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•

—---------------------------------- —
RESEARCH LIBRARY
Federal Reserve Bank

U

S. FInRnCIRL

DOTH

of St. Louis
r ■

umsr m

Week ending: February 26r 1969

The money stock, adjusted for fluctuations in
Treasury deposits at commercial banks, has increased at
a 5.9 per cent annual rate in the past three months,
about the same as in the past year (page 3). In
most recent weeks growth of the actual money stock,
which consists of private demand deposits plus currency
the hands of the public, has been held down by an
sual build-up of Treasury deposits. The actual
ey stock has risen at a 4 per cent rate in the last
ee months, compared with a 6 per cent increase in
the past year (page 3).

t

The monetary base has increased at a 6.4
per cent annual rate in the last three months, not
significantly different from the 6.5 per cent rate in
the past year (page 2). The base is the total credit
issued by the Treasury and the Federal Reserve to the
private sector of the economy. Total member bank re­
serves have grown at an 11 per cent rate in the last
three months and 6.8 per cent in the past year.
Large certificates of deposit in commercial
banks have declined from $24.3 billion in early
ember to $20.1 billion on February 19, as a result

:

market interest rates rising relative to rates
mercial banks are permitted to pay (page 6). This
$4.2 billion decline has been the major reason for the
decline in total commercial bank time deposits (page 7)
and money plus time deposits (page 4), and the levelling
off of total commercial bank credit (page 12) since
December. Although such a disintermediation places
strain on the liquidity of commercial banks, it has
little effect on the total amount of credit extended
in the economy.


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

Most market interest rates have risen mod­
erately during January and February after rising sharply
from October through December (pages 8 and 9). Rates
on highest grade corporate bonds averaged 6.67 per cent in
the first half of this week, up from 6.53 per cent in late
December and 6.10 per cent in October. Yields on three
month Treasury bills have declined seasonally from a
high of 6.20 per cent in late December to an average
of 6.05 per cent during the three days ending February 26.
Member bank borrowing from Federal Reserve
Banks has averaged $836 million in the past four weeks
compared with a $541 million average for the four weeks
ending three months ago (page 10). This increased
borrowing probably reflects a decline in banks' liquidity
and has contributed to continued monetary expansion.
Other sources of funds to banks have been relatively
expensive,as interest rates on Federal funds and short­
term assets have remained high compared to the discount
rate. Treasury bill rates and Federal funds rates have
averaged 60 and 100 basis points, respectively, above the
discount rate during the past four weeks. On average
since 1961, these market rates have been about 6 basis
points below the discount rate.

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: February 28,1969

MONETARY BASE [!_
FEDERAL RESERVE CREDIT J2
Averages of Daily Figures

of Dollars
78

77

Billions of

Seasonably od juitsd by this bank.
Annual rates of change, average of four weeks
ending Feb. 26, 1969 from four weeks ending:
Monetary Base F.R. Credit

+ 6. V
/ 4,V
+ (..£

t

1957-1968

75
Monetary Base
74

§

73

72

Federal Reserve Credit

s

70

1/ Uses of the monetary base are member bank
reserves andv 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
1968 Review of this bank

56

55

F.R. Credit

19p8-69
"V

S9-7

Q&Cs

<£■1.3

•fl.C
bo.}*
<e.A-

4/. A-

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

54

60.}-

r>

Latest data preliminary
Latest data plotted week ending: Feb. 26, 1969
53

<r
V

4

18 1
Oct.


1967
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

15 29
Nov.

13 27 10 24
Dec. Jan.

7

21
Feb.

6
20
Mar.

1 15
May

29 12
J

6

10 24
July

968

7 2L *4 18
Aug.
Sept.

30

13 27
Nov.

11 25
Dec.

tttti
1969

1/
MOlE^^klCK MONEY STOCK PLUS U.S.^TOV'T. DEMAND DEPOSITS
Seasonally Adjusted
Averages of Daily Figure

Billions of Dollars

Billions of Dollars

I I

1 1

|2oa

Annual rates of change, average of four weeks
ending Feb. 19, 1968 from four veeks ending:
..
„

--

___

Hover

Stock

Money Stock
Plus
P.S. Gov't. Deposit

+- 3-3

1957-1968

-/■ 3.0

- Money Stock plus
-U. S. Government
~jDemand Deposits

Money
Stock

Money Stock plus _ .
U, S. Government
Dtraand Deposi
±
188

Money Stock

-L87
— L86
-L85

— L83

\l

Current data on money 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".
2/ D.S. Government demand deposits, all commercial banks
seasonally adjusted by this bank.

- .81
-180

_ Latest data preliminary
_
.
1 Latest data plotted week ending: Feb. 19, 1969

1967

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

21
June

July
1968

Aug.

4
Sept.

22

5

19

Oct.
1969

5

19

2

16

30

MONEY STOCK PLUS TIME DEPOSITS*
Averages of Daily Figures
Seasonally Ad justed

Billion* of Dollars

Billions of Dollars

Annual rates of change, average of
four weeks ending Feb. 19, 1969 fr<
four weeks ending:

1957-1968

/?

data appear in the June 1968 Federal Reserve Bulletii
For trend of money stock plus time deposits by monthi
Trends".

---- Latest data preliminary

____
---- Latest data plotted week ending: Feb. 19, 1969

4

iB


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

1

15

29

13 27

10 24

7

3

17

1

15

29

.26

10 24

7

8

22

5

19

5—]Q

2

BUSINE
.OANS
Large Com
cia I Banks
Wednesday Figures

Billions of Dollars

Billions of Dollars

Seasonally ad justed by this bank.
-- Annual rates of change, average of
____
--- four weeks ending Feb. 19, 1969 from-—
--- four weeks ending:
----- Aug. 21, 1968
~+~May 22, 1968
~ Feb. 21, 1968

+ 73.0

4

-3

+/£■ 8

1960-1968

7 H.oo

MILLIONS OF DOLLARS
1968-69

file,.

UNADJUSTED

7

77.474

SEASONALLY
ADJUSTED

7/ 4 74
70,772
74,703

?/ 9f7

73, ///

__ Current and year ago unadjusted data appear in
__the Board's H.4.2 release,t Seasonal adjustment
__computed by this bank using 1962 through 1967 data.

Latest data preliminary
Latest data plotted:
Fi

10 24


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

6

20

3

17

1

15

29

12 26
June

10 24
July

7

21
Aug.

4

18
Sept.

2

16

30 13

27 11

25

22

5

19

5

19

16 30
Apr.
1969

14 28
May

Prepared by Federal Reserve Bank of St. Louis

11 25 9
23
June
July

CERTIFICATES OF DEPOSIT \l
Large Commercial Banks
Wednesday Figures

Billions of Dollars

Billions of Dollars

Annual rates of change, seasonally unadjusted data
average of four weeks ending Feb. 19, 1969 from
four weeks ending:

1964-1968

__Millions of_Dollars
1968-69
7Ur. 6
13, Vo 7

/3

4

18


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

1

15 29

13

27 10 24
Jan.

\Zi, 3° 1

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

_ Latest data preliminary
__ Latest data plotted: Feb. 19, 1969

20

\ 2-3 6 tO

-27

<

\Z3,28S-

Zo

7

21

6

20 3
Mar.

17

1

15 29

12
June

10 24
July
1968

7

21
Aug.

4

18 2
Sept.

16

30

13 27 11

25

8

22

Prepared by Federal Reserve Bank of St. Louis

Mar.

Apr.

TIAUHpEPOSlTS*
AM Commercial Banks
Averages of Daily Figures
Seasonally Adjusted

Bill ions of Dollars

218

212

210

ffFfffWRTTff
Annual rates of change
. four weeks ending Feb.
four weeks ending:
Nov. 20, 1968 -OAug. 21, 1968 -S-8-S
May 22, 1968 ■/ f 7
Feb. 21, 1968 -A
1957-1968

Billions of Dollars
218

average of
1969 from

H2
210

9-9

7-/2. <9

201

:o£

202

2 00.9

200

200

192
190

190

188

186

186

18k
182

18k

/nt-ci
fiu, i 2o3.7
//

2 Si-/

/* 209

180

182

r

2f 2a7 6
0**.. / 2ci /
« f 203 3
if

jdj.y

jj

ikj./.

29 2e/-3
US io/.c
JJU AO 1.0
ff 2LC0.9 P

170

168

168

* 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:Feb

160

tn 'j i
6 20
dept.

4


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

18 1 15 29 13 27
Oct.
Nov.
Dec.
1967

10 2k
Jen.

7

21
Feb.

6 20
Mar.

3 17
Apr.

1

15 29 12 26 10 2k
May
June
July
1968

7 21
Aug.

lo 30 13 27 11 25
let.
Nov.
Dec.

5

12
Jan.

19 5 19
Feb. Mar.
1969

Prepared by Federal Reserve Bank of 3t. Louis

2
Apr.

t
YIELDS ON SELECTED SECURITIES
Per Cent

Avrogei of Doily Rate« End«d Fridcy

Per Cant
-3 Month

Corporate
3-5 Year

SSS

S12

Prime Commercial
Loan Rate

Corporate
Aaa Bonds

Three-Month Treasury
Bill Market Yield

Discount Kates
5.00

Long Term
Govenanent Bonds

ja^est data plotted are atere^es
r i 1 I I I I 1 I I I » I I
I I I

I T I

22
rt.
fc

6

20

Oct.

3 17

Not.
1967

1


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

15

Dec.

29 12

26

Jan.

9

I I I I

23

Teh.

8

1

I « ' '' »

22 • 5

Kr.

19

Apr.

3

L f I. L.
111 I-L1.IJ-1
17 31 14 20 12 26 9 23
*Kr

June July
A
1968

Aug.

6

20
Sept.

4

18

Oct.

1

15
Bov.

29 13

27 10
Dec.

24
Jan.

7

21

7

21

Feb.
Mar.
19^

Prepared by Federal Reaerre Bank of St. Louis

9
SELECTED SHORT-1WM INTEREST RATES
Averages of Daily Rates Ended Friday

Per Cent

9.00
Prime
Commercial
Paper
4-6 Month

Bankers'
Acceptances

90 Day
CD'S **

Federal
Funds

1968-69

Commercial Pape*
__4-to-6 Month
.

Bankers1
Accept

- Discount Rate

Federal Funds Rate

Latest data plotted are averages of rates available for the week ending: Feb. 28, 1969

8

22

6

20
3 IT 1
Oct.
Nov.
1967

15 29
Dec.

12 26
Jan.

9 23
Feb.

‘AVERAGES OF RATES AVAILABLE

“SOURCE: SALOMON BROTHERS AND HUTZLER
http://fraser.stlouisfed.org
SECONDARY MARKET RATE ON 90-DAY PRIME CD'S.

Federal Reserve Bank of St. Louis

8 22
Mar.

5 19
Apr.

3

17
May

31

14 28 12 26 9 23
June
July
Aug
1968

6

20

4

18

1

15

29

13 27

10 24

7

21

7

21

1969
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
2,00°

"i

'III
EXCESS
RESERVES BORROWINGS

1,900

10
Millions of Dollars

FREE
-RESERVES

WEEKLY DATA

V7f

S3I

|

S3.

vjy

36 8

S7S

*2.0

8f<?

)ol

./3 2P

101

i

.32.

|

ifk

-3-SC

-iSS
-SQ9

-73S
1,300
1,200

1,100

BIWEEKLY SETTLEMENT PERIODS

WEEKLY RESERVE PERIODS -

1,000

Borrowings

Net Free Reserves

1/ Because of the change in Regulation D
] placing all member hanks on a one-week
.( reserve adjustment period, beginning with
■ the week ending September 18, 1968 the

-

"
.

Latest data preliminary
Latest data plotted week ending: Feb. 26, 1969

1,000
13

27

11 25


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

8

22

6

20

3

I 1 1.
17 31 1^

28 13 27

above reserve data are reported on a
one-week period.
-

10

2b-

8

22

5

19

3

17

31 l^

28 11

25

9

23

6

20

1

15 29

12 26

Prepared by Federal Reserve Bank of St

12

26

9

1,000

-

DEMAND DEPOSIT COMPONENT OF MONEY STOCK*
Averages ADa ily Figures
Seoson^ly Ad usted

Billions of

lions of Dollars

Annual rates of change, average of
___ four weeks ending Feb. 19, 1969 from
;--- - four weeks ending:
Aug. 21, 1968 + 1..3
May 22, 1968 y- f. if
Feb. 21, 1968y- g-fj
1957-1968

WEEKLY DATA
1968-69
------ 13-week centered
---- -— moving average

xjitc

i

/y?.y

H IW‘I»
/I IW2
„ jf /S'O.'i
m3
Ckyru. /
r 1 If/- 9
Weekly

//

150,3J,50.0

at I
q-sU- f
/<z- 0-9.1 „
/9 ISQ.q P

* 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

Latest data preliminary
_
Latest data plotted week ending Feb. 19, 1969

5C

monthly release entitled "Monetary Trends".

20

4

Sept.


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

18

1

Oct.
1967

15

29 13

Nov.

27

lo 24

Dec.

Jan.

7

21
Feb.

6

20
Mar.

3

17
Apr.

1

15
May

29

12 26

10 24

June
July
1968

7

21
Aug.

4

18
Sept.

2

16
Oct.

30 13

27

H 25

Nov.

Dec.

8

22
Jan.

5

19 5

19

Feb. Mar.
1969

Prepared by Federal Reserve Bank of St. Louis

2
Apr.

TOTAL CREDIT
Lar^e.Comme rcia I Banks
Wednesday Figures

Billions of Dollars

230

——T"i r r

Billions of Dollars
r-,
230

SootonoMy od|uittd by tbit bank

— Annual rates of change, average of
“ four weeks ending Feb. 19, 1969 fn
four weeks ending:

-1960-1968

Millions of Dollars
SEASONALLY
UNADJUSTED ADJUSTED

1968-1969

<3X0.001

llo.SlW

3-11,353

-JI9.7Y9

J/9,4.7?
31 f,133
111,0 73
11 3, 3 VS

HU A3

las, is I
las.31b
aas. iss
aa a.3L7
4 fe J
li
aao, no

1SLI.H7S
13/.SA1

in.lfo P

7

21
Feb.


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

6 20
Mar.

3
17
Apr.

J^O. OAf P

Current and year ago unadjusted data appear in the
Board's H.4.2. release.
Seasonal adjustment com- .
puted by this bank using 1961 through 1968 data.

Latest data preliminary
Latest data plotted:
10 24
Jan.

13.3.X! 7
333 sHg

1

15 29
May

12 26 10 24
June
July
1968

7

21

4

18

2

16 30

13 27

11 25

8

22

5

19

5

19
Mar.

2

16 30 14 28
>r.
May
1969

11 25
June

Prepared by Federal Reserve Bank of St. Louis

9
23
July

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