Greenbook/Tealbook

Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act. 1 In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing). 2 A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff. Content last modified 6/05/2009. CONFIDENTIAL (FR) SUPPLEMENT CURRENT ECONOMIC AND FINANCIAL CONDITIONS Prepared for the Federal Open Market Committee September 15, By the Staff Board of Governors of the Federal Reserve System 1972 SUPPLEMENTAL NOTES The Domestic Economy Industrial production. The Board's index of industrial production rose 0.5 percent further to 114.3 (1967=100) in August, a level 8.2 percent above a year earlier. The July index has been revised up slightly to 113.7 and the June index up to 113.4. The August increase reflected widespread gains in output among final products and materials, with business equipment, defense equipment and steel especially strong. (Very confidential until release September 18 afternoon.) Sales of new domestic-type autos in the first 10 days of September were at a 6.5 million unit annual rate, down 30 percent from the corresponding periods a month and a year earlier. The drop in sales was due in large part to the reduced level of stocks, the lowest since December 1970 after the GM strike, and to the impending sales of 1973 models at 1972 prices--few of which have been pre-sold before their introduction later this month. Personal income in August rose $6.9 billion to a seasonally adjusted annual rate of $939.8 billion. This followed a gain of $10 billion now shown for July--the magnitude of which reflected large capital losses incurred in the floods in the Northeast being charged against proprietors' and rental incomes in June. Apart from proprietors' and rental income personal income rose $6.4 billion in August, compared to $3.2 billion in July. -2Wage and salary disbursements rose by $5 billion, or 9.6 percent annual rate, and accounted for most of the August increase in personal income. Manufacturing payrolls rose $2 billion, following a small decline in July. Increases in employment, hours, and hourly earnings contributed to the advance, with the latter accounting for more than half the rise. PERSONAL INCOME (Billions of dollars; seasonally adjusted, annual rates) June Total Wage and salary disb. Commodity-producing Distributive Services Government Proprietors' income Rental income of persons Other non-wage income 1972 July August Net Change July 1972Aug. 1972 922.9 932.9 939.8 6.9 624.0 223.5 151.4 115.5 113.6 71.6 21.5 241.1 625.7 222.4 151.9 116.8 134.5 74.3 630.7 225.2 152.8 117.1 135.7 74.9 25.9 244.0 5.0 2.8 .9 .2 1.2 .6 .1 1.4 25.8 242.6 Less: Personal contributions for social insurance 35.3 35.3 35.5 35.5 35.7 35.7 .2 .2 - 3 The Domestic Financial Situation Capital markets. Yields on new corporate bond issues started to rise again this week after several slow-moving recent issues were freed from price restrictions, resulting in upward yield adjustments on these bonds of 6 to 10 basis points. Dealers are now in a better technical position, since syndicate inventories are at a low level and secondary positions have been reduced in recent weeks as yields on seasoned issues rose above returns on newly issued securities of comparable rating. Data from the most recent Survey of State and Local Long-term Borrowing Anticipations and Realizations indicate that as of June 30, 1972 such government units planned to issue $6.0 billion of long-term bonds in the third quarter. On the basis of actual sales for July and August and scheduled issues in September, it appears that long-term borrowing may be as much as $500 million below anticipations. However, the October calendar has built up rapidly during the past week, and some of these issues may have originally been planned for the third quarter. -4INTEREST RATES 1972 Highs Lows Aug. 14 Sept. 14 Short-Term Rates Federal funds (wkly. avg.) 4.90 (8/30) 3-month Treasury bills (bid) Comm. paper (90-119 day) Bankers' acceptances Euro-dollars CD's (prime NYC) Most often quoted new 4.74 5.00 5.12 5.94 6-month Treasury bills (bid) Conm. paper (4-6 mo.) Federal agencies CD's (prime NYC) Most often quoted new (9/11) (9/14) (9/14) (3/27) 3.18 (3/1) 2.99 3.75 3.83 4.62 4.69 (2/11) 3.87 (2/29) (2/23) 4.75 (3/8) (8/9) 4.69 (9/13) 4.70 5.00 5.12 5.38 5.00 5.44 5.00 (9/13) 3.50 (2/23) 4.62 5.15 (9/14) 5.12 (9/14) 5.45 (9/11) 3.35 (1/10) 3.88 (3/3) 3.79 (2/17) 4.44 4.75 4.78 5.38 (9/13) 3.88 (2/23) 5.00 5.47 (9/14) 5.76 (9/14) 3.57 (1/8) 4.32 (1/17) 4.74 5.11 5.62 (9/13) 3.20 (9/14) 4.62 (1/19) 2.35 (1/12) 5.38 2.90 Treasury coupon issues 5-years 20-years 6.30 (9/14) 6.04 (9/14) 5.47 (1/13) 5.95 (1/14) 5.96 5.93 6.30 6.04 Corporate Seasoned Aaa Baa 7.37 (4/24) 8.29 (1/3) 7.14 (1/17) 8.09 (9/14) 7.19 8.22 7.23 8.09 7.42 (4/14) 6.86 (1/14) 7.24 (8/9) 7.32 Municipal Bond Buyer Index 5.54 (4/13) 4.99 (1/13) 5.24 (8/9) 5.38 Mortgage--implicit yield in FNMA auction 1/ 7.63 (9/6) 7.54 (3/20) 7.63 (8/9) 7.63 (9/6) 1-year Treasury bills (bid) Federal agencies CD's (prime NYC) Most often quoted new Prime municipals (8/9) 5.00 (9/13) 5.15 5.12 5.41 (8/9) 5.38 (9/13) 5.47 5.76 (8/9) (8/11) 5.62 (9/13) 3.20 Intermediate and Long-Term New Issue Aaa 1/ Yield on short-term forward commitment after allowance for commitment fee and required purchase and holding of FNMA stock. Assumes discount on 30-year loan amortized over 15 years. - 5 - CORRECTIONS Page I-5 1972 Proj. 1973 Proj. III 96.8 113.6 100.0 106.0 93.2 106.7 95.5 99.7 226.4 -24.8 243.8 -28.9 226.3 -17.5 232.7 -45.5 Corporate profits before tax 16.2 17.4 29.6 24,0 Federal government receipts and expenditures (N.I.A. basis) Receipts 13.7 7.7 1.6 11.3 Corporate profits before tax Corp. cash flow, net of div. (domestic) Federal government receipts and expenditures (N.I.A. basis) Receipts Surplus or deficit 1972 Proj. IV Page I-6 Page 11-23 FEDERAL BUDGET AND FEDERAL SECTOR IN NATIONAL INCOME ACCOUNTS Table. The National Income Sector figures should be as follows in dollars: Calendar Year 1972 1/ Surplus/deficit Receipts Fiscal 1973 e/ F.R. Board billions of F.R.o. Staff Estimates 1973 1972 I II IV III -24.7 -35.3 -175 -45.5 -38.3 -39.9 226.5 231.0 226.3 232.7 234.2 230.7 Page I-6 Industrial production increase in 3.5 percent annual rate, not 7.4. the third quarter 1972 should be A-1 SUPPLEMENTAL APPENDIX A QUARTERLY SURVEY OF BANK LENDING PRACTICES * The August 15 Survey of Changes in Bank Lending Practices indicated that most banks expected some increase in loan demands over the next three months, and some banks have already tightened terms and conditions of lending. As in previous surveys, however, banks showed a greater willingness to make term and consumer installment loans -a fact which may be connected with banks' ample holdings of liquid assets. The increased desire to make term loans, furthermore, appears to be part of a continuing bank response to the pressures exerted by customers' use of capital market financing as an alternative to bank borrowing. More than half of the 125 respondents participating in the survey reported continued strengthening in loan demand since the date of the last survey in May. (See Table 1.) Nearly three-fourths of the participants, moreover, anticipated even stronger demand through November, and none expected a decline in lending activity. With the pick-up in business activity, some banks had adopted firmer interest rate policies, based on the one-fourth of a percentage point increase in the prime rate during the interval covered by the current survey. A few of the banks (about 10 per cent) had also tightened balance requirements and standards of credit worthiness. In additionabout 10 per cent of the respondents indicated applications from new customers were reviewed somewhat more critically, while all loan applications were screened more closely with an eye toward the applicants value as a depositor or source of collateral business. Segregation of responses by size of banks reflected stronger loan demands experienced at smaller banks (with less than $1 billion A greater proportion of smaller banks (See Table 2.) in deposits). raised interest rates in lending to businesses and nonbank financial institutions. These banks were more critical of the borrower's potential value as a source of collateral business when reviewing applications for loans; balance requirements for finance companies were more stringent. Smaller banks, though, were more willing to add to their portfolios of consumer loans. Larger banks, however, were more aggressive in expanding brokers' loans. * Prepared by Marilyn Barron, Research Assistant, Banking Section, Division of Research and Statistics. A- 2 In contrast to some firming of loan policies, a greater willingness to make term loans was noted by nearly 20 per cent of respondents, some with easier terms than three months previously. A similar proportion of the respondents indicated a more favorable posture toward installment loans to consumers. A smaller proportion indicated some increase in their willingness to make single family mortgages. The increased willingness to make term loans on easier terms has been a spreading phenomenon among respondents that has gone on now for at least four quarters, with some banks in August indicating that they were forced by competition to adopt such policies. Even though corporate security offerings in the capital markets have moderated this year, they remain quite large by historical standards. Apparently, banks have become concerned about the competitive inroads made in their markets and have been attempting to recapture customers by offering loans similar to an intermediate-term security (e.g. no amortization of principal and an upper bound on a floating interest rate). It should be noted, however, that term loans at large banks have shown only modest increases recently, and remain below the levels reached in the spring of 1971. This could reflect the fact that fixed rate security issues to nonbank investors appear more attractive at this time to borrowers than a term loan, the rate on which can rise -even if the amount of the permitted increase is limited. NOT FOR QUOTATION OR PUBLICATION PAGE A3 TABLE 1 QUARTERLY SURVEY OF CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS IN THE U.S. 1/ AUGUST 15, 1972 COMPARED TO THREE MONTHS EARLIER) (STATUS OF POLICY ON (NUMBER OF BANKS & PERCENT OF TOTAL BANKS REPORTING) MUCH STRONGER TOTAL BANKS PCT BANKS PCT MODERATELY STRONGER BANKS PCT ESSENTIALLY UNCHANGEO BANKS PLT MODERATELY WEAKER BANKS PCT MUCH WEAKER BANKS PCT STRENGTH OF DEMAND FOR COMMERCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCE FOR BANK'S USUAL SEASONAL VARIATION) COMPARED TO THREE MONTHS AGO 125 100.0 65 52.0 51 40.8 ANTICIPATED DEMAND IN NEXT 3 MONTHS 125 100.0 86 68.8 35 28.0 ANSWERING QUESTION BANKS PCT MUCH FIRMER POLICY BANKS PCT MODERATELY FIRMER PULICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY BANKS BANKS BANKS PCT PCT PCT MUCH EASIER POLICY BANKS PCT LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONDITIONS: INTEREST RATES CHARGED 100.0 1.6 39.2 56.8 2.4 0.0 COMPENSATING OR SUPPORTING BALANCES 100.0 0.8 10.4 83.2 5.6 0.0 STANDARDS OF CREDIT WORTHINESS 100.0 0.0 8.0 91.2 0.8 0.0 MATURITY OF TERM LOANS 100.0 0.0 4.8 76. 18.5 0.0 ESTABLISHED CUSTOMERS 100.0 0.0 2.4 92.8 4.8 0.0 NEW CUSTOMERS 100.0 0.8 9.7 83.9 5.6 0. LOCAL SERVICE AREA CUSTOMERS 100.0 10.0 0.0 2.4 93.6 4.0 0.0 NONLOCAL SERVICE AREA CUSTOMERS 100.0 2.4 8.8 82.4 6.4 0.0 REVIEWING CREDIT LINES OR LOAN APPLICATIONS 1/ SURVEY OF LENDING PRACTICES AT 125 LARGE BANKS REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY AS OF AUGUST 15, 1972. NOT FOR QUOTATION OR PUBLICATION TABLE ANSWERING QUESTION HANKS PCT PAGE A4 I (CONTINUED) MUCH FIRMER POLICY BANKS PCT MODERAT LY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY BANKS PCT BANKS BANKS PLT PGr MUCH EASIER POLICY BANKS PCT FACTORS RELATING TO APPLICANT 2/ VALUE AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS 125 100.0 3.2 8. 0 108 86.4 INTENDED USE OF THE LOAN 125 100.0 0.8 3.2 119 95.2 LENDING TO "NONCAPTIVE" FINANCE COMPANIES TERMS AND CONDITIONS: INTEREST RATES CHARGED 100.0 26.4 90 72.0 L.6 COMPENSATING OR SUPPORTING BALANCES 100.0 2.4 118 94.4 3.2 ENFORCEMENT OF BALANCE REQUIREMENTS 100.0 6.4 114 91.2 2.4 ESTABLISHING NEW OR LARGER CREDIT LINES 100.0 8.0 98 78.4 ANSWERING QUESTION BANKS PCT CONSIDERABLY LESS WILLING BANKS PCT 11.2 MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MOOERATELY MORE NILLING BANKS PCT BANKS BANKS POT PLT CONSIDERABLY MURE WILLING HANKS PCT WILLINGNESS TO MAKE UTHER TYPES OF LOANS 2/ U C.O 10.7 0 0 0.0 TERM LOANS TO BUSINESSES 100.0 0 0.0 8 6.4 95 76.0 22 17.6 CONSUMER INSTALMENT LOANS 100.0 1 0.8 U 0.0 98 79.7 23 18.1 SINGLE FAMILY MORTGAGE LOANS 100.0 0 0.0 6 4.9 103 84.4 13 MULTI-FAMILY MORTGAGE LOANS 100.0 2 1.7 8 6.6 106 87.6 5 4.1 O ALL OTHER MORTGAGE LOANS 100.0 3 2.5 5 4.1 99 81.8 14 11.6 0U 0.0 0.0 0 0.0 0.0 PARTICIPATION LOANS WITH CORRESPONDENT BANKS 123 100.0 114 92.7 7 5.7 LOANS TO BROKERS 121 100.0 109 90.1 8 6.6 FOR THESE FACTORS, FIRMER MEANS THE FACTORS WERE LONSIDEREU MORE CREDIT REQUESTS, AND EASIER MEANS THEY WERE LESS IMPORTANT. IMPORTANT IN MAKING DECISIONS IUO APPRUVING U NOT FOR QUOTATION OR PUBLICATION TABLE 2 PAGE A5 COMPARISON OF QUARTERLY CHANGES IN BANK LENDING PRACTICES AT BANKS GROUPED BY SIZE OF TOTAL DEPOSITS 1/ (STATUS OF POLICY ON AUGUST 15, 1972, COMPARED TO THREE MONTHS EARLIER) (NUMBER OF BANKS IN EACH COLUMN AS PER CENT OF TOTAL BANKS ANSWERING QUESTION) SIZE TOTAL OF BANK MUCH STRUNGER $1 & OVER UNDER $1 -- TOTAL DEPOSITS IN BILLIONS MODERATELY STRONGER ESSENTIALLY UNCHANGED $t & OVER $1. UVER UNDER $1 UNDER I$ MODERATELY WEAKER $1 & OVER UNDER St MUCH WEAKER $1 C UVER UNDER $1 $1 & OVER UNDER $1 100 100 2 3 54 51 37 43 7 3 0 0 100 100 2 4 80 61 18 35 0 0 0 0 STRENGTH OF DEMAND FOR CCMMERCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCE FOR BANK'S USUAL SEASONAL VARIATION) COMPARED TO THREE MONTHS AGO ANTICIPATED DEMAND IN NEXT I MONTHS TOTAL MUCH FIRMER MODERATELY FIRMER ESSENTIALLY UNCHANGED MODERATELY $1 & OVER $1 E OVER $1 & UVER EASIER MUCH EASIER St & OVER $1 & OVER UNDER $1 INTEREST RATES CHARGED 100 100 0 3 26 49 72 45 2 3 0 0 COMPENSATING OR SUPPORTING BALANCES 100 100 0 1 2 17 87 81 11 1 0 0 STANDARDS OF CREDIT WORTHINESS 100 100 7 8 91 92 2 0 0 0 MATURITY OF TERM LOANS 100 100 0 0 2 7 70 82 28 11 0 0 ESTABLISHED CUSTOMERS 100 100 0 0 4 1 89 96 7 3 0 0 NEW CUSTOMERS 100 100 0 1 9 10 83 8S 8 4 0 0 LOCAL SERVICE AREA CUSTOMERS 100 100 0 0 4 1 89 98 1 I G 0 NONLOCAL SERVICE AREA CUSTOMERS 100 100 2 3 6 t1 83 82 9 4 0 0 S1 & OVER UNDER $1 UNDER $1 UNDER $1 UNDER $1 UNDER SL LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONDITIONS: 0 REVIEwING CREDIT LINES OR LOAN APPLICATIONS 54 LARGE BANKS (DEPOSITS OF Si BILLION OR MORE) AND 1/ SURVEY OF LENDING PRACTICES AT l$ BILLION) REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY AS UO 71 SMALL HANKS (UEPUSITS AUGUST lth 1972. OF LESS THAN TABLE 2 NOT FOR QUOTATION OR PUBLICATION OF HANK MUCH FIRMER POLICY SIZE NUMBER ANSWERING QUESTION $1 t OVER FACTORS UNDER $1 $1 & OVER UNDLR $1 TOTAL DEPOSITS IN BILLIONS -MODERATELY ESSENTIALLY MODERATELY EASIER FIRMER UNCHANGED POLICY POLICY POLICY $1 & OVER UNDER $1 SL & OVER UNDER $l $1 & OVERK UNDER $t MULH EASIER POLICY $1 & UVER UNDER S1 RELATING TO APPLICANT 2/ VALUE AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS 100 100 0 6 INTENDED 100 100 0 1 2 3 LENDING PAGE A6 (CONTINUED) USE THE LOAN OF TO "NONCAPTIVE" FINANCE COMPANIES TERMS AND CONDITIONS: INTEREST RATES CHARGED COMPENSATING OR ENFORCEMENT OF SUPPORTING BALANCES BALANCE REUUIREMENrS ESTABLISHING NEW OR LARGER CREDIT LINES NUMBER ANSoERING QUtSTION $1 & OVER WILLINGNESS TO MAKE TERM LOANS OTHER TYPES TO BUSINESSES UNDER S1 CONSIDERABLY LESS WILLING $1 & UNDER OVER $i MODERATELY LESS WILLING ESSENTIALLY UNCHANGED $1 & OVER $1 & OVER UNDER $1 UNDER S1 MODERATELY MORE WILLING S1 E OIVR OF LOANS 100 100 INSTALMENT LOANS 100 100 FAMILY MORTGAGE LOANS 10U 100 100 100 100 100 PARTICIPATION LOANS WITH CORRESPONDENT BANKS 100 100 2 1 96 90 2 LOANS TO 100 IOU 2 3 85 94 11 CONSUMER SINGLE MULTI-FAMILY MORTGAGE ALL OTHER LOANS MORTGAGE LOANS BROKERS UNDER I 2/ FOR THESE FACrORS, FIRMER MEANS THE FACTORS WERE CONSIDERED MORE CREDIT REQUESTS. AND EASIER MEANS THEY WERE LESS IMPORIANT. IMPORIANT IN MAKING DECISIONS FOR APPROVING CONSIDERABLY MURk WILLING St & UVER UNDER $I NOT FOR QUOTATION OR PUBLICATION TABLE PAGE A7 3 QUARTERLY SURVEY OF CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS IN THE U.S. 1/ AUGUST 15, 1972 COMPARED TO THREE MONTHS EARLIER STATUS OF POLICY ON (NUMBER OF BANKS) ALL DSTS BOSTON NEW YORK TOTAL CITY OUTSIDE PHILADEL. CLEVE- RICHMONO LAND ST. ATLAN- CHICAGO LOUIS TA UALLAS MINNEAPOLIS KANS. CITY 0 4 0 4 SAN FRAN STRENGTH OF DEMAND FOR COMMERCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCE FUR BANK'S USUAL SEASONAL VARIATION) COMPARED TO 3 MONTHS AGO 125 3 65 51 6 0 MUCH STRONGER MODERATELY STRONGER ESSENTIALLY UNCHANGED MODERATELY WEAKER MUCH WEAKER ANTICIPATED DEMAND NEXT THREE MONTHS 0 1 10 O 1 0 1 3 6 0 0 0 12 1 2 0 0 5 4 0 0 0 1 2 0 0 U 5 1 0 0 0 7 4 0 0 1 11 0 u 0 1 4 5 0 0 2 12 1 0 0 U0 7 2 U 0 1 3 6 1 C U 3 3 0 0 0 2 9 0 0 0 4 8 0 0 0 4 6 0 0 1 3 11 1 3 6 1 0 0 0 6 0 0 0 1 8 2 0 0 1 11 0 0 0 1 9 0 0 O 5 3 0 0 0 12 6 2 0 0 5 2 2 0 0 7 4 0 0 0 2 4 0 0 0 3 8 0 6 2 0 0 0 13 7 0 0 0 7 2 0 0 u 6 5 0 0 0 5 3 0 0 1 5 13 1 0 0 2 7 0 0 0 0 8 0 0 1 3 14 2 0 0 0 8 1 0 1 4 7 5 5 0 U 0 2 1 O 0 0 5 4 0 0 0 5 4 O 0 0 9 4 0 0 0 2 1 0 U 0 4 5 0 o 0 5 4 0 0 0 7 U 0 5 3 1 0 0 1 14 0 0 0 1 8 U 0 0 0 3 0 0 0 2 1 0 0 0 2 7 0 0 0 1 9 3 0 125 MUCH STRONGER MODERATELY STRONGER ESSENTIALLY UNCHANGDL MODERATELY WEAKER MUCH WEAKER 4 86 35 O 0 LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONDITIONS INTEREST RATES CHARGFD 125 MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY COMPENSATING BALANCES SURVEY OF LENDING PRACTICES AUGUST 15, 1972. AS OF 0 o 125 MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY I/ 2 49 71 3 0 1 13 104 7 0 AT 125 LARGE BANKS REPORTING IN THE FEDERAL RESERVE UUARTERLY INTEREST RATE SURVEY NOT FOR QUOTATION OR PUBLICATION TABLE ALL OSTS BOSTON NEW YORK TOTAL CITY OUTSIDE 3 PAGE A8 (CONTINUED) PHILADEL. CLEVELAND RICHMONO ATLAN- CHIAGO TA ST. LOUIS MINNE- KANS. LITY APOLIS DALLAS SAN FRAN LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONOITIONS STANDARDS OF CREDIT WORTHINESS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY MATURITY OF TERM LOANS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATEEY EASIER POLICY MUCH EASIER POLICY REVIEWING CREDIT MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY 0 6 0 0 0 0 11 0 0 0 1 IL 0 0 0 2 8 0 U 1 13 1 0 0 2 9 0 0 0 0 4 2 0 1 9 1 0 U 12 0 0 0 U 9 1 0 0 0 9 0 O 0 0 11 0 0 0 1 5 U 0 0 9 2 0 0 0 12 0 0 J 2 15 2 0 U 0 8 0 0 O 2 7 2 0 0 1 5 O 2 7 2 0 0 0U 20 0 0 0 0 0 11 0 0 0 U 9 2 1 0 0 8 0 0 0 2 18 0 0 0 9 0 0 9 0 0 0 0 7 1 0 0 2 12 5 0 0 3 5 0 0 0 8 0 0 U 0 20 0 0 0 0 8 0 0 0 0 8 0 0 0 2 0 2 1 0 0 0 0 3 0 0 0 1 B O 0 0 0 9 0 0 0 1 12 U 0 0 L 12 2 0 0 8 1 0 0 0 3 0 0 0 0 7 2 0 0 O 6 3 0 6 5 0 0 0 9 1 0 0 0 15 0 0 U 1 8 U 0 0 0 3 0 0 0 0 9 U C 0 0 8 1 0 0 1 10 2 0 O 0 12 0 0 1 1 8 0 0 0 0 15 0 0 U 2 7 0 0 0 0 0 U u 1 1 1 U 0 0 11 1 0 0 0 10 0 0 0 0 15 0 1 8 0 0 U 0 3 0 0 u 0 9 0 0 124 0 6 9! 23 O 0 125 0 3 116 6 0 124 NEW CUSTOMERS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY SERVICE 0 10 114 1 0 LINES OR LOANS ESTABLISHED CUSTOMERS LOCAL 125 AREA CUSTOMERS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY 1 12 104 7 G 0 0 U 1 8 0 U 0 2 9 2 125 0 3 117 5 0 9 0 O 0 1 5 0 0 0 0 0U 0 9 0 0 1 to 2 U NOT FOR QUOTATION OR PUBLICATION TABLt 3 ALL DSTS BOSFUN TOTAL NEW YORK CITY OUTSIDE PAGE A9 ICONTINUEfD) PHILADEL. LLEVELAND RICHMUND ST. LOUS ATLAN- CHICTA AGO MINNEAPOLIS KANS. LITY 0ALLAS 0 U 1 0 7 . 0 0 0 9 U O 0 1 9 3 0 SAN FRAN LENDING TU NONFINANCIAL BUSINESSES REVIEWING CREDIT NONLOCAL LINES UR LOANS SERVICF AREA CUST 12 MUCH FIRMER POLICY MODERATELY FIRMER POLICY POLICY FSSENTIALLY UNLHANG;F'Vt13RATELY FASIER POLICY MUCH ASIfR POLICY FACTORS Rt-LATING TO APPLICANT MUCH FIRMFR POLICY MOOERATELY FIRMER POLICY ESSENTIAl.Y UNCHANGEO POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY INTENDED USE OF LOAN MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY LENDING FINANCE TF HS 0 3 15 0 0 9 0 3 6 8 O 0 0 2 O U O 2 O O 0 8 0 0 C 2 18 C U 0 0 9 0 0 O 8 0 0 0 1 19 0 0 0 3 5 0 0 0 5 14 1 0 0 1 5 0 1 11 0 0 0 9 2 O O 0 2 9 O 0 O 0 6 U U 0 L 9 1 0 0 0 9 0 0 0 1 10 0 0 0 0 6 0 0 0 2 7 0 0 0 3 7 1 0 0 2 4 1 1 8 O O U 0 0 2 13 O 0 1 1 1 1 10 O 0 1 1 8 O 0 1 U 14 0 0 0 2 7 0 0 O U 3 U 0 1 0 8 0 U O 2 7 0 0 O 1 10 2 0 0 0 LL 0 C 0 0 1Z 1 U 9 0 0 0 0 15 0 0 0 1 a 0 0 UO 0 3 0 0 0 9 0 O U 1 7 1 O 0 1 12 0 0 0 1 10 0 4 8 0 0 2 13 0 0 0 5 4 0 U 3 7 0 0 0 0 3 0 0 0 3 6 0 0 0 3 10 0 0 1 125 4 10 108 3 0 125 1 4 119 1 O 0 0 TJ "IiCNCAPTIVE" COMPANIES AND INTEREST CONDITIONS RATES CHARGED MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELYEASIER POLICY MUCH EASIER POLICY 2/ 0 1 7 2/ VALUf- AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS E n 3 11 103 125 0 33 90 2 0 FOR THESE FACTORS, FIRMER MEANS THE FALTORS CREDIT REQUESTS. AND EASIER MEANS THEY WERE WERE CONSIDERED MORE LESS IMPORIANT. 0 0 IMPORTANT 0 0 IN MAKING DECISIONS FUR 0 APPROVING 0 2 6 1 0 NOT FOR QUOTATION OR PUBLICATION TABLE ALL DSTS LENDING FINANCE NEW YORK TOTAL CITY OUTSIDE PAGE A10 ICONTINUEUI PHILADCL. CLEVELAND RICHMOND ATLANFA CHICAbU 0 12 0 0 0 1 9 0 0 0 O 13 2 0 MINNEAPULIS KANS. CITY DALLAS SAN FRAN 0 0 9 0 U 0 3 0 0 0 0 8 1 O O 0 9 0 U O 1 12 0 O bl. LOUIS TO "NONCAPTIVE" COMPANIES TERMS AND SIZL BUSTUN 3 CONDITIONS: CF COMPENSATING BALANCES 125 O 0 8 0 O U 1 18 1 0 0 0 9 0 0 0 1 9 1 0 0 0 6 0 O 0 0 11 0 O 0 8 114 0 0 8 0 3 16 0 U 9 3 0 0 0 1 0 0 0 0 O 6 U 0 0 0 11 O 0 0 0 12 U 0 1 9 U U 0 1 13 I O U 1 R U 0 0 3 U O 0 MODELATELY EASIER POLICY MUCH FAS-IFR POLICY 0 3 7 1 0 1 8 0 O U U 9 O O 1 11 1 0 ESTABLISHING NEW OR LARGER CREDIT LINES 125 0 0 7 1 0 0 2 16 2 0 0 O 9 0 0 0 2 7 2 0 0 1 5 0 0 0 2 7 2 0 0 1 11 0 0 0 0 10 0 0 1 1 11 2 0 1 1 6 1 o 0 0 3 0 0 1 0 6 2 0 0 0 7 2 o 0 2 9 2 0 0 0 7 1 0 C 2 L6 2 U 0 0 8 1 0 0 2 8 1 0 0 0 4 2 0 0 1 7 3 J 0 0 LO 2 0 0 0 9 1 0 0 1 13 1 O 0 3 6 U u 0 U0 3 0 u 0 0 0 6 3 0O 7 O 0 7 1 0 C 0 17 1 0 0 0 7 0 0 0 0 10 1 0 0 O 0 O 9b 2 0 0 0 UO 8 1 1 1 O 11 3 0 0 O 6 3 o J 3 U u 0 0 0 U 8 1 0 9 4 0 MUCH FIRMER POLICY MODERATELY FIRMFR POLICY ESSENTIALLY UNCHANGED POLICY MODERATELYEASIER POLICY MUCH EASIER POLICY ENFORCEMENT OF BALANCE REQUIREMENT MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED PULICY MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH FASIER POLICY wILLINGNFSS TO MAKF TYPES IIF LOANS TERM LOAnS TO 125 3 10 98 14 0 OTHER BUSINESSES CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLINC CONSIDERABLY MORE WILLING CONSUMER O 3 118 4 0 INSTALMENT LOANS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORF WILLING 125 0 8 95 22 u 1 2 u 123 1 O 98 23 1 1 0 10 2 u 0 4 NOT FOR QUOTATION OR PUBLICATION PAGE All TABLE 3 (CONTINUED) ALL DSTS BOSTON NEW YORK TOTAL CITY OUTSIDE PHILADEL. CLEVE- RICHLAND MONO ST. ATLAN- CHICAGO LOUIS TA MINNE- KANS. CITY APOLIS DALLAS SAN FRAN WILLINGNESS TO MAKE OTHER TYPES OF LOANS SINGLE FAMILY MORTGAGE LOANS 122 CONSIOERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORF WILLING CONSIDERABLY MORE WILLING 0 6 103 13 0 MULTIFAMILY MORTGAGE LOANS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING ALL OTHER MORTGAGE LOANS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING PARTICIPATION LOANS WITH CORRESPONDENT BANKS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING LOANS TO BROKERS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING NUMBER OF BANKS 0 0 8 0 0 0 1 15 1 0 0 0 5 1 0 0 1 10 0 0 0 0 6 0 0 0 1 6 4 0 0 1 10 1 0 0 0 9 1 0 0 0 15 0 0 0 0 6 3 0 0 0 3 0 0 0 8 0 0 1 1 13 1 0 0 0 5 1 0 1 1 8 0 0 0 0 6 0 0 0 1 10 0 0 0 1 10 1 0 0 0 10 0 0 0 2 13 0 0 0 1 0 0 0 1 7 0 0 1 1 14 1 0 0 0 5 1 0 1 1 9 0 0 0 5 1 0 0 0 8 0 0 0 1 18 1 0 0 0 9 0 0 0 0 0 8 0 0 0 0 0 7 2 0 0 I 8 0 0 0 2 10 I 0 1 0 d 0 0 0 2 9 2 0 121 2 8 106 5 0 1 0 0 0 0 0 9 0 0 0 0 7 2 0 0 0 2 1 0 0 0 8 1 0 1 0 8 0 0 0 1 10 2 0 3 0 U 0 0 7 2 U 0 0 7 1 U 0 1 12 0 0 3 0 0 0 0 7 U 0 0 0 8 0 0 0 0 10 3 0 3j 121 3 5 99 14 0 9 1 0 1 9 1 0 10 0 0 1 0 10 4 0 9 1 O 0 0 6 0 0 0 0 11 0 0 0 0 11 0 0 0 0 9 1 0 0 13 2 0 00 0 9 0 0 0 1 10 0 0 0 1 5 0 0 0 0 9 2 0 0 1 9 2 0 0 0 9 1 0 1 0 14 0 0 0 0 9 0 0 0 1 0 0 123 0 2 114 7 O 0 121 1 3 109 8 0 125 0 0 8 0 0 0 1 18 0 0 

Federal Reserve (1972, September 18). Greenbook/Tealbook. Greenbooks, Federal Reserve. https://whenthefedspeaks.com/doc/greenbook_19720919_part1

@misc{wtfs_greenbook_19720919_part1,
  author = {Federal Reserve},
  title = {Greenbook/Tealbook},
  year = {1972},
  month = {Sep},
  howpublished = {Greenbooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/greenbook_19720919_part1},
  note = {Retrieved via When the Fed Speaks corpus}
}