View original document

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

« Research

Federal Reserve Bank
of St. Louis

•

•

library

in

s

f in n n r i n
III

I

I■

A

<

■

l

mm
<|4|

i A#A

Week ending: October 22, 1969

am 21 m
Monetary magnitudes continue to indicate con­
siderable restraint.
Since early June the money stock
has been about unchanged.
Earlier in the year money
increased at a 4.4 per cent rate, compared with a 7 per
cent increase in 1968 (page 5).

foreign bank, the reserve requirement is 10 per cent,
unless the borrowings amount to less than 4 per cent
of the bank's average deposits subject to reserve
requirements, in which case the reserve requirement
on the borrowings is 3 per cent.

The income velocity of money (the annual rate
of turnover of the money stock with respect to income)
increased more sharply from the second to the third
quarter of 1969 than it had in any other quarter
since 1966, when for a period of nine months, from
April to January 1967, there was no growth in the
money stock (page 6). Velocity increased from 4.61
in the fourth quarter of 1968 to 4.66 in the second
quarter of 1969 to 4.73 in the third quarter.

As a result of these new reserve requirements,
in the week ending October 22 required reserves of member
banks averaged about $405 million higher than tne
amount required on the basis of time and demand deposits.
Total meiDer bank reserves, which are adjusted for
changes in reserve requirements and for seasonal factors
and include excess reserves, were $27.1 billion. These
reserves have declined at an 8.8 per cent annual rate
since early June after remaining about unchanged on
balance during the first half of the year (page 3).

Changes in Federal Reserve Regulations
M and D require member banks to hold reserves behind
some borrowing and lending involving their foreign
branches or other foreign banks beginning the week
ending October 22. Activities subject to the new
requirements are:
(1) borrowing between a member
bank and its foreign branch; (2) lending by a foreign
branch of a member bank to a U.S. resident; and
(3) borrowing by a member bank from a foreign bank.
In the first two cases the reserve requirement
is 10 per cent of borrowing or lending in excess
of the level at that bank in a specified period
last spring.
In the case of borrowing from a

banker's acceptances outstanding increased
$87 million in September to $5.2 billion.
Since last
December these acceptances have increased about $800
million, compared with about a $100 million increase
in the previous year. The volume of both bankers'
acceptances and commercial paper have increased
rapidly since last December.
In contrast, outstanding
large negotiable certificates of deposit at large
commercial banks are less than one half their December
level, due to Regulation Q ceilings which prevent banks
from offering competitive returns (page 8).


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

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 24,1969

.11:

MONETARY BASE LL
FEDERAL RESERVE CREDIT^
Averages of Daily Figures

of Dollars

82

Billions of

_ Seasonally adjusted by this bank.
Monetary

Annual rates of change, average of four weeks
ending Oct. 22,

Base

1969 from four weeks ending:

r)

-.

U

81
Monetary
Base

79

Apr. 23,

1969

J une 11,

1969

Credit

1969

Jan. 22,

80

F. R.

A/, S
+ /.Q

1957-1968

78
Monetary Base

77

76

75

74

F.R.Credit

Federal Reserve Credit
73
Uses of the monetary base are member bank

/O
/7

C.S, 633
!°3,7iC

_

reserves and currency held by the public

1/

c3.4

te'i.ZIV

-

and nonmember banks, adjusted for reserve

/

requirement changes and shifts in deposits.

62

io^360

S

_

_

-

is

U4,

AA

For a description of the base see the August
1968 Review of this bank.
'
■

4.V, 99/ P —

-

61
Defined to include holdings of securities,
loans, float, and ''other” assets, adjuste
60

0
10 24
July

7 21
Aug.


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

4

18 2
Sept.

16 30 13
27 11 25
Oct.
Nov.
Dec.
1968

8 22
Jan.

5

19
Feb.

5

19
Mar.

2

16
30 14 28
Apr.
May

11 25 9
23
June
July
1969

6

20
Aug.

3
17
Sept.

15 29
Oct.

12 26
Nov.

Prepared by Federal Reserve Bank of St. Louis

10 24
Dec.

7 21
Jan.
1970

in the Nation
All Member 5c1
ily Figures
Averages of
Seasonally Ad usted

Billions of Dollars

Annual rates of change, average
ending Oct. 22, 1969 from four i

Jan. 22,

1969

!s of Dollars

of four weeks

-

TOTAL

JC

—Latest data preliminary
.Latest data plotted


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

Current data appear in the Board's H.9 release.

June

July

Aug.

Sept.

1969

Prepared by Federal Reserve Bank of St. Louis

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
Averages of Daily Figures
Seasonally Ad usted

Billions of Dollars

4
billions ot Dollars

Annual rates of change, average of four
weeks ending Oct.

15,

1969-from four

weeks ending:

Apr.
_ Jan.
_

16,
15,

1969
1969

OU.
June 11,

I

1969

Dec. 25 - June 11
1957-1968

Data include the annual revision of seasonal factors
and. benchmark adjustments of nonmember bank deposits.
Current data appear in the Board's H.6 release.

__ Latest data preliminary
Latest data plotted week ending:

10 24
July


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

2
1968

16

30 13

Oct.

15,

1969

27 11
25
Dec.

8

22
J an.

5

19
.

5

19
Mar.

2

16 30 14 28 11
25 9
23
Apr.
May
June
July
_
1969

6

20
Aug.

3
17
Sept.

1

15

29

12

Prepared by Federal Reserve Bank of St. Louis

26 10

24

7

21
Jan.

MONfiLSTOCK

Bil^^

Averages IBbaily Figures

Liars

Billions of

of Doliars

Seasonally Ad

215

Annual rates of change, average of four
weeks ending:
July 16,

/ 9 F.9

211

1969

Apr.

16,

1969

Jan.

15,

1969

Oct.

16,

1968

June 11,

1969

210
209
208
-

O .*f
207

Dec. 25 - June 11

206

1957-1968

205
204
203

202
201
200
199
198
197
196
195
194
193
192
191
190
189
188
Data include the annual revision of seasonal factors r
~ and benchmark adjustments of nonmember bank deposits.'
1.,..
. ..
_
J X. 1—
n J.
Jv
TJ
1 A no n
_Current . data appear in the Board's -H.6 1 release.
I I I I I I I I I I I 1 I I I I I I L
___ Latest data preliminary
Latest data plotted week ending:

Mil

10

24

7


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

21

4

l 1..J-I
18 2
16
30
Sept.
1968

I I

1 1

187
186

I I -1

L t 1

185
Oct.

,

9

0

1 1 1 1 1 1
13 27 11 25
Nov.
Dec.

6

22

5

19

5

19

2

16 30

14 28

11

25

June

9

23
July

6

20

3

17

1

15 29

12 26

Prepared by Federal Reserve Bank of St. Louis

10
24
Dec.

7

21

INCOME VELOCITY OF MONEY
GNP/Money Stock

Annual Rates
of Turnover
5.4 ———i—

Annual Rates
of Turnover

—n——

4. 73

Latest data plotted:

1958

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

third quarter 1969 preliminary.

1960

1961

1966
Prepared by Federal Reserve Bank of St. Lo

5.4

till

MONEY STOCI^LUS TIME DEPOSITS
Ave rag e
Daily Figures
Seasonally Ad justed

Dollars

432

Billi
ions of Dollars

430
Annual rates of change, average of four weeks
428

ending Oct.

15,

1969 from four weeks ending

•39Z.S
4? 6

July 16,

42?

Apr.

16,
15,

1969

Oct.

16,

39 7.2.
390-3
39S. f
39*7. 7
399.0
•393.1
3?2.f
393.5
3 93. lo
393. 9
3 92.3
39J-9,
393. (c

1969

Jan.

42'.

39 f.

1969

1968

420
June
418
416
414
412

312. S'

410
408
406
404
402
400
398
396
394

39* .S

392
390
388
386
384
382
380
378
376

Data include the annual revision of seasonal factors
and benchmark adjustments of nonmember bank deposits
Current data appear in the Board's H.6 release

n~f 1 1 1 1 11 i 1 1 11

374
372

Latest Data Preliminary
Latest Data Plotted Week Ending:

<r

Oct.

15,

1969

i 1 11 1 1 11 1 1 1 1 i 1 rmTTm m i i
10 24'
July


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

7

21
Aug.

4

18
Sept.

2

16
30 13 27 11 25
Oct.
Nov.
Dec.
1968

2

16
30 14 28
Apr.
May

11 25
June

9 23
July
1969

3

17
Sept'.

1

15
29 12 26
Oct.
Nov.

Prepared by Federal Reserve Bank of St. Louis

10 24
Dec.

CERTIFICATES OF DEPOSIT H
-iOT

Large commercial Banks

of Dollars

Billions of

Wednesday Figures
Annual rates of change, data not seasonally
adjusted, average of four weeks ending Oct.
28

15,

1969 from four weeks ending:

_

Million^ of Dollars
|
/*3,4Ti
A3
/(JL /V* '

A<j*. 4b
July 16,

26

Jan.

15,

1969

-*.• j /*, tvu
c*7
•St.fi. a

1969

j

/*, 4./A

24

22

20

18

16

14

12

10

8

6

0:

Current and year ago data appear in the
Board's H.4.2. release.
\J Negotiable tine certificate* ef deposit

Latest data preliminary
Latest data platted:

Oct.

15,

1969
25

Aug.


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

Sept.

8

22
.

5

19
Feb.

5

19
Mar.

2

16
Apr.

30 14

28

May

11 25
June

9

23

July

6

20
Aug.

3

17

Sept.

1

15

29 12

Oct.

26

Nov.

1969

Prepared by Federal Reserve Bank of St. Louis

10 24
Dec.

7
.

BUSINESS LOANS
Large Coidfercial Banks
Wednesday Figures
Billions of Dollars

Billions of Dollars

Seasonally adjusted by this bonk.
84

four weeks ending Oct.

15,

1959

from four weeks ending:
82
July 16,

Oct.

16,

1969

80

1968

1960-1968
78

76

74

72

70

77.

9/7

&z±

68

7 i, rJV
66

64

62
Current and year ago unadjusted data appear in
the Board's H. 4.2 release.
Latest data preliminary

Oct.

15,

Seasonal adjustment

computed by this bank using 1963 through 1968 data.

1969

Latest data plotted:


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

Sept.

May

June

July
1969

Aug.

Sept.

Prepared by Federal Reserve Bank of St. Louis

Jan.
1970

10

YIELDS ON SELECTED SECURITIES
Averages of Daily Rates Ended Friday

Per Cent
9.50

•Month
■easury

, 1969

! 3-5 Year

Per Cent

Corporate

Long Term

7 .o/
9.00

7.Jf

U lb
7. 3J
Prime Commercial
Loan Rate

7.3 3
Corporate
Aaa^Bonds
7.00

Three-Month TreasuryBill Market Yield

6.00

6.00

Long-Term
"Government Bonds
Discount Rate

5.00

4.50

4.00

3.50
Latest data plotted are averages of rates available for the week ending: Oct. 24,
12

26

9

23
Aup.

6
20
Sept.
1968


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

15

Hov.

29 13

27

10

24 7

21
.

7

21

Mar.

4

18

Apr.

2

16
May

1969
30

13

27 11 25

June

July
1969

22
Aug.

5
19
Sept.

3

17

31 14

Prepared by Federal Reserve Bank of St. Louis

2 3 1?
26
Dec.

9

23
Jan.

SELECTED SHORT-«pM INTEREST RATES
Averages of DailyRates Ended Friday

Per Cent

Per Cent
11.00

11.00
Prime
C runnier rial
Paper
1969

4-6 Month

10.50

Prime
Bankers'

90 Day

Acceptances . ,CP's,

8. so

*

10.50

s. 7 s'

r.sa

8.3S
S', / s

10.00

.

s.so

10.00

r.oa

r /a
S’. co

S’, £ 5

%MS

8. SO
50

?. So

8.

8. Uo

S’. 3
S’. 7S
S’. 7S
r. <c 3

9.00

Federal Funds Rate

T.*Sl
8.50

8.00
Bankers
Acceptances
7.50

Commercial Paper
4-to-6 Month

6.00

6.00
" "Discount Rate

5.00

5.00
^Latest data plotted are averages of rates available for the week ending:

l .1, l .[. .1. I, —l
12

26

9

23

6

20
Sept.

4 18
Oct.

1

15

29 13

l
27 10

24

l i i.-.-t.
7 21
7

21
Mar.

* AVERAGES OF RAXES AVAILABLE; FEDERAL FUNDS LAST FIVE DAYS 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

4

Oct. 24,
18

2

16

1969
30 13 27
June

11 25

8 22
Aug.

19
Sept.

3

17 31

14

28 12

Nov.

Prepared by federal Reserve Bank of St. Louis

26

9

23
Jan.
1970

Millions of Dollars
3,200

1969

12

BORROWINGS AND EXCESS RESERVES
All Member Banks in the Nation
Averages of Daily Figures

Millions of Dollars

BORROWINGS

EXCESS
RESERVES

2,800

// 0(o
/CO
2,000

2,000
^Borrowings.

1,200

/6/S

Excess Reserves

-

-

1,200

-

1,000
1,200

-1,400
■Net Free Reserves

-2,600
Latest data preliminary
-Latest data plotted week ending:
4 18
Sept.

16

30 13

1968


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

27

11

25

Oct. 22,
8 22
Jan.

1969

5
19
Feb.

5

19
Mar.

2

16 30
pr.

23

14 28 11 25
May
June

6

20

3

17

Sept.

1

15

29

12 26

10 24
Dec.

7

21
Jan.

4

18

4

1970_

1969

Prepared by Federal Reserve Bank of St. Louis

18
Mar.