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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. 1 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). 2 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. CONFIDENTIAL (FR) SUPPLEMENT CURRENT ECONOMIC AND FINANCIAL CONDITIONS Prepared for the Federal Open Market Committee By the Staff Board of Governors of the Federal Reserve System April 8, 1966 SUPPLEMENTAL NOTES 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. Next 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. -2- Corrections 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: read: 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.
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