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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) September 30, 1966 MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments Since the last meeting of the Committee, conditions in the money market have been alternately tight and relatively comfortable, with the swings importantly influenced by expectational factors. In the two auctions surrounding the mid-September tax date, the 3-month bill rate rose sharply to a peak of 5.59 per cent, partly as a result of the market's initial reaction to the changed Treasury financing picture and partly as a result of fears about a mid-September money market squeeze. The rate subsequently declined to around 5.35 per cent as demand for bills from the public strengthened markedly at the higher rate levels, as pressures associated with the tax date were quite moderate, and, in very recent days, as the System returned to the buying side of the market. The recent decline in bill rates was accompanied by a general relaxation of the taut money market conditions that had emerged around mid-September. In particular, the Federal funds rate declined during the past two statement weeks, with trading frequently at rates below 5 per cent. As a result, average dealer financing costs were reduced, and dealers became more willing to bid aggressively for bills. The recent more comfortable money market conditions could have been related to banks' having prepared for stronger loan demands and larger CD run-offs than actually materialized. Loan growth during September was partly held down by tight bank lending policies but demands 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 SB Free BorrowReserves ings Reserves Peo Ii ings eriod Period (In millions of dollars) -139 552 -132 490 - 77 418 - 22 452 1965--Sept. Oct. Nov. Dec. Federal 3-month Funds TreasRate ury Bill U.S. Gov't. (20 y) Corporate MuniciNew pal Issues (Aaa) (Aaa)/ 3.95 4.05 4.09 4.28 3.92 4.02 4.08 4.37 4.30 4.32 4.40 4.50 4.67 4.69 4.72 4.85 3.25 3.31 3.34 3.39 Total Reserves (In millions of dnllar - 73 - 26 +132 + 68 + 84 + 3 +191 +270 Bank Credit Pro Money Supply Supply bi lions f dnI11ar=.) 0.8 + 1.1 2.3 + 1.1 1.1 + 0.4 1.8 + 1.6 (In + + + + / + + + + 1.6 2.1 1.8 1.4 431 474 4.32 4.58 4.58 4.65 4.52 4.71 4.81 4.96 3.40 3.48 +165 + 58 +115 + 81 + 1.6 + 0.7 + 0.8 + 0.2 + 0.9 + 0.7 Mar. Apr. -210 -277 545 638 4.64 4.64 4.58 4.61 4.72 4.65 5.09 5.03 3.55 3.46 - 97 +205 + 45 +256 + 1.1 + 3.1 + 0.9 + 1.6 + 1.0 + 1.9 May June -339 -352 653 722 4.83 5.13 4.63 4.50 4.69 4.73 5.16 5.35 3.53 3.60 - 5 - 33* + 1 - 14* + 1.0 + 0.9* - 0.7 + 0.9 + 1.6 + 1.5* July -361 739 5.18 4.78 4.84 5.48 3.77 + 82* +171* + 2.1* - 1.4 + 1.9* Aug. p Sept. p -386 -377 740 765 5.45 5.26 4.95 5.36 4.95 4.95 5.64 5.85 3.91 3.93 -165 - 50 -264 + 75 - 0.7 - 0.1 - 0.2 + 1.0 + 1.4 + 0.2 Aug. 17 24 p 31 p -460 -362 -329 730 719 691 5.15 5.65 5.28 5.00 5.03 5.05 4.90 4.99 5.08 5.65** 5.92 5.98** 3.94 4.04 4.02 + 1.0 + 0.1 + 0.2 + 0.5 + 0.1 + 0.1 Sept. 7 p 5.91 3.99 + 0.3 -- 3.85 - 0.3 -372 749 5.91 5.12 4.96 14 p -380 888 5.68 5.31 4.92 21 p -188 771 5.20 5.49 4.99 5.69 3.89 + 1.8 - 0.1 28 p -568 650 4.40 5.47 4.94 5.80 3.88 - 1.1 -- 3.16 3.51 3.61 3.80 3.94 -- Year 1965 First half 1966 - 90 -228 467 576 4.05 4.69 3.95 4.59 Averages 4.27 4.69 4.67 5.12 Recent variations in growth May 11-July 6 July 6-Aug. 10 Aug. 10-Sept.28 -365 -410 -382 719 738 743 5.05 5.32 5.32 4.56 4.81 5.21 4.72 4.85 4.97 5.32 5.55 5.86 + 4.3 + 2.7 Annual rates of increase 3/ + 5.3 + 9.1 + 4.7 +16.0 + 4.3 + 7.1* + 4.7 +10.3* + 6.3* - 3.1 - 3.0 + 2.3 -13.4 + 8.4 From January 1966 to date, issues carry a 5-year call protection; call protection. L B the ** issues carry d a 10-year d i 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. p - Preliminary. September 30, 1966. 2/ Time Deposits Deposits - 51 -117 1966--Jan. Feb. 1/ Nonborrowed Reserves + 8.1* +12.8 + 2.9 September 30, 1966 - 2 - CONFIDENTIAL (FR) also appear to have weakened somewhat. In addition to a sharp drop in security loans, business loans by banks for the month of September are estimated to have increased by an 11 per cent annual rate, as compared a with/9 per cent rate in the June-August period. With respect to CD's, major reporting banks'net losses for the month are estimated at $1. 2 billion. Such a net loss is equivalent o one-fourth of maturities during the month, a smaller run-off than many bankers had thought likely. The better experience of banks partly reflects the almost $500 million of 33-day CD's obtained in midmonth as a result of a corporate merger. Under these circumstances, excess reserves of banks were considerably larger than usual in mid-September, when banks were also adjusting to higher reserve requirements on time deposits. With excess reserves enlarged, total reserves expanded in September at a 4 per cent annual rate, but both nonborrowed and required reserves showed declines. The bank credit proxy also showed a slight decline for the month (-.5 per cent annual rate, on the basis of preliminary figures and revised seasonal factors), but it would show about a 1.5 per cent increase when adjusted to include funds obtained from banks through their branches abroad. In the month, private demand deposits and the money supply rose 8 per cent and 7 per cent respectively. Partly reflecting sharp fluctuations in excess reserves, net borrowed reserves varied widely over the past three weeks, averaging about $380 million. Borrowings of member banks drifted down in the more CONFIDENTIAL (FR) CONFIDENTIAL (FR) - 3 - September 30, 1966 comfortable money market environment after mid-September and averaged $710 million over the past two statement weeks. Prospective developments Treasury bill rates will be influenced in the days immediately ahead by relatively low dealer bill positions. It is not clear that these positions will lead to much further rate declines, however, since lower bill rates, especially on shorter maturities will decrease incentives for switching out of CD's. Moreover, the Treasury will soon be announcing its October bill financing, which may be in the $3-3.5 billion range. All things considered, a range of fluctuation for the 3-month bill rate of 5.25-5.60 per cent seems most likely over the next four weeks. A sustained movement toward the upper end of the range is likely to depend on a strengthening of loan demands -- given current bank lending policies -and a concomitant rise in the Federal funds rate back to the neighborhood of 6 per cent. The outlook for financing needs of both business and the Federal Government suggests that banks are likely to be more pressed to make loans in the period and therefore that they will tend to increase their demand for reserve funds both through the discount window and in the Federal funds market. The availability to banks of funds from time and savings deposits is likely to be no greater in October than it was in September (when it rose by 1.5 per cent on average). In fact, taking into account the apparently slightly more favorable competitive position of nonbank savings institutions under the new structure of ceiling rates, the CONFIDENTIAL (FR) - 4 - CONFIDENTIAL (FR) September 30, 1966 competition from Treasury and other open market paper, and recent CD experience, banks' time and savings deposits might show a small decline on balance in October. In that month, we are assuming a further $1.5 billion reduction in CD's outstanding, a rate of disintermediation that is equivalent to roughly one or two percentage points on the bank credit proxy. Assuming that the existing FOMC directive language of "firm but orderly conditions in the money market" would comprehend some tightening from money market conditions of the moment but not beyond the bounds of recent experience, total and required reserves may rise by about 5 and 10 per cent annual rates respectively in October, assuming strengthened Federal and private credit demands. This reserve growth would be sufficient to accommodate a private demand deposit expansion of about 8 per cent on average during the month (and about 7 per cent for the money apply). Government deposits can also be expected to rise during the month on average as a result of the Treasury financing, but the continuing high level of Federal expenditures is expected to keep the rise to modest proportions. The bank credit proxy would, under these conditions, be projected to expand by about 5-6 per cent in October, largely reflecting the effect of the Treasury financing. This assumed pattern of developments in October would mean a money supply increase of only about 1 per cent annual rate since midyear and of about 3 per cent for the year to date. Bank credit growth, as measured by the proxy, would be about 3 per cent and 5 CONFIDENTIAL (FR) per cent over CONFIDENTIAL (FR) - 5 - September 30, 1966 those respective periods (and 4.5 per cent and 6.5 per cent respectively when funds obtained through foreign branches are included). The outlook for the coming month is consistent with a tendency not only for short-term markets to tighten but also for long-tenn rates to rise. Actual long-term rate movements, however, are likely to be dominated by such expectational factors as peace or tax prospects. In the money markets a failure of rates to tend upward may mean that banks are under less loan pressure than we currently foresee and, therefore, that banks will have less of an inclination to borrow from the System. Such a development would be consistent with a constella- tion of relatively shallow net borrowed reserves, lower money market rates, and a less than anticipated expansion in aggregate reserves. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, Excess reserves Period As based on period averages of daily figures) Member banks I borrowines revised I Free serves - date to I re U Monthly (reserves weeks ending in): As first published each week expected at conclusion of each week's open market opeations 1965--Afgust September October November December 387 413 358 341 430 549 552 490 418 452 -162 -139 -132 - 77 - 22 1966--January February March April May June July August p September p 380 357 335 361 315 370 379 354 388 431 474 545 638 653 722 739 740 765 - 51 -117 -210 -277 -339 -352 -361 -386 -377 1 8 15 22 29 436 207 465 282 459 812 547 788 691 771 -376 -340 -323 -409 -312 -364 -375 -341 -417 -350 -342 -360 -336 -394 -368 July 6 13 20 27 350 724 171 269 827 818 631 680 -477 - 94 -460 -411 -456 -155 -479 -441 -473 -133 -528 -445 Aug. 3 10 17 24 p 31 p 349 452 270 342 359 778 782 730 719 691 -429 -330 -460 -377 -332 -427 -383 -466 -442 -422 -427 -417 -487 -482 -447 377 508 584 82 749 888 771 650 -372 -380 -188 -568 -419 -410 -198 -568 -440 -439 -206 -542 Weekly: 1966--June Sept. 7 14 21 28 p - p - Preliminary p p p p Preliminry TABIE A-2 AGGREGATE RESERVES AND RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) R e s e rve Total Reserves A xg r e a a t e s Mone Required reserves Against Reserves Nonborrowed emand/ DemandTotal sre Reserves s t ag Var i ab le s 3/ Time Deposits Bank Deposits (co. (cre(comm. (credit) /Depositsbanks) Total Member Money Supply Private Total Demand Demand Total Deposits Annually: + 4.2 + 5.3 + 4.5 + 4.3 + 4.9 + 5.2 + 3.1 + 2.3 + 7.6 + 9.1 +12.8 +16.0 + 4.3 +4.7 + 4.0 +4.4 Monthly: 1965--July August September October November December + 4.8 - 0.8 - 1.4 + 9.9 + 0.2 +14.5 + 4.1 + 1.5 - 4.0 + 7.3 + 4.6 +10.5 + 4.8 - 1.8 - 2.4 + 9.7 - 2.4 +14.3 + + + + + + + + 7.3 7.0 3.9 2.2 5.4 9.4 +15.0 +18.3 +13.7 +17.8 +15.0 +11.5 + 5.2 + 4.4 + 8.1 + 8.0 + 2.9 +11.6 + 4.7 + 2.8 + 9.4 + 7.5 + 1.9 +13.0 1966--January February March April May June 2/ July 2/ + 6.1 + 4.3 + 2.4 +13.5 + 0.1 - 0.7 + 8.9 + 9.0 + 3.1 - 5.2 +11.1 - 0.3 - 1.8 + 4.4 + 6.4 + 3.1 + 2.3 +12.2 + 1.9 - 0.6 + 5.7 +11.3 + 3.8 + 4.0 +11.7 - 4.8 + 1.3 + 3.0 + 8.3 + 3.7 + 5.3 +15.6 + 4.7 + 4.5 +10.5 + 7.4 + 5.7 + 8.1 +15.3 +12.7 + 5.5 +14.8 + 5.7 + 1.4 + 7.8 +11.3 - 4.9 + 6.3 - 9.8 + 4.6 -+ 8.2 +12.7 - 7.2 + 7.2 -15.2 -13.7 - 8.8 - 7.5 -17.4 - 3.4 +10.7 - + 3.9 - 2.6 - 1.6 - 2.9 - 0.5 + 1.5 + 7.1 1964 1965 August - p September2/ 1/ 2.0 4.0 6.8 5.1 3.9 8.2 Includes all deposits subject to reserve requirements. 1.4 - 2.7 + 8.2 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. Changes in reserves have been adjusted for increases in reserve requirements in July and September. 3/ Series revised to reflect changes in seasonal factors. p - Preliminary. Chart la MEMBER BANK RESERVES SEASONALLY ADJUSTED MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 23.5 23.0 22.5 22.0 so TOTAL REQUIRED RESERVES 21.5 REQUIRED AGAINST -TOTAL PRIVATE DEPOSITS - 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 23.0 REQUIRED RESERVES - NET BORROWED RESERVES 22.5 aO-0 RESERVES " NONBORROWED I 22.0 21.5 21.0 20.5 BILLIONS OF DOLLARS 1.0 MEMBER BANK BORROWINGS .5 EXCESS RESERVES 0 I I I I I 1965 I I I I I( I 1966 Chart 2 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS BILLIONS OF DOLLARS TOTAL MEMBER (Credit BANK DEPOSITS Proxy) _/' -- 245 240 235 230 MONEY SUPPLY 170 165 - 225 -220 160 155 TIME DEPOSITS (All ADJUSTED-- Commercial Banks) 150 145 140 135 130 NEGOTIABLE CD'S (Unadiusted) - 1 20 15 10 M J 1965 S D M J S D 1966 *CHANGE IN SERIES Chart 3 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 45 MONEY SUPPLY COMPONENTS: 40 CURRENCY OUTSIDE BANKS 35 30 140 DEMAND 135 DEPOSITS r 130 ry -- 125 120 15 U.S. GOVT. DEMAND DEPOSITS (Member Banks) 10 5 0 11I I II II I J 1965 1966 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 supply of reserves Period Federal Reserve credit (excl. float) I/ Gold t Currency k outside k banks = Technical factors net 2/ Change * Bank use of reserves in Required reserves 3/ total reserves Excess reserves res ACTUAL Year: 1964 (12/25/63 - 12/23/64) +3,219 -165 1965 (12/23/64 - 12/22/65) -1,847 -365 +840 +3,926 +910 -1,578 -2,228 +845 +966 +1,136 -170 +2,178 +1,660 -1,530 -529 -429 -385 -322 -692 -101 + 53 +127 +432 -228 -379 -634 -201 +758 - 1 - 20 - 54 +122 +144 +254 +242 - 73 -772 -272 -152 +187 - 90 -224 +170 -182 + 72 + 17 -559 + 33 +212 +291 +182 +382 +851 -751 + 59 +516 +533 -616 + 41 +385 +457 -114 + 18 +131 + 76 -502 - 70 Year-to-date: (12/30/64 - 9/29/65) (12/29/65 - 9/28/66) Weekly: 1966--Aug. 17 24 p 31 p Sept. 7 14 21 28 p p p p +438 + 96 -526 -155 --- 1 -- PROJECTED 4/ Oct. 5 12 19 26 +555 +100 -515 + 35 -- 10 - 10 - 10 -350 -405 +220 +120 + 55 + 70 +360 + 50 +260 -245 + 55 +195 +260 -245 + 55 +195 Nov. 2 9 16 23 30 +445 +630 + 20 -130 +125 - + 50 -645 + 15 - 95 + 95 -450 - 65 + 50 +365 -350 + 35 - 90 + 75 +130 -140 + 35 - 90 + 75 +130 -140 10 10 10 10 10 For retrospective details, see Table B-4. For factors included, see Table B-3. For required reserves by type of deposits, see Table B-2. See 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 Period Supporting private deposits Supporting U. S. Gov't. demand deposits Total Seasonal changes Demand Time Other than seasonal changes Demand Time +1,025. +1,306 + 16 +113 +542 +529 +467 +664 ACTUAL Year: 1964 (12/25/63 - 12/23/64 1965 (12/23/64 - 12/22/65 --- +910 +1,136 -115 -170 +127 +432 +142 - 14 - 15 +446 -828 -980 + 35 + 44 +239 +607 +539 +775 3 10 17 - 40 -212 - 90 -160 + 6 -160 +120 -218 + 70 +115 - 75 -109 --- 4 + 5 -151 +161 -+ 8 + 22 24 p 31 p -224 +170 - 61 +121 -163 + 49 -162 -108 - 4 5 - 3 +154 + + 7 p 14 p + 41 +385 - 76 -199 +117 +584 +240 +316 - 9 -- -110 -101 - 4 +369 21 p +457 - 16 +473 +130 - 8 +294 + 57 28 p -114 +383 -497 -402 PROJECTED 5 1/ 12 1/ +260 + 85 +175 +135 + 5 + 30 + 5 19 26 -245 + 55 +195 -355 -150 +240 +110 +205 - 45 +110 +165 + 25 - 5 5 -- -+ 40 - 70 + + + 5 5 5 2 + 35 - 90 +125 + 85 - 10 + 45 + 5 9 16 23 30 - 90 + 75 +130 -140 - 85 + 75 +235 -220 - - 45 + 55 -105 - 20 - 10 - 15 - 5 + 5 + 45 - 45 -+ 90 + + + + 5 5 5 5 Year-to-date: (12/30/64 - 9/29/65) (12/29/65 - 9/28/66) Weekly: 1966--Aug. Sept. Oct. Nov. 5 --105 + 80 -- - 95 6 8 -- increase in percentage reserve requirements against time deposits absorb an estimated J350 million or reserves at city banks effective September 8 and $80 million at country banks effective September 15. 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 (n) Period Treasury operations Float Foreign deposits and gold loans Other nonmember deposits and F. R. accounts (Sign indicates effect on reserves) ACTUAL Year: 1964 (12/25/63 - 1/23/64) 1965 (12/23/64 - 1/22/65) -365 +845 -470 +232 - 84 - 13 + 11 - 7 +178 +651 -322 -692 - 85 -119 -986 -516 - 3 - 13 +752 - 44 + 82 Year-to-date: (12/30/64 - 9/29/65) (12/29/65 - 9/28/66) Weekly: 1966--Aug. 3 -460 - 29 -336 -177 10 +173 +203 -115 +184 - 99 17 24 31 +242 - 73 -772 + 29 + 13 - 18 +200 + 17 -766 + 5 + 5 - 11 + 8 -108 + 23 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 +235 + 95 -200 -- -300 - 40 +450 + 50 ----- - --- - 50 -185 PROJECTED Oct. 5 12 19 26 + 55 + 70 +360 + 50 Nov. 2 9 16 23 -450 - 65 + 50 +365 ----- -450 - 65 +100 +550 30 -350 -- -350 +120 + 15 +110 -- - -- 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. Total float) U. S. Government securities_ Outright holdings Bills a agreements Other M Bankers Repurchase r ember bank acceptancesborrowings Year: 1964 (12/25/63 - 12/23/64) 1965 (12/23/64 - 12/22/65) +3,219 +3,926 +3,340 +3,898 +2,086 +3,226 +1,022 +916 +232 -244 - 61 + 67 - 60 - 39 Year-to-date: (12/30/64 - 9/29/65) (12/29/65 - 9/28/66) +2,178 +1,660 +2,138 +1,641 +1,588 +1,423 +916 +439 -366 -221 9 - 85 + 49 +627 - 6 +185 -224 +393 +442 +225 - 23 -131 +267 +411 +166 + 21 - 73 - 72 + 37 - 58 26 34 33 4 46 +159 -265 +241 +851 + 5 -1,264 +228 +790 + 71 -972 +189 +706 + 61 -966 +186 + - 4 1 + 56 - 3 + 5 - 57 -105 - 10 3 10 17 24 31 +655 +141 4-572 +138 +414 -634 -201 +758 -580 -190 +784 -422 + 4 +158 +194 -158 -194 Sept. 7 14 21 28 +438 + 96 -526 +380 -155 - 32 +380 - 82 -370 - 32 +104 Weekly: 1966--June 1 8 15 22 29 July 6 13 20 27 Aug. 1 +173 - 56 - 15 1 - 2 +784 - 41 -411 45 + + + + 11 + - 9 -187 + 49 + 98 + 4 - 52 - 11 - 28 + 58 +139 -117 -121 + 41 - 41 * 2 - 97 + 80 I Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) Total Nonbo d Nonborrowed Total reerves reserves reservesTotal Period -1964--January February March April May June July August September October November December -r 1965--January February March April May June July August September October November December 1966--January February March April May June 1/ July 1/ August p 1/ September p 1/ Total I Required reserves ' ainst private deposits Demand I 19,380 15,295 19,446 15,321 19,492 15,344 15,364 19,549 19,600 15,371 19,680 15,409 19,802 15,495 19,929 15,575 20,065 15,665 20,160 15,709 20,217 15,713 20,301 15,746 20,139 20,192 21,442 21,416 20,271 20,302 20,463 20,517 20,495 20,716 20,731 20,832 20,996 20,983 21,055 21,158 21,525 21,714 21,192 21,238 21,830 21,366 21,501 21,539 21,626 21,699 21,726 21,653 21,785 21,869 22,060 21,129 21,271 21,420 21,535 21,656 21,786 21,873 21,840 21,797 21,974 21,930 22,192 20,363 20,420 20,533 20,633 20,606 20,779 20,883 20,962 21,179 21,340 21,419 21,582 15,730 15,717 15,789 15,831 15,750 15,877 15,912 15,916 16,071 16,151 16,168 16,285 22,225 22,383 22,186 22,391 22,386 22,353 22,435 22,270 22,220 22,311 22,368 22,411 22,638 22,673 22,684 22,792 22,649 22,193 21,685 21,693 21,876 22,078 22,049 22,176 22,104 22,098 22,193 16,364 16,356 16,510 16,625 16,534 16,626 20,561 20,588 20,665 20,794 20,689 20,966 21,017 21,127 21,349 21,319 21,997 21,982 22,156 22,245 22,231 22,205 22,273 22,276 22,546 22,661 22,742 22,787 23,043 23,044 23,030 23,201 22,937 23,012 20,343 20,370 20,350 20,554 20,596 20,748 20,907 20,919 21,068 21,097 16,474 16,424 16,512 p - Preliminarvy. Reserves have been adjusted for redefinition of time deposits effective June 9. Revised to reflect changes in seasonal factors. 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) (Seasonal factors revised) Monthly 1964--January February March April May June July August Total member bank deposits (credit) 1/ Time eposis Private demand deposits 2/ U.S. Gov't. demand deposits 202.8 203.8 205.1 206.0 206.6 208.7 209.3 211.3 93.5 94.4 94.9 95.8 96.8 97.7 98.6 99.6 104.4 104.6 104.7 104.9 104.9 105.2 105.8 106.3 4.9 4.8 5.4 5.3 4.9 5.7 5.0 5.4 September 213.1 100.8 106.9 5.5 October November December 214.1 216.1 216.7 101.9 103.1 104.2 107.2 107.3 107.5 5.0 5.7 5.0 1965--January February March 218.4 220.4 222.5 106.0 107.6 108.6 107.4 107.3 107.8 5.0 5.5 5.6 April 224.6 109.9 108.1 5.7 May June July August September October November December 225.8 227.7 229.1 230.4 231.1 233.5 234.5 236.4 111.1 112.2 113.8 115.5 116.9 118.7 120.2 121.2 107.5 108.4 108.6 108.6 109.7 110.2 110.4 111.2 7.2 7.1 6.7 6.3 4.6 4.5 4.0 4.0 238.0 238.7 239.8 242.9 243.8 244.8 246.9 246.2 246.1 121.8 122.1 122.8 124.8 126.2 127.0 128.8 129.8 130.0 111.7 111.6 112.7 113.5 112.9 113.5 112.5 112.1 112.7 4.5 5.0 4.3 4.7 4.8 4.3 5.6 4.3 3.4 1966--January February March April May June 3/ July 3/ August p / Sept . 3 ro. 1/ Includes all deposits subject to reserve requirements--i.e., the total Movements of time, private demand, and U.S. Government demand deposits. 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 - Preliminary. TABLE C-2a DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar* amounts in billions, based on weekly averages of daily figiures) (Seasonal factors revised) Week ending: Total member bank deposits S(credit 1/ Time deposits Private demand 2/ ____deposits U. S. Gov't. demand deposits 2 9 16 23 30 238.8 239.0 239.4 240.0 240.5 122.3 122.6 122.7 122.8 123.3 112.0 112.1 112.6 112.7 113.0 4.5 4.3 4.1 4.5 4.2 Apr. 6 13 20 27 241.5 242.6 243.3 243.6 123.8 124.4 124.8 125.3 113.1 113.5 113.8 113.3 4.6 4.6 4.6 4.9 May 4 11 18 25 243.9 244.0 244.1 243.6 125.6 126.0 126.2 126.4 113.0 113.0 112.9 112.8 5.3 5.1 5.0 4.4 June 1 15* 22* 29* 244.0 244.4 243.3 244.7 245.8 126.6 126.8 126.7 126.4 113.1 113.2 113.4 115.9 112.8 4.2 4.3 3.2 3.3 5.9 6* 13* 20* 27* 247.3 247.1 247.0 247.1 127.9 128.7 113.0 112.2 112.6 112.1 6.3 6.2 5.4 5.8 3* 10* 17* 246.1 246.4 246.5 245.0 246.8 129.2 129.4 129.9 130.1 130.3 112.1 111.2 112.3 112.1 112.2 4.8 5.7 4.3 2.8 4.4 246.9 246.3 245.7 245.5 130.2 130.1 129.8 129.8 112.5 111.9 113.8 113.1 4.3 4.3 2.2 2.6 1966--Mar. 8 Jul. Aug. 24p* 31 p* Sept. 7 p* 14p* 21p* 2 8p* 127.3 129.0 129.2 p - Preliminary. 1/ Includes all deposits subject to reserve requirements--i.e., the total of time, private demand, and U.S. Government demand deposits. Movements in this aggregate correspond closely with movements in total member bank credit. 2/ Private demand deposits include demand deposits on individuals, partnerships and corporations and net interbank balances. *- Deposits have been adjusted for redefinition of time deposits effective June 9. 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) (SERIES REVISED) Private Monthly Money Supply Currency 1/ Demand Deposits 2/ Time Deposit. 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 159.7 159.8 160.3 161.0 160.7 161.7 162.4 163.0 164.1 165.2 165.6 34.5 34.6 34.7 34.8 34.9 35.0 35.3 35.5 35.7 36.0 36.1 125.3 125.2 125.6 126.2 125.8 126.7 127.2 127.5 128.5 129.3 129.5 128.7 130.7 132.0 133.3 134.6 136.2 137.9 140.0 141.6 143.7 145.5 December 167.2 36.3 130.9 146.9 1966--January February 168.6 168.2 36.6 36.8 131.4 131.4 147.8 148.5 169.3 170.9 170.2 171.1 169.7 169.5 170.5 36.9 37.1 37.3 37.4 37.7 37.8 37.9 132.3 133.7 132.9 133.7 132.0 131.7 132.6 149.5 151.4 153.0 154.5 156.4 157.8 158.0 March April May June 3/ July 3/ Augustp 3/ September 3/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, 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) (SERIES REVISED) Week Ending Money Supply Currency 1/ e E 168.6 168.5 169.3 169.5 169.7 37.1 36.9 36.9 37.0 36.9 131.5 131.7 132.4 132.5 132.7 149.0 149.3 149.4 149.6 150.2 6 13 20 27 170.0 171.1 171.1 171.0 37.1 37.2 37.1 37.1 133.0 133.9 134.0 133.8 150.6 151.0 151.6 152.1 4 18 25 170.4 170.3 170.5 170.3 37.2 37.3 37.3 37.3 133.2 133.0 133.1 133.1 152.4 152.5 153.1 153.2 June 1 8 15 22 29 170.2 170.6 170.7 172.7 170.5 37.3 37.4 37.5 37.5 37.4 132.9 133.2 133.3 135.3 133.1 153.7 154.1 154.3* 154.4* 155.0* July 6 13 20 27 170.9 169.6 169.8 168.9 37.6 37.7 37.7 37.7 133.3 132.0 132.1 131.2 155.5* 156.1* 156.6* 157.1* Aug. 3 10 17 24 31 169.2 168.7 169.7 169.8 169.6 37.7 37.8 37.8 37.8 37.7 131.6 130.9 131.9 132.1 132.2 157.0* 157.4* 157.9* 158.0* 158.2* 7 170.3 169.9 171.7 170.6 37.8 38.0 38.0 132.5 131.9 133.8 132.8 158.1* 158.1* 158.0* 158.0* Apr. May 11 Sept. 14 21 28 2/ Time Deposits st adjusted 2 9 16 23 30 1966--Mar. 1/ Private Demand Deposits 2/ 37.9 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. p - Preliminary.
@FedFRASER