Full text of U.S. Financial Data : Week Ending December 11, 1968

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RESEARCH LIBRAR

tf

Federal Reserve Bank
of St. Louis

s. FinnnciRL

data

Week ending: December 11, 1968

03 2 *2 ^98
Short-term interest rates (pages 8 and 9) have
been rising since September and went up sharply in the
last three days. On December 11, yields on three-month
Treasury bills reached 5.88 per cent compared with a peak
of 5.82 per cent last May and a low of about 5 per cent in
late summer. Interest rates on long-term issues followed
a similar pattern. Expectations of continued rapid increases
in spending and inflation have increased since early fall.
With expected price rises, interest rates typically go up,
since lenders seek to protect the purchasing power of funds
and borrowers expect to repay in cheaper dollars.
Monetary expansion, as measured by the money stock
(page 3), has apparently resumed a rapid pace. Although money
rose at a 2 per cent annual rate from July to October, the
increase in money over the entire last six months has been
at a 6 per cent rate, about the same as in the previous six
months.
The trend growth of the monetary base (total credit
provided by the Treasury and the Federal Reserve) largely
determines the trend growth of money. The growth of the
base (page 2) has been rapid throughout the year, advancing
at a nearly steady 6 per cent rate, significantly faster
than the average 3.3 per cent trend rate from 1957 to 1967.

follow a similar pattern over time. Recently, however,
growth of Federal Reserve credit (page 2) decelerated
from a 12 per cent annual rate during the first eight
months of the year to a 0.5 per cent rate in the last
three months.
The growth of the base continued to be rapid
in the face of slower growth of Federal Reserve credit
largely as a result of a substantial increase in Federal
Reserve holdings of foreign denominated currencies, which
increased a source of the base not included in Federal
Reserve credit.
(See table of sources of the base on
page 12.) From the week ending November 20 to that of
the 27th, Federal Reserve holdings of foreign denominated
currencies rose by a large amount due to an increase in
international "swaps" relating to the French financial
difficulties. Federal Reserve credit declined about
$1.2 billion from the week ending November 20 to that
of the 27th, but other sources of the base increased
more than $.5 billion during the same period. Consequently,
the base declined only about $.5 billion in that week.
The rise in Federal Reserve holdings of foreign denomi­
nated currencies has usually been a temporary phenomenon,
corresponding to periods of turmoil in international
money markets.

Federal Reserve credit is the largest source
component of the monetary base, and the two series usually


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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: December 13,1968

2

MONETARY BASE [1_

FEDERAL RESERVE CREDIT |2
Averages of Daily Figures

Billions of Dollars

Billions of Dollars

Seasonally adjusted by this bank. _
Annual rates of change, average of
four weeks ending:
Monetary Base
June

12,

F.R.

Credit

y- i o'

1968

1957-1967

Monetary Base

F.R. Credit

Federal Reserve Credit

1/

Uses of the monetary base are member bank

reserves and currency held by the public and
nonmember banks, adjusted for reserve requirement
changes and shifts in deposits.
For a description
of the base see the August Review of this bank.
2/
Latest data preliminary
Latest data plotted week ending:

6

20
Sept.

4

18


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Federal Reserve Bank of St. Louis

1
1967

15

29

13 27

10 24
Jan.

7

Dec.

21

As defined in the statistical tables of the
Federal Reserve Bulletin, adjusted for reserve
requirement changes and shifts in deposits.

11, 1968

6

20
Mar.

3

17

1

15

29 12
26
June

10 24
July

7
21
Aug.

4
18
Sept.

2

16

30

13

27

11

25
Dec.

8

22

5

19

5

19

2

STOCK*
Averages oTDaily Figures
Seasonally Ad us ted

Billions of Dollars

Billions of Dollars

WEEKLY DATA
1968
OcJ-Sl /le.o
'?
/*?■?

Annual rates of change, average of
from four weeks ending:

/<*
June

5,

1968

19,3

jo

iV-o
mi

//9/-9
tj.y

j3 no. to
<io /iZ.L

1957-1967

&t. i /f3,0

13-week centered
moving average
~ Weekly

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".

--- Latest data preliminary
Latest data plotted week ending: Dec. 4, 1968

cTtT
1 I 1 I I I I
6 20 4 18 1
Sept.

Nov.

Oct.


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Federal Reserve Bank of St. Louis

I I

15

1967

29 13

27

Dec.

10

24

Jan.

7

21

Feb.

I

I

6

1 I
20 3

Mar.

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
Apr.

MONEY STOCK PLUS TIME DEPOSITS*
Averages of Daily Figures
SeasonallyAdjusted

Billions of Dollars

Billions of Dollars

Annual rates of change, average of
four weeks ending Dec. 4, 196
from four weeks ending:
—~ Sept.
4, 1968
~ June
5, 1968
___ Mar.
6, 1968
y- ? S'
____ Dec.
6, 1967
f 8^
---

791*

-GcJi-

388.1

---

/4

390.1

-----

33
3o

3894-390.3--

l

1957-1967

~~~*
______
______
------

- Latest data preliminary
-Latest data plotted week ending:

6

20

4

18


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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

„

JfA.7

--

/3 39A<0-<30 393$-<37 39C.X
V 394.7 P--

-

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 plus time deposits by months
see this bank's monthly release entitled "Monetary Trends".

10 24
July

7

21

Aug.

4

18

2

16

30

13

27 11 25

0

8

22

5

19

Sept.

1968
Prepared by Federal Reserve Bank of St

5

19

2

LOANS
rcial Banks
Wednesday Figures

BUSIN
Large Co nr?
Billions of Dollars

Billions of Dollars

Seasona lly adjusted by this bank.
Annual rates of change, average of
from four weeks ending:
June
Mar.

5, 1968
6, 1968

-h / 0-0
t*-//.*

1960-1967

MILLIONS OF DOLLARS
UNADJUSTED

if, ceo

Sept.

4

18
Oct.


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Federal Reserve Bank of St. Louis

1

15

29 13

27
Dec.

10 24
Jan

*9, Ctf
tl.lOL
69.33Sif,9s-0

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.

Latest data preliminary
Latest data plotted:
Dec. 4, 1968

20

SEASONALLY
ADJUSTED

7

21

6 20

3 17

1

15 29

12

26

June

10 24

f

21

4li
Sept.

rmt
Dec.

5

19
Mar.

Prepared by Federal Reserve Bank of St. Louis

2

CERTIFICATES OF DEPOSIT Li
Large Commercial Banks
Wednesday Figures

Billions of Dollars

Billions of Dollars

Annual rates of change, seasonally unadjusted dat
average of four weeks ending Dec. 4, 1968 from
four weeks ending:
Sept. 4, 1968
f-JO.V
June
Mar.
Dec.

5, 1968
6, 1968
6, 1967

y
yy- /y

l

t n-i

1964-1967

Millions of Dollars

lU?
/?7

23, 3o$

Current and year ago data appear in the
Board's H.4.2. release.

Latest data preliminary
Latest data plotted:
Dec. 4, 1968

1/ Negotiable time certificates of deposit
in denominations of $100,000 or more.

f
20
Sept.

4


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

18

1

15 29

13

27 10 24
Jan.

7

21

6

20 3

17

T

15 29

12

2610

June

24

7

21

4

18

2

16

30

13 27 11

25

8

22

Sept.

1967

Prepared by Federal Reserve Bank of St. Lod

TIM WPEPOS ITS*
All Commercial Banks
Averages of Daily Figures
Seasonally Ad u sted

Bill Ions of Dollars

_
■

Annual rates of change, average of
four weeks ending Dec. 4, 1968
from four weeks ending:
Sept. 4, 1968 /-/£ 7
June 5, 1968

- Mar.
“

Billions of Dollars

6,
6,

Dec.

1968
1967

-

1968

7

/9i

y “"

' // /f/ j

2/ /9f 0

y.*j /
9/0,?

13

'

m e- _

.dft. i /9S- 0- _

' // /9S. S' __
1957-1967

_

_
.

n nut
If IV-2

^ /?//

20

4

18


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

1

15

29 13

27

30

23 loo t

soo■+
Jht ( 2eo.g

__
__
—

.

1320/.if

—

- =?7 •*^.<?

—

Zoaa,7

7

21

6 20

—

<io3.7 P~-

* 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".

Dec. 4, 1968

10 24

-

-

-Ac'/

6

__

?/?/7

Mint

-

.

Latest data preliminary
Latest data plotted week ending:

__

3

17

1

15

29 12

26

June

10 24
July

7

21

4 18

2

16

30 13

27 11

rnttt
8 22 5

25

19

5

19

Aug

Prepared hy Federal Reserve Bank of St. Louis

2

T

s

YIELDS ON SELECTED SECURITIES
Avera ies of Daily Rates Ended Friday

Per Cent

Per Cent

Corporate
Aaa Bonds"

Three-Month Treasury
Bill Market Yield

Discount Rate

Long-Term
■Government Bonds'

8

22

6


*avh!ages of
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

J__1—4... J_1 1 I .1
1
20 3 17

15

,i I .1, J ..-1 I I l—-J—L...1 J

Dec.

29 12

26

Jan.

9

23

Feb.

8

i I .1. JL

22
Mar.

5

19

Apr.

3

17 31
May

14

28 12 26

June

July

9

23

Aug.

6

20
;

4

18

1

15

29 13

27 10

24

7

21

7

21

Dec.

1966
rates available

Prepared by Federal Reserve Bank of

Louis

f
Per

SELECTED SHOI
ERM INTEREST RATES
Averages of Daily Rates Ended Friday

Cent

PRIME
COMMERCIAL
PAPER
4-6-MONTH

PRIME
BANKERS'
ACCEPTANCES

Per Cent

LARGE
90 DAT FEDERAL
CD'S ** FUNDS

&>.oo

Commercial Paper
4-to-6 Month

Bankers' .
Acceptances

Discount Rate

Federal Funds Rate

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

8

22

6

20

3

17

l

15

29

12 26

9

*AVERAGES OF RATES AVAILABLE
**S0URCE: SALOMON BROTHERS AND HUTZLER
http://fraser.stlouisfed.org
SECONDARY MARKET RATE ON 90-DAY PRIME CD'S.
Federal Reserve Bank of St. Louis

23

8

22

5

19

3

17

31

Dec.

14 28
June

13, 1968

12

26 9

July

23

6

20

4

18

1

15

29

13 27

10 24

7

21

7

21

Aug

Prepared by Federal Reserve Bank of St. Louis

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

MILLions of Dollars

2,000

Millions of Dollars
" T-y-T-.

EXCESS
RESERVES

| '1

2,000

BORROWINGS

WEEKLY DATA

3fjT
22 S

Sf/
ie>3

373

SU>

-

33?

I

327

27

Ii3

3J2

HS3

<*7S

ns

- 1*73

-338
1,500

sn

ha

//9

SfA.

iS?

S3 A.

- 2

-

- 7S

P
1,200
BIWEEKLY SETTLEMENT PERIODS

WEEKLY RESERVE PERIODS —

Borrowings

Excess Reserves

— Net Free Reserves

W Because of the change in Regulation D
placing all member banks on a one-week____
reserve adjustment period, beginning with---the week ending September 18, 1968 the

----

above reserve data are reported on a
Latest data preliminary
Latest data plotted week ending: Dec.
-

one-week period.

____

11, 1968

-

1,100
13

27

11 25


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Federal Reserve Bank of St. Louis

8

22

6

20

3

17

31

lit

28 13 27

10

24

8

22

5

19
June

3

17

31 14

28 11

25

9

23

6

20

1

15 29

12 2(

July

■ Prepared by Federal Reserve Bank of St

12

26

9

1,000

NT OF U.S. MONEY STOCK*
DEMAND DEPOSIT COMP
Averages of Daily Figures
Seasonally Ad usted

.ions of Dollars
163

1
Billions

163
WEEKLY DATA
1968

162

Ch-a 7

I

(In
a

161

/♦?/
/y7.r

160

«y

t + 7-r

162
Annual rates of change, average of
four weeks ending Dec. 4, 1968
from four weeks ending:
Sept.
4, 1968
ti-l
June
5, 1968
f ji

l6l

160
159

Mar.
Dec.

158

-

i

L£
+3-1

6, 1968
6, 1967

1957-1967

157
156

i 7-■f'

159

,'*06
ws*
'
3

158

<7

/V7 0

156

---- rt

/i
-

155

1

- • 1/
/!
iS
CJ- *

<73

-

/y/i

157

/iSt
/

^
jy?0

155
154

154

153

73 m .3
2.0 /y<?,0

_

153

152

152

151

151

150

150

149

149

146

148

147

147

146

146
145

145
13-week centered
moving average

144

144
14J-

143

142

142
Weekly

141

l4i

140

140

139

139

138

138

137

137

136

136

135

135
* Current data appear in the Board's H.6 release.
Back
data appear in the June 1968 Federal Reserve Bulletin.
For trend of demand deposits by months see this bank's
monthly release entitled ."Monetary Trends".

134
Latest data preliminary
Latest data plotted week ending: Dec. 4,

133

1968

_l)lllllllllllIIII__________________________________________________________________________________________________I__IIIl_l__I

6

20
Sept.

4

18
Oct.


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

1

15

29 13

Noy.

27

10 24

Dec.

Jem.

7

21

Feb.

6

20
Mar.

3

17
Apr.

1

15
May

29

12 26

10 24

June

July

7

21
Aug.

4

18
Sept.

2

16
Oct.

30 13

27

11 25

Nov.

Dec.

8

22

5

134
133
'

'

19 5

19

Jan.

Prepared by Federal Reserve Bank of St. Louis

2
)r.

0

SOURCES OF THE BASE
Averages of Daily Figures

12

(Millions of Dollars)

Federal Reserve Credit
Holdings of Securities
Discounts & Advances
Float
Total

Nov. 20, 1968

Nov. 27, 1968

$

$

53,564
511
2,637
56,711*

Seasonally Adjusted
Reserve Adjustment

Other Sources of Base
Gold Stock
Treasury Currency Outstanding
(-)
Treasury Deposits at Federal Reserve
(-)
Treasury Cash Holdings
(-)
Foreign Deposits with Federal Reserve
(-)
Other Federal Reserve Accounts (Net)
(-)
Other Federal Reserve Deposits

+
-

53,006
582
2,227
55,814*

Change from Nov
to Nov. 27
$
558
71
+
410
897
-

56,637
4,422
61,059

55,465
4,396
59,861

-

1,172
26
1,198

10,367
6,792
615
765
155
189
443

10,367
6,801
645
776
219
839
420

+
+
+

0
9
30
11
64
650
23

+
-

Total

15,370

15,947

+

577

Source Base (Not seasonally adjusted)

72,080*

71,760*

-

320

Source Base Seasonally Adjusted
Reserve Adjustment

71,729
4,422

71,275
4,396

-

454
26

76,151

75,671

-

480

* Totals do not add due to rounding.

NOTE. - "Other Federal Reserve Accounts (Net)" is treated as a net liability of the Federal Reserve in the table,
"Member Bank Reserves, Federal Reserve Bank Credit, and Related Items," in the Federal Reserve Bulletin.
This entry consists of other liabilities minus other assets. Foreign denominated currencies related to
international "swaps" are included in "other assets." The large increase in foreign currency holdingings caused "other (net) liability accounts" to become a larger negative amount, but since this enters
negatively in the sources of the base, the rise in "swaps" increased sources of the base.


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Federal Reserve Bank of St. Louis