-to-date
withheld income and employment taxes rose by 4.3 percent,
or about 1 percentage point faster than growth of the
underlying wage and salary tax base. Nonwithheld individual
payments on both income and employment tax liability were
up by only 1.1 percent. (The largest portion of such receipts
typically is received in the third fiscal quarter.) Individual tax
refunds rose by a sharp 16.3 percent, reflecting the more
expeditious handling of returns. Corporate income tax
first

payments fell by 7.5 percent, including a 5.5 percent decline
in
the March payment when corporations made final
settlements on liability for the previous fiscal year. An
improvement in profits that appeared to emerge during the
second fiscal quarter will not show up in payments until later.
Total budget outlays increased from a year earlier by
18.1 percent in the second fiscal quarter and by 8.8 percent
first half of fiscal
1992. While deposit insurance
outlays were up significantly in the March quarter, year-todate they were down by nearly $1 1 billion to a total of only
$5.5 billion, with more than all of the decline accounted for
by the RTC. In the January budget, deposit insurance
outlays were projected at $80 billion for the entire fiscal year.
The slow rate of spending in the first half may indicate that
outlays for all of fiscal 1 992 will fall short of projections.

for the

Excluding deposit insurance and

an increase of nearly 9 percent in average public debt
outstanding. Defense spending fell by 4 percent (excluding
Desert Storm contributions).

A somewhat
shown

billion.

Profile of the

and off-budget resuHs:

On-budget receipts
Off-budget receipts

Total outlays

On-budget outlays
Off-budget outlays

(-)

(+) or deficit

Off-budget surplus () or

deficit

(-)
(•)

lyieans of financing:

Borrowing from
Reduction

of

Ifie

public

operating cash. Inaease

(-)

Other means
Total on-budget

and off-budget financing

totals of the deficit, as

Economy Chart D

The latter represented a widening of more than $100
from the corresponding figure for March 1991.

Tolal receipts

On-budget surplus

on budget trends may

(see page 24) For
the 12 months through March, the total deficit was $314
billion, and excluding deposit insurance outlays, it was $267
in

Pn milllona of dollars]

Total surplus (+) or deficit

different perspective

be obtained from 12-month cumulative

billion

Tolaf on-budget

Desert Storm/Shield

contributions, outlays during the first half of fiscal 1992 were
6.8 percent ahead of a year earlier. The largest increases
have been for such social spending categories as Medicare
(up 17.2 percent), other health (up 30.8 percent including an
increase of 36.5 percent for Medicaid), and income security
(up 15.6 percent, including a rise of 48 percent for unemployment insurance benefits). Net interest outlays rose by 3.9
percent, as a decline in the effective interest rate partly offset

1

13,773

29

FEDERAL FISCAL OPERATIONS

First-Quarter Receipts
The following capsule analysis of budget receipts, by source, for the first quarter of fiscal 1992 supplements
data earlier reported in the fall Issue of the Treasury Bulletin. At the time of that Issue's release, not enough
data was available to analyze adequately collections for the quarter.
fiscal

Individual

were $113.0

income taxes.—lndividual income

tax receipts

quarter of fiscal 1992. This
represents a decrease of $1.3 billion over the comparable
quarter for fiscal 1991. Withheld receipts were down $0.2
billion for this period. Nonwithheld receipts were nearly
unchanged from the comparable quarter of fiscal 1991, while
billion for

the

refunds increased by $1.1

Corporate

first

income

income tax
taxes.-Corporate
quarter of fiscal 1992 were $24.4 billion.

in estimated and
refunds of $0.3 billion.

decrease

increase

in

(GSRS).

billion.

receipts in the first
This was $1.0 billion lower than the first quarter of fiscal
1991. The $1.0 billion decrease was comprised of a $0.7
billion

billion change from the first quarter of fiscal 1991. The
growth in contributions will remain flat over the next few
years as the number of employees covered by the Federal
employees' retirement system (FERS) grows slowly relative
to those covered under the civil service retirement system

final

payments, and an

Employment taxes and contributions.-Employment
taxes and contributions receipts for the October-December
1991 quarter were $86.3 billion, an increase of $5.0 billion
over the comparable prior year quarter. Receipts to the OldAge Survivors Insurance, the Disability Insurance, and the
Hospital Insurance trust funds increased by $1.7 billion, $0.2
billion, and $3.1 billion, respectively. The increase from the
prior year is due entirely to an increase in estimated liability
for the October-December quarter.

Unemployment insurance.--Unemployment

insurance
receipts for the October-December quarter were $3.5 billion
compared with $3.4 billion for the comparable prior year
quarter. Federal Unemployment Tax Act receipts Increased
by $0.1 billion.

Contributions for other insurance and retlrement.Contributions for other retirement were $1.2 billion for the
first quarter of fiscal 1992. This represents less than a $0.1

First

Excise taxes.-Excise tax receipts for the Octoberquarter were $11.8 billion compared to $8.9
billion for the comparable quarter of fiscal
1991. The
increase of $2.8 billion (32 percent) over the prior year level
is primarily the result of the increase in excise tax rates and
broadened tax base enacted as part of the Omnibus Budget
Reconciliation Act of 1990. In addition, business activity in
the October-December quarter of fiscal 1992 improved from
the depressed levels of a year earlier. This recovery resulted
in an increased excise tax base.

December 1991

Estate and gift taxes.-Estate and gift tax receipts were
$2.7 billion in the October-December quarter of 1991. This
represents a decrease of less than $0.2 billion over the
previous quarter and is virtually unchanged from tax receipts
over the same quarter in the previous year

Customs dutles.-Customs receipts net of refunds were
$4.4 billion for the first quarter of fiscal 1992. This is an
increase of $0.2 billion from the comparable prior year
quarter. It is due to an increase in imports .
Miscellaneous receipts.-Net miscellaneous receipts

Quarter Rscal 1992 Net Budget Receipts, by Source
[In billions of

dollars]

Source
Individual

income taxes

Employment taxes and contributions
Unemployment Insurance
Contributions for other insurance and
Excise taxes
Estate and gift taxes
Customs duties

Miscellaneous receipts

Total budget receipts

Dec.
39.3

Corporate income taxes

retirement

for

the first quarter of fiscal 1 992 were $7.8 billion, a decrease of
$0.3 billion from the comparable prior year quarter. Most of
this decline is due to lower Federal Reserve earnings.

30

FEDERAL FISCAL OPERATIONS

CHART FFO-A.-Monthly Receipts and Outlays*
no

On-budget Receipts
Off-budget 'Receipts

70

bn-budget Outlays

50

Off-budget Outlays

30-".^^

.-.--•'"

**•.-.-

T

10
Apr.

'91

May

w-

T
June

July

Aug.

Sept.

Oct.

Nov.

Dec. Jan. '92

Feb.

Mar.

]

250

CHART FFO-B."

200

-

Budget Receipts
by Source Through
Second Quarter

150

-

100

-

50

-

Fiscal 1991-1992*

individual

Corp.

Soclai

Income

income

ins.

Excise

Tax

Estate
/Gift

Customs

Misc.

Duties

Receipts

TAXES AND OTHER RECEIPTS

'In bliiions of dollars.

Source: Monthly Treasury Statement of Receipts and Outlays of the United States Government

31

FEDERAL FISCAL OPERATIONS

TABLE
[In

millions ot dollars.

FF0-1.--Summary of Fiscal Operations

Source: Monlhly Treasury SlalemenI

ol

Receipts and Outlays ot Ihs United Slates

Govemmentl

Means
Total on-budget and oft-budqet results
Fiscal year

or

month

Total
receipts

On-budget

Off-budget

receipts

receipts

Total
outlays

On-budget

Off -budget

outlays

outlays

of financing

-net transactions
Total
surplus

On-budget
or

Off -budget
surplus
or

deficit

deficit

deficit

(•)

()

()

surplus

Borrowing from
public-Federal
securities

Public

debt
securities
(1)

19871

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

tfie

32

FEDERAL FISCAL OPERATIONS

TABLE FF0-2."0n-budget and Off-budget
[In

millions of dollars. Source:

Receipts by Source

Monthly Treasury SlalemenI of Receipts and Outlays

ol Ihe

United Stales

Govemmenl]
Social insurance
taxes and contributions

Income taxes
Individual

Corporation

Net

Refunds

taxes

income

Fiscal year
or

Other

month

Refunds

Gross

Errpioyment taxes and contributions
Old-age, disability, and
hospital insurance

Gross

322.463
341.435
361.387
390.480
404,152

19871
19881
19891
19901
1991

1

1992- (Est.)
1993 -(Est.)
1991 -Mar
Apr

May
June
July

Aug
Sept
Oct

Nov
Dec
1992 -Jan

Feb
Mar
Fiscal

1992 to date

n.a.
n.a.

30,478
36,428
36,958
27,449
37,119
32,993
30,758
37.291

32,448
39,943
36,047
33,941
35,728

215.398

142,990

Refunds

Net

33

FEDERAL FISCAL OPERATIONS

TABLE
[In

millions of dollars. Source: Monthly Treasury

Sodal insurance

Fiscal year
or month

FF0-2.-0n-budget and Off-budget Receipts by Source, Con.
Statemen!

of

Receipts and Outlays of Ihe United States

Governmem]

34

FEDERAL FISCAL OPERATIONS

Table FF0-3.--0n-budget and Off-budget Outlays by Agency
[In millions of dollars.

Fiscal year
or month

Source: Monthly Treasury Statement

of

Receipis and Outlays o1 the United Slates Governmeni]

Legis-

The

Executive

Funds ap-

Agricul-

lative

Judi-

ciary

Office
of the

proprialed
to the
President

ture

branch

President

Department

Commerce

35

FEDERAL FISCAL OPERATIONS

Table FFO-3.— On-budget and Off-budget Outlays by Agency, Con.
[In

millions of dollars]

36

INTRODUCTION:
The Federal Government controls the use of funds through
obligations. Obligations are recorded when the Government makes a
commitment to acquire goods or services. Obligations are the first of
four key events tha\ characterize the acquisition and use of resources:
order, payment, delivery, and consumption. In general, they consist of
orders placed, contracts awarded, sen/ices received, and similar transactions requiring the disbursement of money.

The obligational stage of a Government transaction is a strategic
point in gauging the impact of the Government's operations on ffie
national economy because it frequently represents a Government
commitment that stimulates business investments, such as inventory
purchases and employment. Though payment may not occur for

Federal Obligations
months after the Government places its order, the order
cause immediate pressure on the private economy.

itself

can

An obligation is classified by the nature of the transaction, without
regard to its ultimate purpose. For example, all salaries and wages are
reported as personnel compensation, whether the services are used
in current operations or in the construction of capital items.
Federal agencies often do business with one another. In doing
agency records obligations and thie "performing
agency records reimbursements. In table FO-1 these transactions are
[>resented. Conversely, table FO-2 shows only those transactions
incurred outside the Federal Government.
so, the "buying"

,

37

FEDERAL OBLIGATIONS

TABLE FO-1. —Gross Obligations

Incurred Within and Outside the Federal Government

By Object
[In

millions of dollars. Source:

Class, Dec. 31, 1991

Standard Form 225. Report on Obllgallons, from agencies]

Gross obligations Incurred
Object class

Outside

Personal services arxl benefits:
Personnel compensation
Personnel benefits
Benefits for former personnel

44.628

44,628

3.031

10.756

183

Contractual services and supplies;
Travel and transportation of persons
Transportation of tilings
Rent, communications, and
Printing and reproduction
Otfter services
Supplies and materials

Total

utilities

1.458
2.853
3.909

.

.

13,787
1S3

159
52S

1,617
3,381

1,050

4,959
1,189
60,428
18,795

619

550

50.656
13.712

9,772
5,083

15.796
5.018
9.004

2,149

268

17,945
5,079
9,272

64.110
130,929
57.674

11,925
50
44,808

76,035
130,979
102,482

Acquisition of capital assets:

Equipment
Lands and structures
Investments and loans

Grants and fixed cfiarges:
Grants, subsidies, and contributions
Insurance claims and Indemnities
Interest and dividends
Refunds
.

.

.

61

458

458

Otfier:

28

Unvouchered

Gross obligations incurred

t

28

11.399

929

12,328

415.465

88,088

503,553

Undistributed U.S. obligations

Gross obligations incurred {as above)
Deduct:

Advances, reimbursements,

Income, etc.

56.875
-88.387

Net obligations Incurred

358,291

For Federal budget presentation a concept of "net obligations incurred' Is generally used.
This concept eliminates transactions within the Government and revenue and reimbursements from the public which by statute may be used by Government agencies without
t

otfier

Offsetting receipts

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.)

38

FEDERAL OBLIGATIONS

ontractual Services
Acquisition of Capital Asset

7%

and Supplies

18%

ersonal Services and Benefits

12%

CHART FO-A."
Gross Federal Obligations
Incurred Outside
Grants and Fixed Charge

61%

the Federal Government,

Dec. 31, 1991
I

1

CHART FO-B.--Total Gross Federal Obligations, Dec. 31,
(In billions of dollars)

1991

39

FEDERAL OBLIGATIONS

TABLE FO-2."Gross Obligations Incurred Outside the Federal
Department or Agency, Dec.
[In

millions of dollars. Source:

31, 1991

Standard Form 225. Report on Obligations, Ifom agencies]

Personal sen/ices and benefits

Classification

Government by

Contractual services and supplies

40

FEDERAL OBLIGATIONS

TABLE FO-2. —Gross Obligations Incurred Outside the Federal
Department or Agency, Dec.
[In

31, 1991,

Classification

Con.

millions of dollars]

Grants and fixed charges
Acquisition of

Government by

Other

41

INTRODUCTION:
Balance

In the

Source and Availability of the

Account of the U.S. Treasury

The Treasury's operating cash is maintained in accounts with the
Federal Reserve oanks (FRBs) and branches, as well as in tax and
loan accounts in other financial institutions. Major information sources
include the Daily Balance Wire received from the FRBs and branches,
and electronic transfers through the Letter of Credit Payment, Fedine
Payment, and Fedwire Deposit Systems. As the FRb accounts a.re
depleted, funds are called in (withdrawn) from thousands of tax and
loan accounts at financial institutions throughout the country.
Under authority of Putilic Law 95-147, Treasury implemented a
program on November2, 1978, to invest a portion of its operating cash
in obligations of depositaries maintaining tax and loan accounts. Under
the Treasury tax arxd loan investment program, depositary financial
institutions select the manner in which they will participate. Rnandal
institutions wishing to retain funds deposited into their tax and loan
accounts in interest-t)earing obligations participate under the Note

The program permits Treasury to collect funds through finanand to leave the funds in Note Option depositaries and
the financial communities in which they arise until Treasury needs

Option.

cial institutions
in

the funds for its operations. In this way. Treasury is able to neutralize
the effect of its fluctuating operations on Note Option financial institution reserves and on the economy. Likewise, those Institutions wishing
to remit the funds to ttie Treasury's account at FRBs do so under the
Remittance Option.

Deposits to tax and loan accounts occur as customers of financial

payments, which the financial institutions use
to purchase Government securities. In most cases, this involves a
transfer of funds from a customer's account to the tax and loan account
in tfie same financial institution. Also, Treasury can direct the FRBs to
institutions deposit tax

invest excess funds in tax and loan accounts di rectly from the Treasury
account at the FRBs.

42

ACCOUNT OF THE

TABLE

U.S.

TREASURY

UST-l.-Elements of Changes

in

And Tax and Loan Note Account
fin

millions ot dollafs. Source: Financial

Federal Reserve

Balances

ManaaemanI

Service]

43

INTRODUCTION:
Treasury securities (i.e., public debt securities) comprise most of
the Federal debt, with securities issued by other Federal agencies
accounting for the rest. Tables in this section of the Tmasu/y Bulletin
reflect the total. Furtherdetailed infomiation is published in the Monthly
Statement of ttie Public Debt of the United States. Ukewise, infomiation on agency securities and on investments of Federal Government
accounts in Federal securities is published in the Monthly Treasury
Statement of Receipts and Outlays of the United States GovemmenL
• Table FD-1 summarizes the Federal debt by listinqpublic debt
and agency securities held by the public, inclucfing the Federal Resen/e. It also includes debt held by Federal agencies, largely by the
Social Security and other Federal retirement trust funds. (For greater

on holdings of Federal securities by particular classes ofinvessee the ownership tables, OFS-1 and OFS-2.)

detail
tors,

• Table FD-2 categorizes by type interest-bearing maricetable
and nonmatketable Treasury securities. The difference between inter-

est-bearing arxJ total public debt securities reflects outstanding
matured Treasury secunties-that is, unredeemed securities that have
matured and are no longer accruing interest. Because the Federal
Rnancing Bank is uixier ffie supervision of Treasury, its securities are
held by a U.S. Government account.

FD-3, nonmai1<etable Treasury securities held by U.S.
to particular funds
w/ithin Government. Many of the funds invest in par value special series
nonmarketables at interest rates determined 6^ law. Others invest in
market-based special Treasury securities whose terms mirror those of
• In table

Government accounts are summarized by issues

mart<etable securities.
• Table FD-4 presents interest-bearing securities issued by
Government agencies. Federal agency Ixirrowing has declined in
recent years, in part tiecause the Federal Rnancing Bank has provided

financing to other Federal agencies. Meanwhile, Government-sponentities whose securities are presented are not Federal
agencies, and their securities are not guaranteed by the Federal

sored

Federal Debt

Government. (Federal agency borrowing from Treasury is presented
the Monthly Treasury Statement of Receipts and Outlays of the
United States Government.)

in

• Table FD-5 illustrates the average length of mari<etable interest-bearing public debt held by private investors and the maturity
distrilxition of that debt. Average maturity has increased gradually
since it hit a tow of 2 years, 5 months, in December 1975. In March
1971, Ckxigress enacted a limited exception to the 4-1/4-percent
interest rate ceiling on Treasury bonds. This permitted Treasury to offer
securities maturing in more than 7 years at current market rates of
interest for the first lime since 1965. This exception bias expanded
since 1971 authorizing Treasury to continue to issue long-term securities, and the ceiling on Treasury bonds was repealed on
November
10, 1988. The volume of privately held Treasury marketable securities
by maturity class reflects the remaining period to maturity of Treasury
bills, notes, and bonds. The average length is comprised of an average
of remaining periods to maturity, weighted by fie amount of each
security held by private investors. In other words, computations of
average length exclude Government accounts and the Federal Re-

sen/e tanks.
• In table FD-6, the debt ceiling is compared v\rith the outstanding
debt subject to limitation by law. The other debt category includes
Federal debt Congress has designated as being subject to the debt
ceiling. Changes in the non-interest-bearing debt shown in the last
column reflecFmaturities of Treasury securities on nonbusiness days,
which can be redeemed on the next business day.

•

Table FD-7 details Treasury holdings of securities issued by

Govemment corporations and other agencies. Certain Federal agencies are authorized to bonow money from the Treasury, largeK^ to
finance direct loan programs. In addition, agencies such as the Bonneville Power Administration are authonzed to borrow from the
Treasury to finance capital projects. Treasury, in turn, finances these
loans by selling Treasury securities to the public.

44

FEDERAL DEBT

TABLE FD-l.-Summary of Federal Debt
[In

millbns of dollars. Source: Monthly Treasury Slalemenl of Receipts and Oullays of Ihe Uniled Stales Government]

Amount outstanding
End

fiscal

or

Securities held by:

year

month

The

Government accounts

of

Total

Public

Agency

debt

securi-

securi-

ties

ties

Total

Public

Agency

debt

securi-

securi-

ties

ties

public

Public
Total

45

FEDERAL DEBT

TABLE FD-2.--Interest-Bearing Public Debt
[In

millions of dollars. Source: Monthly

Slalemenl

of the Public

Debt ot the Unried States]

46

FEDERAL DEBT

TABLE
[In

FD-3.--Government Account Series

millions of dollars. Source: Monthly

SlalemenI

ot the Public

Debt

ol

Ihe United Slates]

47

FEDERAL DEBT

TABLE
[In

FD-4."Interest-Bearing Securities Issued by Government Agencies

millions ol dollars.

Source: Monlhly Treasury Slatemenl

of

Receipts and Outlays o( the United Slates Governmenl and Financial

Federal Deposit
Insurance Corporation

Housing and Urtian
Developmenl Department

Managemenl

Service]

aher
independeni

Endol
fiscal

or

year

month

Total

Bank

Federal Savings

Federal

Government

Tennessee

outstanding

insurance
fund

and Loan Insurance Corporation-

Housing

National

Adminis-

Mortgage

Valley
Authority

resolution

tration

Assoaaton

Other

fund

200

1987
1988
1989
1990

4,009
12,398
23,680
32,758

1991

17,751

95

June

26,503
25,470
25,027
24,952

July

23,341

1.S47
1.450
1/t50
1.450
1.450

Aug

21,898

Sept

17,751

Oct

18,476
18,789
18,705
17.278
15,682
15,916

1991 -Mar

Apr

May

Nov
Dec
1992 -Jan

Feb
Mar

1

Funds matured Jan.

5.

1987.

882
3.130
2,981

96
95
95
95
94
94
94
93

9,733
18,598
19,339
6.124
14,490
13,560
13,075
12,981

11.529
11,425
6,124
6,119
6.119
5,846
2,583
2,368
2,259

178
120

295
357
336
370
365
407
428
300
315
336
337
365
397
335
372
421

1.965

1.380
1,380
1.380
9,380
10,503

285
283
276

9.380
9.380
9.380
9.380
9.380
9.380
10.503

716
715
715
712
682
682
694

11.231
11.516
1 1 ,676
13,575
12,157
12,454

693
692
690
689

701

694

48

FEDERAL DEBT

TABLE FD-5."Maturity Distribution and Average Length of Marketable
Interest-Bearing Public Debt Held by Private Investors
[In

fiscal

Market Finance]
Maturity

dasses

outstanding

year

privatafy
field

1987
1988
1989
1990

-Mar
Apr

May
June
July

Aug
Sepi
Oct

Nov
Dec
1992- Jan
Feb
Mar

Wittiin
1

year

1,445,366
1.555,208
1,654.660
1,841,903
2,113,799

483,582

1,970,519
1,974,883
2,012,127
2,003,121
2,054,782
2,075,255
2.113,799
r2.143,246
r2,l57,160
2,171,507
2,201,642
2.211,963
2.266,806

678.000
647,282
662,538

1991
1991

millions of dollars. Source: Office o<

Amount

Endol

524,201
546.751
626,297
713,778

673,231
688,269
702,752
713,778
r736,171
r743,409
742,609
749,495
758,592
786,988

10-20

years

5-10
years

526,746
552,993
578.333
630,144
761,243

209,160
232,453
247.428
267,573
280,574

72,862
74,186
80,616
82,713
84,900

153,016
171,375
201,532
235,176
273,304

5yrs.
5yrs.
6yrs.
6yrs.
6yrs.

9nios.
9 mos.

685,842
720,023
736,577
717,100
752.002
733,723
761,243
769,530
769,070
788,493
806,162
785,152
812,044

268,356
269,257
264,523
264,344

85.136
85.136
87,198
87.198
87.198
84.900
84.900
84.394

253,185
253,185
261,291

6yrs.
6yrs.
6yrs.
6yrs.
6yrs.
6yrs.
6yrs.
5 yrs.
6yrs.

Omos.
Omos.

1-5

20 years
and over

years

r266,064
280,576
280,574

280,645
276,457
274,221
278,275
291,657
291,507

Average

261 ,248
261 ,248

273,304
273,304
272,506
280,764
278,980
280,413
290,764
290,559

87.461

87.203
87.297
85.798
85.708

6

yrs.

5

yrs.

6

yrs.

5

yrs.

TABLE FD-6.--Debt Subject to Statutory Limitation
(In millions of dollars.

End

year
or rrwnth

1987
1988
1989
1990
1991
1991 -Mar

Apr

May
June
July

Aug
Sep!
Oct

Nov
Dec
1992 -Jan
Feb
Mar
1

Consists

of

of tfie Pubfic

Debt outstanding
subject to limitation

Statutory
debt

of

fiscal

Source: Montfily Statement

Debt

of tfw

United States]

Interest-bearing debt
subject to limitation

Non-interest-bearing
public debt subject

limit

Total

Public debt

Otfier debt

2.800,000
2,800,000
2,870,000
3.195.000
4.145.000

2,336,014
2,586,869
2,829,770
3.161.223
3.569.300

2,334,677
2,586,739
2,829,474
3.160.866
3.568.964

1.336

4.145.000
4.145.000
4.145.000
4.145.000
4,145,000
4.145,000
4.145.000
4.145.000
4.145.000
4.145.000
4.145.000
4.145.000
4.145.000

3.377.098
3.357.933
3.409.353
3.450.261
3,486,213
3,517,966
3.569.300
3.620.778
3.650.487
3.706.814
3.714.426
3.734.266
3.783.610

3.376.728
3.357.569
3.408.947
3.449,833
3,485,912
3.517.651
3.568.964
3.620.441
3.650.122
3.706.417
3.714.091
3.733.907
3.783.220

guaranteed debt Issued by

tfie

Federal Housing Administration.

t

Public debt

Otfier debt

1,336

296
358
336

2.332.750
2.584,878
2,808,949
3.139.092
3.567.793

370
365
407
428
300
315
336
337
365
397
335
359
390

3.354.246
3.356.268
3.407.647
3.429.273
3.484.674
3.505.217
3.567,793
r3,618,522
r3.635,634
r3,704,172
3.711,877
3,719,590
3.781,020

130

to limitation

1,927

130

1,861

296
358
336

20,525
21.774

370
365
407
428
300
315
336
337
365
397
335
359
390

22.482

1.171

1.301

1.300
20.560
1.238
12.434
1.171
r

r1.918
14.488
t2,245
2.214
14.318
2.200

lengtfi

Omos.
1

mo.
mo.

2 mos.
1 mo.

Omos.
mo.
mos.
11 mos.
1 mo.
mos.
11 mos.
1 mo.
1 1 mos.
1

49

FEDERAL DEBT

TABLE FD-7.--Treasury Holdings of Securities
Issued by Government Corporations and Other Agencies
[In

millions of dollars. Source: Monlhly Treasury

Slalemenl

ol

Receipts and Outlays ol the United Stales

Govemmenll

50

FEDERAL DEBT

CHART FD-A.--Average Length of the Marketable Debt*
Privately Held

1945 47

49

51

53

55

57

59

*

61

63

65

Source: Depanment

ot the

67

69

71

73

75

Treasury. Otiice ol Market Finance

77

79 81

83

85

87

89

91

51

FEDERAL DEBT

CHART FD-B.--Private Holdings of Treasury
As

of

Marketable Debt, by Maturity*

March 31

(In billions of dollars)

$Bil

2200

31,

1992

—

Over 10 years

2000

2-10 years

1800

1-2 years

1600

1

1400

March

COUPONS

year & under

BILLS

1200
1000

800

600
400
200

1981

1982

1983

1984

As

'

1986

1985
of

Source: Depanmenl

ol

1987

December

1988

31

Ihe Treasury, Otiice ol Markel Finance

1989

1990

1991

2266.8

52

INTRODUCTION:

Public Debt Operations

The Second Liberty Bond Act (31 U.S.C. 3101, et sea) allows
the Secretary of the Treasury to borrow money by issuing Treasury
securities. The Secretary determines the terms aixl conditions of issue,
conversion, maturity, payment, and Interest rate. New issues of Treasury notes mature in 2 to 1 years. Bonds mature in more than 1 years
from the issue date. Each marketable security is listed in the Monthly
Statement of the Public Debt of the United States. The information in
this section of the Treasury Bulletin pertains only to marltetable Treasury securities, cun-ent bills, notes, and bonds.
• Table PDO-1 provides a maturity schedule of interest-bearing
mari<etable public debt securities other than reqular weekly and 52week t)ills. All unmatured Treasury notes ana bonds are listed in
maturity order, friom eariiest to latest. A separate breakout is provided
for the combined holdings of the Govemment accounts and Federal
Resen/e banks, so that the "all other investors' category includes all
private holdings.

• Table

PDO-2 presents the results of weekly auctions of 1 3- arxJ

26-week bills, as well as auctions of 52-week tiills, which are held every
fourth week. Treasury bills mature each Thursday. New issues of
13-week bills are reopenings of 26-week bills. The 26-week bill issued

week to mature on the same Thursday as an existing
52-week bill is a reopening of the existing 52-week bill. New issues of
cash management hills are also presented. High, low, and average
yields on accepted tenders and the dollar value of total titds are
presented, with the dollar value of awards made on both competitive
and noncompetitive basis.
every fourth

Treasury accepts noncompetitive tenders of up to $1 million for
million for notes and bonds in each auction of securities to
erKxxirage participation of individuals and smaller institutions.
bills

and $5

Table PDO-3 lists the results of auctions of maricetable securiother than weekly bills, in chronological order over the past 2
years. Included are: notes and bonds from table PDO-1 52-week bills
from table PDO-2; and data for cash management bills. The maturities
of cash management bills coincide with those of regular issues of
•

ties,

;

Treasury
•

bills.

Table

ties allotted to

PDO-4

amount of mari<etable securiThe Federal Resen/e banks tally

indicates the total

each dass

of investor.

into investor classes the tenders in each auction of maricetable
rities other than weekly auctions of 13- and 26-week bills.

secu-

TREASURY FINANCING: January-March
to 5 percent, price 99.765.

Tenders

at the high yield

were

allotted

25 percent.

JANUARY
Noncompetitive tenders were accepted in full at the average
4.99 percent, price 99.784. These totaled $1,140 milCompetitive tenders accepted from private investors totaled

yield.
lion.

$12,626

\uction of 7- Year Notes

Decennber 31 Treasury announced
would auction $9,500
7-year notes to refund $5,308 million of notes maturing
January 15, 1992, and to raise about $4,200 million of new cash,
rhe notes offered were Treasury Notes of Series E-1 999, dated
January 15, 1992, due January 15, 1999, with interest payable July
15 and January 15 until maturity. An interest rate of 6-3/8 percent
was set after the determination of which tenders were accepted on

In

it

nillion of

i

53

PUBLIC DEBT OPERATIONS

yield auction basis.

million.

addition to the $13,766 million of tenders accepted in the

was accepted from Federal Reserve
banks as agents for foreign and international monetary authorities,
and $439 million was accepted from Federal Reserve banks for
auction process, $898 million

own

their

account.

Thenotesof Series H-1997 were dated January 31, 1992, due
interest payable July 31 and January 31

January 31, 1997, with

Tenders were received prior to 12:00 noon, EST, for noncomjetitive tenders and prior to 1 :00 p.m., EST, for competitive tenders
January 8, 1992, and totaled $18,315 million, of which $9,507
Tiillion was accepted at yields ranging from 6.38 percent, price
J9.972, up to 6.41 percent, price 99.805. Tenders at the high yield

until maturity. An interest rate of 6-1/4 percent was set after the
determination of which tenders were accepted on a yield auction

basis.

Tenders

for

the notes were received prior to 12:00 noon, EST,

and prior to 1:00 p.m., EST, for comtenders January 23, and totaled $20,514 million, of which
$9,271 million was accepted at yields ranging from 6.26 percent,
price 99.958, up to 6.29 percent, price 99.831 Tenders at the high

for noncompetitive tenders

vere allotted 77 percent.

petitive

Noncompetitive tenders were accepted

in full at

the average

.

^eld, 6.40 percent, price 99.861.

These

totaled

$772

million.

Ac-

were

yield

73 percent.

allotted

;epted private investors' competitive tenders totaled $8,735 million.

In

addition to the $9,507 million of tenders accepted

in

the

$588 million was accepted from Federal Reserve
)anks as agents for foreign and international monetary authorities,
and $451 million was accepted from Federal Reserve banks for
heir own account.
luction process,

Noncompetitive tenders were accepted in full at the average
6.28 percent, price 99.873. These totaled $768 million. Accepted private investors' competitive tenders totaled $8,503 million.
yield,

In

addition to the $9,271 million of tenders accepted

Auction of 2- Year and 5-Year Notes

and $100
their

January 15 Treasury announced
nillion of

2-year notes

of

the

it

own

million

was accepted from Federal Reserve banks

for

account.

would auction $13,750

Series V-l 994 and $9,250 million of 5-year

H-1997 to refund $10,772 million of securities
January 31, 1992, and to raise about $12,225 million of

lotes of Series
Tiaturing

in

auction process, $70 million was accepted from Federal Reserve
banks as agents for foreign and international monetary authorities,

52-Week BUls

lew cash.
The notes

of Series V-1 994 were dated January 31 1992, due
January 31, 1994, with interest payable July 31 and January 31
jntil maturity. An interest rate of 4-7/8 percent was set after the
determination of which tenders were accepted on a yield auction
,

January 3 tenders were invited for approximately $12,500
364-day Treasury bills to be dated January 16, 1992, and
to mature January 14, 1993. The issue was to refund $11,803
million of maturing 52-week bills and to raise about $700 million of
million of

new cash.

}asis.

Tenders were received prior to 12:00 noon, EST, for noncomsetitive tenders and prior to 1 :00 p.m., EST, for competitive tenders
January 22, and totaled $42,670 million, of which $13,766 million
was accepted at yields ranging from 4.98 percent, price 99.802, up

Tenders were opened January 9. They totaled $37,121 million,
which $12,526 million was accepted, including $697 million of
noncompetitive tenders from the public and $3,130 million of the
bills issued to Federal Reserve banks for themselves and as agents
for foreign and international monetary authorities.
of

,

PUBLIC DEBT OPERATIONS

54

TREASURY FINANCING: January-March, Con.
An

additional

for

$300

million

was issued

to Federal

Reserve

and international monetary authorities
new cash. The average bank discount rate was 3.84 percent.

banks as agents

for foreign

high yield were allotted 38 percent. Noncompetitive tenders were

accepted

These

in full at

totaled

the average yield, 7.29 percent, price 101.413.

$652

million.

Competitive tenders accepted from

private investors totaled $10,381 million.

addition to the $1

In

1

,033 million of tenders accepted

auction process, $118 million

in

the

was accepted from Federal Reserve

banks as agents for foreign and international monetary authorities,
and $300 million was accepted from Federal Reserve banks for
their

own

account.

February Quarterly Financing

February 5 Treasury announced it would auction $15,000
N-1995, $1 1,000 million of 9-3/4year 7-1/2 percent notes of Series D-2001, and $10,000 million of
29-2^4-year 8 percent bonds of November 2021 to refund $21 ,032
million of Treasury securities maturing February 15 and to raise
about $14,975 million of new cash.

The notes of Series D-2001 may be held
minimum par amount required is $80,000.

in

STRIPS form. The

million of 3-year notes of Series

The 8 percent bonds of November 2021 were an additional
November 15, 1991, due November 15, 2021
with interest payable May 15 and November 15 until maturity.
issue of bonds dated

Accrued

interest of

November

The notes

Series N-1995 were dated February 18, 1992,
due February 15, 1995, with interest payable August 15 and February 15 until maturity. An interest rate of 5-1/2 percent was set after
of

the determination of which tenders were accepted on a yield auction
basis.

Tenders for the notes were received prior to 12:00 noon, EST,
noncompetitive tenders and prior to 1:00 p.m., EST, for competitive tenders February 1 1 and totaled $29,425 million, of which
$1 5,01 6 million was accepted at yields ranging from 5.51 percent,
price 99.973, up to 5.55 percent, price 99.864. Tenders at the high

for

$20.8791 2 per $1 ,000, covering the period from
February 18, 1992, was payable with each

15, 1991, to

accepted tender.

Tenders

for

the bonds were received prior to

1

2:00 noon, EST,

noncompetitive tenders and prior to 1:00 p.m., EST, for competitive tenders February 13, and totaled $20,624 million, of which
$10,005 million was accepted at yields ranging from 7.90 percent,
price 101.101, up to 7.93 percent, price 100.757. Tenders at the

for

high yield were allotted

29

percent.

,

yield

were

allotted

32 percent.

Noncompetitive tenders were accepted in full at the average
7.91 percent, price 100.986. These totaled $376 milCompetitive tenders accepted from private investors totaled

yield,
lion.

$9,629
Noncompetitive tenders were accepted in full at the average
yield, 5.54 percent, price 99.891 totaling $839 million. Accepted
private investors' competitive tenders totaled $14,177 million.
,

In

addition to the $15,016 million of tenders accepted

in

was accepted from Federal Reserve
banks as agents for foreign and international monetary authorities,
and $1,818 million was accepted from Federal Reserve banks for

own

for their

$150

own

million

in

the

was accepted from Federal Reserve

account.

the

auction process, $894 million

their

addition to the $10,005 million of tenders accepted

auction process,

banks
In

million.

The bonds of November 2021 may be held
The minimum par amount required is $25,000.

in

STRIPS

form.

account.

Auction of 2- Year and 5-Year Notes

The

7-1/2 percent notes of Series D-2001 were an additional

15, 1991, due November 15, 2001,
15 and November 15 until maturity.
Accrued interest of $1 9.5741 8 per $1 ,000, covering the period from
November 15, 1991, to February 18, 1992, was payable with each

issue of notes dated

November

with interest payable

May

accepted tender.

February 19 Treasury announced it would auction $14,250
2-year notes of Series W-1994 and $9,750 million of
5-year notes of Series J-1 997 to refund $1 0,928 million of securities
maturing February 29, 1992, and to raise about $13,075 million of
million of

new cash.
TenderaJor the notes were received

prior to

12:00 noon, EST,

noncompetitive tenders and prior to 1:00 p.m., EST, for competitive tenders February 12, and totaled $25,425 million, of w/hich
$1 1 ,033 million was accepted at yields ranging from 7.29 percent,
price 101.413, up to 7.30 percent, price 101.344. Tenders at the

for

Notes

of

Series

An interest rate of 5-a'8 percent was set after determinawhich tenders were accepted on a yield auction basis.

maturity.
tion of

2, 1992, due Feband February 28 until

W-1994 were dated March

ruary 28, 1994, interest payable August 31

PUBLIC DEBT OPERATIONS

55

TREASURY FINANCING: January-March, Con.
Tenders

amount of bills dated October 31, 1991, maturing April
The issue was to raise new cash. Tenders were opened
February 27. They totaled $48,434 million, of which $14,081 million
was accepted. The average bank discount rate was 3.97 percent.

notes were received prior to 12:00 noon, EST,

additional

and prior to 1:00 p.m., EST, for com(etitive tenders February 25, and totaled $36,688 million, of which
)1 4,305 million was accepted at yields ranging from 5.39 percent,
)rice 99.972, up to 5.41 percent, price 99.935. Tenders at the high
'ield were allotted 41 percent. Noncompetitive tenders were ac;epted in full at the average yield, 5.40 percent, price 99.953. These
otaled $988 million. Competitive tenders accepted from private

30, 1992.

for the

or noncompetitive tenders

nvestors totaled $1 3,31 7 million.

In

addition to the $14,305 million of tenders accepted

luction process,

$838

million

in

the

was accepted from Federal Reserve

lanks as agents for foreign and international monetary authorities,

was accepted from

ind

$763

million

heir

own

account.

Federal Reserve banks for

Auction of 2- Year and 5-Year Notes

March 18 Treasury announced

The notes

of

Series J- 1997 were dated March

2,

1992, due

•ebruary 28, 1997, with interest payable on the last calendar day
»f
August and February until maturity. An interest rate of 6-3'4
lercent

was

set after the determination of which tenders

Tenders for the notes were received prior to 12:00 noon, EST,
noncompetitive tenders and prior to 1:00 p.m., EST, for comletitive tenders February 26, and totaled $31 ,787 million, of which
19,762 million was accepted at yields ranging from 6.74 percent,
irice 100.042, up to 6.75 percent, price 100.000. Tenders at the
3r

were

72 percent. Noncompetitive tenders were
iccepted in full at the average yield, 6.75 percent, price 100.000.
'hese totaled $684 million. Competitive tenders accepted from
irivate investors totaled $9,078 million.
allotted

addition to the $9,762 million of tenders accepted

lUction process,

lanks for their

$150

own

million

in

Series K-1997 to refund $18,254 million of Treasury notes

maturing March 31 and to raise about $6,750 million of

was accepted from Federal Reserve

The notes of Series X-1 994 were dated March 31, 1992,
due March 31, 1994, with interest payable September 30 and
March 31 until maturity. An interest rate of 5-3/4 percent was set
after the determination of which tenders were accepted on a yield
auction basis.

Tenders

January 31 tenders were invited for approximately $12,750
nillion of 364-day Treasury bills to be dated February 1 3, 1 992, and
D mature February 11, 1993. The issue was to refund $12,550
maturing 52-week bills and to raise about $200 million of
lewcash. Tenders were opened February 6. They totaled $38,621
nillion, of which $12,861 million was accepted, including $698
nillion of noncompetitive tenders from the public and $3,901 million
the bills issued to Federal Reserve banks for themselves and as
nillion of

if

and international monetary
bank discount rate was 4.01 percent.

for

the notes were received prior to 12:00 noon, EST,

noncompetitive tenders and prior to 1:00 p.m., EST, for competitive tenders March 24, and totaled $41 ,944 million, of which
$14,779 million was accepted at yields ranging from 5.84 percent,
price 99.832, up to 5.85 percent, price 99.814. Tenders at the high

for

were

allotted

84 percent.

Noncompetitive tenders were accepted in full at the average
5.85 percent, price 99.814. These totaled $1,154 million. Competitive tenders accepted from private investors totaled
$13,625 million.

yield,

l-Week Bills

irage

new cash.

the

account.

igents for foreign

million

of

yield
In

would auction $14,750

2-year notes of Series X-1 994 and $1 0,250 million of 5-year notes

were

iccepted on a yield auction basis.

ligh yield

it

of

authorities.

The av-

In

addition to the

$14,779

the auction process, $732 million

million of

tenders accepted

in

was accepted from Federal Re-

serve banks as agents for foreign and international monetary
authorities,

banks

and $2,262

for their

own

million

was accepted from Federal Reserve

account.

The notes of Series K-1997 were dated March 31, 1992,
due March 31, 1997, with interest payable September 30 and
March 31 until maturity. An interest rate of 6-7/8 percent was set
after the determination of which tenders were accepted on a yield
auction basis.

^b Management Bills

Tenders

for the

notes were received prior to 12:00 noon, EST,

noncompetitive tenders and prior to 1:00 p.m., EST, for competitive tenders March 25, and totaled $25,522 million, of which

for

February 25 tenders were invited for approximately $14,000
57-day bills to be issued March 4, 1992, representing an

nillion of

$10,290

million

was accepted

at yields ranging

from 6.93 percent,

PUBLIC DEBT OPERATIONS

56

TREASURY FINANCING: January-March, Con.
price 99.771
yield

were

,

up

to 6.94 percent, price 99.729.

allotted

Tenders

at the high

addition to the $10,290 million of tenders accepted in the

was accepted from Federal Reserve
banks as agents for foreign and international monetary authorities,
and $250 million was accepted from Federal Reserve banks for
auction process, $700 million

their

own

account.

Bills

90 percent.

Noncompetitive tenders were accepted in full at the average
yield, 6.94 percent, price 99.729. These totaled $1,037 million. Competitive tenders accepted from private investors totaled
$9,253 million.

In

52-Week

February 28 tenders were invited for approximately $1 3,750
364-day Treasury bills to be dated March 12, 1992, and
to mature March 11,1 993. The issue was to refund $1 1 ,233 million
of maturing 52-week bills and raise about $2,525 million of new
cash. Tenders were opened March 5. They totaled $31 ,077 million,
of which $13,785 million was accepted, including $625 million of
noncompetitive tenders from the public and $3,409 million of the
bills issued to Federal Reserve banks for themselves and as agents
for foreign and international monetary authorities. The average
million of

bank discount

rate

was 4.37

percent.

57

PUBLIC DEBT OPERATIONS

TABLE PDO-1. --Maturity Schedule of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week Treasury
[In

millions ot dollars. Source:

Monthly Statement

of the Public

Debt

of the

Bills

Outstanding, Mar. 31, 1992

United Slates, and Office of Market Finance]

Amount

Date

o( final maturity

Descrption

of maturities

58

PUBLIC DEBT OPERATIONS

TABLE PDO-l.-Maturity Schedule of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52- Week Treasury
[In

Bills

Outstanding, Mar. 31, 1992, Con,

millions of dollars]

Amount

of maturities

Held by

Date

of final maturity

Description

1994
Jan. 15
Jan. 31

7%-D

note

Feb. 15
Fab 15

4-7/8%-V note
9% bond
8-7/8%-H note
6-7/8%-R note

Fob 28

5-3/8%-W note

Maf. 31
Mar. 31
Apr. 15

B-1/2°/rM nae
5-3/4'yrX note
7%-E note

May
May
May
May

4-l/8%bond
13-1/8%A nolo
9 1'2%J note
7%-S note

Feb 15

15.89-94
15
15
15

June 30
July 15
Aug. 15
Aug. 15
Aug. 15
Aug 15
Sept.

30

Oct. 15

Nov.
Nov.
Nov.
Nov.
Dec.

15
15
15
15
31

8-1/2%-N note

8%-F note

12-»8%B

note

8-3/4% bond
e-5/B%-K note
6-7/8%-T note

B-M2y^P

note

9-1/2%-G note
' 1 1-5/8%-C note
1 0-1/8% bond
8-1/4%-L note

6%-U

note

7-5/8%-Q note

PUBLIC DEBT OPERATIONS

TABLE PDO-l.-Maturity Schedule of Interest-Bearing Marketable Public
Other than Regular Weekly and 52-Week Treasury
[In

Bills

Debt Securities

Outstanding, Mar. 31, 1992, Con.

millions of dollafsl

Amount

of maturities

Held by

Date

of final maturity

Descrptlon

1996 Con.
30

Sspl-

7%.T noia
8%-H note

Of)- '5

Oa.21
15
Nov- 30

6-7/8%-U note
2 7.i/4%.D note
6-1/2%-V note

Oec.31

6-1/8%-W note

J^ov-

1997
•i3n.:5
;i3n- 31

6-lM%-H

[,* 28

6-3/4"!<rJ

B<y„.0 note

note
note
6-7/8°/.^K note
8-l/2°/rE note
2 8.1/2%-A note
B--[/2°/^F note
2 8-5'8%-B note
8-3/4°/rG note
2 8-7/8%-C note

M*'- 3'
'5
*P'"^^y 15
'"''> '5

'I

2i;9-

i^\%
"^O"- 15

1998
^^•15

;*

7-7/8%-E note
2 8-1/8%-A note

15

y']^
"

w
May

15,

-["'1'

15-

7-7/8%-F note
^ 9°''°-B no'e

t' ;>i

,i,93-98

7% bond
8-1/4%-G note

*"9- 15

2

15-

P<^-

9.1/4VC

note

7-1/8%-H note

^o*- 5
''0"-15

2 8-7/8»/<rD note

3-l/2%bond

1999

^^15

6-3/8"y,^E note
2 8-7/8%A note

15

f*Ji^'
May

•

f-

15.

•

•

•;

94-99

*"9 15

9-i/B%.B note

28''/^C note
2 7.7/8»^D note

15

'^o^-

2

8-l/2%bond

2000
^!5' II „V^;
Feb. 15, 95-00

2 8-i/2%.A note
7.7/8./. bond

"^l'

2 8-7/8%-B note
28-3^4%-C note

1

5-

. 3' Ic Vi'Ai
Aug. 5. 95-00
'^'^•15

8-3/B%bond
2 8-l/2»/^D note

2001

^*
r^.*-

15
15

1

13-1/8% bond

"^"15

.3

^

1-3(4% bond

2 7-3'4%-A note

"^y 15
„• -

Aug. 15. 96-01

2

8%-B

2

7-7/B%rC note

note

8%bond

60

PUBLIC DEBT OPERATIONS

TABLE PDO-1. "Maturity Schedule of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week Treasury
[In

Bills

Outstanding, Mar. 31, 1992, Con.

millions of dollars]

Amount

of maturities

Held by

Date

erf

U.S.

final maturity

Description

Issue date

Total

Govl

accounts and
Federal Re-

All

other
investors

serve banks

2001 Con.
13-:V8%bond
15-:V4%bond
7-1/2%-D note

Aug. 15
Nov. 15
Nov. 15

2

07/02/81
10/07/81
11/15/91

1.753
1.753
24.226

217

Total

68.518

2.972

2002
14-1/4%bond
11-S'8%bond

Feb. 15
Nov. 15

2003
10-*4%bond

Feb. 15
May 15
Aug. 15
Nov. 15

10- 3(4%

bond
-1/8% bond
11-7/8% bond
11

2004
May 15

12-3'8%bond

Aug. 15
Nov. 15

2 11-5/8%

13-3/4%-C note
bond

2005
May

15.

May 15
Aug. 15

00-05

8-l/4%bond
2 12% bond
2 10-3/4% bond

2006
Feb.15

29-3'8%bond

01/06/82

09«9/82

163

610

1,536
1.590
23.616

61

PUBLIC DEBT OPERATIONS

TABLE PDO-l.—Maturity Schedule of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week Treasury
[In

Bills

Outstanding, Mar. 31, 1992, Con.

millions ol dollars]

Amount

of maturities

Held by

Date

of final

U.S.

maturity

Description

Issue date

Total

Gmt

accounts and
Federal Re-

All

other
investors

serve banks

2008 Con.
Nov. 15, 03-08

8-3/4% bond

11/15if78

Total

2009
May

15. 04-09
Nov. 15. 04-09

9-l/8%bond

10-a8%bond

2010
Feb. 15.05-10

May 15.05-10
Nov. 15.05-10

ll-a'4%bond
10% bond
12-:y4%bond

2011
May

15. 06-11
Nov. 15,06-11

13-7/8% bond
14% bond

2012
Nov. 15, 07-12

10-3'8%bond

2013
Aug. 15.08-13

12%bond

2014
May 15. 09-14
Aug. 15.09-14
Nov. 15.09-14

13-l/4%bond
12-l/2%bond
2 11-3/4% bond

2015
Feb. 15
Aug. 15
Nov. 15

2
2
2

11-1/4%bond
io-5/8%bond
9-7/8% bond

5,230

3,574

62

PUBLIC DEBT OPERATIONS

TABLE PDO-1. --Maturity Schedule of Interest-Bearing Marketable Public Debt Securities
Other than Regular Weekly and 52-Week Treasury
[In

Bills

Outstanding, Mar. 31, 1992, Con.

millions ot dollafs]

Amount

Date

0) linal

maturity

Descrption

ot maturities

63

PUBLIC DEBT OPERATIONS

TABLE PD0-2.--0fferings of Bills
[In

millions of dollars. Source:

Description of

new

Monthly Statement

of ihe Public

Debt

of

ihe United States and allotments]

Amounts

Issue

of bids

accepted
Arrxjunt

Issue date

Maturity

Number

date

days

of

to

maturtty

1

Arrxjunt of
bids

tendered

Total

On conv

On nonconv

anxunt

petttlve basis 2

petltive basis 3

64

PUBLIC DEBT OPERATIONS

TABLE PD0-2.--0fferings of Bills, Con.

65

PUBLIC DEBT OPERATIONS

Table PD0-3."PubIic Offerings of Marketable Securities
Other than Regular Weekly Treasury Bills
[In

Auctton

millions of dollars. Source:

Bureau

of Iha Public Debt]

66

PUBLIC DEBT OPERATIONS

Table PD0-3,--Public Offerings of Marketable Securities
Other than Regular Weekly Treasury Bills, Con.
[In

Auction
date

Issue

date

Desaiptbn

millions ol dollars. Source:

ol securities

<

Bureau

of the Public Debt]

67

PUBLIC DEBT OPERATIONS

Table PD0-3.--PubIic Offerings of Marketable Securities
Other than Regular Weekly Treasury Bills, Con.
7.36%

(price 99.647)

up

to

7.38%

(price 99.465) with the

64 Yields accepted ranged Irom

6.13%

(price 99.991)

up

to

6.15%

(price 99.954) with the

at 6.14% (price 99.972).
65 Yields accepted ranged Irom

7.04%

(price 99.834)

up to 7.05%

(price 99.792) with the

at 7.06% (price 99.792).
66 Yields accepted ranged Irom

7.19%

(price 99.647)

up to 7.20%

(price 99.693) with the

63 Yields accepted ranged Irom

at 7.09% (price 99.835).
38 Yields accepted ranged from 7.60% (price 99.590) up to

7.63%

(price 99.468) with the

at 7.62% (price 99.509).
39 Yields accepted ranged from

to

6.98%

(price 99.720) with the

average

at 6.98% (price 99.720).
40 Yields accepted ranged from 7.84% (price 99.384) up to

7.85%

(price 99.316) with the

average

average
average

6.97%

(price 99.747)

up

average
average
41

at

7.85%

(price 99.316).

Yields accepted ranged from

average

at

7.98%

at

6.87%

at

" Ytelds

7.51%

(price 98.922)

up to 7.98%

(price 98.810) with the

6.85%

(price 99.816)

up

to

6.87%

(price 99.779) with the

average

to

7.51%

(price 99.959) with the

average

(price 99.779).

7.50%

(price 100.000)

up

(price 99.959).

accepted ranged Irom 7.13% (prioe 99.991) up to 7.15% (price 99.954) with the

at

7.81%

at

47 Yields

average

7.93%

7.00%

at

7.70%

at

7.09%

at

(price 99.762)

(price 100.018)

at

up

7.94%

to

(price 99.666) with the

up

to

7.00%

(price 99.734)

7.07%

(price

99.814) up to 7.09% (price 99.761) with the

(price 99.761).

8.06%

(price 99.593)

up

to

8.07%

(price 99.626) with the

(price 99.278)

up

to

8.24%

(price 98.728) with the

at 6.81% (price 99.890).
53 Yields accepted ranged Irom

7.66%

(price 99.867)

up

7.69%

at

7.96%

7.70%

(price 99.694) with the

(price 99.734).

7.95%

(price 99.696)

up to 7.97% (price 99.61 5) with the

8.25%

(price 100.000)

6.93%

(price 99.899)

at 8.26% (price 99.948).
57 Yields accepted ranged Irom
at

average

up

wHh the

to

8.26%

(price 99.948)

average
average

average
average
average

to

6.95%

(price 99.862) with the

average

(price 99.887) with the

up to 5.52%

6.61%

(price 99.963) with the

6.52%

(price 99.916)

up

6.54%

(price 99.832) with the

5.09%

(price 99.831)

up to 5.13% (price 99.756) with the

6.24%

(price 99.513)

up

(price 99.981).

at

6.54%

at

5.12%

7.89%

up to 6.93% (price 99.853) with the

average

at 6.92% (price 99.880).
so Yields accepted ranged Irom

7.94%

(price 99.567)

up to 7.96% (price 99.489) wHh the

to

at

at

at

at

at

at

84 Yields

(price 99.775).

6.40%

(price 99.861

4,99%

).

4.98%

(price 99.802)

up to 5.00%

(price 99.766) with the

6.26%

(price 99.958)

up

6.29%

(price 99.831) with the

(price 99.784).
to

628% (price 99.873).
5.54%

(price 99.891

729% (price
7.91%

5.51%

(price 99.973)

up to 5.55%

(price 99,864) with the

).

7.29%

(price 101.413)

up

to

7.30%

(price 101.344) with the

(price 101.101)

up

to

7.93%

(pries 100.757) with the

up

to

5.41%

101.413).

7.90%

(price 100.986).

at

6.75%

5.39%

(price 99.972)

accepted ranged from 5.84%.
at

5.85%

average

at

6.94%

1

(price 99.935) with the

00.042) up to 6.75% (price

1

00.000) with the

(price 100.000).
(pries 99.832)

up

to

5.86%

(price 99.814) with the

(price 99.771)

up

to

6.94%

(price 99.729) with the

(price 99.814).

85 Yields accepted ranged

average

to

(price 99.832).

at 5.40% (price 99.963).
83 Yields accepted ranged Irom 6.74% (price

(price 99.933)

from 6.93%

(price 99.729).

(price 99.667).

accepted ranged Irom 8.15%

(price

99.721) up to 8.19% (price 99.278) with the

7% (price

99.499)
62 Yields accepted ranged Irom

6.46%

up to 8.01%

(price 100.019)

average

6.90%

at

at

Yields accepted ranged Irom

at 7.89% (price 99.939).
59 Yields accepted ranged Irom

average

(price 100.227)

6.49%

82 Yields accepted ranged Irom

up

(price 99.881).

average

1

7.98%

(price 100.000).

(prioe 99.470) with the

average

7.94%

8.00%

(price 99.805) with the

(price 99.939) with the

at 8.

(price 99.584) with the

6.25%

up

at

7.56%

6.41%

(price 99.980)

average

to

to

7.88%

61 Yields

up

at 624% (price 99.513).
76 Yields accepted ranged Irom 6.38% (price 99.972) up to

58 Yields accepted ranged from

average

(price 100.000)

average

81

(price 99.656).

average
average

at

80 Yields accepted ranged from

(price 99.890).

56 Yields accepted ranged Irom

6.94%

7.50%

(price 99.792).

79 Yields accepted ranged Irom

55 Yields accepted ranged Irom

average

to

accepted ranged from 7.03% (price 99.945) up to 7.06% (price 99.890) with the

7.06%

7.53%

(price 99.919) with the

(price 100.000).

78 Yields accepted ranged Irom

average

at

at

6.03%

77 Yields accepted ranged from

(price 99.057).

up to 6.83% (price 99.853) with the

at

6.00%

(price 99.771) with the

lO

75 Yields accepted ranged Irom

(price 99.890)

54 Yields

at

6.93%

(price 99.981) with the

up

74 Yields accepted ranged from

(price 99.694).

up to 6.01%

(price 100.081)

Yields accepted ranged from

average

average

6.81%

average

average

(price 99.694) with the

up to 7.70%

(pries 100.000)

6.97%

73 Yields accepted ranged Irom

7.69%

52 Yields accepted ranged Irom

average

average

average

B.07%> (price 99.626).

8.21%

6.00%

at 6.92% (price 99.812).
69 Yields accepted ranged Irom

(price 100.000) with the

(price 100.000).

accepted ranged Irom 8.19%

51 Yields

average

7.92%

(price 99.709).

50 Yields accepted ranged from

average

(price 99.593).

72 Yields accepted ranged from

49 Yields accepted ranged Irom

average

720%

(price 99.506).

at 6.01% (price 99.981).
68 Yields accepted ranged Irom 6.91% (price 99.854) up to

71

48 Yields accepted ranged Irom

average

(price

accepted ranged Irom 6.99%
at

99.796) up to 7.81% (price 99.756) with the

7.80%

(price 99.756).

46 Yields accepted ranged from

average

at

7.37%

70 Yields accepted ranged Irom

at 7.15% (price 99.964).
45 Yralds accepted ranged (rom

average
average

average

at

67 Yields accepted ranged Irom

<3 Yields accepted ranged from

average

7.97%

(price 98.810).

<2 Yields accepted ranged Irom

average

average

(price 99.843).

Note. "All notes

and bonds, except

for foreign-targeted issues,

were sold

at

auction through

competitive and noncompetitive bidding. Foreign-targeted issues were sold at auction

6.45%

(price 99.862)

up

to

6.46%

(price 99.843) with the

through corrpetitive bidding only.

68

PUBLIC DEBT OPERATIONS

TABLE PDO-4A."Allotments by Investor Classes
For Public Marketable Securities Other than
[In

millions ot dollars]

Bills

PUBLIC DEBT OPERATIONS

TABLE PDO-4B."Allotments by
For

Bills

Investor Classes for Public Marketable Securities

Other than Regular Weekly Series
Pn millions

ol dollars]

70

INTRODUCTION:

Savings Bonds and Notes

Series EE bonds, on sale since January 1, 1980, are the only
savings bonds currently sold. Series HH bonds are issued in exchange
for Series E and EE savings bonds and savings notes. Series A-D were
sold from March 1, 1935, through April 30, 1941. SeriesE wason sale
from May 1 1941 through December 31 1 979 (through June 1980 to
payroll savers only). Series F and G were sold from May 1, 1941,
through April 30, 1952. Series H was sold from June 1, 1952, through
December 31 1 979. Series HH bonds were sold for cash from January
,

,

,

,

1980, through October31 1982. Series J arxl K were sold from May
1952, through April 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 temis and conditions for purchase and redemption and infomiation 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 thte Treasury for fiscal 1974.
1

,

1,

,

71
U.S.

SAVINGS BONDS AND NOTES

TABLE SBN-1. --Sales and Redemptions by
[In

millions ot dollars.

Source: Monthly Slalemenl

of the Public

Debt

ol Ihe

Series,

UnBed

Cumulative through Mar. 31, 1992

Stales; Market Analysis Section. Unilad Stales Savings

Bonds

Divisionl

Amount oulslandinq
Series

Sales

1

72
U.S.

TABLE
[In

SAVINGS BONDS AND NOTES

SBN-3.--Sales and Redemptions by Period, Series E, EE, H, and

millions of dollars. Source:

Monthly SlalennenI

ol Ihe Public

Debt

ot Ihe

United Stales: Market Analysis Section. United Slates Savings Bonds Division]

Redemptions
Period

Sales

Accrued
discount

HH

Sales plus
accrued

Sales

Acaued

discount

price

discount

Exchange ot
E bonds for
Hand HH bonds

Amount outstanding
Interest-

Matured

bearing debt

non-interest-

bearing debt

Series E and

Fiscal years:

1941-89
1990
1991

Calendar years:
1941-89
1990
1991
1991

256.711
7.774
9.154

258.431
8,085
9,494

Apr

815
864

May

841

June

694
769
692
688
769
735
870

-Mar

July

Aug
Sepi
Oct

Nov
Dee
1992 -Jan
Feb

Mar

1,338
1.190
1.148

1

16.279

EE

73

INTRODUCTION: Ownership of Federal
Federal securities presented in the following tables are public
debt securities such as savings bonds, bills, and notes that the
Treasury issues. The tables also detail debt issued by other Federai
agencies under special financing authorities. (See the Federal debt
(FD) tables for a more complete description of the Federal debt.)
•

Table OFS-1 presents Treasury marketable and nonmarket-

able securities and debt issued by other Federal agencies held by
Government accounts, the Federal Reserve banks, and private investors. Social Security and Federal retirement tnist fund investments
comprise much of the Government account holdings.

Securities

The Federal Reserve banks acquire Treasury securities
market as a means of executing monetary policy.

in

the

• Table OFS-2 presents the estimated amount of public debt
securities held by pnvate investors. Information is obtained from
sources such as the Federal financial institution regulatory agencies.
State, local, and foreign holdings include special issues of nonmari<etable securities to municipal entities and foreign official accounts. Thiey
also include municipal, foreign official, and pnvate holdings of mari<etable Treasury securities. (See footnotes to the table for description of
investor categories.)

74

OWNERSHIP OF FEDERAL SECURITIES

TABLE

OFS-l.--Distribution of Federal Securities by Class of Investors and
|ln

millbns ol dollars. Source: Financial

Management

Service]

Interest-bearing public debt securities

Total

End

of

llscal

or

year

month

Type of Issues

75

OWNERSHIP OF FEDERAL SECURITIES

TABLE

0FS-2.--Estimated Ownership of Public Debt Securities by Private Investors
Far values

'

In billions o( dollars.

Source: Office ol Market Finance]

Nonbank

End of

Total

Commer-

month

pfrvately

dal

held

banks

SavTotal

2

Other
secu-

ings

bonds

*

rities

Investors

Insurance

Money

Corpora-

State

Foreign

Other

companies

market
funds

tions 5

and

and

local

natk>nal ^

Investors 8

govern-

ments 6

1982- Mar
June
Sept

Dec
1983 -Mar
June
Sept

Dec
1984 -Mar
June
Sept

Dec
1985 -Mar
June
Sept

Dec
1986- Mar
June
Sept

Dec
1987 -Mar
June
Sept

Dec
1988- Mar
June
Sepi

Dec
1989- Mar
June
Sept

Dec
1990- Mar
June
SepI

Dec
1991

Mar

733.3
740.9
791.2
848.4
906.6
948.6
982.7
1,022.6
1,073.0
1,102.2
1,154.1
1,212.5
1,254.1
1,292.0
1,338.2
1,417.2
1,473.1
1,502.7

1,553.3
1,602.0
1,641.4
1,658.1
1,680.7
1,731.4

1,779.6
1,786.7
1,821.2
1,858.5
1,903.4
1.909.1
1,958.3
2,015.8
2,115.1
2.141.8
2.207.3
2,288.3

Dec

2,360.6
2,397.9
2,489.4
2,563.2

1992 -Mar

2,664.0

-

June
Sept

117.3

Inter-

76

INTRODUCTION: Market Yields
The tables and charts in this section present yields on Treasury
marketable securities, and compare long-term yields on Treasury
securities with yields

•

Table MY-1

on long-term corporate and municipal

lists

securities.

Treasury mari<et bid yields at constant maturi-

and bonds. The Treasury yield curve in the
accompanying chart, is biased on current market b)id quotations on die
most actively traded Treasury securities as of 3:30 p.m. on the last
business day of the calendar quarter.
ties for

bills,

notes,

Treasury obtains quotations from the Federal Reserve Bank of
York, which composites quotations provided by five primary
dealers. Treasury uses tfiese composite quotations to derive the yield
curve, based on semiannual interest payments and read at constant
maturity points to deveksp a consistent data series. Yields on Treasury

New

are coupon equivalent yields of bank discount rates at which
Treasury bills trade in the mart<et. The Board of Governors of the
Federal Reserve System publishes the Treasury constant maturity
data series in its weekly H.15 press release.
bills

• Table MV-2 shows average yields of long-term Treasury,
corporate, and municipal bonds. The long-lemi Treasury average yield
is the 30-year constant maturity yield. The corporate bond average
yield is developed by Treasury by calculating reoffering yields on new
long-term securities maturing in at least 20 years arra rated Aa by
Moody's Investors Sendee. The municipal bond average yield prior to
1991 was compiled by Treasury. Beginning with January 1991, the
average yield is the 'Municipal Bond Yield Average," published by
Moody's Investors Service for 20-year reoffering yields on selected
Aa-rated general obligations. See the footnotes for further explanation.

77

MARKET YIELDS

TABLE

MY-1.--Treasury Market Bid Yields at Constant Maturities:

Bills,

Notes, and Bonds*

[Source: Office of Market Finance]

Date

3- mo.

1yr.

2-yr.

3yr.

5-yr.

7-yr.

lO-yr.

30-yr.

MontHy average
1991 -Apr

5.83%

5.98%

6.24%

6.95%

7.23%

7.70%

7.92%

8.04%

821%

5.87
6.02
5.97
5.63
5.48
5.26
4.80
4.26

6.13
6.36

1992 -Jan

3.91

4.01

Feb
Mar

3.95
4.14

4.08
4.33

5.69

7.12
7.39
7.38
6.80
6.50
6.23
5.90
5.39
5.40
5.72
6.18

7.70
7.94

5.78
5.57
5,33
4.89
4.38
4.15
4.29
4.63

6.78
6.96
6.92
6.43
6.18

Nov
Dec

5.63
5.75
5.75
5.50
5.37
5.14
4.69
4.18

7.43
7.14
6.87
6.62
6.19
6.24
6.58
6.95

7.94
8.17
8.15
7.74
7.48
7.25
7.06
6.68
6.70
6.96
7.26

8.07
8.28
8,27
7.90
7.65
7,53
7.42
7.09
7.03
7.34
7.54

8.27
8,47
8,45
8.14
7.95
7.93
7.92
7.70
7.58
7.85
7.97

5.68

5,83
5,94
5,95
5,93
5,60
5,34
5.03
4,57
4,00
4.07
4,14
4,32

6.06
6,16
6,32
6.19
5,72
5.42
5,10
4,69
4.12
4.23
4.35
4.54

6,80
6,68
6,90

7.15
7.10
7.33

7.63
7.69
7.90
7.77
7.34
6.92
6.74
6.48
5,93
6,44
6.58
6.94

7.88
7.92
8.14
8.03
7.67
7.29
7.15
6.99
6.38
6.92
6.95
7,25

8,02
8,06
8,24
8,20
7.82
7.47
7.47
7.38

8,20
8,26
8,42
8,36
8,06
7.82

6.71

7.41

7.31

7.77
7.80
7.96

May
June
July

Aug
Sept
Oct

End

Apr

.

May.,
June

5.71
5,71

July

5,70
5,49
5,26
4,96
4,47

,

.

Aug.
Sept.

Oct

.

Nov.
Dec.
-

5.91

5.56
5,03
4.96
5.21

7.91

month

of
-

6.31

396

Jan
Feb.,
Mar.,

3.94
4.03
4,15

.

Rates are from

Ifie

Treasury yiekJ curve.

6,81

7.21

6.36
5.99
5,70
5,38
4,77

6.68
6.28
6.06
5.76

5,11

565

5,27
5,60

5.75
6.17

5.11

7.27
7,54

7.91

7.94

78

MARKET YIELDS

CHART MY

-

A.

--

Yields of Treasury Securities,
Based on closing

bid quotations

March

31, 1992

79

MARKET YIELDS

TABLE

MY-2.--Average Yields of Long-Term Treasury, Corporate, and Municipal Bonds
[Source: Otiice o( Market Finance]

Treasury
Period

30-yr.

bonds

MONTHLY SERIES-AVERAGES OF DAILY OR WEEKLY SERIES (PERCENT)
1981
12.14

Jan

Feb
Mar
Apr

May
June
July

Aug
Sept
Oct

Nov
Dec

1982
Jan

Feb
Mar
Apr

May
June
July

Aug
Sept
Oct

Nov
Dec

1983
Jan

Feb
Mar
Apr

May
June
July

Aug
Sept
Oct

Nov
Dec

1984
Jan

Feb
Mar
Apr

May
June
July

Aug
Sept
Oct

Nov
Dec

1985
Jan

Feb
Mar
Apr

May
June
July

Aug
Sept
Oct

Nov
Dec

1986
Jan

Feb
Mar
Apr

May
June
July

Aug
Sept
Oct

Nov
Dec

See footnotes

at

end

of table.

New Aa

New Aa

corporate

municipal

bonds

bonds

1

2

80

MARKET YIELDS

Table MY-2.--Average Yields of Long-Term Treasury, Corporate, and Municipal Bonds, Con.
Treasury

81

MARKET YIELDS

82

INTRODUCTION:

U.S. Currency and Coin Outstanding and in Circulation

The U.S. Currency and Coin Outstanding and in Circulation
(USCC) statement informs the public of the total face value of currency
and coin used as a medium of exchange that is in circulation at the
end of a given accounting month. The statement defines the total
amount of currency and coin outstanding and the portion deemed to
be in circulation, and includes some old and current rare issues that
do not circulate, or that may do so to a limited extent. Treasury includes
them in the statement because the issues were originally intended for
general dtculation.

The USCC statement provides a description of the various issues
paper money. It also gives an estimated average of currency arKi
coin held by each individual, using estimates of population from the
Bureau of the Census. USCC imormation fias been published by
Treasury since 1888, and was published separately until 1983, when
of

was incorporated into the Treasury Bulletin. The USCC comes from
monthly reports compiled by Treasury offices, various U.S. Mint offices, the Federal Reserve tanks, ancf the Federal Reserve Board.
it

83
U.S.

TABLE

CURRENCY AND COIN OUTSTANDING AND

USCC-l.--Amounts Outstanding and
[Source: Financial

ManaQemenI

IN

CIRCULATION

in Circulation,

Service]

Mar.

31, 1992

84
U.S.

TABLE

CURRENCY AND COIN OUTSTANDING AND

USCC-2.--Amounts Outstanding and
[Source: Financial

CURRENCY

IN

CIRCULATION

in Circulation,

Service]

CIRCULATION BY DENOMINATION
Total

Denomination

Management

IN

Mar.

31, 1992

85

INTRODUCTION:

Federal Agencies' Financial Reports

Section 114 of the Budget and Accounting Procedures Act of
1950(31 U.S.C. 3513a) requires eacli executive agency to provide the
Secretary of the Treasury with reports and informatjon on the agency's
flnanda) condition and operations. Although these provisions do not
apply to the Federal Government's legislative and judicial branches,
they are encouraged to submit reports so that the Secretary of the
Treasury can prepare comprehensive reports on all of the rinandal
activities of the Government.

Federal agencies submit four financial reports and three supporting reports. The financial reports include: Report on Financial Position
(SF 220), Report on Operations (SF 221), Report on Cash Rovir (SF
222), and Report on Reconciliation (SF 223V The supportinq reports
are: Direct arid 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). Agencies submit SF 220-8 Quarterly, and
annually for publication in the Treasury Bulletin. Meanwhile, all agencies submit SF 220-9 annually, while some report quarterly on a
selected basis.

the

The Treasury Rnancial Manual (I TFM 2-4100) sets criteria for
submission of annual and quarterly reports in accordance with tfie

Reporting Entities Listing (Bulletin No. 91 -09). There are reports for six
fund types: revolving funds, trust revolving funds, 15 major trust funds,
all other trust funds, all other activity combined, arKj consolidated

reports of each organizational unit. Financial transactions supportinq
reports are accounted for on the accrual basis, although the SF
221 can be submitted on a cash tasis under certain circumstances.
tfie

The Office of Management and Budget (0MB) Circular No. A-1 27
requires agencies to prepare reports from a budgeting and accounting
system that contains an integrated data base, which is part of the
agency's integrated financial management system. Reports are supposed to incTude all assets, liabilities, ana equities relating to all
programs and activities under control of the reporting agency. (Treasury reports assets of disbursing officers.)
Reports should also include transfer appropriation accounts from
other agencies, foreign currencies, operations conducted in the territories or overseas, and any monetary assets or property received,
spent, or otherwise accounted for by the reporting agency. Amounts
are reported to the dollar.
Information from

SF 220-8

is

presented

and guaranteed loans
Federal Credit Program to support credit
reflects the direct

in tat)le FA-1, vi^ich
to the public through the

activities. Credit

program

levels are controlled by authorizing legislation and appropriation acts.
SF 220-8 also provides the Federal Reserve Board information to
monitor the flow of funds. The accompanying chart depicts direct and
guaranteed loans for the first quarter of fiscal 1992.

86

FEDERAL AGENCIES FINANCIAL REPORTS

TABLE

FAFR-1.--Direct and Guaranteed Loans Dec. 31, 1991
[In

thousands

of dollars

Source SF 220-8, compiled by Financial Management Service]

Direct loans or credit

Agency and program

Maximum

Amount

Maximum

outstanding

authority

outstanding

authority

U.S. dollar loans
to the President:

9,326,312

Guaranty reserve fund

Housing and other

credit

guaranty programs

Alliance for Progress loan fund

Other programs

Overseas Private Investment Corporation
Total

Department

Funds appropriated

to the President

of Agriculture:

Commodity loans
Rural electrification and telephone revolving fund
Rural economic development
Rural Telephone

Bank

Rural communication development fund
Agricultural credit insurance loans

Rural development insurance loans
Rural housing insurance loans

development loans

Self-help housing

Rural development loans

Other Farmers
Total

Department

of

Home

Administration loans

Department

of Agriculture

Commerce

Economic development loans
Coastal energy impact fund
Federal ship financing fund

Other loans
Total Department of

Department

of

Commerce

Defense:

Army loans
Total Department 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 Services

or insurance

Amount

I— Wholly owned Government enterprises

Funds appropnated

Guarantees

87

FEDERAL AGENCIES FINANCIAL REPORTS

TABLE FAFR-1.--Direct and Guaranteed Loans, Dec. 31,
Direct loans or credit

Agency and program

of

Housing

Amount

Maximum

outstanding

authority

outstanding

authority

Housing and Urban Development,

for the elderly or

handicapped

Low-rent public housing programs

Other housing loans

Guarantees

of

mortgage-backed securities

Urban renewal programs

Community disposal operations fund
Community planning and development loans
Nonprofit sponsor assistance
Flexible subsidy fund

Total

Department

of

Housing and Urban Development

or insurance

Maximum

U.S. dollar loans

Federal Housing Administration tund

Guarantees

Amount

I— Wholly owned Government enterprises

Department

1991, Con.

2,258.936

.

88

FEDERAL AGENCIES FINANCIAL REPORTS

TABLE

FAFR-1.--Direct and Guaranteed Loans, Dec. 31, 1991, Con.
Direct loans or credit

Agency and program

Amount

Maximum

outstanding

authority

outstanding

I— Wholly owned Government enterprises
U.S. dollar loans
Environmental Protection Agency:

Loans
Total Environmental Protection

Agency

110,804

.

General Services Administration
Federal buildings fund

Other funds
Total General Services Administration

,

Small Business Administration:

Business loans
Disaster loan fund

Other loans
Total Small Business Administration

.

.

Other independent agencies

Loans

D C Government

to

Export-Import Bank ot the United States

...

FSLIC resolution lund
Federal Emergency

Management Agency

National Credit Union Administration

Tennessee Valley

Authority

.

.

.

Total Other independent agencies
Total Part

I

owned Government

II— Wholly

Loans repayable

in

enterprises

foreign currencies

Loans repayable in foreign currencies
Agency lor International Development
United States Information Agency
Total

Pan

Ill— Privately

....

II

owned Government-sponsored

enterprises
Privately

owned Government-sponsored

enterprises

Student Loan Marketing Association
Federal National Mortgage Association

Banks

Farm

for

cooperatives

credit

banks

Federal Housing Finance Board
Federal

Home Loan Mortgage

Total Part

Grand

III

total, all

parts

Corporation

:

Guarantees or insurance

Amount

Maximum
authority

FEDERAL AGENCIES' FINANCIAL REPORTS

CHART FA-A."
Direct and Guaranteed Loans, Dec. 31, 1991
(Wholly

owned

Government enterprises-U.S.

U.S.

Agriculture

58

DIRECT LOANS

Education

7%
Eximbank

5%

CUARANTEED LOANS

dollar loans)

INTERNATIONAL
STATISTICS

93

INTRODUCTION:
The

tables

in this

ment's reserve assets,

section provide statistics
liabilities to

foreigners,

International Financial Statistics

on the U.S. Governand its international

financiaJ position.

•

Table IFS-1 shows U.S. reserve assets, including gold stock
rights held in ttie Special Drawing account in the

and special drawing

International Monetary Fund (IMF). The table also shows U.S. reserve
holdings and holdings of convertible foreign currencies in the IMF.

•

Table IFS-2 contains

institutions,

used

in

and selected

statistics

on

liabilities to

foreign

liabilities to all oti-ier foreigiiers,

the United States balance of

payments

statistics.

official

which are

IFS-3 shows nonmar)<etable bonds and notes that Treasofficial institutions and oUier residents of foreign
countries. The figures are in dollars or dollar equivalents.
• Tatsle

ury issues to

• Table IFS-4 presents the general foreign exchange value of the
U.S. dollar. Values presented are broader than those provided tjy
single exchange rate levels and do not daim to represent a guide to
measuring the impact of exchange rate levels on IJnited States international transactions. Indices are computed as geometric averages of
individual currency levels with weights derived from Uie share of each
country's trade with ttie United States during Bie years 1982 and 1983.

94

INTERNATIONAL FINANCIAL STATISTICS

TABLE IFS-l.-U.S. Reserve Assets
[In

End of calendar
year or month

millions of dollars]

95

INTERNATIONAL FINANCIAL STATISTICS

TABLE

IFS-2.--SeIected U.S. Liabilities to Foreigners
[In

millions ot dollars]
Liabililies to loreign

counlries
Liabilities to

Otttcial institutions

Liabilities

other foreigners

'

to

nonmone-

tary in-

Other

Marlvet-

Endol
calendar
year or

month

1987
1988
1989
1990

Total

(1)

(2)

873,446

1991 -Mar

Apr

May
June
July

Aug
Sepi

Oa
Nov
Dec
1992-Jan
Feb
Mar

1

Total

Includes

Bank

Labili-

able U.S.

NonmarKet-

readily

Liabili-

t©s

Treasury

able U.S.

ties
Liabili-

reported
by banl^s
in U.S.

bonds
and

Treasury

marketable

bonds and

liabili-

ties to

notes 2

nrtes 3

ties*

ban lis

(3)

(4)

1.011,241
1.111,071
1,158,854

254,824
297.446
303,758
337.310

120,667
135.241
113,481
119,367

125,805
152,429
179,269
202,487

1.147,511
1,133,211
1,143,272
1,128,884
1,127.144
1,135.618
1,139,783
1,160,904
1.165.275
1.178.229
1.185.864
1.192.161
1.201.209

340.200
333,654
340,642
335,582
338,879
345,111
339,149
346,943
353,816
352.265
364,277
367,186
373.145

126.789
120,831
125.706
126,382
130.179
136.648
129,519
135.933
135.640
131.053
134,129
137,220
145.999

197,982
197,609
199.630
193.798
193.078
192.620
193,450
193,962
201.156
203.677
212,364
212,171
208.757

for International

(5)

300
523
568
4,491

4,580
4,611
4,641

4.672
4.703
4,734
4,764
4,796
4.827
4,868
4,892
4,923
4.956

by applying reported transactions lo tjenchmark data.
3 Beginning in March 1988. includes current value of zero-coupon. 20-year maturity Treas-

bond issue

to the

Government

of

5

(7)

Total
(8)

reported

Marketable U.S.
Treasury

by banks

bonds and

in

U.S.

al

and

re-

gional organizations 7

notes 2 6

(9)

(10)

(11)

8.052
9,253
10,440
10,965

468.096
534.403
582.958
611.088

140,214
169,658
210,996
195,868

79,463
87,351
103,228
93,625

60.751
82,307
107.768
102,243

10,312
9,734
13,359
14,588

10,849
10,604
10,665

591,014
580,646
570.895
565.546
558.580
561,060
574.840
678.859
584,422
694.821
690,209
591,231
600.798

201,387
203,915
217,258
214,047
215.331
214,000
211,208
210.426
210,211
213,269
211,799
213,828
207.152

94,870
95,680
96,015
92,244
92.414
89,903
90,760

106,517
108,235
121.243
121.803
122.917
124,097
120.448
119.765
117.921
119,172
120,351
124,099
117.964

14.910
14,996
14.477
13.709
14.354
15,447
14.586
15,676
16.826
17,874
19,579
19,916
20.114

10,731

10,919
11,109
11,415
11,252
12,193
12,676
12,892
12,872
13.433

90.661

92,290
94,097
91,448
89,729
89.188

marketable U.S. Government bonds and noles held by loreign banks.
Bank for Reconslruction and Development, the Inter-American

7 Principally the International

Devetopment Bank, and the Asian Development Bank.

Mexico. Beginning March 1990, also includes current

value of zero-coupon, 30-year maturity Treasury bond issue to the

Govemmenl

of

Mexico.

Beginning Decemt>er 1990, also includes current value of zero-coupon, 30-year maturity
Treasury bond issue lo the Republic of Venezuela. Also see footnotes 1 and 2. table IFS-3.
Includes debt securities of U.S. tjovemment corporations, federally sponsored agencies,
and private corporations.
^ Includes liabilities payable in dollars to foreign banks and liabilities payable in loreign
currencies to foreign banks and to "other foreigners."
*

(6)

6 Includes

Settlements.

2 Derived

ury

ternation-

based on Treasury Department data and on data reported to the Treasand brokers in the United Slates.
Data correspond generally to statistics follov^'ing in this section and in the "Capital Movements" section. Table excludes International Monetary Fund "holdings of dollars" and holdings ol U.S. Treasury letters ol credit and nonnegotiable noninteresl-bearing special U.S.
noles hekj by other international and regional organizations.
Note.-Table

is

ury Department by banks, other depository institutions,

96

INTERNATIONAL FINANCIAL STATISTICS

TABLE

IFS-3.--NonmarketabIe U.S. Treasury Bonds and Notes Issued

To Official

Institutions

and Other Residents of Foreign Countries
[In

millkjns ot dollars Of dollar equivalenl)

97

INTERNATIONAL FINANCIAL STATISTICS

TABLE

IFS-4.--Trade- Weighted Index of Foreign Currency Value of the Dollar
[Source: Office o1 Foreign

Exchange OpefalJons-lnternational

Affairs]

Date

Index of industrial
country currencies

'

Annual average
(1»80= 100)2
1982
1983
1984
1985
1986
1987
1988
1989
1990

119.7
125.2
133.5
139.2
119.9
107.5
100.4
102.8
98.8
98.0

1991

End

of period

(Dec. 1980 = 100)

1982
1983
1984
1985
1986
1987
1988
1989
1990
1991

1991

-

May

119.5
127.9
140.8
127.8
1

14.4

97.8
98.4

1000

944
93.7

99.2
101.0
99.8
99.4
97.0
96.8
96.2
93.7
96.0
97.3
98.4
98.6

,

June

Mi
Aug
Sepi
Oct

Nov
Dec
1992- Jan

Feb
Mar
Apr

Each index covers (a) 22 currencies of counlnes represented in the Organization for
Economk: Cooperation and Development (OECD): Australia. Austria. Belgium-Luxembourg.
Canada. Denmark, Finland. France. Germany. Greece, Iceland. Ireland, Italy. Japan, the
1

Netherlands.

New

Zealand, Norway. Portugal, Spain, Sv»eden, Switzerland, Turkey, and the

United Kingdom; and

(b)

currencies ol 4 major trading economies outside the

OECD: Hong

Kong. Korea. Singapore, and Taiwan. Exchange rates are drawn from Ihe Inlernalonal
Monetary Fund's "International Financial Statistics" when available.
average annua! rates as reported in "International Financial Statistics."

2 Index includes

Note- These indices are presented

to provide

measures

of the

general foreign 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

rale levels

on U.S. internatbnal transactions. The indtees are computed as geometric averages
individual currency levels with weights derived

the United States during 1982-83.

from the share

of

each country's trade

of

with

98

INTRODUCTION:
Treasury collects information about the transference of financial
assets and other portfolio capital movements between the United
States and foreigners, aixJ has since 1935. Commercial banks and
other depository institutions, bank holding companies, securities brokers ana dealers, and nontsanking enterprises in the United States file
capital movement reports with district Federal Reserve thanks.

Forms and instructions are developed with the cooperation of
other Government agencies and the Federal Reserve System, and in
consultations with representatives of tanks, securities firms, and
nonbanking enterprises. Copies of the reporting forms and instructions may be obtained from the Office of Data Management, Office of
the Assistant Secretary for Economic Policy, Department of the Treasury, Washington, D.C., 20220, or from district Federal Reserve t»ank3.
In general, information is reported opposite the country or qeographical area where the foreigner is located, as shown on records of
reporting institutions. However, information may not always reflect tfie
ultimate ownership of assets. Reporting institutions are not required to
go beyond addresses shown on tneir records, and so may not be aware
of the actual country of domicile of the ultimate beneficiary.

arising from the deposits of dollars vwth
foreign banks appear as liat)ilities to foreign tanks, although the liability
of thie foreign bank receiving the deposit may be to foreign offidal
institutions or to residents of another country.

United States

liabilities

Capital

Movements

The data in these tables do not cover all types of reported capital
movements t)etween tfie United States ana otiier countries. The
prindpal exclusions are the intercompany capital transactions of nonbanking business enterprises in the United States wittn their own
branches and subsidiaries abroad {own foreign offices) or with their
foreign parent companies, and capital ti^nsactions of the U.S. Government. Consoliaated data on all types of intemational capital
transactions are published by ttie Department of Commerce in its
regular reports on the United States balance of payments.
• Section t presents liabilities to foreigners reported by U.S.
banks and otiier depository institijtions, as well as brokers and dealers.
Dollar liabilities are reported monttily; tiiose denominated in foreign
currendes are reported quarteriy. Respondents report certain of tiieir
own liat3Jlities and all of their custody liabilities to foreigners.
• Section II presents daims on foreignere also reported by U.S.
banks and otiier depository institutions, brokers, and dealers. Data on
bank daims held for tiieir own account are collected monthly. Information on daims held for their domestic customers, as well as foreign
cunency daims, is collected on a quarteriy basis only. Maturity data

are reported according to time remaining to maturity. Reporting also
covers certain items held by brokers and dealers in tne United States.
III
are supplementary statistics on U.S. banks'
and daims on, foreigners. Supplementary data on bank
kans and credits to nonbank foreigners combine selected information
from tile TIC reports with data from tfie montiily Federal Reserve 2502
reports submitted for major foreign branches of U.S. tanks. Otiier
supplementary data on U.S. bank dollar liabilities to, and dollar daims
on, countries not regularty reported separately appear in the June and

•

In

section

liabilities to,

Transactions with t)ranches or agencies of foreign official instituwherever k)cated, are reporled opposite the country that has
sovereignty over the institutions. Transactions with international and
regional organizations are not reported opposite any country, but are
accounted for in regional groupings of such organizations. The only
exception is information prtaining to the Bank for International Settlements, which is reported opposite "OUier Europe.'
tions,

Banks and other depository

institutions, taank holding

companies,

Intemational Banking Facilities (IBFs), securities brokers and dealers,
and nonbanking enterprises in the United States must file reports.
These enterprises include the branches, agencies, subsidiaries, and
other affiliates in the United States of foreign banking and nonbanking
firms. Those with liatiilities, daims, or securities tiBnsactions below
specified exemption levels are exempt from reporting.

Banks and other depository

institutior«,

and some brokers and

dealers, file monthly reports covering tiieir dollar liabilities to, and dollar
claims on, foreigners in a number of countries. Twice a year, June 30
and December 31 they also report the same liabilities and claims items
to foreigners in countries not shown separately on the monthly reports.
Quarterly reports are filed for liabilities and claims denominated in
foreign currencies in relation to foreigners. The exemption level applicable to ttiese banking reports is $15 million.
,

Banks and other depository institutions, securities brokers and
dealers, and other enterprises report monthly ttieir transactions with
foreigners in long-term securities. They must report securities transactions wiUi foreigners if their aggregate purchases or ttieir aggregate
sales amount to at least $2 million during the covered monUi.
Exportere, importers, industrial and commercial concerns, financial institutions (otner than banks, otiier depository institijtions, and
brokers), and other nonbanking enterprises must file reports quarteriy
if liabilities to, or daims on, unaffiliated foreigners amount to $1
million
or more during the covered quarter.

Nonbanking enterprises also report each month their U.S.
denominated deposit and certificates of deposit daims of $10
or more on banks abroad.

dollar-

million

December issues

or the

Treasury

Bulletin.

• Section IV shows tine liabilities to, and daims on, unaffiliated
foreigners by exporters, importers, industrial and commercial concerns, financial institutions (other than banks, other depository
institutions, and brokers), and otiier nonbanking enterprises in Hie
United States. Information does not include accounts of nonbanking
enterprises in tiie United States with their own branches and subsidiaries abroad or witii theirforeign parent companies. These are reported
by business enterprises to the Departinent of Commerce on its direct
investinent forms. Data exclude daims on foreigners held through
banks in the United States.

• Section V contains information on tiansactions in all types of
long-term domestic and foreign securities wiUi foreigners reported by
baiTKs, brokers, and otiier entities in tiie United States. The data cover
tiansactions executed in the United States for tiie accounts of foreigners, and transactions executed abroad for tiie accounts of reporting
institijtions and their domestic customers. This includes tiansactions
in newly issued securities as well as transactions in, and redemptions
of, outstanding issues. Also, some transactions dassified as direct
investinents in tiie balance of payments accounts may be included.
However, tiie data do not include nonmari<etable Treasury bonds and
notes shown in table IFS-3.
In the case of outstanding securities, the geographical breakdown
of the transactions data does not necessarily reflect tiie ultimate
owners of or tiie original issuers of tiie securities. This is because Uie
patii of a security is not tiBcked prior to its being purchased from, or
after it is sold to, a foreigner in a TIC reportable transaction. That is,
before it enters and after it departs Uie reporting system, ownership of
a security may be transferred between foreigners of different countries.

tiansfere may occur any number of times and are concealed
Uie net figures for U.S. tiansactions opposite individual countries. Hence, the geographical breakdown shows only the country of
domidle of the foreign buyers and sellers of securities in a particular
round of transactions.

Such

among

CAPITAL MOVEMENTS

SECTION

I.-Liabilities to Foreigners

Reported by Banks

99

in the

TABLE CM-I-l.--Total Liabilities by Type of Holder

United States

CAPITAL MOVEMENTS

100

TABLE CM-I-2.--TotaI

Liabilities by Type, Payable in Dollars
Part A.~Foreign Countries
(In millions of dollars)

'

Banks

Official institutions

us.
End

Total
foreign

of

calendar
year
or

Treasury
Deposits

coun-

month

tries

Demand

Time

us.

U.S.

other

&

Ua-

certif-

bili-

icates

ties'

bills

Other Foreigners

Treasury
Deposits

Demand

Time

Other

Treasury

&

lia-

To own

certif-

btii'

foreign

bills

icates

ties

^

Deposfts

offices

Den^nd

Time

bills

&

Other
lia-

certif-

blli-

icates

Ues'

JBL

JZL

JBL

J9L

J10L

JUL.

_t12L

(13)

1887

612.888

1.757

12.843

88,829

17.238

10.898

79.717

9.134

65373

247,635

9,604

54,277

3,515

1988

682,115

1.917

9.767

103,722

19,836

9.948

80.189

7.602

72,646

289,138

9.928

61.025

3,675

12,723

1989

731.984

2.196

10.495

76,985

23,805

10,279

90,557

9,367

86,208

318,864

9,460

66,801

4,551

22,415

753,797

1,940

14,405

79,424

23,597

10,053

88,541

10,669

109,874

321,667

9,710

64,086

6,339

13,490

748,629

1,702

14,460

83,990

26,637

10,054

83,635

10,674

107,452

315,154

8,500

63,839

6,354

16,176

733,113

1,633

14,264

81,087

23847

9,076

78,739

10,030

106,243

312,514

8,970

62,405

5919

18,387

728,572

1,448

15,190

82,421

26,647

8,677

71,598

8,712

103,383

314,481

8,718

62,925

6,224

18,149

725,042

1,542

16,323

84,526

24.992

8,589

68,987

8,664

101,401

318,774

8,645

62,026

6,399

15,174

_gL

1990

1991

r

-

Mar.

r

Apr.

r

May

r

June

r

_eL

!D

(5)

12,068

July

r

722.042

1,396

15.706

86.071

27,006

8,424

69,516

7,970

97,470

316,069

8,066

61,779

6,367

16,202

Aug.

r

728,480

1,683

15,465

88,596

30,904

8,254

70,595

8.242

97,383

317,455

8,460

59,526

7,218

14,699

732.214

1.645

13.951

90.394

23.529

8,990

74,589

8.161

100,214

319,981

9,218

59,364

7,432

14,746

742,548

1,307

14.544

94.428

25654

8.164

78181

8363

101,126

320,120

8,138

59,478

8,243

14,802

Nov

749.447

1.621

13.145

92.855

28,019

11,396

80,199

7.855

98,065

324,002

8,589

68,578

8.698

16,425

Deo

745,256

2,642

16,474

92.692

19,245

8,630

82,936

7,471

93,246

327,823

9004

57,670

8,841

18,582

1992- Jan

741.071

1.480

16.307

92.711

23.631

8.807

73,988

7,713

94,111

330,875

8,983

55,839

8,248

18,378

Feb. p

743,465

1,297

14,655

94,731

26,537

8.369

74,560

7,733

92,726

333,128

9,205

54,588

8,391

17,545

Mar. p

761.270

1.342

17.667

102.143

24,857

8,543

74,473

8,344

96,272

338,451

9,257

54,386

8,170

17,375

Sept.
Oct.

r
r

PART B."Nonmonetary International and Regional Organizations
{In millions of dollars)

End

of

calendar
year or month

Demand
Total

deposfts

(1)

(2)

CAPITAL MOVEMENTS

101

TABLE CM-I-3.--Total LiabiUties by Country
(Poflition at

end

ol period in millions o< dollafB)

Calendar yeai

Countiy

1992

1980

r

Nov.

Jan.

Feb. p

Mar, p

Europe:
Austria

BelgiunvLuxenibourg
Bulgaria

Czechoslovakia
Denmailt

1.259

1.358

1,404

1,637

1.450

1,298

1,287

1,487

11,467

12.926

15,459

17.512

16,199

16,210

18,018

18,152

144

67

62

146

199

102

132

175

52

83

68

258

287

229

280

259

2.364

1.589

1,563

1,256

1,075

1,129

1,135

1,030

Finland

292

674

661

1,126

1,409

961

691

1,258

France

27.318

29.680

34,594

34,659

29,189

126

113

n.a

8,500

11.947

12,389

Greece

676

1.031

1,462

898

Hungary

157

227

337

440

Ireland

974

1.070

1,000

843

Qerman Oemocfatic Republic
Gefmany

35,140

32.576

29,781

a.

n.a.

n.a.

n.a.

n.a.

12,648

14,548

13.781

15,163

15,459

787

695

917

1,080

455

416

390

366

898

641

727

1,065

n

16.924

18,748

21,335

15,893

15,835

13.092

11,848

12,187

Netherlands

5671

7,302

6,742

7,552

8,419

9.223

8,580

10,512

Norway

1.571

2,401

2.361

1,502

1,998

2.054

1,530

1,418

73

66

1.018

2,492

2,386

2.537

3,258

2,841

Portugal

907

2.462

3.007

2,244

2,199

1.129

2,555

2,086

Romania

110

76

60

163

166

138

121

75

5556

4.490

7.772

11,349

11,527

9.507

10,789

13,623

Italy

Poland

Spain

Sweden
Switzerland
Turi<ey

United Kingdom

1.308

1,498

1.840

1.178

2,406

2.071

2,728

2,290

36.284

36,226

39.643

39.568

41,222

39.653

38,713

41,097

1.078

1,858

1.265

1.930

1,761

1.639

1,840

1,761

120.902

112,387

125.007

111.974

113,952

116.085

115,865

117,120

U.S.S.R

138

477

119

236

251

171

248

178

YugosJavia

529

1,474

928

544

623

484

530

505

8,840

13,516

12.238

15.885

9,104

13,992

14,160

15,252

Other Europe

Total

Europe

252,219

Canada

Latin

America and Caribbean:

Argentina

7.951

7,410

7.498

7,628

7,940

8,081

8,060

Bahamas

87.948

100,576

107.751

101,147

100,848

101,703

100,228

Bermuda

2.686

2,979

3.076

3,535

3,379

3,858

3,679

Brazil

6.363

6,373

6.907

5,906

6066

5,909

5,884

116.796

142,499

154.335

168,714

166,881

169,502

171,373

British

West

Indies

Chile

2.073

3.299

3.226

3,495

3,398

3,436

3,522

Colombia

4.383

4.670

4.509

4,834

4,705

4,670

4,756

10

10

11

12

2

6

5

Ecuador

1.386

1.408

1.392

1,262

1,255

1,271

1,240

Guatemala

1.201

1.320

1.556

1,608

1,608

1,568

1,563

269

209

257

201

231

234

227

15.316

15.487

17.108

20,948

20,900

21,315

21,262

Cuba

Jamaica
Mexico
Netherlands Antilles

7.485

7,615

8.652

6,978

6,587

7,277

7,236

Panama

4.570

4.541

4.647

4,620

4,773

4,427

4,482

1.688

2.006

1.310

1,261

1,277

1,261

1,248

297

388

393

295

390

301

301

Uruguay

1.915

2.316

2,573

2,444

2,183

2,385

2,230

Venezuela

9.631

9.582

12,579

12,758

14,067

14,406

13,310

Peru
Trinidad

and Tobago

Other Latin America

and Caribbean
America and
Caribbean

Total Latin

Sm

footnotes at end of table.

CAPITAL MOVEMENTS

102

TABLE CM-I-3.--Total Liabilities by Country, Con.
(PoeMion at and of period

in millions o<

doHarel

1968

Countiy

1989

1992

1991

Calendar year

1990

r

Nov.

Dee.

Jan.

Feb. p

Mar, p

tela:

China.

Mainland

1,895

1,788

2,43S

2,783

2,625

2,738

2.607

2.677

Taiwan

26,087

10,625

11,327

11,806

11,779

11,235

10.872

10.880

Hong Kong

14,417

14,503

15,066

15,820

16,742

17,530

17.235

17.084

703

781

1,237

2,615

2,421

2,300

2.359

2.031

Indonesia

1,183

1,285

1,245

1,416

1,465

1.039

1.278

1,518

Israel

1,480

1,247

2,771

2,118

2,024

2,202

2.146

2,545

Japan

118,272

111,724

83,760

62,249

71,829

70,886

68.621

74,383

Korea

2,548

3,226

2,299

2,558

2,541

2,445

2.757

2,830

Lebanon

331

489

402

441

412

388

388

361

Malaysia

778

1,749

1,445

1,214

1,341

1.580

1,450

1,303

India

Pakistan
Philippines

Singapore
Syria

Thailand
Oil-exporting countries

^
.

.

.

.

.

Other Asia

Total Asia

852

1,169

746

804

984

857

836

1.006

1,172

1,775

1,591

2,145

2,456

2.263

2,469

2.645

10,588

13,041

13,578

11,698

11,913

11.052

10,585

9.834

68

120

152

124

177

185

182

174

1,240

2,096

1,445

3,584

2,266

2,947

3,238

3.344

12,172

13,588

16,913

16,567

15,888

16,038

18,547

18.417

1,318

1,286

1,435

1,471

1,606

1,486

1,550

1.607

195,104

189,504

157,846

139,513

148,469

147,182

148,131

153,748

1,337

Africa:

Egypt

914

688

1.451

1,060

1,621

1,620

1,632

Ghana

125

120

128

148

145

174

149

130

Uberia

431

518

482

471

455

427

448

422

Morocco
South Africa
Zaire
Oii-exporting countries ^

.

.

.

Other Africa

Total Africa

.

68

78

105

94

80

87

83

91

449

217

228

173

228

201

188

191

85

82

53

32

31

28

30

35

1.054

1,158

1.125

1,283

1,085

1,217

1,227

1,441

984

1,024

1.111

4,060

3,896

1,226

1,201

1,322

1,185

1,273

4,498

4,856

5,076

4,953

4.920

8,484

Other countries:
5,372

Australia
All

883

other

Total other countries

Total foreign countries

International

and

regional:

2,547

4,072

4,512

6.265

6.643

7.631

58

151

61

288

296

279

281

641

703

1.122

1,438

1.260

1,501

1,579

Asian regional

18

48

132

447

427

310

219

African regional

58

62

282

439

582

444

323

10

5

5,047

6,113

International

European regional
Latin

American regional

Middle East regior^

Total international

Qrand

total

1

and regional

3,323

1

9,218

10,166

10.886

CAPITAL MOVEMENTS

103

TABLE CM-I-4.-TotaI Liabilities by Type and Country, Mar. 31, 1992, Preliminary
(Poartion in

mitona

o( dollaral

Total liabilitiw

Liabilitiea

To

payable

in

dollara

foreign otfidaJ

Institutions

and
banlo

Liabilities to

unaffiliated foreign

all

other foreigners

Uabil-

Payable

Totals

in

Country

Payable

foreign

in

cunen-

Total

dollars

(n

W

cies

'

(3)

Banks'

own

lia-

Custody
ities

Demand

(4)

(5)

(6)

itiesto

Short-

banks'

term
Treasury

Treasury
oblig^

Deposits

liabil-

bilrties

Short-

lerniUS

Trme

tions

(7)

(8)

US

Other

own

liabil-

foreign

Jies

offices

Demand

Time '

(8)

(10)

(11)

(12)

Deposits

obligit:

tions

(13)

Europe;
Austria

1.487

1.230

257

1.094

136

SO

559

86

306

180

19

22

1

Belgium

19.152

16.290

2.862

13.551

2,739

175

5.900

1.460

2.618

4.687

102

171

117

Bulgaria

176

175

-

108

67

39

5

66

62

1

2

259

259

-

113

146

36

19

145

56

1

Denmark

1.030

892

138

740

152

100

240

88

155

Finland

1.258

1,190

68

959

231

19

-

France

29.189

25.857

3.332

16,497

9,360

307

8,749

Czechoslovakia.

.

,

German

Denxx^ratic
figpyyjg

Germany
Greece
Hungary
Ireland

na

na

6,192

-

2

123

15

3

196

770

9

13

1

3,913

5.727

125

540

57

52

na

na.

n.a.

n.a.

n.a.

na.

n.a.

n.a.

n.a.

n.a.

n.a.

15,459

9,531

5,928

7,024

2,507

366

2,152

2,328

2,605

1,379

186

372

60

1,080

1,058

22

801

257

45

54

247

142

304

49

4

366

349

17

260

89

54

60

69

141

205
5

157

180

71

398

33

80

5

3,318

1,303

3,331

1,029

115

294

134

35

1,065

955

110

724

231

12,187

9,893

2,294

7,842

2,051

10,512

9,254

1,258

5,449

3,805

22
270
93

3,303

3,677

764

547

616

128

Norway

1,418

1.286

132

445

841

24

11

820

196

67

79

72

Poland

2,841

2,832

9

911

1,921

29

69

1,920

682

125

2

6

Portugal

2,086

2,071

15

269

1,802

42

25

1,735

71

17

14

80

23

75

75

-

75

-

12

5

-

6

52

13,623

13,487

136

4,568

8,919

219

886

8,742

1,507

302

95

780

16

2,290

2,106

184

2,022

84

94

81

60

300

1,490

17

18

17

41,097

37,111

3,986

11,711

25,400

380

1,947

21.147

3,452

7,195

125

520

1,700

Italy

...

Netherlands

Ronnania

Spain

Sweden
Switzerland

Turkey

Kingdom

United

1,761

1.598

163

942

656

139

309

629

359

93

7

18

15

117,120

103,415

13,705

89,426

13,989

641

21,278

8,584

9,736

55,006

490

930

3,073

10

168

-

77

30

-

38

5

13

5

504

-

46

75

-

124

212

4

43

USSR

178

168

•/ugoslavia

505

504

Other Europe
Total

....

Europe

Canada

1

15.252

14.484

768

13.564

920

72

7.206

377

6510

175

14

116

11

291,465

256,070

35.395

179,767

76,303

3,341

53,881

62,422

37,341

79,884

2,130

4,424

5.321

22,335

20,884

1,451

16,869

4,015

242

3,532

3,459

1,852

7,915

433

2,764

188

Latin America:

Argentina

8,492

8,310

182

5,850

2,460

330

26

2,331

249

162

629

4,423

42

Bahamas
Bermuda

102,693

101,679

1,014

88,234

13,446

164

5,094

137

16,718

78,954

115

853

397

3,540

3,339

201

2,525

814

9

913

133

217

6,894

5,770

124

5,415

355

236

378

-

169,926

165,472

4,464

126,885

38,587

82

9,495

115

BrazU
British

West

Indies

527

91

152

336

301

453

441

3,516

28

41,327

107,032

216

3,404

Chile

3,737

3,623

114

2,482

1,141

63

73

924

373

88

223

1,746

450
36

Colombia

4,955

4,912

43

3,409

1,503

72

731

790

1,021

21

259

1.927

5

11

11

10

1

-

3

1

Ecuador

1,191

1,168

23

1,142

26

57

Guatemala

1,553

1,639

14

271

271

.

Cuba

Jamaica
Mexteo

6

-

-

41

-

52

-

31

1

129

830

11

4

1,471

68

40

244

50

11

-

135

1,012

-

262

9

34

25

-

104

6

21

62

22,483

21,640

943

12,696

8,844

241

921

8,004

2,764

1,029

1,102

6,965

Netherlands Antilles

6,224

5,219

1,005

4,821

398

29

138

21

113

3,361

54

919

140

Panama

4.222

4.144

78

3.832

312

41

186

11

250

1.007

171

2.171

100

1.215

1.187

28

1.123

64

37

30

46

138

1

78

827

317

312

5

306

6

36

38

-

56

10

17

148

1

2.126

2.054

72

1.988

66

29

71

-

157

729

120

893

12

13.269

12.383

886

10.176

2.207

128

1,458

1,078

1,565

821

612

6,552

26

6613

6508

105

6.612

896

224

606

574

617

249

530

3.462

132

358,732

349,441

9,291

278,239

71,202

1,842

20,474

14,214

65.333

194.035

5,007

40.047

1,861

Peru
Trinidad

and Tobago

Uruguay
Venezuela
Other Latin

Amerka

Total Latin

Amerka

259

CAPITAL MOVEMENTS

104

TABLE

CM-1.4.--Total Liabilities by Type and Country, Mar. 31, 1992, Preliminary, Con.
(Position in mllliom ot dollaral

Total

Liabilities

liabilitiea

To

payable

in dollars

foreign offictaJ

institutions

and

unaffiliated foreign

Momo-

Liabilities to

banks

all otfier

randum

foreigners

Liabil-

Payable
Payable

foreign

in

curren-

Banks'

own

Ba-

Custody

Total

doHars

(1)

(2)

cies

(3)

Asia:

China
2,677

2.677

Taiwan

10,880

10,596

HonflKong

Mainland

17,084

14,716

India

2,031

2,028

Indonesia

1,518

1,516

Israel

2,545

2,536

Japan
Korea
Lebanon

74,383

48,593

2,830

2,827

361

360

lulalaysta

1,303

1,303

Pakistan

1,006

1,006

Philippines

2,645

2,638

Singapore

9,934

9,582

Syria

Thailand

Other Asia
Total Asia

174

174

3,344

3330

21.024

20.884

153,749

125.766

1.337

1,337

Africa:

Egypt

Ghana

130

130

Uberia

422

413

Morocoo
South Africa
Zaire

Other Africa

Total

Alrba....

Other countries:
Australia
All

other

Total other countries
Total foreign
countries

.

.

.

91

90

191

191

35

35

2,714

2,690

'^^°

^'^

-

Deposits

Babil-

'

Country

Klesto
banks'

Shoil-

Totals

in

biUties

ities

Demand

(4)

(5)

(6)

Other

own

oblig^

liabr^

foreign

Hies

offces

Demand

(8)

(10)

(11)

Time

tions

(7)

(8)

Negoti-

Short-

term US
Treasury

Deposits

CDs

term US,
Treasury

Other
lia-

hekj for

obliga-

bil-

all for-

able

Time

tbns

ities

eigners

(12)

(13)

(14)

(15)

105

CAPITAL MOVEMENTS

CHART CM-A.--International Liabilities
Reported by International Banking

Facilities

and Banks

in the

United States

(In billions of dollars)

900
International

800

-

700

-

600

-

500

-

400

-

300

-

200

-

100

-

U.S.

1987

Banking

Facilities

Banks

1988

1989

1990

END OF PERIOD

1991, r

1992, IstQtr.

1

CAPITAL MOVEMENTS

106

SECTION IL-Claims on

Foreigners Reported by Banks in the United States

TABLE CM-n-l.--Total Claims by Type
(Position at

end

of period in millions o< dollars)

Calendar

1991

year

Type
Total

19B8

of claim

daims

Payable

661,721

in

dollars

own

Banks'

593.087

claims on foreigners

649,989

60.51

Deposits

78.185
56,700

Own foreign

offk:es

296.011

dlier foreigners

43.085

of

629,707

banks

Otfier

Claims

r

534.492

Fofoign public borrowers
Unaffiliated foreign

All

Sept

tanks' domestic customers

58,594

Deposits

13.019

Negotiable and readily transferable
instruments
Collectksns

Payable

in foreign

Banks*

30,983

and other

14,592

currencies

68,634

own claims on

foreigners

65,127

Claims of banks' domeste customers

3,507

Memoranda:
Claims reported by IBFs

Payable

in dollara

Payable

in

Customer
Claims

foreign currencies

liat>ility

wrtfi

343,205
290,061

53,144

on acceptances

remaining maturity of

12,699
1

year or

less:

On foreign publk; txDrrowers
On all other unaffiliated foreigners
Claims with renr^ning maturity of more than

On foreign public borrowers
On all other unaffHialed foreigners

23,916

154,430

1

year
36,014
23,762

12,921

12.832

Dec

r

650.711

Mar.

Sept

r

634.043

635.686

Dec p

CAPITAL MOVEMENTS

TABLE CM-n-2.-TotaI Claims by Country
(PocHion al end of penod

in millions o( dollarel

CaJendaf
year

Counliy

1989

Sept

r

Europe:

*"""•

661

BelgiunvLuxembourg

_,._
'

Bulflaria

Czechoslovakia

^

g^

f'*'*^

.

.

1.395

17.128

oso

245

6,119

6.346

Q'««»
Hungufy

I"*""
•^^
Nelheriand*

601
8,527

2674

2.827

677

805

258

230

426
„,

747

2,063

2.286

2,971

4.539

P°'<"9"l

Romania

Switzerland

USSR
*"

6.184

3,'024

3.284

94 261

85,211

1,340

919

35q

1.111

g^g

393

164.912

152.383

19,690

20.720

Yufloslavia

,

Other Europe

Total Europe

Canada

Latin

16

yggg

''"^
United Kingdom

549
221

616

Poland

^'"

818
384

8.631

No™">y

^*^'"

1,037

18,836
.

°"*™"''

28

1232

''"^
Dennocratic Republic

87

_„

Denmark

Qerman

658
7.007

America and Caribtiean:

^O'^'

^o™*
Bemuda

^"'
British

Weet

Indies

°'^"«

C<it"rbt>

9790

8.139

79,374

68,790

,3^

2.234

24!256

21.350

82 177

93.292

4696

3.830

2.917

2,738

Cuba

,

^""'^'^
1,768

Quatemala

""""*
Nethertands Antilles

1.570

2og

209

303

263

24.997

14.073

2 027

1.808

l!98S

1,794

•""™^

'''""™
''"'"

TrinWad and Tobago

""«'"1'

V»"»^«"»

793

714

203

220

962

867

10.210

8.741

g^

1.377

Other Latin America

and Caribbean

Tc*al

,

LaSn Amenca

and Caribbean

249.655

613

Dec

r

107

CAPITAL MOVEMENTS

108

TABLE CM-n-2.--Total Claims by Country, Con.
(Pottlian at

Calendar

and

ol p«riod In nmlliona o( dollare)

1990

1991

year

1989

Country

Sept.

Asia:

China:

Mainland

703

Taiwan

2,873

HongKons

13.189

'"di*

668

Indonesia

qqq

'*••'

6,334

"•"P*"

15S.162

''Of"

5.422

Lebanon

74

Malaysia

477

PaKtatan
Philippines

Singapore

^

^37

^

347

1,

,03

^

^35

Syria

45

Thailand
Oil-expoitng countries

'

10 419

Other Asia

g22

Total Asia

211,420

.

Africa:

Egypt

508

Qhana

g

Liberia

902

Morocco

730

South Alrica

^

Zaire

g73
^7

Oil-exporling countries ^
-I

Other Africa

537
72i

TolalAtrica

6,247

Other countries:
Australia

Another

Total other countries

Total foreign oountries

International

and

....
.

.

.

regional:

Inlernational

European regional
L^in AnDerican regional
Asian regional
African regional

3.962

3
57
^4
^^

Middle Eastern regional

Total inlernational

and regional

Grand

total

4.056

55^ 72^

593

r

Dec.

r

Juner

Sept

Dec. p

CAPITAL MOVEMENTS

TABLE CM-n-3.-Total Claims on Foreigners by Type and Country, Dec. 31, 1991
{Position at

end

of period in millions of dollars)

Reporting banks'

Total

Country

claims
(1)

own ctainis

109

CAPITAL MOVEMENTS

110

TABLE CM-n-3.--Total Claims on Foreigners by Type and Country, Dec. 31,
{Position at

end

1991, Con.

of period In milliona of doBars)

Reporting banks'

own

clainns

On loreign

Claims of tanks'
domestic custonners

Memorandum

put>tic

Total

Country

in

liablity

Payable

in

foreign

foreign

in

foreign

daims

claims

foreigners

offices

currencies

on acceptances

Total

dollars

currencies

(1)

(2)

(3)

(4)

(S)

(6)

(7)

(8)

(9)

Mainland

78^
2,205
49 931

India

522

Indonesia

^

004

'«'»^

6,450

J»P»n

127,023

Korea

g202

Lebanon

gg

Malaysia

269

Pakistan

^

^gg

Philippines

2 004

Singapore

ygg!

Syria

27

Thailand

^

Other Asia

7gg

g 53g

TctalAsIa

179,012

Africa:

EwPt

305

Qhana

3

Liberia

g53

Morocco

832

South Africa
'I

Zaire

253

4
2082

Other Africa

Total Africa

6432

Other countries:
Australa

At

o«hor

Total other countries

Total foreign oountiiee

...

.

.

Intematkinal and regional:
International

G3U

European regional
Latin

Anwrk»n

regional

gj

Asian regional

^4

African regional

^^

Middle Eastern regional

Total intemalional

Qrand

total

Less than $500,000.

and regional

.

.

Payable

On own

unaffiliated

China:

Hong Kong

Customers'

and

own

Asia:

Taiwan

Payable

borrowers

tsanks'

Total

g 393

ggg 75g

753

CAPITAL MOVEMENTS

SECTION

IIL-Supplementary Liabilities and Claims
Data Reported by Banks in the United States

TABLE CM-ra-l.-Dollar Claims on Nonbank Foreigners
(Pogftion at

end

of period In millions of dollare)

111

CAPITAL MOVEMENTS

112

TABLE CM-III-2.~Dollar Liabilities to, and Dollar Claims on, Foreigners
in Countries

and Areas Not Regularly Reported Separately
fPosilion at

Total

end

of period in millions o* dollare)

own

Total banks'

liabilities

Calendar year

ctaims

Calendar year

Dec p

Country

1987

1988

1989

1990

Dec p

Other Europe:

Cyprus

40

Iceland

19

Ireland

644
9B

Monaoo

n.a.

51

111

168

48

41

67

72

51

70

n.a.

71

176

69

61

40

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

209

436
5

n.a.

290

356

643

26

n.a.

8
28

3

4

151

21

9
46
n.a.

905

Other Latin America and Caribbean:

Aniba
Barbados

1

531

60
565

9
40
2

564

253
47
484

971

956
43
995
938

1,148

1,250

134
442

110
384

14

12

3

969
989

1,294

413

878

162

394
220

121

299
38

n.a.

2

n.a.

6

311

263
615
219
562
62

12
167

15

13

152

124

116
67

55
60

55

22
88
56

81

71

47
27
95

6

11

10

2

1

3

11

n.a.

n.a.

17

45

60

46

n.a.

31

215
32
423
678
18
844
738

Belize
Bolivia

CcetaRica
Dominica
Dominican Republio
B Salvador

195
36

132

927
783

41

58

41

226
53

271

1

1

30
328
2
443

55
176

53
142

1

n.a.

297

261

281

243
216

4

2

n.a.

1

1

n.a.

French West Indies

and French Guiana

20

Quyana

211

Haiti

235
609
87
520
51

26
263
614
87
595
60

26
288
612
79
726
76

Bangladesh

68
97

85
134

82
126

Brunei

14

316

4

15

7
208
30
74
44
155

57
230
25
83
58
195
22
30

306
8
7

70
222
318
6
2

168

28
55
77

Honduras
Nicaragua

Paraguay
Surirume

600
123
750
78

8

10

Other Asia:
Afgtianistan

Burma
Cambodia

(formerly

Kampuchea)

.

Jordan

Macau
Nepal

Lanka
Vietnam
Sri

Yemen
Yemen
Other

(Aden)

18

(Sanaa)

19

82

n.a.

1

6
4

1
1

1

1

1

161

184

135

151

42
67
138
244

39
7
37

23
8
SS

214
30

174

44
46

176
19

122

n.a.

129

213
30

211

103

149

132

36
22
9

2

38

8
51

n.a.

6
42

60

51

86

73

60

106

15

6
9

2
8

6
7

11

54

19

14

Alrksa:

Angola

15

7

20

28

BururKJi

16
32

22
16

12

21

41

65
37
5
69

10
87
37

n.a.

95

56

4

31

1

S2

134

9
8

27
76
24
15

17

n.a.

61

37

2
28
2

Cameroon
Djibouti

Kenya
Madagascar

71

85

67
38
2
50
85
78

Mauritania

18

17

Mauritius

13

9

Mozamt»que

SO

Ethiopia, including Eritrea

Guinea
Ivory Coast

61

33
5
38
78
65
22
42
48

141

33
2
1

178
72

3

6

1

113

45
2

60
29

48
43
n.a.

3

n.a

3

6

18

21

22

19

n.a.

22

1

1

26
39

3

25
8

8

5

n.a

Rwanda

14

13

12

23

Senegal
Somalia

10
27

19
18

23

7
22

13

12

22

15

21

18

8

3

Sudan

45

73
35

85
83

11

9

19

62

138

36
23
97

176

123
n.a.

72

38
58

14

Zimbabwe

31

104
26

49

105

22
95

130
3
26
90

131

45

Zanibia

46
35
63
38
85
28

1

33
29
58
68

52
34
58

2

Tanzania

22

20

21

40

n.a.

12

14

14

35

25

n.a.

953

788

460
76

Niger

Tunisia

Uganda

All

43

3

1

n.a.

3
130

other

Fiji

Marshall Islands

1

New Zealand
Papua New Guinea

480

618

31

54

88

26

67

153

122

SO
35

29
6

n.a.

2

2

n.a.

17

15

821

413
42

557
58

U.S. Trust Tenltory
of the Pacifk} Islands

Vanuatu (formerly
'

Less

thari

New Hebrides)

$500,000.

.

9

Note. "Data represent a partial breakdown of the arTX>unts shown for the correspondirig dates
geographkial categories in the regular monthly series in the Troasury Bulletin.

for the 'other'

113

CAPITAL MOVEMENTS

CHART CM-B.--Claims on Internationals
Reported by International Banking

Facilities

and Banks

in the

United States

(In billions of dollars)

700
International

600

Banking

Facilities

-

U.S.

500

-

400

-

300

-

200

-

Banks

100 -

1986

1987

1988

1989

END OF PERIOD

1990, r

1991,

CAPITAL MOVEMENTS

114

SECTION IV.--Liabilities to,

and Claims on, Foreigners
Reported by Nonbanking Business Enterprises
in the

United States

TABLE CM-IV-l.--Total Liabilities and Claims by Type
(Po8Kion at end ol period

Calendar year

Type

Total

o( liability or

dalm

1987

1988

liabilities

Payable

In dollars

Financial

In millions ol

doBare)

1890

1989r

Dec

r

38.764

43.417

1991

l^r

r

Juner

Sept

r

Dec. p

22.785

27,335

33.973

38,535

36.414

35,317

36.174

36,098

8.643

10,608

14,035

14,737

14.187

13,928

14.686

15,186

Commercial:

Trade payables

Advance receipts and other

Payable

in

foreign currencies

.

.

.

.

.

.

5.754

4.924

7,191

9,556

7.872

7.722

8.375

8.089

8.388

11.803

12,747

14,242

14.355

13.667

13.113

12,823

5.517

5.617

4,791

4,882

4,506

4,477

4.479

4,725

3.781

3.900

3,844

3,730

3,309

3.352

3.489

3,504

1.S5t

1.580

938

977

G64

929

185

137

214

228

148

Total clainns

30.964

33.805

33.173

35,008

35,337

36.837

37.898

41,330

Payable

28.502

31.425

30.773

32.499

33,021

34.779

35.585

38,890

13,765

14.544

11.364

12.400

11,977

11.644

15070

16,209

4.656

5220

6,190

6.247

5894

7.637

5,493

6,646

9.084

10,697

11.618

12.994

13,101

13,344

12,681

13,449

997

1,063

1,601

1.858

2.049

2.154

2,341

2,586

2.400

2.509

2.316

2.058

2,313

Financial

Commercial;

Trade payables

Advance receipts and

other

In dollars

292

Financial:

Deposits

Other

Commercial:
Trade receivables

Advance payments and other

Payable

in foreign

currencies

.

.

.

Financial:

Deposits

Other

1.128

1,099

989

1.095

1.023

773

985

809

814

777

754

666

727

688

673

820

451

494

635

528

549

568

554

655

68

12

22

20

17

29

101

156

Commercial:

Trade receivables

Advance payments and other

.

.

CAPITAL MOVEMENTS

115

TABLE CM-IV.2.--TotaI Liabilities by Country
{Posilbn

al

end

d period in millions ol dolars)
1990

Calendar year

1989

1986

Country

Europe:
Austria

26

Belgiunrt-Luxembourg

37q

Bulgaria

Czechoslovakia

•

Denmark

42

Finland

224

France

1013

Qerman Democratic Republic. ...
Qefmany

-ig
1

Greece

083
ig

Hungary

7

Ireland

na

Itaty

342

Netherlands

qqq

Norway

201

Poland

1

Portugal

g

Romania

^^

Spain

157

Sweden

151

Swilzeriand

1

031

g

Turtcey

United Kingdom

u.s.s.R

e

Yugoslavia

22

Other Europe

Total

6481

146

Europe

Canada

Latin

America and Caribbean:

Argentina

29

Bahamas

545

Bermuda

160

93

Brazil
British

West

Indies

Chile

Iigg
34

Colombia

21

Cuba
Ecuador

12

Guatemala

5

Jamaica

13

Mexico

239

Netherlands Antiltes

qq

Panama

25

Peru
Trinidad

22

and Tobago

Uruguay

3
5

Venezuela

216

Other Latin America

and Caribbean

Total Latin

qq

America

and Caribbean

2.868

IB

Dec

r

Sept

Dec. p

CAPITAL MOVEMENTS

116

TABLE CM-IV-2.-TotaI Liabilities by Country, Con.
(Position at

Calendar year

1086

Countiy

China:

264

Taiwan

1^3

Hona Kong

^^2

India

26

Indonesia

79

l«f»»l

198

J»P«n

3440

Korea

572

Lebanon

•

Malaysia

^3

Pakistan

^4

Philippines

^7

Singapore

215
2

Syria

Thailand

-Iq^

Oil-exporting countries

1

^

Other Asia

qqq
34

Total Asia

6885

Africa:

Eaypt

209

Qhana

^

Liberia

.

Morocco

5

South Africa

^g5

Zaire

^

Oil-exporting countries 2

^gg

Other Africa

42

Total Africa

g2o

Other countries:
Australia
All

other

Total other countries

Total foreign countries

International

and

....

.

.

.

regional:

International

547

European regional
Latin

42

American regional

Asian regional
African regional

Middle Eastern regioiuil

Total MarnatioiuU

Grand

total

and

regional

.

.

ggg

25 587

ol period in millions c4 dollare)

t990

1991

Sept.

Asia:

Mainland

end

204

Dec. p

CAPITAL MOVEMENTS

117

TABLE CM-IV-3.--Total Liabilities by Type and Country, Dec. 31,
(Posilion at

end

1991, Preliminary

ol period in milliore cH dollars)

Financial

liabilities

PayaUe
Total

Country

Payabte

liabilities

Total

(1)

(2)

in

dollars

(3)

foreign
currencies

Commercial

(1)

(5)

in

liabilities

Europe
Austria

Belgium-Luxembourg

....

Bulgaria

Czechoslovakia

Denmark

130

S3

70

13

47

409

162

149

13

247

9

7

7

2

4

4

63

63

Finland

109

60

60

France

2,127

1,247

1,225

22

na

n.a,

n.a.

n.a.

1.601

658

645

13

German Democratic Republk;
Germany
Greece

177

Hungary

26

Ireland

337

Italy

Netherlands

Norway
Poland
Portugal

Romania

177

26
109

108

1

228

112

483

60S

115

3

932

683

704

439

217

217

222

32

17

17

55

1

1

54

18

15

394

15

39

412

Sweden

305

Switzeriand

787

Turlwy

39

305
316

162

154

471

5,955

5,532

423

3,168

64

Kingdom

USSR

64

57

38

Other Europe

Total

9,123

57

Yugoslavia

39

Europe

Canada

I^n America and Caribt>ean:
Argentina

26

Bahamas

515

Bermuda

310

Brazil
British

West

Indies

Chile

512

218

1

2,844

2,737

1

46

41

Cotombia

16

Cuba
Ecuador

15

Quatenuda

6

Jamaica

6

Mexico

310

8

1

Netherlands Antilles

642

590

590

Panama

6

Peru
Trinidad ar>d

10

Tobago

Unjguay

97

Other Latin America
and Caribbean

Total Latin

17
1

Venezuela

America

and Caribbean

943

1,636

Spain

United

49

125

CAPITAL MOVEMENTS

118

TABLE CM-rV-3.--TotaI Liabilities by Type and Country, Dec. 31,
(Positron at

end

1991, Preliminary, Con.

of period in millions at dollare)

Financial

liabilities

Payable

PayaUe

Total

Country

liabilities

Total

(1)

(2)

in

dollars

(3)

in foreign
currencies

Contmercial

(4)

(S)

llabilitiee

Asia:

China:

Mainland

534

Taiwan

727

Hong Kong

761

India

Indonesia
Israel

534
727
477

12

59

1

1

1S3

12

12

284
58
171

124

4

4

120

Japan

7,143

3.533

1.202

3,610

Korea

1,549

333

333

1,216

Lebanon

3

3

Malaysia

298

297

Pakistan

25

25

Philippines

25

Singapore

554

Syria

Thailand

Other Asia

Total Asia

25
236

233

318

2

2

255

255

1,601

1,588

13.843

4.610

9.233

Africa:

Egypt

161

160

Morocco

35

35

South Africa

77

76

Ghana
Liberia

Zaire

3

Other Afrca

491

767

Total Africa

Other countries:
Australia

072

other

All

109

Total other countries

Total foreign countries

International

and

....

regional:

International

European regional
Latin

40

American regional

Asian regional
African regional

Middle Eastern regional

Total international

Grand

total

and regional

487

CAPITAL MOVEMENTS

119

TABLE CM-IV-4.--TotaI Claims by Country
(Posllion at

and

o< pariod In mHliona o< dollare)

Calendar year

1989

1986

Countiy

Europe:
Austria

24

Belgium-Luxembourg

^74

7

Bulgaria

Czechoslovakia

j

Oannnarit

g2

Finland

83

France

ggg

German

[democratic Republic

....

22

Qermany

ggO

Greece

77

Hungary

g

Ireland

n.a.

Il»ly

458

Netherlands

3^5

Norway

^23

7

Poland
Portugal

g

Romania

22

Spain

205

Sweden

^4^

Switzeriand

402

Turi<By

52

United Kingdom

U.S.S.R

354
84

Yugoslavia

j5g

Other Europe

Total

.|0

70

Europe

Canada

Latin

America and Caribbean:

Argentina

^27

Bahamas

2,656

Bermuda

^gg

Brazil
British

320

West

Indies

Chile

6,118

83

Colombia

ig3

Cuba

^

Ecuador

72

Guatemala

35

Jamaica

47

Mexico

587

Netherlands AntHtes

85

Panama

33

Peru
Trinidad

75
and Tobago

Uruguay

28
10

Venezuela

258

Other Latin America

and Caribt>ean

Total Latin

261

America

and Caribbean

^^ .|43

33

r

Dec

r

Mar.

r

Sept

Dec p

CAPITAL MOVEMENTS

120

TABLE CM-IV-4."TotaI Claims by Country, Con.
(Poertion at

Calendar year

1986

Countiy

CNna:
^3^

Taiwan

^21

Hong Kong

217

India

1,0

Indonesia

gi

Israel

igg

Japan

1

Korea

881

24S

Lebanon

g

Malaysia

£5

Pakistan

44

Philippines

40

Singapore

210

Syria

4

Thailand

54

Oil-exporting countries

1

57O

Other Asia

,qo

Total Asia

4 072

Africa;

Eoypt

196

Qhana

1

Uberia

4

Morocco

15

South Africa

gj

Zaire

3

Oil-exporllng countries 2

1gg

Other Africa

13g

Total Africa

535

Other countries:
Australia
All other

Total other countries

...

Total foreign countries

.

International

and

.

.

regional:

International

2

European regional
Latin

1g

American regional

*

Asian regional
African regional

•

Middle Eastern regional

Total international

Grand

total

and regional

.

.

20

3g 265

of period in millions of dollars)

1991

Sept.

Asia:

Mainland

end

133

Dec. p

CAPITAL MOVEMENTS

121

TABLE CM-IV-5.--TotaI Claims by Type and Country, Dec. 31, 1991, Preliminary
(Posilicyi at

end

of period in millions dl dollars)

Financial claims

Denominated
Denominated

Total

daiiTB

Total

(1)

(2)

rn

dollars

in

foreign

Commercial

currencies

claims

(4)

(5)

Country
(3)

Europe:
Austria

BelgiunrvLuxembourg

....

Quigana
Czechoslovakia

Denmart(

206

45

48

13

192

2

2

18

18

85

2

1

Finland

140

62

21

41

78

Franco

1,790

252

235

17

1,538

German Democratic Repiiblic

82

n.a.

n.a

n.a

n.a.

n.a.

1,268

337

312

25

931

Greece

51

2

2

49

Hungary

21

5

5

286

249

247

2

37

18

Gefmany

Ireland
Italy

16

625

33

15

592

1,023

386

3

637

Norway

129

11

2

118

Poland

43

Netherlands

Portugal

140

Romania

43
111

56

55

29

58

21

37

260

4

4

Spain

318

Sweden

217

15

5

10

202

Switzeriand

876

sag

549

40

287

1

101

521

2,062

Turtoy

102

United Kingdom

1

13,222

11.160

10.639

USSR

274

18

18

Yugoslavia

113

14

14

Other Europe

135

256

Total Europe

Canada

Latin

America and Caribt>ean:

Argentina

206

11

10

1

Bahamas

1.728

1,717

1,714

3

Bermuda

271

a

7

1

603

115

114

1

5.368

5,327

5.289

38

Brazil
British

West

Indies

Chile

Colombia

Cuba

82

3

lis

25

2

2

Ecuador

95

61

60

Guatemala

15

2

2

Jamaica

1

23

1

1.009

182

153

Netherlands Antilles

38

28

28

Panama

43

11

7

Peru

35

1

18

1

1

241

40

2

311

28

Mexico

Trinidad

and Tobago

Uruguay

....

1

29

4

1

7

Venezuela
Other Latin Auwrica

and Caribbean

Total Latin

and

America

Carit>t>ean

20

8

CAPITAL MOVEMENTS

122

TABLE CM-IV-5.--Total Claims by Type and Country, Dec. 31, 1991, Preliminary, Con.
(Position at

Country

Asia:

China:

Mainland

Taiwan

Hong Kong
India

Indonesia
Istael

Japan
Korea

Lebanon
Malaysia
Pakistan
Philippines

Singapore
Syria

Thailand

Other Asia

Total Asia

Africa:

Egypt

Qhana
Ut>eria

Morocco
South Africa
Zaire

Other Africa

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 Eastern regional

Total intemational

Grand

total

and regional

end

ol period in millions ot dollars)

123

CAPITAL MOVEMENTS

CHART CM-C.--Net Purchases of Long-Term
Domestic Securities By Selected Countries
(In billions of dollars)

1988

1989

1990

CALENDAR YEARS

1991, r

1992, IstQtr.

CAPITAL MOVEMENTS

124

SECTION V.~Transactions

in

Long-Term

Banks and Brokers

Securities

in the

by Foreigners Reported by

United States

TABLE CM- V-l."Foreign Purchases and Sales of Long-Term Domestic Securities by Type
(In mlllione ot dollara.

neqallve tiqures indicate net sales by foreignere of a net

Marketable Treasuiy bonds and notes

Calendar
year
or month

ouWow ol capital Irom the

United Slates)

CAPITAL MOVEMENTS

125

TABLE CM-V-3.-Net Foreign Transactions in Long-Term Domestic Securities
by Type and Country
miniona ot dollara: nagalive fiqufM indicata ngl sales by loreigrwre Of a n«< oulllow ol capital from the United Slalea)

fln

Marttetable Treasury
tx>nds and notes

1991
Calendar
year
1991

Countiy

U.S. Qovl. corporations

and Federal agency twnds

1992

Oct

Jan.

through

through
Mar. p

Dec

Calendar
year
1991

Corporate bonds

1992

1991

Oct.

Jan.

through

through

Dae

Mar. p

Corporate stocks

1992
Calendar
year
1991

1991

Oct

Jan.

through

through

Deo

Mar p

Europe:
Austria

17

Belgium-Luxembourg

61

-46

-3

11

11

132

47

-20

176

764

77

82

-1,410

-482

-219

-37

-3

Bulgaria

Czechoslovakia

.

.

.

Denmark

344

41

-234

-229

•40

27

72

13

Finland

-1,088

168

-15

-44

-43

-8

-36

-14

14

France

-1,073

1,313

2,114

425

259

-5

420

-too

27

Qerman Democratic
Republic

Qermany
Qreeoe
Hungary
Ireland
Italy

....

Netherlands

Norway

aa.

a a.

n.a.

n.a

n.a.

a a.

n.a.

n.a.

n.a.

-4,726

883

779

-08

11

-16

1,672

589

1,009

308

33

-25

7

39

6

-6

16

-3

GO

-16

-22

-23

-32

430

396

-213

38

•2

20

123

•24

3,270

710

146

104

2

12

933

610

2

-3.735

-364

-2,658

64

-30

-368

419

179

249

-216

-27

-93

65

130

16

-36

-5

-7

848

227

78

14

16

6,855

1,094

-201

555

642

-662

554

582

-52

-12

1,008

518

-657

•101

3

-521

-510

-321

5,641

2,250

7,039

1,300

865

Poland
Portugal

-1

Romania
Spain

Sweden
Switzerland

Turkey

Kingdom

United

U.S.S

.

.

R

-2

Yugoslavia

Other Europe

Total

....

Europe

.

.

.

Canada
Latin

America and

Caribbean:
Argentina

21

Bahamas
Bermuda

1,459
-2,180
-1

Brazil
British

West

Indies

-78

.

Chile

127

Colombia

326

Cuba
Ecuador

-18

Quaten%ala

-2

Jamaica

-21

Mexico

2,820

Netherlands Antilles

6,213

Panama

215

Peru
Trinidad

2

and Tobago

-2

Uruguay

15

Venezuela

10

Other Latin Amerk;a
and Caribbean

.

_

Total Latin ArT>erca

and Caribbean

See

.

—

footnotes at end of table.

61

403

-29

Calerv
dar
year
1991

1992

Oct.

Jan.

through
Dec.

through
Mar. p

CAPITAL MOVEMENTS

126

TABLE CM-V-S.—Net Foreign Transactions in Long-Term Domestic Securities
by Type and Country, Con.
fin

Country

miHiona of dollars; nepalivo figures indicatq net sales by foreignere or a net outflow

erf

capital from the Unitod Stataa)

CAPITAL MOVEMENTS

127

TABLE CM-V-4.-Foreign Purchases and Sales of Long-Term Securities, by Type and Country,
During the First Quarter 1992, Preliminary

CAPITAL MOVEMENTS

128

TABLE CM- V-4.~Foreign Purchases and Sales of Long-Term Securities, by Type and Country,
During the

First

Quarter 1992, Preliminary, Con.
(In millions of dollars)

Qross purchases by foreigners

Country

Gross sales by foreigners

CAPITAL MOVEMENTS

129

TABLE CM-V-5.--Foreign Purchases and Sales of Long-Term Securities, by Type and
Country, During Calendar Year 1991
(In

minions ol dollars)

Gross purchases by torctgners
Domestic
Marketable
Treas-

&

ury

Country

Gross sales by foreigners

securities

Domestic securities
Market-

Bonds

at)le

Bonds

or U.S.

Treas-

olU.S,

Qov^

ury

corp

Federal
Financ-

and Fed-

ing

erally

Corporate

Foreign

Total

Bank

securities

bonds

chases

& notes

sporv
sored
agencies

and other

pur-

Bonds

Stocks

(1)

(2)

(3)

(4)

(S)

&

Federal
Financ-

(6)

(7)

Govt
Corp.

and Fed-

ing

erally

Corporate

Foreign

Bank

and other

securities

& notes

sponsored
agencies

Bonds

Stocks

Bonds

(9)

(10)

(11)

(12)

(13)

Total

bonds

saJes
(8)

(14)

Europe:
Austria

BelgiurivLuxembourg

5.464

3.681

49

laO

R48

766

130

5,591

3,664

18

58

695

988

167

27.591

11.782

1,758

1.993

39

5,122

897

28,606

11,264

1.098

3,403

6.194

5.737

911

38

38

399
118
692

992

535

35

Bulgaria

Czechoslovakia

35

1

.

.

Denmark

16,270

1

11.744

Finland

3,459

2,811

France

72,014

47,518

German Democratic

2.373

226

378

52

4.706

3,899

162

67

543
87

2.415
421

271

31

1.918

8.482

6.014

76.294

48,591

267

1.498

7,387

11.097

7.455

16,177

11,401

627

921

69

na

na

na

na

n.a

na

n.a

n.a

n.a

66.621

42,461

144

3,178

5.963

10.762

4.113

69.572

47,188

1.506

6,021

8,984

Greece
Hungaiy

1.525

1,152

63

61

204

7

1.141

182

20

28

99

6

11

2

143

843
83

12

122

Ireland

8,969

7,036

164

462

497

47
5
667

242
56

8.449

6,606

22
125

34
339
325
335
68

3
865

149

4,657

4,967
6.127

4.422

749

653

594

"^

Republic

Germany

n.a

143

Italy

15.853

4,980

117

1.268

3.148

4.926

1.424

11.745

1.710

13

Netherlands

48.170

35,215

506

754

4.435

3116

4.144

54.9^2

38,950

Norway

13,032

10.662

251

33

666
3

1.004

417

13.128

10,878

442
185

19

99

Poland
Portugal

4
2,645

2,454

39

62,589

55,956

2.217

17

2
17

n.a

1

364
2,691

n.a

n.a.

5.632

2.039

1

1.733

1,605

26

17

21

18

47

120
516

385

2.222

2.548

1,042

3.654

1.708

2.272

17,325

3.623

4.512

Romania
Spain

Sweden
Switzerland

Turkey
United Kingdom

.

.

USSR
Yugoslavia

2,002

55,937

49,000

1,662

74

68

1.425

4.510

1,118

22,740

15,693

lis

2.942

17.155

3.803

4.184

47,274

19,325

126
216

23

21

20

54,911

126.886

3,295
886,278

3,074

38.629

78
45.859

2,553
608,591

1

11.809

1

3

1.863

602,950

20

10610

72

23

14

111

30.684

55.168

142.831

54.145

17

2

3

.

Other Europe
Total

361

15,031

20,333

4
.

190

22,225
48,532
2.697
886.684

12.995

Europe

Canada
Latin

America and

Carribean:

Argentina

1.262

82

61

64

373

5.068

3.676

486

13,339

3,916

134

72
465

280

5.376

234
553

395

15.445

63
285

402

Bahamas
Bermuda

5.066

3.319

66.690

52.663

1.329

2,971

5.097

3938

691

68,076

54,853

1.365

2,445

5.325

3,481

2.250

1.320

11

161

230

228

2.628

1,321

15

70

181

415

28.600

9.732

4,028

2.281

7.323

4.248

300
988

26.196

9,811

3.943

1.481

6.578

3.543

1.954

790
438

619
20

114

157

117
15

664

338

112

560
38

53
27

71

205

256
87

1.449

88

128

68
24

160
146

52

7

1

143

3

19

3

Brazil
British

West

Indies

Chile

Colombia

852

Cuba
Ecuador
Guatemala
Jamaica
Mexico

32
33

63
77

6
9

11

13

46

5

109

21

11

15

58

67

7

5

14

15

2

61

7.694

213

266

1.141

4,961

14,154

28
4,775

4
129

7

14.882

26
607

174

6
937

1.108

Netherlands Antilles

70.669

46.157

1,954

2,989

10.043

7.341

2,184

62,141

38,944

1,997

2.674

9.522

5.429

4.426
72

563

510

451

1,590

1,176

137

3,267

348

370

1.296

2

5

13

36

13

3

63

1

7

217
9

768
20

4

10

5

13

2

636

85

5

125

241

164

16

70

1.251

261

101

155

372

269

93

935
947

Panama
Peru

and Tobago
Uruguay
Venezuela
Trinidad

Other Latin Amerk»
and Caribt»an
.

.

America
and Caribbean

Total Latin

.

19

1

251

1

7
86

2

47
87

25
6

4
5

2

139

661

282

197

CAPITAL MOVEMENTS

130

TABLE CM-V-5.~Foreign Purchases and Sales of Long-Twm Securities, by Type and
Country, During Calendar Year 1991, Con.
(In millions of

Qross purchaes by foreigners

Country

doHare)

Qross sales by foreigners

131

INTRODUCTION:

Foreign Currency Positions

Information on holdings of foreign currencies, or foreign currency
banks and notibanking firms in the United States has been
collected since 1974. It has also been collected on those of foreign
branches, majority-owned foreign partnerships and subsidiaries of
United States banks and nonbanking firms.
positions, of

Reports cover five major foreign exchange mar1<et currencies and
is published in the Treasury
Bulletin in seven sections. FCP-I is a summary of worldwide net

Data generally do not reflect foreign currency positions of foreign
parents or their subsidiaries located abroad except through intercompany accounts. Data do include the foreign subsidiaries of a few
foreign-owned U.S. corporations. Assets, liabilities, and foreign exchange contract data are leported based on time remaining to maturity
as of the date of the report, regardless of the original maturity of the
instrument involved.

U.S. dollars held abroad. This information

positions in all of the currencies reported. FCP-II through -VI present
information on specified foreign currencies. FCP-VII presents the U.S.
dollar positions of the foreign branches and subsidiaries of U.S. firms
that are required to report in one or more of the specified foreign
cunsncies. Reporting is required by title II of Public Law 93-1 10, which
is an amendment to the Par Value Modification Act of September
21
1973, and by implementing Treasury regulations.

Information for the United States includes amounts reported by
sole proprietorships, partnerships, and corporations in the United
States, including the U.S. branches and subsidiaries of foreign nonbanking concerns. The Weekly Bank Positions category includes
figures reported by agencies, branches, and subsidianes of foreign
banks as well as banking institutions located in the United States. Data
for "foreign branches" and "abroad" include amounts reported by the
brancfies and by majority-owned partnerships and subsidiaries of^U.S.

banking and nonbanking concerns.

Since January 1982, the exemption level for banks and banking
institutions

has been $100

million.

The exemption

level for

nonbanking
on

films is also $100 million on positions in the United States, and
foreign branch's and subsidianes' positions since li^arch 1982.

Rrms must report their entire position in a foreign currency if the
specified U.S. dollar equivalent exemption level is exceeded in any
category of assets, liabilities, exchange contracts bought and sold, or
in the net position of that currency.
In general, exemption levels are applied to the entire fiim. In
reports on their foreign branches and majonty -owned partnerships and
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, partnerships, and subsidiaries with nonexempt holdings in the specified foreign currencies.

132

FOREIGN CURRENCY POSITIONS

SECTION
TABLE
[In

Report
date

Canadian

I.--Summary Positions

FCP-I-l.--Nonbanking Firms' Positions
millions o( foreign currency units,

except yen, which are

in billions]

133

FOREIGN CURRENCY POSITIONS

SECTION II.--Canadian
TABLE

FCP-II-l.--Nonbanking Firms' Positions
In

Report
dale

Dollar Positions

millions of dollars]

<

134

FOREIGN CURRENCY POSITIONS

SECTION III.--German Mark
TABLE

FCP-ni-l.--Nonbanking Firms' Positions
[In

Report
dale

Positions

millions of marks]

135

FOREIGN CURRENCY POSITIONS

SECTION IV.--Japanese Yen
TABLE

Positions

FCP-IV-l.--Nonbanking Firms' Positions

136

FOREIGN CURRENCY POSITIONS

SECTION
TABLE

V.--Swiss Franc Positions

FCP-V-l.-Nonbanking Firms'
[In

Report
date

millions of francs]

Positions

137

FOREIGN CURRENCY POSITIONS

SECTION
TABLE

FCP-VI-l.--Nonbanking Firms' Positions
[In

Report
date

VI.--SterIing Positions

millions of

pounds]

138

FOREIGN CURRENCY POSITIONS

SECTION
TABLE

VII.--U.S. Dollar Positions

FCP-VII-l."Nonbanking Firms' Foreign Subsidiaries' Positions
[In

Report
dale

millions o1 dollars]

Net
Assets 2

(1)

S'SOfll

Abroad

Liabilities

(2)

3

Exchange bought

(3)

*

Exchange

(4)

sold

*

position 5

(5)

Position

held

in:

139

FOREIGN CURRENCY POSITIONS

FOOTNOTES:
SECTION
^

Tables FCP-I through FCP-VII

majority-owned partnerships and subskjiarles only.

I

Worldwide nel positions on the

last

business day o( the calendar quarter

of

branches and majority -owned
partnerships and subsidiaries. Excludes receiv^es and installment paper that have been
sold Of discounted before maturity, U.S. parent companies' investments in their
business concerns

in

the

United

States,

their

foreign

majority-owned loretgn subsidiaries, fixed assets (plant and equipment), and capitalized
leases (or plant and equipment.

Foreign branches, majority-owned partnerships and subsidiaries only.
^ Weei<Jy
their

and
*

Excludes receivables and installment paper sold or discounted before maturity, fixed
(plant and equipment), and parents' investment in majority-owned foreign

nonbanking

worldwide net positions of banks and banking institutions in the United Stales.
foreign branches, and majority-owned foreign suteidiaries. Excludes capital assets

liabilities.

Foreign branches and majority-owned subsidiaries only.

assets

subsidiaries.
^ Capitalized plant and equiprnent leases are excluded.
* Includes both spot and (onward exchange rates.

Columns

1

and 3 less columns 2 and

4.

^ Representative rales on the report date. Canadian dollar

are expressed

in

U.S. dollars per unit ol foreign currency,

Excludes capital assets.
II

Excludes capital liabilities.
'° Includes both spot and lonward

THROUGH VII

Positions ol nonbanking business concerns
majority- owned partnerships,

and

subsidiaries.

in

In

ihe United States, their loreign branches.
section

VII.

positions of foreign branches,

others

in

rates

foreign units per U.S.

The source of the automated representative rates changed as of June 30, 1988.
Banks and banking institutions in the United States, their foreign branches, and
majority-owned subsidiaries. In sectbn VII. foreign branches and majority-owned

dollar.

subsidiaries only.

SECTIONS

and United Kingdom pound
all

" Columns 3and
'^

See

footnote 6.

exchange contracts.
9 less columns 6and 12.

140

INTRODUCTION: Exchange
To stabilize the exchange value of the dollar, the Exchange
Stabilization Fund (ESF) was established under the Gold Resen/e Act
of January 30, 1934(31 U.S.C. 822aV which authorized establishment
of a Treasury Department fund to be operated under the exclusive
control of the Secretary, with approval of the President.
Subsequent amendment of the Gold Reserve Act modified the
original purpose somewhat to reflect termination of the fixed exchange
rate

Fund

Table ESF-1 presents the assets, liabilities, and capital of the
The figures are in U.S. dollars or their equivalents based on
current exchange rates computed according to the accrual method of
accounting. The capital account represents the original capital appropriated to the fund by Congress of $2 billion, minus a sutisequent
•

fund.

transfer of $1 .8 billion to pay for the initial U.S. quota subscription to
the IMF. Gains and losses are reflected in the cumulative net income
(loss) account.

system.

Resources

of Ihe fund Include dollar balances, partially invested
in U.S. Government securities, Special drawing rights (SuRs), and
balances of foreign cunBncies. Principal sources of income (losses^
for the fund are profits (losses) on SDRs and foreign exchange, as well

as

Stabilization

interest

earned on assets.

• Table ESF-2 shows the results of operations by quarter.
Figures are in U.S. dollars or their equivalents computed accoriding to
"Profit (loss) on foreign exchange" includes
tfie accrual method.
realized profits or losses on currencies held. Adjustment for change
in valuation of SDR iToldings and allocations ' reflects net gain or loss
on revaluation of SDR holdings and allocations for the quarter.

9

141

EXCHANGE STABILIZATION FUND

TABLE

ESF-l.-Balances as of Sept. 30, 1991, and Dec. 31, 1991
[In

thousands

ol dollars]

Sept. 30, 1991

Assets,

liabilities,

and

capital

Sept. 30, 1991

through
Dec. 31, 1991

Dec. 31, 1991

Assets
U.S. dollars:
Held al Federal Reserve Bank of
Held with Treasury:
U.S. Government securities

New York

Other
Special drawing rights i
Foreign exchange and securities: 2

German marks
Japanese yen
Pounds sterling

32,154,441

Total assets

Liabilities

and

1,078.388

3,101.007

4,523

359.753
1.067,000
11,239,666

517.744
-153.635
783.051
2.404
2,670

20,647

8,350,451
9,935,276

29,049
33,992
252,745

34.368.939

capital

liabilities:

Accounts payable
Advance from U.S. Treasury (U.S. drawing
on IMF) 3
Total current

Other

355,230
1,067,000
10.721.922
8,504,086
9.152,225
26,645
31 ,322
273,392

Swiss francs
Accounts receivable

Current

2,022,61

liabilities

liabilities:

Special drawing rights certificates
Special drawing rights alkjcatbns

Total other

liabilities

Capital:
Capital account

Net income (loss) (see table ESF-2)

Total capital

Total

liabilities

and

capital

83.660

81,960

1,067,000

1,067,000

1,150,660

Glossary

142

Expanded, With References

to Applicable Sections

Accrued discount (SBN-1,

-2, -3)-lnterest that accumulates on
savings bonds from die date of purchase until the date of redemption
or final maturity, whichever comes first. Series A, B, C, D, E, EE, F,
and J are discount or accrual type bonds-meanirig principal and
interest are paid when bonds are redeemed. Series G, H, HH, and K
are cument-income bonds, and the semiannual interest paid to their
holders is not included in accrued discount.

Discount-The

interest

and Tables

deducted

in

advance when purchasing notes

or bonds. (See Accrued discount)

Discount rate (PD0-2)-The difference between par value and the
actual purchase price paid, annualized over a 360-day year. Because
this rate is less than the actual yield (coupon-equivalent rate), the yield
should be used in any comparison with coupon issue securities.

Amounts outstanding and

Dollar coins (USCC)-lnclude standard silver and nonsilver coins.

excluded; however, uncirculated coin sets sold at face value plus
handling charge are included.

Domestic series (FD-2)-Nonmari<etable, interest and non-interestbearing securities issued periodically by Treasury to the Resolution
Funding Corporation (RFC) lor investment of funds authorized under
section 21 B of the Federal Home Loan Bank Act (12 U.S.C. 1441b).

In circulation (USCC)-lncludes all issues by the Bureau ofthe Mint purposely intended as a medium of
exchange. Coins sold by the Bureau of the Mint at premium prices are

Average discount rate (PDO-2, -3)-ln Treasury bill auctions, purchasers tender competitive bids on a discount rate basis. The average
discount rate is the weighted, or adjusted, average of all bids accepted
in

the auction.

Budget authority ("Federal Rscal Operatlons")"Congress passes
laws giving budget authority to Government entities, which gives the
agencies the power to spend Federal funds. Congress can stipulate
various criteria forttie spending of these funds For example. Congress
can stipulate that a given agency must spend within a specific year,
number of years, or any time

in the future.

The basic forms of budget authority are appropriations, authority to
borrow, and contract authority. The period or time during which Congress makes funds available may be specified as 1 -year, multiple-year,
or no-year. The available amount may tie classified as either definite
or indefinite; a specific amount or an unspecified amount can be made
available. Authtority may also be classified as current or permanent.
Permanent authonty requires no current action by Congress,

Budget deficit" The

total, cumulative amount by which budget outlays
(spending) exceed budget receipts (income).

Capital ("Federal Obllgatlons")~Assets, such as land, equipment,

and

Federal Intrafund transactions ("Federal Fiscal Operatlons">-lntrabudgetary transactions in which payments and receipts both occur
within he same Federal fund group (F^ederal funds or tmst funds).
Federal Reserve notes (USCC)-lssues by the U.S. Government to
Reserve tjanksand their member banks.
They represent money owed by the Government to the public. Currently, tne item "Federal Resen/e notes-amounts outstanding' consists of new series issues. The Federal Reserve note is the only class
of currency currently issued.
the public through the Federal

Foreign ("Foreign Currency Positions," IFS-2, -3)-(international)
Locations other than those included under the definition of the United
States. (See United States.)
Foreigner ("Capital Movements," IFS-2)~AII institutions and individuals living outside the United States, including U.S. citizens living
abroad, and"branches, subsidiaries, and other affiliates abroad of U.S.
banks and business concerns; central governments, central banks,
and other official institutions of countries other than the United States,
and international and regional organizations, wherever located. Also,
refers to persons in the United States to the extent that they are known
by reporting institutions to be acting for foreigners.

financial reserves.

Movements")~lncludes cencountnes, including all departments and
agencies of national govemments; central banks, exchange authorities, and all fiscal agents of foreign national govemments that undertake activities similar to those of a treasury, central bank, or
stabilization fund; diplomatic and consular establishments of foreign
Foreign

Cash management

(PDO-2)-Mari<etable Treasury bills of irregular maturity lengths, sold periodically to fund short-term cash
needs of Treasury. Their sale, having higher minimum and multiple
purchase requirements than those oT other issues, is generally rebills

stricted to competitive bidders.

Competitive tenders C'Treasury Financing Operatlons")-A bid to
purchase a stated amount of one issue of Treasury securities at a
specified yield or discount. The bid is accepted if it is within the range
accepted in the auction. (See Noncompetitive tenders.)

tral

official Institutions ("Capital

govemments

of foreign

national govemments;
including subordinate

and any international or regional organization,
and affiliate agencies, created by treaty or

convention between sovereign states.

Forelan public borrower ("Capital Movements")~lncludes foreign
as defined above, the corporations and agencies
of foreign central govemments, including development banks and
institutions, and other agencies that are majority-owned by the central
official institutions,

Coupon Issue-The

issue of bonds or notes (public debt).

Currency no longer Issued (USCC)-Old and new series gold and
silver certificates, Federal Reserve notes, national bank notes, and
1890 Series Treasury notes.
Current Income bonds ("U.S. Savings Bonds and Note8"|-Bonds
paying semiannual interest to holders. Interest is not included in
accrued discount.

Debt outstanding subject to limitation (FD-6)-The debt incurred by
the Treasury subject to the statutory limit set by Congress. Until Woria
War 1, a specific amount of debt was authorized to each separate
security issue. Beginning with the Second Liberty Loan Act of 1917,
the nature of the limitation was modified until, in 1941 it developed into
an overall limit on the outstanding Federal debt. In 1991 the debt limit
was $4,145,000 million; the limit may change from year to year.
,

govemment or its departments; and
ments

of foreign countries

and

their

state provincial

and

local

govem-

departments and agencies.

Forelgn-taraeted Issue (PDO-1, -3)-- Foreign-targeted issues were
notes sold between October 1984 and February 1986 to foreign
institutions, foreign branches of U.S. institutions, foreign central banks
or monetary authorities, or to intemational organizations in which the
United States held membership. Sold as companion issues, they could
be converted to domestic (normal) Treasury notes with the same
maturity and interest rates. Interest was paid annually.

(USCC)-Coins minted in denominations
and minor coins (5 cents and 1 cent).

Fractional coins

and

1

cents,

of 50, 25,

,

The debt

subject to limitation includes most of Treasury's public debt

except securities issued to the Federal Financing Bank, ufXDn which
there is a limitation of $15 billion, and certain categories of older debt
(totaling approximately $595 million as of February 1991).

Govemment account series (FD-2)-C6r1ain trust fund statutes require the Secretary of the Treasury to apply monies held by these funds
toward ttie issuance of nonmarketable special securities. These securities are sold directly by Treasury to a specific Govemment agency,
trust fund, or account, their rate is based on an average of market
yields on outstanding Treasury obligations, and they may be redeemed
at the option of the holder. Roughly 80 percent of these are issued to

Glossary

Federal old-age and survivors insurance trust fund;
sen/ice retirement and disability fund; the Federal fiospitai
insurance trust fund; the military retirement fund; and the unemploy-

143

five holders: the

Receipts ("Federal Fiscal Operatlons")-Funds collected from

the

ing land, capital, or sen/ices, as well as collections from the public
(budget receipts), such as taxes, fines, duties, and fees.

civil

ment

sell-

trust fund.

International Monetary Fund ("Exchange Stabilization Fund,"
IFS-I)-(IMF) Established by the United Nations, the IMF promotes
international trade, stability of exchange, and
Members are allovi^ed to draw from the fund.

monetary cooperation.

Interfund transactions ("Federal Rscal Operatlon3")-Trans-actions in which payments are made from one fund group (either Federal
funds or trust funds) to a receipt account in another group.

Intrabudgetary transactions ("Federal Rscal Operatlons")-These
occur when payment and receipt both occur within the budget, or when
payment is made from off-budget Federal entities whose budget
authority and outlays are excluded from the budget totals.

Majority-owned foreign partnerships ("Foreign Currency Posltlon8")-Partnerships organized under the laws of a foreign country in
which one or more U.S. nonbanking concerns or nonprofit institutions,
directly or indirectly, owns more than 50 percent protit interest.
Majority-owned foreign subsidiaries ("Foreign Currency Positions")— Foreign corporations in which one or more nonbanking business concerns or nonprofit institutions located in the United States,
directly or indirectly, owns stock with more than 50 percent of the total
combined voting power, or of the total value of all classes of stock.

Reopening (PDO-3, -4)-The offer for sale of additional amounts of
outstanding issues, rather than an entirely new issue. A reopened
issue will always have the same maturity date, CUSIP-number. and
interest rate as the original issue.
Short-term ("Foreign Currency Posltlons")-Securilies maturing
1 year or less.

Special drawing tights ("Exchanae Stabilization Fund," IFS-1)Intemational assets created by IMF fiat serve to increase international
liquidity

tween May 1967 and October 1970 have a final maturity of 30 years.
Series Hhl bonds (issued since January 1 980) mature after 20 years.

Noncompetitive tenders ("Treasury Rnancing Operatlon8")-Ofan investor to purchase Treasury securities at the price
equivalent to the weighted average discount rate or yield of accepted
competitive tenders in a Treasury auction. Noncompetitive tenders are
always accepted in full.

and provide

additional intemational reserves.

purchased and sold among

eligible

SDRs may

be

holders through IMF. (See IMF.)

SDR allocations are the counterpart to SDRs issued by IMF based
on members' quotas in IMF. Although shown in exchange stabilization
fund (ES(^ statements as liabilities, they must iDe redeemed by ESF
in the event of liquidation of, or U.S. withdrawal from,
department of IMF or cancellation of SDRs.

only

SDR

tfie

SDR certificates are

issued to the Federal Reserve System against
legalized as money. Proceeds of monetization
are deposited into an ESF account at the Federal Reserve Bank of

SDRs when SDRs are
New Yori<.

Spot ("Foreign Currency Posltlons")-Due
witfiin

Matured non-lnterest-bearing debt (SBN-1, -2, -3)-The value of
outstanding savings bonds ana notes that have reached final maturity
and no longer earn interest. Includes all Series A-D, F, G, J, and K
bonds. Series E bonds (issued between May 1941 and November
1965), Series EE fissued since January 1980), Series H (issued from
June 1952 througn December 1979), and savings notes issued t>6-

in

for receipt or delivery

2 wori<aays.

government series (FD-2)~(SLUGs) Special nonmari^etable certificates, notes, and bonds offered to State and local
qove mments as a means to invest proceeds from thei r own tax-exem pt
financing. Interest rates and maturities comply with IRS arbitrage
provisions. SLUGS are offered in iDoth time deposit and demand
deposit forms. Time deposit certificates have matunties of up to 1 year.
Notes mature in 1 to 1 years and txinds mature in more than 1 years.
Demand deposit securities are 1 -day certificates rolled over with a rate
Slate and local

adjustment

daily.

fers by

Obligation ("Federal Obllgatlons")-An unpaid commitment to acquire

goods or services.

Off-budget Federal entitles ("Federal Fiscal Operation8")~Federowned and controlled entitles whose transactions are excluded
from the budget totals under provisions of law. Their receipts, outlays,
and surplus or deficit are not included in budget receipts, outlays, or
deficits. Their budget authority is not included in totals of the budget.

ally

Statutory debt limit (FD-6)-By Act of Congress there is a limit, either
temporary or permanent, on the amount of public debt that may be
outstanding. When this limit is reached. Treasury may not sell new debt
issues untrT Congress increases or extends the limit. For a detailed
listing of changes in the limit since 1941 see the Budget of the United
States Govemment. (See Debt outstanding subject to limitation.)
,

STRIPS fPDO-1, -3)-Separate Trading

of Registered Interest

and

may be divided into
may be transferred
STRIPS are sold at auction

Principal Securities. Long-term notes and bonds
principal and interest-paying components, which

and sold in amounts as small as $1,000.
at a minimum par amount, varying for each

issue.
arithmetic function of the issue s interest rate.

The amount

is

an

Own foreign offices ("Capital

l\/lovements")-Refers to U.S. reporting institutions' parent oiiganizations, branches and/or majority-owned
siJDsidiaries located outside the United States.

Treasury bllls-The shortest term Federal security (maturity dates
normally varying from 3 to 1 2 months), they are sold at a discount.

Outlays ("Federal Rscal Operatlons")-(expendltures, net disbursements) Payments on obligations in the form of cash, checks, the
issuance of bonds or notes, or the maturing of interest coupons.

Trust fund transaction ("Federal Fiscal Operatlon8")-An infrabudgetary transaction in which both payments and receipts occur

Par value- The face value of bonds or notes, including

United States-Includes the 50 States, District of Columbia, Commonwealth of Puerto Rico, American Samoa, Midway Island, Virgin Islands,
Wake Island, and all other territories and possessions.

interest.

Quarterly financing ("Treasury Rnancing Operations")- Treasury
has historically offered packages of several "coupon" security issues
on the 15th of February, May, August, and November, or on the next
wori<ing day. These issues currently consist of a 3-year note, a 1 0-year
note, and a 30-year bond. Treasury sometimes offers additional
amounts of outstanding long-term notes or txsnds, rather than selling
new security issues. (See Reopening.)

within the

same

trust

fund group.

U.S. notes (USCC)~Legal tender notes of five different issues:
($5-$1 ,000 notes); 1862 ($1-$2 notes); 1 863 ($5-$1 ,000 notes);
($1 -$10,000 notes); and 1901 ($10 notes).

Worldwide ("Foreign Currency Poslllon")-Sum
and "foreign trade.

1862
1863

of "United States"

3 3 a s

<A.

Li3
-T

is

-

s
1

w
fi;

1^^

-5

s

1

^

'I

^

a

Mil

I

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Issue

PROFILE OF THE ECONOMY
LEADING INDICATORS
The

Ratio Scale:1 982=1 00

index of leading indicators

edged up in a modest 0.2 percent in
March after gains of 0.8 percent in
February and 1 .0 percent in January.
was the first time the index has
risen for 3 straight months since mid1991. The March increase was less
than expected and not broadly basedonly consumer expectations and
commodity prices were significantly
It

improved.

Two

other of the

components were

1

slightly positive,

while the remaining seven

were

1

weak. But several components, such
as

initial

unemployment

contribute to a rise

O

M91 A

claims, could

1

1

N D

1

r

J92 F

M

in April.

150

69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92
*

Note: Gray bare indicale recessions. The end of the current recession, which

See page 23

for

more

off icially

began

in

July of 1990. has not yet

of Profile of the

been determined

Economy