View original document

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

fjese^ac/)
u.
/

1 research

library

Federal Reserve Bank

9

Week ending: January 27, 1971

of St. Louis
MG 2

(

Ho

The money stock, consisting of private demand deposits and

currency in the hands of the public, has risen at about a 4 per cent
annual rate in the past seven months, after rising at about a 7 per
cent rate from December 1969 (page 5). The slower growth over the
past seven months may be viewed as balancing the rapid growth in the
first half of 1970. Over the entire period since December 1969, money
has risen at a 5.4 per cent rate, compared with a 3.1 per cent rate in
1969.
Total time deposits at commercial banks have risen at about
a 28 per cent annual rate in the past seven months and at a 23 per cent
rate in the past eleven months (page 6). In comparison, these deposits
declined at about a 5 per cent rate from December 1968 to February 1970.
Time deposits excluding large CD's grew at a 13.4 per cent rate from
February to December 1970, after a declining at a 2.3 per cent rate in
the previous eight months. These movements of time deposits in 1969 and
1970 were influenced by the relationship between interest rates on com­
petitive instruments and Regulation Q ceiling rates.
During 1969
interest rates on competing investments rose relative to ceiling rates
on time deposits, and by January 1970 the ceilings on short-term large
certificates of deposit were about 2-1/4 percentage points below threemonth Treasury bill rates. In late January 1970, Regulation Q ceilings
were raised and in late June were suspended on large 30- to 89-day
maturity CD's. In addition, as market interest rates have fallen in 1970,
banks have been able to compete more effectively for time deposits.
Flows of funds into other financial intermediaries, notably
savings and loan associations and mutual savings banks, have also grown
rapidly since February 1970.
Savings and loan shares increased at a
rapid 10 per cent annual rate from February to December 1970, compared
with only about a 1 per cent rate from June 1969 to February 1970.
Mutual savings bank deposits increased at a 7 per cent rate from
February to December, compared with about a 3 per cent rate in the pre­
vious eight months. These saving flows have responded to forces similar
to those bearing on commercial bank time deposits.*
Long-term interest rates have moved downward since July (page
10). Yields on highest-grade corporate bonds averaged 7.22 per cent in
the three days ending January 27, compared with 8.44 per cent in July.
Long-term Government bond rates averaged 5.78 per cent in the first
half of this week, compared with 6.57 per cent in July. Yields on Aaa
state and local government securities averaged 4.95 per cent on
January 21, compared with 6.40 per cent in July.

* Interest ceilings on savings at these institutions are regulated by
the Federal Home Loan Bank Board and the Federal Deposit Insurance
Corporation.
Their ceiling rates were also raised in early 1970.


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

Prepared by Federal Reserve Bank of St. Louis
Released: January 29, 7977

r

MONETARY BASE u
A
FED«AL RESERVE CREDIT®

2

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

86

t---------

BILLIONS OF DOLLARS

86

r

Annual rates of change,
average of four weeks
ending January 27, 1971
from four weeks ending:
84

82

-

25,
28,
30,
26,
29,
24,
27,

Nov.
Oct.
■ Sept.
Aug.
July
June
May

1970
1970
1970
1970
1970
1970
1970

Monetary
Base
12.5
9.8
8.2
8.6
8.2
8.4
7.1

ARY BA! iE

1970 -71
Dec. 23
30
6
Jan.
13
20
27

Millions —
83,308
83,192
—
83,747 ~ 80
83,654
84,797
84,464

Annual rates of change,
average of four weeks
ending January 27, 1971
from four weeks ending

Nov.
Oct.
Sept.
Aug
July
June
May

3 IT
DEC
1969

25,
28,
30,
26,
29,
24,
27,

1970
1970
1970
1970
1970
1970
1970

17.1

11.2

31 14 28 II 25 II 25 < 22
JAN

FEB

FEDEF AL RESIRVE CREDIT

MAR

APR

1970-71
Dec. 23
30
Jan.
6
13
20
27
1 1 1 1 1 1
6 20 3 17
MAY

JUN

I 15 29 12 2«
JUL
1970

AUG

9 23
SEP

4 l<

Millions —
69,466
68,981
70,057
69,795
70,829 71,174
1 1 1 1 1 1 1 1 1 l!
2 16 30 13 27 10 24

NOV

DEC

JAN

FEB

1971

LATEST DATA PLOTTED WEEK END IN6i JANUARY 27, 1971
1/ USES OF MONETARY BASE ARE MEMBER BANK RESERVES AND CURRENCY HELD BY THE PUBLIC AND NONMEMBER
BANKS, ADJUSTED FOR RESERVE REQUIREMENT CHAN6ES AND SHIFTS I N DEPOSITS. FOR A DESCRIPTION
OF THE BASE SEE THE AUGUST 1968 ’•REVIEW OF THIS BANK.
2/ DEFINED TO INCLUDE HOLDINGS OF SECURITIES, LOANS, FLOAT AND ’’OTHER” ASSETS, ADJUSTED FOR
RESERVE REQUIREMENT CHANGES AND CHANGES IN REQUlAEMENTS DUE TO SHIFTS IN DEP&SITCTAMONG
CLASSES OF BANKS*


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

%

i. RESERVES A

^
ALT MEMBER BANKS INFIGURES NATION
THE
AVERAGES OF DAILY
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
31.5 - - - - - - - - - - -1—

BILLIONS OF DOLLARS
- - - - - - - - - - - - - 31.5

30.5

28.5

28.0

3 17 3I

DEC
1969

M 28 11 25 II 25

JAN

FEB

MAR

8 22

APR

8 20

3 17

I

MAY

JUN

JUL
1970

15 28 12 26

AUG

9 23

SEP

7 21

4 IB

OCT

NOV

2 I6 30 I3 27 I0 24

DEC

JAN FEB
1971

LATEST DATA PLOTTED WEEK ENDINGt JANUARY 27, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
X BREAK IN SERIES DUE TO CHAN6ES IN REGULATION D EFFECTIVE OCTOBER I,


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

1970 -71
Dec. 23
30
Jan.
6
13
20
27

Billions
30.1
30.0
30.6
29.7
30i 4
30.2

1970.

Annual rates of change,
average of four weeks
ending January 27, 1971
from four weeks ending:
Nov.
Oct.
Sept.
Aug.
July
June
May

25,
28,
30,
26,
29,
24,
27,

1970
1970
1970
1970
1970
1970
1970

16.3
9.5
10.3

i

14.3
15.7
14.1
12.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

t

4

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
BILLIONS OF DOLLARS

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

170 - - - - - - 1---- 1—

1970-71
Dec. 16

- - - - - - - - - - - - - - 170

Billions
164.4
165.8
166.2
166.2
165.9

S IT Jl

14 28 II 25 II 25

6 20

3 IT

I

15 29 12 26

9 23

T 21

2 16 30 13 2T 10 24

LATEST DATA PLOTTED WEEK ENDING! JANUARY 20, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

Annual rates of change, average of four weeks ending:
4/22/70 5/20/70 6/17/70 7/22/70 8/19/70 9/23/70 10/21/70 11/18/70
to average
of four
weeks ending :
6/17/70
7/22/70
8/19/70
9/23/70
10/21/70
11/18/70
12/23/70
1/20/71


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

2.2
2.0
2.6
4.0
4.0
2.9
3.5
3.5

6.0
5.5
6.5
6.0
4.4
4.9
4.8

3.0
5.2
4.8
3.1
3.9
3.9

7.0
5.9
3.5
4.4
4.3

6.6
3.2
4.4
4.3

-02.7
2.9

2.2
2.7

5.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

220
1970-71

Billions
215.3
213.5
214.7
215.4
215.3
215.0

21 S

210

205

i

3

17

31

14 26

I!

25

11

25

8 22

6 20

3

17

I

15 29 12 26

4

16

2

16 30

13 27

10 24

LATEST DATA PLOTTED WEEK ENDINGi JANUARY 20, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

Annual rates of change, average of four weeks ending:
12/31/69 2/25/70
6/17/20 7/22/70 8/19/70 9/23/70 10/21/70 11/18/70
to average
of four
weeks ending:
6/17/70
7/22/70
8/19/70
9/23/70
10/21/70
11/18/70
12/23/70
1/20/71


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

6.9
6.3
6.0
6.1
6.0
5.3
5.5
5.4

8.9
7.5
6.9
7.0
6.7
5.8
5.9
5.8

3.4
5.0
4.7
3.4
4.2
4.2

5.7
5.1
3.4
4.3
4.3

6.0
3.4
4.5
4.4

1.1
3.4
3.5

3.1
3.4

5.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

£TIME DEPOSITS

A

al”commercial banks w
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

240

1970-71

Billions
229.7
231.6
232.3
233.6
234.2
235.7

230

220

210

200

3

IT 31

H 20

II

25

I

25

0 22

0 20

3 IT

MAY

JUN

I

15 29

12 20

9 23

7 21

4 19

2 10

IS 27

JAN

10 24

FEB

LATEST DATA PLOTTED WEEK ENDINGt JANUARY 20, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.

Annual rates of change, average of four weeks ending;
4/22/70 5/20/70 6/17/70 7/22/70 8/19/70 9/23/70 10/21/70 11/18/70
to average
of four
weeks ending:

31.3
32.2
30.3
27.0
27.9
27.9

31.7
29.1
25.1
26.5
26.6

C
D

19.8
23.6
26.3
25.9
23.9
25.2
25.6

I
s
*


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

9.7
17.2
20.8
23.5
23.7
22.3
23.7
24.2

C
N

6/17/70
7/22/70
8/19/70
9/23/70
10/21/70
11/18/70
12/23/70
1/20/71

22.9
24.9
25.3

17.7
21.9
22.9

21.1
22.6

27.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

A

MOREY STOCK PLUS TIM^DEPOSITS
BILLIONS OF DOLLARS

i

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

460 ------,---- .--

- - - - - - - - -- - - -n 460

1970-71

DEC
1969

JAN

Billions
445.0
445.1
447.0
449.0
449.5
450.7

FEB

MAR

APR

MAY

JUN

4 IS

JUL
1970

2 16 SO IS 27 10 24

JAN

FEB

LATEST DATA PLOTTED WEEK END INGt JANUARY 20, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

Annual rates of change, average of four weeks ending:
4/22/70 5/20/70 6/17/70 7/22/70 8/19/70 9/23/70 10/21/70 11/18/70
to average
of four
weeks ending:
6/17/70
7/22/70
8/19/70
9/23/70
10/21/70
11/18/70
12/23/70
1/20/71


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

6.6
10.1
11.9
13.7
13.8
12.7
13.6
13.9

12.8
14.3
15.9
15.6
14.0
14.9
15.0

17.1
18.3
17.2
14.9
15.8
15.8

18.7
17.1
14.2
15.4
15.4

16.9
13.1
14.8
14.9

9.5
12.7
13.3

12.3
13.2

16.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

CERTIFICATES OF DEPOSI

LARGE WEDNESDAY FIGURES BANKS
COMMERCIAL

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
30

28

26

24

22

20

18

16

14

12

3 17 31

14 28

II

25

II

25

8 22

6 20

3

1

17

15 29 12 26

9 23

7 21

4

18

2

1# 30 13 27

JAN
I96B

1970

10 24

FEB

1971

LATEST DATA PLOTTED WEEK END INGi JANUARY 20, 1971
CURRENT AND YEAR AGO DATA APPEAR IN THE BOARD OF GOVERNORS’ H.4.2 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT IN DENOMINATIONS OF 6100,000 OR MORE.


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

1970 -71
Dec. 16
23
30
Jan. 6
13
20

Millions
25,636
25,945
26,126
26,217
27,046
27,278

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

$

9
MEMBER BANK DEPOSITS
SUBJECT TO RESERVE REQUIREMENTS
(CREDIT PROXY)
BILLIONS OF DOLLARS
345 r----------- ---------- —

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

CREDIT

BILLIONS OF DOLLARS
-------- ---------- --------345

STED 1

CREDIT PROX

I I I I
5 17 SI

H 28 II 2S II 25

8 22

8 20

3 17

I

15 29 12 26

9 23

7 21

* 18

2 16 30 13 27 10 24

1869
1970
LATEST DATA PLOTTED WEEK END INGs JANUARY 20, 1971
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.

1970-71

Dec. 16
23
30
Jan.
6
13
20


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

Billions
Credit
Credit
Proxy
Adjusted
Proxy
318.6
330.1
319.8
331.6
320.8
332.0
323.1
333.3
322.0
332.6
323.5
334.0

Annual rates of change, average of
four weeks ending January 20, 1971
from four weeks ending:

Nov.
Oct.
Sept.
Aug.
July
June
May

18,
21,
23,
19,
22,
17,
20,

1970
1970
1970
1970
1970
1970
1970

Credit
Proxy
18.8
16.5
14.5
17.1
19.5
19.1
17.6

Credit
Proxy
Adjusted
13.3
10.6
7.8
9.7
12.2
12.2
11.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PER CENT

PER CENT

CORP( RATE Ai A BON )S

PRIME

LOAN Rk

THREE -MONTH
BILL MARKET

DISCOUNT RA

5 19

2

16 30 IS 27

13 27

10 24

6 22

3

19

3

17 31

H 26

II

25

9 23

6 20

4

16

1

15 29

12 26

LATEST DATA PLOTTED ARE AVERA6ES OF RATES AVAILABLE FOR THE WEEK ENDING: JANUARY 29, 1971


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

1970 AND
1971
DEC.

4
11
18
25
JAN,
1
8
15
22
29 X
FEB.
5
12
19
26

CORPORATE
Aaa BONDS

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

7.85
7.78
7.59
7.51
7.48
7.45
7.42
7.36
7.22

4.97
4.92
4.77
4.82
4.87
4.84
4.51
4.20
4.22

5.81
5.80
5.82
5.96
5.94
5.99
5.78
5.58
5.60

5. 93
5.89
5.87
6. 05
6. 16
6.09
5.96
5.83
5.78

X AVERAGES OF RATES AVAILABLE.

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED SHORT-TERM

a

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PER CENT

PER CENT

9.5
9.0

COMMERCIAL CAPER

8.5

ft—hKH4f1r

8.0

7.5

7.0

FEDEF<AL FUNHS RATE

6.5

6.0

5.5

5.0

4.5

4.0

3.5

S 19

2 16 SO IS 27

3 27 10 24

8 22

S 19

3 17 31

H 28 II 25

9 23

6 20

4 18

I

15 29 12 26

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGs JANUARY 29, 1971


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

1971
DEC.

4
11
18
25
JAN. 1
8
15
22
29 *
FEB. 5
12
19
26

PRIME
COMMERCIAL
PAPER
4-6 MONTH

FEDERAL
FUNDS

PRIME
BANKERS'
ACCEPTANCES

90 DAY
CD' S ***
8K

5.63
5.75
5.75
5.75
5.75
5.68
5.38
>«85
4.50

5. 50
4.63
5.23
4.91
3.94
4.75
4.00
4.33
4.23

5.38
5.48
5.25
5.25
5.25
5.23
4.88
4.48
4.42

5.66
5.68
5.64
5.59
5.59
5.64
5.45
5.06
4.84

* AVERAGES OF RATES AVAILABLE. FEDERAL FUNDS LAST FIVE DAYS AVAILABLE
** DATA ARE SECONDARY MARKET RATES, WEEKLY AVERAGES ENDING WEDNESDAY TWO
DAYS EARLIER. CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWiffeiS

AND EXCESS RESilvES
ALL MEMBER BANKS INFIGURES NATION
THE
AVERAGES OF DAILY

billions of dollars

billions of dollars

BORRCWIN6S
1.6

1.2

0.8

0.4

EXCESS RESELVES

-AA
0
NET fREE RESERVE!
-0.4

-

0.8

1.2

-

-

-

2.0

3 17 31

DEC
1969

14 28 11 23 II 23

JAN

FEB

MAR

8 22

APR

6 20

3 17

I

MAY

JUN

JUL
1970

15 29 12 26

AUG

9 23

SEP

7 21

4

18

OCT

NOV

2

16 30

DEC

13 27

10 24

-

1.6

2.0

JAN FEB
1971

LATEST DATA PLOTTED WEEK ENDINGi JANUARY 27, 1971


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

1^70
1971
DEC.

2
9
16
23
30
JAN. 6
13
20
27
FEB. 3
10
17
24

EXCESS
RESERVES
417
136
120
210
338
603
82
88
295

BORROWINGS
455
290
399
325
270
407
275
471
354

FREE
RESERVES
-

38
154
279
115
68
196
357
383
59

PREPARED BY FEDERAL RESERVE BANK OF ST

LOUIS

t

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