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S^AftO^

Week ending February
The moneta. ry base has risen at a 7.4 per cent
annual rate in the p asc three months, compared with 6.5
per cent ia the past year and a 3.3 per cent trend
Federal Reserve credit,
rate fro™. 195 7 to 19 67 (page 2).
a major determinant ox the growth of the base, has de­
dined at a 1.3 per cent annual rate in the last
■
three months, compared with an 8.5 per cent rise in the
past year (page 2).

declined since late December as a result of the disinter­
mediation of time deposits. Money plus time deposits
"averaged $394.9 billion in the past four weeks, compared
with $397.1 billion in the four weeks ending December 25.
Credit of large commercial banks which generally has a
trend similar to money plus time deposits, has risen at
a 7.8 per cent rate in the past three months (page 12),
compared with a 14 per cent rate in the previous six
months.

The continued rapid growth of the monetary base,
in the face of slower growth of Federal Reserve credit
since mid-November, is attributable largely to an increase
in the Federal Reserve System’s holdings of foreign
denominated currencies (due to swap arrangements).
..nese
assets are not included in the traditionally defined
Federal Reserve credit, but are a source of the monetary
base.
Also, Treasury Deposits at Federal Reserve Banks,
which influence the base but not Federal Reserve credit,
have declined since. November causing the base to increase
faster than Federal Reserve credit.
The money stock, consisting of private demand
deposits and currency in the hands of the public, averaged
$193.0 billion in the four weeks ending February 5, up at
a 5 per cent rate from three months ago (cage 3).
Growth of money has been restrained in recent weeks by a
shift in deposits from private accounts (included in money)
to Treasury accounts (not included in money) .
'-he none;
stock has increased 6 per cent in the past year comparec
with a 2.6 per cent trend rate from 1957 to 1967.
Time deposits at commercial banks have declined
billion since the week ending December 25 in re­
sponse to high market interest rates relative to races
banks are permitted to pay on time deposits.
Both tne ^
money stock plus time deposits and bank credit (total loans
and investments) of large commercial banks have also
$3.5


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

Borrowing from the Federal Reserve has averaged
$804 million in the past four weeks, up from an average
of $531 million in the four weeks ending December 18.
(page 10).
This increase in borrowing probably re­
flects disintermediation, the large demand for bank loans,
and high market interest rates.
Borrowed reserves are a
source of funds to member banks, alternative to acquiring
funds from additional deposits, the Federal Funds market,
or selling short term assets.
As market rates of interest
on alternative sources of funds rise relative to the rate
at which banks can borrow from the Federal Reserve (the
discount rate), borrowing from the Federal Reserve becomes
a relatively cheap source of funds to banks.
During the
three days ending February 12 the three-month Treasury
bill rate averaged 6.11 per cent (page 8), and since late
December it has averaged 65 basis points above the dis­
count rate.
The Federal Funds rate averaged 6.75 per
cent in the first half of this week (page 9), and has
averaged 85 basis points above the discount rate since
late December.

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

Prepared by Federal Reserve Bank of St. Louis
Released: February 14,1969

MONETARY BASE [T_
FEDERAL RESERVE CREDIT £.
Averages of Daily Figures

Billions of Dollars

2
Billions of Dollars

_L Seasonally adjusted by this bank
Annual rates of change, average of four weeks
ending Feb. 12, 1969 from four weeks ending:
Monetary Base
F.R. Credit
Nov.
May

i-7. “/

13,1968

-A3

15,1968

1957-1967

Monetary Base

Federal Reserve Credit

-f 1968-69

Monetary
Base

F.R.

Credit

7S.2

1/ Uses of the monetary base are member bank
reserves and currency held by the public
and nonmember banks, adjusted for reserve
requirement hhanges and shifts in deposits.
1968 Review of this bank.
2/ Defined to include holdings of securities,
loans, and float, adjusted for reserve
requirement changes and changes in requirements"
due to shifts in deposits among classes of
banks.
Latest data preliminary
Latest data plotted week ending: Feb.

6 20
Sept.

4


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

1

15
Nov.

1967

29

13 27 10

24

Jan.

7

21

12,

6

1969

20
Mar.

3

17

15

29 12

26

10

24

7

21 '4

IS

Sept.

June
.968

2

0

13

27

11

25

8

22

19

Jan.

5

19

Mar.
. 1969

2

MONEY STOCK*
Averages ofDoiiy Figures
Seasonally Adj

Billions of Dollars

3
Dolls

205

—j—|Annual

rates of change
average of
jfour weeks ending Feb. 5, 1959 from

204

" four weeks ending:

203

Nov.
I Aug.

6, 1968

iMay
I Feb.

8, 1968

7, 1968

7, 1968

-f-S-O
y- 3.6

202

y. ^./
1^7

201
200

1957-1967

199
198
197
196
195
19^
193

192
191

/c

13-week centered
moving average

m.o

187

H 193.1

.

.

... AT/?i-7
8 tf*7

Weekly

.
.

-(L~/ /W.7

s m.'/

.

/rrntf
Al/93£ .

i.

/f/,7

-

y

..
■

■htfi9*!r p i j

Latest data preliminary
Latest data plotted week ending: Feb. 5, 1969

6

20

k

18
Oct.


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

r i

i i

* 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".
3
July

Aug

27 11 25

8

22

5

19

5

19
Mar.

Prepared by Federal Reserve Bank of St,. Louie

2
Apr

MONEY STOCK PLUS TIME DEPOSITS*
Averages of Daily Figures
Billions of Dollars

Billions of

easona liy A

Annual rates of change, average of
four weeks ending:

+ 7-3

GcJ-i

39<~£, ■
39 7.il

*
Latest data preliminary
Latest data plotted week ending: Feb. 5, 1969


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

Jan.

June

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".

July

Sept.

Mar.

Prepared by Federal Reserve Bank of St. Louis

Apr

lioi
78

BUSINESS LOANS
L cs r g a Commercial Banks
Wednesday Figures

of Dollars

TTT T

Seasonally ad

77

~Aug.
_.May
_.Feb,

bank.

78

--Annual rates of change, average of
"four weeks ending Feb. 5, 1969 from
"four weeks ending:
TNov. 6, 1968
+/?./

76

»JS ted by this

Billions of Dollars

7, 1968
8, 1968
7, 1963

77

-J-/3.2
-f~ / 2i,,V

76

/<=?.&

'
1960-1967
75

75

j_
_L
1

.

74

74

■

j V
l \ i
Mn
J

1.

4

_

73

7
73

J

yjl

•

■

j

_j
il

72

72

vl

_L

)

\f

71

i
JS'
L

59

&

\
■

JS
J
/
s / sf

MILLIONS OF DOLLARS

—
1Q6^ -69
Bic..

//
/<?
'

Zf

j

til

/
>7
/r

y

13

i
h /

68

;

\j
67

_J —

rmL
-f-jiss

7Mil
V, 682
12, 168
73 033
12, f€8

1 j

H _j

70

L._ . • —4_: _ j.__- •
ADJUSTED
7/112

-7?
O?'
/
03 J

69

10,112
72. !0 O

-

7/
7i, ?U
13, 31/
73, 836,
13,S8S
'll 170
'7,
1
O

68

'

_
J

|
66

j

-

ft \

.

70

71

j

_

65

64
i J
preliminary
plotted:
Feb.

1I }1
7 21
Feb.


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

6

20
Mar.

3

17
Apr.

Current and year ago unadiusted data appear in
the Board
s H.4.2 release. Seasonal adjustment
1967
rrmrouted bv thin hrmlc using-

5, 1969

0
10 24
Jan.

.1

j
1

1

15 29
May

_1

1

12 26
10 24
June
July
1958

7
21
Aug.

4

18
Sept.

2

16
Oct.

1 1
30 13

1 JJ-L
8 22

27 11 25
Nov.
Dec.

Jan.

-1I

5

19
Feb.
.

1 rf

1|
5
19
Mar.
.

2

16 30
Apr.
1969 ’

14 28
May

Prepared by Federal Reserve Bank of Sr. Louis

•

11 25 9
23
June
July

'
ion;

27

of Dollars

.

CERTIFICATES OF DEPOSIT \±
Large Commercial Banks
Wednesday Figures

0

Billions of Dollars

Annual rates of change, seasonally unadiusted data
of four weeks ending Feb. 5, 1969 from
average

26
Feb. 7,

1968

25

24

23

22
Millions of Dollars
1968-69

21

TUtr.

XZ.Ho'l
2 3,38*
23 6*0
Z'/,30 7

//

20

C
/3
Zo
37

27.360

19

18

17

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

Latest data preliminary
Latest data plotted:
I

If

Negotiable time certificates of deposit

16

0 "*
20

4


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

18

1

15 29

13

27 10 24
Jan.

Dec.

7

21

20 3

17

T

15 29

May

12

i6 10

June

24

July
1963 '

7

21
Aug.

4

18
Sept.

2

16
Oct.

30

13 27 11
Nov.

25
Dec.

8

22
Jan.

Prepared by Federal Reserve Bank of St. oouis

Mar.

Apr.

.ons

TIME DEPOSITS*
AH v. o m ns e r c 1 a
o f D a i iy
Ave rag
q u re s

Dollars

218
216

Annual rates of change, average of

214
from four weeks ending
Nov. 6, 1968 -f-3.6

212
210

206
204

Th

203

202
200
193
196
194

192
190
188

186
184

182

180
178

176
174

172
170
168
166
164

162
160
158

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

Latest data preliminary
Latest data plotted week ending: Feb


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

l-M-t I (-1-1111 (• ' !'! I T! 1 TT11 ~
7

21

6 20

3

17

1

16

>6

10

Prepared by Federal. Reserve Bank of St. Louis

2

YIELDS.ON SELECTED SECURITIES
Averages of Doily Rates Ended Friday

Per Cent

1968-69

Per Cent

; 3-5 Ye,

S.79

S- 70

&>< 0/

&. fo 3
d • d Id

Prime Commercial
Loan Rate

Corporate
Aaa Bonds

Three-Month Treasury
Bill Market Yield

Discount Rates
Long Term
Government Bonds

,atest data plotted are averages of rates available for the week ending: Feb.
8

22

6

20

3 17

1


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

15

29 12

26

9

23

8

22

5

19

14,

1969

3
June

July

Prepared by Federal Reserve Bank of

Louis

SELECTED SHORT-TERM INTEREST RATES

Per Cent

Ave rages of Daily Rates Ended Friday
nrn u_u_lli i i
i i
{rr

TTTT
Prime
jCommercial■
i Paper
- -4-6 -Month ■ —
1968-69 1
“

rn

Prime -

’er Cent

i i i i i

9-00

■
90 .Day

Federal
Funds

&. eo
(, ,/c

tW-

7

_ Commercial Paper
_4-to-6 Month

Bankers

asm

Discount Rate-j

.Federal Funds Ratc^

8

22

Sept.

6

20 3 1?
Oct. Nov.
1967

1

15 29
Dec.

12 26

9

Jan.

23

8

2;

14 &3

12

26 9

23

6

20

4

18

1

15

29

13 27

10 24

7

21

y

^AVERAGES OF RATES AVAILABLE
**S0URCE: SALOMON BROTHERS AND HUTZLER

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

Prepared, by Federal Reserve Bank of St. Louis

'

10

BORROWINGS AND EXCESS RESERVES.'
AH Member Banks in the-Nation
Averages of Daily figure

Millions of Dollars

EXCESS
RESERVES

'

BORROWINGS

Killions of Dollars

FREE
-RESERVES

WEEKLY DATA

- S2.

-3 2*l

'201 ■
-133 ■
' 1/X
- zfC
~1tUj
-SVo
—O'r-f

—(a-3 / P
BIWEEKLY SETTLEMENT PERIODS

WEEKLY RESERVE PERIODS

Borrowings

■ 1/ Because of the change in Regulation D j
" "placing all member banks on a one-week
'
j reserve adjustment period, beginning with.

above reserve data are reported on a
Latest data preliminary
Latest data plotted weel

13

27

11 25


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

8

22

l 6I LLL 3
20

.7

31

14

28 13 27
Mar.

10

24

8

22

5

19

3

17

31 i4

28 11

25

9

23

6

20

12 26

12

26

Apr

prepared by Federal Reserve Bank of St. Louis

DEMAND DEPOSIT COMPONENT OF MONEY STOCK*
Averages of Daily Figures

\\

.

Billions of

Billions of Dollars

Annual rates of change, average of
four weeks ending:
Nov.

6, 1968

Feb.

7

1957-1967

WS530.Y DA2&
19SS-S9
A'** • 9 /H9‘

13-week centered
moving average

i
1*19, L
H9-2
m3

'I
H
•?r

Qsww. /

~

/S~o-3

/5/?

«?<i

Weekly

?
//

/Tao

.?? HU n
r m/

* 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".

Latest data preliminary

20

4

18

Sept.


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

1

15

29 13

P

27

10

2k

7

21

6

20

3

7

21

4

18

2

16

30 13

27

ll 25

8

22

5

19 5

19

Sept.

Prepared by Federal Reserve Bank of St. Louis

2