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Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act. 1 In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing). 2 A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff. Content last modified 6/05/2009. CONFIDENTIAL (FR) November 10, 1967. MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments Day-to-day money market rates have generally been slightly lower during the past three weeks--a period including an "even keel" stance in relation to the Treasury's mid-November refunding--than in earlier weeks of September and October. In large part, the easing of such rates has reflected the usual seasonal improvement toward the end of October and in early November of the basic reserve deficiency of major money market banks in New York. With net demands for Federal funds by these banks reduced, the Federal funds rate averaged below 4 per cent during the three statement weeks October 25-November 8, as compared with 4 per cent or slightly above in earlier September-October weeks. New dealer loan rates in New York also averaged about 4 1/8 per cent during the recent period, as compared with 4¼ - 4-3/8 per cent earlier. In view of the reserve distribution favoring major money market banks, the money market rates noted above were consistent with net free reserves running more toward the lower end of the recent range. During the past three weeks net free reserves averaged $200 million and member bank borrowings $90 million, Excess reserves of country banks were relatively low in this period, which included two double settlement weeks. This ease in day-to-day rates was accompanied first by an updrift in bill rates, followed by some easing of bill rates later. FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, Period where available, weekly averages of daily figures) Money arket Indicators I Bond Yields Corporate MuniciBorrow- Federal 3-month Free New pal teserves ings Funds TreasU.S. (In millions Rate ury Gov't. Issues (Aaa) of dollars) Bill (20 yr) (Aaa)l/ Flow of Reserves. Bank Credit and Money Bank Total Money Time Deposits borrowed ReCredit upply Reserves serves Proxy (I Tin (In billions of dollars) Non- (Seasonally Adjusted) Oct. Nov. Dec. 1967--Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. p 1967--Oct. 11 18 25 Nov. 1 8 -425 -235 -196 5.46 5.75 5.39 5.33 5.31 4.96 4.83 4.88 4.76 5.70** 5.71 5.73 3.82 3.78 3.79 -116 +150 - 13 -131 - 59 42 172 199 275 257 311 270 252 212 4.87 4.99 4.50 4.03 3.94 3.97 3.78 3.88 3.99 3.87 4.51 4.61 4.56 4.64 4.90 4.99 5.01 5.12 5,16 5.36 5.43 5.18 5.31 5.38 5.62 5.79 5.78 5.89** 5.88** 6.08 3.50 3.38 3.47 3.50 3.71 3.80 3.86 3.78 3.81 3.88 +475 +325 +555 + 92 + 96 + 95 +307 +291 + 96 +267 +359 +218 +415 104 341 134 198 262 4.05 4.00 3.40 3.95 3.94 4.72 4.56 4.26 3.84 3.60 3.53 4.20 4.26 4.42 4.55 4.53 5.25 5.38 5.47 5.49 5.61 6.01 6.29 6.05** 6.12 6.37 3.83 3.92 3.92 3.92 3.97 4.63 -283 -338 153 5.06 5.39 4.38 4.58 4.54 4.62 Aver les 4.85 4.77 5.12 4.87 4.09 4.70 245 280 246 4.00 3.85 3.90 3.66 4.17 4.47 1 , Recent variations in growth Mar. 29-June 28 Jun. 28-Aug. 16 Aug. 16-Nov. 8 ___________________ __________________________________ 4.83 5.05 5.27 .L. 5.41 5.74 5.45 + 0.4 + 0.3 + + + + + + + + + 3.3 3.3 3.0 2.1 1.2 2.0 3.2 3.7 2.3 + 2.7 + 0.8 Annual rates + 0.8* + 1.2* - 2.3* - 1.3* +15.0 +10.7 - 0.3 + + + + + + 1.6 1.7 1.7 1.2 0.1 1.0 + + 0.6 0.5 0.7 0.7 of increase 3/ + 2.2 + 3.7* 0.2 0.3 1.3 2.2 2.6 2.6 2.0 1.9 2.5 2.2 2.5 1.7 2.0 0.5 0.8 0.4 0.4 n01 + 0.3* - +12.1 + 6.8 + 8.8* + 6.5* +17.3 +18.8 +19.4 +10.6 + 6.9 +11.8 + 4.8 +14.3 +18.4 +11.4 11 Includes issues carrying 5-year and 10-year call protection; ** issues carry a 5-year call protection. Time deposits adjusted at all commercial banks. week shown. Base is change for month preceding specified period or in case of weekly periods, the first Changes have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. November 9, 1967. 1/ 2/ 3/ * - - 0.1 + 1.2 + 1.6 + n- R -I 1. 3.68 3.82 3.85 - +164 +223 +269 +193 +328 - 0.4 + 2.1 - 0.7 3.67 3.83 3.56 5.63 5.83 6.01 + 49 - 8 - 0.9 - 0.6 + 1.2 , Year 1966 Second Half 1966 First Half 1967 - 59 - 16 0.2 November 10, 1967. -2- CONFIDENTIAL (FR) The 3-month bill was most recently quoted around 4.60 per cent. Liquidity demands of investors have been a tempering influence on bill rates, and very short-term bills, as typified by the 1-month bill, have declined in yield. There was little evidence of reaction in short-term markets to the most recent increase in British Bank rate. In contrast to the bill market, there were marked upward interest rate adjustments in the Treasury note and bond market. Intermediate- and longer-term yields rose 15-25 basis points over the past three weeks, largely because of disappointed market hopes for tax action in this session of Congress and in reaction to current and prospective additions to the calendar of new issues in the corporate, municipal, and Federal Government PC markets. Against this background of capital market gloom, the new Treasury issues in the mid-November refunding have traded almost continuously below par since the books were closed. Speculative selling of the long note created some serious pressures in the first few days after books were closed, but such selling has subsequently been minimal. As of the end of business Thursday, dealers' holdings of the 7-year note were down to about $75 million; the bulk of early dealer sales of this note were to Treasury investment accounts, but a steady small investor interest has been in evidence. With respect to the 15-month note, dealer holdings have been reduced to around $335 million, down some $300 million from their original holdings. The latest upward movement in market rates has developed despite a sizable reserve provision. In October, total reserves rose at November 10, 1967. CONFIDENTIAL (FR) about 16 per cent annual rate and the bank credit proxy by 12 per cent, close to expectations. This brings the annual rates of increase for these two variables to 12 and 13 per cent respectively over the first 10 months of the year. Time deposits rose by a 13 per cent annual rate in October, and the money supply, following virtually no growth in September, rose by about 6.5 per cent. For the year to date these two variables have risen at annual rates of 16.5 and 7 per cent respectively. To some extent this year's rapid increase in monetary variables offsets the suppressed rates of growth during the second half of 1966. Over the 16-month period since mid-1966, the bank credit proxy (including Euro-dollars) rose by a 9 per cent annual rate and the money supply 4 per cent. Prospective developments If monetary policy maintains an unchanged stance in terms of money market conditions, the complex of such conditions might include a Federal fund rate ranging around 4 per cent, member bank borrowings averaging around $100 million, and free reserves in a $150-$300 million range. The 3-month bill rate is normally under upward seasonal pressure between now and mid-December, and a 4.50 - 4.80 per cent range for the bill rate seems reasonable over the coming weeks. Upward pressures on bill rates, particularly relatively short bills, may be moderated by the favorable technical position of the bill market, by continued investor demands for liquid market instruments, and by the hiatus in new Treasury bill financing. With respect to the technical position of CONFIDENTIAL (FR) -4- November 10, 1967. the market, dealers continue to have a sizable positive carry on their bill positions. In addition, relatively strong market demand for bills, supplemented by recent System purchases of almost $500 million, has contributed to a reduction in dealer bill holdings from a recent peak of $3.4 billion on October 25 to around $2.5 billion currently. The System will be supplying reserves on balance between now and the next meeting of the Committee, although the precise amount is subject to more than the usual degree of uncertainty. Open market at the Federal Reserve buying will be reduced if, as seems likely, the Treasury cash balance/ will have to be drawn down as the mid-December cash low approaches. Direct borrowing by the Treasury from the System is also a possibility in December. A likely upward drift in bill rates will probably be accompanied by continued uncertainties and upward rate pressures in bond markets in reflection of the heavy municipal and corporate calendar and the concentration of Federal cash borrowing in the PC area (including a possible 20-year maturity as part of the FNMA PC offering). Factors tending to intensify such upward rate pressure are market worries over sterling, concern about the possibility of capital issues control, and prevailing expectations that monetary policy will tighten in view of the doubts surrounding enactment of a program of fiscal restraint. Since the upward rate pressures have so large an expectational component, any political or economic events altering attitudes could be quickly reflected in stabilization of bond markets. CONFIDENTIAL (FR) -5- November 10, 1967. With maintenance of prevailing money market conditions appearing consistent with a further updrift in interest rates, the rate of bank credit expansion over the last two months of the year is likely to slow somewhat further, assuming no unexpected shift in credit demands. In the mid-November refunding about $2 billion of new cash was raised, but relatively high interest rates offered on the new issues appeared to attract considerable nonbank subscriptions, including some from individuals. In addition to the placement of new Treasury debt outside the banking system, bank credit expansion is likely to be slowed somewhat as banks' ability to obtain CD funds outside the short maturity area is further limited by continued upward pressures on bill rates and yields on other short-term market instruments. Time and savings deposits in November are expected to increase in a 9-11 per cent range, the slowest monthly increase for the year to date. The competitiveness of large CD's has been adversely affected by yield levels reached by longer-term bills. And there are indications of some retardation in the flow of consumer saving to banks, just as is the case with other savings institutions. In December, the rate of increase in time deposits might remain moderate, influenced by the likely attrition of CD's in connection with the mid-December dividend and tax dates, although some part of funds raised in heavy capital market financing may be temporarily invested in CD's. It is not expected that banks will make particularly aggressive efforts to rebuild CD's rapidly next month--with short CD's the main -6- CONFIDENTIAL (FR) November 10, 1967. practical instrument--unless business loan demands tend to show a resurgence. Neither business inventory nor capital spending behavior yet suggest such a resurgence, but a moderate pick-up in business loan growth at banks might be anticipated if some corporate borrowers shy away from capital markets in view of the high rates there and if business activity in the coming weeks is especially buoyant. Private demand deposits at banks in November are expected to increase on average at an annual rate of 8-10 per cent, and money supply by 6-8 per cent. This growth in money supply follows sharp declines in the last half of October after U.S. Government deposits were increased by the large $4.5 billion tax bill financing. The $2 billion of cash raised in the current refunding is not expected to have so dampening an effect on money supply growth since all the cash will have to be paid out by the Government within a few days of receipt. In December, U.S. Government deposits are expected to decline sharply throughout the month, contributing to a further rapid growth in the money supply on average. Given these diverse deposit flows, bank credit in November is projected to increase in a 7-10 per cent annual rate range, and total reserves by a similar amount. And as a result of offsetting gyrations in private and Governmental demand deposits, in conjunction with the continued slower growth in time deposits, the bank credit proxy in December is likely to grow at a somewhat slower rate than in November. CONFIDENTIAL (FR) -7- Policy alternative. November 10, 1967. "Even keel" considerations are not likely to be a significant constraint on monetary policy from midNovember, or shortly thereafter, until at least the latter part of December. Distribution of issues in the mid-November refunding is proceeding relatively well. And, as noted earlier, dealer positions in the long note are comparatively low, while sales of the short note have been at a steady pace. Should the System wish to make a move toward restraint through open market operations, the Committee might consider aiming at a constellation of money market conditions including a Federal funds rate centering on 4 1/8 cent, member bank borrowings averaging $150per $200 million, and free reserves $50-$200 million. under the circumstances might move The 3-month bill rate closer to 5 per cent, as it became apparent that monetary policy was finally tightening, with most market participants probably assuming further tightening to come, and with major money market banks coming under increased pressure in view of the CD ceilings. At the same time, the market would begin to raise questions about possible changes in Regulation Q ceilings and the discount rate. Long-term rates may already reflect some expectations of a tighter monetary policy, but firm evidence that it has developed is likely to lead to further upward rate movements. Moreover, any expectations that this policy change may be the first of a series of moves would tend to increase the premium on anticipatory borrowing and investor reluctance in capital markets. CONFIDENTIAL (FR) -8- November 10, 1967. Borrowers may also attempt to raise or firm up their line of credit with banks, and perhaps even to take down existing commitments to ensure availability of cash at existing rates. If such demands develop, banks are likely to attempt to find additional funds through a variety of means, including sale of short CD's, by active bidding in the Euro-dollar market, and some more aggressive activity in the Federal funds market. Such developments would, in turn, lead to a temporarily somewhat faster growth in reserves and bank credit than with no change in policy. Over the longer run, as policy remains taut, the rate of bank credit and money expansion may moderate, depending on the extent to which banks dispose of assets rather than take their chances in the Federal funds or CD markets, on the response of borrowers to the higher cost of money, and on policy with respect to Regulation Q. LGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess reserves Period As __ Member banks I borrowinas revised to I Free reserves I date As expected at conclusion of each week's open I Monthly (reserves weeks ending in): As first published each week 1966--October November December 341 370 333 766 605 529 -425 -235 -196 1967--January February March April May June July August September October p 417 408 368 349 369 345 449 356 334 353 476 366 196 150 94 - 59 141 42 172 199 275 257 317 270 252 212 5 12 19 26 462 643 236 453 353 69 51 54 109 574 185 399 152 597 195 403 214 417 Aug. 2 9 16 23 30 295 371 382 473 260 116 91 129 47 46 179 280 253 426 214 206 324 258 422 182 188 319 269 438 202 Sept. 6 13 20 27 332 386 79 288 408 211 106 74 253 316 302 137 275 336 185 219 293 350 217 Oct. 4 11 18 p 25 p 413 249 557 192 144 145 216 58 269 104 341 134 298 151 378 164 271 186 379 106 Nov. I p 8 D 278 80 132 198 262 295 312 233 Weekly: 1967--July p - Preliminary 394 88 132 86 82 70 market opeations _____________________ 262 .1 168 604 TABLE A-2 AGGREGATE RESERVES AND RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) Reserve Total Reserves Aggregates Required reserves Against Nonborroved Nonb ,ed Total Demandi Reserves Deposits Monetary Var i ables lM Time Money Supply Total Member Bank posits Deposits Private Bank Deposits / (credit) 1/2/ _-_ (comm. banks ) / 2 / Total Demand __Deposits Annually: 1965 1966 + 5.2 + 1.2 + 4.2 + 0.8 + 5.1 + 1.4 + 2.3 + 0.9 + 9.1 + 3.7 +16.0 + 8.8 + 4.7 + 2.2 + 4.3 + 1.2 Monthly: 1966--Jul. Aug. Sept. + 8.1 -15.2 + 4.5 + 6.0 -13.0 - 2.0 + 4.9 - 8.4 - 1.0 + 5.9 -11.5 - 4.5 + 9.3 - 1.0 - 0.5 +16.3 + 9.2 + 3.8 - 4.9 + 1.4 + 2.8 - 8.1 + 0.9 + 1.8 Oct. Nov. - 6.9 - 3.1 - 6.4 + 8.3 - 3.0 - 3.1 - 7.2 0.5 - 4.4 - 3.4 + 1.5 - 2.3 - - Dec. - 0.9 - 0.7 + 1.8 - 6.7 + 2.0 + 9.8 + 2.1 + 0.9 +19.2 +11.5 +21.6 + 2.5 - 0.4 + 8.4 +11.3 +13.5 + 9.6 +16.2 +26.0 +17.4 +29.4 + 4.7 + 4.9 + 4.9 +15.2 +14.7 + 4.8 +13.2 +14.4 +12.0 +15.3 + 8.1 - 1.2 + 4.8 +16.0 +15.6 + 9.0 +17.7 +14.0 +11.6 + 9.8 + 5.0 - 2.1 - 2.8 +15.8 +14.4 + 7.1 +16.2 +16.1 +15.9 +14.3 + 9.9 + 5.6 + 8.8 +15.2 +16.9 +10.3 +12.0 +16.5 +19.3 +19.0 +14.4 +13.5 +17.5 +15.2 +17.1 +11.4 +13.3 - 0.7 + 8.5 +11.2 - 2.8 +12.5 +11.7 +11.6 + 8.1 + 0.7 + 6.7 - 2.7 + 9.1 +12.7 - 5.4 +15.3 +13.3 +14.0 +10.4 - 0.9 + 6.9 1967--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. p 1/ 2/ 2.8 -- 4.5 0.9 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, 1966. p - Preliminary. Chart 1 MEMBER BANK RESERVES MONTHLY AVERAGES OF DAILY FIGURES I I I I I I I I I I BILLIONS OF DOLLARS, SEASONALLY ADJUSTED 25.0 24.5 24.0 23.5 TOTAL 23.0 RESE 22.5 -^- -. 22.0 NET BORRO 21.5 M J 1966 S D M J 1967 S D Chart 2 MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF DOLLARS 286 282 I I I I 1 1 I I I I TOTAL MEMBER BANK DEPOSITS (CREDIT PROXY) SEAS ADJ WEEKLY | AVERAGE OF DAILY FIGURES 278 274 270 266 262 258 254 250 246 242 6 LIABILITIES TO OVERSEAS BRANCHES (WEEKLY REPORTING BANKS) NOT SEAS ADJ, WEDNESDAYS 4 2 0 III S 1966 D I I I M I J 1967 I S D Chart 3 MONEY SUPPLY ANDtN BPII SEASONALLY ADJUSTED WEEKLY AVERAGES Of DAILY FIGURES BILLIONS OF D KLAIRS ~ I IBLLIONS 41 OF DOLLARS )so 190 175 185 170 180 165 175 160 170 160 25 NEGOTIABLE CD'S (Unadjusted) 20 15 10 1 m J 1966 . S D m J S D 1967 * CHANGE IN SERIES Chart 4 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES Ill I BILLIONS OF DOLLARSI 45 MONEY SUPPLY COMPONENTS: 40 CURRENCY OUTSIDE BANKS 35 30 140 135 13DEMAND DEPOSITS____________________ 130 125 120 15 U.S. GOVT. DEMAND DEPOSITS (Member Banks) 10 5 M J 1966 S D M J 1967 S D NOTE Due to the Verterans' Day holiday,data for the "B Tables" usually included in able. the Blue Book are not avail- A supplement with these data will be prepared and distributed Monday, November 13, 1967./ Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES 1/ Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) eriod Total reserves Nonborrowed reserves Total Required reserves Aiaint prvate deposits Total Demand 1965--Jul. Aug. Sept. Oct. Nov. Dec. 21,857 21,923 21,869 21,986 21,976 22,186 21,356 21,417 21,318 21,533 21,589 21,722 21,488 21,533 21,494 21,645 21,671 21,861 20,626 20,719 20.904 21,073 21,170 21,285 15,921 15,943 16,065 16,147 16,196 16,266 1966--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. Nov. Dec. 22,358 22,401 22,452 22,679 22,703 22,707 22,861 22,571 22,655 22,524 22,465 22,449 21,899 21,943 21,873 22,027 22,020 22,030 22,140 21,900 21,864 21,748 21,898 21,885 22,007 22,028 22,077 22,252 22,308 22,339 22,431 22,274 22,256 22,200 22,142 22,175 21,411 21,464 21,600 21,771 21,782 21,883 21,841 21,842 21,860 21,741 21,716 21,772 16,375 16,413 16,506 16,605 16,562 16,606 16,512 16,473 16,475 16,365 16,364 16,378 1967--Jan. Feb. Mar. 22,808 23,026 23,441 22,360 22,685 23,240 22,442 22,666 22,955 21,803 22,044 22,297 16,328 16,478 16,647 Apr. May June 23,490 23,482 23,646 23,332 23,428 23,523 23,110 23,086 23,178 22,293 22,559 22,890 16,578 16,786 17,024 Jul. Aug. Sept. Oct. p 23,869 24,138 24,331 24 659 23,830 24,121 24,217 24,484 23,488 23,794 23 972 24,325 23,049 23,275 23,329 23,452 17,115 17,246 17,236 17,315 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 1// _(credit) deposits2 229.1 230.4 113.6 115.4 108.6 108.8 6.8 .6.3 Sept. Oct. 231.4 233.5 116.9 119.0 109.6 110.1 4.9 4.4 Nov. 234.8 120.2 110.5 4.1 Dec. 236.4 121.2 111.0 4.2 1966--Jan. Feb. Mar. 238.0 239.0 239.8 121.7 122.0 123.0 111.7 112.0 112.6 4.7 5.0 4.2 Apr. May June Jul. Aug. Sept. Oct. Nov. 242.2 243.9 244.8 246.7 246.5 246.4 245.5 244.8 124.8 126.1 127.5 128.7 129.7 130.1 129.9 129.3 113.3 113.0 113.3 112.6 112.4 112.4 111.6 111.6 4.1 4.8 4.0 5.3 4.4 3.9 4,. 4,.0 Dec. 245.2 130.3 111.7 3.2 1967--Jan. Monthly 1965--Jul. Aug. Time Private demand deposits 3/ U.S. Gov't. demand deposits 248.5 132.2 111.4 4.9 Feb. Mar. 251.8 254.8 134.4 136.5 112.4 113.6 5.0 4.8 Apr. 256.9 138.0 113.1 5.8 May June Jul. Aug. Sept. Oct. p 258.1 260.0 263.3 267.0 269.3 272.0 139.4 141.7 143.3 145.6 147.2 148.2 114.5 116.1 116.7 117.6 117.6 118.1 4.1 2.2 3.2 3.7 4.5 5.6 /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. 1967. 3/ Private demand deposits include demand deposits of individual, partnerships and corporations and net interbank balances. 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 (credit // 2 Week ending: Time deposits 2/ Private demand deposits 3/ U. 8. Gov't. demand deposits 7 14 21 28 259.3 260.2 261.2 259.9 140.9 141.6 141.8 142.1 115.9 116.1 116.2 116.2 2.6 Jul. 5 12 19 26 260.4 261.7 263.9 264.6 142.5 142.9 143.4 143.7 116.9 117.2 116.6 116.6 1.0 1.6 4.0 4.3 Aug. 2 9 16 23 30 265.8 267.0 266.7 266.8 267.0 144.4 145.0 145.4 145.8 146.5 117.2 117.5 117.4 117.6 117.6 4.3 4.4 3.9 3.4 3.0 Sept. 6 13 20 27 269.3 269.6 268.8 269.1 146.9 147.0 147.2 147.3 118.3 118.3 116.1 117.4 4.1 4.3 5.5 4.5 Oct. 4 11 18 25 269.7 271.0 273.1 272.4 147.6 148.0 148.4 148.4 118.6 118.9 118.4 117.6- 3.6 4.1 6.3 6.4 Nov. 1 8 273.2 273.2 148.9 149.1 117.7 118.7 6.7 5.4 1967--June 2.6 3.2 1.6 p - Preliminary. 1/ Includes all deposits subject to reserve requirements--i.e., the total Moveof time, private demand, and U.S. Government demand deposits. ments 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 of 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) 1965--Jul. Aug. Money Supply Currency 1/ Private Demand Time Deposits Deposits Monthly Adjuted 162.4 163.2 35.3 35.5 127.2 127.8 137.9 139.8 Sept. Oct. Nov. Dec. 164.0 165.2 165.7 166.8 35.7 36.0 36.1 36.3 128.4 129.3 129.6 130.5 141.6 143.8 145.5 146.9 1966--Jan. Feb. March Apr. May June Jul. Aug. 167.9 168.3 169.2 170.5 170.2 170.6 169.9 170.1 36.6 36.7 36.9 37.1 37.3 37.4 37.7 37.8 131.4 131.6 132.3 133.4 132.9 133.2 132.3 132.4 147.5 148.3 149.8 151.8 153.4 154.8 156.9 158.1 Sept. 170.5 37.9 132.6 158.6 Oct. Nov. Dec. 170.1 170.1 170.4 38.0 38.1 38.3 132.1 132.0 132.1 158.8 158.5 159.8 170.3 171.5 173.1 172.7 174.5 176.2 177.9 179.1 179.2 180.2 38.5 38.7 38.9 39.1 39.2 39.3 39.5 39.6 39.8 39.9 131.8 132.8 134.2 133.6 135.3 136.8 138.4 139.6 139.5 140.3 3/ 32 162.0 164.6 167.2 169.2 171.1 173.6 175.8 178.3 180.0 182.0 1967--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. p 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, 1986. 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 / Demand Deposits Time Deposits / a adjusted 3/ 2/ 1967--June 7 14 21 28 176.0 176.3 176.4 176.4 39.3 39.4 39.4 39.4 136.7 136.9 137.0 136.9 172.6 173.6 173.7 173.9 July 5 12 177.6 178.1 177.7 177.8 39.4 39.5 39.4 39.4 138.2 138.6 138.3 138.4 174.6 175.4 175.8 176.1 178.3 39.4 39.6 39.6 39.6 39.6 138.9 139.3 139.7 139.5 139.5 176.8 177.8 179.7 180.0 178.0 179.3 39.7 39.8 39.7 179.6 179.8 180.2 39.7 139.9 140.2 138.2 139.5 4 11 18 25 180.3 180.9 180.4 179.7 39.8 39.9 40.0 39.9 140.5 140.9 140.4 139.8 180.7 181.2 1 180.4 181.2 39.8 39.9 140.5 141.3 182.8 182.9 19 26 Aug. 2 9 16 23 30 Sept. 6 13 20 27 Oct. Nov. 8 178.8 179.2 179.1 179.1 - I/ I , 178.2 178.5 179.2 180.3 182.0 182.4 I' 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. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary.
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