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‘

w
RESEARCH LIBRARY

of St. Louis

MONEY STOCK

(Page 5)

Week ending August 28, 1968

JUG 2 r( 1998

INTEREST RATES

(Continued)

The nation's money stock climbed to $190.5
billion during the week ending August 21, up at a
10.6 per cent annual rate since May and an 8.2 per cent
rate since February. The money stock continued to rise
much more rapidly than its 2.6 per cent average annual
rate of increase from 1957 to 1967. The money stock
and the demand deposit component of the money stock have
not risen much on balance during July and August. The
slow growth in money during these two months may reflect
in part changes in Treasury deposits at commercial
banks.

rate on three-month Treasury bills fell from a peak
of 5.82 per cent in May to 4.96 per cent in early
August. The average rate for the three days ending
August 28 was 5.18 per cent. The rates on longer-term
securities have followed a similar pattern. The rate
on long-term Government bonds fell from a May peak of
5.52 per cent to 4.99 per cent in early August and has
subsequently risen somewhat to an average rate of 5.07
per cent for the three days ending August 28.

MONETARY BASE

In late June the Government enacted a 10
per cent surtax on personal and corporate incomes and,
at the same time, provided for a $6 billion reduction
in planned expenditures. During the first 52 days of
fiscal 1969, July 1 through August 21, tax and other
cash receipts of the Government amounted to $24.5
billion, or $4.7 billion more than in the corresponding
period a year earlier, according to the Daily Treasury
Statement. Expenditures in the same period amounted
to $31.2 billion, or $5.4 billion (21 per cent)
above the same period last year. Spending by the
Defense Department increased $1.5 billion and all
other outlays rose $3.9 billion. The resulting
deficit was $6.7 billion as against $6.1 billion in
the same period of fiscal 1968.

(Page 3)

The monetary base has increased at a 7.7 per
cent annual rate since May and at a 7.2 per cent rate
since February. These growth rates are well above the
1957 to 1967 average annual increase of 3.3 per cent.
Unlike the money stock and total demand deposits, the
monetary base is a monetary measure which does not
fluctuate markedly with movements in Treasury deposits.
The monetary base has shown a continued upward trend in
July and August.
(For a description of the base see
the August Review of this bank.)
INTEREST RATES

TREASURY FINANCE

(Pages 10 & 11)

-

Some interest rates have risen in the past
three weeks after declining for three months. The


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Rates of change reported in this release are
intended to serve as summaries which may be
useful in analyzing recent developments.

Prepared by Federal Reserve Bank of St. Louis
Released: August 30, 1968

FEDERAL RESERVE CREDIT 1
Averages of Daily Figures

of Dollars

Billions of

Seasonally adjusted by this bank. (2

57

n i

th

56

55

Annual rate of change Federal Reserve Credit
adjusted for reserve requirement changes
averages of four weeks ending Aug. 28, 1968
from four weeks endin
29,
1968
+ ll-J
28, 1968
+/*■%

1968

*

II 1 1 J II

J-J

So.oi
SO.bO
SO.

Soli
,

a-f !
SO. Hi
(Uc ^

+/J.Z

29, 1967
30, 1967

11 1 11 1 1 11 11

Federal Reserve
Holdings
Credit

1

1957-1967
54

Federal Reserve Credit
53

so. so

So.il
/?
S3 II
At
! SI. go
r* >0 ' SO-V
SI-13
n
W SI. ot>
„ 31
S3. 01
ssi.^
7
H n.z/
Z/ S3.if „
Z8
P

S3,

Sl.oSJ

s/.is
SI. 33

s/ n
JVdV
SA IX
Sis 0
I S/-3SL
,57.60
1 S3.70
SA.i.3.

! sW.W
1 Ji. 7/
i J3.f3 „
j3.iL P

52

51

50

i

Federal Reaerve Holdings of U.S. Government
and Federal Agency Securities

4?

48

47
1/ Federal Reserve Credit excludes float and a few minor
items. Data prior to Jan. 18, 1968 adjusted for the
estimated effect of reserve requirement changes.
Seasonal adjustment for Federal Reserve Holdings
computed by this bank using data ending December
Borrowings from Federal Reserve not seasonally
adjusted.
Current unadjusted data appear in the
Board's H.4.1. release.

46

45

6

data preliminary
data plotted week ending: Aug. 28,

18
Oct.

1

15 29

Nov.
1967


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

13

27

Dec.

10 24
Jan.

7

21

Feb.

6

20
Mar.

3

17
Apr.

1

15
May

29

12

26 10 24
June
July
_ 1968

7 21
Aug.

rt-m-mm
18 2 16 30 13i mmrrm..........
27 11 25 -8 22 5 19
19
4

Sept.

Oct.

Nov.

Dec.

Jan.

5
Feb.
Mar.
1969

Prepared by Federal Reserve Bank of St. Lou^F

2

MONET^Y BASE*
Averages of Da ily Figures
Seasonally Ac justed

Billions of Dollars

Billions of Dollars
Annual rates of change,

Reserves

Monetary Base
Seasonally
Adjusted

Week

Total
Effective
Reserves
Adjusted

Available
For Private
Demand Deposits
Seasonally
Adjusted

average of

from four weeks ending:

Averages of daily figures in billions of dollars

j
0 c ch
~/e
'7.

Q*

u
7j.y
K/f

-%

Ajr.sr
Af.SO

„

n

m

mi

"■?

/ j/ p

1957-1967

/3.3

AsT.fcJ

'

a sop

*

Uses of the monetary base are member bank
reserves and currency held by the public and
nonmember banks.
Adjustments are made for

reserve requirement changes and shifts in
deposits among class of banks.
Data are computed
by this bank.
For a description of the base see
the August Review of this bank and for trend of
monetary base by months see this bank's monthly
release entitled "Monetary Trends".

-- Latest data preliminary
.
:-- Latest data plotted week ending: Aug. 28, 1968

8

22

5


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

19

3

17

31 14

28

12 26
July

9
Aug

23

6

20

4

l8

1

15

29 13

27

10 24

7

21

6

20

3

17

1

15

29 12

26

10 24
July

7

21

Aug.

Prepared by Federal Reserve Bank of St. Louis

4

18

DEM AND DEPOSIT COMPONENT OF U.S. MONEY STOCK*
Averages of Daily Figures
Seasonally Adjusted

rf Dollars
163

Billions of

l6l
160
159

158

1
1

1
1

i6s

JEEKLY DATA
1968
/Ha, /J IH3.S

-Annual rates of change, average of
-four weeks ending Aug. 21, 1968
-from four weeks ending:
-May 22, 1968
+ t/i
-Feb. 21, 1968 +
8.Z
r Nov. 22, 1967 +
6.*/
"Aug.

23,

1967 +

° M l+f.O

Ii t 6 'Ml

6-0
<?

At.

I_1957-1967
157

C/0

156

/7 m-t
if Mb.L

155

3i
(Uvvto

„

154

my

vy mt

i.

H/nip

153
152
151

150
149
148

r T /* /

147
146
145
13-week centered
moving average

144
143
142

Weekly

141
140
139

138
137

136
135
134
133^

&

* Current data appear in the Board s H.6 release.
Back
data appear in tlje June 1968 Federal Reserve Bulletin.
For trend of demand deDOsits bv months see this bank's.
monthly release entitled "Monetary Trends"*
^
1 1 1 1 t r 1 1 1 1 1 1 j 1 1 _i__1 T l 1 1 111 1 1 -J J-.L I 1

Latest data preliminary
Latest data plotted week ending:

1111111111
i-rm27
18 1 15 2913
4

Oct.
1967


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Nov.

Dec.

Aug. 21,

t
10 24
Jan.

7

21
Feb.

6

20
Mar.

3

17
Apr.

May

July

968

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

196'

Prepared by Federal Reserve Bank of St. Louis

MONEmTOCK*
ily Figures
Averages o
Seasonally Ad

*
Lions of Dollars
205
204

5
Billions of Dolli
205
204

Annual rates of change, average of
four weeks ending Aug. 21, 1968
from four weeks ending.:
May
22, 1968
Feb. 21, 1968
^

203

202

Nov.

201

22,

1967

203

202

-f- (>■?

201

200

200
1957-1967

199

199

196

198

197

197

196

196

195

195

194

194

193

193

192

192

191

191

190

190

189

189

188

188

187

187

186

186

185

185

184

184

13-week centered
moving average

183

183
Weekly

182

182

181

181

180

180

179

179

178

178

177

177
* Current data appear in the Board's H.6 release.
Back
data appear in the June 1968 Federal Reserve Bulletin.
For trend of money stock by months see this bank's
monthly release entitled "Monetary Trends".

176
Latest data preliminary
Latest data plotted week ending:

!75_
<r

—-------- ----Aug. 21, 1968

T~l I I I I I I I I I I I I I I 1 1 I I I I I 1.I..1 I I
6

20

Sept.

4

18

1

Oct.

15
Nov.

1967


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

29 13

27
Dec.

10

24
Jan.

7

21

Feb.

6

176
175

_____________ _
20

Mar.

3

17

Apr.

1

15
May

29 12

26

10 24

June

1968

July

7

21

Aug.

4 18
Sept.

2

16 30
Oct.

13

'

27 11 25

Nov.

Dec.

8

22
Jan.

5

19
Feb.

5

19
Mar.

1969

Prepared by Federal Reserve Bank of St. Louis

2
r.

0

CERTIFICATES OF DEPOSIT [1_
Large Commercial Banks
Wednesday Figures

Billions of Dollars

25.0

Billions of

ffFFFFFFffFTffl

,111111111
Annual rates of change, seasonally unadjusted data.
average of four weeks ending Aug. 21, 1968 from
four weeks ending:
May 22, 1968
V 1H.3
Feb. 21,
Nov. 22,
Aug. 23,

24.0

+ /Q. 7

1968
1967
1967

■+

. 0
8.0

/

23-0
1964-1967

22.0

22.0

21.0

21.0

20.0

20.0

19.0

Millions of Dollars
1968
Xan£

18.0

/r.VbS
/?. /ys*-

14,09.1

17.0

/% 5

'TV-i
Zt,9$c
JL/yfC
*/,

16.0

13/

i.m

t/ zzifor
15.0

14.0
Latest data preliminary
Latest data plotted:
Aug. 21

Current and year ago data appear in the
Board's H.4.2. release.
2J
Negotiable time certificates of deposit

1968

i
4

10

l

15

Oct.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

29

Nov.
1967

13 27
Dec.

1

15
May

29

12 26

10 24

June

July

^^1968

in denominations of $100,000 or more.
i ii r ................... ..
2 16 30 13 27 11 25 8 22
5 19 5 19
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
1965

Prepared by Federal Reserve Bank of St^xbuis

13.0

TIME
Billions of Dollars

7
Billions of Dollars

Averages of Daily Figures
Seasona !ly Ad usted

-- Annual rates of change, average of
four weeks ending Aug. 21, 1968
from four weeks ending:
~ ~ May
22, 1968
T/t-'i
_| Feb. 21, 1968
+- g.2

.1968

1957-1967

n nc-A

* Current data appear in the Board's H.6 release.

Back
data appear in the June 1968 Federal Reserve Bulletin.
For trend of time deposits by months see this bank's
monthly release entitled "Monetary Trends".
.

Latest data preliminary
_________ .
Latest data plotted week ending: Aug. 21, 1968

11 I 11 II I I
6

20

4

18


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1

15

29 13

27

10 24

7

21

6 20

3

17

1

15

29 12 26
June

10 24
July

7 21
Aug

4 18

2

l6

30 13

27 11

25

8

22

5

19

Feb.

5

19

Mar.

Prepared by Federal Reserve Bank of St. Louis

2

Apr

BORROWINGS AND EXCESS RESERVES
All Member Banks in the Nation
Averages of Daily Figures

Dollars

Millions of

,000
,900

BORROWINGS

FREE
RESERVES

BIWEEKLY DATA

,8oo.

-3S5
- Z le>

,Too

8Z

,600

-AS''/
3/3^

,500

-/7o" P

,400

- 3b9
- 31g
Ztl

,300

-3//

.,200

■f- <3/

.,100

-

BIWEEKLY SETTLEMENT PERIODS

.,000
900

-1/C ,
-A3? P

800

Borrowings

700

6oo
500
400

300

200

Excess Reserves

100
0

100
200
300
400
Net Free Reserves
500

600

700
800
900

1,000

Latest data preliminary
Latest data plotted:
two weeks ending Aug. 28, 1968

1,100
27

11 25

Sept^^ Oct.

8

22

Nov.

1967

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

6

20
Dec.

3

17
Jan.

31

14

28 13 27

Feb.

Mar.

10

24

Apr.

8

22
May

19

3

17

ne
July
^^8

28 11 25
Aug.
Sept.

31 14

1

15 29
Jan.

12 26 12 26
Feb.
Mar.
1969w

Prepared "by Federal Reserve Bank of St*^rouis
.^Cui

BUSING LOANS
La rge Com^rercia I Banks
Billions of Dollars

Billions of Dollars

Wednesday Figures

73

73

Seasonally adjusted by this bank
Annual rates of change, average of
four weeks ending Aug. 21, 1968
from four weeks ending:

/ II. V

1960-1967

Millions of

SEASONALLY
UNADJUSTED
67 717
47. ‘/J/

47 4/0
67.VJ7
47, zuy
4 7, -7/f
LS.VI
^1,3^0

6.?, ill
4?, /?*6 ? j ry
4?" 09F
6.9,/?/

A

Latest data preliminary
Latest d.ata plotted:
Aug.

21,

Current and year ago unadjusted data appear in
the Board’s H.4.2 release.
Seasonal adjustment
computed by this bank using 1962 through 1967 data

1968

I
6

20

Sept.

4

18 1
Oct.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

15

1967

29 13

Nov.

27

Dec.

10 24

Jan.

7

21

Feb.

1

15 29
May

12 26
June

10 24
July

1968

7 21
Aug.

4

18 2
Sept.

16

Oct.

30 13 27
Nov.

11 25

8

Dec.

Jam.

22

5

19
5 19
Feb.
Mar.
1969

Prepared by Federal Reserve Bank of St. Louis

2

Apr.

YIELDS ON SELECTED SECURITIES
Averages of Daily Rates Ended Friday

Per Cent

3-MONTH
TREAS. 3-5
_BILL

YEAR

JT47

£9S
i-ej
59/
$80

—
2+
~
31
— 9^-4 7

3

s.83510
Skip

5.35

Per Cent

LONG- CORPORATE
TERM
Aaa
538

4JL7
Ip-28

iLTA
5+3

'

L.a.9

SJo
S.a.1
5.18
S.JS
S.I2L

!

4 n
4.A7

3. to

\

t-XT

5.1+

1

fc.ifc

5.03

i

4>.A»-

e..jt
<p 3-9

4.99

L/4

9.99
f.Oi

C-O'l
£.Co

55.09

S.7S

S.O 7

S.9?
Corporate
Aaa Bonds

Three-Month Treasu:
Bill Market Yield

Discount Sate

Long-Term
Government Bonds'

Latest data plotted are averages of rates available for the week ending: Aug. 30,

8

22

6

J—I__ I J_t_I_L

20

3 17

1


OF RATES AVAILABLE
*AVE3
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

15

29 12

26

9

23

8

22

5

19

3

17 31

1^

28 12 26

June

1968

9

23

6

20

1*

18

1

15

29 13

27 10

24

7

21

July

Prepared by Federal Reserve Bank of Si

7

21

SELECTED SHORT-T,
Averages of Daily

Per Cent
1

Mill
.
PRIME
,____ COMMERCIAL
.
PAPER
‘iq±S 4-6-MONTH

*30

I

I

I

I 1 I

* INTEREST RATES
tes Ended Friday

1,1 I

PRIME
LARGE _________
BANKERS' 90 DAY FEDERAL
ACCEPTANCES CD'S** FUNDS
i.00
L/3
6. yj
4./J
C./3
S.SS
L.Op

6-3.0

S-T'p
J.lY
6 00

ji,/a
6 0S
S.?S

6.00

6-00

|

_

S.SS

6.0 4

L.00

STS

S.13

600

fc.o3

S.8B

fe.oo

6.J3

S. l£

S.9S

6.1b

f.gO

5. a
5.75
5.61
56$

5.

S’.*)!

S.9S
6-30
6.iS

5.80
5.80
5.80

^.OO
i./3
6JJ
555
5■ 16

Commercial Paper
4-to-6 Month
Federal Funds Rate

Bankers' Acceptances
Discount Rate

Latest data plotted are averages of rates available for the week ending:

8

22

6

20

3

17

1

15

29

12 26

9

23

8

22

5

19

3

17

31

Aug. 30, 1968

14 28
June

‘AVERAGES OF RATES AVAILABLE
“SOURCE: SALOMON BROTHERS AND HUTZLER

SECONDARY MARKET RATE ON 90-DAY PRIME CD'S.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

12

26 9

July

23

6

20

It

18

1

15

29

13 27

10 24

7

21

7

21

Aug

Prepared by Federal Reserve Bank of St. Louis