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Content last modified 6/05/2009.

CONFIDENTIAL (FR)
MONEY MARKET AND RESERVE RELATIONSHIPS

Recent developments
(1) Since the last meeting of the Committee, yields on
money and short-term credit market instruments, and movements in
reserve and deposit aggregates, have generally been in line with
staff projections.

The bank credit proxy rose by a 9 per cent annual

rate on average in September (10 per cent after including Euro-dollar
borrowings), while the 3-month bill rate fluctuated in about a 5.10-6.30 per cent range.

After reaching a peak shortly before mid-month,

the bill rate declined to the bottom of the range as the System returned
to the buying side of the market and seasonal pressures associated with
the tax date passed.

Most recently, the 3-month bill has been trading

around 5.20 per cent, affected in part by the fact that such bills
now carry the relatively less popular January dates.
(2) Other short-term rates have declined slightly since the
last meeting of the Committee, while long-term rates have fluctuated
in a relatively narrow range.

The reduction in prime loan rates--with

most banks reducing the rate by only 1/4 point to 6-1/4 per cent--had
little effect on market rates.
pressure

In the past few days some upward

on market interest rates has developed, as market sentiment

about the economic outlook shifted somewhat and as dealers became
more eager to reduce security inventories.

FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE
(lMonthlv
Money
Free

averages and, where available, weekly averages of daily figures)
arket Indicators
Bond Yields
Flow of Reserves. Bank Credit and Money
Bank
Total
Corporate Munici- NonBorrow- Federal 3-month

ings
serves
(In millions
of dollars)

Period

Funds
Rate

Treasury
Bill

U.S.
Gov't.
(20 y.)

New
pal
Issues
(Aaa)
(Aaa)I/

252
212
225
143

82
141
124
185

3.99
3.87
4.14
4.49

4.42
4.55
4.72
4.96

5.16
5.36
5.66
5.59

5.85**
6.08**
6.50
6.51

3.81
3.88
3.99
4.15

+135
+299
+122
-294

142
21
-312
-341
-374
-386
-192
-240
-160

275
368
649
689
728
727
523
577
492

4.60
4.68
5.02
5.74
6.10
6.09
6.03
6.03
5.76

5.00
4.98
5.17
5.38
5.66
5.52
5.31
5.23
5.19

5.39
5.38
5.59
5.46
5.55
5.40
5.29
5.22
5.28

6.22**
6.25**
6.57**
6.50**
6.64
6.65
6.50**
6.16
6.27

4.06
4.01
4.28
4.13
4.28
4.26
4.12
4.00
4.23

+345
+208
-266
-197
+ 46
+137
+304
+493
+ 29

-182
- 96
- 58
-303

454
634
405
475

5.84
5.78
5.65
5.72

5.19
5.26
5.22
5.15

5.23
5.29
5.28
5.27

6.40
6.33
6.24
6.26

-191

540

5.90

5.28

5.31

Year 1967
Second Half 1967
First Half 1968

195
238
-201

173
123
567

4.19
4.02
5.37

Recent variations
in growth
Nov. 29-Feb. 28
Feb. 28-Jun. 12
2
Jun. 12-Oct.

106
-360
-211

276
695
556

4.59
5.66
5.97

4.90
5.43
5.23

'"67--Sept.
Oct.
Nov.
Dec.
1968--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. p
Sept. p
1968--Sept.

Oct.

1/
2/
3/
p -

4
11
18
25

p
p
p
p

2 p

D
sits
Credit Supy
Proxy
2/
(In billions of dollars)
lars)I
(Seasonally Adjusted)
+ 0.2
+ 2.2
+159
+ 2.3
+ 2.4
+ 1.1
+ 1.2
+335
+154
+ 2.1
+ 0.8
+ 1.4
-122
+ 0.2
+ 0.3
+ 1.5

Reborrowed
Reserves serves
(I
dll
(If
dol

+
+
+
+
+
+
+
+

1.5
2.3
1.0
1.0
0.4
1.5
2.1
5.0
2.1

+
+
+
+
+
+
+
+
-

1.0
0.4
0.7
0.9
1.8
1.3
2.0
0.8
1.0

+
+
+
+
+
+
+
+
+

0.6
1.1
1.5
0.4
0.5
0.6
2.2
3.4
2.9

4.25
4.25
4.21
4.20

+
+
+

0.3
0.3
0.9
1.0

+
-

0.1
0.1
1.5
0.1

+
+
+
+

0.6
0.6
1.1
0.5

6.31

4.14

+ 1.8

Averages
5.01
4.29
5.31
4.51
5.46
5.29

5.77
6.10
6.47

3.74
3.91
4.16

5.46
5.51
5.28

6.30
6.58
6.39

4.08
4.23
4.12

+347
+265
+ 47
-189
+ 88
+105
+107
+508
- 36

+ 1.0

Annual rates of increase
+
+11.9
+ 9.9
+11.5
+
+10.6
+ 8.7
+ 7.2
+
+ 4.0
+ 5.3
+ 2.2

+ 9.1
- 1.1
+14.4

3/
6.4
6.0
6.6

+16.1
+12.6
+ 5.0

+ 4.0
+ 6.6
+ 5.6

+ 6.1
+ 4.5
+17.3

Includes issues carrying 5-year and 10-year call protection, ** - issues carry a 10-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.
Preliminary. n.a. Not available.

October 4, 1968.

+ 0.7

-2Money market conditions since the last meeting of the

(3)

Committee have been influenced by changes in reserve distribution,
partly related to the emergence and subsidence of pressures around the
tax date; by banks' initial adaptations to the new reserve settlement
regulations; and by a decline in Euro-dollar borrowings in the latter
part of September.

The Federal funds rate has averaged near 5-3/4 per

cent although fluctuating fairly widely around this level, with most
trading at 6 per cent during the past statement week.

Rates on new

loans to dealers posted by major money market banks have fluctuated
around 6-1/4 per cent, and have been relatively more on the high side
in recent days.
Member bank borrowings averaged around $475 million over

(4)

the past three statement weeks, as compared with $520 million in the
preceding four.

At the same time, excess reserves in the past three

weeks declined relative to the preceding four weeks to an average
level of $290 million, as banks adapted to the new reserve provisions.
(5)

With banks economizing on excess reserves and with

reserves released by a shift in the deposit mix from demand to time
deposits, total reserves of banks declined slightly, on average, in
September.

Total demand deposits at banks declined last month as a

small rise in U.S.

Government deposits was more than offset by a

marked decline in private demand deposits.

The money supply fell by

about 6 per cent, at an annual rate, on average.

On a weekly basis,

the last substantial increase in the money supply occurred in late
June and the early days of July, and related partly to the large cash

-3redemption of June tax bills.

Since that time, the money supply has

fluctuated in a narrow band and shown virtually no change on balance.
(6)

Time deposits in September grew at an 18 per cent annual

rate, on average, a slightly lower rate than August.

The decline in

outstanding bank CD's in September was less than seasonal, even though
banks reduced CD offering rates on most maturities.

Other time and

savings deposits continued to increase at around their fairly rapid
August pace.
(7)

Comparative average annual rates of change for the major

reserves and deposit aggregates are shown below for several recent periods.
'67May
Hov. '67

Dec. '67June '68

July '68
Sept. '68

Sept. '68

Total reserves

9.8

3.7

9.0

- 1.6

Nonborrowed reserves

9.9

-0.1

13.2

1.3

Proxy

11.5

3.7

13.2

8.8

Proxy plus Euro-dollars

12.3

4.7

14.3

10.2

8.4

5.8

3.8

- 6.3

14.2

5.8

18.1

18.0

9.1

6.2

Bank credit, as measured by:

Money supply
Time and savings deposits
Savings accounts at
thrift institutions

NOTE:

Dates are inclusive.

p--preliminary
1/ July and August only.

5.61/

n.a.

Prospective developments
(8)

Assuming a policy which permits member bank borrowings

to remain in a $400 - $600 million range, the Federal funds rate in the
coming three weeks is likely to center around 5-7/8 per cent.

Any

significant reduction in the continued exceptionally deep basic reserve
deficit of major banks--either because Euro-dollars become more available
or simply because banks become less inclined to borrow short--would
tend to ease conditions in the funds market.

Working in the other

direction would be increased financing demands associated with the
expected $3.5 billion Treasury tax bill financing, probably to be paid
for in the latter half of October.
(9)

The 3-month bill rate over the coming period may fluctuate

in a 5.10--5.40 per cent range.

The System's own operations are not

expected to be a significant net influence on the market, in contrast to
recent weeks when large-scale System buying helped to reduce dealer
inventories in both the bill and coupon areas.

Since the last Committee

meeting dealer positions in all maturities have declined about $900
million (from September 10 to October 1), with total bill positions

down about $500 million and coupon issues maturing in more than 5 years
down almost $300 million.
(10)

Some additional demand for bills may be forthcoming in

the near future from auto companies and from state and local governments
utilizing the proceeds of capital market issues.

However, the supply of

-5–

bills will be substantially increased by the expected treasury tax
bill financing.

To the extent that the mid-November refunding--to

be announced about a week before the next FOMC meeting--may result in
very little debt lengthening, this too could exert marginal upward
pressure in short-term market sectors.
(11)

With banks expected to underwrite the Treasury tax bill

financing, the bank credit proxy in October may rise in a 10-13 per
cent, annual rate, range.

The Treasury financing (including related

financing of dealers) accounts for about 4-1/2 percentage points of the
projected rise.

(If Euro-dollar borrowings remain at the early October

level--which is $700 million below the mid-September peak--the combination
of the proxy plus Euro-dollars would be reduced by about 1-1/2 percentage
points on average in October).
(12)

Such a continued relatively strong pace of total bank

credit expansion reflects not only Government financing but also
persisting large inflows of time and savings deposits.

Only a moderate

slowing in the pace of expansion of interest-bearing deposits is projected
for October--to a 13-16 per cent annual rate range.

However, there is

some likelihood that the extent of bank intermediation in the saving
process could diminish, as thrift institutions, whose inflows appear
to be lagging relatively, begin to compete more actively.

In addition,

bank credit growth might fall short of projections if both banks and
other active market participants adopt more pessimistic attitudes toward
future declines of interest rates, and become less willing long-term

-6-

investors and short-term borrowers,
to be on the moderate side.

Business loan growth is expected

Assuming such business loan growth and no

sharp turn-around in bank attitudes toward future interest rates, out-

standing CD's are expected to rise in a $500-$750 million range, about
twice seasonal growth.
(13)

The money supply is not expected to show any very rapid

growth in the period ahead.

In October, money growth may possibly be

in a 1-4 per cent, annual rate, range for the month on average, mainly

as a result of currency growth.
(14)

Looking ahead to November, bank credit growth is likely

to be slower than in October.

Unlike most previous Novembers, the

Treasury may not have to raise very much new cash during the month-having anticipated their November cash need in October.

Moreover, a

further slowing in time deposit expansion appears likely, as income
growth remains on the moderate side and as some funds that would otherwise go into time deposits are attracted by the newly issued tax bills
(with secondary market distribution occurring in very late October and
early November) and by coupon issues offered in the November refunding.
(15)

The combination of Treasury financing, a continued large

volume of new municipal issues, and possibly more widespread investor
uncertainties as to the future course of interest rates and inflation
all suggest the possibility of upward pressure on the interest rate
structure in the weeks ahead, probably of moderate dimensions.

Table A-1
MARGINAL RESERVE MEASURES
(Dollar amounts in millions, based on period averages of daily figures)
Excess
reserves

Period

As

Member banks
borrowines

revised

to

Free

reserves

date

1*I

Monthly (reserves
weeks ending in):
1967--September
October
November
December

334
353
349
333

82
141
124
185

252
212
225
148

1968--January
February
March
April
May
June
July
August p
September p

417
389
337
348
354
341
331
337
332

275
368
649
689
728
727
523
577
492

142
21
-312
-341
-374
-386
-192

3
10
17
24
31

182
433
274
410
358

493
412
470
639
602

-311
21
-196
-229

7

342
314
514
179
p
p
p
p

2 p

Weekly:
1968--July

Aug.

14
21
28
Sept.

Oct.

p - Preliminary

4
11
18
25

As first
published
each week

As
expected
at
conclusion
of each
week's
open
market
operations

-240

-160

-406

-419

- 93

-

-244

-284
-307
-288

-312
-315
-319

737
576
619
374

-395
-262
-105
-195

-381
-306
-109
-234

-353
-292

272
538
347
172

454
634
405
475

-182

-239
-108

-303

-323

-196
-141
-148
-347

349

540

-191

-191

-230

- 96
- 58

- 93

96

- 53

-247

TABLE A-2
AGGREGATE RESERVES AND RELATED MEASURES
Retrospective Changes, Seasonally Adjusted
(In per cent, annual rates based on monthly averages of daily figures)
Res e rve
Total
Reserves

Ag

Nonborrowed
ve

Var i ab
es
Monet a rv
Total Member
Time
Money Supply

r e g a t e s
Required reserves
Total

Against
Demand

Bank Deposits

Reserves
T
ReserveDeposits

(credit) i/
(
) 1/

Deposits
(comm.
banks)

Total
_

Private
Demand
Deposits

Annually:
1966
1967

+ 1.3
+ 9.9

+ 0.8
+11.5

+ 1.5
+10.2

- 0.2
+ 7.0

+ 3.8
+11.7

+ 8.7
+16.1

+ 2.2
+ 6.4

+ 1.2
+ 6.7

Monthly:
1967--July
Aug.
Sept.
Oct.
Nov.
Dec.

+11.8
+14.0
+ 7.7
+16.2
+ 7.4
- 5.8

+14.9
+15.2
+ 6.6
+14.5
+ 5.9
-14.0

+15.2
+13.7
+12.0
+16.4
+ 6.6
- 1.6

+10.2
+18.7
+ 5.7
+13.5
+ 8.3
-10.5

+13.4
+16.9
+10.4
+10.7
+ 9.3
+ 1.3

+15.3
+16.5
+14.9
+ 8.0
+ 9.3
+ 9.9

+12.3
+ 7.4
+ 1.3
+ 7.4
+ 5.3
+ 2.0

+14.9
+ 8.7
-+ 6.9
+ 6.8
- 0.9

1968--Jan.
Feb.
Mar.

+16.6
+12.5
+ 2.2

+16.7
+ 9.9
-12.6

+11.4
+11.4
+ 0.6

+15.3
+19.2
+ 0.1

+ 6.6
+10.0
+ 4.3

+ 3.9
+ 7.2
+ 9.7

+ 6.6
+ 2.6
+ 4.6

+ 6.8
+ 1.7
+ 2.5

-

-

-11.1

-

4.7

+ 2.6

+-5.9

+ 6.8

+ 1.7
+ 6.5
+ 9.0
+21.4
+ 8.8

+ 3.2
+ 3.8
+14.0
+21.4
+18.0

+11.7
+ 8.4
+12.8
+ 5.1
- 6.3

+12.6
+ 7.5
+14.9
+ 4.1
- 8.9

-/

Apr.

May
June
July
Aug. p
Sept. p

8.8

+ 4.1
+ 4.9
+ 5.0
+23.5
- 1.6

9.4

+ 2.2
+ 6.6
+14.5
+23.3
+ 1.3

-

6.0

- 1.9
+ 9.6
+ 7.7
+21.2
+ 4.8

+ 1.5
412.2
+ 0.1
+21.8
- 3.1

Movements in

this aggregate correspond closely with

1/

Includes all deposits subject to reserve requirements.
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
S
BILLIO
BILLIONS OF DOLLARS,

OF

DAILY FIGURES

IY

I
SEASONALLY

ADJ

26.0

25.5

-

25.0

SERVES

24.5

-REQUIRED

RESERVES

_~C~--

24.0

23.5

23.0

22.5

22.0

M

J
1967

S

D

M

J
1968

S

D

Chart 2

MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES
BILLIONS OF
2 8 6

DOLLARS

I

I

I

I

I

I

I

I

I

I

---I

T7

TOTAL MEMBER BANK DEPOSITS [CREDIT PROXY]
SEAS

ADJ

WEEKLY

I

AVERAGE OF DAILY FIGURES

1

282

278

rJ

274

270

266

262

I~

258

254

250

246

242
6

-LIABILITIES TO OVERSEAS BRANCHES
(WEEKLY REPORTING BANKS)
NOT SEAS

4

ADJ,

WEDNESDAYS
w

-~n;~C ~N.1

I

I
1966

1967

I

II
1968

Chart 3

MONEY SUPPLY AND BANK DEPOSITS
SEASONALLY ADJUSTED WEEKLY

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS
190

.LARS

I

186

196

182

192

178

188

174

184

170

180

176

172
TIME DEPOSITS ADJUSTED
(All Commercial Banks)
168

164

160

156

24

NEGOTIABLE
NOT SEAS

CD'S

ADJ, WEDNESDAYS

20

16

12

1966

1967

1968

Chart 4

DEMAND DEPOSITS AND CURRENCY
SEASONALLY ADJUSTED WEEKLY

AVERAGES OF

DAILY FIGURES

llllll
I I I I I II

BILLIO NS OF DOLLARS

I

I

I

I

48

MONEY SUPPLY COMPONENTS:
44
CURRENCY

OUTSIDE

BANKS

40

36

146

142
DEMAND

DEPOSITS

M

J

138

134

130

D

1966

1967

S

D

M

J

1968

S

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
Federal Reserve
credit (excl.
float) /

Period

Gold
stock

Year:
1966 (12/29/65 - 12/28/66)
1967 (12/28/66 - 12/27/67)

+3,149
+4,718

-

Year-to-date:
(12/28/66 - 10/4/67)
(12/27/67 - 10/2/68) 5/

+2,600
+4,090

- 153
-2,067

Weekly:
1968--Aug.

7
14
21

Oct.

Technical
factors
net 2/

-2,243
-2,305

+
-

-

-1,675
- 557

293
804

805
165

Change
in
total
reserves

+1,085
+1,522

= Bank use of reserves
Excess
Required
reserves
es
3/
r

+1,111
+1,517

501
755

-

26

+

5

-

24
93

490
135
294
385

+
+
-

89
152
79
279

+

41

+

57

-

337

-

309

-

16
28

+

337

+

137

+

200

-

436

-

101

-

335

p
p
p
p

390
454
941
283

+
50
+1,064
+ 547
- 616

+
+

80
325

-

13

+

59

+
+

93
266

-

250
116

-

59

+

59

-

191
175

2 D

,119

-

805

+

519

+

342

+

177

-165
- 280

+
+

30
220

+
+

280
290

+
+

280
290

-

28
Sept.

627
725

Currency
outside
banks

=

4
11
18
25

PROJECTED
1968--Oct.

Nov.

5/

9
16

+
+

415
350

---

23

-

350

--

-

210

+

465

-

95

30

-

135

--

+

390

-

400

-

145

6

+

265

--

-

80

-

200

-

15

-

95

145
15

p - Preliminary.
For retrospective details see 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.
Includes increase in reserve requirements of $360 million effective Jan. 11, 1968 and $190 million
effective Jan. 18, 1978.

--

Table B-2
CHANGES IN REQUIRED RESERVE COMPONENTS
Retrospective and Prospective Seasonal and Nonseasonal Changes
(Dollar amounts in millions, based on weekly averages of daily figures)
Total
Period

required

reserves
reserves
var:
66 (12/29/65 -

Supporting
U. S. Gov't.
demand
demand
deposits

Supporting private deposits
Total
Total

Seasonal changes
Demand

Time

Other than
sea
l chan
seasonal changes
Demand
Time

12/28/66)

+1,111

-

87

+1,198

-

14

-

4

-

1967 (12/28/66 - 12/27/67)

+1,517

+

261

+1,256

+

59

+

6

+1,023

+

168

+
+

501
755

+
-

119
298

+
382
+1,053

-

719
225

+
+

59
170

+1,025
+
565

+
+

17
543

7
14

+
-

57
309

-

73
122

+
-

130
187

+
-

19
15

+
+

6
13

+
-

85
217

+
+

20
32

21
28

+
-

137
101

+
-

143
8

-

6
93

-

192
67

-

13
6

+
-

154
52

+
+

45
32

4 p
11 p
18 P

+
-

13
59
59

+

227
113
113

+
+
-

214
172
172

+
+
-

159
295
295

+

6
13
13

+
+

25
117
117

+
+
-

36
7
7

25 P

+

59

-

113

+

172

+

295

-

13

-

117

+

7

2 p

+

342

+

225

+

117

+

188

-

25

-

72

+

26

9
16

+
+

280
290

+
-

485
15

+

205
305

+

240
145

+
+

7
145

+
+

28
15

23
30

-

95
145

-

105
270

+
+

10
125

+
+

50
30

6

-

15

+

40

-

55

5

+1,221

Year-to-date:
(12/28/66 (12/27/67 -

Weekly:
1968--Aug.

Sept.

Oct.

10/4/67)
10/2/68)

2/

PROJECTED
1968--Oct.

Nov.

Reflects reserve requirement changes in July, September 1966 and March 1967.
Includes increase in reserve requirements of $360 million effective January 11,
effective January 18, 1968.

1/
2/
p

--

- Preliminary.

---

+
+

5
5

-

60
75

+
+

15
15

-

5

-

65

+

15

1968 and $190 million

1/
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

)________

ACTUAL
+
-

805
165

+
-

673
85

+
-

Year-to-date:
(12/28/66 - 10/4/67)
(12/27/67 - 10/2/68)

-1,675
- 557

+

357
79

7
14
21

+
+
-

89
152
79

+
+
-

28

-

279

4

+

Sept.

loans

F. R. accounts

-

30
7

+
+

98
316

-1,282
- 610

+
+

18
5

-

54
31

198
88
64

+
+

18
9
346

+
+

51
8
12

+
-

76
65
373

-

80

-

261

+

48

+

14

64
389

50

+

150

-

22

-

15

-

63

+1,064
+ 547
- 616

+
-

801
62
659

+
+
+

205
270
17

+
+
+

6
6
5

+
+
+

52
333
21

-

805

-

330

-

413

-

22

-

40

9
16
23
30

+
+
+

30
220
465

135
70

-

100

-

5

+
+

50
350

+

10

-

400

-

400

6

-

200

-

200

11
18
25
Oct.

Other
nonmember
deposits and

(Sign indicates effect on reserves)

Year:
1966 (12/29/65 - 12/28/66)
1967 (12/28/66 - 12/27/67)

Weekly:
1968--Aug.

Foreign
deposits
and gold

2 p

PROJECTED
1968--Oct.

Nov.

' '
p - Preliminary.

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
Year:
1966 (12/29/65
1967 (12/28/66

- 12/28/66)
- 12/27/67)

Year-to-date:
(12'28/66 - 10/4/67)
(12/27/67 - 10,2/68)

U.S. Government securities
Total
Bill
Repurchase
agreements
holdings

+3,149
+4,718

+3,069
+5,009

+2,158
+4,433

+ 474
+1,153

+
-

437
577

+2,600
+4,090

+3,055
+3,962

+2,759
+2,956

+ 954
+1,024

-

658
- 18

Federal
Agency
Securities
+

26
19

Bankers'

52
69

+
-

2
203

- 25
S 61

+

404
195

+
-

26
- 6

Weekly:
S 16
- 36
+
10
19
+
49

1968--July

3
10
17
24
31

+
+

122
52
220
60
226

+
+
+

274
61
284
90
214

263
27
313
14
180

Aug.

7
14
21
28

+
+
-

490
135
294
385

+
+
+
-

352
35
280
122

76
52
392
59

Sept.

4
11
18
25

+
+

390
454
941
283

+
-

312
634
731
214

241
659
698
214

+
+

889

+

Oct.

2
___________________________

+1,119

-

+1,048

+

+

=

71
12

96

+
+

- 10
- 9
- 19
- 15

13
- I
10
- 3

-

2

-

1
1

+

5

13
13
63

+

1

Member banks
borrowings

Chart Reference Table C-1
TOTAL, NONBORROWED AND REQUIRED RESERVES

Seasonally Adjusted
(Dollar amounts in millions, based on monthly averages of daily figures)

Period

Total
S reserves

Nonborrowed -Required
reserves
Total

reserves
Against private deposits

S___Total

IDemand

1966--Jan.
Feb.
Mar.
Apr.
May
June 1/
July
Aug.
Sept.
Oct.
Nov.
Dec.

22,785
22,857
22,888
23.118
23,192
23,149
23,293
23,029
23,065
22,954
22,915
22,895

22,325
22,376
22,331
22,490
22,486
22,472
22,552
22,336
22,319
22,243
22,303
22,286

22,456
22,507
22,512
22,714
22,773
22,780
22,864
22,710
22,689
22,629
22,593
22,600

21,936
21,996
22,115
22,283
22,331
22,361
22,344
22,320
22,349
22,229
22,198
22,262

16,822
16,877
16.957
17,043
17,030
17,043
16,963
16,908
16,922
16,827
16,810
16,825

1967--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

23,217
23,471
23.869
23 910
23,952
24.105
24,342
24,627
24,786
25,121

22,875
23,134
23,383
23,529
23,531
23,660
23,960
24,259
24,452
24,810
24,947
24,914

22,298
22,559
22,785
22,779
23,071
23,387
23,578
23,776
23,850
23,995
24,122
24,157

16,774
16,959
17,101
17,015
17,244
17,472

25,153

22,770
23,107
23,668
23,775
23,874
23,982
24,279
24.586
24,721
25,020
25,142
24,848

1968--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. p
Sept. p

25,500
25,765
25,812
25,623
25,711
25,816
75,923
26,431
26.395

25,193
25,401
25,135
24,938
24,984
25,121
?5,425
25,918
25,947

25,151
25,389
25,402
25,276
25,236
25,438
25,601

24,270
24,333
24,431
24,487
24,751
24,925

26,053

25,338
25,309

17,974
18,025
18,082
18,133
18,387
18,550
18,727
18,764
18.632

25,275

26,158

25,188

17,582

17,701
17,704
17,805
17,879
17,860

p - Preliminary.
1/ Break in series due to redefinition of time deposits effective June 9, 1966,
which reduced required reserves by $34 million.

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)
U.S. Gov't.
demand
deposits

Total member
bank deposits
(credit) 1/

e
deposits

Private
demand
deposits 2/

1966--Jan.
Feb.
Mar.
Apr.
May
June3/
July
Aug.
Sept.
Oct.
Nov.
Dec.

238.0
239.0
239.8
241.9
243.9
244.4
245.8
245.6
245.5
244.4
244.0
244.6

121.8
121.9
122.8
124.8
126.2
126.6
128.1
128.8
129.2
128.6
128.3
129.4

111.7
112.1
112.6
113 2
113.1
113.2
112.6
112.3
112.4
111.7
111.6
111.7

4.5
5.0
4.4
4.0
4.6
4.6
5.1
4.5
4.0
4.0
4.1
3.5

1967--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

247.7
251.0
254.0
255.8
257.2
259.5
262.4
266.1
268.4
270.8
272.9
273.2

131.5
133.3
135.3
137.2
138.7
140.8
142.8
144.6
146.3
147.4
148.6
149.9

111.4
112.6
113.6
113.0
114.5
116.0
116.7
117.5
117.6
118.2
118.7
118.6

4.8
5.1
5.1
5.6
4.0
2.6
2.9
4.0
4.5
5.2
5.6
4.6

1968--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug n
Sept. p

274.7
277.0
278.0
276.9
277.3
278.8
280.9
285.9
288.0

149.9
150.2
151.2
151.3
151.5
151.8
153.8
156.5
159.0

119.4
119.7
120.1
120.4
122.1
123.2
124.3
124.6

5.4
7.1
6.7
5.2
3.7
3.9
2.7
4.8

123.7

5.3

Period

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.
Private demand deposits include demand deposits of individuals, partnerships and corporations and net interbank balances.
Break in series due to redefinition of time deposits effective June 9, 1966,
which reduced total member bank deposits and time deposits by $850 million.

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

Time
deposits

Private
demand

(creditlI/ .

deposits

U. S. Gov't.
demand
2/

deposits

1968--Apr.

3
10
17
24

277.4
276.6
278.6
276.7

151.6
151.5
151.4
151.0

120.3
120.1
121.7
120.0

5.5
5.0
5.5
5.7

May

1
8
15
22
29

276.3
277.2
276.7
277.3
277.7

151.5
151.5
151.6
151.6
151.4

120.0
120.9
121.3
122.7
123.3

4.8
4.8
3.7
3.1
3.1

June

5
12
19
26

278.2
278.4
277.9
280.2

151.6
151.8
151.8
151.7

123.4
122.2
122.2
123.0

3.2
4.4
3.9
5.5

July

3
10
17
24
31

278.8
278.0
280.6
282.4

152.2
152.7
153.6
154.4
155.1

125.2
123.8
124.4
123.9
124.5

1.4
1.5
2.7
4.1
4.0

7

284.6
285.0
286 4
287.0

156.0
156.8
157.4

125.0
123.9
124.9
124.7

4.2
5.2
4.7
4.9

124.7
124.1
123.5
123.4

4.1

124.1

6.4

Aug.

14

21
28
Sept

Oct.

283.6

155.3

4
11
18
25

286.7
287.0
288.9

157.9
158.3
159.1
159.6

2

290.7

160.2

287.9

I

4.6

5.4
6.0

I

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 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)

Monthly

Money Supply

Currency 1/

___________
___~______

1/
2/

3/

Private

Demand
Deposits 2/
Deposits

/

Time Deposits
Adjusted

Ajse

1966--Jan.
Feb.
Mar.
Apr.
May
June 3/
July
Aug.
Sept.
Oct.
Nov.
Dec.

167.9
168.6
169.2
170.3
170.3
170.5
169.9
170.0
170.5
170.2
170.2
170.4

36.6
36.7
36.9
37.1
37.3
37.4
37.6
37.8
37.9
38.0
38.2
38.3

131.4
131.9
132.3
133.2
133.0
133.1
132.3
132.2
132.6
132.1
132.0
132.1

147.7
148.3
149.6
151.8
153.6
154.1
155.9
156.9
157.7
157.3
156.9
158.1

1967--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

170.3
171.8
173.2
172.5
174.4
176.0
177.8
178.9
179.1
180.2
181.0
181.3

38.5
38.7
38.9
39.0
39.1
39.3
39.4
39.5
39.7
39.9
40.1
40.4

131.8
133.0
134.3
133.5
135.3
136.7
138.4
139.4
139.4
140.2
141.0
140.9

161.0
163.5
165.9
168.1
170.1
172.6
174.8
177.2
179.4
180.6
182.0
183.5

1968--Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. p
Sept. p

182.3
182.7
183.4
184.3
186.1
187.4
189.4
190.2
189.2

40.6
40.7
41.1
41.4
41.6
42.0
42.2
42.6
42.7

141.7
141.9
142.2
143.0
144.5
145.4
147.2
147.7
146.6

184.1
185.2
186.7
187.1
187.6
188.2
190.4
193.8
196.7

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 andFederal Reserve float; and (2) foreign demand balances at Federal
Reserve Banks.
Break in series due to redefinition of time deposits effective June 9, 1966, which
reduced time deposits adjusted by $1,140 million.

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

SPrivate

Currency 1/

Private
Demand

Time DepoE
2/

_____Deposits

adjusted

1968--Apr. -3
10
17
24

183.9
183.9
186.0
183.8

41.2
41.3
41.3
41.4

142.7
142.6
144.7
142.4

187.3
187.0
187.1
186.9

May

1
8
15
22
29

183.7
184.8
185.1
186.8
187.4

41.5
41.5
41.6
41.8
41.7

142.3
143.3
143.5
145.0
145.7

187.3
187.4
187.7
187.7
187.7

June

5
12
19
26

187.7
186.4
186.8
187.6

41.8
42.0
42.0
42.0

145.9
144.3
144.8
145.6

188.0
188.1
188.1
188.0

July

3
10
17
24
31

189.7
188.8
190.0
188.6
189.5

42.1
42.2
42.2
42.2
42.2

147.6
146.6
147.8
146.4
147.3

188.6
189.2
190.2
191.1
191.8

Aug.

7
14
21
28

190.4
189.7
190.4
190.2

42.2
42.5
42.6
42.7

148.1
147.1
147.8
147.5

192.4
193.3
194.0
194.6

Sept. 4
11
18 p
25 p

190.3
190.2
188.7
188.6

42.7
42.6
42.7
42.6

147.6
147.5
146.0
146.0

195.2
195.8
196.9
197.4

2 p

189.6

42.8

146.9

198.1

Oct.

1/
2/

Includes currency outside the Treasury, the Federal Reserve and the vaults of all
commercial banks.
Includes (1) demand deposits at all commercial banks, other than those due to
domestic commercial banks and the U.S. Government, less cash items in process of
and (2) foreign demand balances of Federal
collection and Federal Reserve float;
Reserve Banks.
p - Preliminary.

October 7, 1968

Correction to blue book for October 4, 1968:

Paragraph (1),

second sentence, final clause should read:

"...while

the 3-month bill rate fluctuated in about a 5.10--5.30 per cent
range."