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RESEARCH LIBRARY
Federal Reserve Bank.
i
of Si. Louis

------- ------------2 7 1998

1

•

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finnnrifli

nnto

Week ending October 2, 1968

During recent months and over the past year most
monetary aggregates have increased more rapidly than their
trend rates. A few aggregates have increased more slowly
in recent weeks and months than over the last nine or 12
months. The money stock (page 3) averaged $188.6 billion
in the week ending September 25. This represents a 5 per
cent annual rate of growth during the last three months
and a 6 per cent rate of growth from nine months ago, in
contrast to a trend growth rate of 2.6 per cent from 1957
to 1967. The most recent three month growth rate of money
has moved progressively lower for several weeks, and, on
balance, money has changed little since mid-July. This
recent moderation in the growth of money has prevailed for
a relatively short period and may reflect only irregular
forces or inadequacies of the data. The slower growth
reflects, in part, the use of bank reserves to support
rapidly increased time deposits which have constrained
the growth of reserves available for private demand de­
posits. In the last three months time deposits (page 7)
have grown at a 17 per cent rate, much more rapid than the
9 per cent rate for the last nine months and the 12.1 per
cent trend rate of growth from 1957 to 1967.
Large negotiable certificates of deposit (page 5)
at large commercial banks averaged $22.1 billion in Sep­
tember, up $2.8 billion from a low point in June and up
$1.4 billion since January. Funds also flow to users
through commercial paper (page 5), which averaged $19.5
billion outstanding volume in August, or $0.8 billion
more than the June average.
The changes in the relative growth rates of CDs
and commercial paper during the past six months have been
accompanied by changes in the relative yields on new CDs
and substitute assets such as commercial paper (pages 4
and 5). Movements in interest rates on CDs and commercial


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

•

paper have generally shown similar patterns with only a
narrow spread between these rates. During September
the interest rate on new 6 month CDs of $100,000 or more
averaged 5.75 per cent while the rate on commercial
paper averaged 5.81 per cent. Exceptions to this gen­
eral rule have occurred when the new issue rates banks
may offer on CDs are constrained by Regulation Q ceil­
ings. One such exception occurred in the second quar­
ter of this year when rates on substitute assets rose,
by a relatively wide margin, above the maximum rates
permitted on new CDs, weakening the competitive ability
of banks to attract funds. During that quarter the
volume of CDs declined while the growth of commercial
paper surged at a 39 per cent rate. During June and
July market interest rates on short-term instruments
declined sufficiently that the rates banks could offer
on CDs were once again competitive, and consequently
the volume of CDs increased rapidly to a level more in
line with its long-term growth trend.
A similar case occurred in the fall of 1966
when a wide differential between Regulation Q ceiling
rates and interest rates on substitute assets was
accompanied by an acceleration in the growth of com­
mercial paper and a decline in the outstanding volume
of CDs. When market interest rates subsequently de­
clined in early 1967, the volume of CDs rose rapidly
to a level more in line with its trend.

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: October 4,1968

in

MONETARY BASE []_
FEDERAL RESERVE CREDIT 12
Averages of Daily Figures

"is of Dollars

78

Billions of

Seasonally adjusted by this bank.
Annual rates of change, average of four weeks
I" ending October 2, 1968 from four weeks
T"~ ending:

77
Monetary Base

76

75

1957-1987
Monetary Base

74

Monetary
Base

73

Credit

73. J

73- 6
?i-3

0

7J./
u-r
?f.c

72

71. A­

VA

71

ns
7*7
71■ 7
71.3

Federal Reserve Credit
70

71.x
i-a
11 £
71.X. P

:
55

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 Review of this bank.

54

2/

As defined in the statistical tables of the
Federal Reserve Bulletin, adjusted for reserve
requirement changes and shifts in deposits.

Latest data preliminary
Latest data plotted week ending: October 2, i960
53
6 20
Sept.

4

18
Oct.

1967

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

15 29
Nov.

13 27 10 24
Dec. Jan.

1

15
May

29 12 26 10 24 7 21
June
July Aug.
^^8

4 18
Sept.

30

13 27
Nov.

11 25
Dec.

8 22
Jan.

5

19
Feb.

1969

5 19
Mar.

2
A

*

MONI
STOCK*
Averages of Daily Figures
Seasonally Adjusted

.ions

3
Billions of Dolli
205

205

204

204
Annual rates of change, average of
203

203

202

from four weeks ending:
JVme 26, 1968
V- 7

202

201

201

200

200

199

199

196

198

197

197

196

196

195

195

194

194

193

193

192

192

191

191

190

190

189

189

188

188

187

187

186

186

185

185
184

184

13-week centered
moving average

183

183
Weekly

102

182

181

181

180

180

179

179

178

178
177

177
176
175

---- Latest data preliminary
Latest data plotted week ending: Sept. 25, 1968

* 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 by months see this bank's
monthly release entitled "Monetary Trends".

4

18
Oct.


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

1

15 29 13 27
Hoy.
Bee.

10

24
Jan,

7

21
Feb.

175

l ! 1 1 11.

T~l I 1 I ! I I ! I I I I I. I i 1. ! l-j-1 .Li-jJ-J-LL
6 20
Sept,

176

0

6
Ms

Sept.

ir.
Prepared by Federal Reserve Bank of St. Louis

NEW ISSUE RATE ON CERTIFICATES OF DEPOSIT LL
DEALERS’ OFFERING RATE ON COMMERCIAL PAPER [2.

Per Cent

Commercial Paper

Certificates of Deposit

_ 1/ Average new issue rate on 6 month certificates of deposit of $100,000 or more.
_
Estimated by the Federal Reserve Bank of St. Louis from guide rates published
—
in the Bond Buyer.
— 2/ Prime commercial paper, 4- to 6- months maturity.
—
offering rates.
—

Latest data plotted: Sept. 1968


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

Averages of dealers' daily

-

1964
Prepared by Federal Reserve Bank of St. Louis

4
Per Cent

Billions of Dollars

CERTIFICATES OF DEPOSIT H AND COMMERCIAL PAPER 12
Outstanding Volume

Billions of Dollars
25.0
2L.0
23.0

22.0

22.0

21.0

21.0

20.0

20.0
19.0

Certificates of Deposit

18.0

17.0
16.0

15.0

ll*.0
13.0
12.0

Commercial Paper

11.0
10.0


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

10.0
9-0

8.0
7.0
Latest data plotted:

I I II II I I II I

Certificates of deposit Sept. 1968
Commercial paper Aug. 1968

\/ Negotiable time certificates of deposit in denominations of $100,000 or more
at large consnercial banks. Monthly averages of Wednesday figures. Data prior
to July 1965 estimated by the Federal Reserve Bank of St. Louis.
2! Total volume of commercial paper outstanding. Averages of current and preceding —
end-of-month seasonally adjusted figures.
—

6.0
5.0

h.O
3-0

0
Prepared by Federal Reserve Bank of St. Louis

BUSINESS LOANS
Large Commercial Banks
Wednesday Figures

Billions of Dollars

Billions of Dollars

Seasonally adjusted by this bank.
Annual rates of change, average of
four weeks ending Sept. 25, 1968
from four weeks ending:

MILLIONS OF DOLLARS

- Current and year ago unadjusted data appear in
-the Board's H.4.2 release. Seasonal adjustment
- computed by this bank using 1962 through 1967 data

Latest data preliminary
Latest data plotted: Sept. 25, I968
20

4

18


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

1

15

29 13

27

10 24

7

21

6 20

3 17 • 1

15 29

12 26
June

10 24

7

21

4

18

2

16

30 13

27

11 25

8

22

5

19

Prepared by Federal Reserve Bank of St

5

19

2

TIME DEPOSITS*
All Commercial Banks
Averages ofDaily Figures
Seasonally Ad usted

Dollars
218
216

Billions of

Annual rates of change, average of
four weeks ending Sept. 25, 1968 from
four weeks ending:
! June 26, 1968
-h!7-f
-Mar. 27, 1968
-h/O.*/
-Dec. 27, 1967
' ~

214

212
210

1968

+■

206

208

1957-1967

206

206

204

204

202

202

200

200

198

196

196

196

194

194

192

192

190

190

188

188

186

186

184

184

182

182

180

180

178

178

176

176

174

174

172

172

170

170

168

168

166

166

164

164

162

l6o

Latest data preliminary
Latest data plotted week ending: Sept. 25, 1968

6

20

I8II5


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

29 li

27

10 24

7

21

6 20

162

* 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 see this bank's
. monthly release entitled "Monetary Trends".
.
3

17

1

15

29 12 26
June

10 24

7

21

4 18
Sept.

2

16

30 13

27 11

25

8

22

5

19

5

160
158
19

2
r.

Frepared by Federal Reserve Bank of St. Louis

YIELDS ON SELECTED SECURITIES
Averages of Daily Rates Ended Friday

Per Cent
9-00

8.50

T
“iW 1
~
?

~n

ii 11 11111 111 i

3-MONTH
TREAS. 3-5
BILL
YEAR
S.og
5.ZS
i.%
S.l7

LONG
TERM

9.00

CORPORATE
A aa

8.50

t-/Y

(■Of

6-cc

/& s //
a

s.sr
s.j c,

S 98

3c SJi

5.33

S. 97

_Uf+ /, 5.1)
_ /3 f.iS

s. ?s

zc S./<g

S.30
6.3L

S-Z7

S.7f

z'15, /j
^r+s.u

s.Ae

(f eH
L.00

~
8.00

7-50

Per Cent

1

_
_

8.00

95~

“

7-50

7.00

7.00
Corporate
Aaa Bonds
l
/

**v

6.00

■ »'

►22. V

“ *

...

6.50
JZ

•i
**.

Three

•*
iieia
A ✓

6.00

6 0

w**

1m

s
, Discount Rate

5.50
-3*

5.50

* \\

•

k<

»1. *»

-f-

♦
-*w
»**

v

5.00

i*

3- 5 H.
* •*
/*
5.00

B or ds
4.50

_
4.00

-

4.00

3.50

3.50

-J__I_I__I__I__l—J__I__I__l—l__Lilli

8 22
Sept.

6

20
Oct.

3 17
Nov.

1967

1


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

15 29 12 26
Dec.
Jan.

rates available for the week ending: October 4. 1068
1 -L I 1__1 1.
I- L i .1-1 ■ 1. 1 1
■I . 1. _| 1 i 1_1_i_1 i i 1 l i
9 23 8 22 5 19 3
17 31 14 28 12 26 9 23 6
20
Feb.
Mar.
Apr.
May
June July
Aug.
Sept.

1968

'

3.00

k

18
Oct.

1

15 29 13 27 10 24 7 21
Nov.
Dec.
Jan.
Feb.

7 21
-Mar.
..Mar

1965

Prepared by Federal Reserve Bank of St. Louis

'0

9
SELECTED SHORT-TCTl*\ INTEREST RATES
Averages of Daily Rates Ended Friday

Per Cent

Per Cent

PRIME
COMMERCIAL
PRIME
LARGE
PAPER
BANKERS'
90 DAY
FEDERAL
4-6-MONTH ACCEPTANCES CD'S ** FUNDS

5 )0

S,SS
SJS
5. ft

S.SO

S.il
S'>5
5.L3

s.tg
f,ss

i,,eo

5. dC
3-XC
5JC

f.u
f.ti

5. sc
f.sc

{-.Si

S-.t3

s.%0

5.7_T

5. 4J

0/3
6->3
f-K

s.<n

5.10

5-(>c
oa f * tf.Tf

5-It

S'. *3

Commercial Paper
4-to-6 Month
Federal Funds Rate

Bankers
Acceptances
Discount Rate- —-

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

8

22

6

20

3

17

1

15

29

12 26

9


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

23

8

22

5

19

3

17

31

October 4, 1968

14 28

June

12 26 9 23
July
Aug

6

20

4

18

1

15

29

13 27

10 24

7

21

7

21

Prepared hy Federal Reserve Bank of St. Louis

BORROWINGS AND EXCESS RESERVES
All Member Banks in the Nation

IP

Kill ions of Dollars

2,000

1
\

1,900

Mil lions of Dollars

□

_L

EXCESS
RESERVES

1,800

BORROWINGS

11331

1,600

1VJ4Y
ZY 335.

1,900

FREE
RESERVES

1,800

~ n
-131

nr/

i*/

1,700

-317

1,600

-UZ

'77

/ 11

1,500

■137

'

733
77 17V
iv 410
?/339
7 341.
vV 3/V

1,300
1,200
1,100

139

1,300

-3.VV

1,200

3+3
- 2 Li.
///
-ZC7
- 7*3

•T7K
* 73

U\?
i3t

iUr Jill
<04 4.3+1 ?

700

- 19i
-119

ioi
737

19 /tV
~3.1T.
u_ ~r~17 rtw

800

1,400

/ z/

v/i
V 70

JJ

3t
303
111

T/4
sfyc

K

**

**

s

J

■V

900

P

0* >

Borrowings

s

,

r
-o
fV
%1 /
■ t
Vr

200

100

/

/

K

*~L
>

\_

1

A■
\ «*
■

1 if «

700
600

k

V

A

s3

Hx cess

*«*

mi mi

WEEKLY RESERVE PERIODS -

800

500

NS

.

. 1,000

r

1*00

1,100

BIWEEKLY SETTLEMENT PERIODS

600

300

1,500

WEEKLY DATA

1,1*00

900

2,000

BIWEEKLY DATA

1,700

1,000

“

f
L

ie Be rv es

y
-4
V

1

/
J_ f
L1
1

S* a
;; :
_
a

500
400

ma
7

300
200
100

i

^0

0
100

A_

-

200

i

-

300

-

400

-

500

-

600

-

700

-

800

-

900

-

1,000

-

1,100

-

-

\

-

f !/ Q !/
f

1

100
200

-

300

-

400

-

500

-

600

N et F re.e R es erve s
x
.
iJ Because of the change in Regulation D
F lacing all member banks on a one-week
eserve adjustment period, beginning w

13 27
Sept.

t fit j_
11 25
Oct.


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

8

22
Nov.
1967

f

_LJ_I-.
20 3 17 31
Dec. Jan.

1

_j

1

I

22
Feb.

Mar.

Apr.

May

5

19
June

15

3

17
July

31 14
Aug.

JJ
Sept.

Oct.

Nov.

Dec.

800

Jan.

i

-

Feb.

Mar.

1969
Prepared by Federal Reserve Bank of St. Louis

1,000

-

J

900

-

j

|
_L

700

-

. me wees enaing September 18, lybe the
above reserve data are reported on a
one-week period.

Latest data preliminary^
Latest data platted: one week ending Oct. 2, 1968

JL

-

1,100

Apr.

Total
Federal Reserve
Credit
Seasonally
Adjusted

Week
Ending
Jan.

4,
11
18
25
Feb.
1,
8
15
22
Mar.
1,
8
15
22
29
Apr.
5,
12
19
26
May
3,
10
17
24
31
June
7,
14
21
28
July
5,
12
19
26
Aug.
2,
9
16
23
30
Sept. 6,
13

1967

1967

1967

1967

1967

1967

1967

1967

1967


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

50.5
50.9
50.8
51.4
51.1
51.0
51.4
51.6
51.2
51.7
51.7
52.3
52.4
52.2
52.3
52.6
52.9
52.8
52.9
52.8
52.9
52.5
52.7
52.4
52.5
52.7
52.7
53.0
53.2
53.5
53.3
53.2
53.4
53.5
53.3
53.4
53.2

Total
Federal Reserve
Credit
Seasonally
Adjusted

Week
Ending
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

4,
11
18
25
1,
8
15
22
29
6,
13
20
27
3,
10
17
24
31
7,
14
21
28
6,
13
20
27
3,
10
17 •
24
1,
8
15
22
29
5,
12

1967

1967

1967

1968

1968

1968

1968

1968

1968

53.7
54.2
54.4
54.4
54.1
54.4
54.5
54.9
54.8
55.2
55.1
55.0
55.2
55.3
55.5
55.7
55.8
55.5
55.5
55.6
55.4
56.0
56.4
56.9
57.0
57.1
57.1
57.6
57.7
57.7
57.2
57.6
57.7
58.1
57.9
57.6
58.1

Week
indmg
July

Aug.

Sept

Oct.

Total
Federal Reserve
Credit
Seasonally
Adjusted

3, 1968
10
17
24
31
7, 1968
14
21
28
4, 1968
11
18
25
2

58.2
58.0
58.4
58.7
58.5
58.9
59.3
60.1
5Q 9
59.3

Total
Effectiye
Reserves
Seasonally
Adjusted

Week
Ending

7, 1968
14
21
28
Sept. 4, 1968
11
18
25
Oct.
2
Aug.

S9 O
S9.S

p
Week
Ending
7, 1968
14
21
28
Sept. 4, 1968
11
18
25
Oct. 2
Aug.

26.41
26.20
26.60
26.26
26.24
c?4
o8
JLC.3^ P

Reserves
Available
For Private
Demand Deposits
Seasonally
Adj us ted
/7-U
n-w
n.

/?•
n.si>
nrju>
i?3?
17^1
17. ft p

Averages of daily figures in billions of dollars.
P - preliminary

tf

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