Full text of U.S. Financial Data : Week Ending: February 27, 1974

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&-U.

Week ending: February 27, 1974
LIBRARY

JUN 08 19TS
Since late January the prime bank loan rate has been reduced by
100 basis points. This recent decline reflects changes in both supply and
demand factors affecting bank credit. On the supply side, the monetary
base has increased at a rapid 8.7 percent rate in the last three months.
Also, there have been some important changes in the costs to banks of
supplying bank credit, as shown on page 10.
In mid-August the secondary
market rate on 90-day large CDs exceeded the prime rate by about 150 basis
points. Since mid-September the 90-day CD rate has fallen sharply, and
consequently this situation has been reversed. In the four weeks just
before its series of recent declines, the prime rate, on average, exceeded
the 90-day CD rate by about 60 basis points. Also, the reduction in
marginal reserve requirements on large CDs, which occurred in mid-December,
reduced the cost to banks of supplying bank credit. In the economist's
vernacular, all of these factors operated to shift the supply curve for
bank credit to the right.
The demand curve for bank credit has been affected by, a decrease
in the price of alternative sources of credit and a less optimistic outlook
for economic activity in 1974.
Issuance of commercial paper is an
alternative to borrowing from commercial banks. The 4-6 month commercial
paper rate has fallen sharply since late summer of 1973. In mid-August the
prime bank loan rate was on average 100 basis points below the commercial
paper rate. The prime rate, in the four weeks just prior to its recent
successive declines, exceeded the commercial paper rate on average by about
100 basis points. Even with recent declines, in the last four weeks, it
has averaged about 135 basis points above the commercial paper rate.
Recent forecasts of slowing in real growth in the economy also tended to
reduce the demand for bank credit. The recent acceleration in inflation
probably led to an upward revision in the public's anticipations of the
intensity and duration of inflation, hence operating to shift the compo­
sition of the demand for credit from short-term sources such as commercial
banks into the long-term bond market. These factors acted to shift the
demand curve for bank credit to the left.
Although an analysis of factors influencing bank credit indicate
a decrease in the demand for bank credit relative to what prevailed in the
first nine months of 1973, changes in supply factors have been strong
enough recently to result in a substantial increase in the growth of bank
credit. In the last four weeks, although the prime rate has fallen by 100
basis points, business loans have risen by about $825 million compared to
the previous four weeks, and the adjusted credit proxy has risen by about
$1 billion over the same comparison periods.


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

Prepared by Federal Reserve Bank of St. Louis
Released: March 1, 1974

2

MONETARY BASE
AVERAGES OF DAILY FIGURES
BILLIONS OF DOLLARS

106

BILLIONS OF DOLLARS

SEASONALLY ADJUSTED BY THIS BANK

—

5 17 31

14 23 14 23 II 23

9 23

3 20

4 13

JUN

JUL

I

13 29 12 23 10 24

7 21

3 19

2 l« SO 13 27 IS 27

LATEST DATA PLOTTED WEEK ENDING. FEBRUARY 27. 1074
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 THE BASE SEE THE AUGUST 1968 ’‘REVIEW OF THIS BANK.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS END 1NGt
2/28/73

5/30/73

7/25/73

8/29/73

8.6
6.8
6.5
7.0
7.2
7.6
7.9
7.6

4.8
4.7
5.8
6.4
7.0
7.6
7.2

1 .6
4.3
5.6
6.6
7.4
6.9

7.4
8. 1
8.8
9.2
8.4

9/26/73 10/24/73 11/28/73 12/26/73

TO THE AVERAGE
OF FOUR WEEKS
END 1NGt
7/25/73
8/29/73
9/26/73
10/24/73
11/28/73
12/26/73
1/30/74
2/27/74


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

9.8
10.2
10.4
9. 1

10. 1
10.3
8.8

10.9
8.7

7.6

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIER^
FEDERAL RESERVE CREDIT*/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

RATIO

MULTIPLIER

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 20,

1974
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

-

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
___ THE FOUR WEEKS ENOING
FEBRUARY 27. 1974 FROM
THE FOUR WEEKS ENDING.
DEC.
“
NOV.
OCT.

26,
“
28
24

AUG. 29
MAY
30
----- FEB. 28

1973
1973
1973
1973

10.0
11.0
9.8
10.9

“

1973
1973

FEDERAL RESERVE CREDIT

1974

3 17 31

14 26 14 23 II 23

FEB

MAR

9 23

6 20

4 16

I

IS 29 12 26 10 24

APR

LATEST DATA PLOTTED WEEK ENDING. FEBRUARY 27,
1/ RATIO OF MONEY STOCK (Ml ) / MONETARY BASE.

7 21

S 18

NOV

DEC

2

MILLIONS

16 30 13 27 13 27

1974
'

2/ DEFINED TO INCLUDE HOLDINGS OF SECURITIES, LOANS, FLOAT AND • •OTHER*' ASSETS, ADJUSTED FOR
RESERVE REQUIREMENT CHANGES AND CHANGES ifo REQUIREMENTS DUE TO SHIFTS IN DEPOSITS AMONG
CLASSES OF BANKS.
DATA ARE SEASONALLY ADJUSTED BY THIS BANK.

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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

4
DEMAND DEPOSIT COMPONENT OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
21S

208.2
206.9
206.5
208.5
209.3

212.0

210

205

200

S 17 J1

M 21 M 21 II IS

FEB

MAR

APR

9 23

6 20

4 IS

I

IS 29 12 26 10 24

JUN
JUL
1973

LATEST DATA PLOTTED WEEK ENDINGt FEBRUARY 20,

7 21

5 19

NOV

DEC

2 19 90 15 27 IS 27

FEB
1974

MAR

1974

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE. AVERAGE OF FOUR WEEKS ENDINGt
2/21/73

5/23/73

8.8
6.5
4.7
4.4
4.9
5.2
4.2
4.4

7.5
4. 1
3.7
4.6
5.0
3.7
4. 1

7/18/73

8/22/73

9/19/73 10/17/73 11/21/73 12/19/73

TO THE AVERAGE
OF FOUR WEEKS
ENDINGt
7/18/73
8/22/73
9/19/73
10/17/73
11/21/73
12/19/73
1/23/74
2/20/74


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

-4. 1
-2.3
0.6
1.8
0.7
1.6

-2.2
1.8
3.1
1.5
2.4

5.5
6.2
3.3
4. 1

8. 1
3.7
4.6

1.1
3.1

1.1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
275

BILLIONS
270.0
268.9
268.4
270.9
271.9
270

265

260

3 17 31

14 23 14 23 I! 23

FEB

8 23

MAR

latest data plotted week enoingi

6 20

4 13

JUN

JUL

I

February 20,

IS 28 12 26 10 24

7 21

5 18

2 16 30 13 27 13 27

FEB

MAR

1974

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE,
2/21/73

5/23/73

8.7
6.9
5.4
5.2
5.5
5.8
5.1
5.4

7.2
4.6
4.4
5.0
5.5
4.6
5.0

7/18/73

8/22/73

AVERAGE OF FOUR WEEKS ENDING.

9/19/73 10/17/73 11/21/73 12/19/73

TO THE AVERAGE
OF FOUR WEEKS
ENDING 1
7/18/73
8/22/73
9/19/73
10/17/73
11/21/73
12/19/73
1/23/74
2/20/74


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

-1.7
-0.2
2.0
3. 1
2.4
3.2

0.0
2.9
4.2
3.0
3.9

5.8
6.6
4.5
5.3

8. 1
4.8
5.7

3.3
5.0

3.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

6

TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

TOTAL TIME DEPOSITS

NET TIME DEPOSITS*

i 17 II

14 U 14 it II

FEB

MAR

APR

9 23

6 20

4 IS

I

IS 29 12 26 10 24

7 21

5 19

2 16 30

JUN
JUL
1973

15 27

FEB
1974

IS 27

MAR

LATEST DATA PLOTTED WEEK ENDINGi FEBRUARY 20. 1974
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.
* NET TIME DEPOSITS ARE DEFINED ASs SAVINGS DEPOSITS. TIME DEPOSITS OPEN ACCOUNT PLUS TIME
CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF 9100.000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
2/21/73

5/23/73

7/18/73

8/22/73

9.9
10.4
10.5
10.9
11.4
11.2
11.6
11.9

10.8
11.0
1 1.5
12.2
1 1.8
12.2
12.5

11.9
12.5
13.2
12.5
12.9
13.2

12.6
13.6
12.5
13.0
13.4

9/19/73 10/17/73 11/21/73 12/19/73

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
7/18/73
8/22/73
9/19/73
10/17/73
11/21/73
12/19/73
1/23/74
2/20/74


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

14.5
12.8
13.4
13.8

12.4
13.3
13.8

12.2
13.3

15.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
660 ==---------- ---------- -----

BILLIONS OF DOLLARS
-------- ---------- --------3 660

MONEY STOCK PLUS TOTAL TIME DEPOSITS

MONEY STOCK PLUS NET TIME DEPOSITS

3 17 31

14 23 14 23 II 23

FEB

MAR

9 23

3 20

4 13

1

13 29 12 23 10 24

APR

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 20.

7 2

3 19

NOV

DEC

2 16 30 13 27 13 27

1974

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

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE. AVERAGE OF FOUR WEEKS ENDING:
2/21/73

5/23/73

7/18/73

8/22/73

9.4
8.6
8. 1
8. 1
8.6
8.6
8.4
8.7

8.9
7.8
8.0
8.7
8.7
8.5
8.9

5.0
6.2
7.6
7.8
7.7
8.3

6,5
8. 4
8.5
8.2
8.8

9/19/73 10/17/73 11/21/73 12/19/73

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
7/18/73
8/22/73
9/19/73
10/17/73
11/21/73
12/19/73
1/23/74
2/20/74


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

10.3
9.8
9.1
9.7

10.3
9.2
9.9

7.9
9.3

9.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

8

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

3 17 31

14 28 14 28 II 25

FEB

MAR

9 23

6 20

4 18

I

IS 29 12 28 10 24

JUN
JUL
1073

APR

BILLIONS OF DOLLARS

7 21

3 19

NOV

DEC

2 16 30 13 27 13 27

FEB
1074

MAR

LATEST DATA PLOTTED WEEK END IN©. FEBRUARY 20. 1874
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS***H.6 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF *100.000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.


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

MONEY AND TIME DEPOSIT DATA

1974
JAN.

FEB.

MAR.

2
9
16
23
30
6
13
20
27
6
13
20
27

CERTIFICATES
OF DEPOSIT

BILLIONS
NET TIME
DEPOSITS*

64.3
64.8
64.7
65.8
67. 1
66.9
67.0
66.5

302.2
302.5
303.7
304.8
305.3
306.4
307. 1
307.9

M2 m
572.5
572.0
573.7
573.7
573.7
577.3
579.0
582.6

* SEE FOOTNOTE PAGE 6.
** SEE FOOTNOTE PAGE 7.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MEMBER BANK DEPOSITS
SUBJECT TO RESERVE REQUIREMENTS
(CREDIT PROXY )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS Of DOLLARS
465 p----------- ---------- -----

BILLIONS OF DOLLARS
-------- ---------- --------n «65

CREDIT PROXY ADJUSTED 1/

CREDIT PROXY

1 17 II 14 » 14 21 II U

FEB

0 23

MAR

« 20

* t«

1 IS 20 12 20 10 24

JUN
JUL
1973

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 20,

7 2!

3

NOV

DEC

10

2

10 30

13 27

FEB

13 27

MAR

1974

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.9 RELEASE.
1/ INCLUDES MEMBER BANK DEPOSITS, BANK-RELATED COMMERCIAL PAPER, EURODOLLAR BORROWINGS OF
U.S. BANKS, AND CERTAIN OTHER NONDEPOSIT SOURCES.

1974

JAN.
FEB.

SILL14N&

16
23
30
6
13

20


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

CRED 1 T
-gfiOXY

CRED1T
PROXY
ADJUSTED

446. 1
446.7
446.2
448.3
446.7
445.9

453.5
454.5
454.0
455.5
454.5
453.8

COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF THE FOUR WEEKS ENDING
FEBRUARY 20, 1974 FROM THE FOUR
WEEKS ENDING:
CREDIT
CREDIT
PROXY
PROXY
ADJUSTED
DEC.
NOV.
OCT.
SEP.
AUG.
MAY
FEB.

19.

21,
17,
19,
22,
23,
21 .

1973
1973
1973
1973
1973
1973
1973

8. 4
6.0
4.7
4.8
5.2
7. 1
9.6

8.5
6.7
5. 1
5.0
5.5
7.8
10.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT

11.0
90 DAY CO’S 1/

10.5
10.0
COMMERCIAL PAPI

9.5
9.0

8.5

CORPORATE

8.0

BONDS

7.5
7.0

RIME BANK
OAN RATE

8.5

6.0
5.5
MUNICIPAL
BONDSi

5.0

4.5

5 10
JAN

2 16
FEB

1 16 50 11 tT II H

I 22

6 20

5 IT (I 14 II 12 26
SEP
OCT

0 28

T 21
DEC

1975

4 10
JAN

I IS
FEB
1974

I IS 29

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. MARCH 1, 1974

CORPORATE
Aaa BONDS

1974
JAN.

4
1
18
25
1

1

FEB.

8

15
MAR.

22

1 X

7.73
7.77
7.85
7.88
7.87
7.82
7.85
7.87
7.87

PRIME
COMMERCIAL
PAPER
4—6 MONTH

5-3 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

MUNICIPAL
BONDS BBR

8.88

6.83

6.52
6.57
6.57
6.57
6.55
6.50
6.50
6.56
6.59

5. 18
5.22
5.24
5.26
5.20
5. 16
5.18
5.21
N.A.

8.65
8.75

8.68

8.38
7.93
7.75
7.69
7.84

6.88

6.94
7.06
6.94
6.74
6.70
6.76
6.87

8

15

22

29

X AVERAGES OF RATES AVAILABLE.
m BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
N.A. - NOT AVAILABLE
1/ DATA FOR 90-SAY CD RATES APPEAR ON PAGE 11.

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

PREPARES BY FEDERAL RESERVE BANK OF ST.

LOUIS

0

SELECTED SHORT-TERM

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
11.0 t—

PERCENT

—i 11.0

yarn mr
FEDERAL FUNDS RATE

DISCOUNT RATE

111.
I 1.1 1 1 I I H I I L.11 IlilJ I I I I I ll I I I I 11 1 I 111 I 1 I 11 I I I LI
5 18 2 16 2 16 SO 15 2T II 23 6 22 6 20 9 17 51 H 26 12 26 0 29 7 21

111

I I I

JAN

JAN

FEB
1974

FEB

MAR

APR

MAY

JUN

JUL
1973

AUG

SEP

OCT

NOV

DEC

4 10

1

IS

I I I I
1

IS 20

MAR

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. MARCH 1. 1974

1974
JAN.

FEB.

MAR.

4
1 1
18
25
1
8
15
22
1 X
8
15
22
29

3-MONTH
TREASURY
BILLS

FEDERAL
FUNDS MK

PRIME
BANKERS'
ACCEPTANCES

90 DAY
CD'S MR

7.49
7.72
7.89
7.99
7.55
7.03
7.06
7.07
7.27

9.87
9.76
9.77
9.60
9.47
9.13
8.93
9.07
8.81

8.75
8.75
8.75
8.75
8.55
7.85
7.75
7.75
7.79

9.19
9.08
9.15
9.12
8.87
8.27
8.08
7.96
8.07

X AVERAGES OF RATES AVAILABLE.
MR FEDERAL FUNDS AND CD RATES ARE SEVEN-DAY AVERAGES FOR WEEK ENDING
WEDNESDAY TWO DAYS EARLIER THAN DATES SHOWN. CURRENT DATA APPEAR IN
THE BOARD OF GOVERNORS' H.9 RELEASE.
CO DATA ARE SECONDARY MARKET RATES.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS
iill

1182
1220

13

1153

20
27

1377
1255

BORROWINGS

M a II a II »

JAN

BILLIONS OF DOLLARS
-------- ---------- -------- -3 4.0

MILLIONS

JAN. 23
30

S 17 SI

IN THE NATION

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS
4.0 1=---------- 1--------- 1—

FEB

MAR

APR

0 25

MAY

C 70

4 IS

I

JUN

JUL

AUG

15 20 12 20 10 24

SEP

OCT

7 21

S 10
DEC

NOV

1973

2

10 30 13 27 15 27

JAN

FEB

MAR

1974

LATEST DATA PLOTTED WEEK ENDINGt FEBRUARY 27,

1974

BUSINESS LOANS
(COMMERCIAL AND INDUSTRIAL )
WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
120

~ COMPOUNDED ANNUAL RATES OF CHANGE
— AVERAGE OF THE FOUR WEEKS ENDING
— FEBRUARY 20, 1974 FROM THE FOUR
_WEEKS ENDING:
BUS I NESS
~
BUSINESS
LOANS
—
LOANS
ADJUSTED
NOV.

1 18
116
114
.BUSINESS LOANS ADJUSTED 1/

21

112

no
MAY 23.
FEB. 21

1973

11.4

108
106
BUSINESS LOANS

104
102
100
BUSINESS-----BUS I NESS
LOANS
LOANS
^JUSTEft-----JAN.

16

98
96
94
92
90

! 17 II

II a II a II 23
FEB
MAR

0 23

0 20

4

13

I

13 20 12 26 10 24

7 21

5 10

1973
LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 20,

13 27

1974
1974

1/ INCLUDES LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS TO OWN SUBSIDIARIES,
HOLDING COMPANIES, AND OTHER AFFILIATES.


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

2 10 50 13 27

FOREIGN BRANCHES,

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS