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Week ending: November 29, 1978
LIBRARY
DEC

2

S 1979

The monetary base, composed of the sum of total reserves
of member banks, vault cash of nonmember banks, and the currency
holdings of the public, is the major constraint on the amount of
money and bank credit. In addition to open market operations,
three factors have had a sizable influence on the growth of the
base in the last four weeks. Changes in two of these factors
reflect the effects of Federal Reserve actions, while the third
reflects actions by the Treasury.
At the beginning of
November, the Federal Reserve
established a supplementary 2 percent reserve requirement against
member bank time deposits in excess of $100,000 and certain other
member bank liabilities.
The initial impact on member bank
reserves resulted in an increase in member bank required reserves
of about $3.1 billion last week (reserve settlement week ending
November 22, 1978). Because such an increase in required reserves
reduces the amount of money and bank credit a given amount of
monetary base can support, the reserve adjustment magnitude (RAM)
used to compute the monetary base was reduced by $3.1 billion due
to this effect.
On November 1, the Federal Reserve discount rate was
increased from 8.50 to 9.50 percent, substantially reducing the
spread between the discount rate and the costs of alternative
sources of reserves to individual member banks. In the last four
weeks member bank borrowing averaged $0.6 billion below the
previous four weeks, hence, reducing the average level of the
monetary base by an equivalent amount.
Recent actions by the Treasury have increased the average
level of the base. The Treasury's new Tax and Loan Investment
Program, which enables the Treasury to invest its funds in
interest-bearing notes of commercial banks, was initiated at the
beginning of November.
During the last four weeks, Treasury
deposits with Federal Reserve Banks have averaged $7 billion less
than during the previous four week period. This decline serves to
supply reserves to commercial banks and, therefore, increases the
monetary base by an equivalent amount.
The influence of other factors on the monetary base can
be offset by open market operations.
Although Federal Reserve
holdings of U.S.
Government securities increased by more than $2
offsetting
the impact of the
billion last week, partially
supplementary reserve requirement on the monetary base, U.S.
government securities held by the Federal Reserve have averaged
about $4.3 billion less during the last four weeks than during the
previous four weeks.


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

Prepared by Federal Reserve Bank of St. Louis

Released: December I, 1978

2

MONETARY BASE
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

1978
OCT.
NOV.

25
l
8
15
22
29

BILLIONS OF DOLLARS
1 44

BILLIONS
141.0
141.1
141.3
140.8
141.6
142.4

142
.

140

130

128

JAN

FEB

JUN JUL
1978

1977
LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 29, 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!
11/30/77

3/1/78

4/26/78

5/31/78

6/28/78

7/26/78

8/30/78

9/27/78

8.6
9.0
9. 4
9.9
9.0
9.4
9.8
9.5

7. 1
8.3
9.2
8.0
8.8
9.4
9.0

11.3
11.9
9.4
10.2
10.8
10. 1

12.7
8.9
10.1
10.8
10.0

7.4
9.4
10.5
S.6

7.8
9.8
8.9

13.7
11.2

9.9

TO THE AVERAGE
OF FOUR WEEKS
ENDINGt
4/26/78
5/31/78
6/28/78
7/26/78
8/30/78
9/27/78
11/ 1/78
11/29/78


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIER 1/
ADJUSTED FEDERAL RESERVE CRED I T 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

tATIO
2.9

RATIO
2.9

MULT PLIER
\

*

1978
OCT •
NOV

111

i i i i

111

111

111

1111

111

1111

111 XI 1

1 1 1 1

RATIC

is
,§

■

m
||

XliJLliiLll

1 1 IXXL

LATEST DATA PLOTTED WEEK ENDING* NOVEMBER 22, 1978
.IONS OF DOLLARS

BILLIONS OF OOLLARS
1 26

COMPOUNDED ANNUAL RATES
-- OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
“ NOVEMBER 29, 1978 FROM
__ THE FOUR WEEKS ENDING:
SEP. 27, 1978
AUG. 30, 1978
—JUL. 26, 1978
_ JUN. 28, 1978
MAY
31, 1978
-- MAR.
1, 1978
_ NOV. 30, 1977

12-4
122

ADJUSTED FEDERAL RESERVE CREDIT

-

...
10.2
11.2
9.8
11.1

120
1 18

1215.

112

BILLIONS

OCT. 25

no
108

5

19

2

16 30

14 28 11

25

8 22

5

19

9

17 31

14

28

12

28

9

23

16 1 201 I 1 1 I I I I I I I I I I
4

18

1

15 29

13 27

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 29, 1978
1/ RATIO OF MONEY STOCK ( Ml ) / MONETARY BASE.
2/ FEDERAL RESERVE CREDIT CONSISTS OF FEDERAL RESERVE HOLDINGS OF SECURITIES, LOANS, FLOAT
AND OTHER ASSETS. ADJUSTED FEDERAL RESERVE CREDIT IS COMPUTED BY SUBTRACtlNG TREASURY
DEPOSITS AT FEDERAL RESERVE BANKS FROM THIS SERIES. AND ADJUSTING THE SERIES FOR RE­
SERVE REQUIREMENT RATIO CHANGES AND SHIFTS IN THE SAME TYPE OF DEPOSITS BETWEEN BAf*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

4

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

BILLIONS OF DOLLARS
880 rr----,------ 1---

1976
CT.
OV.

5

10

2

18
25
l
8
15
22

16 30

BILLIONS OF DOLLARS
-------------- =3 880

BILLIONS
869.3
865. 1
868.2
870.9
871.1
870.2

14 28

11

23

JAN

8 22

6

22

5

10

5

17 51

FEB

14 28

JUN

12

26

0 23

4

6 20

18

t

15 20

13 27

JUL

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 22, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING.
1Z23/77
2/22/78 4/19/78 5/24/78 8/21/78 7/19/78 8/23/78 9/20/78
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

7. 1
7.6
7.8
7.6
8.0
8.4
8.5
8.2


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

7.9
8.3
7.9
8.4
8.9
8.9
8.4

9.6
8.5
9. 1
9.7
9.5
8.9

7.7
8.9
9.6
9.4
8.7

8.7
9.7
9.5
8.6

1 1.3
10.5
9. 1

10.3
8.5

7.0

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK (Ml )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
370 ----- .------ .--

BILLIONS OF DOLLARS
--------------- 370

BILLIONS
OCT.
358.8
361.2
359.5

5

19

2

16 90 14 29 11

25

JAN

8 22

8 22

5

19

9

17 91

14 28 12

26

8 29

6 20

4

18

1

15 28

19 27

FE8
1978

LATEST DATA PLOTTED WEEK ENDING. NOVEMBER 22, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
THE MONEY STOCK CONSISTS OF DEMAND DEPOSITS PLUS CURRENCY AND COIN HELD BY THE NONBANK PUBLIC.

MONEY STOCK (Ml )
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING.
1/23/77

2/22/78

4/19/78

5/24/78

6/21/78

7/19/78

8/23/78

9/20/78

7.4
8.9
8.9
8.2
8.3
8.6
8.4
7.5

10.6
10.2
8.8
8.8
9. 1
8.8
7.5

12.6
9.6
9.4
9.7
9.2
7.5

5.9
7.0
8.0
7.7
6.0

6.2
7.7
7.5
5.5

9.9
8.8
6. 1

8.7
5.0

2.4

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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

12.0
11.5
11 .0

10.5
10.0

10.0

9.5
9.0
CORPORATE AAA BONDS
8.5
‘RIME BANK
■PAN RATE

8.0
7.5

90 DAY CD'Swa
7.0
COMMERCIAL PAPER

6.5

6.0

MUNICIPAL
BONDS**

5.5
5.0

4

OCT

18

2

1 6 30

NOV
1977

15 27

JAN

10 24

10 24

7

21

5

10

2

16 30

14 28

11

25

8 22

6 20

5

17

FEB

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: DECEMBER 1, 1978

1978
6
13
20
27
NOV.
3
10
17
24
DEC.
1 X
8
15
22
29
OCT.

90 DAY
CO'S X8K*

PRIME
COMMERCIAL
PAPER
4-6 MONTH

PRIME
BAWCERS'
ACCEPTANCES

CORPORATE
Aaa BONDS

8.95
9. 15
9.26
9.64
10. 10
10.77
10.84
10.59
10.66

8.75
8.97
9.07
9.19
9.68
10.27
10.38
10.22
10.25

8.89
9.06
9.33
9.59
10.46
10.63
10.47
10.36
10.58

8.81
8.85
8.88
8.94
9.04
9.06
9.02
9.00
9.02

MUNICIPAL
BONDS *****
6.07
6. 10
6.14
6.21
6.22
6. 17
6. 1 1
6.16
N.A.

* AVERAGES OF RATES AVAILABLE.
BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
*** SEVEN-DAY AVERAGES OF SECONDARY MARKET RATES FOR THE WEEK ENDING WEDNESDAY TWO DAYS
EARLIER THAN DATES SHOWN. CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
N.A. - NOT AVAILABLE
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS


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

0

SELECTED INTEREST RATES
AVERAGES OF DAILY RATES ENDED FRIDAY

.

3-5 YEAR
TREASURY SECURITIES

FEDERAL FUM5S RATE

__

DISCOUNT RATE

THREE-MONTH TREASURY
BILL MARKET YIELD

till
OCT

NOV

JAN

FEB

APR

5 19
MAY

2

16 30

M 28 11
JUL
AUG

25

8 22

6

20

3

1?

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGi DECEMBER 1, 1878

197S

FEDERAL
FUNDS m

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILLWKK

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

8.85
8.71
8.78
9.24
9.29
9.77
9.68
9.68
9.85

8.14
7.98
7.89
7.70
8.73
8.79
8. 14
8.63
9.02

8.38
3.42
8.56
8.61
8.98
9.42
9.29
9.00
9.33

8.23
8.28
8.46
8.53
9.17
9.32
9.08
9.12
9.32

8.48
8.47
8.56
8.59
9.05
9.04
8.93
8.87
9.02

8.55
8.53
8.59
8.64
8.72
8.73
8.65
8.66
8.72

OCT.

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

* AVERAGES OF RATES AVAILABLE.
«« SEVEN-DAY AVERAGES FOR '*£D< ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
CURRENT DATA APPEAR IN T»« BOARD OF GOVERNORS’ H.8 RELEASE.

mm

new issue rate

RATES ON LONG-TERM TREASURY SECURITIES ARE COMPUTED BY THE FEDERAL RESERVE BANK OF ST. LOUIS.
TREAS1WY 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
520 r---- ,------ ,--

ILL IONS OF DOLLARS
—I------ ---- -i 520

BILLIONS
505.0
506.3
508.5
509.7
510.7

I I I I
5

10

OCT

2

16

NOV
1977

SO

14 28

II

DEC

JAN

25

S 22

FEB

8 22

MAR

5

18

APR

3

17 31

MAY

14 28 12

26

JUN JUL
1978

8 23

AUG

6

SEP

OCT

NOV

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 22, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
*£T 3
'JSLflSL M-FjWED AS; SAVINGS DEPOSITS, TIME DEPOSITS OPEN ACCOUNT PLUS TIME
CffTIFICATES OF DEIPOSIT OTHER THAN NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF 8100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOS1TS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
1/23/77
2/22/78 4/19/78 5/24/78 6/21/78 7/19/78 8/23/78 9/20/78
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

6.9
6.7
7. 1
7.2
7.8
8.3
8.5
8.6


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

6.0
6.8
7.2
8. 1
8.7
8.9
9.1

7.4
7.8
9.0
9.6
9.8
9.8

9. 1
10.2
10.7
10.7
10.6

10.5
11.1
11.0
10.8

12.2
11.7
11.4

11.5
11.1

10.5

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

B.LLUQ.NS
263.0
266.0
262.6

5

10

2

16 30

14 28

11

25

8 22

S 22

5

10

3

17 31

M 26

12

26

0 23

6 20

1

15 20

13 27

JUN JUL
1978

1977
LATEST DATA PLOTTED WEEK ENDINGt NOVEMBER 22, 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 ENDINGt
11/23/77

2/22/78

4/19/78

5/24/78

B/21/75

7/19/78

8/23/78

9/20/78

11.2
10.6
8.9
8.8
9.0
3.5
6.7

13. 1
9.6
9.3
9.4
8.7
6.5

5. 1
6.5
7.3
6.9
4.5

5.7
6.9
6.6
3.9

9.2
7.9
4.3

7.5
2.6

-0.4

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

6.6
8.6
8.5
7.7
7.9
8.0
7.8
6.5


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

CURRENCY COMPONENT
OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
100

BILLIONS OF DOLLARS

-- 1--- 1-

---- ---

BILLIONS
96.0
96.5
96.4
96.5
96.9

I I I 1 I I I I
5

18

OCT

216 M H

NOV
1977

28

DEC

11

25

JAN

8 22

FEB

8 22

MAR

5

IB

APR

3

17

31

14 28

12

28

0 23

8 20

MAY

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 22, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.

CURRENCY
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING.
11/23/77

2/22/78

9.9
10.5
10.3
9.9
9.7
10.2
10.2
10.3

7.4
9.7
9.5
9.0
8.9
9.6
9.7
9.9

4/19/78

5/24/78

6/21/78

7/19/78

8/23/78

9/20/78

8.0
8.0
9.6
9.8
10.0

7. 7
9.8
10.0
10.2

11.0
10.8
10.9

12.3
12.0

10.8

TO THE AVERAGE
OF FOUR WEEKS
ENDING.
4/10/78
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

11.3
10.0
9.5
10.4
10.4
10.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

100

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS
billions

1978

IN THE NATION

AVERAGES OF DAILY FIGURES

OF dollars

billions of dollars

MILLIONS

— OCT. 25

1314

■1-LJLL
5

19

2

16 30 14 28

11

25

JAN

8 22

8

22

5

19

3

17

31

14 28

12 26

B 23

6 20

4

18

FEB

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 29, 1978

BUSINESS LOANS
(COMMERCIAL AND INDUSTRIAL)

ions of oollars

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

billions of dollars

~ COMPOUNDED ANNUAL RATES
— OF CHANGE, AVERAGE OF •
_ THE FOUR WEEKS ENDING
NOVEMBER 22, 1978 FROM
— THE FOUR WEEKS ENDING: *
~ SEP. 20, 1
AUG. 23, 1
10.3
“ JUL. 19, 1
— JUN. 21, 1
_ MAY 24, 1
FEB. 22, 1
— NOV. 23, 1

M J LLIONS
OCT. 1
NOV.

1

138,227
138,965
139,878
139,898

I I I I I I I I I I I I I I I I8

22

5

19

3

17 31

14

28

12

26

9 23

6

20

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 22, 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
no

ILL IONS OF DO.LARS

I

WEDNESDAY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS

S 10

2 It 30 M 21 II

DEC

JAN

2S

8 22

8 22

5 10

3 17 31

H 28 12 26

0 23

6 20

4 18

FEB

LATEST DATA PLOTTED WEEK ENDING. NOVEMBER 22, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
^EKLY^ORtTnG0!?^^^^^0811 ISSUED IN DEN0M,NATI0NS OF 0100,000 OR MORE BY LARGE


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS