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Content last modified 6/05/2009.
CONFIDENTIAL (FR)
February 28, 1969.
MONEY MARKET AND RESERVE RELATIONSHIPS
Recent developments
(1) Evidence of the System's current firm policy posture has
become more widespread in the four weeks since the last Committee meeting.
Apart from yields on short-term billsboth short- and long-term interest
rates have generally edged higher on balance.
The 3-month bill rate, at near
6.20 per cent, is at about the same level as four weeks ago.
It dropped
to a low of around 6 per cent in the third week of February, given the
relative scarcity of supply and strong liquidity demands by investors.
Subsequently the bill rate recovered, reflecting partly anticipations of
further prime rate and/or monetary policy moves and partly market reaction
to the rise in the British bank rate to 8 per cent.
(2) The Treasury's February refunding resulted in an attrition
of $2 billion, or 36 per cent of public holdings of the maturing issues,
with only $800 million of such holdings being exchanged for the 6-1/4 per
cent 7 year note.
Thus, a sizeable demand for bills from the attrition
in the refunding was added to other bill demands.
The Treasury's
announcement in February of a $1 billion bill "strip," consisting of
$200 million additions to the monthly bills maturing in April-August,
provided some relief for the scarcity conditions in the bill market.
(3) Demands for Federal funds in the market increased during
the period as the basic reserve position of major New York banks swung
FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE
Period
('Ionthlv averages and, where available, weekly averages of daily figures)
Bond Yields
Flow
Corporate Munici- Nonborrowed
pal
New
U.S.
Reserves
Gov't.
Issues
(Aaa)
(In mil
(Aaa)1/
(20 yr)
Money arket Indicators
Federal 3-month
BorrowFree
Funds Treasings
eserves
ed
Rate
ury
(In millions
Bill
4/
of dollars)
of
dol
1967--Dec.
143
185
4.51
4.96
5.59
6.51
4.15
-294
-122
+ 0.2
+ 0.3
+ 1.5
968--Jan.
Feb.
Mar.
Apr.
May
June
142
21
-312
4.60
4.72
5.05
5.76
6.12
6.07
6.02
6.03
5.78
5.92
5.81
6.02
6.30
n.a.
6.27
6.32
6.35
6.75
6.43
5.00
4.98
5.17
5.38
5.66
5.39
5.38
5.59
5.46
5.55
5.40
5.29
5.22
5.28
5.44
5.56
5.88
5.99
n.a.
5.99
6.13
6.07
6.05
6.14
6.22*
6.25*
6.57*
6.50*
6.64
6.65
6.50*
6.16
6.27
6.47
6.57
6.79
6.92
6.92*
6.92
6.97
6.91*
6.90
6.93*
4.06
4.01
4.28
4.13
4.28
4.26
4.12
4.00
4.23
4.21
4.33
4.50
4.58
4.74
4.60
4.72
4.72
4.70
4.80
+345
+208
-266
-197
+347
+265
+ 47
-189
+ 88
+105
+107
+508
- 36
+215
+122
+244
+185
+ 29
+ 1.5
+ 2.3
+ 1.0
+ 1.0
+ 0.4
+ 0.7
-374
-386
-192
-240
-146
-192
-255
-327
-491
-604
-7u3
-509
-621
-694
-592
275
368
649
689
728
727
523
577
492
458
541
743
715
836
891
744
797
1,043
758
+ 0.6
+ 1.1
+ 1.5
+ 0.4
+ 0.5
+ 0.6
Year 1968
First Half 1968
Second Half 1968
-210
-201
-218
548
567
529
5.58
5.39
5.77
Avera es
5.45
5.36
5.46
5.29
5.44
5.42
6.47
6.47
6.50
4.20
4.16
4.22
+ 5.2
+ 2.2
+ 8.1
Recent variation
in growth
11/29/67-7/3/68
7/3/68-12/18/68
12/18/68-2/26/69
-159
-203
-524
515
516
838
5.25
5.90
5.24
5.34
5.48
5.40
6.47
6.47
4.15
4.21
+ 3.5
+14.1
+ 8.0
+ 3.4
+ 5.2
+18.1
6.44
6.14
6.04
6.92*
4.64
- 4.0
+ 6.2
-
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969--Jan.
Feb.
1969--Jan.
Feb.
-341
5.52
5.31
5.23
5.19
5.35
5.45
5.96
6.14
n.a.
6.15
6.19
6.14
6.10
6.06
+ 46
+137
+304
+493
+ 29
+264
- 51
- 21
+273
-166
- 1.1
+ 0.9
+ 0.4
+ 1.8
+ 1.5
+ 2.1
+ 1.3
+ 2.0
+
+
+
+
+
+ 0.9
- 0.8
+ 0.7
+ 1.7
+1 2
5.0
2.0
3.0
2.7
3.1
- 1.5**
- 0.2
-0.6
+ 0.3
+
+
+
+ 1.3
+ 0.2
--
-
0
9
0.5
0.4
2.0
1.2
+2.0
+ 2.2
+ 3.4
+ 2.8
+ 2.9
+ 2.4
+ 2.4
- 1.8
- 1.6
- 0.6
- 0.5
+ 0.1
--
0.5
Annual rates of increase-+11.3
+ 6.5
+ 8.6
+ /.2
+ 5.1
+ 6.7
+ 4.1
+ 5.3
+17.1
+ 6.1
+12.8
+ 9.0
Includes issues carrying 5-year and 10-year call protection, * - issues carry a 10-year call protection.
Time deposits adjusted at all commercial banks.
Base is change for month preceding specified period or in case of weekly periods, the first
3/
week shown.
4/ Average of total number of days in period.
p - Preliminary
n.a. - Not available.
** - Reflects $400 million reduction in member bank deposits resulting from withdrawal of a large country bank from
System membership. Percentage annual rates are adjusted to eliminate this break in series.
I/
2/
February 28, 1969.
9.9
-2from a small surplus in the last week of January and early February to a
sizeable deficit on average in the past three weeks.
During this period
banks were unable to build up Euro-dollar borrowings much further, although
paying increasingly high interest rates.
Under the pressure
of market demands, and in view of the tendency for short
bill rates to decline throughout much of February, the Federal funds rate
was permitted to rise, with the daily effective rate often 6-3/4 per cent
and occasionally higher--though the average rate was around 6-1/2 per cent.
(4)
Member bank borrowings in the last four statement weeks
have ranged roughly between $750 million and $1 billion, but were closer
to the lower number in three of the four weeks.
The average level of
borrowings during the period--$836 million--was about $120 million above
that of the preceding four weeks.
The increase took place mainly at
reserve city banks outside New York and Chicago and to a lesser extent
at country banks.
Excess reserves during the recent four weeks remained
near earlier reduced levels, and net borrowed reserves were generally in
a $500 - $700 million range.
(5)
Bank credit in February, as measured by the proxy plus
Euro-dollar borrowings through foreign branches, is now estimated to have
increased at about a 2 per cent annual rate, compared to a 0 to 3 per
cent rate of decline projected in the last Blue Book.
The relative
strength in the proxy reflects primarily a stronger-than-anticipated
performance of private demand deposits at member banks, including interbank deposits.
The money supply is estimated to have grown at a 2-1/2 per
-3cent annual rate, instead of declining.
Currency grew more than expected,
and the larger-than-anticipated attrition in the mid-February refunding
led to a higher average level of private demand deposits.
(6)
Time and savings deposits declined at about a 9-1/2 per
cent annual rate on average in February, impelled mainly by continued
attrition of CD's, estimated at around $1 billion over the course of
the month.
Other time and savings deposits, after contracting in January,
began to rise in February in about seasonal proportions.
(7)
The following table summarizes annual rates of change in
major reserve and deposit aggregates for 1968 and for the first two
months of 1969:
Total reserves
Nonborrowed reserves
Dec. '67June '68
July '68Dec. '68
3.7
9.0
4.8
-0.1
8.1
4.8
Jan.
Feb.
'69'69P
Bank credit, as indicated by:
Proxy
3.7
12.8
Proxy plus Euro-dollars
4.7
13.0
6.7
14.9
-2.8
Total loans and investments
(as of last Wednesday of month)
Money supply
6.1
Time and savings deposits
5.8
17.1
Savings accounts at
thrift institutions
6.1
6.3
NOTE: Dates are inclusive.
p--preliminary.
1/ January only.
6.1
2.8
2.8
-10.0
4.4;
Prospective developments
(8)
Over the coming four weeks, the relationships among day-
to-day money market rates, marginal reserve measures, and other shortterm market variables may continue roughly in track with experience of
the past two months, as best can be gauged at this point.
A 3-month bill
in a 6 - 6.25 per cent range might be consistent with a Federal funds
rate averaging in a 6-3/8 - 6-5/8 per cent range, with member bank
borrowings in a $700 - $900 million range, and net borrowed reserves in
a $500 - $700 million range.
However, both the Federal funds and member
bank borrowings could move higher at times in reflection of shifting
borrowing tactics by banks as they adapt to potential and actual money
market strains--for example, in connection with tax dates.
(9)
In addition to the possibility of a prime loan rate
increase and the high cost of Euro-dollar funds, two other influences
may tend to sustain bill rates in the projected range over the period
immediately ahead.
One is the Treasury's stated need to raise around
$2 billion of new cash for payment in early April, which presumably
will be in the short-term area.
The other is possible large demands by
business for short-term financing from banks or in the market to meet
relatively large March-April corporate income tax payments at a time
when there may still be a relatively large, even though diminishing,
need to finance additional inventories.
(10)
However, there is some probability that the 3-month Treasury
bill rate may drop below the lower end of the range as March progresses,
-5even within a generally unchanged constellation of other money market
conditions.
Such a decline would hinge on the effects of the beginnings
of seasonal repayment of Federal debt, in combination with continuation
of recent pattern of very limited market supplies of short bills and
sizeable market demands for short-term instruments.
These demands may
reflect in part liquidity desires of institutional investors and
individuals who may be uncertain about, among other things, future
stock market trends.
The bill rate may also tend to decline if the much-
rumored prime loan rate increase does not develop.
(11)
Demands for day-to-day borrowings by banks are likely
to be reinforced in the weeks ahead by continued attrition in outstanding
CD's at a time of expected strong seasonal loan demands and reduced bank
liquidity.
In March, outstanding large CD's at banks are expected to
decline by about a further $1 billion, assuming a bill rate at around
the mid-point of the range noted in paragraph (8).
Other time and
savings at banks are expected to show a little more than seasonal growth.
Overall, total time and savings deposits are likely to decline in a 3 - 6
per cent, annual rate, range.
(12)
The money supply is likely to show a marked bulge in
March--to expansion in a 6 - 9 per cent annual rate range--as U.S.
Government deposits are drawn down sharply, on average, following a
build-up, seasonally adjusted, in the previous two months.
The March
rate of money supply growth is not expected to be sustained into spring,
since it is anticipated that transactions demands for cash will be
-6moderating in line with slower GNP growth and that Government cash
balances will be rising from their average level in March.
(13)
With time deposits continuing to contract on average,
with total demand deposits showing little net change (as U.S. Government
deposit declines offset private demand deposit increases), and with
borrowings abroad costly and perhaps limited in availability, outstanding
bank credit is expected to decline somewhat, on average, in March.
As
measured on a daily-average basis by total member bank deposits, the
bank credit proxy is expected to decline in a 4 - 7 per cent annual rate
range.
If Euro-dollar borrowings remain at about current levels, the
adjusted bank credit proxy is likely to decline in a 3 - 6 per cent
annual rate range.
This decline is not expected to persist into April;
continued CD attrition may be roughly offset by a build up in U.S.
Government deposits and growth in other time and savings deposits at
somewhat more than a seasonal pace, assuming the bulk of interestsensitive funds in this category of deposits have already been withdrawn.
(14)
The expected continued strength of loan demands at banks
in the face of reduced availabilities of funds suggests that banks will
be forced to continue liquidating U.S. Government securities, to withdraw
further from the municipal market, and perhaps to begin reducing their
advances to the mortgage market.
Thus, long-term interest rates are
expected to continue under upward pressure.
Any reduction in over-all
credit demands either because of the high cost of borrowing generally or
because of a slowing in economic expansion would tend to counteract the
upward rate pressures generated by the immediate impact of monetary policy
on bank reserves and credit.
Table A-1
MARGINAL RESERVE MEASURES
(Dollar amounts in millions, based on period averages of daily figures)
Member banks
borrowines
Excess
reserves
Period
As
I
revised
Free
to
I
reserves
date
p
Monthly (reserves
weeks ending in):
1968--February
March
April
May
June
As first
published
each week
As
expected
at
conclusion
of each
week's
open
market
operations
389
337
348
354
341
331
337
346
267
286
444
368
649
689
728
727
523
577
492
458
541
744
21
-312
-341
-374
-386
-192
-240
-146
-191
-255
-300
224
232
715
836
-491
-604
4
11
18
25
479
52
368
420
531
434
575
859
- 52
-382
-207
-439
-114
-443
-274
-525
-203
-446
-256
-369
1969-- Jan.
1
8
15
22
29
901
202
232
273
188
1,320
498
687
782
891
-419
-296
-455
-509
-703
-488
-365
-542
-572
-758
-473
-349
-533
-610
-779
Feb.
5
12
19
26
235
176
349
166
744
797
1,043
758
-509
-621
-694
-592
-568
-631
-721
-592
-615
-716
-726
-641
July
August
September
October
November
December
1969--January
February p
Weeklyr:
1968-- Dec.
p -
Preliminary
TABLE A-2
AGGREGATE RESERVES AND RELATED MEASURES
(In
per cent,
Retrospective Changes, Seasonally Adjusted
annual rates based on monthly averages of daily figures)
Reserve
Total
Rs e
Reserves
Ag gre
ates
Required reserves
Against
Nonborrowed
Demand
Reserves
Total
Demand
Monetary
Total Member
Bank Deposits
(credit)
/
Variab
Time
Deposits
(comm.
Rsre ReevsDeposits
- -
banks)
es
Money Supply
Private
Total
Demand
_Deposits
Annually:
1967
1968
Monthly:
1968--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969--Jan.
Feb.
+ 9.9
+ 7.2
+11.5
+ 5.2
+10.2
+ 7.1
+ 7.0
+ 6.3
+11.7
+ 8.6
(+11.5)
(+ 9.4)
+16.1
+11.3
+ 6.4
+ 6.5
+ 6.7
+ 6.2
+16.6
+12.5
+ 2.2
+16.7
+ 9.9
-12.6
+11.4
+11.4
+ 0.6
+ 6.6
+10.0
+ 4.3
(+ 6.5)
(+10.8)
(+ 4.7)
-
- 6.0
- 1.9
+15.3
+19.2
+ 0.1
-11.1
+ 1.5
+12.2
+ 0.1
+21.8
+ 3.9
+ 7.2
+ 9.7
+ 2.6
+ 3.2
+ 3.8
+14.0
+21.4
+17.3
+17.7
+14.4
+14.3
+ 6.6
+ 2.6
+ 4.6
+ 5.9
+11.7
+ 8.4
+12.8
+ 5.7
+ 6.8
+ 1.7
+ 2.5
+ 6.8
+12.6
+ 7.5
+14.9
+ 3.3
- 5.0
-
+ 4.4
+10.7
+ 7.5
+ 5.7
+10.6
+ 7.3
-10.6
+ 3.1
+ 2.5
+ 4.0
+ 0.8
-
8.8
+ 4.1
+ 4.9
+ 5.0
+23.5
-
1.6
+ 9.8
+ 5.5
+11.0
p
1/
Includes all
movements in
borrowings.
p -
Preliminary.
+ 8.2
+ 1.3
9.4
+ 2.2
+ 6.6
+14.5
+23.3
+ 1.3
+12.2
-
2.3
1.0
+12.5
-
3.0
+ 9.6
+ 7.7
+21.2
+ 4.8
+ 8.5
+ 8.2
+ 7.3
+14.0
+ 0.7
- 4.7
(-
+ 4.1
+ 6.0
+ 7.7
+ 1.7
+ 6.5
+ 9.0
+21.4
+ 8.4
+12.5
+11.1
+12.7
(+ 5.1)
(+ 9.3)
(+10.1)
(+22.1)
(+ 9.4)
(+11.8)
(+11.3)
(+11.6)
+10.8
+18.7
- 4.9
- 1.0
(- 2.0)
(+ 2.0)1
-
3.5
3.8)
-
9.5
7.3
deposits subject to reserve requirements.
Movements in this aggregate correspond closely with
Figures in parenthesis include Euro-dollar
total member bank credit.on a daily average basis.
Chart 1
MEMBER BANK RESERVES
MONTHLY AVERAGES OF DAILY FIGURES
I
I
I
I
I I I
BILLIONS OF DOLLARS, SEASONALLY
I
I
ADJUSTED
28.5
28.0
27.5
27.0
P
REQUTOTAL
26.5
RESERVES
---
26.0
25.5
25.0
NONBORROWED
RESERVES
It
24.5
REQUIRED RESERVES
1
24.0
23.5
BILLIONS OF DOLLARS, NOT SEASONALLY ADJUSTED
1.0
MEMBER BANK BORROWINGS
.5
o
.
, , ', L
I*
I
I.
I
R
#w
i
.
RESERVES
6EXCESS
,x ,s ,
y,
,
i
T
,
i
S
J
M
1967
1968
1969
i
I
Chart 2
MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES
BILLIONS OF DOLLARS
TOTAL MEMBER BANK DEPOSITS [CREDIT PROXY]
SEAS
ADJ WEEKLY
AVERAGE OF DAILY FIGURES
294
-
290
286
282
278
-
274
270
266
262
258
254
8
LIABILITIES TO OVERSEAS BRANCHES
(WEEKLY REPORTING BANKS]
NOT SEAS ADJ, WEDNESDAYS
6
27
-------------------------------------
J
S
1967
D
M
J
1968
S
D
M
1969
Chart 3
MONEY SUPPLY AND BANK DEPOSITS
SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES
IIONS OF DO
I
ARS
RILLIONS OF DOLLARS
I
I
I
190
186
182
204
178
200
174
170
188
TIME DEPOSITS ADJUSTED
(All Commercial Banks)
NEGOTIABLE
24
NOT SEAS
20
CD'S
ADJ, WEDNESDAYS
_J
S
1967
D
M
1968
1969
Chart 4
DEMAND DEPOSITS AND CURRENCY
SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES
II I I
II
I
I
I
BILLIONS OF DOLLARS
48
A
S
J
1967
D
M
J
1968
S
M
D
1969
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
float)
Year:
1967 (12/28/66
1
3 (12/27/67
-
Gold
Federal Reserve
credit (excl.
12/27/67)
12/25/68)
5/
stock
1/
Currency
outside
banks
banks
+4,718
-
+3,757
-2,067
725
-2,305
-3,221
=
Technical
factors
net 2
net
-
2/
165
+3,039
Change
=
in
total
reservesreserves
Bank use of reserves
Excess
Required
reserves
reserves
3/
+1,522
+1,508
+1,517
+1,563
+
-
5
55
51
78
86
-
129
254
Year-to-date:
12/27/67 - 2/28/68)
12/25/68 - 2/26/69)
Weekly:
1969--Jan.
-
5/
1
-
173
63
470
205
389
396
/
/
I
/
/
-
899
-1,523
-
168
211
380
,108
385
612
396
346
179
776
122
187
461
194
55
265
187
76
135
212
357
518
,164
8
69
240
632
636
218
145
35
15
70
For retrospective details,
see B-4.
For factors included, see Table B-3.
For required reserves by type of deposits, see Ta-ble B-2
See reverse side for explanation.
Includes increase in reserve requirements of $360 million effective Jan.
Jan. 18, 1968.
627
481
314
582
699
30
41
259
692
777
1
PROJECTED
1969--Mar.
+1,572
+1,417
88
354
,230
Feb.
551
85
184
47
26
173
335
183
182
153
I
70
90
25
205
110
75
415
80
90
205
110
75
p - Preliminary.
11,
1968,
and $190 million effective
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
Period
Supporting
U. S. Gov't.
demand
required
r
reserves
Supporting private deposits
Total
demand
Other than
seasonal chanes
Seasonal changes
Total
Time
Demand
Time
Demand
d eposits
seasonal changes
vear:
67
1968
(12/28/66
(12/27/67
-
12/27/67)
12/25/68)
261
558
+1,256
+2,121
+
59
-
382
6
25
+1,023
+1,647
78
86
354
545
-
-
720
384
233
114
260
39
627
314
582
259
692
200
300
207
110
247
427
14
789
149
445
332
2
514
174
114
6
25
19
13
89
21
284
55
325
182
153
184
335
258
324
73
46
440
477
111
289
289
307
96
252
19
18
13
13
128
150
228
35
+
-
+1,517
+1,563
1/
1/
Year-to-date:
(12/27/67
(12/25/68
- 2/28/68)
- 2/26/69)
Weekly:
1969--Jan.
1
Feb.
II
-____
PROJECTED
1969--Mar.
5
12
19
26
___
__
1/
___
__
__ __
-
90
205
+
110
-
__
__
_
__
__
__
55
- 10
- 180
65
__
-
49
228
-
10
I4
-
75
276
459
I
__
-
35
195
-
225
240
+
290
-
10
+
+
300
45
__
__
__
___
__
Reflects reserve requirement changes in March 1967 and January 1968.
__
-
__L
-
5
I__
P - Preliminary.
40
__
__
__
Table B-3
TECHNICAL FACTORS AFFECTING RESERVES
Retrospective and Prospective Changes
(Dollar amounts in millions, based on weekly averages of daily figures)
Technical
factors
(net)
Period
Float
Treasury
operations
Foreign
deposits
and gold
loans
ACTUAL
Year:
1967 (12/28/66
1968 (12/27/67
-
12/27/67)
12/25/68)
-
165
-
85
+3,039
+
928
+1,309
-
-
214
109
-
119
19
16
18
166
±
-
316
869
7
- 67
389
Year-to-date:
(12/27/67
(12/25/68
Weekly:
1969--Jan.
- 2/28/68)
- 2/26/69)
899
-1,523
1
211
380
346
179
776
Feb.
+
+
55
265
187
76
+
70
25
415
80
-
45
+
105
+
+
p - Preliminary.
+
144
-
398
120
123
42
78
95
+
+
+
+
+
161
41
18
204
4
I
I
PROJECTED
1969--Mar.
223
335
161
112
832
-1,104
+
160
240
80
10
35
30
175
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
Excl. float)
(Excl. float)
Period
U.S. Government securities
Total
B
Repurchase
Billss
Other
agreements
holdings
Year:
,67 (12/28/66 - 12/27/67)
1968 (12/27/67 - 12/25/68)
+4,718
+3,757
+5,009
+3,298
+4,433
+2,143
+1,153
+1.176
-
577
21
Year-to-date:
(12/27/67 - 2/28/68)
(12/25/68 - 2/26/69)
-
-
206
7
-
224
129
+
+
-
81
+
37
Weekly:
1969--Jan.
Feb.
__ __ __ __ _
_
173
63
1
8
15
22
29
230
470
205
389
396
742
344
347
480
503
+
+
576
398
-
175
480
503
5
12 p
19 p
26 o
69
240
632
636
77
146
306
292
+
69
__
_
__
__
_
__--I--
+
55
-
69
99
85
Federal
Agency
Securities
Member banks
acceptances
- 19
-
Membr
Bankers
3
-
69
52
+
57
41
166
54
172
+
85
8
146
251
308
_
__
__
_
__
__
_
__
_
i
borrowings
-
203
+
514
+
97
-
101
+
461
-
822
+
+
+
189
95
109
-
147
+
+
53
246
-
285
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
rves
reserves
Nonborrowed
Required reserves
reserves
Total
reserves
TotalDemand
Aainst private deposits
Demand
Total
1966--Jan.
Feb.
Mar.
Apr.
May
June 1/
July
Aug.
Sept.
Oct.
Nov.
Dec.
22,785
22,857
22,888
23,118
23,192
23,149
23,293
23,029
23,065
22,954
22,915
22,895
22,325
22,376
22,331
22,490
22,486
22,472
22,552
22,336
22,319
22,243
22,303
22,286
22,456
22,507
22,512
22,714
22,773
22,780
22,864
22,687
22,712
22,629
22,593
22,600
21,936
21,996
22,115
22,283
22,331
22,361
22,344
22,320
22,349
22,229
22,198
22,262
16,822
16,877
16,957
17,043
17,030
17,043
16,963
16,908
16,922
16,827
16,810
16,825
1967--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
23,217
23,471
23,869
23,910
23,952
24,105
24,342
24,627
24,786
25,121
25,275
22,770
23,107
23,668
23,775
23,874
23,982
24,279
24.586
24,721
25,020
25,142
24,848
22,875
23,134
23,383
23,529
23,531
23,660
23,960
24,234
24,476
24,810
24,947
24,914
22,298
22,559
22,785
22,779
23,071
23,387
23,578
23,776
23,850
23,995
24,122
24,157
16,774
16,959
1968--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
25,500
25,765
25,812
25,193
25,401
25,135
24,938
24,984
25,121
25,425
25,918
25,947
26,211
26,160
26,139
25,151
25,389
25,402
25,276
25,236
25,438
25,601
26,053
26,158
26,344
26,524
26,686
24,270
24,333
24,431
24,487
24,751
24,925
25,188
25,340
25,294
25,528
17,974
18,025
18,082
18,133
18,387
18,550
18,727
18,765
18,621
18,746
25,749
26,050
18,883
19,088
25,153
25,623
25,711
25,816
'5,923
26,431
26,395
26,610
26,732
26,976
17,101
17,015
17,244
17,472
17,582
17,701
17,704
17,805
17,879
17,860
1969--Jan.
27,161
19,066
25,921
26,412
26,998
19,167
25,927
27,014
27,190
26,346
Feb. p
4
.1.
-h
4
p - Preliminary.
1/ Break in series due to redefinition of time deposits effective June 9, 1966,
which reduced required reserves by $34 million.
i
Table C-2
DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS
Seasonally Adjusted
(Dollar amounts in
Period
billions, based on monthly averages of daily figures)
Total member
bank deposits
(credit 1/)
Time
deposits
Private
demand
deposits 2
U.S. Gov't.
demand
deposits
1966--July
Aug.
Sept.
Oct.
Nov.
Dec.
245.8
245.6
245.5
244.4
244.0
244.6
128.1
128.8
129.2
128.6
128.3
129.4
112.6
112.3
112.4
111.7
111.6
111.7
5.1
4.5
4.0
4.0
4.1
3.5
1967--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
247.7
251.0
254.0
255.8
257.2
259.5
262.4
266.1
268.4
270.8
272.9
273.2
131.5
133.3
135.3
137.2
138.7
140.8
142.8
144.6
146.3
147.4
148.6
149.9
111.4
112.6
113.6
113.0
114.5
116.0
116.7
117.5
117.6
118.2
118.7
118.6
4.8
5.1
5.1
5.6
4.0
2.6
2.9
4.0
4.5
5.2
5.6
4.6
1968--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
274.7
277.0
278.0
276.9
277.3
278.8
280.9
285.9
287.9
290.9
293.6
296.7
149.9
150.2
151.2
151.3
151.5
151.8
153.8
156.5
158.9
161.5
163.5
165.8
119.4
119.7
120.1
120.4
122.1
123.2
124.3
124.6
123.6
124.5
125.4
126.7
5.4
7.1
6.7
5.2
3.7
3.9
2.7
4.8
5.3
5.0
4.7
4.2
1969--Jan.
Feb. p
295.1
294.9
163.2
160.9
126.6
127.3
5.3
6.7
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/ Private demand deposits include demand deposits of individuals, partnerships 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, based on weekly averages of daily figures)
Total member
bank deposits
Week ending:
Time
deposits
(credit) /
1968-- Aug.
Private
demand
U. S. Gov't.
demand
deposits 2/
deposits
21
28
284.7
285.0
286.4
287.0
155.5
156.0
156.8
157.4
125.0
123.9
124.9
124.7
4.2
5.2
4.7
4.9
Sept.
4
11
18
25
286.7
287.0
287.8
288.8
157.9
158.3
158.9
159.4
124.7
124.1
123.5
123.4
4.1
4.6
5.4
6.0
Oct.
2
9
16
23
30
290.3
290.4
289.9
289.5
292.7
160.1
160.8
161.1
161.9
162.2
124.0
123.9
125.1
123.7
124.3
6.2
5.7
3.7
3.9
6.2
Nov.
6
13
20
27
293.9
293.6
292.9
294.1
162.6
163.0
163.6
164.7
125.5
124.2
125.9
126.1
5.8
6.3
3.4
3.4
Dec.
4
11
18
25
294.8
296.4
296.9
296.7
165.3
165.9
166.1
166.1
126.3
126.3
126.4
126.9
3.2
4.2
4.4
3.7
1969-- Jan.
1
8
15
22
29
297.4
297.2
294.9
294.4
293.8
165.5
164.4
163.9
162.8
162. 1
127.9
128.2
126.7
126.0
124.9
4.0
4.5
4.3
5.6
6.8
Feb.
5
12
19
26
294.1
295.5
295.5
294. 6
161.4
161.1
160.9
160.5
126.2
126.4
127.8
128.2
6.5
8.0
6.8
5.9
7
14
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/ 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)
Money Supply
Monthly
Currency 1/
Private
Demand
2/
Deposits L______
_______________________________Deposits
Time Deposits
Adjusted
1966--July
Aug.
Sept.
Oct.
Nov.
Dec.
169.9
170.0
170.5
170.2
170.2
170.4
37.6
37.8
37.9
38.0
38.2
38.3
132.3
132.2
132.6
132.1
132.0
132.1
155.9
156.9
157.7
157.3
156.9
158.1
1967--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
170.3
171.8
173.2
172.5
174.4
176.0
177.8
178.9
179.1
180.2
181.0
181.3
38.5
38.7
38.9
39.0
39.1
39.3
39.4
39.5
39.7
39.9
40.1
40.4
131.8
133.0
134.3
133.5
135.3
136.7
138.4
139.4
139.4
140.2
141.0
140.9
161.0
163.5
165.9
168.1
170.1
172.6
174.8
177.2
179.4
180.6
182.0
183.5
1968--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
182.3
182.7
183.4
184.3
186.1
187.4
189.4
190.3
189.5
190.2
191.9
193.1
40.6
40.7
41.1
41.4
41.6
42.0
42.2
42.6
42.7
42.8
43.2
43.4
141.7
141.9
142.2
143.0
144.5
145.4
147.2
147.6
146.7
147.4
148.7
149.6
184.1
185.2
186.7
187.1
187.6
188.2
190.4
193.8
196.6
199.5
201.9
204.3
1969--Jan.
Feb. p
193.6
194.0
43.6
43.9
150.1
150.2
202.5
200.9
I
___________I
___________I
Includes currency outside the Treasury, the Federal Reserve, and the vaults of a 11
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.
p - Preliminary.
1/
TABLE C-3a
MONEY SUPPLY AND TIME DEPOSITS AT ALL COMMERCIAL BANKS
Seasonally Adjusted
(Dollar amounts in billions, based
on weekly
Week Ending
Money Supply
averages of daily figures)
Currency 1/
Private
Demand
S__Deposits
1968--Aug.
Time Deposits
2/
adjusted
7
14
21
28
190.4
189.7
190.4
190.2
42.2
42.5
42.6
42.7
148.1
147.1
147.8
147.5
192.5
193.3
194.0
194.6
Sept.
4
11
18
25
190.3
190.2
188.7
188.5
42.7
42.6
42.7
42.6
147.5
147.5
146.0
145.9
195.2
195.8
196.6
197.2
Oct.
2
9
16
23
30.
190.0
189.9
191.0
189.4
189.9
42.7
42.9
42.8
42.8
42.9
147.3
147.0
148.1
146.5
147.0
198.1
198.7
199.1
200.0
200.4
Nov.
6
13
20
27
191.9
190.6
192.2
193.3
42.9
43.2
43.2
43.4
149.0
147.3
149.0
149.9
200.8
201.4
201.7
202.9
Dec.
4
11
18
25
192.9
193.1
192.7
192.7
43.5
43.5
43.4
43.4
149.4
149.6
149.2
149.3
203.7
204.1
204.5
204.6
1969--Jan.
1
8
15
22
29
193.7
195.4
193.8
193.6
191.6
43.4
43.5
43.5
43.6
43.5
150.3
151.9
150.2
150.0
148.1
204.1
203.3
202.8
202.1
201.5
5
12 p
19 p
26 p
192.8
193.0
195.0
195.0
43.7
43.9
44.0
43.8
149.1
149.1
151.0
151.2
201.0
201.0
201.1
200.6
Feb.
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 of Federal
Reserve Banks.
p - Preliminary.
1/
@FedFRASER