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17.
Week ending: June 9r 1971

LIBRARY


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

The nation's money stock, consisting of private
demand deposits and currency in the hands of the public,
averaged $224.6 billion in the four weeks ending June 2,
up at a rapid 11.6 per cent annual rate in the past five
months.
In contrast, money grew 5.4 per cent in 1970
and 3 per cent in 1969. From December 1966 to December
1968, when money grew at a 7.6 per cent annual rate,
spending rose rapidly and inflationary pressures inten­
sified.
Demand deposits, which are about three-fourths
of the money stock, have risen at a 12.3 per cent annual
rate in the past five months, and the currency component
has increased at a 9.4 per cent rate. By comparison,
demand deposits grew 5.1 per cent in 1970 and currency
grew 6.3 per cent.
Interest rates have risen in recent months,
in spite of the rapid growth of reserve aggregates such
as the monetary base and Federal Reserve credit. The
rise in interest rates reflects an increase in the demand
for credit, which has been fostered by the rapid acceler­
ation of money growth.
.
Three-month Treasury bill rates averaged 4.51
per cent in the three days ending June 9, up from 3.38
per cent in March, and about the same as January 1971.
This current rate, however, is substantially below the
7.87 per cent in January 1970. Yields on prime fourto six-month commercial paper averaged 5.38 per cent
in the first half of this week, up from 4.19 per cent
in March. For comparison, these rates averaged 8.78
per cent in January 1970. Currently, the discount rate
on advances from Federal Reserve banks to member banks
is 4.75 per cent, only about 25 basis points above the
three-month Treasury bill rate and about the same as
the Federal funds rate.
In April, the discount rate
averaged 90 basis points above the bill rate and 60
points above the Federal funds rate.
Yields on seasoned Aaa corporate bonds averaged
7.67 per cent this week, about the same level as late
1970, although 80 basis points below June 1970.
The Bond
Buyer index of 20 municipal bonds averaged 5.70 per cent
on June 2, down somewhat from three weeks earlier, but
still above the March level of 5.17 per cent.

Prepared by Federal Reserve Bank of St. Louis
Released: June 11,1971

MONETARY BASE 1/
FEDERAL RESERVE CREDIT*/
AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

_

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
THE FOUR *EEKS ENDING
- JUNE 9. 1971 FROM
THE FOUR WEEKS ENDING
-

APR.

MAR.
FEB.

-- JAN.
DEC.
_ NOV.

1970
1970

OCT.

MONETARY BASE

1971

MILLIONS

76
_

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
74
11.6

FEB.
_

10

11.4

72

NOV

FEDERAL RESERVE CREDIT

70

68

MILLIONS
66

1

15 29 15 27 10 24

6 22

5 19

2

16 30 14 28 11

9 23

6 20

3 17

JAN
1970

25

FEB

3 17 3!

14 28 12 26

9 23

1971

LATEST DATA PLOTTED WEEK ENDING: JUNE 9, 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

0

•

3

RESERVES

ALL MEMBER BANKS

IN THE NATION

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
32.0

31.5

3f .0

31.0

27.5

27.5

1

15 29 13 27 10 24

6 22

5 19

2

16 30 H 28 11

OCT

25

9 23

6 20

3 17

JAN

NOV

FEB

3 17 31

14 28 12 26

9 23

LATEST DATA PLOTTED WEEK ENOINGj JUNE 9. 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.9 RELEASE.
* BREAK IN SERIES DUE TO CHANGES IN REGULATION D EFFECTIVE OCTOBER 1. 1970.


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

BILLIONS
31.5
30.9
31.2
31.4
31.5
31.3

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
THE FOUR WEEKS ENDING
JUNE 9. 1971 FROM
THE FOUR WEEKS ENDINGi
APR.
MAR.
FEB.
JAN.
DEC.
NOV.
OCT.

7,
10,
10,
6,
9,
1 1 ,

7,

1971
1971
1971
1971
1970
1970
1970

11.8
10.9
11.5
10.5
12.5
12.1
10.8

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
168.4
169.9
172.3
174.6
JUN.

15 29 13 27

10 24

8 22

5 19

2 16 30 14 28 11

25

9 23

6 20

3 17

JAN

1

3 17 31

FEB

14 28 12 26

APR

9 23

MAY

LATEST DATA PLOTTED WEEK ENDING! JUNE 2, 1971
CURRENT DATA .APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
3/3/71 3/31/71
2/3/71
9/30/70 11/4/70 12/2/70 12/30/70
6/3/70
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
11/ 4/70
12/ 2/70
12/30/70
2/ 3/71
3/ 3/71
3/31/71
5/ 5/71
6/ 2/71


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

3.2
3.6
3.6
2.9
4.9
5.4
5.2
7.2

2. 1
2.5
1.6
5.3
6.0
5.7
8.5

4.4
2.5
7.0
7.7
6.9
10. 1

1 . 1
7.5
8.2
7.2
10.8

9.4
9.8
8. 1
12.3

16.8
11.6
16.4

6. 7
14.3

16.0

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

230
BILLIONS

219.0

220.6
_

JUN

223. 1
224.6
225.5
225.3

225

220

215

210

205

1

15 29 13 27

10 24

8 22

5 19

2

16 30 14 28 1!

OCT

25

9 23

6 20

3 17

3 17 31

14 28 12 26

APR
1971

NOV

1970

9 23

MAY

LATEST DATA PLOTTED WEEK ENDING: JUNE 2. 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
6/3/70

9/30/70

11/4/70

3.5
3.8
3.8
3.5
5. 1
5.6
5.6
7. 1

3.0
3.2
2.7
5.6
6.4
6.3
8.4

4. 7
3.4
7.1
7.7
7.4
9.7

12/2/70 12/30/70

2/3/71

3/3/71

15. 1
11.5
14.8

7.9
13.3

3/31/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
11/ 4/70
12/ 2/70
12/30/70
2/ 3/71
3/ 3/71
3/31/71
5/ 5/71
6/ 2/71


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

2.5
7.5
8.2
7.7
10.4

9.2
9.7
8.6
11.6

14.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

6

TIME DEPOSITS

ALL COMMERCIAL BANKS
BILLIONS

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

of dollars

BILLIONS OF DOLLARS
260

BILLIONS
248. 7
249.9
250.6
251.2
252.3

250

240

230

220

210

200

1

15 29 13 27

10 24

6 22

5 19

2

16 30 14 26 II

OCT

25

9 23

6 20

3 17

JAN

NOV

3 17 3)

FEB

1970

14 28 12 26

APR
1971

9 23

MAY

LATEST DATA PLOTTED WEEK ENDING: JUNE 2, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
6/3/70

9/30/70

11/4/70

12/2/70 1 2/30/70

2/3/71

3/3/71

32.4
23.3
22. 1

18.5
18.4

3/31/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
11/ 4/70
12/ 2/70
12/30/70
2/ 3/71
3/ 3/71
3/31/71

5/ 5/71
6/ 2/71


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

28.3
26.5
27.4
27.4
28.2
28.3
26.3
25.6

19.7
23.8
24.8
26.6
27. 1
24.2
23.4

25. 1
25.9
28.0
28.3
24.6
23.7

30. 1
31.5
31.1
26.0
24.8

30.6
30.4
24. 4
23.2

13.6

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

billions

480
470.5
470

460

450

440

430

420

410

5 400

1

15 29 !3 27

10 24

8 22

5 19

2 ! 6 30 H 28 II

OCT

25

9 23

6 20

3 !7

3 17 31

M 28 12 26

9 23

NOV
1971

1970
LATEST DATA PLOTTED WEEK END INGi JUNE 2, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
6/3/70

9/30/70

11/4/70

12/2/70 12/30/70

2/3/71

3/3/71

3/31/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
11/ 4/70
12/ 2/70
12/30/70
2/ 3/71
3/ 3/71
3/31/71
5/ 5/71
6/ 2/71


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

15.3
14.6
15. 1
15.0
16. 2
16.6
15.6
16. 1

11.2
'3.3
'3.6
'6.3

16.6
'5.

2
16.0

M. 7
14.5
17.4
18.0
16.0
16.8

16.0
19.4
19.6
16.8
1 7.7

19.9
20.0
16.5
17.5

23.9
17.5
18.6

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES

BILLIONS OF DOLLARS

30 ----- ---- ---

3 29 13 27

10 2*

8 22

5 19

OCT

9 23

NOV

6 20

3 IT

JAN

2 16 30 M 28 11 25

BILLIONS OF DOLLARS
--------- ------ 30

FEB

3 '7 31

M 28 12 26

APR

9 23

MAY

LATEST DATA PLOTTED WEEK ENOING, JUNE 2, 1971
CURRENT AND YEAR AGO DATA APPEAR IN THE BOARD OF GOVERNORS’ H.4.2 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT IN DENOMINATIONS OF $100,000 OR MORE.


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

1971
APR. 28
MAY
5
12
19
26
JUN.
2

M1LL1ONS
27,219
27,127
27,185
27,606
28,137
28,076

PREPAREO BY FEDERAL RESERVE BANK OF ST. LOUIS

MEMBER BANK DEPOSITS
SUBJECT TO RESERVE REQUIREMENTS
(CREDIT PROXY )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
355

345

335
CREDIT PROXY ADJUSTED
325

315

CREDIT PROXY
305

295

285

1

IS 29 13 27

10 24

8 22

5 19

2

16 30 14 28 11

25

9 23

6 20

3 17

3 17 31

1970

14 26

12 26

9 23

1971

LATEST DATA PLOTTED WEEK ENOING: JUNE 2, 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.

1911

BILL I.QN3
CRED1T
PROXY

APR. 28
MAY
5
12
19
26
JUN.
2


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

CRED1T
PROXY
ADJUSTED

335. 1
337. 1
339.5
339.6
340.9
341.7

339.8
341.6
343.7
343.6
344.7
345.8

COMPOUNDED ANNUAL RATES OF CHANGE.
AVERAGE OF THE FOUR WEEKS ENDING
JUNE 2. 1971 FROM THE FOUR
WEEKS ENDINGt
CRED1T
CRED1T
PROXY
PROXY ADJUSTED
MAR. 31
MAR.
3
FEB.
3
DEC. 30
DEC. 2
NOV. 4
SEP. 30

13.3
13.6
15.9
16.2
17.0
17.0
16. 1

7.7
7.7
9.5
9.8
10.9
10.8
9. 4

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

m i l M i ll N -ti

MUNICIPAL
BONDS**

DISCOUNT RATE

5.0

4.5
THREE-MONTH TREASURY
BILL MARKET YIELD
4.0

3.5

3.0

LLLLU

3 17

1

APR

MAY

LATEST

r

15 29 12 26 10 24

JUL

7 21

AUG
1970

4

18

SEP

2

16 30 13 27

OCT

NOV

1!

25

DEC

8 22

JAN

5 19

5 19

FEB

MAR

16 30

june

14 28 1!

MAY
h,

2
9
16
23
30

r

M
21
28
JUNE 4
1 1 *
18
25

25

JUN

1971

CORPORATE
Aaa BONDS

1971

MAY

2

APR
I 971

data plotted arf averages of rates available for the week endings

APR.

1

JUN

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

municipal

7. 22
7.23
7.24
7.24
7.3’
7.43
7.48
7.57
7.66
7.69
7.67

3.61
3.78
3.96
3.8!
3.93
3.84
3.96
4.36
4.38
4.28
4.5’

4.85
5.08
5.37
5. 59
5.77
5.92
5.98
6.20
5.97
5.92
6. 19

5.64
5.66
5.73
5.82
5.8’
5.92
5.96
6.04
5.90
5.79
5.87

5. 15
5. 21
5.32
5. 48
5.69
5.85
5.96
5.96
5.86
5.70
N.A.

BONDS **

* AVERAGES OF RATES AVAILABLE.
_
Tii
** BOND 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

AVERAGES OF DAILY RATES ENDED FRIDAY

PER CENT
9.5 ---

TTT7

TTTT t t t t

8.0
—- 7.5

V \j \

£
6.5

6.0

1
1 1

FEDEP AL FUNt)S RA1

T IL L

4.0

-

T im TT T

4.5

1

15 29 12 26 10 24

APR

MAT

JUN

JUL

1.1 J

-

TTTT

3 >7

1111 30 1 13 ..1 27 1 11L.L -LLLL j 11 -LI191. J_1_LL
L
16
23
8 22 5 19
3
2 16 30

7 2<

4 18

2

AUG
19/0

SEP

OCT

NOV

DEC

JAN

FEB

MAR

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGi


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

1

2
9
16
23
30
MAY
7
M
2'
28
JUNF
4
1 ' K
18
25

Ill

14 28 11

MAY

!

23

JUN

JUNE H, 1971* **

FEDERAL
FUNOS

PRIME
BANKERS’
ACCEPTANCES

90 DAY
CD'S HK

4.23
4.28
4.58
4.70
4.80
5.00
5.00
5. 15
5.25
5.38
5.38

APR.

|

APR
197!

PRIME
COMMERCIAL
PAPER
4-6 MONTH

1971

4.5
4.0

\\ f
M

-

5.5
5.0

\,r

A

3.0

_LLL 1.111 -1.-L1- J..L.LL. ■L.L1

/

A i/V i A

3.5

0

I I
I I

5

5.5
5.0

7.0

1 1L
1 i

6.0

A A
AT
\A

8.5

-

TTTT

6.5

JLLLL

7.0

9.0

-U-U.J

11
1

COMME RCIAL F’APER
4-T0- 6 MONTF

8.0

9.5

-

8.5

7. 5

PER CENT
---

1

9.0

INTEREST RATES

4.20
4. 13
4.23
4.23
4.18
4.65
4.48
4.73
4.78
4.72
4. 78

4.00
4. 13
4. 38
4. 45
4.60
4.83
4.88
4.95
5.00
5.00
5. '3

3.87
3.94
4. 13
4.46
4.72
4.82
4.83
4.91
5. '2
5.25
5.28

L
* AVERAGES OF RATES AVAILABLE. FEDERAL FUNDS LAST FIVE DAYS AVAILABLE
** DATA ARE SECONDARY MARKET RATES, WEEKLY AVERAGES ENDING WEDNESDAY TWO
DAY? EAR.-IER. CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ 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 (------------ ---------- r—

BORROWINGS

EXCESS RESERVES

NET FREE RESERVES

-0.4

-

0.8

-

0.8

-

1.2

-I .6

-

2.0

I

15 29 13 27 10 24

APR

MAY

JUN

8 22

JUL

5 19

AUG
1970

2 16 30 14 28 11

SEP

OCT

NOV

25

9 23

DEC

6 20

3 17

JAN

FEB

3 17 3!

MAR

14 28 12 26

APR
1971

MAY

9 23

JUN

LATEST DATA PLOTTED WEEK ENDING: JUNE 9, 1971


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

MILLIONS
1971
APR.

7
14
21
28
MAY
5
12
19
26
JJNF 2
9
16
23
30

EXCESS
RESERVES

BORROWINGS
197
150
84
176
174
99
308
269
645
154

277
208
81
48
365
230
i 15
'75
291
85

FREE
RESERVFS

-

80
58
3
128
191
13'
193
94
354
69

_L
___
PREPARED e* FEDERAL RESERVE BANK OF ST. LOUIS

-

2.0

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