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FEDER AL RESERVE BA)I K
ST. L O U IS ,

LO U ISV ILLE

El
DIS
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• M E M P H IS

LITTLE




e

v

Volume 50

i

e

v

i

Number 10

Inflationary Pressures Continue
E:

E XCESSIVE G RO W TH of total demand for goods
and services has maintained intense upward pres­
sure on prices. The Federal budget legislation of
late June, which was designed to moderate infla­
tionary pressures, has not yet slowed appreciably the
advance of total demand. Consumer spending has
risen sharply in recent months, and growth of Gov­
ernment purchases has continued. W hile the tax sur­
charge has reduced the portion of each dollar of
income available for private spending, consumers have
evidently reduced their rate of saving, and have made
increased use of installment credit to augment their
purchasing power. In addition, monetary expansion
has remained rapid, at least until recently, suggesting
continued stimulus to private demand for goods and
services.

Demand, Production and Inventories
The rate of increase of total spending in the third
quarter showed little evidence of slowing significantly
from the rapid rate of the first half of the year.
Marked expansion of consumer demand, as evidenced
by strong retail sales, has been the major factor in
the increase. Retail sales have grown at a 15 per cent

R a tio S c a le
B illio n s o f D o ll a r s

R a tio S c a le
B illio n s o f D o ll a r s

5 0 I--------------------

50

Apr. 64

41------ ------------------------ 1
--1960

1961

1962

1963

1964

1965

1966

1967

1968

So u rce: U.S. D e p o rtm e n t of C o m m erce
P erc e nta ge s a re a n n u a l rates of chan ge between p e rio d s in dicate d. They are presented to a id in
com p aring m ost recent d evelopm ents with p a st "trend s."
la te st d a ta plotted: A u g u st preliminary

Page 2



D e m a n d a n d P ro d u ctio n
R a tio S c a le
B illio n s o f D o lla r s

R a tio S c a le

Q u arterly Total} at A n n u a l Rates
T

"

+8.9%

850

+ 2 % /> *

800

800

+ 7 .4 % ^ -“

750
+ 1 0 .2 % /

700

700

T o ta l

650

p e n d i n g |L
'+ 3 * 8 % +

+6.8% / y

).6%

600

Z ^ + 8 .1 %

550
+5.4%

] Iq lr.
L*

19 6 0

1961

UCf 12

4th q tr.
1 'qtr.
................ ,♦•)-----------------

----

450

R e a l P ro

1962

196 3

1964

196 5

1
4th tr. ™

196 6

450
196 7

1968

Source: U.S. Departm ent of C o m m e ro
Q .G N P in current d ollar*.
L2 G N P in 1958 d ollar*.
Percentages are a n n u a l rates of chan ge between p eriod s indicated.They are presented to a id in
comparing most recent d evelopm ents with p a s t ’trends."
L atest d ata plotted: 3rd quarter estimated

rate since late last year. Sales of new automobiles
have been especially rapid in recent months.
Demand for steel fell markedly following the labor
contract settlement in late July, moderating somewhat
the ebullience of overall demand. Steel users had
stockpiled steel earlier in the year in anticipation of
shortages resulting from a potential strike. W ith the
settlement, the backlog of steel fostered a reduction
of orders, and production dropped sharply. As a
result, manufacturers’ inventories relative to sales rose
from July to August. Production of final goods and
some industrial materials other than steel has been
sufficiently strong, however, to compensate in part for
the decline in steel activity. Total industrial produc­
tion has increased at a 5 per cent rate since about a
year ago.
The rate of inventory investment for all businesses,
including manufacturers, wholesalers, and retailers,
increased during the four months ending in July
(latest data available), but total inventories relative
to sales remained near normal in late summer, and
lower than in most other periods during the last two
years. Business inventories increased $3.6 billion from
March to July, compared with a $2.5 billion increase
during the previous four months. The acceleration of

In d u stria l Prod u ction
R a tio S c a le

R a tio S c a le

1957-59=100
180

1 957-59=100
180

S e a s o n a lly A djusted

170

1960

1961

1962

1963

1964

1965

1966

1967

196 8

Percentages ore a nnual rates of chan ge between periods indicated. They are p resented to a id in
com paring most recentdevelopments with pa st 'trends.'
la te s t d o ta plotted: August preliminary

inventory investment, however, was overshadowed by
the sharp advance of sales, dropping the ratio of
inventories to sales to near normal.

rate, compared with a 6 per cent rate of increase
earlier in 1967. The strong demand for qualified
workers has been reflected in greater wage increases,
which have bolstered the gains in income. Average
hourly earnings in manufacturing rose at a 4.2 per
cent annual rate during the first eight months of this
year, compared with a trend rate of 3.3 per cent from
1957 to 1967.
Although the recently enacted income tax sur­
charge has restrained growth of take-home pay, the
tax hike has not yet dampened consumer spending.
The impact of the surtax is relatively small on those
with low incomes, and others have apparently counter­
acted the surcharge to some degree by reducing the
portion of their income allocated to savings. Some of
the impact has perhaps been delayed until next spring.
Tax withholdings in 1968 are less than tax liabilities,
and next April many individuals will receive smaller
refunds or make larger tax payments.
Prices
R a tio S c a le

Employment and Income

R a tio S c a le

1957-59=100
125

1957-59=100
125

Total civilian employment has increased at a 2 per
cent annual rate since the beginning of the year. Most
entrants into the labor force have been able to find
work, and unemployment has been relatively stable,
averaging 3.6 per cent of the labor force so far this
year. Among married males, unemployment has aver­
aged 1.6 per cent.
Employment growth and wage increases have con­
tributed to rapid increases in income. From late 1967,
personal income has risen at a 10 per cent annual




A u g .'66 A p r.6 7

i_ U L
19 6 6

1967

Aos.se

i

1968

*: U .S . D e p a r t m e n t o f L a b o r
Percentages are an nu al rates o f c han ge between periods indicated. They a
com paring most recentdevelopments with p a st "tre n d s."
Latest d ata plotted: A u gu st preliminary

Inflation
The acceleration of prices, which began late in
1965, has continued through the third quarter. Up­
ward pressure on prices from vigorous demand still
prevails. Prices, as measured by the GNP deflator,
rose at a 3 per cent annual rate from late 1965 to
mid-1967 and have accelerated to over a 4 per cent
rate since mid-1967. Prices rose at a 1.6 per cent rate
from late 1957 to 1965.
Consumer prices have risen at a 3 per cent aver­
age annual rate during the last three years, com­
pared with a 1.2 per cent average rate from 1958 to
1965. These prices increased 4.3 per cent during
the last year, a rate of increase as great or greater
Page 3

than in 93 per cent of all consecutive twelve-month
periods since January 1949.
For the twelve-month period ending in August,
increases in both wholesale agricultural and industrial
commodity prices resulted in a 2.5 per cent rate of
increase in overall wholesale prices. This rate placed
the most recent twelve-month period in the 78th per­
centile of all consecutive twelve-month periods since
January 1949.
Recent inflation has adversely affected the position
of the United States in international markets. The
merchandise trade account, in which the United States
has enjoyed a strong surplus over most of the period
since World W ar II, showed a surplus of only $40
million in the second quarter. Preliminary data have
indicated a relatively small deficit in the third
quarter. The decline from a surplus of $4.4 billion
in the second quarter of 1967 was caused mainly by
a sharp increase in imports, as accelerating prices in
this country diminished the attractiveness of domestic
products relative to foreign goods. In addition, more
rapid rises in income than in the nation’s ability to
expand production have caused consumers and busi­
nesses to direct more of their spending to foreign
goods.

Federal Budget Developments
The Federal budget deficit on a high-employment
basis declined to a level of about $3 billion in the
third quarter, compared with an $11 billion deficit
a year earlier and an average surplus of $6 billion in
the period from 1957 to 1967. This change in the
deficit represents a considerable move toward fiscal
restraint.


Page 4


The third quarter decline in the deficit reflected
in large part the fiscal legislation of June 28. Receipts
on a high-employment basis rose substantially from
the second to the third quarter, representing primarily
the 10 per cent income tax surcharge on individuals
and corporations.
The expenditure control portion of the June fiscal
action had little apparent effect on Federal expendi­
tures in the third quarter. Defense spending rose at
an 8 per cent annual rate from the second to the
third quarter, and was up 10 per cent from a year
ago. Other Federal spending, which includes non­
defense purchases of goods and services, transfer pay­
ments, grants-in-aid, and interest on the public debt,
also increased at an 8 per cent annual rate from the
second to the third quarter and was up 13 per cent
from a year earlier. Since the momentum of Govern­
ment spending is difficult to slow, the attempts to
control expenditures may not be felt significantly
until early 1969. However, such controls will prob­
ably have less of a restraining influence than first
thought, since spending in the areas exempt from the
legislated ceilings continues to rise.
Budget prospects for the fiscal year ending June 30,
1969 were outlined in a review released September 9
by the Bureau of the Budget. Those components of
Federal spending that were initially exempted from
expenditure controls, namely, Vietnam expenditures,
social security payments, veteran’s benefits, and in­
terest on the debt, are estimated to rise 13 per cent
from fiscal 1968 to fiscal 1969, compared with an aver­
age rate of increase of 28 per cent for such programs
from fiscal 1965 to fiscal 1968. The Budget Bureau’s
report recommends the exemption of additional pro­
grams, such as farm price support programs and pub­
lic assistance, from expenditure controls. As a result
of such erosion of the provisions for expenditure con­
trol, total Federal expenditures are now estimated to
rise 3 per cent in fiscal 1969 from fiscal 1968.
Taking into account revised expenditure estimates,
the high-employment budget is now estimated to move
from a $3 billion deficit in the third quarter to a $15
billion surplus in the second quarter of 1969. The
large shift from deficit to surplus depends upon real­
ization of the currently planned slowing of expendi­
ture growth, as well as the retroactive feature of the
surcharge on individual income taxes, the scheduled
increase in social security tax rates, and the normal
growth in revenue as the economy expands. If the
surtax expires on June 30, 1969 as currendy scheduled,
the high-employment budget would revert from the
large surplus of the spring of 1969 to near balance in
the third quarter of that year.

Though the June fiscal program has been in effect
for a full quarter, it has not yet registered a signifi­
cant impact on consumer or business spending. Fis­
cal restraint may be expected to be greater in the
first half of 1969 than in the last half of 1968 for
several reasons: 1) Since consumers and businesses
are not always quick to alter their spending patterns
in response to changes in after-tax income, the full
effect of the surcharge is not expected until the first
half of 1969, and even then the temporary nature of
the surtax may moderate its effect on private spend­
ing. 2) Large tax payments will be due early next
year for that portion of tax liabilities not withheld in
1968. 3) Social security tax rates are scheduled to
increase on January 1, 1969, withdrawing an estimated
$3 billion annually from private income.

M o n e y Stock
R a tio S c a le
B illio n s o f D o ll a r s

200

June64

The success of the fiscal program in slowing growth
of total demand may depend in considerable part on
the monetary expansion that accompanies the budget
M o n e ta ry B ase *

I9 6 0

1961

R a tio S c a le
B illio n s o f D o lla r s

M o nth ly A v e ra g e s o f D a ily Figu re s
S e a s o n a lly Adjusted

196 2

196 3

Apr.65

Apr. 6 6

200

Jan. 67

Sept 68

- 9 6 4.1 1___U_6 L196 7
L .19 6 5 1 9 6
_
1

1968

Percentages are annual ratesof c han ge between periods indicated.They ore presented to aid in
com paring m ostrecentdevelopments with p a st "trend s."
late st d ata plotted: Septem ber estimoted

pressures. The monetary base has increased at a 4.9
per cent annual rate in the six months since March,
compared with a 3 per cent average rate of increase
from 1957 to 1966.
The money stock, consisting of private demand
deposits and currency, has increased at a 7 per cent
annual rate since March and 6 per cent in the last year.
W hile the money stock changed little from mid-July
to late September, so short a period may not be of
sufficient length to assure a restraining effect. During
the decade from 1957 to 1967 the money stock rose
at an average rate of 2.6 per cent.
Bank credit has expanded at a 17.1 per cent annual
rate since early June, about twice the average rate
B a n k Credit*

• U se * of the m onetary b a se ore m em ber b o n k re serves a n d currency held b y the p ub lic a n d no n m em ber
b onks. Adjustm ents a re m a d e (or re se rve requirem ent c h a n ge s a n d shifts in d e p o sits a m o n g c la s se s
of b a n k s .D a ta a re com puted b y this b o nk
Percentages a re a n n u a l rates of chan ge between p eriod s indicated. They are presented to a id in
c o m p arin g m ostrecentdevelopm ents with p ost "tren d s."
Latest d a ta p lotted : Septem ber estimated

A ll C o m m e r c ia l B a n k s

R a tio S c a le
B illio n s o f D o lla rs

R a tio S c a le
B illio n s o f D o ll a r s

5001
------------------

shift during the second half of 1968 and the first half
of 1969. Treasury borrowing in the second half of
1968, although somewhat less than a year earlier and
less than it would have been without the fiscal pack­
age, is still large compared with most past periods.
As Federal demands for credit are reduced, there is
less pressure to expand monetary aggregates in order
to moderate upward movements in interest rates.

Monetary Developments
Rapid monetary expansion, which began early in
1967 and continued at least into July of this year,
contributed to excessive demands and inflationary



1961

1962

1963

1964

1965

1966

1967

1968

1969

‘ D ata are estim ated b y the Fe de ral R eserve B o n k ofSt. Louis.
Perc e ntage s are annual rates of c han ge betw een p e rio d s indicated. They are presented to a id in
c om p arin g m ostrecentdevelopm ents with past "t re n d s."
la te st d ata plotted: September preliminary

Page 5

TABLE

M o n e y Sto ck P it s T im e D e p o s it s
R a tio S c a le
B illio n s o f D o lla rs

M o n t h iy A v e ra g .
S e a s o n a l!

s of Daily Figures
r Adjusted

R a tio S c a le
B illio n s o f D o lla rs
^

380

/

?

Percentile Rank1 of Recent Growth Rates
of Monetary A ggre gate s
Length of Period E n d in g Sept. 1 9 6 8

386' 3 8 0

370

3 mos.

370

360

360

+ 7 1 .6 % ^ ^

350

350

340

340
+3. 8 7 , ^

330

330

320

310
/

9 mos.

1 2 mos.

45
53

63
34

78
73

88
81

41
77
75
97
98

74
79
94
91
94

81
94
94
82
91

83
97
94
81
92

i B ased on a ll possible consecu tive periods of th e sam e len g th fro m
J a n u a r y 1949 to S ep tem b er 1968.

y

300

300
J

Federal Reserve C redit
Total M e m b e r B a n k Reserves
R eserves A v a ila b le for
Private D e m a n d D ep osits
M o n e ta r y B a se
M o n e y S u p p ly
M o n e y Plus Tim e D e p osits
B a n k C redit

6 mos.

320

+ 9 .5 % /

310

s

290

290

280

280
Apr. 65

270

II:

Apr.66

1965

Nov 67

Ja .67

1966

Se p f.6 8

1967

1968

Percentages are annual rates of change between periods indicated. They are
presented to aid in comparing most recent developments with past "trend*.”

Latest data plotted: September estimated

from 1957 to 1966. This recent rapid increase reflects
in large part the success of banks in attracting time
deposits since mid-year following the decline of mar­
ket interest rates relative to Regulation Q ceilings. The
acceleration of bank credit therefore reflects a rerout­
ing of lendable funds and not a sharp expansion of
total credit. Similarly, acceleration of money plus time
deposits since mid-year has resulted from the bank
reintermediation and does not evidence acceleration
of monetary stimulus.
The relatively rapid pace of recent monetary expan­
sion can be measured by comparison with various
recent time periods. The growth rates of seven
selected monetary variables for four periods of vary­
ing length ending in September are presented in
Table I. For example, the money supply increased
T ABLE Is *

Recent Growth Rates in M onetary A ggre gate s
(C o m p o u n d e d A n n u a l Rates o f C h a n g e )
Length o f Period E n d in g Sept. 1 9 6 8
9 mos.

1 2 mos.

8 .7
1.9

1 0 .6
4.8

1 1.3
5.1

4.2
5 .0
6.8
8.9
1 0 .7

4 .3
6 .0
6.1
7 .9
10.1

4.1
6.1
5 .8
7 .7
9 .9

3 mos.
Federal Reserve C redit
Total M e m b e r B a n k Reserves
Reserves A v a ila b le for
Private D e m a n d D e p o sits
M o n e ta r y B ase
M o n e y S u p p ly
M o n e y Plus Time D ep osits
B a n k C redit

6 mos.

6.1
3.8
0 .4
5 .0
4 .6
1 1.8
17.1

*D a ta used in T ables I, I I , and I I I a re m onthly av erages o f daily
figures which a re season ally ad ju sted . B an k cred it d ata a re averages
o f seasonally adjusted am ounts fo r end o f cu rre n t and preceding
m onth.

Page 6



at a 6.8 per cent annual rate during the six-month
period from March to September and at a 4.6 per
cent rate from June.
Historical Comparisons — The relative speed of
monetary expansion may be judged by comparing the
most recent three, six, nine, and twelve-month periods
with all consecutive periods of similar length since
January 1949 (T able I I ) . The 6.8 per cent rate of in­
crease of the money supply over the latest six-month
period has been as fast or faster than in 94 per cent
of all other consecutive six-month periods since Jan­
uary 1949. The most recent three-month period rate
of growth of the money supply ranked in the 75th
percentile among all possible consecutive three-month
periods since January 1949.
The growth of money has been relatively rapid
whether examined over a three, six, nine, or twelve­
month period, but the deceleration since mid-July is
reflected in the somewhat lower percentile ranking of
money growth during the latest three-month period.
The growth rate of a monetary variable becomes
increasingly significant the longer it is maintained.
W hile the rate of growth of bank credit from June to
September was in the 98th percentile, it reflected
primarily the effects of market interest rates falling
below Regulation Q ceilings and not a sharp expan­
sion of total credit.
Factors Affecting Money — Many factors affect
short-run fluctuations in the money stock. Table III
presents a summary of the influence of these factors
on the rate of change of money in recent periods.
The actions of the factors other than the Federal
Reserve are determined by interest rates, wealth, in­
come and other economic variables. The rate of
change of money is equal to the sum of the influences
of the various factors. For example, from June to
September Government demand deposits at member
banks increased and, in the absence of change in any
other factor, would have caused money to decrease
at a 2.8 per cent annual rate. In the absence of the

TABLE III:

Summary of Factors Influencing the Com pounded
Rates of Change in the M oney Stock
Ju n e 1 9 6 8
Sept. 1 9 6 8 *

Jan. 1 9 6 8
June 1 9 6 8

Jan. 1 9 6 7
Jan. 1 9 6 8

and remain well above their averages for the last two
years. The yield on three-month Treasury bills fell
from a peak of 5.82 per cent in May to a 5.00 to
5.35 per cent range in early August, and has since
remained at about this level. Yields on longer term
securities have shown a similar pattern.

1. B a n k in g System
B o rro w in g from
Reserve B an ks
Excess Reserves
B a n k Stru ctu re'
O th e r B a n k in g 2

-

3 .7
0 .0
0 .3
0.1

0 .7
0 .0
0.4
0 .9

4 .0

Total B a n k in g

3.5
1.5
3.2
2.8

4.1

0 .2

7 .2

2. Public
C urren cy H eld
Time D e p osits at
M e m b e r B an ks

-1 0 .6

-

9 .9

-

-

0 .6

3.3

-1 0 .5

10.5

3 .4

0 .6

-

5 .7

3 .6

-1 1 .8

-

8 .7

1 4 .9

Federal Reserve P ortfolio
Reserve R equirem ent C h a n g e s

1 6 .4
0 .0

-

18.1
2.6

2 0 .0
2.1

Total Federal Reserve

1 6.4

15.5

22.1

4.6

6.8

7 .2

Total Public

4.1

-1 4 .7

3. G o ve rn m en t
D e m an d D e p o sits at
M em ber Banks
4. O th e r Reserve Factors3
5. Total o f 1, 2, 3, a n d 4

-

2.8
1.7

6. Federal Reserve

7. Rate o f C h a n g e in
M o n e y Stock
Total o f 5 a n d 6

^Septem ber d ata a r e p relim in aiy .
'S h if ts in deposits am ong classes o f m em ber b an k s.
-N et o f m em ber bank demand balan ces “due to*' and “due fro m ”
banks, and the nonm em ber bank dem and deposit com ponent o f m oney.
"F a cto rs (includ ing gold) d eterm in in g to ta l m em ber bank reserves
other than F ed eral R eserv e holdings o f U .S . G overnm ent secu rities,
m em ber ban k borrow in g from R eserv e b an k s, and cu rren cy held by
th e public.

The decline in rates in June and July reflected, in
part, the influence of anticipation and enactment of
the fiscal restraint program on expectations regarding
total demand and demand for loan funds. Anticipa­
tion of moderated economic activity and reduction of
the Federal deficit, with consequent easing of de­
mands for credit, probably contributed to the decline
in rates. With this outlook, investors were willing to
absorb larger amounts of securities, expecting the price
to rise in the future. The effect was to bring about
the decline in rates which was expected. The decline
in rates may also have been influenced by very rapid
monetary expansion before mid-year. The continued
strong demand for goods and services, which has
been contrary to expectations, probably weakened
some investor optimism and may explain partly the
stability of rates since early August.
The fiscal program will sharply reduce the Federal
deficit during this fiscal year. The Treasury will bor­
row about $14 billion over the last six months of 1968,
compared with $19 billion in the last six months of
1967. The demand for funds by the Treasury will
probably decline throughout the fiscal year and pro­
vide a progressive easing of pressure on rates from
the Federal sector.

increase in Government demand deposits, the money
stock would have grown at a 7.4 per cent annual
rate instead of a 4.6 per cent rate. The influence of
most factors on the rate of change of money tends to
be small or temporary, but even when the influence
is large or sustained it can be offset by Federal
Reserve actions.
Federal Reserve open market operations, as Table
I I I illustrates, have been the major factor contributing
to the rapid growth of money since January 1967.
From January 1967 to January of this year, net pur­
chases of securities by the Federal Reserve, taken
alone, would have increased the money stock by 20
per cent. Over the three-month period ending in
September, open market actions alone would have
increased money at a 16.4 per cent annual rate.
Interest Rates — After declining in June and July,
interest rates in general have shown litde net change,



Page 7

Federal Reserve Regulation Amended
Federal Reserve Regulation D, concerning reserves
of member banks, was amended effective September
12. The major features of the amendment include:
1) establishment of a one-week reserve period for
nonreserve city banks as well as for reserve city banks,
2) calculation of reserve requirements based on de­
posits two weeks earlier, 3 ) use of vault cash of two
weeks earlier in meeting reserve requirements, and
4 ) a provision that either an excess or deficiency in
reserve balances averaging up to 2 per cent of re­
quired reserves may be carried forward to the next
reserve week.
The new regulation puts all banks on a standard
reporting schedule and the lag feature makes it pos­
sible for member banks to meet their reserve require­
ments more precisely, probably reducing the average
level of excess reserves. Since required reserves are
established prior to the reserve period and are met by
either supplied or borrowed reserves, the impact of
monetary actions designed to reduce rates of growth
of bank reserves may be delayed by increased borrow­
ing from Federal Reserve Banks. Previously, open
market operations may have been offset for a time by

changes in member bank borrowing from Reserve
Banks, but these operations also tended to cause banks
to make asset adjustments which immediately changed
demand deposits and required reserves.

Summary
Total demand for goods and services continued to
be excessive through September, and upward pressure
on prices persisted, probably reflecting in part the
lagged effect of the rapid monetary expansion which
occurred prior to mid-year. The rate of monetary
expansion has been no greater since mid-year than
in the preceding 18 months and may have been
significantly lower. The rate of growth of bank
credit and of money plus time deposits has reflected
to some extent the shift of market interest rates on
substitute assets relative to the ceiling rates permitted
under Regulation Q.
Consumer spending has not yet been restrained ma­
terially by the tax program. It is too soon to know
how consumers and businesses will finally react to
higher taxes, but recent sales strength, large liquid
asset holdings, and credit availability indicate that
the restrictive impact of the June fiscal action may
be reduced from original expectations.

New Publications
The Board of Governors of the Federal Reserve System has made public
a report entitled “Reappraisal of the Federal Reserve Discount Mechanism.”
This report, the result of a three-year study, describes the conclusions and
recommendations of a System committee which was appointed to reappraise
and, where necessary, recommend changes in the Federal Reserve lending
facilities.
A “Report on Research Undertaken in Connection with a System Study”
by Bernard Shull, Director of Research Projects, is also available. This report
is a summary of the research underlying the document mentioned above.
Copies of both studies may be requested at a cost of 25 cents each from the
Publications Services, Division of Administrative Services, Board of Governors
of the Federal Reserve System, Washington, D. C. 20551.
The Board of Governors also has announced the publication of a special
staff study on “Bank Credit-Card and Check-Credit Plans: A Federal Reserve
System Report.” Copies are available at $1 each from the previously men­
tioned source.

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