View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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.

  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).
 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.




Prepared for the
Federal Open Market Committee

By the Staff
Board of Governors
of the Federal Reserve System

April 8, 1966


The Domestic Economy
An advance release of the March monthly wholesale price index
shows no change for the total from the February level which was revised
upward 0.1 to 105.4.

Slight declines in farm products and foods in

March offset a further rise of 0.2 in prices of other commodities.
The book value of retail inventories increased over $300 million

in February, twice as much as in January.

The January-February rate of

increase was down from the fourth quarter of last year but the same as
the average for 1965 as a whole.
durable goods.

The January-February rise was mainly in

Inventories at nondurable goods stores showed only a small

rise over the first two months of the year, following a sharp run-up in
the fourth quarter.

The Domestic Financial Situation
Corporate new issue yields -- adjusted to Aaa basis with no
call protection adjustment -- declined to 4.95 per cent this week.
Investors responded unenthusiastically to the issues included in this
series, and as a result large unsold balances remain in syndicate.


week's calendar of new corporate issues was greatly expanded by the
inclusion of Allied Chemical Corp.'s $150 million debenture offering
which has apparently influenced recent investor behavior.



Page I - 4:

Substitute "extant" for "extent" in the first

line of the text.
Page III - 11:

Substitute "relatively" for "reluctantly"

in the last sentence of paragraph one.

Page III - 12:

Next to last sentence, paragraph 2 should

Very recently several new offerings have been added to the

near-term calendar, which would appear to be consistent with longerrun projections that show large continuing business needs for funds.
Page III - 12:

Substitute "expensive" for "excessive" in

second line of paragraph two.