Full text of U.S. Financial Data : Week Ending: February 10, 1971

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Week ending: February 10, 1971
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The income velocity of money (gross national product divided by
the money stock) was 4.64 in the fourth quarter of 1970, down slightly from
the peak in the fourth quarter of 1969 (page 9); total spending, which was
hampered by the major strike, rose at a slower rate than the money stock.
Historically, velocity has exhibited both cyclical and secular movements.
It usually declines or changes little in recessionary periods and rises
during expansionary periods.
Since World War II the rises have been greater
than the declines, resulting in an upward trend in velocity. From 1952 to 1970
velocity rose at about a 3 per cent annual rate.
The money stock, defined to include private demand deposits
and currency in the hands of the public, has increased at a 4.4 per cent
annual rate in the seven months since the four weeks ending July 1, and at
a 5.1 per cent rate since December 1969 (page 5).
In comparison, money
grew 3.1 per cent in 1969. The demand deposit component of money has risen
at a 4.8 per cent rate since December 1969, compared with 2.4 per cent in
1969 (page 4). The currency component of money has increased at a 6.5 per
cent rate since December 1969, and 6 per cent in 1969.
System holdings of securities, discounts and advances, float, and
other Federal Reserve assets, denoted as Federal Reserve credit, have increased
at a rapid 12 per cent annual rate in the past seven months, and at a 6.4 per
cent rate since December 1969 (page 2). In comparison, this aggregate grew
5.2 per cent in 1969. Most of the recent expansion has resulted from
Federal Reserve purchases of securities. Borrowings have declined from an
average of $1,380 million in the four weeks ending July 8 to $340 million in
the latest four weeks, while System holdings of securities have more than
offset this decline, increasing from $57.7 billion to $62 billion.
Federal Reserve credit is the largest source component of the
monetary base. The base has increased at an 8.6 per cent annual rate in the
past seven months, and at a 6.9 per cent rate since December 1969, after
growing 3.1 per cent in 1969 (page 2). The more rapid growth of these inter­
mediate aggregates than money in recent months was necessary to provide
for moderate monetary expansion and at the same time accommodate the rapid
reintermediation of time deposits into commercial banks.
Short-term market interest rates fell sharply in 1970, and have
continued to decline in 1971 (pages 10 and 11).
Yields on three-month
Treasury bills and four- to six-month commercial paper averaged 3.72 per
cent and 4.63 per cent, respectively, in the three days ending February 10.
These rates are about 1 percentage point below their early January 1971 levels
and about 4 percentage points below their January 1970 levels.


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Federal Reserve Bank of St. Louis

Prepared by Federal Reserve Bank of St. Louis

Released: February 12, 1971

MONETARY BASE 1/
FEDERAL RESERVE CREDIT*'
AVERAGES OF DAILY FIGURES

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

B6

84

Annual rates or
average of four
ending February
from four weeks
“

cnange,
weeks
10, 1971
ending:
Monetary
Base
11.4
8.7
8.9
7.3
7.5
8.6
7.2

9, 1970
- Dec.
Nov. 11, 1970
7, 1970
Oct.
82 "Sept.
9, 1970
Aug. 12, 1970
_ July
8, 1970
June 10, 1970

BILLIONS OF DOLLARS
86

MONETARY BA! E

1971

Feb.

Millions
83,763
83,673
84.797
84,464
83,868
83.797

72

Annual rates of
average of four
“ending February
from four weeks

change,
weeks
10, 1971
ending:
70

-Dec.
Nov.
Oct.
“Sept
Aug.
_July
June

9,
11,
7,
9,
12,
8,
10,

Credit
18.6
12.1
11.7
10.9
11.4
11.8

1970
1970
1970
1970
1970
1970
1970

FEDEFAL RESKRVE CREDIT

68

1971

Millions —

10.0
66

3 17 31

14 28 II

FEB

25 II

MAR

25

8 22

6 20

5 17

MAY

JUN

1

IS 29 12 26

9 23

7 21

4

18

2 16 SO ts 27

JAN

10 24

FEB

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 10, 1971
1/ USES OF 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 ThL BASE SEE THE AUGUST 1968 ‘•REVIEW OF THIS BANK.
2/ DEFINED TO INCLUDE HOLDINGS OF SECURITIES, LOANS, FLOAT AND “OTHER1‘ 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

0

RESERVES
ALL MEMBER BANKS IN THE NATION
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

„
31.5

31.0

31.0

30.5

30.0

30.0

20.5

28.5

20.0

28.5

28.0

27.5

27.5

5 17 St

14 26 II 25 II 23

8 22

6 20

3 IT

I

15 20 12 26

0 23

7 21

4

18

2 16 30 13 27

JAN

10 24

FEB

LATEST DATA PLOTTED WEEK ENDING. FEBRUARY 10, 1071
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.8 RELEASE.
# BREAK IN SERIES DUE TO CHANGES IN REGULATION D EFFECTIVE OCTOBER I, 1070.


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

1971
Jan.
6
13
20

Feb.

27
3
10

Billions
30.6
29.7
30.4
30.2
30.3
30.3

Annual rates of
average of four
ending February
from four weeks
9, 1970
Dec.
Nov. 11, 1970
7, 1970
Oct.
Sept. 9, 1970
Aug. 12, 1970
July
8, 1970
June 10, 1970

change,
weeks
10, 1971
ending:
14.2
12.2
10.2
11.6
14.9
15.4
13.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

4

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

BILLIONS OF DOLLARS

1970-71

BILLIONS OF DOLLARS
170

Billions
165.8
166.2
166.2
165.9
164.9
165.3
165

160

S

17 SI

H 20 11

25

It

25

I I I I

0 22

6 20

3

17

t

15 29

12 20

9 23

7 21

«

!«

2

16 SO

IS 27

JAN

10 24

FEB

LATEST DATA PLOTTED WEEK END INGi FEBRUARY 3, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

Annual rates of change, average of four weeks ending:
5/6/70 6/3/70 7/1/70 8/5/70 9/2/70 9/30/70 11/4/70 12/2/70
to average
of four
weeks ending:
7/ 1/70
8/ 5/70
9/ 2/70
9/30/70
11/ 4/70
12/ 2/70
1/ 6/71
2/ 3/71


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

4.1
4.2
6.5
5.8
4.6
4.8
4.8
4.2

0.4
4.7
4.3
3.1
3.6
3.7
3.1

8.9
6.9
4.8
5.0
4.9
4.1

8.1
4.9
5.2
5.0
4.1

0.7
2.4
2.9

2.2
2.9

5.1

2.2

2.0

3.2

1.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

1970-71
Dec.

S 17 31

BILLIONS OF DOLLARS

Billions
214.7
215.4
215.3
215.1
214.2
214.8

14 28 II 25 II 2S

8 22

6 20

3 17

I

IS 29 12 26

9 23

7 21

4

IS

2 16 30

3 27

10 24

LATEST DATA PLOTTED WEEK ENDINC: FEBRUARY 3, 1071
CURRENT DATA APPEAR IN THE BOARD OF 60VERN0RS1 H.6 RELEASE.

Annual rates of change, average of four weeks ending:
12/31/69 2/25/70 7/1/70 8/5/70 9/2/70 9/30/70 11/4/70 12/2/70
to average
of four
weeks ending:
7/ 1/70
8/ 5/70
9/ 2/70
9/30/70
11/ 4/70
12/ 2/70
1/ 6/71
2/ 3/71


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

5.9
5.8
6.5
6.0
5.5
5.5
5.5
5.1

7.2
6.6
7.4
6.8
6.0
6.0
5.8
5.5

8.0
6.1
4.9
4.9
5.0
4.4

6.6
4.8
4.8
4.9
4.3

1.7
2.8
3.4
2.9

3.1
3.8
3.1

5.1
3.8

3.1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

TIME DEPOSITS
ALL COMMERCIAL BANKS
billions of

1970-71

S 17 31

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

dollars

dollars

Billions
232.3
233.6
234.2
235.7
236.5
237.3

14 28 II 25 II 25

JAN

billions of

8 22

6 20

3 17

I

15 29 12 26

9 25

7 21

4 18

2 16 SO IS 27 10 24

FEB

I960

1970

1971

LATEST DATA PLOTTED WEEK END INGs FEBRUARY 5, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS1 H.6 RELEASE.

5/6/70
to average
of four
weeks ending
7/ 1/70
8/ 5/70
9/ 2/70
9/30/70
11/ 4/70
12/ 2/70
1/ 6/71
2/ 3/71


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

Annual rates of change, average of four weeks ending:
6/3/70 7/1/70 8/5/70 9/5/70 9/30/70 11/4/70 12/2/70

’

9.6
20.9
22.0
23.5
23.8
22.7
24.6
24.6

26.9
26.3
27.1
26.7
24.9
26.8
26.5

33.8
32.2
30.4
27.5
29.2
28.5

26.1
25.4
22.9
25.5
25.2

25.5
22.1
25.4
24.9

18.9
24.2
23.7

24.2
23.5

27.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

460
1970-71

Billions
447.0
449.0
449.5
450.8
450.7
452.1

450

440

430

420

410

400

3 17 SI

14 28 II

25 II 25

8 22

6 20

3 17

I

15 29 12 26

9 23

4

18

2

16 SO IS 27

JAN
1969

1970

10 24

FEB

1971

LATEST DATA PLOTTED WEEK ENDINGs FEBRUARY 3. 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.

5/6/70

Annual rates of change, average of four weeks ending:
6/3/70
7/1/70 8/5/70 9/2/70 9/30/70 11/4/70 12/2/70

to average
of four
weeks ending:
7/ 1/70
8/ 5/70
9/ 2/70
9/30/70
11/ 4/70
12/ 2/70
1/ 6/71
2/ 3/71


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

7.1
12.6
14.0
14.3
14.1
13.6
14.6
14.3

13.9
15.3
15.4
14.9
14.1
15.1
14.8

20.7
18.9
17.4
16.0
16.9
16.2

16.4
15.2
13.9
15.3
14.8

13.7
12.5
14.4
14.0

11.1
14.1
13.6

14.9
13.9

15.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

I

8

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY F I 6URES

BILLIONS OF DOLLARS

9 17 31

M 28 II 25

JAN

I 25

I 22

8 28

3 17

I

15 29 12 26

9 23

BILLIONS OF DOLLARS

7 21

4

18

2 16 30 IS 27 10 24

FEB

JAN

FEB

LATEST BATA PLOTTED WEEK ENDING FEBRUARY 3, 19TI
CURRENT AND YEAR ABO DATA APPEAR IN THE BOARD OF GOVERNORS' H.4.2 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT IN DENOMINATIONS OF *100,000 OR MORE.


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

1970 -71
Dec. 30
Jan. 6
13
20
27
Feb. 3

Millions
26,126
26,217
27,046
27,278
27,190
26,990

PREPARED BY FEDERAL RESERVE BANK OF ST

LOUIS

#


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

Income Velocity of Money
GNP/Money Stock

Annual Rates
of Turnover

n-r

~r

~r

~i

I

rn

i

Annual Rates
of Turnover

i

i

i

i

r o

1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970
Annual rates of turnover computed with quarterly GNP (current dollars) at seasonally adjusted
annual rates, and seasonally adjusted monthly averages of daily money stock.
Latest data plotted: 4th quarter preliminary
Prepared by Federal Reserve Bank of St. Louis

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PER CENT
9.0 ------

PER CENT
------- 9.0

llll

E

CORPt RATE Ai A BON >S

8.5

IN I

8.5
-

8.0

8.0

PRIME :ommei iCIAL
LOAN R 4TE

-

7.5

7.5
-

DISCOU 4T RA

A
V
E

L

1

-

h

5.5

5.0

4.5

4.0

n
i

3.5

3.5

0

6.0

llll
1 1 1 1

t ---------

rm r

tut

i

4.0

T

M IL

4.5

6.5

TV

1 1 1 1

5.0

-

1,

IT

5.5

7.0

_LLLL

.LULL -L IJ -L

6.0

1

F7
_L
T

LIU.

6.5

■

7.0

-

THREt -MONTH TREAJ URY
BILL MARKET YIELC

1 1 1
l l 1
1 1 1
_LLL llll
5 IS
2 18 SO IS 27 IS 27 10 24
DEC
JAN
FEB
MAR
APR

llll
S 22
MAY

1 1 1
5 IS
JUN

1969

llll
1 1 1
1 1 1
1.1 1 1
S 17 SI 14 28 II 25 8 23
JUL
AUG
SEP
OCT

l l I. I I I
6 20 4 18
NOV
DEC

1970

s
llll
1 LL.
I 15 28 12 28
JAN
FEB

1971

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK END INGi FEBRUARY 12,

1970-71
DEC.

4
1 1
18
25
JAN.
1
8
15
22
29
FEB.
5
12*
19
26

CORPORATE
Aaa BONDS

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

7.85
7.78
7.59
7.51
7.48
7.45
7.42
7.36
7. 19
7. 10
7.07

4.97
4.92
4.77
4.82
4.87
4.84
4.51
4.20
4. 19
4.06
3.72

5.81
5.80
5.82
5.96
5.94
5.99
5.78
5.58
5.54
5.49
5.34

5.93
5.89
5.87
6.05
6. 16
6.09
5.96
5.83
5.78
5.80
5.77

1971

* AVERAGES OF RATES AVAILABLE.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

SELECTED SHORT-TERM INTEREST RATES
AVERAGES OF DAILY RATES ENDED FRIDAY

PER CENT
9.5 ------

PER CENT
------- 9.5

COMMERCIAL PAPER
4-TO-fl MONTIh

FEDEFAL FUNHS RATE

5

18

DEC
1969

2

18 SO

JAN

S 27

FEB

IS 27

MAR

10 24

APR

8 22

MAY

5

19

3

17 SI

JUN
JUL
1670

14 28

AUG

II

25

SEP

9 23

OCT

6 20

4

NOV

DEC

18

I

IS 29

12 26

JAN
FEB
1971

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: FEBRUARY 12, 1971


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

1970-71
DEC.

4
11
18
25
JAN.
1
8
15
22
29
FEB. 5
12*
19
26

PRIME
COMMERCIAL
PAPER
4-6 MONTH

FEDERAL
FUNDS

PRIME
BANKERS’
ACCEPTANCES

90 DAY
CD'S**

5.63
5.75
5.75
5.75
5.75
5.68
5.38
4.78
4.53
4.63
4.63

5.50
4,63
5.23
4.91
3.94
4.75
4.00
4.33
4.10
4.10
3.48

5.38
5.48
5.25
5.25
5.25
5.23
4.88
4.48
4.45
4.35
4.13

5.66
5.66
5.64
5.59
5.59
5.64
5.45
5.06
4.84
4.73
4.55

* AVERAGES OF RATES AVAILABLE. FEDERAL FUNDS LAST FIVE DAYS AVAILABLE
** DATA ARE 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

BORRCWINGS

S RESERVES

NET FREE RESERVES

0.8

-

3 17 31

DEC
1969

14 28 II 25 II 25

JAN

FEB

MAR

8 22

APR

8 20

3 17

I

MAY

JUN

JUL
1970

15 29 12 26

AUG

9 23

SEP

7 21

4

OCT

NOV

IB

2 16 30 IS 27 10 24

DEC

JAN
FEB
1971

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 10, 1971


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

1970-71
DEC.

2
9
16
23
30
JAN. 6
13

20

FEB.

27
3
10
17
24

EXCESS
RESERVES
417
136
120
210
434
545
32
88
295
286
183

MILLIONS
BORROWINGS
455
290
399
325
270
407
277
471
354
283
248

FREE
RESERVES
-

38
154
279
115
164
138
245
383
59
5
65

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS