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Week ending: March 8, 1972
JliJV 05


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

Growth rates of monetary aggregates have accelerated
in recent months, after a period of relatively slow growth in
the second half of 1971. The monetary base and member bank
reserves have both increased at about an 8 percent rate in
the past three months compared with rates of 3.4 and 2 percent,
respectively, in the previous four months. Federal Reserve
credit, an aggregate which more directly reflects the actions
of the Federal Reserve, has increased at a 10.6 percent rate
in the past three months, compared with a 7.5 percent rate
in the previous four months.
Reflecting the more rapid injection of reserves
into the banking system, growth of the nation's money stock
has accelerated sharply. Money has risen at a 7.4 percent
annual rate in the past three months compared with little
change in the previous four months. For comparison, money
grew at an average 5.6 percent rate in the thirty month
period from January 1969 to July 1971. The demand deposit
component of the money stock has risen at a 6.8 percent
rate in the past three months, slightly slower than the
7.9 percent rate for currency.
The spread between short- and long-term interest
rates has widened over the past two years and is now quite
large compared with the post-war period. The chart on page 9
presents the yields on seasoned corporate Aaa bonds and
3-month Treasury bills since 1950. The spread between
short- and long-term rates has usually widened during
periods of economic recession and has narrowed during
periods of economic expansion. In February, the spread
between the corporate Aaa rate and the 3-month bill rate
was about 4 percentage points.

Prepared by Federal Reserve Bank of St. Louis
Released: March 10, 1972

2

MONETARY BASE u
MULTIPLIER 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
94

.

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
THE FOUR WEEKS ENDING
— MARCH 8, 1972 FROM
_
THE FOUR WEEKS ENDINGi
■

JAN.
DEC.
NOV.
— OCT.
SEP.
.
AUG.
JUL.

5,
8,
10,
6,
8,
11,
7,

1972
1971
1971
1971
1971
1971
1971

92

11.2
8.1
7.3

90

6.1~
5.8
5.4
6.6

MONETARY BASE

88

86
1972

MILLIONS

84
1
8

90
90

LATEST DATA PLOTTED WEEK ENDING. MARCH 8, 1972
RATIO
2.9

RATIO

2.8
MULTIPLIER
2.7

2.6

2.5
IAN.

2
2.4

6 20

5 17

JAN

FEB

3 17 31

14 28 12 26

9 23

7 2!

JUL
1971

4 18

AUG

1

15 29 13 27 10 24

8 22

5 19

2 16

JAN

FEB
1972

1

15 29

LATEST DATA PLOTTED WEEK ENDING. MARCH 1, 1972
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/ RATIO OF MONEY STOCK ( Ml ) / MONETARY BASE.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

ALL

RESERVES 1/

MEMBER BANKS

3

IN THE NATION

FEDERAL RESERVE CREDIT*/
BIlLIONS

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

of dollars

BILLIONS OF DOLLARS
33.5

33.5
COMPOUNDED ANNUAl. RATES
OF CHANGE. AVERAGE OF _
THE FOUR WEEKS ENDING
MARCH 8. 1972 FROM,
THE FOUft WEEKS ENDING

33.0

33.0

32.5

1972

32.0
-

SEP
3' .5

RESERVES
31.0

31.0

30.5

30.5

1312.

BILLIONS

FEB.

30.0

30.0

29.5

29.5

82
-

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
___ THE FOUR WEEKS ENDING _
MARCH 8. 1972 FROM
THE FOUR WEEKS ENDING:

80

11.5
---- DEC

10.6

78

OCT.
FEDERAL RESERVE CREDIT
---- JUL.

76

1 0. 5

74

72

70
MAR.

« 20

3 17

JAN

FEB

3 17 31

14 28 12 28

9 23

7 21

4 18

1

15 29 13 27 10 24

OCT
1971

NOV

• 22

5 It

2 18

JAN

FEB
1972

1

15 29

LATEST DATA PLOTTED WEEK ENDING: MARCH 8, 1972
1/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.9 RELEASE.
2/ DEFINED TO INCLUDE HOLDINGS OF SECURITIES, LOANS. FLOAT ANP ’* 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

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

176.5
176.9
177,2
178.2
178.3

4 18

JAN

1

15 29 15 27 10 24

8 22

5 19

2 ie

1

IS 29

FEB
1972

LATEST DATA PLOTTED WEEK ENDING: MARCH 1, 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
5/3/71

6/30/71

8/4/71

9/1/71

-1.5
-0.7
-1,2
-0.6
0.3
2-2

-2.0
-2.2
-1.2
0.0
2.2

9/29/71

11/3/71

-1.0
0.0
1.2
3.5

-0.4
1.4
4.4

12/1/71 12/29/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
8/ 4/71
9/ 1/71
9/29/71
11/ 3/71
12/ 1/71
12/29/71
2/ 2/72
3/ 1/72


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

11.2
9.7
7.6
6.6
5.6
5.3
5.2
5.9

6.5
2.8
2.2
1.2
T. 4
1.8
3.3

3.3
6.8

8.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK
AVERAGES OF DA!lY FIGURES
SEASONALLY ADJUSTED

B'uL:ONS OF DOLLARS

BILLIONS

of

DOLLARS

229.2
229.8
230.4
231.4
232.5
_

MAR

1 1.LL
6 20

3 17

3 17 31

14 26 12 26

9 23

7 21

1

IS 29 13 27 10 24

OCT

5 19

2 16

1

!5 29

NOV
1972

LATEST DATA PLOTTED WEEK ENDING: MARCH 1, 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS1 H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
3/3/71

6/30/71

8/4/71

9/1/71

-0.3
0. 4
-0.4
0.4
1,2
2.9

-0.5
-1.2
0.0
1.0
3.0

9/29/71

1T/5/71

-0,5
0.9
1.9
4.1

0.6
2.1
4.9

12/1/71 12/29/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
8/ 4/71
9/ 1/71
9/29/71
11/ 3/71
12/ 1/71
12/29/71
2/ 2/72
3/ 1/72

10.8
9.5

J. 8
6.8
5.8
5.6
5.5
6.2

6.8
3.8
3. 1
2.0
2.3
2.7
4.0

4.4
7.4

8.9

1__________________________


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

PREPARED BV FEDERAL RESERVE BANK OF ST. LOUIS

6

TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

TOTAL TIME DEPOSITS

NET TIME DEPOSITS*

8 20

3 17

JAN

FEB

3 17 31

9 23

MAY

7 21

4 16

JUL

14 28 12 28

APR

AUG

1

15 29 15 2T TO 24

OCT

8 22

NOV

5 19

2 18

JAN

FEB

1

15 29

LATEST DATA PLOTTED WEEK EKIOINGi MARCH 1, 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS1 H.B RELEASE.
• NET TIME DEPOSITS ARE DEFINED AS. SAVINGS DEPOS1TS. Jf ME DEEM ITS OPEN ACCOUNT PLUS TIME
CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF 8100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING.
3/3/71

6/30/71

8/4/71

9/1/71

5.9
8.6
10.5
11.7
14. 1
14.7

1 1.5
12.9
13.8
16.3
16.6

9/29/71

11/3/71

14.8
15.4
17.9
18.1

16.5
19.7
19.4

12/1/71 12/29/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
8/ 4/71
9/ 1/71
9/29/71
11/ 3/71
12/ 1/71
12/29/71
2/ 2/72
3/ 1/72


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

M.6
12.8
12.2
12.4
12.8
13.2
14.3
14.7

3.6
5.3
7.5
9.0
10.2
12.4
13. 1

21.2
20.4

22-1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALL T

BILL IONS Of DOLLARS

ADJUSTED

BILLIONS OF DOLLARS

MO’«£Y STOCK PLUS TOTAL TIME DEPOSITS

MONEY STOCK PL.US NET TIME DEPOSITS m

5 20

5 17

JAN

14 28 12 28

9 25

7 21

I

15 29 15 27 19 14

5 19

8 22

2 Ifl

JAN

5 17 51

4 18

FEB

FEB

1

15 29

LATEST DATA PLOTTED WEEK ENDING: MARCH 1, 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
sen M2 IS DEFINED AS. CURRENCY. DEMAND DEPOSITS PLUS NET TIME DEPOSITS (SEE PAGE «).

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENOING:
3/3/71

6/30/71

8/4/71

9/1/71

9/29/71

11/3/71

5.5
5.8
6.9
8.5
9.7

7.0
8. 1
9.8
11.0

8.5
10.7
12.0

12/1/71 12/29/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
8/ 4/71
9/ 1/71
9/29/71
11/ 3/71
12/ 1/71
12/29/71
2/ 2/72
3/ 1/72


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

12.7
11.0
9.9
9.6
9.3
9.4
9.9
10.4

5. 1
4.4
5.3
5.5
6.3
7.5
8.5

2.8
4.6
5.0

e. i

7.6
8.7

12.6
13.8

15.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

CERTIFICATES OF DEPOSIT

8

LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
SEASONALLY AD JUSTED

BILLIONS OF DOLLARS

6 20

3 17

JAN

5 17 31

14 28 12 26

9 23

7 21

1

BILLIONS OF DOLLARS

15 29 !5 27 10 24

8 22

5 19

1

15 29

FEB

LATEST DATA PLOTTED WEEK END INGi MARCH 1, 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
NEGOTIABLF 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

1972
JAN.

5
12
19
26
FEB.
2
9
16
23
MAR..
T
8
15
22
29

CERTIFICATES
OF DEPOSIT

BILLIONS
NET TIME
DEPOS1TS *

33.2
33.2
33.2
33.3
33.4
33.5
33.8
34.3
33.8

240.0
240.7
240.9
241.4
242.4
243.0
244.4
245.0
245.8

M2 m
468.2
469.2
469.8
470.6
472.2
473.4
475.8
477.5
477.3

* SEE FOOTNOTE PAGE 6.
** SEE FOOTNOTE PAGE J.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

Interest Rates
Monthly Averages of Daily Figures

pr

>

7.27

y\J
Cor porate A aa Bon s

/h

J
3.19

1
p «i|

3-Mon Hi Treas ury Bil s

1961

1962

1963

1964

1965

1966 1967

1968

1969

1

Shaded areas represent periods of business recessions as defined by the National Bureau of Economic Research.
Latest data plotted: February


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

Prepared by Federal Reserve Bank of St. Louis

nO

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
8.5 -----

PERCENT
----- 8.5

CORPORATE Aaa BONDS

MUNICIPAL
BONDS**

5

RIME COM
PRIME COMMERCIAL
LOAlTRATE

SCOUNT RATE

THREE-MONTH TREASURY
BILL MARKET YIELD

1

15 29 12 26 12 26

JAN

FEB

MAR

9 25

7 21

4 18

APR

MAY

JUN

2 16 30 13 27 10

JUL
1971

AUG

24

SEP

6 22 5 19

OCT

NOV

3 17 31

DEC

14 29 11

JAN

25 10 24

FEB
MAR
1972

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGt MARCH 10, 1972

1972
7
14
21
28
FEB.
4
1 1
18
25
MAR.
3
10 ***
17
24
31
JAN.

CORPORATE
AAA BONDS

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

MUNICIPAL
BONDS MM

7.19
7.17
7.16
7.22
7.25
7.29
7.28
7.26
7.25
7.25

3.59
3.16
3.31
3.46
3.35
3.09
3.04
3.22
3.44
3.53

5.31
5.20
5.32
5.47
5.55
5.51
5.47
5.50
5.50
5.52

5.61
5.57
5.61
5.67
5.70
5.71
5.65
5.63
5.62
5.61

5.03
4.99
5.17
5.29
5.35
5.27
5.24
5.28
5.29
N.A.

* AVERAGES OF RATES AVAILABLE.
,
** 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

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
8.5 -----

PERCENT
----- 8.5

COMMERCIAL PAPER
4-T0-6 MONTH

FEDERAL FUM>S RATE

9 23

JAN

FEB

MAR

APR

7 21

MAY

-LI 1 I
4 '•
JUN

2 ie SO 13 27 10 24 fl 22
JUL
AUG
SEP
OCT

5 19
NOV

JLLL1

3 17 31 14 2fi II 25 10 24
DEC
JAN
FEB
MAR

1971
1g72
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGi MARCH 10, 1972


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

1972
JAN.

7
M
21
28
P'EB.
4
11
18
25
MAR.
3
10 X
17
24
31

PRIME
COMMERCIAL
PAPER
4-6 MONTH

FEDERAL
FUNDS

PRIME
BANKERS'
ACCEPTANCES

90 DAY
CD'SSK

4.38
4.10
3.98
3.88
3.98
4.00
3.93
3.88
3.90
4.00

3.85
3.55
3.53
3.33
3.20
3.28
3.50
3.19
3.28
3.45

4.10
3.88
3.88
3.85
3.75
3.50
3.45
3.44
3.60
3.71

4.34
4. 10
4.02
3.97
3.82
3.67
3.61
3.54
3.65
3.75

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

BORROWINGS AND EXCESS RESERVES
all

member

banks

in

the

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

nation
BILLIONS OF DOLLARS

EXCESS RESERVES

-0.4

0.6

-

NET FREE RESERVES

1.2

-

-1 .6

6 20

5 IT 31

M 26 12 20

9 23

7 21

JUL
1971

4 16

1

15 29 13 27 10 24

« 22

5 19

2 16

JAN

AUG

FEB
1972

LATEST DATA PLOTTED WEEK ENDING: MARCH 8, 1972


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Federal Reserve Bank of St. Louis

MILLIONS
1972
JAN.

FEB.

MAR.

5
12
19
26
2
9
16
23
1
8
15
22
29

EXCESS
RESERVES
312
105
218
192
245
50
325
178
21 1
167

BORROWINGS
57
17
14
12
16
42
17
16
68
103

FREE
RESERVES
255
88
204
180
229
8
308
162
143
64

PREPARED 0Y FEDERAL RESERVE BANK OF ST. LOUIS

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