Full text of U.S. Financial Data : Week Ending: February 26, 1975

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Week ending: February 26, 1975
LIBRARY
JUN 0 8 1979


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

In the latest week many commercial banks
lowered their prime lending rate to 8.5 percent.
This is the fifth reduction in the prime rate so
far this year. In spite of the continuing decline
in the banking system’s base lending rate, the volume
of business loans at large weekly reporting commercial
banks has continued to fall. During the latest week
the volume of these loans was $127.7 billion, compared
to a peak of $130.9 billion during the week ended
December 4, 1974. While much of this decline in bank
loans may be the result of a general decline in the
demand for credit, developments in the commercial
paper market also have had some impact. In recent
weeks interest rates in the commercial paper
market have fallen to much lower levels than bank
lending rates. For example, during the latest week,
the prime rate exceeded the rate on four- to sixmonth commercial paper by 225 basis points. Hence,
the attractiveness of this market as a source of
short-term credit has been enhanced.
The rapid declines in short-term interest
rates since late August 1974 has significantly altered
the relationship between short- and long-term interest
rates. From mid-1973 through the end of 1974, long­
term rates were consistently lower than short-term
rates. At their peaks in July 1974, the rates on
90-day certificates of deposit (CDs) and prime fourto six-month commercial paper exceeded the rate on
corporate Aaa bonds by about 360 basis points. Re­
cently, however, this situation has been reversed,
with short-term rates falling below long-term rates.
During the latest week the rate on corporate Aaa bonds
exceeded the rates on commercial paper and CDs by 231
and 225 basis points, respectively.
The continued decline in short-term rates
has also contributed to the continued strong growth
of net time deposits. Net time deposits have grown
at a 9.6 percent rate over the last six months. Over
this same period the yields on three-month Treasury
bills have declined from about 9 percent to about
5.50 percent.

Prepared by Federal Reserve Bank of St. Louis
Released: February 28, 1975

MONETARY BASE

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
1 16

1 M

~ FEB

112

1 10

106

106

104

5

IS

2

16

90

13

27

19

27

10

24

6

22

1973

5

19

9

17

91

14

26

11

25

9

23

6

20

1

1974

LATEST DATA PLOTTED WEEK ENDING:

15

29

12

26

1975

February 26, 1975

THE MONETARY BASE CONSISTS OF MEMBER BANK DEPOSITS AT THE FEDERAL RESERVE AND CURRENCY IN
CIRCULATION (CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF COMMERCIAL BANKS), ADJUSTED
FOR RESERVE REQUIREMENT CHANGES AND SHIFTS IN DEPOSITS. THE MAJOR SOURCES OF THE MONETARY
BASE ARE FEDERAL RESERVE CREDIT AND THE GOLD STOCK. DATA ARE COMPUTED BY THIS BANK. A DE­
TAILED DESCRIPTION OF THE SOURCES AND USES OF THE MONETARY BASE IS AVAILABLE AS REPRINT
NO. 31 FROM THE FEDERAL RESERVE BANK OF ST. LOUIS.

COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
2/27/74

5/29/74

7/24/74

8/28/74

8.9
7.4
7.3
7.5
8.2
8.7
7.9
7.5

5.4
5.6
6.2
7.5
8.3
7.2
6.8

3.6
5.2
7.3
8.5
7. 1
6.5

7.5
9.6
10.6
8.4
7.5

9/25/74 10/23/74 11/27/74 12/25/74

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
7/24/74
8/28/74
9/25/74
10/23/74
11/27/74
12/25/74
1/29/75
2/26/75

2

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

11.2
12.0
8.8
7.7

13.4
8.6
7.5

6.5
5.4

1.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIERi/
FEDERAL RESERVE CRED I T 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

RATIO

MULTIPLIER

2.521
2.498

I I I I I I I l

1 1 1

< 1 I 1

LATEST DATA PLOTTED WEEK ENDING:
BILLIONS OF DOLLARS
104 ---------- ,-------------,-----

BILLIONS OF DOLLARS
----- ------------- -------- -1 104

-

COMPOUNDED ANNUAL RATES
OF CHANCE. AVERAGE OF
-----THE FOUR WEEKS ENDING
FEBRUARY 26. 1975 FROM
- THE FOUR WEEKS ENDING:

FEDERAL RESERVE CREDIT

UK5.

5 19

2

16 SO

IS 27

13 27

10 24

6 22

5 19

3 17 31

14 26 11

25

9 23

6 20

4

NOV

MILLIONS

DEC

18

1

13 29 12 26

1973
LATEST DATA PLOTTED WEEK ENDING: February 26,

1975

1/ RATIO OF MONEY STOCK ( Ml 1 / MONETARY BASE.
2/ DEFINED TO INCLUDE HOLDINGS OF SECURITIES, LOANS, FLOAT AND ’'OTHER'' ASSETS ADJUSTED FOR
SIQqI?^ENT CHANGES AND CHANGES IN REQUIREMENTS DUE TO SHIFTS IN DEPftsiTS AMONG
CLASSES OF BANKS.
DATA ARE SEASONALLY ADJUSTED BY THIS BANK.
x


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
225

BILLIONS

213.0
213.6
215.7

220

215

210

205

III!

11 Li L 1 1

2 16 SO IS 27 19 27

FEB

MAR

10 24

22

9 19

9 17 91

APR

14 28 11 29

AUG

9 29

SEP

8 20

NOV

1

1.111

19 29 12 26 12 26

DEC

FEB
1975

1874

MAR

LATEST DATA PLOTTED WEEK ENDING. FEBRUARY 19, 1975
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.fl RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING.
2/20/74

5/22/74

7.4
5.6
4.6
4.2
4.0
4.3
2.6
2.2

4.6
3.0
2.7
2.6
3.4
1.2
0.8

7/17/74

8/21/74

9/18/74 10/16/74 11/20/74 12/18/74

TO THE AVERAGE
OF FOUR WEEKS
ENDING.
7/17/74
8/21/74
9/1S/74
10/16/74
11/20/74
12/18/74
1/22/75
2/19/75


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

-1.6
-0.7

0. 1

1.5
-0.9
-1.2

-0.3
0.7
2.4
-0.8
-1.1

1.9
3.8
-0.5
-1.0

4.9
-1.0
-1.5

-2.9
-2.9

-7.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
295 p-------- 1-------------1—

BILLIONS OF DOLLARS
----- ------------- ---------- 295

BILLIONS
282.2

282.4

281.4
281.8

284.3
283.7

5 19

2 16 90 19 27 19 27 10 24

FEB

MAR

6 22

5 19

9 17 31

APR

14 26 11

AUG

1973

25

9 29

1974

LATEST DATA PLOTTED WEEK ENDING;

February

6 2Q

4 16

NOV

SEP

DEC

1

15 29 12 26

1975

19,

1975

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.
THE MONEY STOCK CONSISTS OF DEMAND DEPOSITS PLUS CURRENCY AND COIN HELD BY THE NONBANK PUBLIC.

COMPOUNDED ANNUAL RATES OF CHANGE,

2/20/74

5/22/74

7/17/74

8/21/74

1.0
1.6
2.6
3.7
1.6
1.4

1.9
3.2
4.5
1.7
1.4

AVERAGE OF FOUR WEEKS ENDING;

9/18/74 10/18/74 11/20/74 12/18/74

TO THE AVERAGE
OF FOUR WEEKS
7/17/74
8/21/74
9/18/74
10/16/74
11/20/74
12/18/74
1/22/75
2/19/75


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

7.7

6.4
5.7
5.3
5.3
5.7
4.2
3.9

5.1
4. 1
3.9
4.2
4.8
3.0
2.7

4.2
5.7
1.9
1.5

7.0
1.6
1.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

YI ELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
iV5

PERCENT
■=i 13.5

r-

13.0

0
-

12 5
0

PRIME BAMC
LOAN RATE

5
0
5
COMMERCIAL PAPER

0
5
0
5

CORPORATE AAA BONOS

0
5
0
5
0
5
0
5

4 16

JAN

1

I IS
FEB

15 29 12 26 10 24

7 21

5 19

2 16 90 IS 27

11

25

6 22

6 20

JUN
JUL
1074

9 17 91

14 26 14 28

FEB
1975

MAR

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: FEBRUARY 28, 1975

1975
JAN.

FEB.

MAR.

3
10
17
24
31
7
14
21
28 *
7
14
21
28

90 DAY
CD'S saee

PRIME
COMMERCIAL
PAPER
4-6 MONTH

PRIME
BANKERS’
ACCEPTANCES

Aaa BONDS

CORPORATE

MUNICIPAL
bonds nae

9.36
8.57
7.81
7.31
6.78
6.55
6. 43
6.49
6.31

8.84
7.83
7.53
6.85
6. 48
6. 45
6.35
6.28
6.25

9.08
8.33
7.66
7.03
6.59
6.34
6.47
6.26
6.30

8.93
8.91
8.84
8.78
8.74
8.68
8.63
8.59
8.56

7.08
6.99
6.90
6.59
6.54
6.34
6.27
6.40
N.A.

_____———.
* AVERAGES OF RATES AVAILABLE.
He* BONO BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
««f SEVEN-DAY AVERAGES OF SECONDARY MARKET RATES FOR THE WEEK ENDING WEDNESDAY TWO DAYS
EARLIER THAN DATES SHOWN.
CURRENT DATA APFEAR IN THE BOARD OF GOVERNORS* H.9 RELEASE.
N.A. - NO"' AVAILABLE
PREPARED BY FEDERAL RESERVE BANK 0? ST. LOUIS


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

SELECTED SHORT-TERM

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT
14.0
13.5

13.0

13.0
12.5

12.0
FEDERAL FUNDS RATE
11.5

11.0
10.5
10.0
9.5
THREE-I

INTH TREASURY
IKET YIELD

9.0
8.5

8.0
7.5

DISCOUNT RATE

7.0
8.5

6.0
5.5
5.0
4 18

1

15

1

15 29 12 26 10 24

7 21

5 19

2 16 50 15 27

11

25

8 22

6 20

3 17 51

JUN
JUL
1974

14 28 14 28

FEB

0

MAR

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING, FEBRUARY 28. 1975

1975
JAN.

3
10
17
24
31
FEB.
7
14
21
28 X
MAR.
7
14
21
28

FEDERAL
FUNIS SB*

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

7.35
7.70
7.22
7. 17
6.99
6.46
6.28
6.29
6. 15

6.96
6.59
6.54
5.98
5.68
5.61
5.65
5.25
5.46

7.26
7.23
7.32
7.36
7.23
6.91
6.92
6.71
6.83

6.77
6.68
6.66
6.69
6.67
6.59
6.58
6.63
6.65

* AVERAGES OF RATES AVAILABLE.
WK SEVEN-DAY AVERAGES FOR WEEK ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
CURRENT DATA APPEAR IN tHE BOARD OF GOVERNORS’ H.9 RELEASE.


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

PREPARED BY FEDERAL RESERVE BANK OF ST.

LOUIS

7

TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILL I QMS OF DOLLARS

BILLIONS OF DOLLARS
440
430
420

TOTAL TIME DEPOSITS
410
400
3S0
380
370
360
350
340
330
320
NET TIME DEPOSITS*
310
300
2 14 90 19 27 1 3 27 10 24

FEB

MAR

4 22

3 IS

9 17 51

APR

M 24 11

AUC

29

8 29

4 20

4 14

NOV

SEP

DEC

1

15 28 12 24 12 24

FEB
1975

1974

MAR

LATEST DATA PLOTTED WEEK ENDING. FEBRUARY 19. 1975
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
* NET TIME DEPOSITS ARE DEFINED AS: SAVINGS DEPOSITS. TIME DEPOSITS OPEN ACCOUNT PLUS TIME
CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF *100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
2/20/74

5/22/74

7/17/74

8/21/74

9.5
9.3
8.9
8.7
9.4
9. 1
9.2
9.4

9.6
8.8
8.5
9.6
9. 1
9.2
9.6

7.5
7.4
9.2
8.6
8.9
9.4

6.7
9.5
6.6
9.0
9.6

9/18/74 10/16/74 11/20/74 12/18/74

TO THE AVERAGE
OF FOUR WEEKS
ENDING.
7/17/74
8/21/74
9/18/74
10/16/74
11/20/74
12/18/74
1/22/75
2/19/75


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

1 1.0
9.4
9.6
10.2

10.4
10.3
10.9

8.2
9.6

11.4

PREPARED BY FEDERAL RESERVE BANK OF ST.

LOUIS

MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OP DOLLARS

BILLIONS OF DOLLARS

MONEY STOCK PLUS TOTAL TIME DEPOSITS

MONEY STOCK PLUS NET TIME DEPOSITS Hal

5 19

2 16 90 13 27 19 27

FEB

10 24

6 22

5 19

3 17 31

14 26 11

25

9 23

1973

6 20

4

NOV

MAR

DEC

18

1

15 29 12 26

1974

LATEST DATA PLOTTED WEEK ENDING:

February 19, 1975

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
** Mi IS DEFINED AS: CURRENCY, DEMAND DEPOSITS PLUS NET TIME DEPOSITS (SEE PAGE 8).

•

MONEY STOCK PLUS NET TIME DEPOSITS (M2)

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
2/20/74

5/22/74

7/17/74

8/21/74

8.6
8.0
7.4
7. 1
7.5
7.5
6.8
6.8

7.5
6.6
6.3
7.0
7.1
6.3
6.3

4.4
4.7
6.1
6.3
5.5
5.6

4.4
6.5
6.7
5.5
5.7

9/18/74 10/16/74 11/20/74 12/18/74

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
7/17/74
8/21/74
9/18/74
10/16/74
11/20/74
12/18/74
1/22/75
2/19/75


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

7.8
7.7
6.0
6. 1

8.8
6.2
6.3

4.2
5.0

3.9

PREPARED BY EEDERAL RESERVE BANK OF ST.

LOUIS

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
NOT SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
96
94
92
90

SB
86
84
82
80
78
78
74
72
70
68

66

»
BILLIONS OF DOLLARS
96

—

—

-

-

V
V

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

64
0

e
LI 1 1 1
JAN

1 1 1

1 1 1

INI

FEB

MAR

APR

i

l1

1 1
MAY

1 1 1 J 1 1 1 JJJL _LLL 1 1 1 1 -1 1 1

ig
1 1 1 Jill -LU-i-111-

JUN
JUL
1974

DEC

AUG

SEP

OCT

NOV

JAN

FEB
1975

MAR

LATEST DATA PLOTTED WEEK ENDING, FEBRUARY 19, 1975
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
5lE^YAREP0RT'lNGCC0MlERaALSBANKSePOS,T 'SSUED IN DEN0M1


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

1_____

~

1975

IONS OF 8100,000 OR MORE BY LARGE

NONEY AND TIME DEPOSIT BATA----------------------------------------- 1

BILLIONS
CERTIFICATES CERTIFICATES
NET TIME
OF DEPOSIT
OF DEPOSIT
DEPOS1TS K
NOT SEAS. AOJ.

M2 m

--------------------JAN,

1
8
15
22
29
FEB.
5
12
19
26
MAR.
5
12
19
26

92.7
92.8
92.3
91.9
91.7
90.2
90.1
88.6

93.1
93.3
92.9
92.7
92.8
93.0
92.9
92.5

330.8
332.4
334.0
334.0
334.6
334.8
337.0
337.3

615.1
614.5
616.3
616.3
616.0
616.6
621.2
621.0

* SEE FOOTNOTE PAGE 8.
mu SEE FOOTNOTE PAGE 9.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

94
92
90
88
86
84
82
80
78
76
74
72
70
68
66
64
0

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS IN THE NATION
AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

4.5

BILLIONS OF DOLLARS
-------- ---------- --------4.5

---------------.------------.------

lan

millions,

JAN. 22
FEB.

594

5

Z 16 90 19 27 19 27 10 24

JAN

FEB

MAR

8 22

9 19

MAY

APR

JUN
JUL
1974

9 17 91

14 28 11 29 9 29

AUG

SEP

OCT

6 20

NOV

4 18

DEC

I

19 29 12 26 12 26

JAN

FEB
1975

MAR

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 26, 1975

BUSINESS LOANS

( COMMERCIAL

BILLIONS OF DOLLARS

AND

INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
134

— COMPOUNDED ANNUAL RATES
— OF CHANGE, AVERAGE OF .
_ THE FOUR WEEKS ENDING
FEBRUARY 19, 1975 FROM
— THE FOUR WEEKS ENDING:
“
DEC. 18,
— NOV. 20,
— OCT. 16,
__SEP. 18
AUG. 21

1974
1974
1974
1974

132
130

-10.0
-4.9
-0.6

128
126

15.6

124
122
120
118
116
114
112

JAN. 15

110
108
2 16 90 19 27 19 27 10 24

FEB

MAR

8 22

5 19

9 17 31

APR

14 28 11

AUG
1974

SEP

29

9 29

6 20

4 18

NOV

DEC

1

15 29 12 26 12 26

FEB
1975

MAR

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 19, 1975


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

MEMBER BANK DEPOSITS
SUSJECi lO KtSEKVt REQUIREMENTS
(CREDIT PROXY )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIOMS OF DOLLARS
515 r=----------- ,----------- ,-----IT
-

COMPOUNDED ANNUAL RATES OF CHANCE,
AVERAGE OF THE FOUR WEEKS ENDING
FEBRUARY 19. 1975 FROM THE FOUR
WEEKS ENDIN&X
CREDIT
CREDIT
PROXY

-PROXY
~ DEC.
- NOV.

r

BILLIONS OF DOLLARS
--------- ---------------------13 515

ADJUSTED

1974

oct.

CRED11 PROXY ADJUSTED 1/

“ SEP.
= AUG.
Z MAY
-FEB.

1974
1974

CREDIT PROXY

B.11UQNS
CREDIT

PROXY.

CREDIT
PROXY

ADJUSTED
495.9

495. 1
495.5

496.1

2 16 30 13 27 13 27 10 24 6 22 3 19
JAN

FEB

MAR

APR

MAY

JUN

3 17 31 M 28 11
JUL

AUG

SEP

1974
LATEST DATA PLOTTED WEEK ENDING. FEBRUARY 19,

4 18

1 13 » 1Z 26 12 26
FEB
1975

MAR

1975

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

*'

12

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

!^a^ot^’nS«^t1S,$^CIAL PAPER’

borrowings of

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS