View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

O ;
ta

f

Week ending: October 11, 1972
LIBRARY
JUN 0 5 1979


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

Both money (M^) and money plus net time
deposits (1^2) have increased at relatively rapid
rates so far this year. Mj_ has expanded at an 8
percent annual rate since the four weeks ending
January 5, a period of nine months. Growth of
was at an 11 percent rate in the first three
months of this period, a 5 percent rate in the
second three months, and a 7.8 percent rate in the
most recent three months. For comparison,
grew
at a 5.9 percent trend rate from late 1966 to late
1971 and at a 2.3 percent trend rate from 1952 to
1966. M2 has risen at a 10.5 percent rate in the
past nine months, compared with an 8.2 percent
trend rate from late 1966 to late 1971.
Business loans at all commercial banks
have expanded rapidly in recent months after a lull
during the late spring and early summer. Since
January business loans have increased at a 10.9
percent annual rate. For comparison, business
loans grew at a 5.8 percent rate in 1971 and at
only a 3.8 percent rate during the recession year
of 1970. An acceleration in the growth rate of
business loans, as in the past two years, usually
accompanies faster expansion of economic activity.
Short-term market interest rates have
risen in 1972. Yields on three-month Treasury
bills averaged 4.70 percent in the three days
ending October 11, compared with 3.18 percent
in February. Yields on four- to six-month commer­
cial paper averaged 5.25 percent in the first part
of this week, compared with a 3.93 percent last
February. The rate charged on bank loans to prime
business customers is currently at 5-3/4 percent.
The prime rate is now only 50 basis points above
the four- to six-month commercial paper rate, down
from an average differential of 70 basis points
last February.

Prepared by Federal Reserve Bank of St. Louis
Released: October 13, 1972

•I

MONETARY BASE u
MULTIPLIER^

AVERAGES OF DAILY FIGURES
BILLIONS OF DOLLARS

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
OCTOBER I 1, 1972 FROM THE FOUR W&EKS ENDlNGt
AUG.

9,

1972

4.8

MONETARY BASE

1972

MILLIONS

LATEST DATA PLOTTED WEEK EfOINGt OCTOBER 11, 1972
RATIO

RATIO
2.9

2.8
MULTIPLIER
2.7

2,6

2.5
RATIQ
AUG. 30
2.4

4 18

1

15 29 13 27 10 24

OCT
1971

NOV

8 22

5 10

2 10

JAN

FEB

I

15 29 12 20 10 24

7 21

5 19

JUN

JUL

2 16 30 13 27

SEP

I 25

OCT

1972

LATEST DATA PLOTTED WEEK ENDlNGt OCTOBER 4, 1972
1/ USES OF MONETARY BASE ARE MEMBER BANK RESERVES AND CURRENCY HELD BY THE PUBLIC AND NONMEMBER
BANKS, ADJUSTED FOR RESERVE REOUIREMENT 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 J / MONETARY BASE.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

RESERVES AVAILABLE TO SUPPORT
PRIVATE NONBANK DEPOSITS^
ALL MEMBER BANKS

FEDERAL RESERVE CREDIT*/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
32.0
COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF _
THE FOUR WEEKS ENDING
OCTOBER II, 1972 FROM
THE FOUR WEEKS ENDINGt
9, 1972 10.5 “
12, 1972
11.0
14, 1972 10.1
10, 1972
9.3
~
12, 1972
9,2
8, 1972
9.2
OCT, 13, 1971
8.7 _

31.5

31.0

30.0

BILLIONS OF DOLLARS
32.0

31 .5

31 .0

30.5

30.0

RESERVES

29.5
29.0

29.0
ILLIONS
31.40
30.46

28.5

30.96
31.18

28.0

.1 I I I I

0

_

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS EM) ING
— OCTOBER 1 I
1972 FROM

JUL.
JUN.

_

12

14

2.6

-

1972

FEDERAL RESERVE CREDIT

1972

MAR

1972.

MILLIONS
— 74

4 18

I

15 M IS 27 10 24

8 22

5 1C

2 10

JAN

FEB

I

15 2C 12 20 10 24

7 21

5 1C

JUN

JUL

2 10 SO IS 27 II 25

LATEST DATA PLOTTED WEEK ENDINGt OCTOBER 11, 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.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

4
DEMAND DEPOSIT COMPONENT OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
195

BILLIONS
186. 1
187.3
186.0
186. 1
185.6
186.2

190

185

180

175

I

15 28 15 27 10 24

OCT
1971

NOV

6 22

5 18

2 16

JAN

FEB

5 28 12 26 10 24

7 21

5 18

2 16 50 15 27 II 25

SEP

OCT

1972

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 4, 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
10/6/71

2/2/72

3/1/72

4/5/72

5/3/72

9. 1
7.7
7.0
9.4
8.9
7.6

4.9
4.7
8.4
8.0
6.5

4.9
9.6
8.9
6.9

6/7/72

7/5/72

12.4
10.3
7.4

13.0
8.4

8/2/72

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/
4/
5/
6/
7/
8/
9/
10/

1/72
5/72
3/72
7/72
5/72
2/72
8/72
4/72


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

3.7
5.4
5.3
5.3
5.2
6.6
6.6
6.0

13.5
10.6
9. 1
8.2
10. 1
9.6
8.3

3.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

OF DOLLARS

BILLI

BILLIONS OF DOLLARS
-- ----- ---------- ---------- 2*5

BILLIONS
AUG.

_

SO

OCT

241 .2
242.6
241.5
241.6
241.2
241.7

5.87. TREND Lift FROM

I I I I LLl
4 IS

I

15 29 IS 27 10 24

OCT

NOV

a 22

5 19

2 10

JAN

I

15 20 12 26 10 24

7 21

FEB

LATEST DATA PLOTTED WEEK ENDING. OCTOBER 4, 1072
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

END 1NG*
COMPOUNDED ANNUAL RATES OF CHANGE . AVERAGE OF FOUR WEEKS
8/2/72
7/5/72
8/7/72
5/3/72
4/5/72
3/1/72
2/2/72
10/8/71
TO THE AVERAGE
OF FOUR WEEKS
END 1NG*
3/
4/
5/
8/
7/
8/
9/
10/


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

1/72
5/72
3/72
7/72
5/72
2/72
8/72
4/72

4.2
5.9
5.6
5.7
5.6
6.7
6.6
6.2

13.3
10.3
9.2
8.3
9.7
9.1
8.1

9.1
8.1
7.3
9.1
8.5
7.5

5.3
5.0
7.9
7.4
6.4

5. 5
9.2
8.2
6.9

10.9
8.9
7.0

10.9
T• 8

3 • 7"

PREPARED BY FEDERAL RESERVE BA»* OF ST. LOUIS

TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS of dollars

TOTAL TIME DEPOSITS

NET TIME DEPOSITS*

5 20 13 27 10 24

4 IS

OCT

NOV

S 22

5 10

FEB

7 21

3 19

JUN

IS 29 12 H 10 24

2 IS

JAN

JUL

2 10 30 13 27 I

SEP

OCT

LATEST DATA PLOTTED WEEK EWlNGt OCTOBER 4, 1072
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
* 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 0100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING*
10/B/71

2/2/72

3/1/72

4/5/72

5/3/72

6/7/72

1 1.8
12.9
11.3
11.4
1 1.3

15.0
12.3
12. 1
1 1.9

10.8
11.1
11.1

7/5/72

8/2/72

TO THE AVERAGE
OF FOUR WEEKS
END 1NGt
3/
4/
5/
6/
7/
8/
9/
10/

1/72
5/72
3/72
7/72
5/72
2/72
6/72
4/72


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

18.4
16.8
15.6
15.5
15.5
14.6
14.3
14.0

13.9
12. 1
12.8
13.3
12.2
12.1
12.0

9.3
11.2
12.1
11.1
11.1
' 11.1

9.2
9.8

11.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
-------- ---------- ------- =J 550

MONEY STOCK PLUS TOTAL TIME DEPOSITS

MONEY STOCK PLUS NET TIME DEPOSITS

4 1*

I

15 29 13 27 10 24

OCT

NOV

* 22

5 19

2 1*

JAN

FEB

I

15 29 12 2* 10 24

7 21

5 <9

JUN

JUL

2 I* 30 13 27 II 25

SEP

OCT

LATEST DATA PLOTTED WEEK EWING: OCTOBER 4, 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
JWS Mz 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 ENDING:
10/6/71

2/2/72

3/1/72

13.5
1 1.2
11.1
10.9
11.0
10.6
10.1

9.2
9.7
9.8
10.1
9.9
9.4

4/5/72

5/3/72

6/7/72

7/5/72

10,3
10.7
10.2
9.4

10.7
10.0
9. 1

10.0
8.8

8/2/72

TO THE AVERAGE
OF FOUR WEEKS
END 1NG:
3/
4/
5/
6/
7/
8/
9/
10/


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

1/72
5/72
3/72
7/72
5/72
2/72
6/72
4/72

1 1.2
11.3
10.6
10.6
10.5
10.6
10.4
10. 1

8.7
9.1
9.6
9.5
9.0

7.7

PREPARED BY FEDERAL RESERVE BANK OF ST, LOUIS

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
42 --------- --------------------

I

15 29 13 27 10 24

OCT

I 22

5 10

2 10

JAN

NOV

I

BILLIONS OF DOLLARS
-------------------- ---------- 42

15 20 12 20 10 24

FEB

T II

JUN
1072

5 10

2 16 90 13 ZT II 25

JUL

SEP

OCT

LATEST DATA PLOTTED WEEK ENDING. OCTOBER 4, 1072
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.fl RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF 0100,000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.


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

MONEY AND TIME DEPOSIT DATA

1072
AUG.

2
9
16
23
30
SEP.
6
13
20
27
OCT.
4
11
18
25

CERTIFICATES
OF DEPOSIT

BILLIONS
NET TIME
DEPOSITS »

38.6
38.6
38.8
39.7
40.4
39.7
40.4
40.3
40.8
40.4

256.5
257.0
257.7
257.8
258.5
259.6
259.7
259.9
260.3
262.2

M2 m
496.2
497. 1
498.6
498.3
499.8
502.2
501.2
501.6
501.5
503.8

K SEE FOOTNOTE PAGE 0.
XX SEE FOOTNOTE PAGE 7.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MEMBER BANK DEPOSITS
SUBJECT TO RESERVE REQUIREMENTS
(CREDIT PROXY )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF dollars

billions of dollars

CREDIT PROXY ADJUSTED 1/

CREDIT PROXY

4 18

1

15 20 15 27 10 24

OCT
1971

8 22

5 10

2 18

JAN

NOV

FEB

I

15 20 12 28 10 24

7 21

5 10

JUN

JUL

2 18 50 15 27 It 25

1972

LATEST DATA PLOTTED WEEK EM)IN6« OCTOBER 4, 1972
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
1/ INCLUDES MEMBER BANK DEPOSITS, BANK-RELATED COMMERCIAL PAPER, EURODOLLAR BORROWINGS OF
U.S. BANKS, AND CERTAIN OTHER NONDEPOSIT SOURCES.

1312.

BILLIONS
CREDIT
PROXY

AUG. 30
SEP.
6
13
20
27
OCT.
4


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

CREDIT
PROXY
APJUSTEQ

386.0
386.9
387.8
389.1
388.3
391.0

390. 1
390.9
391 .9
393.2
392.4
395.0

COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF THE FOUR WEEKS ENDING
OCTOBER 4. 1972 FROM THE FOUR
WEEKS ENDING:

CREDIT
CREDIT
PROXY
PROXY ADJUSTED
AUG.
JUL.
JUN.
MAY
APR.
MAR.
OCT.

2,
5,
7,
3,
5,
1,
6,

1972
1972
1972
1972
1972
1972
1971

10. 1
11.1
9.0
10.4
10.7
12.1
11.5

9.9
11.2
9.2
10.6
10.7
12.2
11.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
8.0 ----

PERCENT

----- 8.0

CORPORATE AAA BONDS

PRIME COMMERCIAL
LOAN RATE
MUNICIPAL
BONDS**

DISCOUNT RATE

THREE-MONTH TREASURY
BILL MARKET YIELD

I I I I I I I I I II I I M I I I I I I I I I I I I I I I I 1 I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I ll I I
6 20

3 17 I

AUG

SEP

15 29 12 2ft 10 24

OCT
NOV
1971

DEC

7 21

JAN

4 18

3 17 31

FEB

MAR

14 28 12 28 9 23

APR

MAY

JUN
1972

7 21

4 18

I

JUL

AUG

SEP

15 29 15 27

OCT

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING* OCTOBER 13, 1972

1972
AUG.

4
11
18
25
SEP.
1
8
15
22
29
OCT.
6
13 X
20
27

CORPORATE
Aaa BONDS

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

MUNICIPAL
BONDS km

7.22
7.20
7.19
7.17
7.16
7.19
7.23
7.23
7.24
7.23
7.23

3.79
3.85
3.89
4. 1 1
4.46
4.69
4.71
4.65
4.60
4.63
4.70

5.85
5.85
5.87
5.94
6. 1 1
6.19
6.20
6. 15
6.13
6.11
6.07

5.51
5.48
5.53
5.56
5.62
5.66
5.68
5.70
5.75
5.73
5.71

5.32
5.24
5.22
5.32
5.38
5.39
5.38
5.37
5.30
5.22
N.A.

* AVERAGES OF RATES AVAILABLE.
*38 BOND BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
N.A. - NOT AVAILABLE


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED SHORT-TERM

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT

8.0 ---

l.LLL

----- 8.0
—

7,5

7.5
-

6.5

7.0

TTTT

7.0

-

6.5
-

-

6.0

6.0
-

5,5

5.5
-

COMMERCl AL 1 ’APER
4-T0-6 MONTIi

5.0

5.0

-

4.0

4.5

TTTT

4.5

-

J

V

4.0

-

3.5

3.5
-

-

FEDERA L FUN! >S RA1 ’E

3.0

3.0
-

-

2.5

2.5
'a

5

i 1 1

111

i.i 11

6 20

3 17

I

AUG

SEP

OCT
1071

111 JJ 1 1.

IS » 12 28 10 N

NOV

DEC

ill

_LLL J 1. 1 I. JLLL JLLL .LI 1 J. 1 I.L. _LLL . 1.11.1. 1 1 1

7 21

4 10

3 17 31

JAN

FEB

MAR

14 28 12 28 0 23

APR

MAY

JUN
1972

7 21

4 10

1

JUL

AUG

SEP

15 20 13 27

OCT

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGs OCTOBER 13, 1972


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

1972
AUG.

4
1 1
18
25
SEP.
1
8
15
22
29
OCT.
6
13 X
20
27

PRIME
COMMERCIAL
PAPER
4-6 MONTH

FEDERAL
FUNDS

PRIME
BANKERS'
ACCEPTANCES

90 DAY
CD’S 4BK

4.73
4.70
4.85
4.88
4.95
5.09
5.13
5.13
5.18
5.28
5.25

4.63
4.78
4.91
4.69
5.13
4.44
4.75
5.09
4.86
5.36
5.07

4.63
4.63
4.63
4.75
4.75
4.75
4.88
4.88
4.88
4.95
5.00

4.72
4.70
4.76
4.84
4.92
4.98
5.02
5.1 1
5.17
5.20
5.23

* AVERAGES OF RATES AVAILABLE. FEDERAL FUNDS LAST FIVE DAYS AVAILABLE
USE 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

BORROWINGS AND EXCESS RESERVES
ALL MEMBER BANKS

IN THE NATION

AVERAGES OF DAILY FIGURES

billions of dollars

billions of dollars

BORROWINGS

-0.4

-0.4
NET FREE RESERVES

0.8

-

0.8

-

1.2

1.2

-

-

EXCESS RESERVES

4 10

20 15 27 10 24

OCT

• 22

2 10

JAN

NOV

5 10

I

7 21

FEB

5 10

JUN

15 20 12 20 10 24

2 10 50 15 27 II 25

JUL

1972
LATEST DATA PLOTTED WEEK ENDING. OCTOBER 11, 1972


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

MILLIONS
1972
AUG.

2
9
16
23
30
SEP.
6
13
20
27
OCT.
4
11
18
25

EXCESS
RESERVES
242
130
254
40
227
796
- 115
246
7
268
373

BORROWINGS
363
287
382
348
477
837
149
719
551
438
535

FREE
RESERVES
-

121
157
128
308
250
41
264
473
544
170
162

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

-0.4


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102