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Content last modified 6/05/2009.
CONFIDENTIAL (FR)
April 28, 1967.
MONEY MARKET AND RESERVE RELATIONSHIPS
Recent developments
During the past four weeks money market conditions have
eased further, including declines in key short-term interest rates.
Intermediate and long-term bondyields, however, have risen considerably.
The reduction in discount rates on April 7 from 4
to 4 per cent had
its most immediate impact, as expected, on Federal funds and dealer
loan rates, on CD offering rates, and on Treasury bill yields.
Since
the discount rate cut, Federal funds have averaged close to 4 per cent
and have often traded somewhat below the discount rate.
dealer loans in New York have moved down into a 4-1/8 - 4
Rates on new
per cent
range.
In the bill market, the 3-month Treasury bill has declined
about 20 basis points to around 3.75 per cent from its level just
before the discount rate was cut.
Longer-term bill rates have
registered smaller declines, and are currently 10 - 15 basis points
above the 3-month bill rate.
This follows a sustained period when
longer-term bill rates were below or about equal to the 3-month
bill rate.
The changes that have occurred within the structure of
bill rates are indicative of the shift in market attitudes away from
expectations of further rate declines toward a feeling that, with the
discount rate reduction accomplished and with business news appearing
more optimistic, rates may have eased about as much as is likely over
the near term.
FINANCIAL MARKET RELATIONSHIPS
I
Period
('1onthl
averaoes
and,
where available,
More
Free
Mlarket Indicators
Federal 3-month
BorrowFunds Treasings
teserves
ury
Rate
(In millions
Bill
of dollars)
IN PERSPECTIVE
weekly averages
of daily figures)
Rnnd VYilds
S
--
WGcn.
YedF--
Corporate MuniciU.S.
New
pal
Gov't.
Issues
(Aaa)
(Aaa) I/
(20 y-)
S'
Nonborrowed
Reserves
ii
nn
-- -
-----
rpdH-
-----Ce-tad
Bank
Bank Money
CreditSSupply
M
Proxy
nd
-Bn-
Mnneu
Time
Deposits
2/
(In billions of dollars)
(Seasonally Adjusted)
-277
-339
-352
-359
-374
-390
-425
-235
-196
638
653
722
439
740
765
766
605
529
4.64
4.83
5.13
5.18
5.45
5.30
5.46
5.75
5.39
4.61
4.63
4.50
4.78
4.95
5.36
5.33
5.31
4.96
4.65
4.69
4.73
4.84
4.95
4.94
4.83
4.88
4.76
5.03
5.16
5.35
5.48
5.64
5.82
5.70
5.71**
5.73**
3.46
3.53
3.60
3.77
3.91
3.93
3.82
3.78
3.79
+206
+ 1
+ 21
1967--Jan.
Feb.
Mar.
Apr.
- 60
+ 42
+172
+210
476
366
196
150
4.87
4.99
4.50
4.03
4.72
4.56
4.26
3.83
4.51
4.61
4.56
4.64
5.43**
5.18**
5.31**
5.43**
3.50c
3.38c
3,48
3.50
+492
+359
+537
+154
1967--Apr.
+269
+108
+292
+169
180
145
178
98
4.58
3.90
3.90
4.00
3.86
3.87
4.56
4.55
4.00
3.74
5.27**
5.55
5.50**
5.38**
3.48
3.46
3.50
3.55
-
16*
+135*
-302
+
5
-134
+108
Averages
+ 1.6
- 35
+ 21
+3.1
+1.0
+0.9*
+2.1*
-0.7
-0.1
-0.7
-1.1
+0.9
+
+
0.9
0.9
0.4
1.1
1.9
1.6
1.5*
1.9*
1.4
0.4
0.3
0.1
1.2
+331
+272
+447
+ 79
+3.3
+3.1
+3.2
+2.9
+
+
-
0.7
0.8
2.4
0.7
2.4
2.6
2.1
2.0
-0.2
+1.0
+0.2
+0.8
- 0.2
- 0.6
- 1.3
- 0.3
+256
+ 6
+
3*
+224*
-400
+129
-195
- 0.7
+ 0.9
- 1.5
0.5
0.5
0.5
0.2
Annual rates of increase 3/
Year 1966
First Half 1966
Second Half 196(
-283
-228
-338
672
581
763
5.06
4.69
5.39
4.85
4.59
5.12
4.77
4.67
4.87
5.41**
5.12
5.74**
3.67
3.51
3.83
Recent Variatio s
in growth
July 6-Aug. 10
Aug. 10-Nov. 16
Nov. 16-Apr. 26
-345
-320
+ 18
738
638
354
5.32
5.46
4.85
4.81
5.27
4.55
4.85
4.91
4.64
5.55
5.78**
5.38**
3.80
3.87
3.53
1/
2/
Rpprpq
(I ofdnlr5
mi llon
1966--Apr.
May
June
July
Aug.
Sept
Oct.
Nov.
Dec.
4.63
4.72
-f
o-
Total
Reserves
+ 0.8*
+ 3.0*
- 1.5*
+ 1.2*
+ 4.6*
- 2.2*
+ 3.7*
+ 7.1*
+ 0.3*
+ 1.9
+ 4.7
- 0.9
+ 8.4*
+10.3*
+ 6.1*
- 4.2
- 2.7
-12.9
-13.4
+ 0.4
+ 2.9
+12.7
+ 1.4
+15.4
Issues carry a 5-year call protection; ** includes issues carrying 5-year and 10-year call protection.
Time deposits adjusted at all commercial banks.
Base is average for month preceding specified period or in case of weekly periods, the first week shown.
3/
* - Changes have been adjusted for redefinition of time deposits effective June 9, 1966.
p - Preliminary.
c - correction.
April 28, 1967.
CONFIDENTIAL (FR)
-2-
April 28, 1967.
Such a shift in market attitudes, in conjunction with the
continued large corporate calendar and the sizable U.S. Government
financing program, has had a pronounced influence on long-term markets.
Yields on new high grade corporate bonds and long-term U.S. Government
securities have risen 15 - 25 basis points since the discount rate was
cut.
Yields on State and local government issues have also risen, and
dealer inventories of such securities have increased.
Banks have reduced rates on large denomination CD's in
line with reductions in other short-term rates, and outstanding CD's
have declined by almost $600 million over the tax period (measured
by the three weeks ending April 19).
This decline is more than we
had expected; it apparently reflects a deliberate policy of banks
in light of continued rapid increases in other time and savings
deposits, the ready availability of Federal funds at reduced rates,
and the prospect of reduced loan demand following the mid-April tax
borrowing.
On average in April, total time and savings deposits rose
at a 14.5 per cent annual rate accounting for the bulk of the 13.5
per cent rise in the bank credit proxy.
(The rise would be about 1
percentage points less after including a decline on average in Eurodollar borrowings.)
Bank credit expansion moderated in the course of April.
From the week ending March 29 to the week ending April 26, the proxy
rose at a 9.5 per cent annual rate; bank credit outstanding is projected
to decline in the current statement week ending May 3 as U.S. Government
deposits begin to decline sharply.
CONFIDENTIAL (FR)
-3-
April 28, 1967.
U.S. Government deposits rose in April about in line with
earlier expectations and contributed to a 6 per cent annual rate of
decline in private demand deposits on average (and a 5 per cent rate
of decline in the money supply).
The decline in such private deposits
was slightly greater than projected, as loan demands around the tax
period were relatively moderate despite the large accelerated tax
payments.
In general, money markets and banks accommodated tax
period churning with relative ease.
This may have reflected not
only the availability and lower cost of reserves to banks but also
probably the partial use of capital market proceeds to finance tax
payments.
Nonborrowed reserves on average in April increased at a
7.5 per cent annual rate, sharply down from the previous month.
There
was a decline in bank excess reserves, as the effects of the March
reserve requirement reductions apparently worked themselves through.
Member bank borrowings also declined in April, and the increase in
total reserves was even less than for nonborrowed on average during
the month.
During the past four weeks, free reserves averaged $210
million and borrowings averaged $150 million.
During the previous
four weeks, free reserves had averaged $218 million and borrowings
$203 million.
CONFIDENTIAL (FR)
-4-
April 28, 1967.
Prospective developments
Maintenance of prevailing money market conditions over the
next three weeks would involve a Federal funds rate averaging 4 per
cent or a shade below and a 3-month bill rate fluctuating generally
in a 3.65 - 3.85 per cent range.
Member bank borrowings are likely
to be in the $100 - $200 million area.
Free reserves could vary
more widely, perhaps in a $150 to $300 million range, depending in
part on bank reserve management policies, on dealer financing needs
and reinvestment flows associated with the Treasury refunding, and the
need to maintain an "even keel" monetary posture.
Books will be open for the current Treasury refunding and
pre-refunding operation
date on May 15.
from May 1 through May 3, with settlement
The issues were attractively priced but, as of this
writing, their ultimate market reception is uncertain.
The yield outlook is even more uncertain in other capital
markets.
Some observers are beginning to conclude that the recent
rise in long-term rates has been overdone, and that a minor bond
market rally is a possibility.
But others point to the continuing
large supply of corporate, municipal, and Federal agency issues in
the market or in prospect and to expected large Treasury financing
in the second half and see the odds favoring some further yield rise.
On balance, it would seem that maintenance of prevailing money market
conditions could permit--but not ensure--a rally in the bond market.
Such a development would be less likely if the financing calendar were
CONFIDENTIAL (FR)
April 28, 1967.
to expand further, or if money market conditions were permitted to
drift toward the tight end of the ranges specified above.
With an even keel maintained
in the money market, growth
in nonborrowed reserves is likely to slow further in May on average.
Expansion in bank credit, as measured on a daily-average basis by
the proxy, may slow to an annual rate in the 1 - 4 per
cent range.
With the March-April tax period passed, net business
loan demands in May are expected to be quite moderate.
Projected
needs for inventory financing are small and--given the continuing
large corporate calendar and the sharp recent uptrend in use of the
commercial paper market--bank loan repayment may rise.
Needs of
Government security dealers for bank financing will largely depend
on general interest in the refunding.
If bank credit expansion in
May is in the range projected, the annual rate of increase in the
proxy over the 6 month December-May period would be around 11 per
cent (and 2 percentage points less after including the decline in
Euro-dollar borrowings).
The May projections allow for a sharp reversal of the April
rise in U.S. Government deposits, only partially offset by a rise
in private demand deposits.
The money supply is currently projected
to rise in May on average at an annual rate of 8 - 10 per cent, bringing
the annual rate of growth over the December-May period to around 5
per cent.
CONFIDENTIAL(FR)
-6-
April 28, 1967.
Time deposits are expected to show a somewhat slower growth
rate in May, perhaps in a 10 - 13 per cent range, if commercial banks
continue to exhibit only mild interest in increasing the volume of
outstanding CD's.
However, it is possible that attractive yields
emerging in securities markets and additional indications of strong
economic expansion may encourage some banks to seek additional
investible funds.
The rate of growth in other time and savings
deposits may moderate, especially if consumer spending continues to
pick up.
Table A-1
MARGINAL RESERVE MEASURES
(Dollar amounts in millions, based on period averages of daily figures)
Excess
reserves
Period
As
Member banks
borrowins
revised
Free
to
I
reserves
I|--
date
As
expected
at
conclusion
of each
week's
open
market
opeations
I-
Monthly (reserves
weeks ending in):
1966--April
May
June
July
August
September
October
November
December
361
315
370
380
366
375
341
370
333
638
653
722
739
740
765
766
605
529
-277
-339
-352
-359
-374
-390
-425
-235
-196
1967--January
February
March p
April p
417
476
366
196
150
+ 42
+172
+210
408
368
360
As first
published
each week
_________________
4
- 59
Weekly:
1967--Jan.
Feb.
Mar.
Apr.
-188
-170
+ 43
+ 67
-175
+ 61
- 90
- 22
-
39
47
- 53
- 62
+164
+154*
- 64
- 38
-
45
- 50
- 91
583
176
353
456
477
- 7
+101
+ 2
+117
1
8
15
22
29
159
359
372
566
385
167
202
173
302
135
- 8
+157
+199
+264
+250
+165
+204
+277
+235
+216
+217
+290
+253
5
12
19
26
449
253
470
267
180
145
178
98
+269
+108
+292
+169
+339
+154
+312
+169
+300
+184
+305
+171
4
11
18
25
395
628
127
516
565
585
217
1
8
15
22
340
289
418
p - Preliminary
538
+106
+
4
-
17
* - Reflects end of week statistical adjustments increasing
F.R. float due to snow storms in the midwest.
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
Reserves
Ag gregates
Required reserves
Nb
d
Against
Total
Demand
Reserves
Deposits
I
Moneta
T
l M
Total Member
B
epit
edit)
rv Variables
Time
Money Supply
Deposits
Private
(comm.
Total
Demand
banks)
__Deposits
/
Annually:
1965
1966
+ 5.3
+ 1.2
+ 4.3
+ 0.8
+ 5.3
+ 1.5
+ 2.3
- 0.2
+ 9.1
+ 3.7
+16.0
+ 8.4
+ 4.7
+ 1.9
+ 4.4
+ 0.9
Monthly:
1966--January
February
March
April
May
June 2/
July 2/
+ 6.7
+ 4.0
+ 2.9
+13.2
+ 0.3
+ 0.2
+11.4
+ 9.5
+ 3.1
- 4.6
+10.9
+ 0.1
- 0.8
+ 7.1
+ 6.9
+ 2.9
+ 2.7
+11.9
+ 2.1
+ 1.6
+ 8.4
+11.3
+ 3.8
+ 4.0
+11.7
- 4.8
+ 1.3
+ 2.9
+ 8.1
+ 3.5
+ 5.5
+15.5
+ 4.9
+ 4.4
+10.3
+ 7.4
+ 5.7
+ 8.1
+15.3
+12.7
+11.8
+14.8
+ 5.7
+ 1.4
+ 7.8
+11.3
- 4.9
+ 6.3
-10.5
+ 4.6
-+ 8.2
+12.7
- 7.2
+ 7.2
-16.2
August 2/
September 2/
October 2/
November 2/
-20.2
+ 6.6
-10.0
- 1.8
-15.8
- 0.3
- 7.1
+ 5.7
-14.8
- 0.2
- 1.1
- 7.6
-16.9
- 3.2
- 2.0
- 8.2
- 3.4
- 0.5
- 2.9
- 5.4
+10.7
+ 3.0
- 2.3
+ 0.8
-+ 6.4
- 6.3
- 2.8
+
-
December 2/
+ 1.1
+ 1.1
+ 4.9
- 1.6
+ 3.9
+ 9.1
+ 7.8
+ 8.2
1967--January 2/
February 2/
March 2/ p
April 2/ p
+17.1
+13.8
+22.5
+ 3.9
+26.0
+18.6
+27.4
+ 7.7
+13.5
+14.3
+15.2
+ 9.0
+12.7
+ 8.5
+16.9
+10.2
+16.1
+15.0
+15.3
+13.7
+18.1
+19.3
+15.3
+14.4
- 4.9
+ 5.7
+16.9
- 4.9
- 9.1
+ 5.5
+20.0
- 6.3
.1/
J
Includes
T
ai
ueposits
.
subject to reserve requirements.
movements in total member bank credit.
.
.
movements in
1
0.9
7.3
8.1
4.6
1
nlis aggregate correspona 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
23.5
23.0
22.5
22.0
21.5
21.0
BILLIONS OF DOLLARS
MEMBER
BANK
BORROWINGS
I EXCESS
I I
IRESERVES
f
*a
S
1965
1966
1967
Chart 2
MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES
BILLIONS OF DOLLARS
260
TOTAL MEMBER BANK DEPOSITS (CREDIT PROXY)
SEAS
ADJ, WEEKLY AVERAGE OF DAILY FIGURES
256
252
248
244
240
236
6
LIABILITIES TO OVERSEAS BRANCHES
(WEEKLY REPORTING BANKS]
NOT SEAS ADJ,
WEDNESDAYS
2
0
I
1966
I
I
I
I
I
1967
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
(All
160
DEPOSITS
ADJUSTED
Commercial
Banks)-
155
150
145
140
135
130
125
NEGOTIABLE
CD'S
(Unadiusted)
20
20
15
I
S
1965
D
I
M
I
I
J
1966
I
S
D
10
I
M
J
1967
*CHANGE
IN SERIES
Chart 4
DEMAND
DEPOSITS AND CURRENCY
SEASONALLY ADJUSTED WEEKLY
AVERAGES OF DAILY FIGURES
BILLIONS OF DOLLARS
45
MONEY SUPPLY COMPONENTS:
40
OUTSIDE
CURRENCY
BANKS
35
30
140
DEMAND
DEPOSITS
135
130
125
120
15
U.S. GOVT. DEMAND DEPOSITS
Banks)
(Member
10
0
156
S
S -----
1965
D
D
M
M
J
S
D
M
M
1966---------------------------------
1966
1967
J
J
Table B-l
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
stock
Change
in
total
Technical
factors
net 2/
banks
= Bank use of reserves
Required
Excess
reserves
reserves
3/
reserves
ACTUAL
Year
1965 (12/30/64
- 12/29/65)
+4,035
-1,602
-2,143
+
798
+1,089
+1,188
-
99
+3,149
-
627
-2,243
+
805
+1,085
+1,111
-
26
+
288
690
-
154
51
+
695
+1,010
719
-2,408
-
465
759
-
384
589
-
81
170
5 p
12 p
+
-
402
22
-
87
351
+
255
155
+
-
62
218
-
2
22
+ 64
- 196
19 p
26 p
+
67
156
+
-
188
267
+
-
281
592
+
-
399
166
+
+
182
37
+ 217
- 203
1966 (12/29/65 -
12/28/66)
Year-to-date:
(12/29/65 - 4/27/66)
(12/28/66 - 4/26/67)
Weekly:
1967--Apr.
PROJECTED
May
June
---
+
-
1
1
-
3
+
150
--
-
45
-
110
-
5
-
5
10
17
24
31
+
+
455
390
5
220
-----
+
+
+
565
175
60
5
+
+
-
135
125
160
350
+
-
25
90
105
125
+
-
25
90
105
125
7
14
21
28
+
-
520
105
330
-----
+
+
500
15
80
210
+
+
+
-
50
125
575
240
+
+
+
-
70
5
325
30
+
+
+
-
70
5
325
30
--
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.
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
required
reserves
reses
Supporting
U. S. Gov't.
dmd
demand
private deposits
_Supporting
Seasonal changes
Total
Total
deposits
Demand
Time
Other than
seasonal chan
seasonal changes
Demand
Time
ACTUAL
Year:
1965 (12/30164 - 12/29/65)
1966 (12/29/65 - 12/28/66)
+1,188
+1,111
- 89
- 87
+1,277
+1,194
+115
- 14
-
4
4
+499
- 5
+ 677
+1,221 1/
Year-to-date:
(12/29/65 - 4/27/66)
(12/28/66 - 4/26/67)
-
382
589
-400
+100
+
-
18
689
-478
-423
+ 91
+ 95
+263
+ 61
+
-
+
+
2
22
182
37
-269
-125
- 31
+323
+
+
+
-
267
103
213
286
+164
+217
+345
-149
+ 4
- 8
- 14
- 5
+ 84
-137
-137
-139
+
+
+
+
15
31
19
7
3
10
17
24
31
+
-
5
25
90
105
125
+ 55
+255
- 35
- 20
-165
+
60
230
55
85
40
-195
-275
-180
-270
- 20
---
+120
+ 30
+105
+165
+ 45
+
+
+
+
+
15
15
15
15
15
7
14
21
28
+
+
+
-
70
5
325
30
-185
-165
- 80
+395
+
+
+
-
255
170
405
425
+245
+205
+280
-460
-- 45
+120
+ 20
+
+
+
+
10
10
10
10
Weekly:
1967--Apr.
5
12
19
26
p
p
p
p
142
422
PROJECTED
1967--May
June
1/ Reflects reserve requirements changes
p - Preliminary.
in July and September 1966.
+
+
5
5
----
+
5
5
Table B-3
TECHNICAL FACTORS AFFECTING RESERVES
(Dollar amounts
Retrospective and Prospective Changes
in millions, based on weekly averages of daily figures)
Technical
factors
fat
(net)
I
Treasury
operations
Foreign
deposits
and gold
loat
r:
1965 (12/30/64 - 12/29/65)
1966 (12/29/65 - 12/28/66)
798
805
+294
+673
- 719
-2,408
+285
-670
-
171
+
64
-
725
+ 77
- 30
+598
+ 98
+ 4
+ 49
-283
-503
Year-to-date:
(12/29/65 - 4/27/66)
(12/28/66 - 4/26/67)
Weekly:
1967--Apr.
5
12
19
26
255
155
281
592
-1,284
+ 1
+ 48
-191
-290
216
102
328
298
- 57
+ 3
+128
9
- 95
+185
20
50
200
90
350
+
5
-
75
PROJECTED
1967--May
June
7
14
21
50
60
500
-250
+ 65
+ 75
Table B-4
SOURCE OF FEDERAL RESERVE CREDIT
Retrospective Changes
(Dollar amounts in millions of dollars, based on weekly averages of daily figures)
'I
Period
(Rxcl
lear:
1966 (12/30/64 - 12/29/65)
1966 (12/29/65 - 12/28/66)
Apr.
flonat)
._---f
nrprnment
"~"-~'-
Total
holdings
Bills
7
PuntritiPa
~--~
---- I
Federal
Agency
Securities
Repurchase
aereements
Other
h
Bankers'
acceptances
Member banks
borrowings
Scr
+4,035
+3,149
+3,916
+3,069
+3,145
+2,158
+916
+474
+437
+ 26
+ 77
+ 52
+ 42
+ 2
288
690
- 406
+1,218
341
+1,618
+156
+217
-221
-617
-
+ 22
- 55
+ 96
-450
1
8
15
22
29
449
391
92
284
190
+
+
+
-
142
368
164
1584*
53
98
313
177
250
100
5
12
19
26
402
22
67
156
+
+
+
343
11
79
211
209
14
48
210
Year-to-date:
(12/29/56 - 4/27/66)
(12/28/66 - 4/26/67)
Weekly:
1967--Mar.
T1 S
Total Federal
Reserve credit
-145
+ 21
+ 29
+ 51
+ 21
+ 95
4.
23
-240
+ 34
+100
- 28
-204
-310
+ 35
+113
- 70
-127
+ 1
+ 45
- 29
+129
-157
- 35
+ 33
- 80
--
* - Includes effect of change in special certificates of +$64 million of the week of March 15, 1967 and -$64 million
of the week of March 22, 1967.
Chart Reference Table C-1
TOTAL, NONBORROWED AMD REQUIRED RESERVES
(Dollar amounts in millions,
Period
1965--January
February
March
April
May
June
July
August
September
October
Total
reserves
reserves
Seasonally Adjusted
based on monthly averages of daily figures
Nonborrowed
reserves
reserves
21,960
22,157
22,279
22,449
22,436
22,612
22,682
22,689
22,667
22,737
21,625
21,771
21,814
21,953
21,994
22,082
22,158
22,186
22,114
22,248
November
22,748
December
23,010
1966--January
February
March
April
May
June 1/
July 1/
August 1/
September 1/
October 1/
November 1/
December 1/
1967--January 1/
February 1/
March 1/ p
April 1/ p
I/
Total
Total
)
Required reserves
reserves
Reauired
Against private depo
Total
Demal
21,563
21,713
21,868
22,036
22,109
22,243
22,332
22,299
22,259
22,439
20,702
20,765
20,881
20,985
20,962
21,138
21,247
21,331
21,553
21,720
15,730
15,717
15,789
15,831
15,750
15,877
15,912
15,916
16,071
16,151
22,341
22,402
21,803
16,168
22,523
22,657
21,970
16,285
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
15,534
16,626
16,472
16,428
16,497
16,352
16,321
16,411
23,614
23,886
24,333
24,412
23,187
23,546
24,083
24,237
23,248
23,526
23,824
24,002
22,525
22,725
23,066
23,058
16,317
16,413
16,679
16,584
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)
Monthly
Total member
bank deposits
(credit) 1/
Time
deposits
Private
demand
U.S. Gov't.
demand
deposits 2/
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
132.4
134.6
136.2
138.0
111.4
112.1
113.9
113.2
4.8
4.9
4.8
6.4
1/
2/
3/
3/
3/
3/ p
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.
Private demand deposits include demand deposits of individuals, partnerships and corporations and net interbank balances.
Deposits have been adjusted for redefinition of time deposits effective
June 9, 1966.
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)
Week ending:
Total member
bank deposits
(creditI1/2/
Time
deposits
2/
Private
demand
deposits
3/
U. S. Govt.
demand
deposits
1966--Nov.
2
9
16
23
30
246.1
245.8
244.5
243.0
243.2
129.5
129.3
129.3
129.3
129.2
111.2
111.1
111.2
111.5
111.3
5.4
5.3
4.0
2.2
2.7
Dec.
7
14
21
28
244.5
244.5
245.5
245.7
129.5
129.8
130.2
131.0
111.9
111.2
113.1
111.5
3.2
3.5
2.2
3.2
1967--Jan.
4
11
18
25
247.3
247.7
247.8
249.2
131.4
131.7
132.1
132.9
112.6
111.6
111.4
110.5
3.3
4.4
4.3
5.8
Feb.
1
8
15
22
250.3
251.4
251.4
251.6
133.7
134.0
134.5
134.9
111.1
111.7
111.5
113.0
5.5
5.7
5.5
3.8
Mar.
1
8
15
22
29
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
257.4
257.6
258.4
137.1
137.7
138.1
138.2
114.7
113.9
112.9
112.0
4.6
5.9
6.5
8.2
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.
/ Private demand deposits include demand deposits on individuals, partnerships and corporations and net interbank balances.
3/ Private demand deposits include demand deposits on individuals, partnerships and corporations and net interbank balances.
TABLE C-3
Seasonally adjusted
(Dollar amounts in billions, based
on monthly averages of daily figures)
Money Supply
Monthly
____
~~____~____
Currency
____~__~_
1/
Private
Demand
oits
Deposits
2/
/
Time Deposits
Adjusted
Aus
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 !/
August 3/
September 3,
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
131.4
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
167.8
158.2
157.9
158.0
159.2
1967--January !/
February 3/
March 3/ p
April 2/ p
169.6
170.4
172.8
172.1
38.5
38.7
39.0
38.9
131.1
131.7
133.9
133.2
161.7
164.3
166.4
168.4
1/
2/
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 at
Federal Reserve Banks.
3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966.
p - Preliminary.
TABLE C-3a
MONEY SUPPLY AND TIME DEPOSITS AT ALL COMMERCIAL BANKS
Seasonally Adjusted
(Dollar amounts in billions, based
on weekly
averages of daily figures)
Private
Week Ending
Money Supply
Currency 1/
Demand
Time Deposits
adjusted 3/
157.8
157.9
158.0
158.0
157.9
1966--Nov.
2
9
16
23
30
168.9
168.8
169.0
169.3
169.3
37.8
38.0
38.1
38.0
38.1
Deposits 2/
131.1
130.9
130.9
131.3
131.2
Dec.
7
14
21
28
169.7
169.1
171.9
170.3
38.1
38.2
38.2
38.4
131.7
130.9
133.7
131.9
158.2
158.6
159.2
160.0
1967--Jan.
4
11
18
25
170.8
170.2
170.3
168.9
38.4
38.6
38.5
38.4
132.4
131.6
131.8
130.5
160.5
160.9
161.3
162.2
Feb.
1
8
15
22
168.7
169.6
169.9
171.8
38.5
38.7
38.8
38.8
130.2
130.9
131.1
133.1
163.1
163.5
164.2
164.8
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
5
12
19
26
173.4
172.8
171.5
171.2
38.9
39.0
39.1
39.0
134.5
133.7
132.4
132.2
167.6
168.1
168.6
168.8
Apr.
1/
2/
3/
165.5
166.3
166.7
167.1
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