Full text of U.S. Financial Data : Week Ending: May 10, 1972

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RESEARCH LIB RAC Y

Week ending: May 10, 1972

Federal Reserve Bank
of St. Louis

M 21

1936

The nation's money stock averaged $234.9 billion in the
four weeks ending May 3, up at a 5.9 percent annual rate in the
past year and at an 8 percent rate in the past five months. For
comparison, money grew at a trend rate of 5.9 percent from late
1966 to late 1971. Demand deposits, which comprise about threefourths of the money stock, have risen at a 5.6 percent rate in
the past year and at a 7.6 percent rate in the past five months.
Market interest rates are below their mid-1971 levels.
For example, 3-month Treasury bill rates averaged 3.56 percent
in the first three days of this week, up about 40 basis points
from February but about 1.8 percentage points below the July
1971 level. Yields on seasoned corporate Aaa bonds averaged
7.33 percent in the first part of this week, 6 basis points
above February, but about 30 basis points below last July.
Income velocity of money, defined as Gross National
Product divided by the money stock, has risen at a 2.6 percent
annual rate since the fourth quarter of 1970 compared with a
slight decline in the previous five quarters (page 9). A com­
parison of the rates of velocity in the five quarters following
each of the post-war recession troughs is shown in the table
below. The cyclical pattern exhibited by income velocity in
the 1969—72 period has been similar to other post-^war cycles;
namely, velocity has tended to slow or even decline during
recessions and increase during expansion periods. Velocity
increased at a trend rate of 1.3 percent from 1966 to 1971
compared with a 3.4 percent rate from 1952 to 1966.


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Federal Reserve Bank of St. Louis

Income Velocity
(GNP/Money Stock)

Trough Quarter
4th
3rd
2nd
1st
4th

1949
1954
1958
1961
1970

Rate of Increase
from Trough Quarter
to Five Quarters Later
14.4%
6.8
4.2
5.6
2.6

Prepared by Federal Reserve Bank of St. Louis
Released: May 12, 1972

V

2

SONETARY BASE v
MULTIPLIERS

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

_

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
—MAY 10. 1972 FROM
_
THE FOUR WEEKS ENDING.
-

MAR.
FEB.
JAN.
— DEC.
NOV.
_
OCT.
SEP.

8,
9,
12,
8,
10,
13,
8,

1972
1972
1972
1971
1971
1971
1971

11.7
~
11.2
MONETARY BASE

8.7
7.9
7.2

197 Z

MILLIONS.

12
19
26

91
9:
9:

10

92

LATEST DATA PLOTTED WEEK ENDING. MAY 10, 1972
RATIO
2.9

RATIO

2.8
MULTIPLIER
2.7

2.6

2.5
RATIO
MAR.

2!

2.537
2.54
2.551
2.543
2.543

5 17 31

14 28 12 26

APR

0 23

7 21

4 18

1

15 20 15 27 10 24

MAY

OCT

NOV

8 22

5 10

2 16

JAN

FEB

I

15 20 12 26 10 24

1972
LATEST DATA PLOTTED WEEK ENDING. MAY 3, 1972
1/ USES OF MONETARY BASE ARE MEMBER BANK RESERVES AND CURRENCY HELD BY THE PUBLIC ANO 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.


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

2.4

RESERVES 1/^

ALL MEMBER BANKS

3

I N THE MT I ON

FEDERAL RESERVE CREDIT v
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
33.5

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
MAY 10. 1972 FROM
THE FOUR WEEKS ENDING*
MAR.
JAN.
— DEC

1972
.1972
12, 1972

33.0

32.5

19.7
11.8
12.1

32.0
RESERVES

31.5

31.5

31.0
30.5

30.5

1272.

BiLLIQNS
32.7

30.0

29.5

0

82
COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
___ THE FOUR WEEKS ENDING
MAY 10, 1972 FROM
THE FOUR WEEKS ENOING:
78

76

MAR.
-----FEB.
JAN.
DEC.
~ NOV.
OCT.
-----SEP.

8,
9,
12,
8,
10,
13,
8,

1972
1972
1972
1971
1971
1971
1971

80

11.9
78
FEDERAL RESERVE CREDIT

11.0

76

7A

1972

MILLIONS

72

70

3 17 31

4 28 12 26

APR

MAY

9 23

7 21

4 18

JUL

AUG

1

13 29 13 27 10 24

OCT

6 22

NOV

5 18

2

16

JAN

FEB

1

IS 28 12 26 10 24

1972
LATEST DATA PLOTTED WEEK ENDING* MAY 10, 1972
1/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
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.


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

r

4
DEMAND DEPOSTT COMPONENT OF MO

41

Y STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
IBS

BILLIONS
179.5
181.1
181.0
180.4
181.0
180.6

180

175

170

165

3 17 31

14 28 12 26

APR

0 23

MAY

7 21

1

15 29 13 27 10 24

JUL
AUG
1971

OCT

8 22

NOV

5 19

2 16

JAN

FEB

1

IS 29 12 26 10 24

1972

LATEST DATA PLOTTED WEEK ENDINGi MAY 3, 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDINGi
5/5/71

9/1/71

10/6/71

-2.0
-2.2
-1.3
0.0
2.1
3.7
3.8

-0.7
0.0
1.4
3.7
5.4
5.3

11/3/71

12/1/71

-0.7
1.4
4.2
6.2
5.9

3.3
6.5
8.3
7.6

1/5/72

2/2/72

10.0
11.2
9.5

13.5
10.6

3/1/72

TO THE AVERAGE
OF FOUR WEEKS
ENDINGt
10/
11/
12/
1/
2/
3/
4/
5/

6/71
3/71
1/71
5/72
2/72
1/72
5/72
3/72


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Federal Reserve Bank of St. Louis

6.0
5.3
4.2
3.8
4.0
4.9
5.7
5.6

9. 1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
240 ------------ 1----------1-----

BILLIONS OF DOLLARS
----- ---------- ------------- 240

billions
233.4
235. 1
234.9
234.6
235.2
234.7

5.9*/ TRENO LINE FROM

3 17 31

MAR

14 20 12 26

APR

MAY

0 23

JUN

7 21

4 16

JUL
AUG
1971

1

15 2

SEP

1

OCT

NOV

JAN

15 20 12 26 io 24

FEB
1972

LATEST DATA PLOTTED WEEK ENDING, MAY 3. 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING,
5/5/71
9/1/71
10/6/71
11/3/71
12/1/71
1/5/72
2/2/72
3/1/72
TO THE AVERAGE
OF FOUR WEEKS
ENDING,
10/
11/
12/
1/
2/
3/
4/
5/

6/71
3/71
1/71
5/72
2/72
1/72
5/72
3/72


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Federal Reserve Bank of St. Louis

6.2
5.6
4.4
4.2
4.4
5.2
6.0
5.9

-0.5
-1.2

-0. 1

1.0
2.8
4.5
4.5

-0.3
0.9
2.2
4.2
5.9
5.7

0.3
2. 1
4.6
6.5
6.2

4.4
7.0
8.8
8.0

9.8
11.1
9.5

13.3
10.5

9.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

•iME DEPOSITS
ALL COMMERCIAL BANKS

•

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

TOTAL TIME DEPOSITS

NET TIME DEPOSITS*

3 17 31

14 28 12 26

APR

0 23

7 21

4 16

1

15 20 13 27 10 24

OCT

JUL
AUG
1971

MAY

6 22

NOV

5 10

2 16

JAN

FEB

1

15 20 12 26 10 24

1972

LATEST DATA PLOTTED WEEK ENDING. MAY 3. 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
M 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 DEPOS1TS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS END 1NGi
5/5/71

9/1/71

8.6
9.4
10.3
1 1.7
12.7
13.2
12.9
12.6

1 1.5
12.9
15.0
16.3
16.6
15.6
14.7

10/6/71

11/3/71

12/1/71

15. 1
17.1
18.3
18.4
16.8
15.6

18.6
19.7
19.4
17.3
15.8

21.2
20.4
17.5
15.7

1/5/72

2/2/72

20.4
16.4
14.4

13.9
12. 1

3/1/72

TO THE AVERAGE
OF FOUR WEEKS
ENDING.
10/
11/
12/
1/
2/
3/
4/
5/

6/71
3/71
1/71
5/72
2/72
1/72
5/72
3/72


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Federal Reserve Bank of St. Louis

9.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

STOCK PLUS TIME DEPOS TS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
530 r=-------------------- -----

BILLIONS OF DOLLARS
----- ---------- ---------- =1 530

MONEY STOCK PLUS TOTAL TIME DEPOSITS

TONEY STOCK PLUS NET 11Mb DEPOSITS

I 17 ]|

14 21 12 20

APR

9 23

MAY

7 2!

4 !«

JUL

AUG

1 15 28 IS 27 10 24

OCT

• 22

NOV

3 10

2 16

JAN

FEB

1

IS 29 12 26 10 24

LATEST DATA PLOTTED WEEK ENDING. MAY 3. 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
Ml 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 ENOINGi
5/5/71

9/1/71

10/6/71

11/3/71

12/1/71

7.4
7.5
7.4
8.0
8.6
9.2
9.5
9.2

5.5
5.8
7.4
8.5
9.6
9.9
9.5

7.3
9.0
10.1
11.2
11.3
10.6

9.3
10.7
11.9
11.8
11.0

12.6
13.7
13.1
11.8

1/5/72

2/2/72

15.0
13.6
11.9

13.5
11.2

3/1/72

TO THE AVERAGE
OF FOUR WEEKS
ENDING.
10/
11/
12/
1/
2/
3/
4/
5/


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Federal Reserve Bank of St. Louis

B/71
3/71
1/71
5/72
2/72
1/72
5/72
3/72

9.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

CERTIF#ATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

S 17 31

#

1« 28 12 26

9 23

7 21

1

15 29 13 27 10 24

8 22

JUL
AUG
1971

BILLIONS OF DOLLARS

5 19

2 16

JAN

FEB

1

15 29 12 26 10 24

1972

LATEST DATA PLOTTED WEEK ENDING: MAY 3. 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF 8100,000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.


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Federal Reserve Bank of St. Louis

MONEY AND TIME DEPOSIT DATA

1972
MAR.

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

CERTIFICATES
OF DEPOSIT

BILLIONS
NET TIME
DEPOS1TS *

M2 MK

33.8
33.7
33.0
33.1
33.7
33.4
34.2
35.0
35.3
35.6

245.9
245.7
246.8
246.4
246.6
247.7
247.5
247.9
248.5
249.8

477.3
478. 1
480.7
480.2
480.0
482.8
482.3
482.4
483.7
484.5

* SEE FOOTNOTE PAGE 6.
*# SEE FOOTNOTE PAGE 7.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS


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Federal Reserve Bank of St. Louis

Income Velocity of Money
Annual Rates
of Turnover
5.5,------ —

GNP/Money Stock

Annual Rates
of Turnover
—-------15.5

oT T T T T
Annual rates of turnover computed with quarterly GNP (current dollars) at seasonally adjusted
annual rates, and seasonally adjusted monthly averages of daily money stock.
Latest data plotted: 1st quarter
Prepared by Federal Reserve Bank of St. Louis

YIELDS ON^ELECTED SECURITIE#
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
8.5

PERCENT
----- 8.5

—

CORPORATE AAA BONDS

MUNICIP/
BONDS**

PRIME COMMERCIAL
LOAN RATE

THREE-MONTH TREASURY
BILL MARKET YIELD

DISCOUNT RATE

S|5 I 19I I L2 1 1 I6 I 901 I 1 I4 I 2* I III I 25 I I9 I 23I I6 I 20I I I3 I 17I I1 1 15LI 28M 12I II
.LI I M III I l,M III26 10 24 7 21 4 18
3 17
MAR

APR

MAY

JUN

JUL

AUG
1971

SEP

OCT

NOV

DEC

JAN

FEB

MAR
1972

APR

MAY

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGj MAY 12. 1972

1972
MAR.

APR.

MAY

3
10
17
24
31
7
14
21
28
5
12 *
19
26

CORPORATE
AAA BONDS

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

MUNICIPAL
BONDS MK

7.25
7.24
7.22
7.24
7.24
7.25
7.28
7.33
7.36
7.34
7.33

3.44
3.57
3.85
3.81
3.82
3.80
3.81
3.64
3.54
3.56
3.56

5.50
5.57
5.84
5.83
5.92
6.07
6.08
6.02
5.86
5.72
5.76

5.62
5.62
5.67
5.68
5.69
5.73
5.76
5.76
5.71
5.69
5.70

5.29
5.18
5.32
5. 34
5. 40
5. 49
5. 54
5.50
5. 20
5.35
N.A,

L

1

J8K* BOND^BUYER1S* AVERAGE * 'iNDEX" OF 20 MUNICIPAL BONDS, THURSDAY DATA.
N.A. - NOT AVAILABLE


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

TED SHORT-TERM

SEL

AVERAGES OF DAlL/ RATES ENDED FRIDA/

PERCENT
8.0

INTEREST RATES
PERCENT
----- 8.5

f------

COMMERCIAL PAPER
4-T0-6 MONTH

FEDERAL FUNDS RATE

U I I 1 1
5

19

2

16 30

14 21 II

MAY

25

JUN

S 23

6 20

3 17

AUG

SEP

1

15 29

2 26 10 24

7 21

4

JAN

FEB

18

3

17 31

14 28

APR

12 26

MAY

1972
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. MAY 12. 1972


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Federal Reserve Bank of St. Louis

1972
MAR.

APR.

MAY

3
10
17
24
31
7
14
21
28
5
12 X
19
26

PRIME
COMMERCIAL
PAPER
4-6 MONTH

FEDERAL
FUNDS

PRIME
BANKERS'
ACCEPTANCES

90 DAY
CD'SNBK

3.90
4.00
4.20
4.30
4.33
4.50
4.63
4.63
4.55
4.55
4.50

3.28
3.60
3.93
3.98
4. 18
4.29
4.09
3.91
4.39
4.19
4.18

3.60
3.73
4.03
4.13
4.13
4.40
4.50
4. 48
4.33
4.25
4.25

3.65
3.70
3.86
4.09
4.28
4.39
4.56
4.68
4.60
4.49
4.46

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

12

BORROWING® AND EXCESS RESERN®5
ALL MEMBER BANKS IN THE NATION
averages of daily figures

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

1.6

1 .2

BORROWINGS

0.8

0.4

EXCESS RESERVES

-0.4

0.8

-

0.8

-

NET FREE RESERVES

1.2

-

1.2

-

1.6

-

3 17 31

14 28 12 26

APR

9 23

7 21

MAY

4 ]«

J

15 29 1 3 27

AUG
1

SEP

OCT

I Lii

1 0 2 4 8 22

NOV

DEC

5 19

2 1#

1

JAN

FEB

MAR
APR
1972

15

29 12 2# 10 24

MAY

LATEST DATA PLOTTED WEEK ENDING. MAY 10, 197'


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Federal Reserve Bank of St. Louis

MILLIONS
EXCESS
RESERVES

1972
MAR.

APR.

MAY

1
8
15
22
29
5
12
19
26
3
10
17
24
31

-

-

82
176
393
133
285
374
166
9
301
167
229

BORROWINGS
67
103
13
115
153
141
14
45
279
117
85

FREE
RESERVES

-

-

15
73
380
248
132
233
152
54
22
50
144

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

-1 .6