X 821-878. General note.

Financial institutions other than commercial banks perform a role in credit and capital markets by mobilizing the savings of individuals and channeling these funds among various types of investments. As a result, the flow of savings to these institutions and the allocation of these funds to various investments are important determinants of interest rates and prices of securities.

X 821-833. Assets and liabilities of mutual savings banks, 1896-1970. Source: Board of Governors of the Federal Reserve System. 1896-1944, All-Bank Statistics, 1959, table A-4; 1945-1962, Supplement to Banking & Monetary Statistics, section 12, "Money Rates and Securities Markets," table 26; 1963-1970, Federal Reserve Bulletin, March 1973, p. A39.

Mutual savings banks are mutual thrift institutions chartered by individual States, primarily those in the northeastern part of the United States. They have no capital stock or stockholders. Incorporators provide initial guaranty and expense funds, and under stated conditions these funds may be returned to them out of subsequent earnings. Most deposits in mutual savings banks take the form of passbook savings. After expenses of operations are paid, all earnings are either distributed as interest to depositors or added to reserves (surplus).

Data for 1930 and earlier years are from the Board of Governors of the Federal Reserve System. For 1931-1945, figures were obtained by the National Association of Mutual Savings Banks from State banking departments and directly from some individual savings banks. Reporting procedures for State banking departments were not completely uniform in this period and differed in some respects from those prescribed by the Federal Deposit Insurance Corporation. Beginning 1946, the data were collected by the National Association directly from individual savings banks and generally conform to FDIC reporting procedures.

X 834-844. Selected assets and liabilities of savings and loan associations, 1900-1970.

Source: U.S. Savings and Loan League, Savings and Loan Fact Book, 1967, p. 70; 1971, p. 79; and 1972, pp. 95 and 97.

Savings and loan associations-also known as cooperative banks, building and loan associations, and savings associations—are thrift associations chartered by individual States or by the U.S. Government.

Figures were compiled from the following sources: 1900–1933, U.S. Savings and Loan League, Chicago, Ill.; for insured associations, 1934-1949, annual supervisory reports; 1950-1970, monthly supervisory reports; and for uninsured associations, 1932-1970, annual supervisory reports. Resources of associations in liquidation are

not included.

X 845-849. Postal Savings System, 1911-1967.

Source: U.S. Post Office Department, Annual Report of the Postmaster General, 1957 and 1969, and unpublished data.

The Postal Savings System was discontinued April 27, 1966, and the accounts were eliminated after June 30, 1967.

X 850-863. Outstanding loans and loan insurance or guarantees of Federal and federally sponsored agencies, by economic sector served, 1917-1953.

Source: R. J. Saulnier, Harold G. Halcrow, and Neil H. Jacoby, Federal Lending and Loan Insurance, Princeton University Press, 1958, appendix A, pp. 365–380 (copyright).

These series are combinations of data shown separately in the source volume for Federal and federally sponsored agencies. That volume shows amount extended during the year as well as amount outstanding. The economic sectors shown here are the major sectors shown in the source volume and an "other" group which combines minor governmental units and miscellaneous sectors. The coverage and classification are described in the source, chapter I, pp. 3–27, the footnote on pp. 28-29, and footnotes of tables Al to A8. The following paragraphs are adapted from that text.

Federally sponsored agencies include all those having a special financial or administrative connection with the Federal Government, whether or not Federal funds were currently invested in them. Thus, they include agencies that were in some respects private or cooperative in ownership and organization but that operated in part with Federal funds; and agencies that, although no longer using Treasury funds, were specially connected with some Federal agency through the latter's power to appoint policymaking officers and in some cases to review policy decisions.

The Federal agencies represented under the various categories of loans, insurance or guarantees, and stock purchases are summarized in the source in footnotes to the economic sector tables (pp. 365-380) and are shown in greater detail in the source tables covering individual agencies (pp. 381-418). For example, among agencies making direct loans to the business sector were the Export-Import Bank of Washington, the Departments of Army and Navy, the Public Works Administration, the War Finance Corporation, the Reconstruction Finance Corporation, and the Smaller War Plants Corporation. Federal Reserve bank loans and participations in loans of private financing institutions to business under section 13b of the Federal Reserve Act were also included. Guarantees of loans to the business sector included guarantees by the Veterans Administration and by Federal agencies under Regulation V of the Board of Governors of the Federal Reserve System, as well as deferred participation commitments of the Reconstruction Finance Corporation.

Credit programs not covered by the tabulation shown here include loans to foreign governments (except the Export-Import Bank), direct and guaranteed loans by the Commodity Credit Corporation, and loans to State governments. Loans of the Export-Import Bank of Washington which could not be fully separated from lending to foreign concerns and to domestic concerns engaged in foreign trade were included in the business sector.

Outstanding amounts relate to three basic categories of Federal credit activities.

X 850-855, direct loans. These include (a) the full amounts of loans extended by specified Federal and federally sponsored agencies; (b) the amounts disbursed to private lenders by Federal agencies in purchasing outstanding loans made under Federal insurance or guarantee; and (c) the amounts disbursed on loans made in participation with private lenders.

Loans exclude credit extended incident to some other activity, as when the U.S. Commercial Company gave open book credit during

World War II in connection with its sales of commodities, and also grant-in-aid programs. Loans made indirectly—as when the Federal intermediate credit banks discount paper for production credit associations, enabling the latter to make loans to farmers-are included, as well as loans going directly to the ultimate borrower; but there is no double counting that would result from interagency loans.

X 856-860, loan insurance or guarantees. Loan insurance covers the full amounts of loans extended by private lenders and insured by Federal agencies. Loan guarantees cover (a) the amounts federally guaranteed, ranging from 100 percent to seldom lower than 50 percent of a privately made loan; and (b) the amounts of the Federal shares authorized under deferred participations, where the Government was ready to take up an agreed percentage of a privately made loan. Thus, credit actually extended under participation agreements with private lenders is included under direct loans; but during the time when there was merely a commitment outstanding to take up all or some part of a loan at the option of the private lender, the amount of the obligation is included as a loan guarantee.

X 861-863, stock purchases. Such purchases are included if identifiable as primarily credit aid, and they covered the amount of Federal funds invested. Stock purchases represent purchases of, and loans on, preferred stocks of banks and insurance companies, and purchases of capital notes and debentures of banks, by the Reconstruction Finance Corporation; purchases of shares of savings and loan associations by the Home Owners' Loan Corporation and the Treasury Department; purchases of stock of agricultural cooperative

associations by the Tennessee Valley Associated Cooperatives, Inc.; and purchases of Class A stock of production credit associations by the production credit corporations.

X 864-878. Federal and State-chartered credit unions-number, members, savings, loans, and total assets, 1925-1970.

Source: U.S. National Credit Union Administration, 1970 Annual Report of the National Credit Union Administration, and the 1970 State-Chartered Credit Union Annual Report.

Early data on operations of credit unions are available in U.S. Bureau of Labor Statistics, Monthly Labor Review, 1936–1953 (usually in the latter part of the year), and in BLS Bulletin Nos. 797, 850, 894, and 922.

Data for Federal credit unions, which were authorized by legislation enacted in 1934, represent all operating unions. Data on Statechartered credit unions have been furnished annually by State officials charged with the supervision of such credit unions, to the National Credit Union Administration (formerly Bureau of Federal Credit Unions) since 1951, and to the Bureau of Labor Statistics prior to 1951. Figures for State credit unions represent reporting unions which, in recent years, have included more than 99 percent of all active unions; prior to 1939, the proportion reporting was about 80 percent.

Loans of credit unions (series X 873-875) are principally shortterm consumer loans, but they include some real estate mortgage loans and a small amount of business loans.