time deposits, and vault cash derived from reports of deposits for reserve purposes by size strata, WRMB status, and reserve class. The program edits the incoming cards, produces edit variation indicators, puts the correct figures on tape, and revises the tape.

Program 2: Using the edited data on magnetic tape from above, this program calculates 5- and 7-day national aggregates by strata for net demand deposits, time deposits, and vault cash and the ratio of 5-day to 7-day aggregates and punches cards with universe strata summaries. It also summarizes daily deposit figures by reserve class for each district and punches money supply cards and calculates weekly aggregates by reserve class for each district to be used in conjunction with the borrowings and reserves series to produce an automated

J.1.

Program 3: Using the universe strata summaries prepared in program 2 above and the information received from the Reserve banks on mergers and other universe structure changes, this program revises the national summary figures to produce new summaries that reflect the universe as it exists on some specified free reserves estimation date.

Member bank reserves at and borrowings from Federal Reserve banks.-Every day the Reserve banks report borrowings and reserves figures, by reserve class, to the New York Reserve bank on the McWhinney wire. The daily worksheets prepared from these wires are sent to the Board where the borrowings and reserves figures are cross-checked and keypunched every week. The program edits these cards, prints error indicators, puts the figures on tape and makes required revisions.

Report of deposits, reserves, and borrowings of member banks (J.1).—Approximately every 2 weeks the Board publishes a J.1 report containing biweekly averages of deposits, reserves, and borrowings of member banks for each reserve class by district and for all member banks. The program uses the reserves and borrowings tape (member bank reserves at and borrowings from Federal Reserve banks) and the weekly aggregate deposit tape (program 2-Deposits for reserve purposes) to print a camera-ready J.1 report and to print weekly averages and tape weekly aggregates for internal section purposes.

Condition of weekly reporting member banks in leading cities.-The H.4.2, H.4.2(a), H.4.2 (b) and H.4.3 releases are prepared through the use of two computer programs. These programs print camera-ready copies which eliminates the need for special typing.

Program 1: Each week cards representing 55 weekly condition items are received at the Board from each of the 12 Reserve districts. This program adds the new week of data to tape while performing edit checks for coding and nonadd errors. The H.4.2, H.4.2(a) and H.4.2 (b) releases are then printed showing comparisons of week-ago and year-ago data which have been stored on tape. Options to print releases for any one date or to revise any information tape are also included.

Program 2: This program performs the same operations on new data as does program 1, but prints the H.4.3 release using figures sent to the Board from Chicago and New York City.

Additional programs: These are used to supply special listings in various sort sequences for any one date or group of dates on tape. Releases for any date on tape can also be produced for historical information.

Bank debits.-Monthly debits data for 225 selected standard metropolitan statistical areas or centers are submitted to the Board on a seasonally adjusted annual rate basis as well as the actual monthly debits totals. The demand deposits base (excluding U.S. Government and interbank accounts) for these debits data are also received on both a seasonally adjusted and unadjusted basis. Computer programs are used to (1) edit incoming punched cards, produce error indicators, write a historical tape, and make any required revisions, (2) print camera-ready copy for monthly releases (G.6 and confidential System publication, L.4.9. containing demand deposits and turnover for individual centers), and (3) production of the yearly debits publication (C.5). An article describing the revision and reporting procedures of the current debits series appeared in the March 1965 Federal Reserve Bulletin.

Dealer statistics.-Daily figures for the positions and transactions of Government securities are processed to obtain the data by maturity category as well as net and gross transactions. Statement week and monthly averages (working day basis) are computed by type of security and maturity category. Statement week and monthly averages (calendar day basis) are computed for

dealer borrowings by type of borrowing. Dealer position output is also used on the data plotter. Daily statistics of U.S. Government security dealers. Monthly recurring.

Daily money supply.-A tape with daily data from November 1958 to within a month of the current date contains all the necessary information to compute the daily money supply. It contains member bank data for the three classes of banks and has information on reserve requirement reports, float, currency, etc. Used for month-end estimates of financial data. Monthly recurring.

Statistical data from bank examination reports.-Quarterly summaries of statistical data obtained from bank examination reports for all member banks in the United States grouped by size of bank, by class of banks, and by Federal Reserve district. The principal data compiled include the dollar amounts of major balance sheet items outstanding, interest rates paid on savings and other time deposits and significant details concerning the quality of bank assets and bank capital positions as of the examination date. Frequency distributions of significant items or ratios for banks grouped in various ways are also available quarterly. Quarterly and annual.

Projection of Federal revenues by type of tax, by months, and by quarters.— Projected GNP and significant components with projected tax-GNP ratios determined by historical relationships preadjusted for changes in tax laws. This is a continuing project.

Treasury cash balance analysis.-Daily seasonal adjustment factors for the day of the month and the day of the week for Federal receipts, expenditures, and debt operations by classes affecting the Treasury's daily cash balance. Historical record of selected taxes and expenditures by days. Updated continuously.

Treasury cash balance analysis.-Application of above seasonal factors to derive daily changes in Treasury's cash balance. Precomputed projected Federal taxes and precomputed seasonal adjustment factors.

Banking concentration study. This study is a compilation of selected deposit and loan data of all insured commercial banks within each of the 50 States and the District of Columbia. The banks (and bank holding companies and chains, wherever applicable) are listed in descending order of total deposit size and grouped and ranked according to deposit size within each State. Data are taken from quarterly reports of condition of all insured banks. Quarterly recurring.

Insured mutual savings banks condition report summary.—December condition report data are summarized from magnetic tape into both mutual savings and commercial bank formats by Federal Reserve district and States for final tabulation on conventional tabulating equipment. Reports of condition of mutual sav ings banks.

Insured commercial banks, earnings and dividends report summary.-Calendar year earnings and dividends report data are summarized from magnetic tape by Federal Reserve district, State, and Reserve class and punched into cards for final tabulation on conventional tabulating equipment. Reports of earnings and dividends, all insured commercial banks.

Computation of operating ratios of individual member banks.-The data from three periods of condition reports are combined and averaged for each member bank and used along with the calendar year earnings report in computing operat ing ratios of individual member banks. Three periods (may be modified to require only two) of reports of condition and calendar year earnings and dividends reports.

Member bank operating ratio spread sheets.-Operating ratios of individual member banks are tabulated and averages derived according to the various classifications (deposit size, ratio of total loans to total assets and ratio of time deposits to total deposits) required by the respective Reserve banks. Operating ratios of individual member banks.

Member bank summary report flexowriter format.-Summary data produced by the condition report summary program are combined into various classifications by Federal Reserve districts. States, Reserve cities, etc. New punched cards are output for conversion to punched paper tape to be used as Flexowriter input. Camera-ready copy is produced on overlayed sheets containing headings and studbs which is photographed and made into offset plates for production of the summary report. Condition report summary figures, all member banks.

Asset and liability summary.-Selected asset and liability items as of the yearend call date are summarized by size of bank based on total deposits for all member banks operating for the entire calendar year. Reports of condition of all member banks as of December of each year.

Compilation of individual bank data.-Principal assets and liability items and related ratios are punched from condition report magnetic tape into a condensed format for mailing to the Reserve banks. Reports of condition data for all insured commercial banks.

Assets and liabilities, all banks (FR 40).-Condition data for all banks are tabulated at midyear and yearend call dates by Federal Reserve districts, States, split States, and for all banks in the United States and possessions with figures shown separately for member, insured nonmember, and noninsured commercial banks, and insured and noninsured mutual savings banks. Condition report summary figures for all banks.

Weekly reporting banks condition report summary.-Quarterly condition report data of weekly reporting banks are summarized by Federal Reserve districts showing data for New York City and Chicago banks separately. Reports of condition, all member banks.

Insured commercial banks, condition report edit.—Quarterly condition report data (105 data items per bank) keypunched at the Reserve banks (for member banks) and the Service Bureau Corp. (for nonmember insured commercial banks) are subjected to various tests for completeness and internal balance. Correct reports are written on magnetic tape from which summaries are prepared and which are used for statistical and research purposes. A card containing error codes is punched for each incorrect report for use in preparing leased wire notification to Reserve banks for ascertaining corrected data. Reports of condition, all insured commercial banks.

Insured mutual savings banks condition report edit.-Quarterly condition report data are edited for completeness and internal balance. Correct reports are written on magnetic tape. Incorrect reports are rejected with codes indicating area of report out of balance. Reports of condition of mutual savings banks. Insured, commercial banks, earnings and dividends report edit.—Calendar year earnings and dividends report data (112 data items per bank) keypunched at the Reserve banks (for member banks) and the Service Bureau Corp. (for nonmember insured commercial banks) are subjected to tests for completeness and internal balance. Correct reports are written on magnetic tape from which summaries are prepared and which are used for statistical and research purposes. A card containing error codes is punched for each incorrect report for use in preparing a leased wire notification to Reserve banks for ascertaining corrected data. Reports of earnings and dividends, all insured commercial banks.

Insured commercial banks, condition report summary.-Published condition report data are summarized from magnetic tape by Federal Reserve district, State, Reserve class, and cities and punched into cards for producing on conventional tabulating equipment preliminary tabulations for final inspection prior to printing. Reports of condition, all insured commercial banks.

Weekly report on Federal funds.-Daily reports from 46 banks on Federal funds transactions, Federal Reserve borrowings, reserve position are edited for logical consistency and possible keypunch errors. Daily and weekly summaries

by area are prepared for publication and internal reports. Weekly recurring. Quarterly interest rate survey.-Business loans made by respondent banks in 19 leading cities are classified by geographic area, maturity and size of loan. Average interest rates are computed for each subclassification and they are combined into averages for major size groups for each geographic area and for 19 cities combined. Individual loan data showing dollar amount, interest rate, and maturity of loans that are made during the first 15 days of March, June, September and December are supplied by a sample of large banks in 19 leading cities. Quarterly recurring.

Business conditions studies

Statistical procedure-Monthly production index.-Monthly production indexes with varying weights and series. Gross value, kilowatt hours, man-hours, and other appropriate weights.

Monthly indexes of various series computed with appropriate weights into annual totals. Agriculture, retail trade, department stores, and other series data.

Conversion of index data to logarithms for plotting series on ratio scale using Board's data plotter. All industrial production series (210) seasonally adjusted. Gross value weighted total and subtotal group; department stores, business sales, and inventories. New 1957-59 base production series (unad

justed).

Monthly industrial production index.-217 basic series, each for up to 6 months of data, are converted to points in total index, and combined into unadjusted indexes for the total and for 363 industry groupings and 281 market groupings50 and 45 of these groupings for industry and market, respectively, are seasonally adjusted and combined each month according to 79 industry and 72 market groupings. Current monthly production statistics.

Annual industrial production index.-Output includes printouts of indexes and points in total index. Same compilations as above but incorporating revisions in basic data as well as revisions in seasonal adjustment factors. Calculated for full calendar year, including annual averages. Historical monthly production statistics.

Electric power series.-Tabulation programs and percentage change programs show detail for approximately 200 series by district and the United States. Additional programs convert the data to index form and punch out the figures in seasonal adjustment format, including control cards; combine the seasonally adjusted indexes using value-added weights on an historical basis; combine current data similarly after indexing and seasonally adjusting with projected seasonal factors; and convert the data to a form suitable for drawing charts on the data plotter. Various additional ad hoc programs to adjust the data to benchmark or current levels have also been used. The source of the data is from utilities aggregated by the District Banks plus industrial generation from the Federal Power Commission. Much of the computer work is on a monthly basis.

Growth rate program.-A program which computes growth rates by least squares of logs, Glover method, Pesek method No. 7, and an exponential least squares of actual values. Ad hoc.

Agricultural studies

Cash receipts from farm marketings.-Processing of data on cash receipts from farm marketings is used in the analysis of current business developments and as a pilot study of the feasibility of automated processing of current economic data. A tape file of monthly data on receipts from sale of crops and of livestock for each of the 48 contiguous States is being maintained up to date as new data and revisions are received.

The output consists of tables and graphs that cover a period of up to 10 years. The tables show the actual amount, change and percentage change for the same time period of successive years. Data are shown for four time periods-the current month, the last 3 months, year to date, and last 12 months. A graph on

a logarithmic scale is printed for each of the 12 series (crops, livestock, and total for each of the 4 periods listed above).

Output can be printed for individual States and also for any grouping of States, such as Federal Reserve districts and farm production areas.

Output is mailed to agricultural economists at the Reserve banks and the USDA. An agreement has been made with the section of the USDA that originates the data to supply them with output that they can examine prior to releasing their current estimates to the public. Recurring monthly.

Other reports and tabulations

Characteristics of automobile installment loans at major sales finance companies. The recently distributed L.4.1 release is prepared on the computer on the basis of reports from 11 major sales finance companies. The program converts the data into percent distributions and tabulates it in the format suitable for the release. Monthly recurring.

Commercial bank auto loans.-Auto loans at commercial banks based on monthly reports from the Federal Reserve districts; the program manipulates the reported data into the desired ratios and calculates credit volume number of cars financed, and average note by district, size group, and type of paper. Monthly recurring.

Flow of funds bookkeeping.-A tape of about 1,500 times series is maintained currently for the quarterly accounts. The tape carries asset and liability levels and unadjusted and adjusted flows. About 500 of the series are for the published tables and the rest are used in calculating and analyzing those 500. Bookkeeping consists of introducing new and revised basic data, deriving flow of funds concepts, seasonally adjusting appropriate series, adding up the accounts for publication, and printing results for reproduction, both multilith and letterpress. Over the year, bookkeeping consists of an annual recalculation of the accounts as a whole, current quarterly calculations for Bulletin publication, preliminary

estimates for System use, and short-run projections. Procedures differ only in detail among the types of bookkeeping data.

All monetary and banking data in the quarterly accounts are maintained monthly on a separate tape and transferred to the quarterly tape as needed. As monthly data they are supplied to IMF and are part of a monthly financial market summary that is an abstraction of the quarterly accounts. Also maintained monthly are all data on ownership of U.S. Government securities by maturity class. These are similarly transferred to the quarterly tape for use there.

A daily tape is maintained on money-supply components. This tape provides information to the monthly banking tape, most particularly for timing adjustments needed to make bank data consistent with other financial information.

System-wide application

GENERAL ADMINISTRATION

Functional expense reports.-Each Federal Reserve bank and branch submits a report in puncheard form to the Division of Bank Operations with quarterly expenses by object of expenditure distributed over the various bank activities as well as volume of operations data, items per man-hour, total cost per item processed and other measures of relative efficiency. Each report contains approximately 1,000 items of information. The Board prepares a 116-page comparative functional expense report which is used by our staff and the management of the Reserve banks and branches to analyze and control their expenditures. Part 1: The six phases described below represent part 1 of the mechanization project and are concerned with the testing for accuracy and publication of the reports.

(1) This program edits the expense reports as they are received from the banks and branches in punchcard form (140 cards per report). Close to 300 edit tests are made on each report and those containing errors are rejected with appropriate messages printed out. Reports that pass all tests are stored on magnetic tape.

(2) The edited reports stored on magnetic tape are in random sequence. This program sorts them by districts and creates district, head office, and branch tapes. (3) This program accumulates and prints out 116 pages of comparative expenses data for the 12 head offices and 24 branches. These pages are trimmed and overlayed on master sheets containing headings and stubs from which plates are made for photo-offset reproduction of the consolidated report. It also ranks the efficiency indicators of the head offices and branches for inclusion in the report.

(4) This program reads the current district tape and creates an updated historical tape. This historical tape will be used by the analytical programs being written in part 2 of the project.

(5) Because of misallocations, new accounting manual interpretations, etc., the basic accounting records stored on the historical tape must be changed from time to time. This program reads in a corrected punch card report, performs the 300 edit tests noted in (1) above, and creates a new historical tape with the corrected report incorporated. As a safety device, all 1,000 items of the corrected report are compared against corresponding items on the old historical tape and any differences printed out must be approved by the section before the adjusted tape is considered valid.

(6) Once a year the quarterly data for each office is read in from the historical tape and annual reports are prepared. Output tapes containing the annual reports for head offices and branches are created and run for preparation of an annual consolidated report. The historical tape is updated to include the annual reports.

Part 2: This part of the project will utilize the computer to assist our staff in making comparative analyses of the functional expense reports. It is expected that, when completed, this part of the project will consist of three or four separate but interrelated programs.

(1) This program compares, by individual office, each item of data for the current quarter with that of any two previous quarters and prints out the identification of the item, the data, the difference, and percent of difference.

(2) Intrabank analysis program. This is a two-phase program, which makes a detailed comparative analysis of functional data, by individual office, and prints out information concerning deviations in excess of specified tolerances. Interdistrict settlement fund.-Incoming telegrams from each of the 36 banks