Full text of U.S. Financial Data : Week Ending: July 14, 1971

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M

Week ending: July 14,1971
^-'QRARv
JUN 05 7979

The money stock averaged $226.3 billion in the four weeks
ending July 7, up at an 11 per cent annual rate in the past six months
(page 5). This rate of growth is the most rapid for any six-month
period since World War II. In comparison, money grew 5.4 per cent
in 1970, and at a trend growth rate of 3.3 per cent from 1957 to 1969.
The demand deposit component (page 4) has risen at an 11.5 per cent
rate in the past six months, and the currency component at a 9.6 per
cent rate. In comparison, demand deposits grew 5.1 per cent in 1970,
while currency grew 6.3 per cent.
The growth rates of other monetary aggregates, such as
Federal Reserve credit and the monetary base, also have accelerated
in 1971 (page 2). Normally over a period of several months, the
growth of money is largely determined by the growth of the monetary
base, which in turn, largely reflects Federal Reserve purchases and
sales of securities. Federal Reserve credit, the components of which
include System holdings of securities, discounts and advances, float,
and other Federal Reserve assets, has increased at a 13 per cent annual
rate in the past six months, compared with 5 per cent in 1970. The
expansion of this aggregate in the past six months mainly resulted
from the increased holdings of Government securities by the Federal
Reserve. System holdings of securities rose from $62 billion in the
four weeks ending January 13 to $65 billion in the latest four weeks,
and discounts and advances increased from $320 million to $760 million.
Over the same period, float and other Federal Reserve assets tended
to decrease Federal Reserve credit. The monetary base has increased
at a 9 per cent annual rate in the past six months, compared with
6 per cent in 1970.
The multiplier relationship between the base and the money
stock can change. Factors affecting the multiplier include the ratio
of time deposits to demand deposits, the ratio of U.S. Government
deposits to demand deposits, and the ratio of bank reserves to total
bank deposits. Overall in 1970, the money stock grew at a slower
rate than the base. This primarily reflected the rapid reintermedi­
ation of time deposits into commercial banks, lowering the multiplier.
In other words, the rapid growth of time deposits absorbed reserves
which otherwise would have been available to support greater growth
in demand deposits. In the past six months, however, the reinter­
mediation of time deposits has slowed, and as a result, the time
deposits ratio has contributed to the raising of the multiplier.
Thus overall in the past six months, the money stock has tended
to grow faster than the base.
The Federal Reserve Board approved action by the four
Federal Reserve banks of New York, Philadelphia, St. Louis, and
San Francisco to increase their discount rates to 5 per cent from
4.75, effective on July 16. This upward adjustment brings this
rate into closer alignment with short-term market interest rates.


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

Prepared by Federal Reserve Bank of St. Louis
Released: July 16,1971

2

MONETARY BASE 1/
FEDERAL RESERVE CRED I T 2/
AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS
90

_

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR tffEEKS ENDING
JULY 14, 1971 FROM
THE FOUft WEEKS ENDING
MAY
APR.
MAR.
FEB.
JAN.
DEC.
NOV.

12,
14,
17,
17,
13,
16,
11,

1971
1971
1971
1971
1971
1970
1970

6.6
7.8
7.4
9.1
9.2
9.7
8.6

MONETARY BASE

13Z1

MILLIONS

76
_

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
---- JULY 14, 1971 FROM
_
THE FOUR WEEKS END INGi
-

MAY
APR.
MAR.
— FEB.
JAN.
_ DEC.
NOV.

12
14
17
17
13
16
11

74

12.7

10.2

72

FEDERAL RESERVE CREDIT
1970

13.5
70

68

1511

MILLIONS
66

6 20

3 17

MAY

JUN
'

1

15 29 12 26

9 23

7 21

4 18

OCT

NOV

2 16 30 13 27 10 24 10 24

1970

JAN

FEB

7 21

5 19

APR
1971

MAY

2 16 30 14 26

LATEST DATA PLOTTED WEEK ENDINGs JULY 14, 1971
1/ 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.
2/ DEFINED TO INCLUDE HOLDINGS OF SECURITIES, LOANS, FLOAT AND "OTHER" ASSETS, ADJUSTED FOR
RESERVE REQUIREMENT CHANGES AND CHANGES IN REQUIREMENTS DUE TO SHIFTS IN DEPOSITS AMONG
CLASSES OF BANKS.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

RESERVES
ALL MEMBER BANKS IN THE NAT ON
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
32.0

BILLIONS OF DOLLARS
32.0

31.5

31.5

31 .0

31.0

30.5

30.5

30.0

30.0

29.5

29.0

29.0

28.5

28.5

28.0

28.0

27.5

27.5

6 20

3 17

I

15 20 12 26

0 23

7 21

4 16

2 16 30 13 27 10 24 10 24

JAN

FEB

1970

7 21

5 10

APR

MAY

2 16 30 M 28

1971

LATEST DATA PLOTTED WEEK ENDING: JULY 14, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
IK BREAK IN SERIES DUE TO CHANGES IN REGULATION D EFFECTIVE OCTOBER 1, 1970.


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

BILLIONS
31.3
31.5
31.0
31.3

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
THE FOUR WEEKS ENDING
JULY 14. 1971 FROM
THE FOUfc WEEKS ENDING:
MAY
APR.
MAR.
FEB.
JAN.
DEC.
NOV.

12,
14,
17,
17,
13,
16,
11.

1971
1971
1971
1971
1971
1970
1970

0.0
5.3
4.0
5.8
6.8
6.3
8.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS
180 ----------1----------1--------

BILLIONS OF DOLLARS
----- ------------- ---------- 180

BILLIONS
174.6
173. 1
175.0
174.4
173.8
176.7

6 20

3 17

MAY

JUN

1

15 29 12 26

9 23

7 21

4 18

OCT

NOV

2 16 30 13 27 10 2A 10 24

JAN

7 21

FEB

LATEST DATA PLOTTED WEEK ENDING. JULY 7. 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING.
7/8/70

11/4/70

12/9/70

4.9
4.5
3.6
5.9
6.9
5.9
8.0
8.0

4.7
2.7
7.4
8.8
6.9
10.0
9.7

0.7
7.7
9.5
7.0
10.7
10.3

1/6/71

2/10/71

3/10/71

20.4
12.0
16.3
14.6

5.9
13.7
12.3

4/7/71

5/5/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
12/ 9/70
1/ 6/7!
2/10/71
3/10/71
4/ 7/71
5/ 5/71
6/ 9/71
7/ 7/71


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

10.2
11.8
8.2
12.2
11.5

12.8
11.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
230

225.6
226.2
225.5
225.2
228.4

225

220

215

210

205

6 20

3 17

MAY

JUN

1

15 29 12 26

9 23

7 2!

4 16

2 16 30 13 27 10 24 10 24

JAN

7 21

5 19

2 16 30 14 26

FEB

1970

1971

LATEST DATA PLOTTED WEEK ENDINGi JULY 7, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING*
7/8/70

11/4/70

12/9/70

4.7
4.5
3.9
5.9
6.8
6. 1
7.8
7.8

5.0
3.5
7.5
8.8
7.4
9.7
9.5

2.2
8. 1
9.6
7.7
10.4
10. 1

1/6/71

2/10/71

3/10/71

18.5
12.0
15. 1
13.7

7.0
12.9
11.6

4/7/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
12/ 9/70
1/ 6/71
2/10/71
3/10/71
4/ 7/71
5/ 5/71
6/ 9/71
7/ 7/71


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

10. 1
11.5
8.6
1 1.7
11.1

12.1
10.7

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
260

250

240
TOTAL TIME DEPOSITS
230

220

210
NET TIME DEPOSITS*

200

190

S 20

3 17

MAY

JUN

I

15 29 12 26

9 23

7 21

4 16

2 16 30 13 27 10 24 10 24
JAN

FEB

1970

7 21

5 19

APR

MAY

2 16 30 14 28

1971

LATEST DATA PLOTTED WEEK ENDING: JULY 7,

1971

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 6100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOS1TS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
7/8/70

11/4/70

12/9/70

1/6/71

2/10/71

3/10/71

32.5
25.0
22. 1
19.9

19.6
18.0
16.3

4/7/71

5/5/71

13.6
12.8

13.5

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
12/ 9/70
1/ 6/71
2/10/71
3/10/71
4/ 7/71
5/ 5/71
6/ 9/71
7/ 7/71


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

16.7
17.6
19. 1
21.0
21 .7
20.7
20.2
19.4

18.3
21.4
24.6
25.3
23.0
21.8
20.5

25. 1
28.5
28.5
25.0
23.2
21.5

31.3
30.4
25.6
23.3
21.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

480

MONEY STOCK PLUS TOTAL TIME DEPOSITS

=

470

=

460

=

450

=

440

430

MONEY STOCK PLUS NET TIME DEPOSITS

6 20

3 17

I

IS 20 12 26

0 23

7 21

4 16

2 16 30 13 27 10 24 10 24

JAN

FEB

7 21

S 10

APR

MAY

E

420

E

410

=

400

2 16 30 14 26

1970
LATEST DATA PLOTTED WEEK ENDING. JULY 7.
CURRENT DATA APPEAR
KW M2 IS DEFINED AS:

1971

IN THE BOARD OF GOVERNORS*

H.6 RELEASE.

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:
7/8/70

11/4/70

12/9/70

1/6/71

2/10/71

3/10/71

25. 1
18.4
18.5
16.8

13.3
15.4
14.0

4/7/71

5/5/71

13.0
12.0

14.7

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
12/ 9/70
1/ 6/71
2/10/71
3/10/71
4/ 7/71
5/ 5/71
6/ 9/71
7/ 7/71


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

10.3
10.6
11.0
13.0
13.8
13.0
13.6
13.3

11.4
12.0
15.7
16.6
14.9
15.5
14.9

12.8
17.7
18.5
16.0
16.5
15.6

20. 1
20.3
16.8
17.3
16.1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

8

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
30

28

26

24

22

20

18

16

14

12

6 20

3 17

MAY

JUN

I

15 20 12 26

0 23

7 21

4 18

2 16 30 13 27 10 24 10 24

JAN

FEB

1970

7 21

5 10

APR
1971

MAY

2 16 30 14 28

LATEST DATA PLOTTED WEEK ENDINGt JULY 7, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF 8100,000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.


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

MONEY AND TIME DEPOSIT DATA

1971
MAY

5
12
19
26
JUNE
2
9
16
23
30
JULY
7
14
21
28

CERTIFICATES
OF DEPOSIT

BILLIONS
NET TIME
DEPOSITS*

27.6
27.6
27.9
28.3
28.2
28.5
28.2
28.9
28.8
29.6

222.3
223.0
223.3
224.0
225. 1
225.2
225.8
225.8
226.6
226.5

M2 m
442.9
446.2
448.0
449.5
450.6
449.5
452.0
451.4
451.8
455.0

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

LOUIS

SUBJECT TOcrRESERW REQUIREMENTS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

billions of dollars

BILLIONS OF DOLLARS
----- ------------- --------^ 355

CREDIT PROXY ADJUSTED 1/

CREDIT PROXY

I
MAY

JUN

15 28 12 26

JUL

AUG

8 23

SEP

7 21

OCT

4 la

NOV

j

|

1970
LATEST DATA PLOTTED WEEK ENDING, JULY 7, )97j

JAN

2 16 90 14 28

FEB

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS
17

SANK deposits. BANK-RELATEI

1971

JUN.

JUL.

BILLIONS

2

9
16
23
30
7


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

CREDIT
-PROXY

CREDIT
PROXY
ADJUSTED

341.7
341.4
342. 1
339.9
340.5
343.2

345.8
345.9
346.5
344.3
345.2
347.4

MAY
APR.
MAR.
FEB.
JAN.
?EC.
NOV.

5,
7,
10,
10,
6,
9,
4,

1971
1971
1971
1971
1971
1970
1970

CRED1T
-PROXY,

CREDIT
PROXY
ADJUSTED

7.8
9.4
10. 1
12. 1
13.4
14.3
14.9

7. 1
6 6
6 5
7 8
8 7
9 4
9.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PER CENT
9.0 -------

PER CENT
------- 9.0

CORPORATE Aaa BONDS
PRIME COMMERCIAL
LOAN RATE

MUNICIPAL
BQNDSJH

s

DISCOUNT RATE

THREE-MONTH TREA£ URY
BILL MARKET YIELD

1

15 2# 12 26

MAY

JtIN

10 24 7 21

JUL

4 18

AUG SEP
1970

2 16 30 13 27 II 25 8 22

5 19

5 19

2 16 30 14 28 11 25 9 23

OCT

FEB

MAR

APR
1971

NOV

DEC

JAN

MAY

JUN

JUL

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: JULY 16, 1971

1971
MAY

7
14
21
28
JUNE
4
1 1
18
25
JULY
2
9
16 *
23
30

CORPORATE
Aaa BONDS

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECUR1T1ES

LONG-TERM
GOVERNMENT
SECUR1T1 ES

MUNICIPAL
BONDS KK

7.43
7.48
7.57
7.66
7.69
7.66
7.63
7.62
7.63
7.65
7.64

3.84
3.96
4.36
4.38
4.28
4.58
4.94
4.86
5.17
5.40
5.31

5.92
5.98
6.20
5.97
5.92
6.22
6.54
6.46
6.70
6.70
6.65

5.92
5.96
6.04
5.90
5.79
5.89
6.06
5.98
5.97
5.92
5.83

5.85
5.96
5.96
5.86
5.70
5.87
6.00
6.23
6. 19
6.06
N.A.

* AVERAGES OF RATES AVAILABLE.
*K BONO BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
N.A. - NOT AVAILABLE

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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED SHORT-TERM INTEREST RATES
AVERAGES OF DAILY RATES ENDED FRIDAY

PER CENT
------- 9.0

111.1

PER CENT
9.0 -------

8.5

I

111

8.5

-

111.

X

COMME RCIAL ’APER
4-TO- 6 MONTI4

-

A

1 1 1 1 . J LL 1 1 1 1
1

15 28 12 26

MAY

JUN

1 1 1 .1.1 L _LLLL 1 1 1 ...1.LL ■ 111

10 24 7 21

JUL

4

18

AUG SEP
1970

2 16 30 13 27

OCT

NOV

II

25 8 22

DEC

JAN

4.0

i l i

5 18

FEB

I I I .1 LI. 1 . 1-1.1 J. 1 1

5 18

MAR

2 16 30 14 28 >1 25 8 23

APR
1971

MAY

JUN

1 JUL
1 1

l

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING; JULY 16, 1971*


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

1971
MAY

7
14
21
28
JUNE
4
11
18
25
JULY
2
9
16 X
23
30

4.5

-

Mr

3.0

5.0

-

i A 7^

-

0

6.0

5.5

TTTT

3.5

FEDEF AL FUNC>S RAT

TTTT TTTT

4.0

6.5

-

TTTT

\l\
f\

5.0

4.5

7.0

1

11

\
V

TTTT

5.5

-

_L

6.0

7.5

11

6.5

\

TTTT

7.0

8.0

TTTT

7.5

JJJJJ -LLLL LLLL -LLLL

8.0

PRIME
COMMERCIAL
PAPER
4-6 MONTH

FEDERAL
FUNDS

PRIME
BANKERS'
ACCEPTANCES

90 DAY
CD'S XX

5.00
5.00
5.15
5.25
5.38
5.38
5.48
5.50
5.65
5.75
5.75

4.65
4.48
4.73
4.78
4.72
4.80
4.93
5. 10
5.10
5.10
5. 13

4.83
4.88
4.95
5.00
5.00
5. 18
5.43
5.50
5.60
5.63
5.50

4.82
4.83
4.91
5.12
5.25
5.28
5.33
5.43
5.53
5.59
5.68

* AVERAGES OF RATES AVAILABLE. FEDERAL FUNDS LAST FIVE DAYS AVAILABLE
m DATA ARE SECONDARY MARKET RATES, WEEKLY AVERAGES ENDING WEDNESDAY TWO
DAYS EARLIER. CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS1 H.9 RELEASE.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3.5

3.0

0

BORROWINGS AND EXCESS RESERVES
ALL MEMBER BANKS

IN THE NATION

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
—I-------------- ------------

2.0 ---------------- -----

2-0

BORROWINGS

"V

v
EXCESS RESERVES

-0.4

0.8

-

1.2

1.2

-

-

NET FREE RESERVES

1.6

-1 .6

2.0

-

-

6 20
MAY

3 17

1

IS 28 12 26

JUN

JUL

AUG

0 23

SEP
1970

7 21

4 16

OCT

NOV

2 16 SO 13 27 10 24 10 24

DEC

JAN

FEB

MAR

7 21

5 10

APR
1971

MAY

2 16 SO 14 26

JUN

JUL

LATEST DATA PLOTTED WEEK ENDINGt JULY 14, 1971


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

MILLIONS
1971
MAY

5
12
19
26
JUNE 2
9
16
23
30
JULY 7
14
21
28

EXCESS
RESERVES
365
230
102
174
285
73
208
258
286
316
41

BORROWINGS
174
99
306
267
646
153
403
618
752
667
993

FREE
RESERVES

-

191
131
204
93
361
80
195
360
466
351
952

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

2.0

-