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Week ending: May 1r 1974
LIBRARY
JUN 0 8 1979


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

The growth of the adjusted bank credit
proxy— began to reaccelerate in mid-December after
growing at a slow rate the previous four months. On
balance since mid-December the adjusted credit proxy
has grown at a 14.7 percent annual rate. Much of the
increase in the credit proxy has occurred in the last
two months. Since late February growth of the ad­
justed bank credit proxy has accelerated to a 24
percent rate.
Most of the recent rapid rise in bank credit
has been manifested in a rise in business loans. Since
mid—December, business loans adjusted have grown at a
31 percent rate, with most of the increase occurring
in the last two months. Investment and non-business
loan components of bank credit have shown only
a moderate rate of growth over the same periods.
The recent rapid growth of bank credit has
been supported by a continued rapid growth of the
monetary base. Over the last two months the base has
risen at an 11.9 percent annual rate, somewhat faster
than its rate of growth over the previous six months.
Also there has been a sharp rise in the outstanding
volume of large CDs. To the extent that certificates
of deposit or other time deposits grow more rapidly
than demand deposits, a given growth of the base can
support a larger growth of bank credit than otherwise.
Since late March the outstanding volume of large CDs,
on a nonseasonally adjusted basis, has risen about
$5.8 billion exceeding the peak level of 1973.
Reflecting the rapid increase in demand for
business loans at commercial banks, the prime bank
loan rate has risen 200 basis points in the last month,
reaching 10.75 percent at many large banks this week.
Costs to a bank of acquiring funds to support the
rapid expansion of business loans increased as well,
with the weekly average market yield on large CDs
rising to about 11 percent, up about 300 basis points
since the end of February.
VBank credit consists of the earning assets of
commercial banks, that is total loans and investments.
This data is available only on a monthly basis.
Changes in total deposit liabilities of member banks,
the adjusted credit proxy series, are available on
a weekly basis and hence are used as a more timely
"proxy" for changes in bank credit.

Prepared by Federal Reserve Bank of St. Louis
Released May 3

1974

MONETARY BASE

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

110
MILLIONS

1974

108

106

104

102

100

98

4

18

2

16 30 13 27

It

25

8 22

5 19

3 17 31

14 28 12 26

NOV

9 23

6 20

6 20

FEB

DEC

MAR
1974

1973
LATEST DATA PLOTTED WEEK END INGt MAY 1,

3 17

1

15 29

1974

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.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
5/2/73

8/1/73

4.8
5.7
6.3
6.8
7.3
7.0
7.3
7.8

4.7
5.9
6.9
7.6
7. 1
7.5
8.2

10/3/73 10/31/73 11/28/73

1/2/74

1/30/74

2/27/74

7.3
9.4

1 1.9

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
10/ 3/73
10/31/73
11/28/73
1/ 2/74
1/30/74
2/27/74
4/ 3/74
5/ 1/74


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

10.5
10.3
10.6
9.3
9.4
10. 1

10. t
10.5
8.9
9.2
9.9

10.7
8.6
9.0
9.9

7.6
8.6
9.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIER i/
FEDERAL RESERVE CRED I T 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

RATIO

MULTIPLIER

RATIO
MAR.
APR.

3

2.574
2.576
2.592
2.590
2.590
2.563

I I I I I I I I I I I I I

I I I I
LATEST DATA PLOTTED WEEK ENDING: APRIL 24,

1974

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
98

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
___ THE FOUR WEEKS END ING
MAY 1. I 974 FROM
THE FOUR WEEKS ENDING:

FEB.

96

1974
1974

___ JAN.
JAN.
NOV.
“ OCT.
AUG.
----- MAY

94

1974

1973
1973

92

FEDERAL RESERVE CREDIT

90

974
APR.

MILLIONS

88

3
86

«

<•

2

1C 30 13 27 U 25
JUN
JUL

8 22

5 10

3 IT 31

14 28 12 26
NOV

DEC

9 23

6 20

6 20

3 17

MAR

APR

1

IS 29

1974
LATEST DATA PLOTTED WEEK ENDING: MAY 1,

1974

1/ RATIO OF MONEY STOCK (Ml ) / MONETARY BASE.
2/

T0 INCLUDE HOLDINGS OF SECURITIES, LOANS, FLOAT AND 1'OTHER*1 ASSETS, ADJUSTED FOR
RESERVE REQUIREMENT CHANGES AND CHANGES IN REQUIREMENTS DUE TO SHIFTS IN DEP6SITS AMONG
CLASSES OF BANKS.
DATA ARE SEASONALLY ADJUSTED BY THIS BANK.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS

220

BILLIONS OF DOLLARS

-------- 1-------- 1------

---- -------- ----------

BILLIONS
MAR.

7 21

MAR

211.3
210.9
212.7
212.2
214.6
212.6

2

16 30

APR

13 27

JUN

It

25

JUL

8 22

AUG
1973

5

19

3

17 31

SEP

LATEST DATA PLOTTED WEEK ENDING: APRIL 24,

U 28

NOV

12 26

0 23

DEC

6 20

FEB

6 20

3 17

1

15 29

MAR
1974

1974

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS'

H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
4/25/73

7/25/73

9/26/73 10/24/73 11/21/73 12/26/73

1/23/74

2/27/74

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
9/26/73
10/24/73
11/21/73
12/26/73
1/23/74
2/27/74
3/27/74
4/24/74


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

5.9
5.5
6.2
6.4
5.0
5.6
6.1
6.3

-2.3
0.7
2.2
0.9
2.4
3.3
3.9

7.2
7.2
3.9
5.4
6.2
6.6

9.0
4.1
5.9
6.8
7.1

1. 1
4.4
5.8
6.4

2.8
5.3
6.1

10.7
10.2

10.0

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

220

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

230

BILLIONS OF DOLLARS

--------- 1--------- ,-------

------ ------------ --------------- 280

SILL IONS
274.5
274.2
276.0
276.2
278.6
276.4

7 Zl

4

MAR

APR

18

Z

16

30

MAY

13 Z7 II

JUN

JUL

Z5

8 ZZ

AUG

5

19

SEP

3

17

OCT

3

NOV

17

1

15 Z9

DEC

1973
LATEST DATA PLOTTED WEEK ENDING, APRIL 24,
CURRENT DATA APPEAR

1974

IN THE BOARD OF GOVERNORS'

H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
4/25/73
7/25/73 9/26/73 10/24/73 11/21/73 12/26/73 1/23/74 2/27/74
TO THE AVERAGE
OF FOUR WEEKS
ENDING,
9/26/73
10/24/73
11/21/73
12/26/73
1Z23/74
2/27/74
3/27/74
4/24/74


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

5.8
5.6
6.2
6.6
5.5
6. 1
6.6
6.9

-0.3
2. 1
3.6
2.5
3.8
4.7
5.2

7.3
7.9
5.2
6.4
7.3
7.6

9.5
5.4
6.9
7.8
8.1

3.3
5.9
7.3
7.7

4.3
6.7
7.4

11.4
1 1.0

1 1.0

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

TOTAL TIME DEPOSITS

NET TI ME DEPOSITS X

4

18

2

10 30

13 27

JUN

11

25

8 22

5

19

3

17 31

JUL

14 28

NOV

12 26

9 29

8 20

6 20

FEB

DEC

MAR

1973

3

17

5 29

I 974

LATEST DATA PLOTTED WEEK ENDINGx APRIL 24,

1974

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 *100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
4/25/73

7/25/73

10.8
1 1.7
11.9
11.6
12.0
12.4
12.0
11.6

13.4
13.4
12.5
13.0
13.5
12.7
12.1

9/26/73 10/24/73 11/21/73 12/26/73

1/23/74

2/27/74

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
9/26/73
10/24/73
11/21/73
12/26/73
1/23/74
2/27/74
3/27/74
4/24/74


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

14.9
12.8
13.5
14.0
12.9
12. 1

11.3
12.7
13.5
12.3
1 1 .5

12.2
13.5
12.0
11.2

15.8
13.0
11.6

1 1 .8
10.4

7.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
670 <=:--------------------- ----------

BILLIONS OF DOLLARS

----- -------------------- =1 670

MONEY STOCK PLUS TOTAL TIME DEPOSITS

MONEY STOCK PLUS NET TIME DEPOSITS**'

7 21

2

18 30

13 27

JUN

latest

11

25

5 18

3 17 31

H 28

12 26

B 23

april

24,

6 20

6 20

FEB

data plotted week endings

CURRENT DATA APPEAR

8 22

JUL

MAR

3

17

1

15 29

1974

IN THE BOARD OF GOVERNORS'

H.6 RELEASE.

** Mj IS DEFINED AS: 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:
4/25/73
7/25/73 9/26/73 10/24/73 11/21/73 12/26/73 1Z23/74 2/27/74
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
9/26/73
10/24/73
11/21/73
12/26/73
1/23/74
2/27/74
3/27/74
4/24/74


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

8.5
8.8
9.2
9.2
8.9
9.4
9.4
9.3

6.6
7.8
8.2
7.9
8.8
8.8
8.8

11.3
10.5
9.5
10.4
10.2
10.0

10.4
9.1
10.4
10.2
9.9

7.9
9.9
9.8
9.5

10.3
10.0
9.6

1 t .7
10.7

8.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

8

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
NOT SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

76 --------- ----------,---------

4 IS

2

--------------------- ---------------

16 SO 13 27 11 25
JUN
JUL

8 22

5 IS

3 17 31

4 28 12 26
NOV
DEC

8 23

6 20

6 20

3 17

5 29

1 974
LATEST DATA PLOTTED WEEK ENDING: APRIL 24,
CURRENT DATA APPEAR

1974

IN THE BOARD OF GOVERNORS'

H.6 RELEASE.

V^EKLYAREPORT>!<NGCCOlI***
IlERC^ALSBANKS^POS 1T ISSUED IN DENOMINATIONS OF #100,000 OR MORE BY LARGE

1974
MAR.

6
13
20
27
APR.
3
10
17
24
MAY
1
8
15
22
29

BILLIONS
CERTIFICATES CERTIFICATES
NET TIME
OF DEPOSIT
OF DEPOSIT
DEPOS1TS *
NOT SEAS. ADJ.
65.9
66.5
66.3
67.8
69.5
71.5
71.8
73.6

65.9
66.8
67. 1
68.8
71.5
73.9
74.8
76.9

308.9
309.0
309.5
309.4
309.8
310.7
311.2
31 1.7

M2 UK
584.7
583.9
584.0
583.6
585.8
587.0
589.9
588. 1

* SEE FOOTNOTE PAGE 6.
** SEE FOOTNOTE PAGE 7.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

76

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

BILLIONS OF DOLLARS

8 ILL IONS OF DOLLARS

485

475

465

455
CREDIT PROXY ADJUSTED

1/

445

435
CREDIT PROXY

425

415

7 21

4

18

2

16 30

13 27

JUN

11

25

8 22

5 IB

3

17 31

JUL

14 28

NOV

12 26

DEC

9 23

6 20

6 20

FEB

MAR

1973
LATEST DATA PLOTTED WEEK ENDINGt APRIL 24,
CURRENT DATA APPEAR

CREDIT
PROXY
MAR.

20
27
APR.
3
10
17
24


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

CREDIT
PROXY
ADJUSTED

450.6
451.0
456.8
459. 1
463.3
462.3

459.3
460.2
466.3
468. 4
472.8
472.0

15 29

1974

IN THE BOARD OF GOVERNORS'

BILLIONS

1

1974
H.9 RELEASE.

1/ INCLUDES MEMBER BANK DEPOSITS, BANK-RELATED COMMERCIAL PAPER,
U.S. BANKS, AND CERTAIN OTHER NONDEPOSIT SOURCES.

1974

3 17

EURODOLLAR BORROWINGS OF

COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF THE FOUR WEEKS ENDING
APRIL 24, 1974 FROM THE FOUR
WEEKS ENDING:
CRED1T
CRED1T
PROXY
PROXY
ADJUSTED
FEB.
JAN.
DEC.
NOV.
OCT.
JUL.
APR.

27,
23,
26,
21 ,
24,
25,
25,

1974
1974
1973
1973
1973
1973
1973

21 .2
13.5
13.4
11.1
9.6
9.2
9. 4

24.0
15.4
14.7
12.4
10.7
10. 1
10.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

10

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT

11.5
11.0
10.5

10.0
9.5
9.0
8.5
COMMERCIAL PAPER
8.0
7.5

CORPORATE Aaa BONDS

7.0
’RIME BANK
-OAN RATE
6.5
6.0
5.5
5.0

MUNICIPAL
BOIOSX*

4.5

2 16 SO IS 27 11 23
APR
MAY

6 22

6 20

3 17 St 14 28 12 26
SEP
OCT
1973

9 23

7 21
DEC

4 IS
JAN

I IS
FEB

1

IS 29 12 26 10 24
1974

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGt MAY 3, 1974

1974
MAR.

1
8
15
22
29
APR.
5
12
19
26
MAY
3 S
10
17
24
31

90 DAY
CO’S WES

PRIME
COMMERCIAL
PAPER
4-6 MONTH

8.07
8.31
8.47
8.64
9.38
9.68
9.95
10.07
10.40
10.99

7.88
8.00
8.18
8.50
9.10
9.38
9.60
9.73
10.13
10.67

PRIME
BANKERS'
ACCEPTANCES
7.85
8.00
8.10
8.60
9.10
9.30
9.50
9.50
9.85
10.42

CORPORATE
Am BONDS

MUNICIPAL
BONDSmk

7.87
7.92
7.99
8.05
8.1 1
8. 17
8.25
8.26
8.28
8.33

5.26
5.27
5.32
5.46
5.57
5.73
5.75
5.61
5.82
N.A.

* AVERAGES OF RATES AVAILABLE.
m BONO BUYER’S AVERAGE OF SECONDARY MUNICIPAL BONDS. THURSDAY DATA. WEDNESDAY TWO DAYS
INDEX OF 20
A* SEVEN-DAY AVERAGES
MARKET RATES FOR THE WEEK ENDING
EARLIER THAN DATES SHOWN. CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.9 RELEASE.
N.A. - NOT AVAILABLE

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

PREPARED BY FEDERAL RESERVE BA** OF ST. LOUIS

0

11

SELECTED SHORT-TERM

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT
1 1.5

11.0

FEDERAL FUNDS RATE

10.5

10.0
9.5
H TREASURY

T YIELD

9.0

8.5

8.0

7.5

7.0

DISCOUNT RATE

6.5

6.0

5.5

5.0

2

ie so is rr n zs
APR

» zz

e zo

u

MAY

31

m

za iz zs

SEP

3

OCT

a zs

7 zi
DEC

1 is
JAN

1973

1

IS 29

MAR.

1
8
15
22
29
APR.
5
12
19
26
MAY
3 *
10
17
24
31

10 23

FEB

1974

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. MAY 3,

1974

IZ M

1974

FEDERAL
FUNDS UK

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

8.81
8.98
9.03
9.33
9,61
9.93
10.02
10.36
10.78
11.17

7.36
7.71
7.82
8.06
8.35
8.51
8.49
8.05
8.10
8.85

6.93
7.06
7. 16
7.48
7.69
7.91
7.98
7.94
8.04
8.24

6.62
6.71
6.75
6.88
6.93
7.02
7.04
6.99
7,07
7.12

* AVERAGES OF RATES AVAILABLE.
** SEVEN-DAY AVERAGES FOR WEEK ENDING WEDNESDAY TWO DAYS EARL IE* THAN DATE SHOW,
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.9 RELEASE.


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

PREPARED BY FEDER*

'E EAMK OF ST

LOUIS

0

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS

IN THE NATION

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

4-0 f--------1--------- 1------1974
MAR.

------ ------------ ------------ =1 4.0

MILLIONS,
27

1817
2157

4

MAR

18

APR

2

BORROWINGS

16 SO

MAY

13 27

JUN

II

25

8 22

JUL

AUG

5

10

5

SEP

17 51

OCT

14 28

NOV

12 26

0 25

DEC

JAN

6 20

6 20

5

FEB

MAR

APR

1973

17

I

IS 20

MAY

I 974

LATEST DATA PLOTTED WEEK ENDING* MAY 1,

1974

BUSINESS LOANS

BILLIONS OF DOLLARS

(COMMERCIAL AND INDUSTRIAL )
WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

126
“ COMPOUNDED ANNUAL RATES OF CHANGE
— AVERAGE OF THE FOUR WEEKS EM)ING
— APRIL 24, 1974 FROM THE FOUR
_WEEKS ENDING:
BUS I NESS
“
BUSINESS
LOANS
—
.LOANS. ADJUSTED

1973

122
120

53.6
36.2
30.9
25.4

35.8
— NOV. 21

124

25.4
21 .4

1 18
116
'BUSINESS LOANS ADJUSTED

114

1/

112
1 10

108
BUSINESS LOANS

106
BUSINESS-----BUSINESS
LOANS
.LOAN?
ADJUSTEd------

104

118,497-------

100

MAR. 20

102

98
96
4

MAR

18

APR

2

16 50

15 27

JUN

II

25

8 22

I

JUL

NOV
1973

LATEST DATA PLOTTED WEEK ENDING* APRIL 24,

DEC

FEB

15 29

MAR
1974

1974

1/ INCLUDES LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS TO OWN SUBSIDIARIES, FOREIGN BRANCHES,
HOLDING COMPANIES, AND OTHER AFFILIATES.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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