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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. July 14, 1967. CONFIDENTIAL (FR) MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments The sharp rise in Treasury bill yields from the latter part of June to early July was the most notable recent development in the short-term market area since the last meeting of the Committee. The 3-month bill rate rose to a peak (close of business) of 4.29 per cent from the unusual low relative to other short-term market rates of 3.33 per cent to which it had fallen in the wake of reinvestment demand from holders of the maturing June tax bills. quoted 4.18 per cent. Most recently it has been Longer-term bill yields have shown similar move- ment, with the 1-year bill rising to a peak of 4.92 per cent and most recently quoted 4.85 per cent. The upward movement in bill rates, while partly seasonal in nature, was fueled by the Treasury financing announcement in late June of $6.2 billion of cash borrowing in the bill area. Interest rates on other short-term market instruments-- such as on commercial and finance company paper and certificates of deposit--have also moved up since the last meeting of the Committee, but by considerably less than the rise in bill rates. The rise in the short-term market rate structure was limited by the ample availability of reserves to the banking system and the continuation of relatively comfortable over-all money market conditions. The effective rate on Federal funds has continued to average just below 4 per cent. In consequence, borrowing costs have been relatively low to dealers, although there was a slight rise in dealer loan rates at FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, where available, weekly averages of daily figures) Money arket Indicators I Bond Yields Flow of Reserves. Bank Credit and Money Free teserves Period (In Borrowings millions Federal 3-month Funds TreasRate of dollars) U.S. ury Gov't. Bill Corporate MuniciNew pal Issues (20 yr.) (Aaa)I/ Nonborrowed (Aaa) Total Re- serves Reserves (I iion Bank Credit Proxy (In Supply billions Deposits 2 of dollars) (Seasonally Adjusted) 1966--June July Aug. Sept. Oct. Nov. Dec. -352 -359 -374 -390 -425 -235 -196 722 439 740 765 766 605 529 5.13 5.18 5.45 5.30 5.46 5.75 5.39 4.50 4.78 4.95 5.36 5.33 5.31 4.96 4.73 4.84 4.95 4.94 4.83 4.88 4.76 5.35 5.48 5.64 5.82 5.70 5.71** 5.73** 3.60 3.77 3.91 3.93 3.82 3.78 3.79 - 16* +13b* -302 + 5 -134 +108 + 21 + 3* +224* -400 +129 -195 - 35 + 21 + + + 0.9* 2.1* 0.7 0.1 0.7 1.1 0.9 + 0.9 - 1.5 -+ 0.9 - 0.9 - 0.4 + 1.1 + + + + + + 1.5* 2.0* 1.4 0.4 0.3 0.1 1.2 1967--Jan. Feb. Mar. Apr. May - 59 + 42 +172 +199 +275 476 366 196 150 94 4.87 4.99 4.50 4.03 3.94 4.72 4.56 4.26 3.84 3.60 4.51 4.61 4.56 4.64 4.90 5.43** 5.18** 5.31** 5.38** -5.62** 3.50 3.38 3.47 3.50 3.71 +492 +359 +541 +122 +102 +331 +272 +451 + 31 - 29 + + + + + 3.3 3.1 3.2 2.9 0.4 + + + + + + + + 2.5 2.6 2.1 2.0 2.1 +257 88 3.97 3.53 4.99 5.79** 3.80 + 59 +155 + 1.9 + 1.9 + 2.3 +324 +170 +279 +159 +597 43 91 141 353 69 4.00 3.97 4.05 3.78 3.98 3.51 3.56 3.51 4.07 4.19 4.93 5.04 5.09 5.06 4.97 5.74** 5.79** 5.92** 5.86** 5.81** 3.78 3.83 3.85 3.85 3.87 + + + + + + + + + + + + June p 1967--June July 14 21 28 5 12 p p p p p Averages Year 1966 Second Half 1966 First Half 1967 -283 -338 +153 672 763 222 5.06 5.39 4.38 16 -346 732 ov. 16-Mar. 29 ar. 29-July 12 - 23 +262 397 123 1.1 1.0 1.3 0.6 0.7 0.7 0.8 2.4 0.7 2.0 0.2 0.5 0.3 1.0 -- 0.9 0.1 0.2 0.7 0.3 Annual rates of increase 3/ 4.85 5.12 4.09 4.77 4.87 4.70 5.41** 5.74** 5.45** 3.67 3.83 3.56 5.43 5.13 4.89 5.72** 3.85 5.01 3.98 4.70 3.72 4.64 4.86 5.36** 5.65** 3.57 3.70 + 0.8* - 1.5* +14.8 + 1.2* - 2.2* +10.4 + 3.7* + 0.3* +12.2 + 1.9 - 0.9 + 6.7 + 8.4* + 6.1* +17.1 - 3.1 - 3.0 + 4.4 +13.6 + 6.2 + 7.4 + 6.6 +15.8 +14.7 Recent variations in growth July 6-Nov. 1 11 11 Issues carry a 5-year call protection; ** inclu des issues carrying 5-year and 10-year call protection. Time deposits adjusted at all commercial banks. 3/ Base is average for month preceding specified period or in case of weekly periods, the first week shown. * - Changes have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. July 14, 1967. I/ 2/ CONFIDENTIAL (FR) -2- July 14, 1967. New York City banks toward the end of June and in early July partly in connection with midyear statement date window dressing by banks and uncertainties about the flow of bank funds around the July 4th holiday period. The midyear bank statement date, which fell on a Friday, and the holiday, which fell on a Tuesday of the same reserve settlement week, contributed to a sharp rise in member bank borrowings (to $353 million) and in excess reserves (to a high $482 million) in the week ending July 5. Borrowings dropped off sharply in the subsequent week to a more representative $69 million. Meanwhile, excess reserves rose further to $666 million, an increase which was in line with the previous seasonal movements at this time of year as country banks hold large excess reserves in the week following the holiday period. Over-all, during the four statement weeks ending July 12, borrowings averaged about $165 million, excess reserves $460 million, and free reserves $295 million. In the previous four weeks borrowings had averaged less, $68 million, while excess reserves were also lower, $352 million; free reserves consequently averaged $284 million. In the period since the last meeting of the Committee, the Account Management has provided almost $1.7 billion of reserves through outright gross purchases of Treasury securities. With upward interest rate pressures focused in the bill area, $1.5 billion of these transactions were in bills, about two-fifths representing purchases from foreign accounts. Most recently, the post-holiday return flow of CONFIDENTIAL (FR) -3- July 14, 1967. currency from circulation and the usual midmonth rise in float has led to a need to absorb reserves and the System has redeemed maturing bills and made outright bill sales totaling about $660 million. Taking account of another bill redemption late last month, System Open Market operations have added $740 million of securities, net, to the portfolio since the last meeting. Purchases of coupon issues since the last meeting totaled about $135 million, with $55 million maturing in over 5 years. The availability of coupon issues for purchase has been sharply reduced; dealers' positions in coupon issues maturing in more than a year have declined by $370 million from their level at the time of the last meeting, and their positions in securities maturing in more than 5 years have recently hovered around zero. The atmosphere in long-term markets has improved at least partly because of shifting expectations regarding defense spending and the likelihood of a tax increase, but markets continue to be more than usually sensitive to any further changes in market psychology. Recent corporate issues have generally been well received at declining yields, although some aggressively priced issues have moved slowly. In the municipal market, while inventories remain sizable, there has been some improvement in distribution at the somewhat higher yield levels that have been reached. Bank credit expansion in June (as measured by the daily average bank credit proxy) averaged almost 9 per cent, slightly more than previously estimated, as business loan increases around the tax July 14, 1967. -4- CONFIDENTIAL (FR) period were larger and somewhat more persisting than expected. The privately held money supply expanded at a 13 per cent annual rate, mainly reflecting the reduction in Treasury balances on average during the month. Time and savings deposits grew by 16 per cent. In meeting expanded loan demands, banks also increased borrowings from abroad by an amount which would add almost 1 percentage to the daily average credit proxy. For the seven months ending in June--covering the period in which monetary policy became relatively easy--bank credit has risen by 11 per cent (10 per cent after including a decline in borrowings abroad through branches over the whole period), time deposits by 16 per cent, the money supply by 7 per cent, total reserves 9 per cent, and nonborrowed reserves by 13 per cent. Prospective developments The July 11 payment date for the Treasury's $4 billion tax bill financing (with payment by full tax and loan credit) was about a week earlier than anticipated and is the principal factor contributing to the rise in projected average bank credit expansion in July to a 13-15 per cent range. Moreover, the yields on the tax bills were so attractive relative to yields in the outstanding market, even discounting the full value of tax and loan credit, that banks have been selling such bills off relatively slowly. Bank credit expansion over the balance of summer will be influenced by the timing of additional Treasury borrowings for the sizable amounts of new cash that, at the moment, appear to be required before late summer. A mid-August refunding CONFIDENTIAL (FR) July 14, 1967. of $3.6 billion of maturing coupon securities will be announced toward the end of July. If the Treasury does not raise significant amounts of new cash until early September, the rate of bank credit expansion in August is likely to be considerably slower than in July, perhaps only half as rapid on the average. It is expected that banks will continue to invest in municipal securities, to show an interest in recent attractively priced Federal Agency issues, and to continue seeking to invest in Treasury securities for liquidity purposes since many banks are still preparing for an expected stronger loan demand in the fall. In August, however, we expect business loans to show relatively little growth, as the late June-early July primarily tax-related borrowings are repaid and as inventory financing needs remain small. The recent small pick-up in real estate lending, primarily at weekly reporting banks, may continue and perhaps become more widespread, although the magnitudes involved are not likely to affect the bank credit total to any great extent. Insofar as can be judged at this time, theae short-run bank credit projections appear broadly consistent with the 10 per cent bank credit growth over the entire second half of 1967 contained in the GNP and financial projections presented to the Committee at its last meeting. Our Blue Book projections suggest a 10-12 per cent annual rate of increase for July and August together. While credit growth is projected to slacken during August, it is likely to begin to pick up in September as the Treasury begins to meet its fall cash financing needs and assuming no prolonged auto strike. CONFIDENTIAL (FR) -6- July 14, 1967. Money supply is expected to rise in a 5-7 per cent range on average in July, though levelling off after early July and into August as banks slowly reduce their holdings of the new tax bills and as loan repayments liquidate some private demand deposits. Time and savings deposits in July may grow in a 14-16 per cent range, with some fall-off from that pace expected in August as consumer spending rises Some savings could also be diverted to Treasury issues, further. depending on the nature of and the terms offered in the mid-August refunding. All of the above projections assume no change in the prevailing money market conditions. Thus, they assume continuation of a Federal funds rate averaging just below 4 per cent, new dealer loan rates in New York in a 4-1/8 - 4-3/8 per cent range, and member bank borrowings generally remaining below $100 million. Excess reserves appear likely to decline from the unusually high average levels of recent weeks, moving free reserves down into a $200-$300 million range. In particular, excess reserves and free reserves are likely to drop very low in the week of July 19, as country banks funnel into the money market some of the large reserve excesses cumulated in the week of July 12. Given such conditions, the annual rates of increase for the various reserve aggregates in July are likely to be in a 15-18 per cent range, since an increased share of reserves will be required against the growth in private and Government demand deposits. The growth rates are likely to slacken markedly over the balance of summer mainly because of the much slower demand deposit growth anticipated. CONFIDENTIAL (FR) -7- July 14, 1967. The projected reserve expansion may be sufficient to keep the 3-month Treasury bill rate in a 4.00-4.30 per cent range between now and mid-August. But behavior of bill rates will be strongly influenced by Treasury financing decisions, the forthcoming new budgetary projections for fiscal 1968, and by decisions with respect to a tax increase. Such decisions are likely to be even more influential with respect to the long-term market, where a program introducing fiscal restraint could lead to some further bond yield declines, despite the large calendar of corporate and municipal issues and the imminent Treasury refunding. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) _ _ _1 Excess * Period a a.6M 2r0r a ..o As * __ Member banks * ... r evised &a...w Free ap to _ _ _ _ _ r e serves __ date As expected at conclusion of each week's open market opeations -_ Monthly (reserves weeks ending in): As first published each week 370 380 366 375 341 370 333 -352 -359 -374 -390 -425 -235 -196 417 408 368 349 364 345 - + 42 +172 +199 +270 +257 5 12 19 26 447 226 478 246 +267 + 81 +300 +148 +339 +154 +312 +169 +300 +184 +305 +171 May 3 10 17 24 31 405 329 404 327 381 +271 +266 +281 +277 +279 +345 +260 +261 +288 +264 +343 +262 +291 +291 +264 June 7 14 p 21 p 28 p 331 367 261 420 +254 +324 +170 +279 +284 +325 +198 +304 +290 +339 +229 +292 482 666 +129 +597 +152 +597 +168 +604 1966--June July August September October November December 1967--January February March April May June p _I 59 Weekly: 1967--Apr. July 5 p 12 p p - Preliminary TABLE A-2 AGGREGATE RESERVES AND RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) Re s e rve Total Reee Reserves Ag r e ates Required reserves onborrowed Nonborrowed Reserves Toa Total Resers I Against DeaBank Demand Monet a rv Variab 1 es Time Money Supply Total Member an De i Deposits Deposits (credit) l/ (cr ) Deposits Dps (comm. banks) Private Total Demand _ Deposits Annually: 1965 + 5.3 + 4.3 + 5.3 + 2.3 + 9.1 +16.0 + 4.7 + 4.4 1966 + 1.2 + 0.8 + 1.5 - 0.2 + 3.7 + 8.4 + 1.9 + 0.9 Monthly: 1966--January February March April May June 2/ July 2/ August 2/ September 2/ October 2/ November 2/ December 2/ + 6.7 + 4.0 + 2.9 +13.2 + 0.3 + 0.2 +11.4 -20.2 + 6.6 -10.0 - 1.8 + 1.1 + 9.5 + 3.1 - 4.6 +10.9 + 0.1 - 0.8 + 7.1 -15.8 - 0.3 - 7.1 + 5.7 + 1.1 + 6.9 + 2.9 + 2.7 +11.9 + 2.1 + 1.6 + 8.4 -14.8 - 0.2 - 1.1 - 7.6 + 4.9 +11.3 + 3.8 + 4.0 +11.7 - 4.8 + 1.3 + 2.9 -17.3 - 3.2 - 2.0 - 8.2 - 1.6 + 8.1 + 3.5 + 5.5 +15.5 + 4.9 + 4.4 +10.3 - 3.4 - 0.5 - 2.9 - 5.4 + 3.9 + 7.4 + 5.7 + 8.1 +15.3 +12.7 +11.8 +15.5 +10.0 + 3.0 - 2.3 + 0.8 + 9.1 + 5.7 + 1.4 + 7.8 +11.3 - 4.9 + 6.3 -10.5 -+ 6.4 - 6.3 - 2.8 + 7.8 + 4.6 -+ 8.2 +12.7 - 7.2 + 7.2 -16.2 - 0.9 + 7.3 - 8.1 - 4.6 + 8.2 1967--January 2/ February 2/ March 2/ April 2/ May 2/ +17.1 +13.8 +22.7 + 1.5 - 1.4 +26.0 +18.6 +27.6 + 6.1 + 5.1 +13.5 +14.3 +15.3 + 9.3 - 2.1 +12.7 + 9.0 +17.0 +10.2 -11.4 +16.1 +15.0 +15.3 +13.7 +1.9 +18.1 +19.3 +15.3 +14.4 +15.0 - 4.9 + 5.7 +16.9 - 4.9 +13.9 - 9.1 + 5.5 +20.0 - 7.2 +16.2 + 7.6 + 2.9 + 4.2 + 1.0 + 8.8 +16.2 +13.1 +15.1 June 2/ p 1/ Includes all deposits subject to reserve requirements. movements in total member bank credit. Movements in this aggregate correspond closely with p - Preliminary. 2/ Changes in reserves, total deposits, and time deposits have been adjusted for redefinition of time deposits effective June 9, 1966. Changes in reserves have been adjusted for increases in reserve requirements in July and September 1966, and reduction in reserve requirements in March 1967. Chart 1 MEMBER BANK RESERVES MONTHLY AVERAGES OF DAILY FIGURES [ BILLIONS OF DOLLARS, SEASONALLY ADJUSTED 24.0 TOT AL RESERVES 23.5 RESERVES REQUIRED * 23.0 22.5 NET 21.5 NON BORROWED A 22.0 - BORROWED I 2 RESERVES RESERVES - -- 21.0 S 1965 D M J 1966 S D M 1967 J Chart 2 MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF DOLLARS 260 I 256 252 248 244 240 236 LIABILITIES TO OVERSEAS BRANCHES [WEEKLY REPORTING BANKS) NOT SEAS ADJ, WEDNESDAYS I I I I I I I I I I I I J 1966 1967 I Chart 3 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS BILLIONS OF DOLLARS 180 175 MONEY SUPPLY 170 165 TIME DEPOSITS ADJUSTED (All Commercial Banks)- 160 155 150 145 - 140 135 130 125 NEGOTIABLE CD'S (Unadjusted) 20 115 I I I I I S 1965 I D I I I M I I J 1966 S I I D I I M 10 I J 1967 *CHANGE IN SERIES Chart 4 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 45 40 35 30 140 135 130 125 120 15 U.S. GOVT. DEMAND (Member DEPOSITS Banks) 10 5 II l l ll Il l ll l ll^l 0 1965 1966 1967 Table B-1 MAJOR SOURCES AND USES OF RESERVES Retrospective and Prospective (Dollar amounts in millions, based on weekly averages of daily figures) Factors affecting supply of reserves Period Federal Reserve credit (excl. float) 1/ Gold Currency outside banks stock = Technical factors net 2/ Change = Bank use of reserves in total reserves Required reserves 3/ +1,089 +1,085 +1,188 +1,111 - 99 26 Excess s reserves ACTUAL Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +4,035 +3,149 -1,602 - 627 -2,143 -2,243 + + Year-to-date: (12/29/65 - 7/13/66) (12/28/66 - 7/12/67) +2,124 +2,708 - - 810 582 - 794 -2,232 + - 172 155 - 89 384 + + 261 229 + + 445 106 72 170 + + + - 334 565 370 782 + + + - 117 39 548 222 + + + - 167 3 654 381 + + 50 36 106 159 -- - 469 372 + 266 395 + + 356 133 + - 294 71 + + 62 184 Weekly: 1967--June July 7 14 p 21 p 28 p + + + 5 p 12 p +1,090 + 88 228 420 105 391 351 49 -- 1 --- + 2 798 805 PROJECTED j/ 1967--July Aug. For For For See 19 - 220 -- + 290 + 240 + 310 + 310 26 - 115 -- + 205 - 170 - 80 - 80 2 + 275 -- - 20 - 365 - 110 - 110 9 + 495 -- -495 - 85 - 85 - 16 23 - 470 280 --- + + 115 65 + + 205 35 - 150 180 - 30 + 50 -- + 155 - 280 - 75 - retrospective details, see Table B-4. factors included, see Table B-3. required reserves by type of deposits, see Table B-2 reverse side for explanation of projections. p - Preliminary. 85 150 180 75 Table B-2 CHANGES IN REQUIRED RESERVE COMPONENTS Retrospective and Prospective Seasonal and Nonseasonal Changes (Dollar amounts in millions, based on weekly averages of daily figures) Total required Period reeres reserves Supporting U. S. Gov't. U. S. G demand deposits Supporting private deposits _ Seasonal changes Total _seasonal ___ Time Demand Other than Oe han changes Tm Da Time Demand ACTUAL Year: 1965 (12/30/64 1966 (12/29/65 - 12/29/65) 12/28/66) Year-to-date: (1L/29/65 - 7/13/66) (12/28/66 - 7/12/67) Weekly: 1967--June July +1,188 +1,111 - 89 - 87 +1,277 +1,194 + 115 - 14 - 487 304 - 878 937 + + + 244 205 236 - 402 + 139 - 4 4 +499 - 5 + 677 +1,221 1/ + 81 + 85 + 65 +760 + 245 - 212 - 89 384 +398 - 7 14 21 28 + + + - 167 3 654 381 -214 -138 +337 + 59 + + 381 141 - 317 440 5 12 + - 294 71 - 14 - 50 + 308 - 21 19 26 + - 310 80 +195 +115 + - 115 195 + - 150 155 + 2 9 16 23 30 - 110 85 150 180 75 -170 --215 5 -100 + + + 60 85 65 175 25 + + + 75 135 45 190 15 - - 80 +111 - 86 + 4 4 - 19 - 23 5 - 50 - 60 + + 20 20 5 --5 - 30 + 30 --- + + + + + 20 20 20 15 15 + 88 - 48 +139 PROJECTED .967--July Aug. 1/ Reflects reserve requirements changes in July and September 1966. 2/ Reflects reserve requirements changes in March 1967. p - Preliminary. -- Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Foreign deposits and gold loans (Sign indicates effect on reserves) Technical factors (net) Period Other nonmember deposits and F. R. accounts Treasury operations Float 798 805 +294 +673 -171 + 64 794 -197 -696 -283 -1,073 + 10 - 6 - 33 +152 + 6 - - 5 ACTUAL Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +598 + 98 + 77 - 30 Year-to-date: (12/29/65 - 7/13/66) (12/28/66 - 7/12/67) Weekly: 1967--June July - -2,232 7 14 21 28 + + + 334 565 370 +137 +271 - 782 -431 +171 + 59 +328 -300 -208 + 2 -177 +473 - 35 +115 +175 -280 - 266 + 395 19 26 + 240 - 170 2 - 365 85 -365 + + 205 35 - 280 +160 +150 -280 5 12 Aug. 9 16 23 30 h - 1 +235 + 84 + 27 - 45 86 1 1 PROJECTED 1967--July - 52 -280 -477 - 34 + 14 - h +100 85 + 45 -115 A .1. Table B-4 SOURCE OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions of dollars, based on weekly averages of daily figures) Total Federal Reserve credit Period float) (Excl.______Bills U.S. Government securities Total Repurchase Other holdings agreements 'ear: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +4,035 +3,149 +3,916 +3,069 +3,145 +2,158 +916 +474 -145 +437 Year-to-date: (12/29/65 - 7/13/66) (2/28/66 - 7/12/67) +2,124 +2,708 +1,804 +3,232 +1,583 +3,062 +439 +776 -218 -606 +253 +163 -157 -300 + 69 Weekly: 1967--May June July 3 10 17 24 31 + + + 533 256 368 106 221 450 337 383 13 196 197 174 226 185 34 +102 + 93 7 14 21 28 + + + 228 420 105 391 227 357 58* 286* 125 315 65 223 + 87 + 42 + 44 +126 + 15 5 12 +1,090 + 88 866 347 766 346 + 65 + 35 + 1 - 84 Federal Agency Securities - 21 Bankers' acceptances Member banks borr ngs borrowings + 77 + 52 + 42 + 2 + 48 - 24 +272 -479 + + + 36 71 60 73 52 25 34 48 50 + - 2 2 + + + + 3 2 +212 -284 + 67 - 51 * - Includes effect of change in special certificates of +$12 million of the week of of the week of June 28, 1967. June 21, 1967 and -$12 million Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures)' Period Total reere reserves Nonborrowed r reserves Total Required reserves Against private deposits D T Total Demand 1965--January February March April May June July August September October November December 21,960 22,157 22,279 22,449 22,436 22,612 22,682 22,689 22,667 22,737 22,748 23,010 21,625 21,771 21,814 21,953 21,994 22,082 22,158 22,186 22,114 22,248 22,341 22,523 21,563 21,713 21,868 22,036 22,109 22,243 22,332 22,299 22,259 22,439 22,402 22,657 20,702 20,765 20,881 20,985 20,962 21,138 21,247 21,331 21,553 21,720 21,803 21,970 15,730 15,717 15,789 15,831 15,750 15,877 15,912 15,916 16,071 16,151 16,168 16,285 1966--January February March April May June 1/ July 1/ August 1/ September 1/ October 1/ November 1/ December 1/ 23,139 23,217 23,274 23,530 23,536 23,539 23,763 23,363 23,492 23,297 23,262 23,283 22,701 22,759 22,671 22,877 22,878 22,862 22,997 22,695 22,700 22,566 22,674 22,695 22,788 22,844 22,896 23,123 23,163 23,193 23,355 23,067 23,064 23,042 22,896 22,990 22,075 22,084 22,269 22,477 22,453 22,582 22,515 22,517 22,597 22,430 22,383 22,522 16,364 16,356 16,510 16,625 16,534 16,626 16,472 16,428 16,497 16,352 16,321 16,411 1967--January 1/ February 1/ March 1/ April 1/ May 1/ June 1/p 23,614 23,886 24,337 24,368 24,339 24,494 23,187 23,546 24,087 24,209 24,311 24,370 23,248 23,526 23,825 24,009 23,966 24,049 22,525 22,733 23,069 23,059 23,304 23,658 16,317 16,421 16,682 16,585 16,757 17,025 p - Preliminary. 1/ Reserves have been adjusted for redefinition of time deposits effective June 9, 1966. Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar amounts in billions, based on monthly averages of daily figures) Total member bank deposits (credit) 1/ 2/ Monthly Time is Private demand deposits 3/ U.S. Gov't. demand deposits 1965--January February March April May June July August September October November December 218.4 220.4 222.5 224.6 225.8 227.7 229.1 230.4 231.1 233.5 234.5 236.4 106.0 107.6 108.6 109.9 111.1 112.2 113.8 115.5 116.9 118.7 120.2 121.2 107.4 107.3 107.8 108.1 107.5 108.4 108.6 108.6 109.7 110.2 110.4 111.2 5.0 5.5 6.1 6.7 7.2 7.1 6.7 6.3 4.6 4.5 4.0 4.0 1966--January February March April May June 3/ July 3/ August 3/ Sept. 3/ Oct. 3/ Nov. 3/ Dec. 3/ 238.0 238.7 239.8 242.9 243.9 244.8 246.9 246.2 246.1 245.5 244.4 245.2 121.8 122.1 122.8 124.8 126.2 127.0 128.9 129.8 130.1 129.6 129.3 130.3 111.7 111.6 112.7 113.5 112.9 113.5 112.4 112.1 112.6 111.6 111.4 112.0 4.5 5.0 4.3 4.7 4.8 4.3 5.6 4.2 3.5 4.3 3.7 2.9 1967--Jan. Feb. Mar. Apr. 248.5 251.6 254.8 257.7 258.1 260.0 132.4 134.6 136.2 138.0 139.6 141.4 111.4 112.1 113.9 113.2 114.4 116.2 4.8 4.9 4.8 6.4 4.1 2.4 3/ 3/ 3/ 3/ May 3/ June 3/ 1/ 2/ 3/ p Includes all deposits subject to reserve requirements--i.e., the total of time, private demand, and U.S. Government demand deposits. Movements in this aggregate correspond closely with movements in total member bank credit. Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. Private demand deposits include demand deposits of individuals, partner- ships and corporations and net interbank balances. p - Preliminary. TABLE C-2a DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar amounts in billions Week ending: 1967--Mar. based on weekly averages of daily figures) Total member bank deposits Time deposits (credit 1/ 2/ 2/ Private demand U. S. Gov't. demand deposits 3 / deposits 252.0 252.5 254.0 256.2 256.5 134.9 135.5 136.2 136.5 136.8 112.6 112.9 113.9 113.9 114.2 4.5 4.1 3.9 5.8 5.6 Apr. 5 12 19 26 256.4 257.6 257.6 258.3 137.1 137.7 138.0 138.3 114.7 114.0 113.0 111.8 4.6 5.8 6.5 8.2 May 3 10 17 24 31 258.4 258.5 258.4 257.4 258.0 138.6 139.1 139.5 139.8 140.4 112.9 112.9 114.5 114.9 115.8 6.9 6.5 4.4 2.7 1.8 June 7 14 p 21 p 28 p 269.1 260.2 261.2 259.8 140.8 141.6 116.6 116.0 116.2 116.1 1.7 2.8 3.5 2.1 5 p 12 p 260.4 261.1 142.3 142.8 116.8 116.6 1.4 1.8 July 141.4 141.5 p - Preliminary. 1/ Includes all deposits subject to reserve requirements--i.e., the total of time, private demand, and U.S. Government demand deposits. Movements in this aggregate correspond closely with movements in total member bank credit. 2/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. 3/ Private demand deposits include demand deposits on individuals, partnerships and corporations and net interbank balances. TABLE C-3 MONEY SUPPLY AND TIME DEPOSITS AT ALL COMMERCIAL BANKS Seasonally adjusted (Dollar amounts in billions, based on monthly averages of daily figures) Monthly Money Supply Currency 1/ Private Time Deposits Demand Deposits / Adjusted 1965--January February March April May June July August September October November December 159.7 159.8 160.3 161.0 160.7 161.7 162.4 163.0 164.1 165.2 165.6 167.2 34.5 34.6 34.7 34.8 34.9 35.0 35.3 35.5 35.7 36.0 36.1 36.3 125.3 125.2 125.6 126.2 125.8 126.7 127.2 127.5 128.5 129.3 129.5 130.9 128.7 130.7 132.0 133.3 134.6 136.2 137.9 140.0 141.6 143.7 145.5 146.9 1966--January February March April May June 3/ July 3/ August 3/ September3 October 3/ November 3) December 3 168.0 168.2 169.3 170.9 170.2 171.1 169.6 169.6 170.5 169.6 169.2 170.3 36.6 36.8 36.9 37.2 37.3 37.4 37.7 37.8 37.9 38.0 38.0 38.3 131.4 133.7 132.3 133.7 132.9 133.7 131.9 131.8 132.6 131.7 131.2 132.1 147.8 148.5 149.5 151.4 153.0 154.5 156.5 157.8 158.2 157.9 158.0 159.2 1967--January 3/ February 3) March 3/ April 3/ May 3/ June 3/ p 169.6 170.4 172.8 172.1 174.1 176.0 38.5 38.7 38.9 39.0 39.2 39.4 131.1 131.7 133.9 133.1 134.9 136.6 161.7 164.3 166.4 168.4 170.5 172.8 3/ Includes currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. 2/ Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U.S. Government, less cash items in process of collection and Federal Reserve float; and (2) foreign demand balances at Federal Reserve Banks. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. 1/ TABLE C-3a MONEY SUPPLY TIME DEPOSITS AT ALL COMMERCIAL BANKS Seasonally Adjusted (Dollar amounts in billions, based on weekly averages of daily figures) 1967--Mar. 1 8 15 22 29 171.0 172.0 173.1 172.6 173.6 38.7 38.9 39.0 39.0 39.1 132.3 133.0 134.1 133.6 134.5 165.0 165.5 166.3 166.7 167.1 Apr. 5 12 19 26 173.4 173.0 171.6 170.8 38.9 39.1 39.1 39.0 134.6 134.0 132.6 131.8 167.6 168.2 168.6 168.8 May 3 10 17 24 31 172.2 172.6 174.7 174.7 175.0 39.1 39.2 39.1 39.2 39.2 133.2 133.4 135.6 135.5 135.8 169.2 169.8 170.4 170.7 171.4 June 7 14 p 21 p 28 p 175.5 175.7 176.2 175.9 39.3 39.4 39.4 39.4 136.3 136.3 136.8 136.6 172.0 172.9 173.0 173.2 July 5 p 12 p 176.9 176.9 39.3 39.5 137.6 137.4 173.9 174.2 1/ 2/ 3/ Includes currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U.S. Government, less cash items in process of collection and Federal Reserve float; and (2) foreign demand balances of Federal Reserve Banks. Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary.
@FedFRASER