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federal R-

of St. Louis

u.s. finonciflL 1969
drtr
Week ending: July 30,

MIG 2 7 1996
Growth rates of monetary aggregates have been
markedly lower since December than during the previous
year. With respect to money and its demand deposit
component, the past seven months can in turn be divided
into a period of moderate growth followed by one of
no change or decline. From December to April both of
these magnitudes had increased at about a 4 per cent
annual rate, down from more than 6 per cent during 1968.
Since April the money stock has shown little net change
(page 5), and demand deposits have declined at a 2.6
per cent rate (page 4).
Total member bank reserves have fallen from
about $27.8 billion in May and early June to about $27
billion in the past four weeks, after about no net change
over the previous five months and a 7 per cent rise in
1968 (page 3). The monetary base has grown at a 1.8
per cent rate since April, about half the rate
from December to April, compared with 6.5 per cent in
1968 (page 2).
Most interest rates increased rapidly in May
and June, but since late June appear to have leveled
off in spite of continued monetary restraint (pages 10
and 11). Yields on prime four- to six-month commercial
paper, bankers' acceptances, and secondary market
certificates of deposit rose about 1-1/2 percentage points


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

from April to reach 8-1/2 per cent or more in late June
or early July. In the week ending July 4 yields on
commercial paper averaged 8.66 per cent and yields
on bankers' acceptances averaged 8.50 per cent. In
the three days ending July 30, these rates were 8.54
per cent and 8.21 per cent, respectively. Some long­
term rates have been stable since about early June.
Bank lending has come under additional
pressure from the loss of CD's as market rates have re­
mained well above Regulation Q ceilings (page 7).
Until early June, business loans at large banks (page 9)
had continued to increase rapidly as banks liquidated
security holdings and borrowed Eurodollars. During
the past two months, these loans have declined slightly.
The volumes of outstanding commercial paper and
bankers' acceptances in June showed a marked increase.
From December to June, a period in which negotiable
CD's declined $8 billion, commercial paper increased
$4 billion (page 6). Bankers' acceptances increased
from $4.4 billion in December to $4.9 billion in June,
while the percentage of these acceptances held by
commercial banks declined from 35 per cent to 31 per
cent.

Rates of change reported in this release are
intended to serve as summaries which may be
useful in analyzing recent developments.
Prepared by Federal Reserve Bank of St. Louis
Released: August 1,1969

MONETARY BASEJ1
FEDERAL RESERVE CREDITJ2.
Averages of Daily Figures

Billions of Dollars

Billions of Dollars

Seasonally adjusted by this bank.
----- Annual rates of change, average of four weeks
j_ ending .July 30, 1969 from four weeks ending:
Monetary
Base

F.R. Credit

JT April 30, 1969
+ Y -J

Dec. 25, 1968
1957-1968
— Monetary Base

Monetary

Federal Reserve Credit

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
1968 Review of this bank.

n,*n
77, ou<, p

u.ssn ' y
r

-----2/

Defined to include holdings of securities,
loans, float, and "other" assets, adjusted
___for reserve requirement changes and changes in
--Latest data preliminary
— requirements due to shifts in deposits among
““Latest data plotted week ending: July 30, 1969
classes of banks.
10

24

7 21


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

4

18 2
Sept.

16
1968

30 13

27 11

25

8

22

5

19

5

19

2

16 30 14 28
Apr.
May

11 25 9
June
1969

23

6

20

3

17

1

15

29

12 26

Prepared by Federal Reserve Bank of St. Louis

10 24

7

21
1970

All Member Baines in the Nation
Averages of Daily Figures

Billions of Dollars

29.5

29.0

Billions of Dollars

Annual rates of change, average of four weeks
ending July 30, 1969 from four weeks ending:

29.5

— ?*

April 30, 1969
Jan. 29, 1969
Oct. 30, 1968

- 7• /
29.0

1959-1968
28.5

28.0

TOTAL

27.5

27.0

27.0

26.5

26.0

26.0

Total
VReserves

25.5

25.5

25.0

25.0
? <*!<*. 9
Series revised by the Board of Governors to reflect a new
seasonal adjustment and to adjust for recent changes in reserve
requirements. Current data appear in the Board
H. 9 release.

3o

P,

24.5

24.0
0
10

24

7


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

21

4

18 2
Sept.
1968

16

30

13

27 11

25

8

22

5

19

5

19

2

16

30

14 28

11 25
June

23
July

6
20
Aug.

3 17
Sept.

1

15

29 12

26

10 24

7

DEMAND DEPOSIT COMPONENT OF MONEY STOCK*

4

"veiuges or ua i ly ngures

Billions of Dollars

Billions of Dollars

Seasonal ly Ad usted

Annual rates of change, average of
four weeks ending July 23, 1969
from four weeks ending:
April 23, 1969
-<3-(a

July 24, 1968
Dec. 25, 1968
- 1957-1968

7

— Latest data preliminary
_Latest data plotted week ending:

10 24

7

21


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

4

18

30

_

13 27

11 25

P

19

5

19

2

16

30 14

data appear in the June 1968 Federal Reserve Bulletin.

—,

July 23, 1969

For trend of demand deposits by months see this bank's__
monthly release entitled "Monetary Trends".
—

28 11 25
June

9

23
Jll lv

6

20

3

17 1
Sept.

I’repared by Federal Reserve Bank of St. Louis

10 24

7

21

Billions of

MON
Averages <

liars

5TOCK
aily Figures
Ad us ted

Billions of Dollars

Annual rates of change, average of
_“from four weeks ending:
-----April 23, 1969

1957-1968

Current data on money 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".
.
—■Latest data preliminary
Latest data plotted week ending:
10

24

7


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

21

4

18 2 16
Sept.
1968

30 13

July 23, 1969
27
Nov.

11 25
Dec.

8

22
Jan.

5

19

5

19
Mar.

2

16

30 14

28 11

25 9 23
Jul v
June
1969

6

20 3

17
Sept.

1

15 29

12 26
Hov.

Prepared by Federal Reserve Bank of St. Louis

10 24
Dec.

7

21
Jan.

1970

CERTIFICATES OF DEPOSIT H AND COMMERCIAL PAPER [2
Outstanding Vol um e

Billions of Dollars

Billions of Dollars

33.0

33.0

31.0

Certificates of Deposit

Commercial Paper

latest data plotted:
1964


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

June 1969

ri i l i

1/ Negotiable time certificates of deposit in denominations of $100,000 or more
at large commercial banks. Monthly averages of Wednesday figures. Data prior
to July 1965 estimated by the Federal Reserve Bank of St. Louis.
2/ Total volume of commercial paper outstanding. Averages of current and preceding
end-of-month seasonally adjusted figures.
1968

1969

Prepared by Federal Reserve Bank of St. Louis

7
NEW ISSUE RATE ON CERTIFICATES OF DEPOSIT H
EALERS' OFFERING RATE ON COMMERCIAL PAPER

Per Cent

9.5

Commercial Paper
<£. OO

Certificates of Deposit

Latest data plotted:


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

June 1969

\J Average new issue rate on 6 month certificates of deposit of $100,000 or more.
Estimated by the Federal Reserve Bank of St. Louis from guide rates published
in the Bond Buyer,
2/ Prime commercial paper, 4- to 6- months maturity.
Averages of dealers' daily
offering rates.

Prepared by Federal Reserve Bank of St. Louis

lion

MONEY STOCK PLUS TIME DEPOSITS
MONEY STOCK PLUS U.S. GOVERNMENT DEMAND DEPOSITS
Averages of Daily Figures
Seasonally Adjusted

of Dollars

Billions of

410
408
406
404
402
400
398

Money Stock
plus
Time.Deposits

Annual rates of change, average of
four weeks ending July 23, 1969
from four weeks ending:
April 23,
Jan, 22,
Oct. 23,
July 24,

39(.,9
39 s.S

Money Stock
plus
Time Deposits

J9V.4.

3tS.S

394^3
393.4
1957-1968

3 93.9
393, f

396

392?
394
392
390
388
386
Current data appear in the Board s H.6 release. Back
data appear in the June 1968 Federal Reserve Bulletin,
jFor trend of money stock plus time deposits by months
see this bank's monthly release entitled "Monetary Trends"

384
382
380
378
376
374

A OO-A

372
plus
Government
Deposits

198

Money Stdck Plus
D.S. Government
Demand Deposits

9

197
3.0/0

196
195

Annual rates of change, average of
four weeks ending July 23, 1969
from four weeks ending:

194
193
192
191
190
189
188

Current data on money 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".
.
U.S. Government demand deposits, all commercial banks,
seasonally adjusted by this bank.
I

I

I

i

i

i

Dec. 25, 1968

i_ _ i_ _ i_ _ i—i—i—i—i—i—t—i—i—i—J—i—I—i—i—l—t—i

atest data preliminary
atest data plotted week ending:
10 24


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

April 23, 1969
Jan. 22, 1969
Oct. 23, 1968
July 24, 1968

Sept.
1968

-J.c

+- o.S

+ 3-Y
+ 'I-*

1957-.1968
[July 23, 1969

16 30 13 27 11 25 ' 8
Jan.
Oct.
Nov.
Dec.

I
Mar.

June

Prepared by Federal Reserve Bank of St. Louis

A99.J
aIOC- 7

A.OJ,#

Billi

BUSINESS LOANS
Large Com^^cial Banks
Wednesaoy Figures

of Dollars

Billions of Dollars

Seasonally ad justed by this bank.

84

84
Annual rate of change, average of
four weeks ending July 23, 1969

82

from four weeks ending:
April 23, 1969
+
°
Jan. 22, 1969
-f/O.Z
Oct. 23, 1968
July 24, 1968

82

4, /3-Z-h 7 J- ®

80

80

78

78

#

76

74

74

72

72
MILLIONS OF DOLLARS.
SEASONALLY
ADJUSTED
7C,3-79

70

7 4, 7 4 %
7L, i.ut

70,

?/V
68

7 7,

68
7 7, ,?5"5
7f,S?o
7 r, 4T/

*

70

74y 4

'

74, 7 70
71,*oS
7 7, a

77J7Y
771, /SH

66

64

64

62

62
Current and year ago unadjusted data appear in
the Board's H. 4.2 release. Seasonal adjustment
computed by this bank using 1963 through 1968 data

Latest data preliminary
July 23, 1969
Latest data plotted:

0

0
July

Aug.


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

Sept.

Oct.
1968

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July
1969

Aug.

Sept.

Oct.

Nov.

Prepared by Federal Reserve Bank of St. Louis

Dec.

Jan.
1970

YIELDS ON SELECTED SECURITIES
Averages ofDaily Rates Ended Friday

Per Cent
9.50
1969 ____ Lr

■Month
isury

l 3-5 Year

Per Cent
9.50

Long Term

■5. 93
9.00

9.00
6 JO

8.50

8.00

8.00
--------Prime Commercial
-----Loan Rate
7.50
Corporate
Aaa Bonds
7.00

6.50

6.50

Three-Month Treasury
Bill Market Yield

6.00

Long- Term
"Government Bonds

5.50
Discount Rate

5.00

4.50

4.00

4.00

3.50
0

’

^-Latest data plotted are averages of rates available for the week ending: August 1, 1969
l_l_I_I_i_l_J__1_L
7 10 24 7
15 29 13
21 7 21 4 18
16 30 13 27 11 25
12 26 9 23 6 20 4
May
June July
Jan.
Mar.
Oct.
1969
kGES OF RATES AVAILABLE


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

22
g.

5 19
Sept.

3

17 31 14 28 12 26
Oct.
Nov.
Dec.

Prepared by Federal Reserve Bank of St. Louis

9

23
Jan.
1970

SELECTED SHORT-IWM INTEREST RATES
Averages of Daily Rates Ended Friday

Per Cent
10.00
Prime
Commercial
Prime
Paper
Bankers'
4-6 Month Acceptances

"

"

7-os
7■ /f

10.00
90 Day

7. oo

7.Vf

9.00

7, SO
7, So
7 So
7.9 o

.■ruL^ (s

_

7. CC

7. So

S. (.3

F-3S

S.sf

8.00

f. 73

Federal
Funds
S’. OS'
7 /G
r rs
r. 7T

r. ss
V- So
f. t>S

Per Cent

r.TU

?. 7S

9.50

Federal Funds Rate—

7 oS
7. C.S
7- //
f. 7 S
7-St
?. /S
7. 3S

7.50
7. 38
-----Commercial Paper
4-to-6 Month

7.00
Bankers1
Acceptance s

6.50

6.00

6.00
Discount Rate

4.50

4.00

;Batest data plotted are averages of rates available for the week ending: August 1, 1969
1 » I_I_L_*.
12 26 9 23 6 20 4 18
15- 29 13 27 10 24 7 21 7 21 4 18 2 16 30 13 27
Sept.
ilov.
Mar.
June
1968
*

11 25

8 22

Aug.

19
Sept.

3

17 31

14

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

Prepared by Federal Reserve Rank of St. Louis
■
'

28 12

26
Dec.

9

23
J an.
1970

12

BORROWINGS AND EXCESS RESERVES
am

Millions of Dollars
3,200

EXCESS
RESERVES

3,000 -

memDer

da

n

ks

in me rsanon

Millions of Dollars

Averages of Daily Figures
FREE
RESERVES

BORROWINGS

WEEKLY DATA

2,800
2,600

2,200

2,200

2,000

2,000
JBorr owings

1,800

1,400
1,200

Excess Reserves

-Net Free Reserves

2,000

-

2,200

-

-2,600
^Latest data preliminary
-3,000
4 18
Sept.

16

30 13 27 11
Nov.
1968


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

25

8

22

5

19

5

19
Mar.

2

16 30
,pr.

14 28 11 25
May
June

23

6

20

3 17
Sept.

1

15

29

12 26

10 24
Dec.

7

21
Jan.

Prepared by Federal Reserve Bank of St. Inuis

4

18

4 18
Mar.

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