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•

RESEARCH LIBRARY
Federal Reserve Bank
of St.

Louis

u

S. FinflnCIHL DAT
Week ending July 31,1968

AUG 2 7 1998
MONEY STOCK (Page 5)

INTEREST RATES (Continued)

The nation’s money stock rose $4.7 billion
or at a 10 per cent annual rate during the last three
months.
Over the last six months, a period sufficiently
long that irregular influences are usually less im­
portant, money rose at a 7 per cent rate, in the top
99 per cent of all rates for consecutive six month
periods since World War II.
From 1957 to 1967 money
rose at an average rate of 2.6 per cent.

The lower yields have probably reflected
changed expectations as well as the marked increase in
the supply of funds available resulting from the recent
rise in money. Expectations of a decline in yields may
reflect an anticipation of less Government borrowing as
a result of the surtax and perhaps less private borrowing
also if excessive total demands for goods and services
are moderated and if inflationary pressures recede. On
the other hand, the current demand for credit has apparent­
ly continued strong, reflecting the rapid rise in total
spending, stimulated by the lagged effect of monetary
and fiscal conditions in the first half of the year.

DEMAND DEPOSITS (Page 4)
Private demand deposits, the major component
of money and the component that is more sensitive to
changes in the volume of bank reserves, have gone up
at an 11 per cent rate in the past three months and
at a 7 per cent rate in the past six months. From
1957 to 1967 demand deposits rose at a trend rate of
2.4 per cent.
INTEREST RATES (Pages 10 and 11)
Interest rates on Government securities have
fallen sharply since the peaks reached in late May.
Long-term Government securities decreased from 5.52
per cent in late May to 5.01 per cent in the last three
days.
Three month Treasury bills have declined from a
peak of 5.82 per cent to an average yield of 5.20 per
cent in the last three days. Declines in yields on
corporate securities have been less pronounced.


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

TIME DEPOSITS (Page 7)
Time deposits at all commercial banks have
risen sharply since the end of June.
In the three previous
months,, they increased at an annual rate of 3 per cent;
while, in comparison, these deposits grew at a 12.1 per
cent rate from 1957 to 1967.
The recent acceleration in the growth of time
deposits reflects the developing attractiveness of the
yields on deposits which have been limited by Regulation
Q when compared with the falling yields on short-term
Government securities.

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: August 2, 1968

FEDERAL RESERVE CREDIT 1
Averages of Daily Figures

of Dollars

Billions of :

Seasonally adjusted by this bank. |2

57

56

55

Annual rates of change Federal Reserve Credit
adjusted for reserve requirement changes
.averages of four weeks ending July 31, 1968 _
.from four weeks ending:
May
1, 1968
+-(*.(*
Jan. 31, 1968
-b/O-f
Nov.
1, 1967
+/0.3
-Aug.
2, 1967
7- /O. S

1968

Federal Reserve
Holdings
Credit

So. oi
SOso, 4>v
SO. V7

SO-7o'

Si. Zj

so. n

sa

S/.S*
Sa si

//

s/. 60

1957-1967

i* 30

5/. 32.

SO it
51-13
SJ.cto

54

52.70

ja. OI
53

5i.M52

S2..0I

Federal Reserve Credit

51

50
Borrowings

49
Federal Reserve Holdings of U.S. Government
and Federal Agency Securities
48

47
Federal Reserve Credit excludes float and a few minor
items. Data prior to Jan. 18, 1968 adjusted for the
estimated effect of reserve requirement changes.
Seasonal adjustment for Federal Reserve Holdings
computed by this bank using data ending December 1967
Borrowings from Federal Reserve not seasonally
adjusted.
Current unadjusted data appear in the
Board's H.4.1. release.

46

45_

6

Latest data preliminary
Latest data plotted week ending: July 31, 1968

4 18
Oct.


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

1

15 29
Nov.
1967

13 27
Dec.

10 24
Jan.

15 29
May

12 26 10 24
June
July

A 1968

7 21
Aug.

4

18
Sept.

30 13 27 11 25
Nov.
Dec.

5

19 5 19
Feb.
Mar.
1963

9

Prepared by Federal Reserve Bank of St. Lou:

RESKVES
All Member BcWcs in the Nation
Averages of Daily Figures

Billions of Dollars

3
Billions of Dollars

1/ Data prior to Jan. 18, 1968 adjusted for
estimated effect of reserve requirement
changes.

froot four weeks endii

“

__ Seasonal adjustment computed by this --- hank using data ending December 1967.--Unadjusted data appear in the Board's---- H.U.l. release.
---

TOTAL RESERVES
Annual rates of change, average of

au.

■

TOTAL
EFFECTIVE
RESERVES

_
/ as. 75a as./. 7
is as.S3
as.sg

39

ZS.K,

y.-< j as. ijl

1957-1967

Total l/

RESERVES
AVAILABLE
FOR PRIVATE
DEMAND DEPOSIT:

/ ___.V7
/4
n.3.0
If

n.3i

WS
' ix

Reserves Available for
Private Demand Deposits

/1X$

az

nS3
/?■ 3S
n.al

i<t
it

l/ Data prior to Jan. 18, 1968 adjusted for
’ estimated effect of reserve requirement

n.*i
/7-S?

an

rTio n.sio
RESERVES AVAILABLE FOR
PRIVATE DEMAND DEPOSITS
Annual rates of change, average of
four weeks ending July 31, 1968
from four weeks ending:

changes.
Seasonal adjustment revised.

May

1, 1968

/ f.

n n.S3

7

2, 1967
Latest data preliminary
Latest data plotted week ending: July 31, 1968

6

20


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

1

15

1957-1967

29
June

July

Aug.

Sept

Dec.

1968
Prepared by Federal Reserve Bank of St. Louis

DEMAND DEPOSIT COMPONENT OF U.S. MONEY STOCK*
Averages of Daily Figures
Seasonally Ad usted

Billions of Dollars

Billions of Dollars

Annual rates of change, average
~~ four weeks ending July 24, 1968
fiom four weeks ending;

WEEKLY DATA
1968

ffla* /6 1+3.3
® A1 / +S-0

fiol
—L Jan. 24, 1968

+ 7-3

«:<? 1+6-1

+ (e.S
+. 4 -

$*Ml S '+S <\

/a /++3
/</ H+,8
*tit> J +6.8
<Uh3 /V7. J

1957-1967

■’ i/o

M

n '+>■7
,+u.i.P

13-week centered
moving average

Weekly

Latest data preliminary
Latest data plotted week ending:

6

20

4

18


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

1

15

29 13

27

10

* Current data appear in the Board's H.6 release. Back
data appear in the June 1968 Federa'l Reserve Bulletin.
For trend of demand deposits by months see this bank's
monthly release entitled "Monetary Trends".
OZ

July 24, 1968

2k

7

21

6

20

3

17

1 15

29

12 26

10

2k

7

a

It

18

2

16

30 13

27

11 25

8

22

5

19 5

19

Prepared by Federal Reserve Bank of St. Louis

2

MONaMTOCK*

A verages o^waily Figures

5
Billions of Dollars

Seasonally Ad justed

ions of Dollars
205
204
203

202
201

Annual rates of change, average of —
four weeks ending July 24, 1968
from four weeks ending:
Apr. 24, 1968
Jan. 24, 1968
f 7-3
Oct. 25, 1967
■+- 6,.7

WEEKLY DATA
1968
. 'tZM is /&•£•!
.
Z7- /f6>.8
.

2H /#7. *+

.()u~t-

<>

S' /?7.1

. ,0, a

200
1957-1967
199
199
197
196
195

194
193
192
191
190
189

188
187

186
185
184
13-week centered
moving average

183

Weekly

182
181
180
179
178
177
* Current data appear in the BoardTs 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".

176
Latest data preliminary

175^
0~
6 20
Sept.

4

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


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

10 24
Jan.

i i i i .1 i
7 21 6 20
Feb.
Mar.

3 17
Apr.

1

15 29 12 26 10 24
May
June
July
1968

7 21
Aug.

4 18
Sept.

2

16 30
Oct.

13 27 11 25
Nov.
Dec.

8

22
Jan.

5

19 5 19
Feb.
Mar.
1969

Prepared by Federal Reserve Bank of St. Louis

2
A;

6

CERTIFICATES OF DEPOSIT 1
Large Commercial Banks
Wednesday Figures

Billions

Billions of

Dollars

_Annual rates of change, seasonally unadjusted data,
_ average of four weeks ending July 24, 1968 from
— four weeks ending:

July 26, 1967
1964-1967

22.0
22.0

21.0
21.0

20.0
20.0

Millions of Dollars

19, s4 3

/? I'll

Current and year ago data appear in the
Board's H.4.2. release.
1/ Negotiable time certificates of deposit

Latest data preliminary
_ Latest data plotted: July 24, 1968
_

H--20

4

18


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

1

15

?9

13 27

10

2k

7

21

6

20

3

17

l

15
June

Prepared by Federal Reserve Bank of St

OSITS*
TIME
All Com
cia I Banks
Averages of Daily Figures
Seasonally Ad u sted

Billions

7
Billions of Dollars

Annual rates of change, average of
1968
from four weeks ending:

/4<w zf

/<P7. ?

Vjfr. / 81-7
A?

/<SV-7

d !g$.C

/a / <?/• /
1957-1967

at «7.9

j /w-S"
/m ■
n h°.a

Zi

4

18


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

1

15

29 13

27

10 24

7

21

6 20

P

* 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".
.

Latest data preliminary
Latest data plotted week ending: July 24, 1968

20

19/./

3

17

1

15

29 12

26

10 24
July

7 21
Aug

4 18

2

l6

30 13

27 U

25

8

22

5

19 5 19
Feb. Mar.

Prepared by Federal Reserve Bank of St. Louis

2
Apr.

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

Millions of Dollars

Millions of Dollars

2,000
excess

RESERVES

free

BORROWINGS

RESERVES

BIWEEKLY DATA
?
'

1,700

(,7/
6 SO

IStf

31S

-383
- Z IS

1,500
3/0

1,300

1,300

- 308
+ 37

1,200

1,100

BIWEEKLY SETTLEMENT PERIODS

1,000

Borrowings

Excess Reserves

Net Free Reserves

900
-

1,000

-4^
—-

13

Latest data preliminary
Latest data plotted:

27

11 25


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

8

22

6

20

two weeks ending July 31, 1968

3

17

31

14

28 13 27

10

24

8

22

5

19
June

3

17

31 14

28 11

25

9

23

6

20

1

15 291226

July

Prepared by Federal Reserve Bank of St

12

26

9

BUSINE^OANS
La rge ComiMcia I Banks
Billions of Dollars
73

rn

Billions of Dollars

Wednesday Figures
i

ti

i

i

i i i

i i i

73

ik.
Seasonally ad jus ted by this bank.

Annual rates of change, average of
four weeks ending July 24, 1968
from four weeks ending:
Apr. 24, 1968
-h/O.SL
Jan.
24, 1968
-h 10 0
Oct.
25, 1967
y- /0.8
July 26, 1967
+ g. i

72

1960-1967

71

70
I.(

69

68

67

Millions of Dollars
SEASONALLY
UNADJUSTED . ADJUSTED

1968

c

/
f
/S

U. 7J7

1,1

C- asl
K?
n

65

C,8,V^

yv-bj

1 v

i7. *0#
&
u / c/f
^7,

o/, cwr
U / 44J
&7 T/7

£»»7

Vic
7 >

66

4 7. y<?7
4 7 /4A-

-rJJ

4 7,6/0
(t> 7. V3* 7

e?«?

“

/o
fj
xy

*V/
61

utG'+fO/
b,s;jz>7
*>1, Jfl

C©7, iS-i
b% /?<*.

*>7,35*

4>?( 0* ? ^

4>9. 0/5* Z7 _

63

62

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: July 24, 1968
6 20
Sept.

4

11 ii 11 10 rrrrrrT
i 2k 7 21

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


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

Jan.

Feb.

1

15 29
May

12 26 10 2b
June
July
1968

7

21
Aug.

irrmmi nrirn-j trn if r 11
b

18 2
Sept.

i6 ;
16 30 13 27
Oct.
Nov.

11 ?5
Dec.

3

22
Jan.

5

19
Feb.

6l
' 0

5

1'9
Mar.

J-969

Prepared by Federal Reserve Bank of St. Louis

2
Apr.

YIELDS ON SELECTED SECURITIES
Averages of Daily Rates Ended Friday

Per Cent

3-MONTH
TREAS. 3-5
BILL YEAR

*
Ut
tit
3/

St. 7
S.S*S70

I. 7

JTtfc

LONG- CORPORATE
TERM

SX8

St/
S.gO
X7S

S3?
S.SAS*J
S.30
s.il

it

s.tS
s-3o

s!k/
s.tn

s.i?
s./s

It

S.3t

515V

S./t

jb
*1 S.iO

SA1
S.30

S.03
SO!

It
ju

S S.3S
/A X37

SIS

10
Per Cent

4,3?

S.Sg
S-51

S./3L
S./o

Corporate
Aaa Bonds

Long-Term
Government Bonds

Discount Rate
Three-Month Treasury
Bill Market Yield .

8

J_I_1_l

22

Sept.

6

l I l—1—1

20

Oct.

3 IT

1

Nov.

1967
OF RATES AVAILABLE

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

15
Dec.

29 12

26

Jan.

9

23

Feh.

8

22
Mar.

5

19
Apr.

3

IT 31
May

lU

28 12 26

June

July

1968

9

23

Aug.

6

20

It

18

1

15

29 13

27 10

2k

7

21

7

21

1

1969
rt^^iuis
Prepared by Federal Reserve Bank of S'

SELECTED SHORT-^RM INTEREST RATES
Averages of Daily Rates Ended Friday

Per Cent
I

I

Per Cent

II I

PRIME
LARGE
1—1PAPER
BANKERS'
90 DAY
8.50- 4-6-MONTH ACCEPTANCES CD'S**
-

8.00- h* l
-

7.00-

Prime Commercial Paper
4-to-6 Month

Prime Bankers
Acceptances

Discount Rate.

Federal Funds Rate

Latest data plotted are averages of rates available for the week ending: Aug. 2, 1968

8

22

6

20
Oct.

3

17

1

15

29

12 26

9

Dec.

*AVERAGES OF RATES AVAILABLE

**S0URCE: SALOMON BROTHERS AND HUTZLER
http://fraser.stlouisfed.org
SECONDARY MARKET RATE ON 90-DAY PRIME CD'S.
Federal Reserve Bank of St. Louis

23

8

22

5

19

3

17

31

14 28
June

12

26 9

July

23

Aug

6

20

4

18

1

15

29

13 27
Dec.

10 24

7

21

7

21
Mar.

Prepared by Federal Reserve Bank of St. Louis

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