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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. September 29, 1967. CONFIDENTIAL (FR) MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments With private credit demands moderating and with relatively high market interest rates beginning to impinge somewhat on the previous rapid rate of increase in time and savings deposits, bank credit expansion in September averaged 9½ per cent at an annual rate--as indicated by preliminary daily deposit figures--down 7 percentage points from the pace of August and in line with staff expectations. Euro-dollar borrowings abroad by U.S. banks showed little change on average in September, although increasing toward month end. Private demand deposits declined slightly in September, reflecting in part relatively weak business loan demand, while time deposits increased at a considerably slower pace than in the preceding months of this year. Outstanding negotiable CD's are estimated to have declined $700 million in September, on the basis of partial figures thus far available. While banks were clearly not aggressive in seeking CD funds, some large banks did find it necessary to raise their offering rates in face of further upward rate pressures in short-term markets. Treasury bill rates have risen generally 5 - 15 basis points on balance since the last meeting of the Committee, with the largest increases in the long-term bill area, the area most influenced by the Treasury's cash borrowing plans. In the latter part of September, the Treasury announced $4.5 billion of April and June tax bills to be FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, where available, weekly averages of daily figures) Bond Yields Flow of Reserves. Bank Credit and Money Corporate MuniciNonTotal Bank Money Time U.S. New pal borrowed ReCredit Deposits Supply Deposits Gov't. Issues (Aaa) Reserves serves Proxy 21 (20 yr.) (Aaa)./ (Iq mi i (In billions of dollars) (Seasonally Adjusted) 765 5.30 5.36 4.94 5.82** 3.93 - 36 + 84 - 0.1 + 0.4 + 0.7 766 5.46 5.33 4.83 5.70** 3.82 -116 -131 - 0.9 - 0.4 + 0.2 605 5.75 5.31 4.88 5.71 3.78 +150 - 59 - 0.6 -- 0.3 529 5.39 4.96 4.76 5.73 3.79 - 13 - 16 + 0.4 + 0.3 + 1.3 Money arket IndicatorsI Free Borrow- Federal 3-month keserves ings Funds Treas(In millions Rate ury of dollars) Bill Period Period '66--Sept. Oct. Nov. Dec. -390 -425 -235 -196 1967--Jan. Feb. Mar. Apr. May June July Aug. Sept. p - 59 42 172 199 275 257 311 250 274 476 366 196 150 94 88 132 86 82 4.87 4.99 4.50 4.03 3.94 3.97 3.78 3.88 4.00 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 5.15 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 p p p p 287 316 308 185 79 70 106 74 4.03 3.98 4.00 4.00 4.33 4.33 4.46 4.55 5.11 5.11 5.16 5.22 5.83** 5.98 5.82 5.89** 3.80 3.80 3.82 3.83 Second Half 1966 First Half 1967 -283 -338 153 672 763 222 5.06 5.39 4.38 Averi es 4.85 4.77 5.12 4.87 4.09 4.70 5.41 5.74 5.45 3.67 3.83 3.56 245 280 290 110 123 70 4.00 3.85 3.91 3.66 4.17 4.40 5.63 5.83 5.91** 3.68 3.82 3.81 1967--Sept. 6 13 20 27 Year 1966 Recent variations in growth Mar. 29-June 28 Jun. 28-Aug. 16 Aug. 16-Sept.27 I/ 2/ 3/ -ip - 4.83 5.05 5.15 +475 +325 +555 + 92 + 96 + 95 +307 +282 + 65 +359 +218 +415 + 49 8 +164 +223 +261 +154 3.3 3.3 3.0 2.1 1.2 2.0 3.2 3.7 2.0 + + + + + + - 0.1 1.2 1.6 0.3 1.6 1.7 1.7 1.2 0.1 + + + + + + + + + 2.2 2.6 2.6 2.0 1.9 2.5 2.2 2.5 1.7 + + + Annual rates + 0.8* + 1.2* - 1.3* - 2.3* +15.0 +10.7 + + + + + + + + + 2.2 0.2 0.8 0.1 + + + 0.4 0.3 1.9 1.1 + + + + 0.3 0.2 0.3 0.1 of increase 3/ + 3.7* + 2.2 + 0.3* - 0.2 +12.1 + 6.8 +18.8 +19.4 + 6.5 + 6.9 +11.8 - 1.0 Includes issues carrying 5-year and 10-year call protection; ** issues carry a 5-year call protection. Time deposits adjusted at all commercial banks. Base is change for month preceding specified period or in case of weekly periods, the first week shown. Changes have been adjusted for redefinition of time deposits effective June 9, 1966. Preliminary. September 29, 1967. + 8.8* + 6.5* +17.3 +14.3 +18.4 + 9.2 CONFIDENTIAL (FR) -2- September 29, 1967. auctioned October 3 and paid for on October 9, with 75 per cent tax and loan credit. The Treasury also announced another full 13 week cycle of $100 million cash additions to the 3-month bill auctions. In anticipation of a financing announcement, the 3-month Treasury bill rose by 20 basis points in a week to a peak of 4.60 per cent on September 22, but subsequently dropped back to around 4.40 per cent as the market supply of such bills became limited in a period when the System was meeting sizable reserve needs. But the 6-month and 1- year bills have stayed closer to their late September peaks and were most recently quoted at 5.02 and 5.16 per cent respectively. Rates on other short-term instruments, such as Federal Agencies and bankers acceptances, have also advanced somewhat during recent weeks. The Federal funds rate fluctuated in a 3-7/8 - 4-1/8 per cent range during the past three weeks and new dealer loan rates in New York in a 4-1/8 - 4-3/8 per cent range. For Federal funds, this has been the range of fluctuation generally prevailing since May, along with member bank borrowings most commonly in a $50 - $100 million range and free reserves generally in a $175 - $325 million range. During the three weeks ending September 27, which included the September dividend and tax period, the Federal funds rate has averaged just about 4 per cent, a tick higher than in previous summer months. Member bank borrowings have averaged $83 million and free reserves $270 million, little different from levels prevailing during summer, but the basic reserve deficit, and hence demands for money market funds, CONFIDENTIAL(FR) September 29, 1967. -3- of major New York banks bulged around the mid-September dividend and tax weeks. Relative to the seasonal movements in other reserve factors, the System's open market operations were a minor factor in the market until the last 10 days of September. In meeting the reserve needs that developed in this recent period, the System purchased around $725 million of Treasury bills, and also bought $140 million of coupon issues. These operations and other factors affecting reserves during the month led to an expansion in total reserves of 7½ per cent, at a seasonally adjusted annual rate, and required reserves at around a 6 per cent rate. The required reserve growth was well below that of the previous two months, partly because bank credit expansion in September was sustained mainly by time deposit growth. Prospective developments It would appear that bank credit in October under the influence of the current Treasury financing is likely to expand somewhat faster than in September--in the area of 10 - 13 per cent--if money market conditions remain within recent ranges. These market conditions are likely to be consistent with a 3-month Treasury bill rate moving up in a 4.40 - 4.70 per cent range as the favorably dated December bills move cut of the 3-month maturity slot. The bill rate was only affected to a very minor extent by the recent increase in the Canadian discount rate; however, any further significant tightening of money market conditions abroad affecting Euro-dollar rates would tend to exert pressure on our bill rates. CONFIDENTIAL (FR) -4- September 29, 1967. The rate of bank credit expansion projected for October is about the same as that experienced in the first half of 1967, and below the high July-August rates. It in large part reflects $5 billion of Treasury net cash borrowing during the month--including the tax bill financing noted earlier and cash additions to the regular weekly and monthly bill auctions. About half of the bank credit expansion, on a daily average basis, will probably take the form of additions to U.S. Government demand deposits. Banks will sell off part of the tax bills they acquire, but such sales are likely to be at a relatively slow pace so long as loan demand pressures remain moderate. Under such conditions, private demand deposits and the money supply may be expected to show a small increase in October. Time and savings deposits in October are expected to expand in an 11 - 13 per cent range, slightly faster than in September, but still slower than in earlier months of the year. Net inflows of con- sumer time and savings deposits are likely to continue at around the recent somewhat reduced pace, given continued competition from market rates. Banks are likely to make some efforts to replace September CD run-offs in October, but the net increase in CD's outstanding in the month is likely to be moderate in view of the uncertainties about the strength of loan demand and competition from new tax bills, so long as there is continued availability of Euro-dollar funds. Banks will probably find it necessary to stress relatively shorter CD maturities in order to attract funds, given the existing structure of rates in the bill market. -5- CONFIDENTIAL(FR) September 29, 1967. Because Government demand deposits are projected to be a principal source of funds for bank credit expansion, required reserves in October may expandata 15 - 17 per cent rate, a much more rapid growth than in September, when demand deposits were only a minor source of bank credit growth. Total and nonborrowed reserves would be expected to grow at similar rates, assuming borrowings do not edge up from current levels, since banks have little scope to economize on excess reserves. If the Committee should favor a move toward somewhat firmer money market conditions, it might contemplate operations leading to an increase in member bank borrowings from current levels to a $100 $150 million range and a rise in the Federal funds rate to trading more frequently at 4-1/8 per cent. The psychological and other effects of such a policy shift are difficult to specify in the present environment, dominated as it is by a number of fiscal uncertainties. The 3-month bill rate would be more certain to move towards the upper end of the previously specified range and would likely break through to around 4-3/4 per cent. The equilibrium bill rate would depend in large measure, however, on how strong an effort banks would make to secure CD's by raising their offering rates while it was still feasible to do sc. With such an effort, a temporary quickening of bank credit growth could develop, with a further impetus if banks also become aggressiv in the Euro-dollar market. Intermediate- and term long market yields would also tend to rise further, with the extent cf more CONFIDENTIAL (FR) September 29, 1967. increase depending in part on how apprehensive market participants become about the future mix of fiscal and monetary policies, including discount rate action, and about prospects for disintermediation. The current Treasury bill financing and the Treasury's midNovember refunding to be announced in the latter part of October would pose some problems of timing if the Committee calls for a move toward less ease, even if the change in conditions sought is of the modest dimensions suggested above. The initiation of such a move would need to be timed to avoid undermining either bank or dealer underwriting support in the current large tax bill issue and thus would depend upon market conditions surrounding the financing--with the auction date October 3 and the payment date October 9. And to avoid complicating the Treasury's problems in designing and pricing the mid-November refunding, any such move would best be substantially completed a few days before the announcement date around October 25. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess reserves Period Member banks borrowin2s Free reserves resevesborowigs As revised to date As expected at conclusion of each week's open market opeations * Monthly (reserves weeks ending in): 1966--September October November December 375 341 370 333 765 766 605 529 -390 -425 -235 -196 1967--January February March April May June July August September p 417 408 368 349 369 345 449 336 356 476 366 196 150 94 88 132 86 82 As first published each week - 59 42 172 199 275 257 317 250 274 .1 Weekly: 1967--June 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 26 462 643 236 453 353 69 51 54 109 574 185 399 152 597 195 403 168 604 214 417 Aug. 2 9 16 23 30 295 371 382 473 260 116 91 129 47 46 179 280 253 426 214 206 324 258 422 182 188 319 269 438 202 Sept. 6 13 20 27 366 386 414 259 79 70 106 74 287 316 308 185 288 275 336 219 29 185 217 p - Preliminary 350 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 gr eg a t e s Required reserves onbrAgainst TotalSNonborroed Demandit Reserve Total Reserves Reserves Deposits Monetar y Var iab le s Total Mbr Time Money Supply Deposits Private Bank Deposits (comm. Total Demand (credit) I/2/ -- - banks)- / 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 - 2.8 -- - 4.5 - 0.9 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 +13.1 + 7.7 +26.0 +17.4 +29.4 + 4.7 + 4.9 + 4.9 +15.2 +14.2 + 3.2 +14.4 +12.0 +15.3 + 8.1 - 1.2 + 4.8 +16.0 +16.0 + 6.3 +14.0 +11.6 + 9.8 + 5.0 - 2.1 - 2.8 +16.1 +15.1 + 3.7 +16.1 +15.9 +14.3 + 9.9 + 5.6 + 8.8 +15.2 +16.4 + 9.4 +16.5 +19.3 +19.0 +14.4 +13.5 +17.5 +15.2 +17.1 +11.4 - 0.7 + 8.5 +11.2 - 2.8 +12.5 +11.7 +11.6 + 8.1 - 0.7 - 2.7 + 9.1 +12.7 - 5.4 +15.3 +13.3 +14.0 +10.4 - 2.6 1967--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. p 1/ 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 BILLIONS OF DOLLARS, SEASONALLY ADJUSTED 25.0 24.5 24.0 23.5 - TOTAL RESERVES-- - 23.0 , " RESERVES SREQUIRED 22.5 RESERVES NONBORROWED Se 22.0 - NET BORROWED RESERVES 21.5 BILLIONS OF DOLLARS 1.0 MEMBER .5 BANK BORROWINGS - EXCESS M J 1966 ------ RESERVES S D M J 1967 S D Chart 2 MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF DOLLARS 286 I I TOTAL MEMBER BANK DEPOSITS (CREDIT PROXY) 282 SEAS ADJ WEEKLY AVERAGE OF DAILY FIGURES 278 274 270 266 262 258 254 250 246 242 6. LIABILITIES TO OVERSEAS BRANCHES (WEEKLY REPORTING BANKSJ NOT SEAS ADJ, WEDNESDAYS 4 2 I 0 S 1966 1967 | Chart 3 MONEY SUPPLY AND BANK SEASONALLY ADJUSTED WEEKLY AVERAGES OF DEPOSITS DAILY FIGURES I BILLIONS OF DOLLARS 180 190 1 175 185 170 180 165 175 160 170 165 TIME DEPOSITS (All Commercial ADJUSTED Banks) 160 155 150 145 25 NEGOTIABLE CD'S (Unadjusted) 1 20 15 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 BILLIONS OF DOLLARS MONEY SUPPLY COMPONENTS: CURRENCY OUTSIDE BANKS 140 DEMAND 135 DEPOSITS 1i n 125 120 15 U.S. GOVT. DEMAND DEPOSITS (Member Banks) 10 5 0 II I I 1966 I I I I I I I 1967 I I I | Table B-1 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 Federal Reserve Period credit (excl. float) 1/ Currency Gold k stock outside banks = Change = Bank use of reserves Technical in Required factors total reserves reserves 3/ net 2/ ACTUAL Year: Year: '965 (12/30/64 - 12/29/65) ,966 (12/29/65 - 12/28/66) +4,035 +3,149 -1,602 - 627 -2,143 -2,243 + + Year-to-date: (12/29/65 - 9/28/66) (12/28/66 - 9/27/67) +1,660 +1,984 - 529 153 - 385 80 - 692 -1,705 + + - 300 263 + - 1 14 + + 107 255 + - 203 273 798 805 Excess es reserves +1,188 +1,111 - 99 26 53 45 + + 449 223 - 396 178 + - 10 298 - 81 85 + - 91 213 +1,089 +1,085 Weekly: 1967--August September 23 30 6 p + 475 - 36 - 524 + 552 + 469 + 363 + 106 13 20 p p - 501 119 - i + 64 245 + + 648 156 + + 82 281 + + 62 253 + + 20 28 27 p + 446 - 1 + 272 - 815 - 97 + 58 - 155 4 11 18 25 + + + - 330 335 70 370 ----- + 50 285 120 170 - 205 + + 370 200 + + + 75 50 320 + + + 75 50 320 1 8 15 + + + 235 250 200 ---- + - 20 220 350 + 380 100 95 - 125 70 55 - 125 70 55 -- PROJECTED/ 1967--October November 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. 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 required reserves rese s Period Supporting private deposits Supporting U. S. Gov't. demand demand deposits Total Other than seasonal hanes Seasonal changes Total Demand Time seasonal changes Demand Time ACTUAL aar: 1965 (12/30/64 - +1,188 - 89 +1,277 + 115 - 4 + 499 +1,111 - 87 +1,194 - 14 - 4 - 5 + + 449 223 + + 36 217 + + 413 6 - 980 836 + + 53 54 + + 156 782 - 81 85 + - 81 165 + 162 80 + 191 58 - 5 11 + - 41 18 + + 17 34 + + + + 363 62 253 58 + + + 130 123 191 311 + + + - 233 185 62 253 + + + - 103 219 367 425 - 5 79 41 273 163 + + + 17 7 7 3 4 11 18 25 + + + 75 50 320 -- + + 75 40 145 40 + + + - 150 90 175 40 + + + 15 60 45 60 + + + + 15 20 20 15 1 - 125 - 245 + 120 + 20 85 90 4 + 15 35 + + 20 20 1966 (12/29/65 12/29/65) - 12/28/66) ear-to-date: (12/29/65 - 9/28/66) (12/28/66 - 9/27/67) Jeekly: 1967--Aug. Sept. 23 30 6 13 20 27 p p p p + 25 6 + + 115 15 115 + + 5 5 5 5 + + + - + 105 - 5 + 45 60 - 5 15 -- + 677 +1,221 +1,184 + 6 2/ PROJECTED 1967--0ct. Nov. 8 15 - 70 55 - 1/ Reflects reserve requirements changes in July and September 1966. 2/ Reflects reserve requirements changes in March 1967. p - Preliminary. -- -+ - 45 30 1/ Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Technical factors (net) Period Treasury operations Float Foreign deposits and gold loans (Sign indicates effect on reserves) ACTUAL Year: 798 805 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) Year-to-date: (12/29/65 - 9/28/66) (12/28/66 - 9/27/67) Weekly: 1967--Aug. Sept. - + + 294 673 692 -. 119 424 + + + + Nov. 4 11 18 25 1 8 15 - - 13 + 14 247 324 - 55 40 44 14 + 150 + 15 7 - - 12 + 151 560 120 134 210 258 598 98 12 399 520 + + 7 + - 815 3 I PROJECTED 1967--0ct. 30 + + 552 648 156 - 77 - 516 273 6 13 20 27 + 64 -1,281 203 - 171 - 7 - 34 -1,705 23 30 - + - 370 200 150 40 220 200 380 100 95 380 100 80 205 Table B-4 SOURCE OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions of dollars, based on weekly averages of daily figures) Total Federal Reserve credit (Excl. float) Period U.S. Government securities Totals Other Repurchase ___agreements I holdings ear: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +4,035 +3,149 +3,916 +3,069 +3,145 +2,158 +916 +474 +437 Year-to-date: (12/29/65 - 9/28/66) (12/28/66 - 9/27/67) +1,660 +1,984 +1,641 +2,531 +1,423 +2,357 +439 +832 -221 -658 2 9 16 23 30 181 122 226 263 118 98 217 210 255 118 29 200 100 255 6 13 20 27 475 501 119 446 438 480 152 397 299 393 152 393 Federal Agency Securities Weekly: 1967--Aug. Sept. ______________________________________ 300 - - - -145 + 26 - 26 + - 2 2 + - 6 6 +127 - 17 -110 + 52 + - + 87 4 4 -. Bankers acceptances Member banks borrowings a b + 77 + 52 + 42 + 2 - 85 - 47 +104 -474 Chart 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 Total s reserves Nonborrowed Nonborrowed reserves Total Required reserves Against private deposits Dmn T 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. Apr. May June Jul. Aug. Sept. p 22,808 23,026 23,441 23,490 23,482 23,646 23,869 24.130 24,284 22,360 22,685 23,240 23,332 23,428 23,523 23,830 24,112 24,177 22,442 22,666 22,955 23,110 23,086 23,178 23,488 23,802 23,927 21,803 22,044 22,297 22,293 22,559 22,890 23,053 23,270 23,300 16,328 16,478 16,647 16,578 16,786 17,024 17,119 17,241 17,209 p - Preliminary. 1/ effective June 9, 1966. Reserves have been adjusted for redefinition of time deposits 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 Monthly _(credit) 2/ Private U.S. Gov't. demand deposits 3/ deposits Timedemand deposits2 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. 238.0 239.0 239.8 242.2 243.9 244.8 246.7 246.5 246.4 245.5 244.8 245.2 121.7 122.0 123.0 124.8 126.1 127.5 128.7 129.7 130.1 129.9 129.3 130.3 111.7 112.0 112.6 113.3 113.0 113.3 112.6 112.4 112.4 111.6 111.6 111.7 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. 21'. 251.8 254.8 256.9 258.1 260.0 263.3 266.9 269.0 132.2 134.4 136.5 138.0 139.4 141.7 143.3 145.6 147.1 111.4 112.4 113.6 113.1 114.5 116.1 116.8 117.6 117.4 4.9 5.0 4.8 5.8 4.1 2.2 3.2 3.7 4.4 1/ 2/ 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. 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) Total member Week ending: Time Private bank deposits deposits demand (credit) 1/ deposits 3 / 2/_ 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 3 10 17 24 31 257.7 258.0 258.1 257.9 258.4 138.5 138.8 139.3 140.3 113.1 113.3 114.9 114.9 115.4 6.1 5.9 3.9 3.2 2.7 June 7 14 21 28 259.3 260.2 261.2 259.9 140.9 141.6 141.8 142.1 115.9 116.1 116.2 116.2 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 6 13 20 27 269.2 269.L 268.7 268.8 146.9 147.0 147.1 147.2 118.3 118.1 116.1 117.2 4.0 4.3 5.5 4.4 1967--Apr. May Sept. 139.8 n - Preliminary. 1/ Includes all deposits subject to reserve requirements--i.e., the total of time, private demand, and U.S. Government demand deposits. Movements in this aggregate correspond closely with movements in total member bank credit. 2/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1967. 3/ 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) Private Monthly Money Supply Demand Currency 1/ Deposits/ 1965--Jul. Time Deposits Time Deposits Adjusted 162.4 35.3 127.2 137.9 Aug. Sept. Oct. Nov. Dec. 163.2 164.0 165.2 165.7 166.8 35.5 35.7 36.0 36.1 36.3 127.8 128.4 129.3 129.6 130.5 139.8 141.6 143.8 145.5 146.9 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 170.3 171.5 173.1 172.7 174.5 176.2 177.9 179.1 179.0 38.5 38.7 38.9 39.1 39.2 39.3 39.5 39.6 39.7 131.8 132.8 134.2 133.6 135.3 136.8 138.4 139.6 139.3 162.0 164.6 167.2 169.2 171.1 173.6 175.8 178.3 180.0 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 weekly averages of daily figures) Week Ending Money Supply Currency I/ I 1967--Apr. Private Demand Deposits 2/ Time Deposits adj 3 adjusted 173.4 173.1 172.6 172.1 39.1 39.1 39.1 39.1 134.3 134.0 133.5 133.0 168.3 169.0 169.5 169.6 May 3 10 17 24 31 172.8 173.0 174.7 174.8 175.6 39.1 39.1 39.1 39.2 39.3 133.7 133.9 135.6 135.6 136.3 169.9 170.4 171.0 171.5 172.2 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 19 177.7 177.8 39.4 39.5 39.4 39.4 138.2 138.6 138.3 138.4 174.6 175.4 175.8 176.1 138.9 139.3 139.7 139.5 139.3 176.8 177.8 178.2 178.5 179.z 139.8 140.0 138.1 139.3 179.5 179.7 180.0 180.1 26 9 Sept. 178.3 178.8 16 23 30 Aug. 179.2 179.1 179.1 39.4 39.6 39.6 39.6 39.6 6 13 20 27 179.5 179.8 177.9 179.0 39.7 39.8 39.7 39.7 2 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 of Federal Reserve Banks. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary.
@FedFRASER