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CONFIDENTIAL (FR) October 28, 1966 MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments Money market conditions have eased somewhat in recent weeks, and aggregate bank reserves, bank credit, and the money supply have shown considerably less strength than earlier anticipated; in fact, all these variables have declined on average in October. The outflow of time deposits at banks is not very different from anticipations with time and savings deposits at all commercial banks declining at about a 2.5 per cent annual rate in October. This reflects a net run- off in CD's estimated at between $1.2 to $1.5 billion of the $5.2 billion of CD's maturing during the month. Total member bank deposits (the bank credit proxy) declined at an annual rate of almost 3 per cent on average in October; this represented a substantial shortfall from earlier projections, with 1/ the shortfall reflecting weaker than expected private demand deposits. The weakness in bank credit is also attested to by very preliminary estimates for the change in total commercial bank credit on a lastWednesday-of-the-month basis. This series shows only a very minor $200 million rise (an annual rate of not quite 1 per cent) for October. 1/ During October, domestic banks made somewhat less use of funds obtained through their foreign branches than in recent months. Allowance for such funds would make the October decline in the bank credit proxy 2.2 per cent. CONFIDENTIAL (FR) FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, where available, weekly averages of daily figures) Money Market Indicators Bond Yields Flow of Reserves, Bank Credit and Money Free Borrow- Federal 3-month Corporate Munici- NonTotal Bank posits3/ Credit Mey Reborrowed pal New U.S. Funds Treasings Reserves ProxyDeposits Reserves serves (Aaa) Issues Gov't. ury Rate (In millions Period of dollars) Bill (20 yr) (Aaa)1/ (In millions (In 2/ blions of dollars) 1965--Oct. Nov. Dec. -132 - 77 - 22 490 418 452 4.05 4.09 4.28 4.02 4.08 4.37 4.32 4.40 4.50 4.69 4.72 4.85 3.31 3.34 3.J9 +134 + 93 +182 + 70 + 11 +262 + 2.3 + 1.1 + 1.8 + 1.1 + 0.4 + 1.6 + 2.1 + 1.8 + 1.4 1966--Jan. Feb. Mar. Apr. May June July - 51 -117 -210 -277 -339 -352 -361 431 474 545 638 653 722 739 4.32 4.58 4.64 4.64 4.83 5.13 5.18 4.58 4.65 4.58 4.61 4.63 4.50 4.78 4.52 4.71 4.72 4.65 4.69 4.73 4.84 4.81 4.96 5.09 5.03 5.16 5.35 5.48 3.40 3.48 3.55 3.46 3.53 3.60 3.77 +173 + 58 - 88 +206 + 1 - 16* +130* +129 + 78 + 57 +256 + 6 + 3* +219* + + + + + + + 1.6 0.7 1.1 3.1 1.0 0.9* 2.1* + + + + + - + + + + + + + -383 -390 -416 740 765 766 5.45 5.30 5.41 4.95 5.36 5.35 4.95 4.94 4.85 5.64 5.82 5.71 3.91 3.93 3.83 -298 --104 -396 +124 -118 - 0.7 -0.6 -+ 0.9 - 0.7 + 1.4 + 0.4 - 0.3 Aug. Sept. p Oct. p Sept. - 0.8 0.2 0.9 1.6 0.7 0.9 1.5 0.9 0.7 1.0 1.9 1.6 1.5* 1.9* 7 -412 749 5.91 5.12 4.96 5.91 3.99 + 0.2 + 0.5 + 0.1 14 21 28 -384 -179 -583 888 771 650 5.68 5.20 4.40 5.31 5.49 5.47 4.92 4.99 4.94 -5.69 5.80 3.85 3.89 3.88 - 0.5 0.8 -- - 0.4 + 1.6 - 1.7 - 0.1 + 0.2 5 p 12 p -493 -494 828 928 5.90 5.44' 5.35 5.39 4.89 4.89 --- 3.86 3.86 + 0.5 - 1.1 + 0.7 - 0.7 - 0.1 - 0.3 19 p 26 p -311 -366 790 518 5.50 4.95 5.42 5.25 4.86 4.76 5.82# 5.60 3.83 3.75 - 0.8 + 2.1 - 0.4 - 0.2 + 0.1 - 0.2 Year 1965 First half 1966 - 90 -228 467 576 4.05 4.69 3.95 4.59 4.27 4.67 Averages 4.69 5.12 3.16 3.51 Recent variations in growth May 11-July 6 July 6-Aug. 10 Aug. 10-Oct. 26 -365 -410 -395 719 738 751 5.05 5.32 5.37 4.56 4.81 5.26 4.72 4.85 4.93 Oct. 1/ 2/ 3/ 4/ * p - 5.32 5.55 5.80 3.61 3.80 3.90 + 4.3 + 3.0 Annual rates of increase 4/ + 5.3 + 9.1 + 4.7 +16,0 + 4.6 + 7.1* + 4.7 +10.3* + 6.3* - 3.1 + 2.9 + 2.3 -13.4 + 2.0 +12.8* +12.7 + 0.6 From January 1966 to date, issues carry a 5-year call protection; # one issue included carries a 7-1/2 year call protection. Reserve series revised to reflect reserve requirements effective in mid-September. Time deposits adjusted at all commercial banks. Base is average for month preceding specified period or in the case of weekly periods, the first week shown. Changes have been adjusted for redefinition of time deposits effective June 9, 1966. October 28, 1966. Preliminary. - 2 - CONFIDENTIAL (FR) October 28, 1966 Business loan growth in October, when there was again a sizable speed-up in certain corporate tax payments, was somewhat larger than in September, but less than the very high rate of expansion of the first eight months of the year. With the present degree of monetary restraint and with CD run-offs sizable, banks had to liquidate a substantial amount of U.S. Government securities, especially in the first half of October. Despite bank sales and the Treasury's October 11 auction of tax bills, bill rates remained within a relatively narrow range of fluctuation during the first half of October, when the 3-month bill averaged 5.40 per cent; bill rates subsequently declined, with the 3-month bill currently quoted around 5.25 per cent. While the decline in bill rates was partly the result of dis- intermediation (with reinvestment of funds from CD run-offs converging on the short-term bill market), it also appears to have reflected the development of less intense credit demands in the economy--inasmuch as the decline in bill rates was also accompanied by some declines in other short-term rates, a reduction in money supply, and a further decline in long-term rates. Over the four months since midyear, the money supply and total reserves have declined at annual rates of more than 2 per cent and nonborrowed reserves at about 3.5 per cent. During the first half of this year by contrast all these variables increased at annual rates of between 3 and 5 per cent. CONFIDENTIAL (FR) COF DENTIAL (FR) - 3 - October 28, 1966 With aggregate monetary variables showing less strength than expected in recent weeks, open market operations did not attempt to offset fully the comparative ease that was developing in money market conditions. Net borrowed reserves during the past two statement weeks averaged $338 million, with member bank borrowings averaging $654 million; in the previous two statement weeks these indicators had averaged $494 million and $878 million respectively. The volume of Federal funds trading picked up slightly during the past two statement weeks, while the average rate at which trading took place declined to around 5½ per cent. Dealer loan rates in New York eased back a little, although by relatively less than did such rates outside New York. Prospective developments Assuming that money market rates and net borrowed reserves remain within the range of fluctuation of the past four weeks, staff projections suggest a further decline in total member bank deposits (the bank credit proxy) on average in November. The decline is likely to be in the order of a 2 per cent annual rate. With the deposit mix continuing to shift in favor of demand deposits, required reserves are projected to decline by only about 1 per cent. These projections assume some additional Treasury cash financing toward the end of the month, and a business loan expansion somewhat less than in October -mainly because corporate payments of withheld taxes were shifted forward to October from November. CONFIDENTIAL (FR) CONFIDENTIA - 4 - (FR) October 28, 1966 The reduction in total member bank deposits assumes a CD runoff during November of about $ past two months. billion, less than half the pace of the The recent decline in short-term bill rates (with the one-month bill currently quoted at around 4.50 per cent on the offered side) has led to some reported sales of short bills and reinvestment of the proceeds in short CD's. Total time and savings deposits for all member banks may still decline slightly on average in the month of November, but such deposits at all commercial banks are likely to rise slightly because of continued deposit gains by nonmember banks. Money supply and private demand deposits are expected to rise at roughly a 2-3 per cent annual rate on average from October to November. Because private demand deposits fell steadily on a weekly basis after the first week in October, a resumed rise in November would start from a As a result, the increase projected in such deposits from low point. the last week of October to the last week in November is more rapid than the average rise for the month--partly influenced by the expected declines in the Treasury cash balance during most of the month ahead. The Government security market in November will be importantly influenced by the market's accommodation of the Treasury's November refunding. The initial reaction to the Treasury's offering--a 15-month, 5-5/8 per cent note and a 5-year, 5-3/8 per cent note--was highly favorable, and prices were marked up especially in the intermediateand long-term area. In the capital markets as a whole, the current CONFIDENTIAL (FR) CONFIDENTIAL (FR) - 5 - October 28, 1966 moderation in the corporate and municipal calendars is contributing to a firm atmosphere, which is likely to persist unless a sizable build-up in the calendar is induced. Short-term markets are moving into the season when upward yield pressures generally intensify, and bill rates are likely to be influenced by a Treasury cash financing in the bill area that may be announced later in November. It appears likely that the 3-month bill rate will rise as November progresses, while generally remaining within a 5.20-5.50 per cent range. The propensity of investors to arbitrage between short bills and CD's would also tend to maintain a floor under bill rates. The Federal funds rate may also come under upward seasonal pressure in the weeks ahead and edge up from the recent average of 5-1/4 per cent. Given the demand assumptions underlying the above projections, a movement toward a consistently shallower net borrowed reserve figure than obtained during the past four weeks--say, in the order of $200 million--to encourage aggregate reserve and bank credit expansion would likely be accompanied by lower bill rates (with the 3-month bill possibly in a 4.90-5.30 per cent range) and increased market expectations for declining longer term rates. Chart la MEMBER BANK RESERVES SEASONALLY ADJUSTED MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 23.5 23.0 S---'% 22.5 l w - AGAINST TOTAL PRIVATE DEPOSITS SREQUIRED 22.0 21.5 21.0 20.5 20.0 17.0 16.5 REQUIRED AGAINST PRIVATE DEMAND DEPOSITS 16.0 15.5 M J 1965 S D M J 1966 S D Chart lb MEMBER BANK RESERVES MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS, SEASONALLY ADJUSTED 23.5 -REQUIRED RESERVES 23.0 NET BORROWED 22.5 RESERVES 000 RESERVES -NONBORROWED 22.0 21.5 21.0 20.5 BILLIONS OF DOLLARS 1.0 MEMBER 0 I I iI I I I I BANK BORROWINGS EXCESS I I I I I RESERVES I I I J 1965 1966 I I Chart 2 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS BILLIONS OF DOLLARS TOTAL MEMBER BANK (Credit Proxy) DEPOSITS _. . 245 . 240 235 230 MONEY SUPPLY 170 225 165 220 160 155 TIME DEPOSITS (All ADJUSTED Commercial Banks) 150 145 140 135 NEGOTIABLE 130 CD'S 20 - (Unadjusted) - 15 I M J 1965 S D M r J 10 I, S D 1966 *CHANGE IN SERIES Chart 3 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 45 40 35 30 140 135 130 125 120 -4 15 U.S. GOVT. DEMAND (Member DEPOSITS Banks) 10 rr~, 5 0 d cI su- - - 11111111 I Ii J 1965 1966 Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) _ __ _ Excess reserves Period As _ Member banks borrowings r evised I to Free ll reserves V- date As expected at conclusion of each week's open market opeations -4 Monthly (reserves weeks ending in): As first published each week 1965--September October November December 413 358 341 430 552 490 418 452 -139 -132 1966--January February March April May June July August September October p Weekly: 1966--June 1 8 15 22 29 380 357 335 361 315 370 380 366 375 350 431 474 545 638 653 722 739 740 765 766 - 51 436 207 465 282 459 812 547 788 691 771 -376 -340 -323 -409 -312 -364 -375 -341 -417 -350 -342 -360 -336 -394 -368 6 13 20 27 350 724 827 818 631 680 -477 -456 -155 -479 -441 -473 -133 -528 -445 3 10 17 24 31 353 461 277 374 -425 -321 -453 -345 -327 -427 364 778 782 730 719 691 -466 -442 -422 -427 -417 -487 -482 -447 7 14 21 28 337 504 592 67 749 888 771 650 -412 -384 -179 -419 -410 -198 -568 -440 -439 -206 -542 335 434 479 152 828 928 790 518 -493 -439 -511 -297 -366 -439 -489 -308 -376 July Aug. Sept. Oct. 5 12 19 26 p - Preliminary 171 276 p p p p - 77 - 22 I -117 -210 -277 -339 -352 ____________________ 4 -359 -374 -390 -416 - 94 -460 -404 -583 -494 -311 -366 -383 TABLE A-2 AGGREGATE RESERVES AND RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) A gr Reserve Total Reserves Reserves Monetary Total Member e gates Required reserves Against Nonborrowed Demand Total Nonborred Reserves Deposits Bank Deposits (credit) 1/ Variables Money Supply Time Private Deposits Deposit Demand Total (comm. banks) Deposits Annually: 1964 1965 (S E R I E S RE V IS E D) + 4.2 + 4.6 + 4.9 + 5.3 + 4.3 + 5.3 + 3.1 + 2.3 + 7.6 + 9.1 +12.8 +16.0 + 4.3 + 4.7 + 4.0 + 4.4 Monthly: 1965--July + 3.7 + 4.1 + 4.8 - 2.0 + 7.3 +15.0 + 5.2 + 4.7 August September + 0.4 - 1.2 + 1.5 - 3.9 - 1.8 2.2 - 4.0 - 6.8 + 7.0 + 3.9 +18.3 +13.7 + 4.4 + 8.1 + 2.8 + 9.4 October + 3.7 + 7.3 + 9.7 + 5.1 +12.2 +17.8 + 8.0 + 7.5 November + 0.6 + 5.0 - - 3.9 + 5.4 +15.0 + 2.9 + 1.9 December +13.8 + 9.8 +13.7 + 8.2 + 9.4 +11.5 +11.6 +13.0 1966--January February March April + 6.7 + 4.0 + 2.9 +13.2 + 9.5 + 3.1 - 4.6 +10.9 + 6.9 + 2.9 + 2.7 +11.9 +11.3 + 3.8 + 4.0 +11.7 + 8.3 + 3.7 + 5.3 +15.6 + 7.4 + 5.7 + 8.1 +15.3 + 5.7 + 1.4 + 7.8 +11.3 + 4.6 May + 0.3 + 0.1 + 2.1 - 4.8 + 4.7 +12.7 - 4.9 - June 2/ July 2/ August 2/ September2/r + 0.2 +12.4 -20.0 + 6.6 - 0.8 + 6.8 -15.5 -- + 1.6 + 8.1 -14.5 - 0.2 + 1.3 + 2.5 -16.9 - 0.6 + 4.5 +10.7 - 3.2 - 0.2 +11.8 +14.8 +10.7 + 3.0 + 6.3 -10.5 -+ 6.4 + 7.2 -16.2 - 0.9 + 7.3 October 2/ - 6.0 - - - - 2.9 - 2.3 - - 6.3 p - 1/ n _ 5.5 2.0 0.8 9.3 4.9 -- + 8.2 +12.7 7.2 1 2/ Includes all deposits subject to reserve requirements. Movements in this aggregate correspond closely with movements in total member bank credit. Changes in reserves, total deposits, and time deposits have been adjusted for redefinition of time deposits effective June 9. Changes in reserves have been adjusted for increases in reserve requirements in July and September. p - Preliminary. 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 = Change Currency Technical in Federal Reserve Gold credit (excl. k outside factors total float) 1/ banks net 2/ reserves Period =Bank use of reserves Excess Required reserves r 3/ ACTUAL Year: 1964 (1/1/64 - 12/30/64) 1965 (12/30/64 - 12/29/65) +3,127 +4,035 -125 -1,602 -2,281 -2,143 -185 +798 +534 +1,089 +766 +1,188 Year-to-date: (12/30/64 - 10/27/65) (12/29/65 - 10/26/66) +2,196 +1,852 -1,531 - 530 -750 -652 - 70 -470 -153 +201 +216 +512 -369 -310 +438 + 96 -526 -155 --- 1 -- -590 + 79 +199 +289 +182 +382 +851 -751 + 28 +562 +520 -618 + 55 +395 +432 - 93 - 27 +167 + 88 -525 -702 +100 -630 + 35 + -246 -457 +161 +275 + 56 + 77 +411 -332 +505 -270 + 61 - 26 +237 -369 .106 +301 +268 + 99 + 45 -327 - -232 - 99 Weekly: 1966--Sept. 7 14 21 28 Oct. 5 12 19 26 Nov. 2 +240 -- -100 -145 - 9 16 23 30 +355 + 40 -285 +220 - 10 10 10 10 -645 + 15 - 95 + 95 +130 + 40 + 30 -350 -170 + 85 - 60 - 45 -170 + 85 - 60 - 45 7 14 21 28 +845 -165 -505 + 70 - 10 10 10 10 -380 - 50 - 30 -155 -180 +265 +960 +150 +275 + 40 +415 + 55 +275 + 40 +415 + 55 p p p p 1 -- 2 - 10 PROJECTED Dec. 5 p - Preliminary. For For For See retrospective details, see Table B-4. factors included, see Table B-3. required reserves by type of deposits, see Table B-2. reserve side for explanation of projections. 5 -- 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 reee erves Supporting U. S. Gov't. demand demand deposits private deposits _Supporting Total Total Seasonal changes Demand Time Other than seasonal changes seasonal changes Demand Time ACTUAL Year: 1964 (1/1/64 - 12/30/64) 1965 (12/30/64 - 12/29/65) +766 +1,188 + 13 - 89 +753 +1,277 -222 +115 - 12 - 4 +511 +499 +476 +667 +214 +512 -228 - 26 +442 +538 -433 -547 + 32 + 43 +262 -113 +581 +1,1552/ 7 14 21 1/ 28 / + 55 +395 +432 - 93 - 76 -199 - 16 +429 +131 +594 +448 -522 + 94 +316 +130 -402 - 9 -- 10 -- + 47 - 82 +267 -127 - 1 +360 + 61 + 7 5 12 19 26 +237 -369 -106 +301 + 69 -291 -182 +346 +168 - 78 + 76 - 45 +135 +112 +163 + 23 + - + 35 -182 - 83 - 39 - Year-to-date: (12/30/64 - 10/27/65) (12/29/65 - 10/26/66) Weekly: 1966--Sept. Oct. p p p p 5 5 4 -- 7 3 -- 29 PROJECTED Nov. 2/ - 5 -170 + 85 - 60 - 45 -140 - 25 - 50 - 30 - 85 +135 -145 +135 - 30 + 40 + 85 - 45 + 55 -105 - 20 - 10 - 10 - 15 - 5 + 5 + + + + 55 95 90 75 50 + + + + + 5 5 5 5 5 Dec. 1/ 2 9 16 23 30 7 14 21 28 +275 + 40 +415 + 55 +215 -260 -+305 + 60 +300 +415 -250 +130 +295 +310 -175 - 5 - 5 - 15 + 5 - 70 + 5 +115 - 85 + + + + 5 5 5 5 Increase in percentage reserve requirements against time deposits absorb an estimated $350 million of reserves at city banks effective September 8 and $80 million at country banks effective September 15. Reflects reserve requirement changes in July and August. p - Preliminary Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Technical TePeriod faTreasury factors (net) Period ACTUAL Foreign deposits Float and gold operations loans (Sign indicates effect on reserves) Other nonmember deposits and F. R. accounts Year: 1964 (1/1/64 - 12/30/ 64) 1965 (12/30/64 - 12/29/65) -185 +798 Year-to-date: (12/30/64 - 10/27/65) - 70 - 61 -968 + 63 +896 (12/29/65 - 10/26/66) -470 + 11 -670 + +188 1966--Sept. 7 +182 +124 - 21 + 11 + 68 14 21 +382 +851 +164 +205 +160 +571 + + 5 3 + 53 + 72 28 -751 -406 -288 - 9 - 48 5 12 + 56 + 77 +344 + 36 -372 + 55 - 5 7 + 89 - 7 19 +411 - 23 +275 + 5 +154 26 -322 -227 -112 + 21 -476 +294 +132 -171 - 37 + 77 1 +196 +598 Weekly: Oct. - 4 PROJECTED Nov. 2 Dec. -145 +235 -375 9 16 23 30 +130 + 40 +330 -350 +195 ---- - 65 +100 +550 -350 7 14 21 28 -180 +265 +960 +150 ----- -180 +210 +900 +150 -- - --- - 60 -220 -- 5 -- ---- + 55 + 60 - Table B-4 SOURCES OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Period Total Federal Reserve credit (excl. float) Total U. S. Government securities Bank ' Bankers Outri ht Repurchase I anes holdings Bills Other . agreements a s t Member bank borr n borrowings Year: 1964 (1/1/64 - 12/30/64) 1965 (12/30/64 - 12/29/65) +3,217 +4,035 +3,281 +3,916 +1,985 +3,145 +1,022 +916 +274 -145 -100 + 77 + 42 Year-to-date: (12/30/64 - 10/27/65) (12/29/65 - 10/26/66) +2,196 +1,852 +2,356 +1,942 +1,806 +1,645 +916 +439 -366 -142 + -166 +851 +790 + 5 + 71 -1,264 -972 +189 +706 + 61 -966 +186 +572 +138 -580 -190 +784 +414 - 56 -422 + 4 +784 6 - 54 - 62 - 28 + - 10 + 56 - 9 -187 + 49 - 15 + 98 - 1 2 + + 2 Weekly: 1966--July 6 13 20 -105 27 +288 3 10 17 24 31 +655 Sept. 7 14 21 +380 - 41 -411 +380 28 +438 + 96 -526 -155 - 32 - 5 12 19 26 +702 +100 -630 + 20 +506 - 30 +496 + 10 - - -448 +273 -448 +194 Aug. Oct. +141 -634 -201 +758 +158 +194 -158 -194 82 + 41 -370 - 41 - 4 5 - 57 32 20 10 + 79 4. 4 - 52 - 11 - 28 + 58 +139 -117 -121 +178 +100 -138 -272 Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) 1964--January February March April May June July August September October November December 20,964 20,996 21,179 21,209 21,105 21,385 21,436 21,551 21,776 21,739 21,872 21,843 IES RE -20,673 20,711 20,875 20,931 20,911 21,135 21,150 21,256 21,422 21,409 21,487 21,585 20,972 21,015 21,172 21,333 21,346 21,499 21,526 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 1966--January February March April May June 1/ July 1/ August 1/ September p 1/ October p 1/ 23,139 23,217 23,274 23,530 23,536 23,539 23,758 23,362 23,486 23,368 22,701 22,759 22,671 22,788 22,844 22,896 23,123 23,163 23,193 23,350 23,067 23,064 23,048 22,877 22,878 22,862 22,992 22,694 22,694 22,590 19,679 19,748 19,796 19,855 19,910 19,993 20,118 20,247 20,387 20,486 20,547 20,634 20,702 20,765 20,881 20,985 20,962 21,138 21,247 15,295 15,321 15,344 15,364 15,371 15,409 15,495 15,575 15,665 15,709 15,713 15,746 15,730 15,717 15,789 15,831 15,750 15,877 15,912 21,331 21,553 21,720 21,803 21,970 15,916 22,075 22,084 22,269 22,477 22,453 22,582 22,511 22,517 22,599 22,447 16,364 16,071 16,151 16,168 16,285 16,356 16,510 16,625 16,534 16,626 16,468 16,428 16,499 16,371 p - Preliminary. 1/ Reserves have been adjusted for redefinition of time deposits effective June 9. 2/ Revised to reflect current levels of reserve requirements effective in mid-September. 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 1964--January Total member bank deposits (credit) 1/ T T posts Private demand deposits 2/ U.S. Gov't. demand deposits 202.8 93.5 104.4 4.9 February March April May June July August September October November December 203.8 205.1 206.0 206.6 208.7 209.3 211.3 213.1 214.1 216.1 216.7 94.4 94.9 95.8 96.8 97.7 98.6 99.6 100.8 101.9 103.1 104.2 104.6 104.7 104.9 104.9 105.2 105.8 106.3 106.9 107.2 107.3 107.5 4.8 5.4 5.3 4.9 5.8 5.0 5.4 5.5 5.0 5.7 5.0 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 roj. 238.0 238.7 239.8 242.9 243.9 244.8 246.9 246.2 246.2 245.6 121.8 122.1 122.8 124.8 126.2 127.0 128.8 129.8 130.1 129.5 111.7 111.6 112.7 113.5 112.9 113.5 112.4 112.1 112.6 111.7 4.5 5.0 4.3 4.7 4.8 4.3 5.6 4.2 3.5 4 .3 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. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9. p - Preliminar, 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 J/ Private Demand Deposits 2/ Time Deposits Adjusted 1964--June July August September October November December 155.6 156.6 157.2 158.2 158.8 159.0 159.7 33.5 33.6 33.8 33.9 34.0 34.1 34.2 122.1 123.0 123.5 124.3 124.8 124.8 125.4 118.6 119.7 120.9 122.1 123.5 125.1 126.6 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 36.3 125.3 125.2 125.6 126.2 125.8 126.7 127.2 127.5 128.5 129.3 129.5 130.9 128.7 130.7 132.0 133.3 134.6 136.2 137.9 140.0 141.6 143.7 145.5 146.9 147.8 168.0 36.6 131.4 1966--January 148.5 168.2 36.8 131.4 February 132.3 149.5 169.3 36.9 March 151.4 133.7 April 170.9 37.2 153.0 170.2 37.3 132.9 May 154.5 133.7 171.1 37.4 June 3/ 131.9 156.4 169.6 37.7 July 3/ 157.8 131.8 169.6 August 3/ 37.8 170.5 September 3/p 37.9 132.6 158.2 169.8 38.0 131.9 October 3/ p 157.9 1/ 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. TABLE C-3a MONEY SUPPLY AND TIME DEPOSITS AT ALL COMMERCIAL BANKS Seasonally Adjusted (Dollar amounts in billions, based on monthly averages of daily figures) 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 of Federal Reserve Banks. * - Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary.
@FedFRASER