Full text of U.S. Financial Data : Week Ending May 15, 1968

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* *

research library^

I fed-—j
of

Bant
St. Louis

S. finRnCIRL DATA
Week ending May 15,1968

MS 7 m

VELOCITY OF MONEY (Page 4)

MEMBER BANK RESERVES (Continued)

The income velocity of money (gross national product
at current prices divided by the money stock) was 4.53 in the
first quarter of 1968, up from 4.46 in the fourth quarter of
1967 and 4.43 in the third quarter.
Earlier last year veloci­
ty drifted lower from the 4.48 peak at the end of 1966. This
pattern is typical of periods of rapid monetary expansion.
When there is a rapid rise in money, the rate of spending
initially changes little and velocity declines. However, if
rapid rise in money continues for a prolonged period,

the last four weeks, up at an annual rate of 2.6 per cent
since early November, after adjustments for reserve req­
uirement changes. In the first eleven months of last
year reserves rose at an 11 per cent rate. The current
2.6 per cent rate compares with a 3.3 per cent trend
rate during the 1957-1967 period.

*

aal cash balances tend to rise faster than desired balances
and velocity accelerates. With money continuing the increase
at an advanced pace and with velocity accelerating, total
spending went up at a 10.3 per cent annual rate from the fourth
quarter last year to the first quarter of this year, compared
with an 8.4 per cent rate in the previous quarter, and a
5.1 per cent rate earlier last year.
MONEY STOCK (Page 5)
The nation's money stock, demand deposits and cur­
rency, averaged $184.9 billion in the four weeks ending
May 8, up at an annual rate of 5 per cent since late October.
During the first ten months of 1967 money went up at a
7 per cent rate. By comparison, the trend growth of money
^pm 1957 to 1967 was 2.6 per cent per year.
MEMBER BANK RESERVES (Page 3)
The growth in member bank reserves has slowed much
more than the growth in money during the last six months.
Total reserves of member banks averaged $25.6 billion in


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

The more pronounced slowing in the rate of
increase in bank reserves than in the money stock is
explained in large part by a marked slowing in the growth
of time deposits. Time deposits at all commercial banks
have gone up at a 6 per cent rate since late October
after rising at a 17 per cent rate earlier last year and
at a 12 per cent trend rate in the 1957-1967 period. The
recent slowing in time deposits probably reflects the
general rise in market interest rates, making the yield
on time deposits, which is restricted by Regulation Q,
less competitive.
BUSINESS LOANS (Page 9)
Since late last year there has been a pronounced
increase in the demand for loans at commercial banks by
business firms. Outstanding loans to business firms at
large commercial banks have risen at a 12 per cent annual
rate since late October. By comparison these advances
went up at a 4.5 per cent rate in the previous six months.

Rates of change reported in this release are
intended to serve as summaries which may be
useful in analyzing recent developments.

Prepared by Federal Reserve Bank of St. Louis
Released: May 17, 1968

FEDERAL RESERVE CREDIT U_
Averages of Daily Figures
Billions of Dollars

r i "i r
54

2

Seasonally ad justed by this bank. |_2

Billions of Dollars

II!!!

~ Annual rates of change Federal Reserve Credit
__ adjusted for reserve requirement changes
averages of four weeks ending May 15, 1968
- . from four weeks ending:
—nFeb. 14, 1968
—|-Nov. 15, 1967
—t Aug. 16, 1967

54

53

5o

52

52

Federal Reserve
--- 1968

Holdings

HIM

Credit

so. sy

So.oS

51

51

SC. 3k.

50.14
SI 00

SC. 37
50.07 fi

50

Federal Reserve Credit
50

49

49

48

48
Federal Reserve Holdings of U.S. Government
and Federal Agency Securities

47

47

48

46

45

45

1/ Federal Reserve Credit excludes float and a few minor
items. Data prior to Jan. 18, 1968 adjusted for the
estimated effect of reserve requirement changes.
2/ Seasonal adjustment for Federal Reserve Holdings
computed by this bank using data ending December 1967.
Borrowings from Federal Reserve not seasonally
adjusted.
Current unadjusted data appear in the

44

Latest data preliminary

43

44

43

'

0

20
Mar.


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

June

Sept.

Oct.

Mar.

3

17

1

15

:o
June

10 24

7

21

Prepared by Federal Reserve Bank of St. Louis

4
Sept.

0

RES^VES

All Member Bcj^ks in the Nation
Averages of Daily Figures

Billions of Dollars

imra
TOTAL RESERVES
—Annual rates of change, average of
— four weeks ending May 15, 1968
from four weeks ending:
Feb. lit, 1968
— «?. «X

— -

TOTAL
EFFECTIVE
RESERVES

— ~/9ig

I

/kti+b 0i(t ■ I b
a?

—------ n

1957-1967

---------

i—11»111
111111111
Seasonal
adjustment 'iconfuted
by this
bank using data ending December 1967.
Unadjusted data appear In the Board's
H.U.l. release.
‘

1/

Data prior to Jan. 18, 1968 adjusted for_
]estimated effect of reserve requirement _
—
changes.

U It: cl.
_

*f.sk __

(W
___rie iSfg

(e.

--­

3
Billions of Dollars

cjy

_

M.sj
asms

■4—y^iAsni.

--

A--

4

^JS.S3 f-

H-f
.Total

—

-

RESERVES
AVAILABLE
FOR PRIVATE
DEMAND DEPOSIT^

i9te

- r .vt /Z13

~

-

/J

/wc

_

_

MO I7./0

_

A7 ncjL
u^3 l?.Mf

-

/ /4.?#

-17.2
Seasonal adjustment factors
— were computed using data
— through early 1967.

RESERVES AVAILABLE FOR
PRIVATE DEMAND DEPOSITS
Annual rates of change, average of”
four weeks ending May 15, 1968
~
- from four weeks ending:
Feb. lU, 1968
/ /■■ 7
-

Reserves Available for —'
Private Demand Deposits

Latest data preliminary
Latest data plotted week ending:

8

22

5


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

May 15, 1968

—'Data prior to Jan. IS, 1968 adjusted for .
estimated effect of reserve requirement
1957-1967
changes.

J_I_1—L

I9
June

Sep .

Nov.

Dec.

Jan.

Mar.

June

Prepared by Federal Reserve Bank of St. Louis

i_l_1
Sept.

Annual Rates
of Turnover

— Latest data plotted;


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

INCOME VELOCITY OF MONEY
GNP/Money Stock

first quarter 1968

Prepared b.

Annual Rates
of Turnover

tiie Federal Reserve Bank of St. Louis

MONy^TOCK*

Averages o^Paily Figures
Elllions of Dollars

Seasonally Ad justed

--- Annual rates of change, average of
--- four weeks ending May 8, 1968
~ from four weeks ending:
Feb. T, 1968
^THov. 8,
1967
Ix o
___Aug. 9,
May 10,

1967
1967

WEEKLY DATA

1968
ftV.1

lfi.7

it /<?/?

- n

igii

'

m 1 ]
. c /S3. u

y-jr.c
V- 7. /

U <83.H
jo /fat

=)7 Ifj.g
fl.r. 3 /St. t
,0 IP4J
n /870
2A I ft I
I if 3rS

"
.

.
.
-

v S IfS-OP.

13-week centered,
moving average .

Current data appear in the Board's H.6 release. Back
data appear in the August I967 Federal Reserve Bulletin.
For trend of money stock by months see this bank's
monthly release entitled "Monetary Trends".

Latest data preliminary

8

22

Mar.

19 3

5

Apr.


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

17 31
May

14

28 12

June

26

9

July

23
Aug.

1967

6

20
Sept.

it

18
Oct.

1

15
Nov.

29 13

27
Dec.

10 24
Jan.

7

21 6

Feb.

20
Mar.

3

17
Apr.

1

15

29 12

May

June

26 10

24

July

7

21
Aug.

1968
Prepared by Federal Reserve Bank of St. Louis

4 18
Sept.

CERTIFICATES OF DEPOSIT [1_
Large Commercial Banks

Billions of Dollars

25.0

7T4
1

Billions of Dollars

25.0

1

——
...

Annual rates of change seasonally unadjusted data,
average of four weeks ending May 8, 1968 from
four weeks ending:
— Feb. 7 1968
__
> 1 u
8 1967
A 0
—
Aug. 9 1967

24.0

23.0

1

t
1964 - 1967

24.0

s'

23.0

2. 6
H. 1

22.0

22.0
—
—\—

--

21.0

21.0
1 ~r

—

t

~T~
T"

20.0

20.0

9.74
19.0

—

jt
f
JS

4

—

\

r

—I-

19.0

——

kJ

18.0

18.0
Millions of

Ft a

17.0

1968
7

IH
Zl

IS
rOdi?.

16.0

13
Z0
11
9

20,10 5
2o, 7ft
20, ?lf
21, OH
20 Hi
21 03S
20 5+3
20,
20,201

17.0

16.0

»

15.0

//
,

l
\
f

-

4_L

15.0

1*1, T 7 1
n 7 Si
n.noi
r

-

14.0

14.0
___

Latest
1

8

*

13.0

0 ~

1

___ __

8

22
Mar.

5

19
Apr.


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

12
May

June

26

July

9

23

Aug.

1967

6 20
Sept.

21
Oct.

Nov.

Dec.

Jan.

Feb.

6

Current and year ago data appear in the
Board's H.4.E?. release.
1/ Negotiable time certificates
in denominations of iino nnn
"Mill
1 1 IMILL_L_ L_L_
u ___ |
—

20

Mar.

7
Apr.

May

June

July

|

21
Aug,

1968
Prepared by Federal Reserve Bank of St. Louis

4

18
Sept.

TIME D0DSITS*

7

1 Commercial Banks
Averages of Daily Figures
Seasonally Ad us

Billions of Dollars

—.Annual rates of change, average of
-four weeks ending May 8, 1968
—from four weeks ending:
-Feb. 7,
1968
+ i>.7
—Nov. 8,
1967
f- <£,/
'Aug. 9,
1967 y- g 7
__May 10, 1967
y_ /s?\g

Billions of Dollars

I- 18u> 5

/7

!?7.0

8

M
Latest data preliminary
Latest data plotted week ending:


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

-J—I—l-L

1 I 11 II

May 8, 1968

-t ' I

I
18 1

June

July

Aug.

-

-4

V

M-4-, I I I I

Current data appear in the Board's H.6 release. Back
data appear in the August 1967 Federal Reserve Bulletin.
For trend of time deposits by months see this bank's
monthly release entitled "Monetary Trends".

Oct.

15
Nov.

29 13

27 10

2U

7

21

6

20

3

17

1 I II

1

4
June

Prepared by Federal Reserve Bank of St. Louis

18

BORROWINGS AND EXCESS RESERVES
All Member Banks in the Nation
Ave ra es of Daily Fig ures

Millions of Dollars

excess

RESERVES

8
Millions of Dollars

free

BORROWINGS

RESERVES

BIWEEKLY DATA

— ML#

-37 0

io

1.600

1,400
_BIWEEKLY SETTLEMENT PERIODS

- Yi/
1,200

1,200

1,100
1,000

1,000

Excess Reserves

Net Free Reserves
Borrowings

One Week Only-

1,000

-

1,100

-

Latest data preliminary
Latest data plotted
J____ I.
I I. I I I
I 1 I
1 15 29 12 26 10 24 7


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

-

1,000

-

1,100

week ending May 15. 1968

I

21 5
June

15

16

30 13 27 ll
Sept.

25

0

22

6

20

3

17 31
Jan.

l4 20
Feb.

13

27 10

24

8

22

5

19
June

3

17 31

14 28

Prepared by Federal Reserve Bank of St. Louis

ll 25

BU S IN
LOANS
Large ComMrrcial Banks
Billions of Dollars

Wednesday Figures

Billions of Dollars

I I I I I I I

Seasonally adjusted by this bank.

Annual rates of change, average of
four weeks ending May 8, 1968
from four weeks ending:
Feb. 7, 1968
f/l.g
Nov. 8, 1967
+//.f
Aug. 9, 1967
f g, V
May 10, 1967
-f g.J

Millions of Dollars
SEASONALLY
ADJUSTED

UNADJUSTED

t,S37!

1960-1967

t.s, iss'
k 7, o/j

(■C i/3
64. n$
47.6 i 1

47.

3o¥

LI.^87

Liy+e> 8

5

19 3
Apr.


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

17 31
May

n/

Current and year ago unadjusted data appear in
the Board's H.k.2 release.
Seasonal adjustment
computed by this bank using 1962 through 1967 data

_Latest data preliminary
—Latest data plotted:
8 22
Mar.

4 7.

1^ 2.
June

rrm

ttnti

June

July

Aug

Prepared by Federal Reserve Bank of St. Louis

10

YIELDS ON SELECTED SECURITIES
Averages of Daily Rates Ended Friday

per cent

Corporate
Bonds

J Long-Term
"Government Bonds

Three-Month
•easury
Bill Market Yield
Discount Rate

Latest data plotted are averages of rates available for the week ending: May 17, 1968

-rnittt m r 1 mm
10

24

Mar.

7

21

Apr.

5

19

May

2

16 30

June


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

Ik

28 11 25

8 22
Sept.

6

20

3

17

1

15

29 i<=

im±i
9
23 8

^

Feb.

22

Mar.

5

19

3

17

31 14

12

26

9

June

Prepared by Federal Reserve Bank of St

23
Sept.

SELECTED SHORT-T®A INTEREST RATES
Per Cent

Per Cent

Averages of Daily Rates Ended Friday
TTT
PRIME
COMMERCIAL

PAPER
4-6-MONTH

tfloS
Alt-

a.
7

s./s

S. so

n'f
X:

S.SO
s.Si
S.So

/

S SO

PRIME
LARGE
BANKERS'
90 DAY FEDERAL
ACCEPTANCES CD'S** FUNDS

S A3

s. ,_r

S3S
S.3S
S.3S
S.JS

s.ss

sh 0

6.iV

3.70

S70
3. 70
3 70

3- 7*
5 IP

s.ss
S.93
te.OS
i.fiO
Prime Commercial Paper
4-to-6 Month

Prime Bankers
Acceptances

Federal Funds Rate.

Discount Rate

Latest data plotted Eire averages of rates available for the week ending: May 17, 1968

10

24

7

21

5

19

2

16 30
June

l4 28

11 25
1967

* AVERAGES OF RATES AVAILABLE

**S0URCE: SALOMON BROTHERS AND HUTZLER
http://fraser.stlouisfed.org
SECONDARY MARKET RATE ON 90-DAY PRIME CD'S.
Federal Reserve Bank
of St. Louis

22

6

20
Oct.

3

17

1

15 29 1.
Dec.

26

9

23
Feb.

8 22
Mar.

5

17 31

14 28
June

12 26

1968
Prepared by Federal Reserve Bank of St. Louis

Sept.