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Content last modified 6/05/2009.
CONFIDENTIAL (FR)
October 20, 1967.
MONEY MARKET AND RESERVE RELATIONSHIPS
Recent developments
Thus far in October Treasury bill yields have fluctuated
fairly widely, and on balance have risen somewhat further along with
most other short-term rates.
The 3-month bill reached a peak of 4.70
per cent and declined to just under 4.60 per cent recently, up almost 20
basis points since the beginning of the month, but much of this net rise
reflects the change in the maturity date of the bill from December to
January.
Longer-term bill yields have risen a few basis points since
early October.
In bond markets, both Treasury and private, upward yield
adjustments were more marked, as expectations of a tax increase waned
and the corporate calendar began to build up again.
In the corporate
market, distribution of a number of new issues was slow, and syndicates
were terminated with substantial concessions in yield.
Interest rates
in the intermediate-term sector of the Treasury market also rose in
anticipation of the mid-November refunding.
Very recently, the re-
appearance of investor demand, particularly for corporate issues, has led
to some declines in yields in both the corporate and Treasury markets.
Market absorption of the recent $4.5 billion tax bill financing
was the principal influence on bill rates during the past three weeks,
but anticipations of a rise in British bank rate were also a factor.
(Bank rate was increased from 5½ to 6 per cent on October 19.)
Relatively
favorable financing costs to dealers moderated upward bill rate pressures
FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE
('lonthlv averaees and,
M-nor
Free
Borrowteserves
ings
(In millions
of dollars)
Period
where available,
Market Indicators
F
Federal 3-month
Funds Treasury
Rate
Bill
Li4
C
weekly averages of daily figures)
Flon
Rnnd ~ields
A
Corporate Municipal
U.S.
New
Gov't.
Issues
(Aaa)
(20 yr.)
(Aaa)l/
Nonborrowed
Reserves
Reserves. Bank Credit and Money
millions
dni!r'f
(Iv
0
II
i
.f
Total
Reserves
B
an k
Bank
Money
Supply
Time
Deposits
21
(In billions of dollars)
Cr eoy
Proxy
(Seasonally Adjusted)
0.1
+ 84
+ 0.4
-131
0.9
- 0.4
765
766
605
529
5.30
5.46
5.75
5.39
5.36
5.33
5.31
4.96
4.94
4.83
4.88
4.76
5.82**
5.70**
5.71
5.73
3.93
3,82
3.78
3.79
p
42
172
199
275
257
311
270
252
476
366
196
150
94
88
132
86
82
4.87
4.99
4.50
4.03
3.94
3.97
3.78
3.88
3.99
4.72
4.56
4.26
3.84
3.60
3.53
4.20
4.26
4.42
4.51
4.61
4.56
4.64
4.90
4.99
5.01
5.12
5.16
5.43
5.18
5.31
5.38
5.62
5.79
5.78
5.89**
5.88**
3.50
3.38
3.47
3.50
3.71
3.80
3.86
3.78
3.81
1967-- Sept.
20
27
308
131
106
74
4.00
4.00
4.46
4.55
5.16
5.22
5.82
5.89**
3.82
3.83
- 0.9
+ 0.4
- 2.1
+ 1.5
Oct.
4
11
18
277
1-)3
144
145
b 14
5.25
6.07
6.34
3.83
3.83
3.82
+ 0.7
+ 1.1
216
4.42
4.53
4.63
5.21
378
4.05
4 05
4.00
+ 0.8
+ 0.5
4 0.2
Year 1966
-283
672
5.06
Aver
4.85
4.77
5.41
3.67
Second Half 1966
-390
-425
1>o6--Sept.
Oct.
Nov.
-215
-196
Dec.
1967--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
- 59
5.37
tes
- 36
-116
+150
- 13
-
+475
+325
+555
+359
+218
+ 92
+ 96
+ 95
59
16
+415
+ 49
8
+307
+291
+164
+223
+269
+100
+197
0.6
0.4
3.3
3.3
3.0
2.1
1.2
2.0
3.2
3.7
2.3
+ 2.3
0.1
1.2
1.6
0.3
1.6
1.7
1.7
1.2
0.2
Annual rates of increase 3/
+ 0.8*
+ 1.2* + 3.7*
+ 2.2
+ 8.8*
-338
763
5.39
5.12
4.87
5.74
3.83
-
First Half 1967
153
222
4.38
4.09
4.70
5.45
3.56
+15.0
Recent variations
in growth
Mar. 29-June 28
Jun. 28-Aug. 16
Aug. 16-Oct. 18
245
280
271
110
123
103
4.00
3.85
3.95
3.66
4.17
4.44
4.83
5.05
5.19
5.63
5.83
6.00
3.68
3.82
3.81
1.3*
- 2.3*
+ 0.3*
- 0.2
+ 6.5*
+10.7
+12.1
+ 6.8
+17.3
+18.8
+19.4
+14.1
+ 6.9
+11.8
+ 5.5
+14.3
+18.4
+12.0
Includes issues carrying 5-year and 10-year call protection; ** issues carry a 5-year call protection.
Time deposits a dIjusted at all commercial banks
3/ Base is change for month preceding specified period or in case of weekly periods, the first week shown.
Changes have been adjusted for redefinition of time deposits effective June 9, 1966.
p - Preliminary.
nh
On 1Q
7
v^\->s
k
L LV)
L~V
1/
2/
+ 0.3
CONFIDENTIAL (FR)
-2-
October 20, 1967.
as dealers took into position sizable commercial bank sales of the new
tax bills.
In the process, average dealer bill holdings rose by about
$750 million to almost $2.7 billion during the two weeks ending October 18.
The System did not make any outright bill purchases in the
market after early October, as reserve projections indicated that no
sustained reserve supply was needed, but the Desk did make sizable
repurchase agreements in the first half of October to counteract dayto-day tendencies toward market tightness.
The amounts of such agree-
ments outstanding averaged around $400 million per day in the two
statement weeks ending October 18.
New RP's were made on all but three
business days during that period as the Federal funds market showed a
tendency to tighten, with trading as high as 4k per cent.
During the
first two statement weeks of October, the Federal funds rate averaged
4.05 per cent, up a few basis points from earlier weeks, and averaged
4 per cent during the week just past.
Financing costs to dealers became
slightly more expensive.
On the demand side of the Federal funds market, Government
security dealer financing demands pressed on the market and the major
banks in New York had a greater need for funds as their basic reserve
position worsened after early October.
This change in position of
major banks was in part a seasonal phenomenon, and most recently their
position has improved.
On the supply side, the availability of funds
may have been held back by the somewhat larger than expected expansion
in required reserves during recent weeks,
particularly at country banks.
CONFIDENTIAL (FR)
-3-
October 20, 1967.
With the Federal funds rate drifting up, member banks,
particularly large banks, appeared to show a greater inclination to
borrow from the System.
Member bank borrowings averaged $145 million
during the first two statement weeks of October and rose to $215 million
in the latest statement week.
In addition large banks also increased
their borrowings in the Euro-dollar market and raised CD rates particularly
on longer maturities.
Free reserves averaged $205 million in those first two weeks,
but rose to $378 million in the week of October 18 when country banks
added large amounts to their excess reserves, as they have in the past
during the third week of October.
This excess reserve build-up led
to some easing of money market rates as these funds moved into the central
money market.
Prospective developments
Setting aside the extremes of recent fluctuations, prevailing
money market conditions might be thought of as including a Federal funds
rate ranging around 4 per cent; member bank borrowings averaging around
$100 million; and free reserves in a $150 - $300 million range.
Given
these money market conditions, the 3-month Treasury bill rate is expected
to remain in a 4.40 - 4.70 per cent range over the balace of October and
into the first half of November.
Relatively low dealer financing costs
should continue to exert some moderating effect on the bill market.
In
CONFIDENTIAL (FR)
-4-
October 20, 1967.
addition, in the current uncertain financial environment liquidity
demands from corporations and others will probably relieve the current
market supply of bills.
Finally, the Federal Reserve is projected to
supply about $700 million of reserves through open market operations
during the three statement weeks ending November 16.
With prevailing conditions in money and short-term markets,
and in light of recent developments affecting the demand for reserve
funds by banks, earlier projections for October of the bank credit proxy
need to be revised up a bit--from the 10 - 13 per cent average annual
rate range of the last Blue Book to a 12 - 15 per cent range (13 - 16
per cent after including the $200 million increase in Euro-dollar
borrowings by U.S. banks thus far in October).
In addition to Governmental
and security dealer credit demands, the expansion in bank credit also
reflects a relatively moderate growth in business loans at weekly reporting
banks after mid-September following sizable net repayments in earlier
weeks.
This business loan growth was in good part related to corporate
payments of their income taxes and transfers of withheld personal income
taxes to the Treasury.
Time and savings deposits are anticipated to grow
a little more rapidly than earlier expected, perhaps in a 12 - 14 per
cent range, and the money supply much more rapidly, in a 7 - 9 per cent
range.
In November, the rate of growth in the bank credit proxy may
be somewhat lower than in October, given the money market conditions
specified above, some moderation in over-all credit demands from the
October pace (largely because of lower Federal Government borrowing on
CONFIDENTIAL (FR)
-5-
October 20, 1967.
average), and banks' continued ability to attract the public's savings.
The most likely growth rate at the moment appears to be in a 7 - 10
per cent range, but there are major uncertainties with respect to the
magnitude of business credit demands and how much will fall on banks as
well as with respect to the amount of new cash the Treasury will raise in
the mid-November refunding.
Our
best guess is that business loans will not show more
than moderate strength in the period ahead, but they could spurt if the
recent somewhat unsettled conditions in financial markets continue and
lead borrowers to anticipate their needs for bank financing as well as
for capital market funds.
The Treasury may wish to raise as much cash
as possible in connection with the mid-November refunding (in which the
maturing issues in the hands of the public total only $2.6 billion),
perhaps $2 billion or so if market conditions warrant.
Our projections
allow for $2 billion of new cash, with banks holding part of the net
new issues in portfolio and providing security loans to help finance
distribution of the other securities.
Time and savings deposits are expected to continue to be a
principal source of bank credit expansion despite the recent rise in
market rates, and may continue to grow in a 12 - 14 per cent annual
rate range.
However, any further rise in interest rates on competitive
instruments, including new attractive issues in the Treasury financing
would divert some flows from institutions.
While growth in large CD's
-6-
CONFIDENTIAL (FR)
October 20, 1967.
outstanding at banks is expected to continue at the moderate October
pace, when they are projected to increase by $300 million, banks are
likely to have to pay ceiling rates for large blocs of funds with
maturities of 6 months or more.
Government demand deposits are expected to decline on
average, seasonally adjusted, in November, partly reversing their
sizable October increase.
With Government deposits declining in
November, private demand deposits are expected to rise in a 5 - 7 per
cent annual rate range, with the money supply growing by 4 - 6 per
cent.
Expansion of banks' total reserves in November is expected
to be in a 6 - 9 per cent range, down sharply from October, as time
deposits come to account for the great bulk of the November expansion.
The recent apparently greater inclination for banks to borrow, given
the widening spread of other short-term rates above the discount rate,
may tend to support a somewhat more rapid reserve expansion than
would otherwise be the case as the System attempts to keep the level
of borrowings from rising.
The projections for October and November,
and for the two months together, can be summarized as follows:
CONFIDENTIAL (FR)
Money market variables
Fed. 3-month
Free
Borrow-
reserves
ings
(Mill. dollars)
October
November
to
50
300
around
100
October 20, 1967.
-7-
funds
bill
rate
rate
(Per cent)
around
4
4.40 to
4.70
Banking aggregates
Bank
credit
Time
Money
Total
proxy
deposits supply reserves
(Annual rates of increase)
12-15
7-10
12-14
12-14
7-9
4-6
17-20
6-9
The projected reserve and bank credit expansion is likely
to be accompanied by some further rise in intermediate- and long-term
rates in the weeks ahead if the Treasury raises substantial amounts of
cash in mid-November partly through an issue in the intermediate-term
area, unless prospects for fiscal restraint wax instead of wane.
While
a diversion of funds to new Treasury issues by institutional investors
and possibly individuals will exert over-all pressure on capital
markets, the sharp recent rise in corporate and municipal bond yields
may have brought them to levels already sufficiently high so that they
could be partly sheltered from such developments.
However, bond markets
remain very sensitive, and could be adversely affected by further
announcements of large new private issues.
Long-term markets could also
be put under further pressure as the investors begin to focus on the
possibility that the U.S. Government might soon announce an issue of
participation certificates to raise further cash.
Table A-1
MARGINAL RESERVE MEASURES
(Dollar amounts in millions, based on period averages of daily figures)
Excess
raservR
Period
As
Member banks
Free
borrowins
revised
to
reserves
I
date
Monthly (reserves
weeks ending in):
As first
published
each week
As
expected
at
conclusion
of each
1966--September
October
November
December
375
341
370
333
765
766
605
529
-390
-425
-235
-196
1967--January
February
March
April
May
June
417
408
368
349
369
345
- 59
334
476
366
196
150
94
88
132
86
82
7
14
21
28
331
355
261
431
77
43
91
141
254
312
170
290
284
325
198
304
290
339
229
292
July
5
12
19
26
46?
643
236
453
353
69
51
54
109
574
185
399
152
597
195
403
168
604
214
417
Aug.
2
9
16
23
30
295
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
414
205
253
316
308
131
4
11
18
421
278
594
288
275
336
185
298
151
378
219
293
350
217
Oct.
79
70
106
74
144
145
216
July
August
September p
Weekly:
1967--June
p - Preliminary
440
35h
371
362
473
260
42
172
199
275
257
317
270
252
277
133
378
week's
open
market
opeations
I.
271
186
379
TABLE A-2
AGGREGATE RESERVES AND RELATED MEASURES
Retrospective Changes, Seasonally Adjusted
(In per cent, annual rates based on monthly averages of daily figures)
Ag gregates
Reserve
Total
Reserves
Moneta
Required reserves
Against
Nonborroed
Nonborrowed
Demand
s
Total
Rese
Reserves
Deposits
Total Member
Bank Deposits
Bank Deposits
(credit)
(credit) I/
-__--
r y
Var
Time
Deposits
(comm
banks)
ables
2/
Money Supply
Private
Demand
Total,
___Deposits
Annually:
1965
1966
+ 5.2
+ 1.2
+ 4.2
+ 0.8
+ 5.1
+ 1.4
-4 2.3
1 0.9
+ 9.1
+ 3.7
+16.0
+ 8.8
+ 4.7
+ 2.2
+ 4.3
+ 1.2
Monthly:
1966--Jul.
Aug.
Sept.
Oct.
Nov.
Dec.
+ 8.1
-15.2
+ 4.5
- 6.9
- 3.1
- 0.9
+ 6.0
-13.0
- 2.0
- 6.4
+ 8.3
- 0.7
+
+
4.9
8.4
1.0
3.0
3.1
1.8
+ 5.9
-11.5
- 4.5
- 7.2
- 0.5
- 6.7
+
+
9.3
1.0
0.5
4.4
3.4
2.0
+16.3
+ 9.2
+ 3.8
+ 1.5
- 2.3
+ 9.8
+
+
-
4.9
1.4
2.8
2.8
-+ 2.1
+
+
+
1967--Jan.
Feb.
Mar.
Apr.
May
June
Jul.
Aug.
Sept.
+19.2
+11.5
+21.6
+ 2.5
-0.4
+ 8.4
+11.3
+13.5
+ 9.8
+26.0
+17.4
+29.4
+ 4.7
+ 4.9
+ 4.9
+15.2
+14.7
+ 5.0
+14.4
+12.0
+15.3
- 8.1
- 1.2
+ 4.8
+16.0
+15.6
+ 8.8
+14.0
+11.6
+ 9.8
+ 5.0
- 2.1
- 2.8
+16.1
+13.7
+ 7.4
+16.1
+15.9
+14.3
+ 9.9
.o,
i 8.8
+15.2
+16.4
+10.3
+16.5
+19.3
+19.0
+14.4
+13.5
417.5
+15.2
+17.1
+11.4
- 0.7
+ 8.5
+11.2
- 2.8
+12.5
411.7
+11.6
+ 8.1
+ 1.3
- 2.7
+ 9.1
+12.7
- 5.4
+15.3
+13.3
+14.0
+10.4
- 0.9
1/
p
8.1
0.9
1.8
4.5
0.9
0.9
Includes all deposits subject to reserve requirements. Movements in this aggregate correspond closely with
movements in total member bank credit.
2/
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
BILLIONS OF DOLLARS, SEASONALLY ADJUSTED
25.0
24.5
24.0
23.5
TOTAL
23.0
RESE
22.5
-I---
22.0
NET
BORRO
21.5
M
J
1966
S
D
M
J
1967
S
0
Chart 2
MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES
BILLIONS OF DOLLARSI
286
I
I
I
1---
I
I
]
I-I
l-
TOTAL MEMBER BANK DEPOSITS (CREDIT PROXYJ
282
2
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
S
1966
D
M
J
1947
S
D
Chart 3
MONEY SUPPLY AND BANK DEPOSITS
SEASONALLY
ADJUSTED WEEKLY
A'E- ^t'
OF DAILY FIGURES
-DOLLA
I
RIIONS OF DOLLARS
BILLIONS
BrLIONS
BrLLIONS
190
180
MONEY
SUPPLY
175
185
170
180
165
175
160
170
165
TIME DEPOSITS
(All Commercial
ADJUSTED
Banks)
160
--
155
150
I
145
20
CD'S
NEGOTIABLE
(Unadjusted)
20
10
I
1
I
1
,
II
I
I
I
M
1966
1967
CHANGE IN SERIES
Chart 4
DEMAND DEPOSITS AND CURRENCY
SEASONALLY ADJUSTED WEEKLY
AVERAGES OF DAILY FIGURES
T
BILLONS OF
BILLIONS OF DOLL ARS
T-
-
I
1
I
[[ I I
45
MONEY SUPPLY COMPONENTS:
40
CURRENCY
OUTSIDE
BANKS
35
30
-
140
DEMAND
135
130
t
125
--
DEPOSITS
120
15
U.S. GOVT. DEMAND DEPOSITS
(Member
Banks)
10
5
0
1966
1967
I
-
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 sup ly of reserves
Currency Technical
Gold
Federal Reserve
credit (excl.
o
outside
factors
k
s
net 2/
banks
float) 1/
Period
=
Change
in
total
reserves
=
Bank use of reserves
Excess
Required
reserves
es
reserves
3/
ACTUAL
Year:
1965 (12/30/64 1966 (12/29/65 -
12/29/65)
12/28/66)
+4,035
+3,149
-1,602
-2,143
+1,089
+1,188
-
627
-2,243
+1,085
+1,111
+1,832
+3,434
-
530
152
-
+
+
238
878
+
+
501
119
446
+
+
114
268
+
60
+
240
-
97
+
112
616
551
283
+
444
+
228
-
238
-
95
+
627
+
311
Year-to-date:
(12/29/65 - 10/19/66)
(12/28/66 - 10/18/67)
Weekly:
1967--September
October
916
720
-
148
-1,683
'--t-~-PROJECTED
1967--October
November
December
For
For
For
See
t--t
25
-
1
8
15
22
29
6
- 15
180
220
350
130
175
+
+
-
285
100
95
95
200
-
110
30
+
+
190
-
185
+
+
+
155
+
20
+
+
+
+
290
185
200
385
-
+
460
-
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.
1'1*
+
365
170
212
721
-
15
70
165
10
-
110
30
70
+
165
+
10
85
+
85
p - Preliminary.
-
99
26
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
Perid
Period
re
required
Sreqired
reser
Supporting
private deposits
_Supporting
U. S. Gov't.
,Seasonal
demand
Total
deposits
_
Sea
Other than
seasonal changes
l changes
c
s
Demand
Time
Time
Demand
ACUTAL
Year:
+
-
115
14
-
4
4
+
+
589
513
-
570
587
+
+
49
48
59
+1,008
+1,169
+
44 2/
136
195
+
+
196
45
+
+
219
367
-
-25
-
26
292
+
-
3
5
+
311
-
199
-
425
+
6
+
218
+
3
228
95
311
+
90
125
206
+
+
+
318
30
105
+
+
+
117
15
117
+
-
5
5
6
+
+
-
184
8
21
+
+
+
12
12
15
-
15
+
85
-
100
--
+
5
-
120
+
15
1
8
15
22
29
+
+
110
30
70
165
10
+
+
215
60
165
90
30
+
+
+
+
-
105
30
95
75
20
+
+
-
105
45
60
60
45
+
5
5
15
20
5
+
+
+
+
15
60
30
135
--
+
+
+
+
+
20
20
20
20
20
6
+
85
-
120
+
205
+
145
-
5
+
45
+
20
-
89
87
+
+
212
721
+
377
208
1967--Sept. 13
20 p
+
+
60
240
+
27 p
+
112
4 p
11 p
18 p
+
+
25
Nov.
Dec.
+
-
+ 677
+1,221 1/
+1,277
+1,194
+1,188
+1,111
1965 (12/30/64 - 12/29/65)
1966 (12/29/65 - 12/28/66)
499
5
Year-to-date:
(12/29/65 - 10/19/66)
(12/28/66 - 10/18/67)
Weekly:
Oct.
PROJECTED
1 96 7
-- 0ct.
1/ Reflects reserve requirements changes in July and September 1966.
2/ Reflects reserve requirements changes in March 1967.
p - Preliminary
Table B-3
TECHNICAL FACTORS AFFECTING RESERVES
Retrospective and Prospective Changes
(Dollar amounts in millions, based on weekly averages of daily figures)
Technical
factors
Period
(net)
ACTUAL
Year:
1965 (12/30/64 - 12/29/65)
1966 (12/29/65 - 12/28/ ' '
Treasury
Treasury
Other
nonmember
deposits and
F. R. accounts
Foreign
deposits
and gold
loans
Floatdeposits
operations
(Sign indicates effe
+
+
~i
+
-
238
399
+
--i4 171
64
4
77
30
lear-to-date:
148
-
(12/29/65 - 10/19/66)
(12/28/66 - 10/18/67)
-1,683
-
558
-1,381
+
- 20
12
Weekly:
1967--September
781
+
+
-
134
210
224
4
248
-
- 35
77
2
+
648
+
156
-
October
4
"40
-4,-
4
3
4
S 2
- 4
4
4
PROJECTED
1967--October
November
December
25
+
180
-
150
+
200
1
8
15
22
29
+
+
-
285
100
95
95
200
+
95
+
+
-
380
100
80
485
200
6
-
185
-
185
+
5
+
125
+
15
-
390
Table B-4
SOURCE OF FEDERAL RESERVE CREDIT
Retrospective Changes
(Dollar amounts in millions of dollars, based on weekly averages of daily figures)
_
Period
Total Federal
Reserve credit
v
I\Bn~r
Year:
1965 (12/30/64 - 12/29/65)
1966 (12/29/65 - 12/28/66)
l
f1
LrvQ
II
Total
tr\
I
I-.
U.S. government securities
hliA
Ia
Other
Bills
I
__Secur
I
Repurchase
Federal
Agency
a
SecuritisPS
reement
r
n
Weekly:
1967--September
October
Member banks
borrowings
tis
+4,035
+3,149
+3,916
+3,069
+3,145
+2,158
+916
+474
-145
+437
+ 26
+ 77
+ 52
+ 42
+
2
+1,832
+3,434
+1,669
+3,854
+1,451
+439
+967
-221
-198
+
1
- 81
- 89
+244
-332
475
501
119
446
616
551
283
438
480
152
397
299
393
152
393
+ 52
+ 87
+
- 87
6
6
524
580
219
402
330
4
+122
+237
+223
+ 7
-: 20
Year-to-date:
(12/29/65 - 10/19/66)
(12/28/66 - 10/18/67)
I
Bankers'
acceptances
+3,085
+
4
+ 13
Cr art Reference Table C-1
TOTAL, NONBORROWED AND REQUIRED RESERVES
1/
Seasonally Adjusted
(Dollar amounts in millions, based on monthly averages of daily figures)
Period
Total
reserves
reserves
reserves
Aainst private deposits
Nonborrowed ~Required
reserves
Total
reserves
Total
Total
Demand
21,857
21,923
21,356
21,417
21,488
21,533
20,626
20,719
15,921
15,943
Sept.
Oct.
Nov.
Dec.
21,869
21,986
21,976
22,186
21,318
21.533
21.589
21.722
21,494
21,645
21,671
21,861
20 904
21,073
2L,170
21,285
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
12,140
21,900
-1,864
21,748
21,898
2',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,(4
21,600
21,771
21,782
21,883
21,841
?1,842
_1,860
2,,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.
Apr.
May
June
Jul.
Aug.
Sept. p
22,808
23,026
23,441
23,490
23,482
23,646
23,869
24,138
24,335
2,360
22,685
23,240
23,332
23,428
23,523
23,830
24,121
24,221
22,A42
22,666
22,955
23,110
23,086
23,178
23,488
23,794
23,969
,803
22,044
22,297
22,293
22,559
22,890
13,053
23,271
23,327
16,328
16,478
16,647
16,378
16,786
17,024
17,119
1965--Jul.
Aug.
I
'
17,242
17,235
p - Preliminary.
1/
9, 1966.
Reserves have been adjusted for redefinition of time deposits effective June
Table C-2
DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS
Seasoally adjusted
(Dollar amounts in billions, based on monthly averages of daily figures)
Monthly
Total member
bank deposits
(credit) 1/2/
Private
demand
U.S. Gov't.
demand
deposit 2
deposits 3/
deposits
Time
e
1965--Jul.
Aug.
Sept.
Oct.
Nov.
Dec.
229.1
230.4
231.4
233.5
234.8
236.4
113.6
115.4
116.9
119.0
120.2
121.2
108.6
108.8
109.6
110.1
110.5
111.0
6.8
6.3
4.9
4.4
4.1
4.2
1966--Jan.
Feb.
Mar.
Apr.
May
June
Jul.
Aug.
Sept.
Oct.
Nov.
Dec.
238.0
239.0
239.8
242.2
2A3 '
244.8
246.7
246.5
246.4
245. r
244.b
245.2
121.7
122.0
123.0
124.8
126.1
127.5
128.7
129.7
130.1
129.9
129.3
130.3
111.7
112.0
112.6
113.3
113.0
113.3
112.6
112.4
112.4
111.6
111.6
111.7
4.7
5.0
4.2
4.1
4.8
4.0
5.3
4.4
3.9
4.0
4.0
3.2
1967--Jan.
Feb.
Mar.
Apr.
May
June
Jul.
Aug.
Sept. p
248.5
251.8
254.8
256.9
258.1
260.0
263.3
266.9
269.2
132.2
134.4
136.5
138.0
139.4
141.7
143.3
145.6
147.1
111.4
112.4
113.6
113.1
114.5
116.1
116.8
117.6
117.6
4.9
5.0
4.8
5.8
4.1
2.2
3.2
3.7
4.5
1/
2/
3/
Includes all deposits subject to reserve requirements--i.e., the total
of time, private demand, and U.S. Government demand deposits. Movements
in this aggregate correspond closely with movements in total member
bank credit.
Deposits have been adjusted for redefinition of time deposits effective
June 9. 1967.
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)
Week ending:
Total member
bank deposits
1/
S(creditt
1967--Apr.
Time
deposits
Private
demand
24 deposits 3 /
2/
U. S. Gov't.
demand
deposits
256.0
256.8
257.1
257.4
137.5
137.9
138.1
138.3
113.9
113.5
112.9
112.4
4.7
5.5
6.0
6.7
May
3
10
17
24
31
257.7
258.0
258.1
257.9
258.4
138.5
138.8
139.3
139.8
140.3
113.1
113.3
114.9
114.9
115.4
6.1
5.9
3.9
3.2
2.7
June
7
14
21
28
259.3
260. .
261.2
259.9
140.9
141.6
141.8
142.1
115.9
116.1
116.2
116.2
2.6
2.6
3.2
1.6
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
268.7
269.1
146.9
147.0
147.1
147.2
118.3
118.3
116.1
117.5
4.1
4.3
5.5
4.4
Oct.
4
11
18
269.8
270.9
273.2
147.6
148.0
148.3
118.5
118.8
118.6
3.7
4.1
6.2
p - Preliminary.
1/ Includes all deposits subject to reserve requirements--i.e., the total
2/
3/
of time, private demand, and U.S. Government demand deposits. Movements
in this aggregate correspond closely with movements in total member
bank credit.
Deposits have been adjusted for redefinition of time deposits effective
June 9, 1967.
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)
Currency 1/
Private
Demand
Time Deposits
Monthly
Money Supply
1965--Jul.
Aug.
Sept.
Oct.
Nov.
Dec.
162.4
163.2
164.0
165.2
165.7
166.8
35.3
35.5
35.7
36.0
36.1
36.3
127.2
127.8
128.4
129.3
129.6
130.5
137.9
139.8
141.6
143.8
145.5
146.9
1966--Jan.
Feb.
March
Apr.
May
June
Jul.
Aug.
Sept.
Oct.
Nov.
Dec.
167.9
168.3
169.2
170.5
170.2
170.6
169.9
170.1
170.5
170.1
170.1
170.4
36.6
36.7
36.9
37.1
37.3
37.4
37.7
37.8
37.9
38.0
38.1
38.3
131.4
131.6
132.3
133.4
132.9
133 2
132.3
132.4
132.6
132.1
132.0
132.1
147.5
148.3
149.8
151.8
153.4
154.8
156.9
158.1
158.6
158.8
158.5
159.8
1967--Jan.
Feb.
Mar.
Apr.
May
June
Jul.
Aug.
Sept. p
170.3
171.5
173.1
172.7
174.5
176.2
177.9
179.1
179.3
38.5
38.7
38.9
39.1
39.2
39.3
39 5
39.6
39.8
131.8
132.8
134.2
133.6
135.3
136.8
138.4
139.6
139.5
162.0
164.6
167.2
169.2
171.1
173.6
175.8
178.3
180.0
1/
2/
Deposits
/
Adjusted
3/
Includes currency outside the Treasury, the Federal Reserve, and the vaults of all
commercial banks.
Includes (1) demand deposits at all commercial banks, other than those due to
domestic commercial banks and the U.S. Government, less cash items in process of
collection and Federal Reserve float; and (2) foreign demand balances 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 TIM
DEPOSITS AT ALL COMMERCIAL BANKS
Seasonally Adjusted
(Dollar amounts in billions, based
on weekly averages of daily figures)
Week Boding
Money Supply
Currency 1/
173.4
173.1
172.6
172.1
39.1
39.1
39.1
39.1
134.3
134.0
3
10
17
24
31
172.8
173.0
174.7
174.8
175.6
39.1
39.1
39.1
39.2
39.3
133.7
133.9
7
14
21
28
176.0
176.3
176.4
176.4
39.3
39.4
39.4
39.4
136.7
5
12
19
26
177.6
178.1
177.7
177.8
39.4
39.5
39.4
39.4
2
9
16
23
30
178.3
178.8
179.2
179.1
179.1
6
13
20
27
179.7
180.0
177.9
179.4
4
11
18
180.2
1967--Apr.
May
June
July
Aug.
Sept.
Oct.
l/
2/
p
Private
Demand
Deposits 2/
180.7
133.5
133.0
135.6
135.6
136.3
136.9
137.0
136.9
138.2
Time Deposits
adj
3
adjusted
168.3
169.0
169.5
169.6
169.9
170.4
171.0
171.5
172.2
172.6
173.6
173.7
173.9
138.6
138.3
138.4
174.6
175.4
175.8
176.1
39.4
39.6
39.6
39.6
39.6
138.9
139.3
176.8
177.8
139.7
178.2
139.5
178.5
139.5
179.2
39.7
39.8
39.7
39.7
39.7
39.9
39.9
139.9
140.2
138.1
139.7
179.6
179.8
180.0
140.5
140.8
141.0
180.7
180.2
181.2
181.9
-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.
Preliminary,
180.9
@FedFRASER