Full text of U.S. Financial Data : Week Ending January 15, 1969

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

■

•
RESEARCH LIBRARY

J

Federal Reserve Bank
of St. Louis

IB S 7 1998

Week ending January 15, 1969

Rapid monetary expansion, which began in early
1967, has continued in most recent periods. In the last
six months the money stock has risen at a 5.7 per cent
annual rate (page 3), almost as fast as the 6.5 per cent
rate during the previous year and a half. The monetary
base, which by one view largely determines the trend
growth of money, has increased at a 7.3 per cent rate since
early July (page 2), similar to the 6 per cent rate during
the previous 18 months and more than twice as fast as
3.3 per cent trend rate from 1957 to 1967.
Growth of Federal Reserve credit, traditionally
T^nined as System holdings of securities, discounts and
advances, and float, has slowed in recent months (page 2).
However, Federal Reserve credit defined to include "Other
Federal Reserve Accounts''^/ and the above items, has con­
tinued to increase rapidly at a 9.3 per cent annual rate
in the last three months.
(The dotted line on page 2 shows
Federal Reserve credit including "Other Federal Reserve
Accounts.") Assets denominated in foreign currencies are
the largest item in "Other Federal Reserve Accounts." A
large increase in these assets since late November has been
an important factor supplying reserve funds and has offset
some of the declines in other components of Federal Reserve
credit.

«

The money stock, the monetary base, and Federal
erve credit have shown continued net increases since the
count rate was raised effective December 18. Even money
.
s time deposits (page 4) and credit at large commercial

— See page A-4 in the statistical tables of the Federal
Reserve Bulletin.


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

banks have increased in spite of disintermediation
facilitated by Regulation Q.
In addition to rapid increases in money and
other monetary aggregates, the intensity of money use as
measured by income velocity (GNP divided by money stock)
has increased since early 1967. This velocity of money
was 4.63 in the fourth quarter of 1968 and 4.59 in the
third quarter, compared with 4.49 in the first quarter
of 1967 (page 12).
Market interest rates, after rising sharply
from late November to late December, have remained at
high levels (pages 8 and 9). During the three days ending
January 15, yields on three-month Treasury bills averaged
6.14 per cent, compared with 5.47 per cent in late Novem­
ber and about 5 per cent in August.
Regulation Q limitations on maximum interest
rates commercial banks may pay on time deposits have re­
cently prevented banks from offering rates competitive
with those on other market instruments. Consequently,
commercial banks have lost large certificates of deposit
since early December (page 6), and total time deposits
have declined since late December (page 7). Since the
decline of time deposits reflects the increased relative
attractiveness of alternative financial channels, for ex­
ample the commercial paper market, it does not necessarily
mean restriction of total credit in the economy. Indeed,
a decline of time deposits releases reserves which may
contribute to monetary expansion.

Rates of change reported in this release are
intended to serve as summaries which may he
useful in analyzing recent developments.
Prepared by Federal Reserve Bank of St. Louis
Released: January 17,1969
j

2

MONETARY BASE LL
FEDERAL RESERVE CREDIT
Averages of Daily Figures

Billions of Dollars

Billions of Dollars

Seasonally adjusted by this bank.
'

Annual rates
ending Jan. 15, 1969 from four weeks ending:
Monetary Base F.R. Credit 2/

’

_

77,

F.R. Credit 3/

-j- / O. *2—

July 17. 1968

7- 7-3

1957-1967

-f 3.3

Monetary Base

Federal Reserve Credit

F.R. Credit including--^
"Other F.R. Accounts" - ■*-

1/ Uses of the 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
Review of this bank.
_
_

1968-69

F.R. Credit F.R. Credit

2J As traditionally 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.
3/ Includes in addition "Other Federal Reserve
Accounts".

— Latest data preliminary
—Latest data plotted week ending: Jan. 15, 1969

5

20

18

1


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

15

29

13 27 10

24

7

21

6

20
Mar.

Sept.

1967

3

17

1

15

29 12

26

10

24

7

21

4

1R

Sept.

June

1968

2

16

30

13

27

11

25

8

22

Jan.

5

19
Feb.

1969

MO
STOCK*
Averages oTbaily Figures
Billions of Dollars

Seasonally Adjusted

Billions of Dollars

Annual rates of change, average of
four weeks ending Jan. 8, 1969 from
four weeks ending:

73

Oct.
9, 1968
+
July 10, 1968 -h£. 7
Apr. 10, 1968 9 7. |
Jan. 10, 1968 / « 3
1957-1967

WStKLY DATA

1968-69

1 no °
H93
/?/.«
Hlf
//l?
/9/9

/7ft t

/<n.&

61 193.3

V tfS.O

13-week centered
moving average

H 113.1
.

/?■?.;

Weekly
CL-/ /7J-7

„

'S 1933 P _

* 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".
I 1 I 1 I 1 M 1 I I 1 1 I 1 I I 1 1 1 1 I I

Latest data preliminary
Latest data plotted week ending: Jan. 8, 1969
I
6 20
Sept.

k

I

I

I

I

I

I I

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


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

I

ll-l

I

10

2k

7

Jem.

I

I I I

21
Feb.

I

1

I

3 17
Apr.

1

15
May

29 12

26

10 2k

June

July

1968

7 21
Aug.

2

16 30
Oct.

13 27 11 25
Nov.
Dec.

5

19
Feb.

5

19
Mar.

1969
Prepared by Federal Reserve Bank of St. Louis

2
Apr.

MONEY STOCK PLUS TIME DEPOSITS*
Averages of Daily Figures

4

Billions of Dollars

Seasona lly Ad

Billions of Dollars

Annual rates of change, average of
four weeks ending Jan. 8, 1969
from four weeks ending:

1957-1967

30

JfO.J

/3

39A-0

//

3<?7. 3l.

■

current data appear in the Board’s H.6 release.
Back
data appear in the June 1968 Federal Reserve Bulletin.
Latest data preliminary
see this bank's monthly release entitled "Monetary Trends".

6

20

k

18

Sept.


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

1

15

29

13 27

10 2k

7 21

6

20

3

17

l

15

29 12

26
June

10 24
July

1968

7

21

Aug.

k

18
Sept.

2

16

30

13

27 11 25

8

22

5

19

5

19
Mar.

Prepared by Federal Reserve Bank of St^Touis

2
Apr

BUSINGS LOANS
rge Corrmiercia I Ban
Wednesday Figures

Billions of Dollars

Billions of Dollars

Seasonally adjusted by this bank.
Annual rates of change, average of
from four weeks ending:

Jan.

10, 1968

/■ //• i

1960-1967

70<3<oC
57
//

.7/./7P
,. .

7/

7/J73-

7/ <3 7«a—

7/6^

/£.
^

20

h


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

18

1

15

nrrrrm
27 10 24 11111
7 21
6

29 13

7<J,?^

7«3 7 *7
7?fcrY /

-- Current and year ago unadjusted data appear in
the Board's H.4.2 release.
Seasonal adjustment
computed by this bank using 1962 through 1967 data.

-------— latest data preliminary------—------Latest data plotted:
Jan.

6

74?/^-

20

3 17

1

15 29

12

26

10 24

7

2

16

3013

27

U 25

8

22

5

19

5

19

Prepared by Federal Reserve Bank of St. Louis

2

CERTIFICATES OF DEPOSIT [1
Large Commercial Banks
Wednesday Figures

Billions of Dollars

Billions of Dollars

Annual rates of change, seasonally unadjusted data,
average of four weeks ending Jan. 8, 1969 from
four weeks ending:

Jan.

10, 1968

+

/v? .*/

1964-1967

Millions of Dollars

loi

Current and year ago data appear in the
Board1s H.4.2, release.
1/ Negotiable time certificates of deposit
in denominations of $100,000 or more.

Latest data preliminary
Latest data plotted:

20

4

18


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

1

15 29

13

27 10

24

7

21

6

20 3

17

1

15 29

12

26 10

24

7

21

4

18

2

16

30

13 27 11

25

8

22

5

19

Sept .

Prepared by Federal Reserve Bank of St. Iouis"

5

19

2

TIMEWEPOSITS*
All Commercial Banks
Averaaes of Daily Figures
Seasonally Adjusted

Billions of Dollars

Billions of Dollars

218

Annual rates of change, average of
four
from
Oct.
July
Apr.
i Jan.

weeks ending Jan. 8, 1969
four weeks ending:
9, 1968 //!!
10, 1968 -h /L. 7
10, 1968
10, 1968 -h //•

+ /SU

1957-1967

/ug-L*)
aaz

/fit

<f 198.7
/t> 99?./
3j
3C
6
/J
30
37
JD*~ *
/)

Zf 3ef.u>

X

nil
Qvk!
/ 8

-f—|
Latest data plotted week ending: Jan.


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

18

1

Oct.

15

29 13

Nov.

1967

27

Dec.

10 24
Jan.

8, 1969

7

2°'*!
c7r j.y p

I I I I 1 1
* 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'.

test data preliminary

4

loaa
*0O.V
,}ao, t
ao/.'i
30/J
303-9
lo3.7
loi.t

21

6 20

Feb.

Mar.

1

15 29 12 26
May
June

10 24
July

-mat ti-i-r-t-rtrri-m-n-i-t
'Mil m
16
7 21
Aug.

30 13

Nov.

Bcc.

Jan.

1968
Prepared by Federal Jeserve Bank of St. Louis

YIELDS ON SELECTED SECURITIES
Av«ro9«s of Daily Rates Ended Friday

Per Cent
9.00

3-MONTH
THE AS. 3-5
BILL
YEAR

/f*4
Oa* -/ Si!

LONGTERM

Per Cent
9.00

CORPORATE
A
L OS

n

IS ~S~3i
Af s+o
/ S,+8
? -T^S
if
H S'*3
a°i Ml

G*c.

* f-ti

S3 3

S. si

13 S.Sf

jo 6.03
iksA2

Qan. 3

t>■ AS

* /o j.n

Corporate
Aaa Bonds
N" b.6i

Three-Month Treasury
Bill Market Yield

Discount Rate

tr^vs iv
Long-Term
[Government Bonds

Tfi

Latest data plotted are averages of rates available for the week ending: Jan. 17, 1969

8

i- » i

22

Jept.

6

i

i

i i ■ i t i ■ i i i i i i i i i i » i i i i i i i i—i i
3 17
1 15 29 12 26 9 23 8 22 5 19 3
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.

20

1967


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

i

, ; ,-i-j i i u i i l i ; i i
17 31 1^ 28 12 26 9 23
May
June
July
Aug.

1968 '

6

20
Bept.

4
18
Oct.

1

15
Nov.

29 13

^.00
27 10

Dec.

>
Jan.

7

1

Feb.

7

21
Mar.

1-uw
Prepared by Federal Reserve Bank of

s^Kouis

9
SELECTED SHORT-I^KM INTEREST RATES
Averages of Daily Rates Ended Friday

Per Cent

9.00

TTTT
8.50

—

PRIME
COMMERCIAL
LARGE
PRIME
BANKERS'
~ PAB3Tr~~
~90 DAY FEDERAL
CD'S ** _ FUNDS.
4-6-MONTH ACCEPTANCES

S.7S
S'. lS
8 *00

sn
(..00
6-00
<&.00

S-W
S.?3
6>.00
(,.oo
&.c3

6, oq

6./0
6-/S'

6-ZS

667

66°
6-76'.

(..ire

6-S0

6.5*

6.58
6.5H

6.65

e.fo
6./6

6-63

*

sss
s.90
S.9S
~ SIS'
L,.oc
60S
e/o

r.n
s.?g

sss
S', fg
7-50 —

stS

S73
~ s-tf

•S'- 7?
s.st

—

SCJ

6.65

S fg
S-9S
SgJ
SIS
S-gg
CJ6
SM
S.og
SfiV
S6>o

8.00

sis

& 03

6 So

Conmercial Paper
4-to-6 Month

s.w

6-Z5-

<6.n
Bankers
Acceptances

6.00

Discount Rate

Federal Funds Rate

Latest data plotted are averages of rates available for the week ending: Jan.

20

6

3

17

Oct.
Nov.
1967

1__ 1__i—1—1
12 26 9
Jan.

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

23

17, 1969

u_i__a__ 1__ 1__ 1__ 1__ 1—1—1—1—i—J—1—1—1—1—1—i

1968

15 29
Nov.

13 27
Dec.

10 2b
Jem.

7

21
Feb.
1969

7

21
Mar.

Prepared by Federal Reserve Bank of St. Louis

lill ions of Dollars

—Mill
M-f
(d

TTTTJTT

/b

io 3
<^/(c

3 73
1

30

(c

'V

/ 9 JL

372.

47s

-7 33

,S~73

-dj’v

4

f

V-l/'

//

a*

n

3-3 j
sf7f

—1—M—1—1—1—f-

1313

1

|

_

1 1 1 1

A

|

i

' S8Z P

.

WEEKLY RESERVE PERIODS 1/

BIWEEKLY SETTLEMENT PERIODS

-Z<77 „

683

____ L

_

/S’sr

1 S63
8 102.
/f tf 6 P

•

ii3
-3c 0
-

/? 33Jm i df 3
4

-333

3 3 A.

/o

3 7

— /0“<r
- m
- H3

3J 7

dJ ~

_

FREE
RESERVES

BORROWINGS

WEEKLY DATA
cry/

33 cr

j

Millions of

rmn

EXCESS
RESERVES

I lk

2,000

10

BORROWINGS AND EXCESS RESERVES
All Member Banks in the Nation
Averages of Daily Figures

J

±r

,
...

1 1

—

...
Borrowings

S

Excess Reserves

— Net Free Reserves I—I

Because of the change in Regulation D
placing all member banks on a one-week
reserve adjustment period, beginning with
the week ending September 18, 1968 the
above reserve data are reported on a
one-week period.

Latest data preliminary
Latest data plotted week ending: Jan.

13

15, 1969

rrm i i i i i 6i i 20i 111
i i i i i i i
3 17 31 14 28

27

11 25

Dept.

Oct.


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

8

22

Nov.
1967

Dec.

Jan.

Feb.

13 27
Mar.

10

24

Apr.

8

22
May

5

19

June

3

17

July

1968

31 14

28 11

Aug.

25

Sept.

9

23

Oct.

6

20
Nov.

k 18
Dec.

1

15 29

Jan.

12 26

12

Feb.

19,,0
Prepared by Federal Reserve bark of dt.

2b

Mar.

DEMAND DEPOSIT CO«pNENT OF MONEY STOCK*
Averages
ily Fig ures
Seasonally Adjusted

Billions of Dollars

Billions of Dollars

Annual rates of change, average of
four weeks ending Jan. 8, 1969 from
four weeks ending:

1957-1967

WEEKLY DATA
1968-69

.Od~X /-/7- 3
■
9 /Y7&
/<*

-

/*/$■

/

A3 /*(,.-^

13-week centered
moving average

-

30 /iJO

Hio

13 /f7«3

AO /if. O

s7 /if. ?
i /if.s'

Weekly

ii 'ift

ir H9.3

f

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".
SS,

___ Latest data preliminary
----- Latest data plotted week ending: Jan. 8, 1969

20

9-


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

18

1
ijbl

15

29 13

7

10 24

7

21

6

as 'if s'
8 /<r/. 9 p

'0

3

17

1 15

29

12 26

10 24

1968

7

21

4

18

r

16

30 13

27

11 25

8

22

5

19 5

19

1969
Prepared by Federal Reserve Bank of St. Louis

2

INCOME VELOCITY OF MONEY
GNP/Money Stock

Annual Rates
of Turnover

5.6

Annual Rates
of Turnover
-I—r
5.6

———

Latest data plotted:

'

195


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

1959

fourth quarter 1968 preliminary

1960

1965

1968
Prepared by Federal Reserve Bank of St. Louis