X 393-409. Net public and private debt, by major sectors, 1916-1970. Source: U.S. Bureau of Economic Analysis (formerly Office of Business Economics), Survey of Current Business, May 1969, p. 11; May 1970, p. 14; and May 1973, p. 13.

The source publications include details for the sectors shown here as well as data on gross debt.

Net debt for the public sectors of the economy represents total outstanding indebtedness minus intrasector holdings of such debt, e.g., total Federal debt minus such portions of that debt as are held by the Treasury and by Federal agencies. State and local debt includes State loans to local units. Net corporate debt represents total corporate debt minus intercompany debts of affiliated companies. Figures for the noncorporate private debt are gross, with no adjustment for intrasector holdings.

All sectors of both gross and net debt exclude (a) deposit liability of banks and banknotes in circulation, (b) value of outstanding policies and annuities of life insurance carriers, (c) short-term debt of individuals and unincorporated nonfinancial business concerns held by other individuals and unincorporated businesses, and (d) nominal corporate debt, such as bonds authorized but not issued, and issued but reacquired.

Series X 395 includes debt of Federal agencies included within the Budget. The debt of Federal agencies not included in the Budget is shown in series X 396. Series X 403 represents agricultural loans Series to farmers and farmers' cooperatives by institutional lenders. X 408 and X 409 include debt owed by farmers for financial and consumer purposes.

X 410-443. General note.

The supply of money, in the sense of a means of payment, is defined broadly to include bank deposits and currency. A more restricted definition of the active money supply includes demand deposits and currency held by the public. Time deposits, including funds deposited in the Postal Savings System, have occasionally been included in the definition of the money supply. Prior to 1934, gold was also a part of the means of payment but in January of that year it was withdrawn from circulation, and, until August 1971, gold served as a means of settlement of international accounts only and, until March 1968, as a purely reserve money domestically.

As used here, the term "currency" includes coin and paper money issued by the Government and by banks. All currency is now issued by the Federal Reserve banks and the U.S. Treasury. In the series in this section three types of currency figures are shown: (a) Total currency stock (series X 420); (b) currency in circulation (series X 423-437), defined as coin and paper money outside the Treasury and Federal Reserve banks; and (c) currency outside banks, that is, currency in circulation less cash in the vaults of banks (series X 410). Figures on currency in circulation have been compiled by the Treasury Department since 1800. They exclude currency held in the Treasury and Federal Reserve banks, gold and silver coin known to have been exported and, beginning January 31, 1934, all gold coin. They include currency held by the public within the United States, cash in the vaults of banks, currency lost or destroyed, and currency carried abroad and not appearing in the official gold and silver export figures.

At one time gold was the basic form into which all other types of currency could generally be converted. At present (1973-1974), however, the gold stock in most countries is held largely or entirely by central banks and Government treasuries. All gold belonging to the United States is held by the Treasury Department. Private gold holdings are forbidden except in limited amounts for licensed purposes. U.S. residents may purchase, hold, and sell domestic and foreign gold coins situated in the United States and minted before April 5, 1933. Gold coins minted after this date may be held if they have been determined to be of recognized special value to collectors. Gold may be held by Federal Reserve banks for account of foreign central banks or governments. Such earmarked gold, however, is not a part of the monetary gold stock of this country.

Prior to 1934, when gold coin and gold certificates were a part of the means of payment, they are included in series X 421, “currency held in Treasury"; series X 422, "currency in Federal Reserve banks"; and series X 423, "currency in circulation"; as well as in series X 424 and X 425, "gold coin" and "gold certificates" in circulation.

X 410-419. Money stock-currency, deposits, bank vault cash, and gold, 1867-1970.

Source: National Bureau of Economic Research, unpublished data. See also text for series X 263-275.

Series X 410-419 are annual averages of estimates by Milton Friedman and Anna Jacobson Schwartz.

Series X 411-413 represent total deposits adjusted, i.e., total deposits less U.S. Government deposits, interbank deposits, and cash items in process of collection. A distribution showing demand and time deposits is not available prior to 1915. Figures for bank vault cash are deducted from currency in circulation to arrive at currency outside banks.

M1 money supply, series X 414, includes currency outside the Treasury and bank vaults, demand deposits at all commercial banks,

and foreign demand balances at Federal Reserve Banks. M2 money supply, series X 415, includes all of the above plus time deposits at commercial banks. Deposits at nonbank thrift institutions are thus excluded from both M, money supply and M2 money supply.

For additional descriptive detail, see Milton Friedman and Anna Jacobson Schwartz, Monetary Statistics of the United States, National Bureau of Economic Research (NBER), 1970.

The sources from which the estimates were derived are as follows:

X 410-416: 1867-1906 averages based on quarterly estimates from Monetary Statistics of the United States, tables 2 and 21; 1907-1946 averages, on end-of-month estimates from table 1 (ibid.), except that series X 416 is from Friedman and Schwartz, A Monetary History of the United States, 1867-1960, NBER, 1960, table A-2.

X 410-415: 1947-1963 averages based on monthly averages of daily figures from U.S. Board of Governors of the Federal Reserve System, Federal Reserve Bulletin, December 1970, except that series X 411 and X 415 are from Monetary Statistics..., pp. 48-50; 1964-1970 averages based on daily figures from the Federal Reserve Bulletin, November 1971.

X 416: 1947-1970 averages were derived from unpublished monthly averages of the Federal Reserve Board's daily estimates. X 417: 1869-1878 averages based on end-of-June figures from the Annual Report of the Secretary of the Treasury, 1928, p. 552, minus gold presumed lost (see Annual Report, Director of the Mint, 1907, pp. 87, 92). 1878-1913 averages based on end-ofmonth figures from the Annual Report of the Secretary of the Treasury, 1898, pp. 59 and 109; 1903, pp. 173 and 205; 1909, p. 190 (corrected for the amount of gold presumed lost); and 1915, p. 319. 1914-1946 averages derived from U.S. Board of Governors of the Federal Reserve System, Banking and Monetary Statistics, 1943, pp. 536-538 and Supplement, section 14, p. 14 (for 1914-1933, plus $287 million to correct for gold presumed lost). 1947-1970 averages based on daily figures from Banking and Monetary Statistics, Supplement 10, pp. 16-19, and Federal Reserve Bulletin, monthly issues.

X 418: 1867-1906 averages based on annual or semiannual estimates in Monetary Statistics ..., table 1; 1907–1946 averages derived from end-of-month estimates in table 1; 1947-1970 averages based on 12-month Federal Reserve Board estimates for the last Wednesday of the month from Monetary Statistics..., table 1, and Federal Reserve Bulletin, monthly issues.

X 419: 1897-1954 averages based on annual or quarterly estimates from Monetary Statistics..., table 1; 1955–1970 averages based on 12-month estimates from Monetary Statistics ..., pp. 42-52, and Federal Home Loan Bank Board, Selected Balance Sheet Data, All Operating Savings and Loan Associations.

X 420-423. Currency stock and currency in circulation, 1800-1970. Source: 1800-1859, U.S. Comptroller of the Currency, Annual Report, 1896, vol. I, p. 544; 1860-1970, U.S. Department of the Treasury, Annual Report of the Secretary of the Treasury, various issues. See general note for series X 410-443.

Currency stock (series X 420) and the total of its components (series X 421-423) involve a duplication to the extent that U.S. notes, Federal Reserve notes, Federal Reserve banknotes, and national banknotes, all included in full, are in part secured by gold, also included in full. The duplication of gold certificates, silver certificates, and Treasury notes of 1890 resulting from the equal amounts of gold

For a state

or silver held as security therefore has been eliminated. ment on this point, see footnotes to series X 420 and X 421. A description of security and reserves by type of currency is included in the text for series X 424-437, below. The text for series X 424437 also describes more refined estimates of gold coin in circulation, 1873-1907 and 1913-1933, which, if incorporated into series X 420423, would require similar adjustments in "total currency in the United States" and "currency in circulation."

The Annual Report of the Secretary of the Treasury for 1922 and subsequent years includes the following information concerning changes in the compilation of series X 420-423. The figures for 1860-1889 have been revised from the best data available in annual reports of the Secretary of the Treasury. The records are not complete and the figures for gold and silver in those years are only estimates. Beginning with 1890, the compilation is based on revised figures for June 30 of each year and therefore differs slightly from the monthly circulation statements issued by the Treasury. The compilation reflects revisions to take account of other changes in the circulation statement, chiefly in 1922 and 1927. These revisions are explained in the Annual Report of the Secretary of the Treasury as follows: 1922, p. 433; 1928, pp. 70-71 and 551.

X 424-437. Currency in circulation, by kind, 1800-1970.

Source: U.S. Department of the Treasury. Annual Report of the Secretary of the Treasury, 1947, p. 543; 1961, p. 636; 1964, p. 598; 1967, p. 656; and 1970, p. 240; except series X 437, 1800-1859, Annual Report of the Comptroller of the Currency, 1916, vol. II, p. 45.

See general note for series X 410-443 and text for series X 420-423. More detailed annual data on currency stock and circulation, by kind, are shown in the annual reports of the Secretary of the Treasury and the Comptroller of the Currency.

The security and reserve provisions for the different types of currency are described in the Annual Report of the Secretary of the Treasury, 1972, p. 245.

X 425, gold certificates. Following the enactment of the Old Series Currency Adjustment Act in 1961, gold certificates (issues prior to series of 1934) are redeemable from the general fund of the Treasury and upon redemption will be retired. Prior to 1961, gold certificates were fully secured by gold in the Treasury.

X 427, silver certificates. Originally secured by silver bullion at monetary value ($1.29+ per fine troy ounce) and standard silver dollars held in the Treasury. Since enactment of the Old Series Currency Adjustment Act in 1961, silver certificates issued before July 1, 1929, have been payable from the general fund; certificates issued on or after July 1, 1929, became redeemable from the general fund on June 24, 1968.

X 428, Treasury notes of 1890. In process of retirement since March 1900 upon receipt by the Treasury. Until 1961, secured by silver and by gold reserve; thereafter, redeemable from general fund. X 431, Federal Reserve notes. Federal Reserve banks secure Federal Reserve notes by depositing like amounts of collateral with Federal Reserve agents. The Federal Reserve Act, as amended, authorizes the use of the following assets for this purpose: (a) gold certificates or gold certificate credits; (b) certain discounted or purchased commercial paper; (c) securities issued by the United States; and (d) Special Drawing Rights certificates issued by the Exchange Stabilization Fund. Federal Reserve notes are obligations of the United States and are a first lien on all assets of the issuing Federal Reserve Bank. Following the enactment of the Old Series Currency Adjustment Act of 1961, funds were deposited by the Federal Reserve

banks with the Treasurer of the United States for the redemption of all Series of Federal Reserve notes issued before the series of 1928. X 432, Federal Reserve banknotes. Secured at issuance by direct obligations of the United States or by commercial paper. Since termination of their issuance on June 12, 1945, the notes have been in process of retirement, and lawful money has been deposited with the Treasurer of the United States for their redemption.

X 433 U.S. notes. Secured by a gold reserve until this requirement was repealed. The Act of May 31, 1879 required that the amount of U.S. notes then outstanding, $346,681,016, be kept in circulation. The Old Series Currency Adjustment Act provided that this amount should be reduced by such amounts of notes as the Secretary of the Treasury might determine to have been destroyed or irretrievably lost. To 1970, the Secretary has made such determinations with respect to $24,142,000 of the U.S. notes issued prior to July 1, 1929. X 434, national bank notes. Secured at issuance by direct obligations of the United States. From December 23, 1915 these notes have been in process of retirement, and lawful money has been deposited with the Treasurer of the United States for their redemption. The monetary value of gold was changed from $20.67 per fine ounce to $35.00 per fine ounce on January 31, 1934. The weight of the gold dollar was reduced from 25.8 to 15-5/21 grains of gold, 0.9 fine. More refined estimates of the amount of gold coin in circulation, 1873-1907, are contained in Bureau of the Mint, Annual Report of the Director of the Mint, 1907, p. 87; a discussion of the errors for which adjustments were made is given on pp. 66–95. For 1914-1933, the Board of Governors of the Federal Reserve System published revised estimates of gold coin in circulation (see Banking and Monetary Statistics, p. 409), which exclude $287 million of gold coin reported in January 1934 as still in circulation because this amount is believed to have been largely lost or melted down, or otherwise to have disappeared from circulation over the years. The Federal Reserve series has been adjusted in this way for 1914-1933; no similar adjustment has been made in the data included in this volume for gold coin in circulation, total currency in circulation, or total currency stock.

Source: Board of Governors of the Federal Reserve System, 1914-1941, Banking and Monetary Statistics, p. 536; 1942-1957 (except series X 438 beginning 1953, X 441 beginning 1956, and X 443), Federal Reserve Bulletin, June 1949, p. 745, and April 1958, p. 503; series X 439 and X 442, 1958-1970, unpublished data. Series X 438, 1953-1970, X 440, 1958-1970, and X 443, 1942-1970, Federal Reserve Bulletin, January issues. Series X 441, 1956-1970, U.S. Bureau of the Census, Report FT 2402, annual issues.

For a discussion of the items shown here, see Banking and Monetary Statistics, pp. 522-523. See also general note for series X 410-443. Also available in Banking and Monetary Statistics and various issues of the Federal Reserve Bulletin are annual data on gold inflow into the United States and contributing factors, net gold imports to the United States by country, and gold production by country.

The data for domestic gold production (series X 440) are those reported by the Director of the Mint, adjusted through 1945 to exclude Philippine production received in the United States. The data for net gold imports or exports (series X 441) are those compiled by the Department of Commerce. The figures for gold under earmark (series X 442-443) represent gold held by the Federal Reserve banks for foreign and international accounts; in the calculation of the changes in gold under earmark, however, consideration has also been given to gold held under earmark abroad for the account of the Federal Reserve banks in 1917-1933.