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D

■J2.4Z

mk eadiito:

Total reserves of member banks, adjusted for
the April increase in reserve requirements, have de­
clined at a 2.6 per cent rate since late January,
after increasing at an 8 per cent rate in the pre­
ceding two years (page 12). These reserves are a
major determinant of the money supply. Federal Reserve
credit, a chief factor affecting reserves, has increased
at a 3.7 per cent rate since January, compared with a
° Ter cent rate of growth in the preceding two years
x. -ge 2).

Private demand deposits at commercial banks
have grown at a 2„7 per cent rate in the last three
months and at a 1.5 per cent rate since December, down '
from a 6.7 per cent rate in the preceding two years
(page 11). Honey stock, which also includes currency
held by the public, has followed about the same pattern,
increasing at a 3.5 per cent rate in the last three
months and at a 2.4 per cent rate since December (page 3).
From December 1966 to December 1968, money increased at
a 6.5 per cent annual rate.
Time deposits have declined at a 3 per cant
rate since January (page 7), as market interest rates
have been high relative to the Regulation Q ceilings
ch limit rates banks are allowed to pay on time and
savings deposits. From June to December of 1968, when
there was a relative decline in market interest rates,
these deposits grew at an annual rate of 18 per cent.


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

In the past few weeks, there has been a
sharp rise in some short-term market interest rates
(page S). The rate on Federal fund3 averaged 8.25
per cent last week, with some trading at rates above
S per cent. Rates on very short-term Eurodollar
deposits reached peaks of 11 to 12 per cent last week.
As a result of higher interest rates, banks have
reduced their holdings of excess reserves, which
earn no interest, and have increased their borrowings
from Federal Reserve banks (page 10). The figures
reported for excess reserves are an overstatement of
unused reserves because banks can apply a portion of
them to meet requirements in the following week.
This carry-over provision and other measures giving
banks greater flexibility in meeting reserve require­
ments were introduced last September along with the
procedure for basing requirements on deposits two
weeks earlier. In view of these changes affecting
the desired amount of excess reserves, recent develop­
ments in aggregate reserve measures may tend to
overstate the degree of monetary restraint.
Borrowing from Federal Reserve banks has
become attractive for member banks because the 6 per
cent discount rate is low relative to rates on other
sources of funds. The large net borrowed reserve
figures reported in recent weeks reflect profitmaximising behavior by banks as well as the time
deposit disintermediation and increased Federal Reserve
restraint.
Rates of change reported in this release are!
intended to serve as summaries which nay he !
useful In analyzing recent developments.

Prepored by Federal Reserve Bank of St. Louis
Released: May 16,1969

L ioi

MONET4AY BASE LL
FEDERAL REHivE CREDIT[2
Averages of Daily Figures

of Dollars

80

Billions of Dollars

_Seasonally adjusted by this bank.
j_ Annual rates of change, average of four weeks
j-ending May 14, 1969 from four weeks ending

79
Monetary
Base
78

[Feb.
iNov.
Aug.
May

12,
13,
14,
15,

F.R. Credit

1969
1968
1968
1968

+ 3-7

+ 0.6
77-3?

1957-1968
Monetary Base

n

m

76

75

74

&o.77
73

m
72

Monetary
Ease *

Federal Reserve Credit

7+ 2 IS
74, yxh
7U, JS3
77, <479

1/ Uses of the 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.

71

57

0

17,3 7Sp

60, 94^2,
6- o,

£*',793 r

2/ Defined to include holdings of securities,
loans, and float, adjusted for reserve
requirement changes and changes in requirements
due to shifts fn deposits among classes of
banks

56

55

77,
77./73-

C-+ Q j aL. 9

6-o,

59, 7 3 7

Latest data preliminary
LatesC data plotted week ending: ‘"*3
7

21
Feb.


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

6

20
Mar.

3

17
Apr.

1

15 29
May

’

_

12 26 10 24
June
July
1968

7

21
Aug,

4 18
Sept.

2

16 30 13 27 11 25
Cct.
Nov.
Dec.

8

22
Jan.

5

19
Feb.

5

19
Mar.

2

16 30
Apr.
1969

14 28 11 25
May
June

Prepared by Federal Reserve Bank of St. Louis

9

23
July

ions

MONEYWOCK LL
MONEY STOCK LLPLUS U.S GOVERNMENT DEMAND DEPOSITS[2
Averages of Daily Figures
Seasonally Adjusted

f Dollars

210

Billions of

-

209
208
207

204

—

-

Money
Stock
1969 V 3-S
1968 + +.3
1968 + 3-L
1968

206
205

-

Annual rates of change, average of four weeks
"ending May 7, 1969 from four weeks ending:

-Feb.
“Nov.
"Aug.
May

5,
6,
7,
8,

Money Stock
Plus
U.S. Gov't. Deposits
+ 9-2+~ */■ ^
+ Y-Y
+ *>■

—

202

|_

.
i

203

\
1
V
r \

195 7-1968
Money Stock plus
U.S. Government
Demand Deposits

201
200

i
—

A

A
□

r1

/ oiUU.6

V

1

L

—

_

19
198
197
196
195
Money Stock
194

i i

193
192
191

Money
1969 Stock

190

•fjd-.
s
/z t f2 -7
/? /9‘/ 2
2b 191.3

189

Money Stock plus
U. S. Government
Demand Deposits

/m

200. 2.

20t-i

m.o
ns i

188

i?3' s
u l?3.(o

/9S. £

187

n tn o
Jib /HU

/•??■/

/7S-C

.86

/jfiv 3 /f+-3—

(9S-9

185

' 9 /?(?

2(3. /
cJt. 3
2n
3
2CO. I

1/ Current data on money appear in the Board's 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".
.
2/ U.S. Government demand deposits, all commercial banks,
seasonally adjusted by this bank.

184
183
182

—

/fo l9(e-V
23 199 i

30 /93U

—7r*j_7 /9+.°

T <1,00.2

181
180

0'

Latest data preliminary
Latest data plotted week ending: May 7, 19by
10 24

7

21

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

1

15 29
May

12 26 10 24
June
July
1968

30
Aug.

Sept.

13 27

11 25

8

22
June

Mar.
1969

MONEY STOCK PLU^IME DEPOSITS*
.lioi

Averages of Daily Figures
Seasonally Ad usted

of Dollars

Billions of Dollars
—----- —i——i 420

420
418
416
414
412

Annual rates of change, avera
four weeks ending May 7, 1969
from four weeks ending:
Feb. 5, 1969
->-0.3
Nov. 6, 1968
3

410
' '08

-1957-1968

406
404
402
400
398
396
394
392
390
388
386
Oy~- t

384

317■ r

j82
380
378
376
374
372
370
368
366
364
362
360

Latest data preliminary
Latest data plotted week ending:

Current data appear in the Board's H.6 release. Back
data appear in the June 1968 Federal Reserve Bulletin.
For trend of money stock plus time deposits by months
see this bank's monthly release entitled "Monetary Trends

May 7, 1969

0"
10 24

7

21 S


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

’O
Mar.

17
pr.

1

15 29 12 26
May
June

10 24
July
1968

7 21
Aug.

4
18
Sept

16

30 13

It l 111__! ■
27 11

i t I i I I i i__I t I i __i_l_
5 19
: 16 30 14
Mar.
Feb.
Apr.
M
1969

23 11

June

Julv

BUSINESAOANS
Large Commercial Banks
Wednesday Figures

Billions of Dollars

□

T
84

82

■
four
“from
I Feb.
_Nov.

80

7, 1968
8, 1968

*

82

!' |

-f/- 73- /

-

_L_

84

—
H

r1960-1968

4

-

! I
_I_\1—

—

1

80

i 478

L rr
_

1

——

76

'
.
> ■v

—
7T

.

•/
/
_

_

76

tfp r~L

—

73,393

It-**/

7 % <f<3*
7-y /? 7C,
r73'*y7
7-s 33 7
74, <76 8

u__. ..

16,962­
76,6 S3

76*87

64

X
62

o sg

74

i_

_

73,71?
68

_

i L

MILLIONS OF DOLLARS
SEASONALLY
UNADJUSTED
ADJUSTED
IS,933
73,9*8
73, 938
7 3,377
73,13 7
73,333­
73,99*
73,376

74 794
73, ///
7336Y

t \y

70

TI
44r- 1

_

jf

-

1969

72

. J,

! | .
—i:—,1—

74 £ 4

74

E

72

7 3 373
7^.3ei6
77,17* .
7V,3*?
7 f, 67S

70

68

77, ??■*79,33 7
7^897
66

73'13 i
73,203,
li,J79
70,797

76, SS7

d
P

;

IMI I II I IT


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

1

64

___
62

-- - - - - - r -

" Latest data preliminary
_ Latest data plotted:
| I I I I | I | I I I-L

78

j

r—i

66

Dollars

1i

l

is

■■

weeks ending May 7, 1969
four weeks ending:
5, 1969
6, 1968
-f /*-3

_Aug.
-May

Billions of

Current and year- ago unadjusted data appear in
May 7, 1969
-l-J-

12 26 10 24
June
July
1968

7

21
Aug.

4

18 2
Sept.

16 30 13 27
Oct.
Nov.

the Board's H.4.2 release. Seasonal adjustment
_L
computed by this bank using 1963 through 1968 data. _|_
1 l_I_I__l_i_I_1__!__!—1—!—1—L
2 16 30 14 28 11 25 9 23
11 25 8
22
Apr.
May
June
July
Dec.
Jan.
1969

;o

6

CERTIFICATES ^DEPOSIT jl
Largs Commercia! Banks
Wednesday Figures

ions

Billions of Dt llai

Millions of Dollars

; May 7,

27

27

SM 230

26
vT

ad,37Y
s/ m
a.),3+f
SI, 03!
a#

ac/s i
ij, nr
i /is**
<%39£
n&f
/ § 71+
: /r&tt*
i /Xw
'! /r ffj

25

24

n
1% l/*-

23

26

25

24

23

/ 7,

22
22

21
21
20

20

19
19

18
18

J7.^°
17

17

16

0

Current and year ago data appear in the
Board's H.4.2. release.
1/ Negotiable time certificates of deposit
in denominations of $100,000 or ssore
atest data preliminary
atest data plotted
I I 1 1-1


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

May 7, 1969

16

0

79 12 26
June

10 24
July

1968

7

21
Aug.

4

18
Sept.

?

16

30 13

27 11

Nov.

25

8

22

5

lion

TIME DJJpSITS*
All Comm
I Banks
Averages of Dally Figures
Seasonally Ad us ted

of Dollars

228
226
224

222
220
218

Billions of Dollars

i—i——i—races
I
I—Annual
of change, average of four weeks
ending May 7, 1969 from four weeks ending:
Feb.
5, 1969
—
&
Nov.
6, 1968
f- &-Y
Aug.
7, 1968
V" Ce>3
8, 1968
A 7./
May
11957-1968

216
214

212
210
208
206
04

202
200

I—l

198
196
194

-

192
190

40 3-3
Ail-'
W// s

188
186

An*#-7
i.OO.%
10O-1
2 *0-7

184
132
80

231. <8
J6 22.DO. 7
JL3 400-4

178
176

mt-H. i

174

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 3ea this bank’s
monthly release entitled ’"Monetary Trends”.

172
170

Latest date preliminary
Latest data plotted xseek ending:

1569

168

o'

mtrdrH
10 24
Jan.

7 21
Feb.


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

6

20
Mar.

3

17
Apr.

1

15 29
May

12 26 10 24
June
July
1968

3
i

7

21
Aug.

4

18 2
Sept.

16 30 13 27 11 25
Nov.
Dec.
Oct,

8

22
Jan.

5

19
Feb.

5

19
Mar.

168

_L
2

16 30
Apr.
1969

14 28 11 25
May
June

Prepared by Federal Reserve Batik of St. Louis

9

23
July

YIELDS ON SELECWPD SECURITIES
Aver ages of Daily Rates Ended Friday

Per Cent
9.50

Per Cent
9.50

I ! IT
3-Month
TS!!!UCy

1969

■

Corporate

3-5 Year

Long-Term

i.og
6.0-)
&./?

HUb- 7

3.50

C-.3 7
(* ■ 3 ‘Z
$.3V

8.50

<o. OO

& .30

6 . <2,&
*■77
i> ./C
U.U

G./7

5■ 93

6.. i.i
U-Xf

S. ^o

3. 76

7.00

Prime Commercial
Loan Rate

6. 7S

I j j—
Corporate/
Aaa Bonds

Three-Month Treasury
Bill Market Yield
’

Discount Rate
Long-Term
Government Bonds

4.00

Latest data plotted are averages of rates available for the week ending:

12

26

9

23

8

22
Mar.

5

19


‘AVERAGES OF RATES AVAILABLE
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3

17
May

31 14 28 12 26 9
23
June
July
Aug.
1968

Sept.

May 16, 1969

21
ir.

4

18
Apr.
1969

2

16 30 13 27
May
June

Prepared by Federal Reserve Bank of St. Louis

11 25
July

SELECTED SHORT-«M INTEREST RATES
Averages of Da i ly~Ra tes Ended Friday

Per Cent

Per Cent

Prime
Acceptances

S5J- 7

90 Day
CD'S **

Federal
Funds

9.00

&, .So

8.00

7.0 O

S* oS

7.

7, 58

3.5

Commercial Paper
4-to-6 Month

T~Fp.

Bankers
Acceptances

6.00

Federal Funds Rate
5.50

5.50

Discount Rate

4.00

3.50

1 Latest data plotted are averages of rates available for the week ending:
12 26

23

8

22

5

19

3

17

31 14 28 12
June


* AVERAGES OF RATES AVAILABIE
http://fraser.stlouisfed.org
■ **
* SOURCE: SALOMON BROTHERS AND HUTZLER
Federal Reserve Bank of St. Louis

1968

26

9

23

6

20

4

18 1

15 29
!ov.

13 27
Dec.

10 24
Jan.

7
21
Feb.

7
21
Mar.

4 18
Apr.

2

16 30 13 27
May
June

1969
,
, „
,
.
Prepared by Federal Reserve Bank of St. Lours

11 25
July

10

BORROWINGS AN^XCESS RESERVES
All Member Banks in the Nation
ions

Millions of Dollars

if Dollars

600
BIWEEKLY SETTLEMENT PERIODS

S

500

UWu

300

S
tX.

73 i
87 S
774
944
I/9S
?H7
7S9
1/34
III 7
i, * X
mo

J2o7
A4t
Ji./

200

~\•JEEKLY RESERVE PERIODS —
1 1

RFSFRVFS

WEEKLY DATA

1969

400

FREE

BORROWINGS

100
000
900

r

- SJ. 7
--4=^7
j
-&>?/
I
-0.94 7 L
-938
-7S(c .
i
-US
i
-9i>4
j
~/OG7
II.<TQ M T~
- °)(pS p
i
t

r

i

600
500
s
□

A'
-0-

300
200

100

v

1,400

v/
T

t

1,100
1,000
900

j
T

l

.nr Li

V

800

I

700

_

600
500

1
1
■>\
t 1

l

1,200

mo

r

\
T1
rvi
1

H

1,300

1

p

ip

i
_

1
X

/
/

vlj \

V

,

400

f *V

A

J

~

1
V

“I-

r
f
/"l

700

i
J _u_
1
1
■J

A\

4
'\

r

800

1,500

;

a7“

1,600

/■<
\
1

n N
£

r

r
l _
1
rr

\

400

L_
L
y

300

u
-

c

200

3 >3

Ad
•M

100

1

0

0
—
100

s/ \
T

200
300

~~
A

. Ii
s

f

/

500
N Bt
600
700

n

/
n

900
7
,000
~1

,200
,300
,400
,500

. Latest data preliminary
Latest data plotted week ending:

i969
3

I I I I M I 1 f .1 J. I I I ! i 1 I I I 1 II i i M

10 24
Jan.

7 21
"el.

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

6

20
Mar.

3 17
Apr.

15
May

29 12 26
10 24
June
July
1968

7 21
Aug.

r ~t——i

-

200

-

300

-

400

-

500

-

600

-

700

-

800

-

900

-

1,000

-

1,100

-

1,200

-

800

,100

100

U
/

400

-

\

1---1---

placing all member banks on a one-week
reserve adjustment period, beginning with
the week ending September 18, 1968 the
above reserve data are reported.on a
one-week period.
' ■ > i : < ' * ' > l__!_I__I_i---!-- 1---I-- 1-- i---1-- i---.-- L
16 30 13 27 11 25
8 22 5 19 5 19
4 18
Feb.
Mar.
Jan.
Oct.
Nov.
Dec.
Sept.

- 1,300
- 1,400
2

16 30
Apr.
1969

14 2C
May

11 25
June

9 23
July

- 1,500

11

O^i
DEMAND DEPOSIT COMPONENT
OF MONEY STOCK*
Averages of d^Ply Fig ures
Billions &f Dollars

Billions of Dollars

Seasonally Ad justed

165

165
164

-Annual rates of change, average of
four weeks ending May 7, 1969
"from four weeks ending:
Feb.
Nov.
Aug.
May

5,
1969 -AT 7
6,
1968 1-3.7
7, 1968 ' *-2.7
8,
1968 + S.G

1357-1968

155

152

y£-

5

j<rc.3

'<r/.?
tco.z/+?■!
I'/'i.C
/•re.9

H9.S

«h
T

/So.3
/SO- 3
/50.3
/V 9. 4
/*?.7

IT I I I II I I
latest data preliminary
bate:-! data plotted week ending:

TJ. ±iii±

10 11
Jan.

.:i
1‘ch.


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

6

21)
Mar.

3

17
Apr.

1

Current data appear in the Board's 11.6 release. Back
data appear in the June 1968 Federal Reserve Bulletin.
For trend of demand deposits by tenths set this
monthly release entitled "Monetary 'I tends

May 7, 1969

15' ?9 12 2.6 10 24
May
June
July
1968

7

’1
Aug.

I 1 IT!
30
Oct.

j
Jan.

1.9
Mar.

Prepared bv Federal Reserve B;-nk of St. louis

Billions of Dollars

mmptith

111

Annual rates of change, average of four weeks
ending May 14, 1969 from four weeks ending:
Reserves

29.5

Available
For Private
Demand Deposits
29.0

12

RESER^jj
All Member Bank^W the Nation
Averages of Daily Figures

Billions of Dollars

cum
TOTAL

Seasonal adjustment computed by this bank using data ending December 1967.
Unadjusted data appear in the Board's
H.4.1. release.

liki

font, J il -iS
u- 47.iV

3.7Jt

2.L. Si* If
-rt.19
t 36.71
/i.kk.fP
e2J ckb.Sl

f-/,5
Nov.

i-^.O
+ *.*
y-V.3

1968

Ao

c?7.27

7

1957-1968

H A7.lt ?

28.0

27.5

TOTAL

l —l

27.0

26.5

In order to maintain comparability,
figures since April 17 are pn an effective
basis, that is, reduced about $650 million
due to change in reserve requirements

RESERVES
AVAILABLE
FOR PRIVATE
DEMAND DEPOSITS

n.iy

n /7^1-i

RESERVES AVAILABLE
PRIVATE DEMAND DEPOSITS^

t n t.7 J

f h. 3. n 7i
1 17 U
/t f-'ti
IS. u

sc.n ic

m

16.8

Latest data preliminary
Latest data plotted week ending:
10 24
Jan.

7 21
Feb.


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

6

20
Mar.

7 tin.

/V /7.SP

May 14, 1969
12 26 10 24
June
July
1968

7

21
Aug.

4

18 2 16 30 13 27 11 25
Sept.
Oct.
Nov.
Dec.

8

22
Jan.

5

19
Feb.

5

19
Mar.

2

16 30 14 28 11 25
Apr.
May
June
1969

Prenared by Federal Reserve Bank of Si .

T/>u is

9

23
Jul;

18.0