securities as the Commission determines to be appropriate in view of the special character of the Bank and its operations, and necessary in the public interest or for the protection of investors. The Commission has, pursuant to the above authority, adopted rules requiring the Bank to file quartely reports and also to file copies of each annual report of the Bank to its board of governors. The Bank is also required to file reports with the Commission in advance of any distribution in the United States of its primary obligations. The Commission, acting in consultation with the National Advisory Council on International Monetary and Financial Problems, is authorized to suspend the exemption at any time as to any or all securities issued or guaranteed by the Bank during the period of such suspension.

The Bank reported a net income of $143.7 million for the fiscal year ending June 30, 1966. This compared with net earnings of $136.9 million in the fiscal year 1965.

On July 28, 1966, the Executive Directors allocated $67.8 million from the year's net income to the Supplemental Reserve against losses on loans and guarantees, increasing it to $731.6 million. This raised the Bank's total reserves, including the Special Reserve, to $1,021.4 million. The Executive Directors recommended to the Board of Governors that $75 million of the year's earnings be transferred to the Bank's affiliate, the International Development Association.

During the year, the Bank made 37 loans totaling $839.2 million, compared with a total of $1,023.3 million last year. The loans were made in Brazil, Chile, Colombia, Ethiopia, Finland, Guinea, Iran, Israel, Jamaica, Japan, Kenya, Tanzania and Uganda (East African Common Services Authority), Liberia, Malaysia, Mexico, Morocco, New Zealand, Nigeria, Pakistan, Paraguay, Peru, Philippines, Portugal, Spain, Sudan, Thailand, Tunisia and Venezuela. This brought the total number of loans to 461 in 79 countries and territories and raised the gross total of commitments to $9,793.8 million. By June 30, as a result of cancellations, exchange adjustments, repayments and sales of loans, the portion of loans signed still retained by the Bank had been reduced to $6,527.9 million.

During the year the Bank sold or agreed to sell $81.9 million principal amounts of loans, compared with sales of $106.2 million last year. As of the end of the fiscal year, the total of such sales was $1,966.6 of which all except $69 million had been made without the Bank's guarantee.

On June 30, 1966, the outstanding funded debt of the Bank was $2,805.9 million, reflecting a net increase of $81.9 million in the past year. During the year the funded debt was increased through the private placement of bonds and notes totaling the equivalent of

$269.5 million, by the public sale in Canada of bonds totaling Can$ 20 million (US$18.5 million) and by the issuance of $17.9 million of bonds under delayed delivery arrangements. The debt was decreased through the retirement of bonds and notes totaling the equivalent of $175.6 million, and by sinking and purchase fund transactions amounting to $48.4 million.

During the year Malawi and Zambia became members of the Bank, and Indonesia withdrew from membership. (On July 5, 1966, Indonesia applied for readmission.) The following 20 countries increased their capital subscriptions to the Bank by a combined total of $908.7 million: Austria, Ceylon, Finland, Germany, Guatemala, Iran, Iraq, Ireland, Israel, Jamaica, Japan, Jordan, Mexico, Norway, Saudi Arabia, South Africa, Spain, Sweden, Thailand and Uruguay. Thus on June 30, 1966, the subscribed capital of the Bank amounted to $22,426.4 million.

INTER-AMERICAN DEVELOPMENT BANK

The Inter-American Development Bank Act, which authorizes the United States to participate in the Inter-American Development Bank, provides an exemption for certain securities which may be issued by the Bank similar to that provided for securities of the International Bank for Reconstruction and Development. Acting pursuant to this authority, the Commission adopted Regulation IA, which requires the Bank to file with the Commission substantially the same information, documents and reports as are required from the International Bank for Reconstruction and Development. The Bank is also required to file a report with the Commission prior to the sale of any of its primary obligations to the public in the United States.

During the year ended June 30, 1966, the Bank made 14 loans totaling the equivalent of $97,750,000 from its ordinary capital resources, bringing the gross total of loan commitments outstanding to 129, aggregating $678,020,422. During the year, the Bank sold or agreed to sell $4,159,528 in participations in these loans. All participations were without the guarantee of the Bank except for a participation of $400,000 extended to one participant under a special agreement. The loans from the Bank's ordinary capital resources were made in Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Nicaragua, Peru and Venezuela.

During the year the Bank also made 43 loans totaling the equivalent of $270,530,000 from its Fund for Special Operations, bringing the gross total of loan commitments outstanding to 99, aggregating $461,300,671. In addition, the Bank made 5 loans aggregating $18,800,000 from the Social Progress Trust Fund, which it administers

under an Agreement with the United States, bringing the gross total of loan commitments outstanding to 117, aggregating $501,233,534.

On June 30, 1966, the outstanding funded debt of the ordinary capital resources of the Bank was the equivalent of $373,900,000, reflecting an increase during the year of the equivalent of $89 million. This increase consisted of two bond issues, including a $65 million short term issue of which $57 million was placed with the central banks or other central financial institutions of 15 Latin American member countries and $8 million with central financial institutions of 2 non-member countries, Israel and Spain. The other bond issue consisted of Italian Lire in the amount of LIT 15,000,000,000 ($24,000,000). On June 27, 1966, the Bank entered into a loan agreement under which it is entitled to borrow the equivalent of $10 million in local currency from the Export-Import Bank of Japan. As of June 30, 1966, the Bank had not borrowed any Japanese Yen.

The subscribed ordinary capital of the Bank on June 30, 1966, was the equivalent of $1,769,820,000, of which $1,388,240,000 represented callable capital.

ASIAN DEVELOPMENT BANK

The Asian Development Bank Act, approved March 16, 1966,55 authorizes United States participation in a new Asian Development Bank and provides an exemption for certain securities which may be issued by the Bank similar to the exemptions afforded to the International Bank for Reconstruction and Development and the Inter-American Development Bank. As of the end of the fiscal year, the Asian Development Bank had not been formally organized.

STATISTICS AND SPECIAL STUDIES

The regular statistical activities of the Commission and its participation in the overall Government statistical program under the direction of the Office of Statistical Standards, Bureau of the Budget, have been continued in the Office of Policy Research. The statistical series described below are published in the Commission's monthly Statistical Bulletin. In addition, current figures and analyses of the data are published quarterly on new securities offerings, individuals' savings, stock trading of financial institutions, financial position of corporations, and plant and equipment expenditures.

Issues Registered Under the Securities Act of 1933

Monthly statistics are compiled on the number and volume of registered securities, classified by industry of issuer, type of security, and use of proceeds. Summary statistics for the years 1935-66 are given

Public Law 89-369.

in Appendix Table 1 and detailed statistics for the fiscal year 1966 appear in Appendix Table 2.

New Securities Offerings

Monthly and quarterly data are compiled covering all new corporate and non-corporate issues offered for cash sale in the United States. The series includes not only issues publicly offered but also issues privately placed, as well as other issues exempt from registration under the Securities Act such as intrastate offerings and offerings of railroad securities. The offerings series includes only securities actually offered for cash sale, and only issues offered for account of issuers. Estimates of the net cash flow through securities transactions are prepared quarterly and are derived by deducting from the amount of estimated gross proceeds received by corporations through the sale of securities the amount of estimated gross payments by corporations to investors for securities retired. Data on gross issues, retirements and net change in securities outstanding are presented for all corporations and for the principal industry groups.

Individuals' Savings

The Commission compiles quarterly estimates of the volume and composition of individuals' savings in the United States. The series represents net increases in individuals' financial assets less net increases in debt. The study shows the aggregate amount of savings and the form in which they occurred, such as investment in securities, expansion of bank deposits, increases in insurance and pension reserves, etc. A reconciliation of the Commission's estimates with the personal savings estimates of the Department of Commerce, derived in connection with its national income series, is published annually by the Department of Commerce as well as in the Securities and Exchange Commission Statistical Bulletin.

Private Pension Funds

An annual survey is published of private pension plans other than those administered by insurance companies, showing the flow of money into these funds, the types of assets in which the funds are invested and the principal items of income and expenditures. Quarterly data on assets of these funds are published in the Statistical Bulletin.

Stock Trading of Financial Institutions

A new statistical report published in June 1966 contained data on stock trading of four principal types of financial institutions. Information on purchases and sales of common stock by private non-insured pension funds and non-life insurance companies has been collected on a quarterly basis by the Commission since 1964; these data are com

bined with similar statistics prepared for mutual funds by the Investment Company Institute and for life insurance companies by the Institute of Life Insurance. A quarterly release is being published in the current fiscal period.

Financial Position of Corporations

The series on the working capital position of all United States corporations, excluding banks, insurance companies and savings and loan associations, shows the principal components of current assets and liabilities, and also contains an abbreviated analysis of the sources and uses of corporate funds.

The Commission, jointly with the Federal Trade Commission, compiles a quarterly financial report of all United States manufacturing concerns. This report gives complete balance sheet data and an abbreviated income account, data being classified by industry and size of company.

Plant and Equipment Expenditures

The Commission, together with the Department of Commerce, conducts quarterly and annual surveys of actual and anticipated plant and equipment expenditures of all United States business, exclusive of agriculture. After the close of each quarter, data are released on actual capital expenditures of that quarter and anticipated expenditures for the next two quarters. In addition, a survey is made at the beginning of each year of the plans for business expansion during that year.

Directory of Registered Companies

The Commission annually publishes a listing of companies required to file annual reports under the Securities Exchange Act of 1934. In addition to an alphabetical listing, there is a listing of companies by industry group classified according to The Standard Industrial Classification Manual.

Stock Market Data

The Commission regularly compiles statistics on the market value and volume of sales on registered and exempted securities exchanges, round-lot stock transactions on the New York exchanges for account of members and non-members, odd-lot stock transactions on the New York exchanges and block distributions of exchange stocks. Publication of odd-lot transactions in 75 selected stocks on the New York Stock Exchange was begun in the fall of 1964. Since January 1965, the Commission has also been compiling statistics on volume of overthe-counter trading in common stocks listed on national securities exchanges based on reports filed under Rule 17a-9 of the Securities Exchange Act dealing with the "third market."