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F//VA/VC/AL

£D^\TX\

Week ending: November 22, 1978
Sjrrotjgi,

library
DEC 2 6 1979

The strong demand for bank loans during the last two
months has been reflected in rising short-term interest rates.
Although short-term interest rates have risen much more in the
last two months than during the previous two months, bank loans
have expanded about as rapidly in both periods, as shown in the
table below.
The behavior of bank holdings
of securities
(investments) and their issuance of large CDs also provide
evidence of a continued strong demand for bank loans.
Although
growth of bank reserves (monetary base minus currency) has
increased to an 11.4 percent rate since August, from a 10 percent
rate over the previous two months, banks have reduced their
holdings of securities and accelerated their issuance of CDs in
the last two months to make additional loans available.
The most recent weekly data indicate that the strong
demand for bank loans is continuing in November. As shown on page
11, business loans at weekly reporting large commercial banks have
continued to rise sharply in recent weeks. As the growth of the
monetary base has slowed in recent weeks, banks have sharply
lnCrffSe^ their issuance of large CDs (page 12) to maintain the
growth or loans. Also, this past week most large commercial banks
increased their prime lending rate from 10.75 to 11 percent.
GROWTH OF SELECTED COMPONENTS OF
BANK CREDIT AND LARGE CDs
Period: 1978

Total
Loans

June - Augus t
August - October


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

Business
Loans

Investments

Large
CDs

14.4 %

10.1 %

4.7 %

-2.7 X

13.6

11.8

-0.9

14.0

Prepared by Federal Reserve Bank of St. Louis
Released: November 24, 1978

2

MONETARY BASE

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
144

BILLIONS

142

140.8
141.0
141.1
141.3
140.8
141.5

132

130

128

I I I I
30 14 28 11

DEC

25

JAN

8 22

8 21

5 10

3 17 31

M 28 12 26

JUN

FEB

0 23

6 20

4 18

1

15 20 13 27

JUL

LATEST DATA PLOTTED WEEK ENDING* NOVEMBER 22, 1978
THE MONETARY BASE CONSISTS OF MEMBER BANK RESERVES AT THE FEDERAL RESERVE BANKS AND CURRENCY
IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF COMMERCIAL BANKS), ADJUSTED
FOR RESERVE REQUIREMENT RATIO CHANGES AND SHIFTS IN THE SAME TYPE OF DEPOSITS BETWEEN BANKS
WHERE DIFFERENT RESERVE REQUIREMENT RATIOS APPLY- THE MAJOR SOURCES OF THE MONETARY BASE ARE
FEDERAL RESERVE CREDIT AND THE GOLD STOCK. DATA ARE COMPUTED BY THIS BANK. A DETAILED DE­
SCRIPTION OF THE MONETARY BASE IS AVAILABLE FROM THE FEDERAL RESERVE BANK OF ST. LOUIS.

MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
11/23/77

2/22/78

4/19/78

5/24/78

6/21/78

7/19/78

8/23/78

9/20/78

6.8
8.1
9.0
8.0
8.5
9.5
9.0

9.9
10.9
8.9
9.4
10.5
9.7

12.7
9.2
9.9
1 1 .0
10.0

7.9
9. 1
0.8
9.7

7.4
10. 1
8.9

13.7
10.9

10.4

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/19/78
5/24/78
6/21/78
7/19/78
8/23/78
9/20/78
10/25/78
11/22/78


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

9. 1
8.9
9.3
9.8
9.0
9.3
9.9
9.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIER v
ADJUSTED FEDERAL RESERVE CREDIT*/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO
2.9

MULT PLIER
\

,
l"s==d

h>---

L978
OCT . 1 1

2.3

RATIO
2.591
2.587
2.§45
8 2.565
“
15 2.566
1 1 1 1 .ml -.111111111' 1 '*

i

is

III. ■ INI -U 1

1 1 1

in. jut. 111 -LIU. 1 1 1 -LI 1

LATEST DATA PLOTTED WEEK END IMG: NOVEMBER 15, 1978
BILLIONS OF DOLLARS
126
1

1

1

BILLIONS OF DOLLARS
126

1

“ COMPOUNDED ANNUAL RATES
-- OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
“ NOVEMBER 22, 1978 FROM
-- THE FOUR WEEKS ENDING.
-

SEP.
AUG.
—JUL.
- JUN.
MAY
-- FEB.
_ NOV.

20,
23,
19,
21,
24,
22.
23.

1978
1978
1978
1978
1978
1 978
19 77

XT'"

AD. USTED FEDER7(L RESERVE CRED1T

12.7
12.8

-

10.
1 1.
9.
1 1.

-

-

_

V

-

-

112
19M

-

NOV
108

.

18

1 1 1 -LI..I 1
S

19

OCT

2

...ii i
ie SO 14 28

NOV
1977

DEC

111
11

JAN

_LLL 1
25
8 22
FEB

latest data plotted week ending:

111
8 22

MAR

1 1 1

111 1

5

3

19

APR

17 SI

MAY

1 1 1
14

1 1 1
28

12 26

JUN JUL
1978

1 1 1 1
9 23

AUG

“
—

108

122T2

111

0

6 20

SEP

OCT

NOV

DEC

November 22, 1978

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

«EDIT CONSISTS OF FEDERAL RESERVE MOLDINGS OF SECURITIES LOANS Fl hat
OTHER ASSETS. ADJUSTED FEDERAL RESERVE CREDIT IS COMPUTED BY SUBTRACfING TREASURYT
DEPORTS AT FEDERAL RESERVE BANKS FROM THIS SERIES, AND ADJUSTING THE SERIES FOR r!^Y
SERVE REQUIREMENT RATIO CHANGES AND SHIFTS IN THE §AME TYPE OF DEPOSITS BETWEEN BaS<S
WHERE DIFFERENT RESERVE REQUIREMENT RATIOS APPLY. DATA ARE COMPUTED BY THIS BANK.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

110

.1
22

5

112

121.7
m

OCT.

1 10

bjlliqns

4

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

billions of dollars

875
870

BILLIONS
869.4
869.3
865. 1

865
860

868.2
870.9
871.0

855
850
845
840
835
830
825
820
815
810
805
800
795
-Ej 790
o

5

19

2

16 30

14

DEC

28

11

25

JAN

8 22

8 22

3

19

3

17 31

H 28 12

26

9 23

1

6 20

15

29

13 27

FEB

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 15, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

MONEY STOCK PLUS NET T ME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE
11/16/77

AVERAGE OF FOUR WEEKS ENDING:

2/15/78

4/12/78

5/17/78

6/14/78

7/12/78

8/16/78

9/13/78

8.0
8.2
7.8
8.2
8.7
9.0
8.4

9.8
8.7
9.0
9.5
9.8
8. 9

7.5
8.4
9.2
9.6
8.6

8.2
9.3
9.8
8.5

10.7
10.8
9.1

11.4
8.8

7.4

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/12/78
5/17/78
6/14/78
7/12/78
8/16/78
9/13/78
10/18/78
11/15/78

6.9
7.7
7.8
7.6
7.9
8.3
8.5
8. i


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

PREPARED BY FEDERAL RESERVE BANK OF ST.

LOUIS

MONEY STOCK (Ml )
AVERAGES OF DAILY FIGURES
StASUNALLY ADJUSTED

BILLIONS OF DOLLARS
370 ----- 1------ ,---

LLIONS OF DOLLARS
1------ ----- 370

BILUQN5
364.3
364.3
361.2
362.4
361.3

S

DEC

JAN

19

5 17 31

FEB

14 21 12 M

JUN

9 23

6

20

1

15 29

13 27

JUL

1977
LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 15, 197B
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.8 RELEASE.
THE MONEY STOCK CONSISTS OF DEMAND DEPOSITS PLUS CURRENCY AND COIN HELD BY THE NONBANK PUBLIC.

MONEY STOCK (Mt )
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING*
11/16/77

2/15/78

4/12/78

5/17/78

6/M/78

7/12/78

5.7
6.2
7. 1
8.3
5.9

5.7
7. 1
8.5
5.7

8/18/78

9/13/78

8.4
9.8
6.0

TO THE AVERAGE
OF FOUR WEEKS
ENDING*
4/12/78
5/17/78
6/14/78
7/12/78
8/18/78
9/13/78
10/18/78
11/15/78

6.8
9.0
8.8
8.2
8. 1
8.3
8.7
7.4


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

10.7
9.9
8.8
8.4
8.7
9.2
7.5

13.6
10.6
9.6
9.7
10.2
7.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

s

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT
12.0
11.5
1 1 .0

10.5

10.5

10.0

10.0
9.5
9.0
CORPORATE Aaa BONOS
8.5
PRIME BANK
LOAN RATE

8.0
7.5

90 DAY CD’S:
7.0
COMMERCIAL PAPER

6.5

6.0

MUNICIPAL
BONDS»*

5.5
5.0

2

16 30

13 27

JAN

10 24

FEB

10 24

7

5

21

APR

19

2

16 30

14 26

11

25

22

6 20

3

17

MAY

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: NOVEMBER 24, 1978

1978

90 DAY
CD’S *98*

PRIME
COMMERCIAL
PAPER
4-6 MONTH

PRIME
BANKERS’
ACCEPTANCES

CORPORATE
Aaa BONDS

MUNICIPAL
BONDS *BK

8.95
9. 15
9.26
9.64
10. 10
10.77
10.84
10.59

8.75
8.97
9.07
9. 19
9.68
10.27
10.38
10.23

8.89
9.06
9.33
9.59
10.46
10.63
10.47
10. 35

8.81
8.85
8.88
8.94
9.04
9.06
9.02
9.00

6.07
6. 10
6. 14
6.21
6.22
6.17
6. 1 1
N.A.

OCT.

6
13
20
27
NOV.
3
10
17
24 *
DEC.
1
8
15
22
29

* AVERAGES OF RATES AVAILABLE.
_ ___ w
*6K BOND BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
MX SEVEN-DAY AVERAGES OF SECONDARY MARKET RATES Foft THE WEEK END ING WEDNESDAY TWO DAYS
EARLIER THAN DATES SHC'K. CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.9 RELEASE.
N.A. - NOT AVAILABLE
PREPARED BY FEDERAL RESERVE BAMt OF ST. LOUIS


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

0

SELECTED INTEREST RATES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
10.5 f—

PERCENT
—1 10.5

10 0

10.0

3-5 YEAR
TREASURY SECURITIES

FEDERAL FUNDS RATE

DISCOUNT RATE

THREE-MONTH TREASURY
BILL MARKET YIELD

-L-L1.1 1 I I
7

18
44 18

21

OCT

I 1 I I

I LL-li I I

1 I I I I I 1 I 1 I I I I I I I I I I I I 1 I I 1 1 I l l l 1 l l l 1 I I i I 1 i i i

2 16 30 13 27 10 24 10 24
2 16 30 13 27 10 24 10 24

NOV
DEC
1977

JAN

FEB

MAR

21
77 21

18
5 5 10

APR

MAY

16 30 14 28 11 25
22
22 16 30 14 28 11 25 8 822

JUN

JUL
1978

AUG

SEP

6 20
6 20

3 17
3 17

1

OCT

NOV

DEC

15 28
15 28

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: NOVEMBER 24, 1978

1978
OCT.

6
13
20
27

NOV.

3
10
17
24 *
DEC.
1
8
15
22
29

FEDERAL
FUNDS *83

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL *aeK

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECUR1T1ES

LONG-TERM
TREASURY
SECURITIES

8.85
8.71
8.78
9.24
9.29
9.77
9.68
9.68

8. 14
7.98
7.89
7.70
8.73
8.79
8. 14
8.56

8.38
8.42
8.56
8.61
8.98
9.42
9.29
9.00

8.23
8.28
8.46
8.53
9. 17
9.32
9.08
9.05

8. 48
8.47
8.56
8.69
9.05
9.04
8.93
8.83

8.55
8.53
8.59
8.64
8.72
8.73
8.65
8.64

* AVERAGES OF RATES AVAILABLE.
** SEVEN-DAY AVERAGES FOR WEEK IENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
CURRENT DATA APPEAR IN THE !BOARD OF GOVERNORS’ H.9 RELEASE.
3«8ll NEW ISSUE RATE
RATES ON LONG-TERM TREASURY SECURITIES ARE COMPUTED BY THE FEDERAL RESERVE BANK OF ST. LOUIS
TREASURY BILL YIELDS ON DISCOUNT BASIS.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8

NET TIME DEPOSITS

ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
515

BILLIONS

510

OCT.
505
Z

NOV.
500

485
480
475
470
465
460

5

10

2

16 30 14 28

11

25

JAN

8 22

8 22

5

19

3

17 31

14 28

JUN

FEB

12 26 » 9

23

8 20

4

18

1

15 20

15

27

JUL

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 15, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
X 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 8100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSlTS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
11/16/77

2/15/78

4/12/78

5/17/78

6/14/78

7/12/78

8/16/78

9/13/78

6. 1
7.0
7. 1
8.0
8.6
8.9
9. 1

7.2
7.3
8.6
9.3
9.6
9.8

8.8
10.0
10. 6
10.6
10.7

10.0
10.9
10.8
10.9

12.3
11.7
11.6

11.6
11.5

10.9

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/12/78
5/17/78
6/14/78
7/12/78
8/16/78
9/13/78
10/18/78
11/15/78


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

7. 1
6.7
7. 1
7.2
7.8
8.2
8.5
8.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
275

268.5
268.3
263.0
266.0
264.8

5

19

2

16 30 14 28

DEC

11

23

JAN

8 22

FEB

LATEST DATA PLOTTED WEEK ENOING: NOVEMBER 15, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
2/15/78 4/12/78 5/17/78 6/14/78 7/12/78 8/16/78 9/13/78

11/16/77
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/12/78
5/17/78
6/14/78
7/12/78
8/16/78
9/13/78
10/18/78
11/15/78

5.6
8.6
8.3
7.7
7.5
7.6
8. 1
6.5


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

11.2
10.0
8.7
8.3
8.3
8.8
6.7

15.0
11.2
9.9
9.7
10. 1
7.2

4.6
5.4
6. 1
7.5
4.5

5.0
6. 1
7.7
4.1

7.5
9.1
4.4

10.6
3.6

1.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

10

CURRENCY COMPONENT
OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
100

BILUQNS
96.0
_

NOV,
96. 4
96.5

8 22

DEC

JAN

5

18

3

17

31

FEB

14 28

12 26

8

23

6 20

JUN JUL
1978

1977
LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 15, 1978

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

CURRENCY
COMPOUNDED ANNUAL RATES OF CHANGE

AVERAGE OF FOUR WEEKS ENDING:

11/16/77

2/15/78

4/12/78

5/17/78

6/14/78

7/12/78

8/16/78

9/13/78

10.2
10. 1
10.3
10.0
9.6
10.0
10.2
10. 1

9.2
9.8
9.3
8.9
9.6
9.9
9.8

10.6
9.6
8. 8
9.9
10.2
10.0

9.6
8.5
10.0
10.3
10.0

7. 1
9.4
10.0
9.7

10.3
10.8
10.3

13.0
11.6

10.2

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/12/78
5/17/78
6/14/78
7/12/78
8/16/78
9/13/78
10/18/78
11/15/78


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS
1M
3.0

IN THE NATION

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

MILLIONS

—OCT. 1

1249

1314

5

18

2

16 30

14 28

DEC

11

25

JAN

8 22

8 22

5

18

3

17 31

FEB

14 28

JUN

12 26

8 23

JUL

SEP

OCT

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 22, 1978

BUSINESS LOANS
( COMMERCIAL AND INDUSTRIAL )

BILLIONS OF DOLLARS
144 ----- ,------ ,-

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

ILL IONS OF DOLLARS
—------ ----- 144

COMPOUNDED ANNUAL RATES
— OF CHANGE. AVERAGE OF _ THE FOUR WEEKS ENDING
NOVEMBER 15, 1978 FROM
“THE FOUR WEEKS ENDING: '
_ SEP.
AUG.
“ JUL.
— JUN.
_ MAY
FEB.
— NOV.

13,
16,
12,
14,
17,
15,
16,

1978
1978
1978
1978
1978
1978
1977

14.2
1 1 .9
9.9
9. 1
13.0
15.4
13.7

■
'

OCT. 11
138,227
139,878

5 18

30 14 28 1

25

8 22

8 22

5 10

5 17 31

14 28 12 26

8 23

J-LLLLLLL1 I 1 I I I
6 20

1

15 28

13 27

LATEST DATA PLOTTED WEEK ENDING. NOVEMBER 15, 1978


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

12
CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
NOT stASUNALLY ADJUSTED

BILLIONS OF DOLLARS

IOO --- -i----- 1-“

OCT.

I 25

.1 11 1
a 22 a 22

5 IB 3 17 31 M 2a 12 28 B 23

1977

8 20

4

IB

1978

LATEST DATA PLOTTED WEEK ENDINGi NOVEMBER 15, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.


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