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Week ending: December 1, 1971
library

MN 05 1979
The money stock of the nation has changed little in
the last four months, rising at only a 0.5 percent annual rate.
By comparison, money rose at an average 6.2 percent rate from the
fourth quarter of 1966 to the third quarter of 1971. The two
most recent periods when the money stock changed only slightly
for a period of four months or longer occurred in 1969 and 1966.
Money is defined to include private demand deposits and currency
in the hands of the public.
Growth in the monetary base, which underlies growth in
the money stock, has also slowed markedly in recent months. In
the past four months the base has risen at a 2.7 percent annual
rate, down from the 11 percent rate of the previous seven months.
Slower expansion of Federal Reserve credit, the major
component of the base, has been the dominant factor in the recent
slowing in the growth of the base. In the last four months Federal
Reserve credit has increased at a 5.5 percent annual rate, after
rising at a 15 percent rate in the previous seven months. Federal
Reserve credit reflects primarily funds injected when the System
purchases securities from the public; it also includes loans
made to member banks by Federal Reserve Banks as well as a few minor
transactions.
Despite the less expansive growth of Federal Reserve
credit, monetary base, and money, financial markets have had an
easier tone. Interest rates on three month Treasury bills, for
example, have declined from 5.40 percent in late July to about
4.35 percent recently. The lower market interest rates may re­
flect, in part, a downward revision of inflationary expectations
by both lenders and borrowers.


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

Prepared by Federal Reserve Bank of St. Louis

Released: December 3,19/1

MONETARY BASE ^
FEDERAL RESERVE CREDIT*/
AVERAGES OF DAILY FIGURES
BILLIONS OF DOLLARS

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

_

COMPOUNDED ANNUAL RATES
OF CHANCE, AVERAGE OF
THE FOUR WEEKS ENDING
—DECEMBER 1. 1971 FROM _
THE FOUR WEEKS END INGi
-

SEP.
SEP.
AUG.
-----JUN.
JUN.
_
APR.
MAR.

29,
1,
-4,
30,
2,
28,
31,

1971
1971
1971
1971
1971
1971
1971

1.6
-4.0
2.7

MONETARY BASE
5.-4“

-4.9
6.0
6.3

1971
OCT.

MILLIONS

27

1

89

78
_

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
— DECEMBER 1, IE" ------THE FOUR WEEKS
-

SEP.
SEP.
AUG.
-----JUN.
JUN.
_
APR.
MAR.

29,
1,
4,
30,
2,
28,
31,

1971
1971
1971
1971
1971
1971
1971

76
FEDERAL RESERVE CREDIT

0.8

-

.
5.5
10.1
8.9
9.6
9.7

74

72

70
1211
OCT.

MILLIONS

27
66

4 18

OCT

NOV
1970

2 16 30 13 27 10 24 10 24

JAN

FEB

7 21

S 19

APR

MAY

2 16 30 14 28 11 25

JUL
1971

8 22

6 20

3 17

AUG

LATEST DATA PLOTTED WEEK ENDINGi DECEMBER 1. 1971
1/ USES OF MONETARY BASE .ARE MEMBER BANK RESERVES AND CURRENCY HELD BY THE PUBLIC AND NONMEMBF.R
BANKS, ADJUSTED FOR RESERVE REQUIREMENT CHANGES AND SHIFTS IN DEPOSITS. FOR A DESCRIPTION
OF THE BASE SEE THE AUGUST 1968 ••REVIEW OF THIS BANK,
2/ DEFINED TO INCLUDE HOLDINGS OF SECURITIES, LOANS. FLOAT AND 1 ’OTHF.R' * ASSETS. .ADJUSTED FOR
RESERVE REQUIREMENT CHANGES AND CHANGES IN REQUIREMENTS DUE TO SHIFTS IN DEPOSITS AMONG
CLASSES OF BANKS.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

RESERVES

ALL MEMBER BANKS

IN THE NATION

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
33.0

IN I

M IL

BILLIONS OF DOLLARS
33.0

32.5

32.5

32.0

\t

/V

30.0

X-A-

A/Y

-LULL

29.5

J

"TTTT T T T T

J ill

30.5

1

31 .0

"T

31.5

31.0

1 1

V T

-

\k

32.0

1

A J

31.5

f

IIM T T T T

-

A/
jnr \t

29.0

30.5

30.0

29.5

29.0

-in
OCT

111 ..mi

111

111

1111

NOV
1970

JAN

FEB

MAR

DEC

-L..1.L 111
APR

LATEST DATA PLOTTED WEEK ENDING. DECEMBER 1.

1111

MAY

JUN

-LLL. III -L1J..L. 111 _LLL Mil’

JUL
1971

AUG

SEP

OCT

NOV

DEC

1971

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.


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

1971
OCT.
NOV.

DEC.

billions

27
3
10
17
24
1

31.4
31.7
31.4
32.1
31.9
32. 1

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
DECEMBER 1. 1971 FROM
THE FOUR WEEKS ENDING*
SEP.
SEP.
AUG.
JUN.
JUN.
APR.
MAR.

29,
1,
4.
30,
2,
28,
31.

1971
1971
1971
1971
1971
1971
1971

-5.,3
2.,5
5.,0
4.,6
3..9
6.,6
5.,4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

billions of dollars

billions of dollars

BILLIONS
174.9
IT'S. 3
17-5. 1
174.9

III I l I I I
4 18

OCT

2 ie 30 13 27 10 24 10 24

NOV
1970

JAN

7 21

5 19

APR

FEB

MAY

2 16 SO 14 28 11

8 22

6 20

3 17

1

13 29

1971

LATEST DATA PLOTTED WEEK ENDING. NOVEMBER 24, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE,

AVERAGE OF FOUR WEEKS ENDING:

11/25/70

3/24/71

4/21/71

5/26/71

6/23/71

8.3
9.9
9.9
9.8
9.2
7.8
6.6
6.2

12.9
11.8
11.2
9.9
7.5
5.6
5. 1

13.6
12.3
10.3
7.4
5.3
4.8

9.4
7.9
4.7
2.8
2.6

7.2
3.3
1.3
1.4

7/21/71

8/25/71

9/22/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING.
4/21/71
5/26/71
6/23/71
7/21/71
8/25/71
9/22/71
10/27/71
11/24/71


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

0.7
-0.8
-0.3

-4.2
-2.5

-1.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOU’S

MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
235

BILLIONS
227.0
227.6
227.2
227.2
227.4
227.9

230

225

220

215

210

7 21

4 18

OCT

NOV
1970

2 16 30 IS 27 10 24 10 24

JAN

7 21

3 19

MAY

JUL
1971

8 22

2 16 30 14 28 11

APR

FEB

AUG

SEP

6 20

S IT

OCT

NOV

1

19 29

LATEST DATA PLOTTED WEEK ENDING, NOVEMBER 24. 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE,
11/25/70

AVERAGE OF FOUR WEEKS ENDING,

3/24/71

4/21/71

5/26/71

6/23/71

7/21/71

8/25/71

9/22/71

12.2
11.2
11.1
9.7
7.7
6.1
5.5

12. 1
11.7
9.9
7.4
5.7
5.1

10.0
8. 1
5.4
3.7
3.3

7.7
4.3
2.6
2.3

1.5
0.3
0.5

-2.3
-1.2

-0.5

TO THE AVERAGE
OF FOUR WEEKS
ENDING,
4/21/71
5/26/71
6/23/71
7/21/71
8/25/71
9/22/71
10/27/71
11/24/71


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

8.6
9.7
9.6
9.8
9.2
8.0
6.9
6.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

TIME DEPOSITS

ALL

commercial

banks

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
270 p------- ---------- --------

BILLIONS OF DOLLARS
----- ---------- ---------- -1 270

TOTAL TIME DEPOSITS

NET TIME DEPOSITS*

7 21

4 18

OCT

NOV
1970

JAN

FEB

7 21

5 19

APR

2 16 SO 13 27 10 24 10 24

MAY

2 16 30 14 28 11 25

8 22

6 20

3 IT

OCT

1 15 28

NOV

LATEST DATA PLOTTED WEEK ENDING. NOVEMBER 24, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE,
* NET TIME DEPOSITS ARE DEFINED AS. SAVINGS‘DEPOSITS, TIlC.DEPOSITS OPENI ACCOUNT.PLUS TIME
CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERT IFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF $100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BAM<S.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDINGs
11 /25/70

3/24/71

4/21/71

5/26/71

6/23/71

7/21/71

8/25/71

9/22/71

25.9
23.3
21.8
20. 1
17.6
16.6
16.3
16,1

17. 1
15.8
13.9
1 1.0
10.5
10.9
11.3

13.0
11.4
8.6
8.5
9.3
10.0

10.4
7.0
7.2
8.5
9.4

4.5
5.5
7.5
8.7

4.4
7.4
8.9

10.7
P.8

13.7

TO THE AVERAGE
OF FOUR WEEKS
ENDING.
4/21/71
5/26/71
6/23/71
7/21/71
8/25/71
9/22/71
10/27/71
11/24/71


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

490

MONEY STOCK PLUS TOTAL TI'HE DEPOSITS

480

=

470

460

450

440
MONEY STOCK PLUS NET TIME DEPOSITS MK
430

=

=

4 18

OCT

2 18 90 13 27 10 24 10 24

NOV
1970

JAN

7 21

9 19

APR

FEB

MAY

2 10 30 14 28 11 25

8 22

0 20

3 17

OCT

1

420

410

NOV

15 29

1971

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 24,

1971

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
»*M* IS DEFINED AS: CURRENCY, DEMAND DEPOSITS PLUS NET TIME DEPOSITS (SEE PACE 6).

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
11/25/70

3/24/71

4/21/71

5/26/71

6/23/71

7/21/71

8/25/71

9/22/71

16.7
16.2
15.5
14.7
13.2
12. 1
11.4
11.1

14.4
13.4
12.4
10.3
9.0
8.5
8.4

12.5
11.5
9.2
7.9
7.5
7.5

10.2
7.6
6.2
6.1
6.3

6. 1
4.8
5.0
5.5

2.8
3.8
4.7

4.0
5.1

6.5

TO THE AVERAGE
OF FOUR WEEKS
ENDINGi
4/21/71
5/28/71
6/23/71
7/21/71
8/25/71
9/22/71
10/27/71
11/24/71


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

CERTIFICATES OF DEPOSIT

LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
SEASONALLY ADJUSTED

billions of dollars

BILLIONS OF DOLLARS
36

34

32

30

28

26

24

22

4 18

2 1« 30 13 27 10 24 10 24

JAN

7 21

3 19

2 16 30 14 28 11 25

8 22

1970

6 20

3 17

OCT

FEB

NOV

1

13 29

1971

LATEST DATA PLOTTED WEEK ENOINGj NOVEMBER 24, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF 8100,000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.*


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

MONEY AND TIMt DEPOSIT DATA
CERTIFICATES
OF DEPOSIT

1971
OCT.

NOV.

DEC.

6
13
20
27
3
10
17
24
1
8
15
22
29

32.7
32.9
32.9
32.7
32. 1
31.8
32. 1
32.2

BILLIONS
NET TIME
DEPOS1TS
229.6
229.8
230.7
231.2
231.5
232.2
233. 1
233.8

m

M2 MK
456.5
457.0
457.7
458.8
458.8
459.4
460.5
461.7

* SEE FOOTNOTE PAGE 6.
*8 SEE FOOTNOTE PAGE 7.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9
MEMBER BANK DEPOSITS
SUBJECT TO RESERVE REQUIREMENTS
(CREDIT PROXY )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

CREDIT PROXY ADJUSTED 1/

CREDIT PROXY

4 18
OCT

NOV

16 90 19 27 10 Z* 10 24
JAN

FEB

7 21

9 19

APR

MAY

2 16 90 14 28 11 25

8 22

1970

6 20

9 17

OCT

NOV

1

19 29

1971

LATEST DATA PLOTTED WEEK ENDINGj NOVEMBER 24,
CURRENT DATA APPEAR 'N THE BOARD OF GOVERNORS'

1971
H.9 RELEASE.

V INCLUDES MEMBER BANK DEPOSITS, BANK-RELATED COMCRCIAL PAPER, EURODOLLAR BORROWINGS OF
U.S. BANKS, AND CERTAIN OTHER NONDEPOSIT SOURCES.

billions

iazi

rnoxY

CRED1T
PROXY
ADJUSTED

349.8
3S0.6
352.7
352.3
352.8
352.7

354.9
355.6
357.7
357.4
358.3
358.4

CRED!T
OCT.
NOV.


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

20
27
3

10
17

24

COMPOUNDED ANNUAL RATES OF CHANGE.
AVERAGE OF THE FOUR WEEKS ENDING
NOVEMBER 24. 1971 FROM THE FOUR
WEEKS ENDINGt
CRED1T
CRED!T
PROXY
-EBffitt. ADJUSTED
SEP.
AUG.
JUL.
JUN.
MAY
APR.
MAR.

22,
25,
21.
23,
26,
21,
24,

1971
1971
1971
1971
1971
1971
1971

4.9
7.4
8.7
8.0
8.0
8.3
9.1

7.4
9. 1
9.3
8.7
8.7
8.0
8.0

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

per cent

CORPORATE Aaa BONOS

MUNICI
BONDS**
:rcial

PRIME
LOAN

DISCOUNT RATE
THREE-MONTH TREASURY
BILL MARKET YIELD

2 16 SC 15 27 11 25

NOV

3 10

5 10

FEB

8 22

DEC

2 16 50 14 26 II 25

MAR

MAY

I

0 23

JUN

AUG

15 20 12 26 10 24

SEP

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENOINGi DECEMBER 3, 1971

1971
OCT.

1
8
15
22
29
NOV.
5
12
19
26
DEC.
3 K
10
17
24
31

CORPORATE
Aaa BONDS

3-MONTH
TREASURY
BILLS

3-5 YEAR
G0VERM4ENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

MUNICIPAL
BONOS x*

7.46
7.44
7.42
7.37
7.31
7.25
7.24
7.27
7.28
7.28

4.65
4.51
4.45
4.47
4.36
4.18
4.18
4.15
4.33
4.34

5.91
5.84
5.68
5.62
5.53
5.41
5.47
5.47
5.63
5.57

5.52
5.47
5.44
5.47
5.43
5.33
5.37
5.46
5.56
5.57

5.24
5.17
4.99
4.97
5. 1 1
4.99
5.19
5.25
5.36
N. A.

**ABONOGQUYER' SAAVERAGE''l NOEX‘ OF 20 MUNICIPAL BONDS, THURSDAY DATA.
N.A. - NOT AVAILABLE


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

f

11
SELECTED SHORT-TERM

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PgR CENT

PER CENT

COMMERCIAL PAPER
4-T0-6 MONTH

FEDERAL FUNDS RATE

1111
2 16 30 13 27 11 25

NOV
1970

8 22

DEC

5 19

5 19

FEB

2 16 30 14 2« 11 29

9 25

6 20

3 17

MAR

1

15 29 12 26 10 24

1971

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGi DECEMBER 3,


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

1971
OCT.

1
8
15
22
29
NOV.
5
12
19
26
DEC.
3 *
10
17
24
31

PRIME
COMMERCIAL
PAPER
4-6 MONTH

FEDERAL
FUNDS

PRIME
BANKERS'
ACCEPTANCES

90 DAY
CD'S KK

5.75
5.75
5.63
5.45
5.25
5.03
4.88
4.93
4.88
4.88

5.35
5.25
5.35
4.98
5.25
5.13
4.83
4.85
5.00
4.41

5.40
5.23
5.03
4.98
4.88
4.78
4.75
4.75
4.82
4.79

1971

5.62
5.53
5.44
5.29
5.18
4.99
4.91
4.88
4.89
4.89

* AVERAGES OF RATES AVAlLABLF. FEDERAL FUNDS LAST FIVE DAYS AVAILABLE
HBK DATA ARF. SECONDARY MARKET RATES, WEEKLY AVERAGES ENDING WEDNESDAY TWO
DAYS EARLIER. CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWINGS AND EXCESS RESERVES

ALL MEMBER BANKS

IN THE NATION

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

—I--------------------

1.6 ------- -------- -----

1.6

BORROWINGS'

EXCESS RESERVES

-0.4

0.8

0.8

-

-

NET FREE RESERVES

-1.6

4 18

OCT

NOV
1970

2 16 30 13 27 10 24 10 24

DEC

JAN

FEB

MAR

7 21

5 19

APR

2 16 30 14 28 11 25

MAY

JUN

JUL
1971

AUG

8 22

SEP

8 20

3 17

OCT

NOV

1

13 29

DEC

LATEST DATA PLOTTED WEEK ENDINGi DECEMBER 1, 1971


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

MILLIONS
1971
OCT.

6
13
£0
27
NOV.
3
10
17
24
DF.C.
1
8
15
22
29

EXCESS
RESERVES
214
49
210
51
396
19
246
195
558

BORROWINGS
309
449
332
413
216
'22
289
539
701

FREE
RESERVES
-

95
400
122
362
180
103
43
344
143

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

1.6

-


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102