Full text of U.S. Financial Data : Week Ending: September 1, 1971

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Week ending: September 1,1971
LIBRARY
JUN 0 5 1979
The nation's money stock, defined as private demand
deposits plus currency in the hands of the public, has expanded
at a rapid 11 per cent annual rate in the past seven months (page
5). In the past two months, the growth of money has slowed to a
7 per cent annual rate. These rates are quite rapid by historical
standards. For comparison, money grew at a 3.3 per cent trend rate
from 1957 to 1969 and 5.4 per cent in 1970.
Market interest rates remain well below their August 13
levels, the week preceding the announcement of the new economic
policies (pages 10 and 11). Yields on three-month Treasury bills
averaged 4.47 per cent in the three days ending September 1, 80
basis points below the week of August 13. The rates on threeto five-year Government securities averaged 5.91 per cent in the
first half of this week, down 90 basis points from the August 13
level.
Other interest rates have shown somewhat smaller declines
over the past three weeks. For example, yields on prime four- to
six-month commercial paper averaged 5.67 per cent this week, down
15 basis points from three weeks earlier. The Federal funds rate
averaged 5.63 per cent in the five days ending September 1, about
the same as the August 13 level. The general decline of market
interest rates presumably reflects the confidence of market parti­
cipants that the new economic policies will succeed in reducing
the rate of price inflation.
Member bank borrowings from Federal Reserve banks have
risen in recent months, after declining in 1970 and the first part
of 1971 (page 12). Borrowings averaged $740 million in the past
two weeks, compared with only $150 million in April. Although
increases in these borrowings have provided a share of the recent
expansion in the monetary base, which underlies the rapid monetary
growth, some analysts have interpreted the rise in borrowings as
a measure of monetary restraint. The discount rate, the rate
charged by Federal Reserve banks on member bank borrowings, is
currently at 5 per cent. During June the Federal funds rate
and the three-month Treasury bill rate rose above the discount
rate. The large decline in the bill rate during the past three
weeks has brought this rate below the discount rate, but the
Federal funds rate has remained above the discount rate.


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

Prepared by Federal Reserve Bank of St. Louis

Released: September 3,1971

2

MONETARY BASE 1/
FEDERAL RESERVE CREDIT*/
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
— SEPTEMBER I
1971 FROM.

MONETARY BASE
MAR.
_

31

FEB

9TL

MILLIONS

28

1

8i

88

76
_

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
----- SEPTEMBER 1, 1971 FROM—
13.5
— MAR.
_

3

74
FEDERAL RESERVE CREDIT
72

10.9

FEB

70

68
1971

Ml

LL I QN§,
66

1

15 29 12 26

9 23

7 21
OCT
1970

4 18
NOV

2 16 30 13 27 10 24 10 24
JAN
FEB

LATEST DATA PLOTTED WEEK ENDINGj SEPTEMBER 1,

7 21

5 19

2 16 30 14 28 11 25

8 22

1971
1971

1/ USES OF 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 1968 ••REVIEW" OF THIS BANK.
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

0

3

RESERVES
ALL MEMBER BANKS IN THE NATION
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
32.0 ------------- ----------- r-

BILlIONS OF DOLLARS
—|---------- 1------------- - 32.0

31 .0

29.0

i

13

JUL

« 14 zo » Za

AUG

f

SEP

21

OCT

4 18

NOV

2 16 30 13 27 10 24 10 24

DEC

JAN

FEB

MAR

7 21

APR

1970

3 10

MAY

2 16 30 14 28 II 25
JUL
AUG

8 22

197!

LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 1,

1971

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
* BREAK IN SERIES DUE TO CHANGES IN REGULATION D EFFECTIVE OCTOBER 1,


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

1971
JUL.
AUG.

SEP.

28
4
11
18
25
1

billions

31.4
31.8
31.5
31.8
31.4
31.9

1970.

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR l^EEKS ENDING
SEPTEMBER 1. 1971 FROM
THE FOUR WEtKS ENDING:
JUN.
JUN.
APR.
MAR.
MAR.
FEB.
DEC.

30, 1971
2, 1971
28, 1971
31, 1971
3, 1971
3, 1971
30, 1970

7.6
5.2
9.7
7.0
7.3
8.8
9.1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS
180 ------------- 1---------- 1-----

BILLIONS OF DOLLARS
----------------- -------------- 180

175.3
175.0
176.8
176.9
176.5

I

IS 28 12 28

9 23

7 21
OCT

4 18
NOV

2 16 30 13 27 10 24 10 24
JAN
FEB

LATEST DATA PLOTTED WEEK ENDING. AUGUST 25,

7 21
JUL

AUG

1971

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

COMPOUNDED ANNUAL RATES OF CHANGE ,

AVERAGE OF FOUR WEEKS ENDINGt

8/26/70

12/23/70

1/27/71

2/24/71

3/24/71

4/28/71

5/26/71

2.9
4.3
5.5
6.4
7.4
7.9
8.2
7.7

6.1
8.2
9.3
10.6
10.9
10.9
9.8

12.8
12.6
13.5
13.3
12.8
1 1.3

12.7
13.8
13.6
12.9
1 1.2

14. 1
13.7
12.8
10.8

14.5
13.0
10.4

1 1.6
8.6

6/23/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING.


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

1/27/71
2/24/71
3/24/71
4/28/71
5/26/71
6/23/71
7/28/71
8/25/71

6.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS

of dollars

227.7
226.8
228. 7
228.8
228.2

1

<5 29 12 26

9 23

7 21
OCT
1970

4 18
NOV

2 16 30 13 27 10 24 10 24
JAN
FEB

2 16 30 14 28 11 25

7 21

8 22

1971

LATEST DATA PLOTTED WEEK ENDING: AUGUST 25.

1971

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

COMPOUNDED ANNUAL RATES OF CHANGE,

AVERAGE OF FOUR WEEKS ENDING:

8/26/70

12/23/70

1/27/71

2/24/71

3/24/71

4/28/71

5/26/71

6/23/71

3.5
4.8
5.8
6.7
7.4
7.8
8.2
7.7

6.6
8.5
9.4
10.3
10.5
10.6
9.6

12.4
12.3
12.8
12.5
12.3
10.9

12.3
12.9
12.6
12.3
10.7

13. 1
12.6
12.2
10.3

13.0
12.3
9.9

11.4
8.5

7.1

TC THE AVERAGE
OF FOUR WEEKS
ENDING:
1/27/71
2/24/71
3/24/71
4/28/71
5/26/71
6/23/71
7/28/71
8/25/71


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

6

TIME DEPOSITS

ALL COMMERCIAL BANKS
8Ill!ons

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

of dollars

BILLIONS OF DOLLARS
260

250
TOTAL TIME DEPOSITS
240

230

220
NET TIME DEPOSITS *

210

200

190

I

15 29 12 26

9 23

7 21
OCT

4 18
NOV

2 16 30 13 27 10 24 10 24
JAN
FEB

7 21
APR

5 10

2 16 30 H 28 It 25

*22

MAY

1970
LATEST DATA PLOTTED WEEK ENDING. AUGUST 25,

1971

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 DEPOS1TS
COMPOUNDED ANNUAL RATES OF CHANGE,

AVERAGE OF FOUR WEEKS ENDING:

8/26/70

12/23/70

1/27/71

2/24/71

3/24/71

4/28/71

5/26/71

6/23/71

17.8
20.3
21.9
21.2
20.6
20.0
18.4
17.4

28.7
30.0
26.2
24. 1
22.5
19.7
18. 1

34. 1
27.2
24.3
22.3
18.9
17.2

23.8
21.0
19.4
16. 1
14.6

16. 1
15.5
12.7
11.6

14.7
11.1
10.0

9.4
8.5

6.0

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/27/71
2/24/71
3/24/71
4/28/71
5/26/71
6/23/71
7/28/71
8/25/71


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

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
500

490

480

MONEY STOCK PLUS TOTAL TIME DEPOSITS

470

460

450

440

430
MONEY STOCK PLUS NET TIME DEPOSITS**
420

410

400

t

15 29 12 26

9 23

7 21
OCT
1970

4 18
NOV

2 16 30 13 27 10 24 10 2 4
JAN
FEB

7 21

5 19

2 16 30 14 28 11 25
JUL
AUG

8 22

1971

LATEST DATA PLOTTED WEEK ENDINGi AUGUST 25,

1971

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
Mi IS DEFINED ASi CURRENCY, DEMAND DEPOSITS PLUS NET TIME DEPOSITS (SEE PAGE 6).

MONEY STOCK PLUS NET TIME DEPOSITS ( M 2 )
COMPOUNDED ANNUAL RATES OF CHANGE,

AVERAGE OF FOUR WEEKS ENDING:

8/26/70

12/23/70

1/27/71

2/24/71

3/24/71

4/28/71

5/26/71

6/23/71

10. 1
12. 1
13.3
13.6
13.7
13.6
13.0
12.3

17.0
18.5
17.6
16.9
16.3
15.0
13.7

22.7
19.8
18.4
17.3
15.6
14.0

18.2
16.9
16.0
14.2
12.6

14.7
14.2
12.5
11.0

13.5
1 1.5
9.8

10.4
8.5

6.6

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/27/71
2/24/71
3/24/71
4/28/71
5/26/71
6/23/71
7/28/71
8/25/71


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
32

30

28

26

24

22

20

18

14

t

15 29 12 26

9 23

7 21
OCT

•4 18
NOV

2 16 30 13 27 10 2-4 10 2-4
JAN
FEB

7 21

1970

5 19

2 16 30 14 28 11 25
JUL
AUG

8 22

1971

LATEST DATA PLOTTED WEEK ENDING. AUGUST 25,

1971

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF 8100,000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.


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

MONEY AND TIME DEPOSIT DATA

1971
JULY

AUG.

SEP.

7
14
21
28
4
1 1
18
25
1
8
15
22
29

CERTIFICATES
OF DEPOSIT

BILLIONS
NET TIME
DEPOS1TS *

29.6
30. 1
30.1
30.5
30.0
29.7
30.3
30.5

226.5
226.5
226.8
227.0
227.5
227.7
227.7
228. 1

M2

m

455.2
453.9
454.5
454.0
454.3
456.4
456.5
456.3

* SEE FOOTNOTE PAGE 6.
SEE FOOTNOTE PAGE 7.
PREPARED BY FEDERAL RESERVE BANK OF ST

LOUIS

9
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/

LED I T PROXY

I

IS 29 12 26

9 23

7 21

4 16

2 16 30 13 27 10 24 10 24
JAN
FEB

7 21
APR

1970
..ATEST DATA PLOTTED WEEK ENDING. AUGUST 25,

5 19
MAY
1971

2 16 30 14 28 11 25

6 22

1971

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.9 RELEASE.
1/ INCLUDES MEMBER BANK DEPOSITS, BANK-RELATED COMMERCIAL PAPER, EURODOLLAR BORROWINGS OF
J.S. BANKS, AND CERTAIN OTHER NONDEPOSIT SOURCES.

1971

JUL.
AUG.


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Federal Reserve Bank of St. Louis

BILLIONS

21
28
4
11
18
25

CRED1T

CREDIT
PROXY

■PROXY

APJMta

343.3
344.4
344.2
344.4
346.8
350. 1

347.8
348.7
348.1
348.7
350.5
353.7

COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF THE FOUR WEEKS ENDING
AUGUST 25. 1971 FROM THE FOUR
WEEKS ENDING.
CREDIT
CREDIT
PROXY
PROXY
ADJUSTED
JUN.
MAY
APR.
MAR.
FEB.
JAN.
DEC.

23,
26,
28,
24,
24,
27,
23,

1971
1971
1971
1971
1971
1971
1970

8.9
8.6
9.1
10.1
11.2
12.6
13.3

8.
8.
7.
7.
7.
8.
9.

i
3
8
4
9
7
2

PREPAREO BY FEDERAL RESERVE BANK OF ST. LOUIS

10
YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PER CENT

PER CENT

CORPORATE AAA BONOS

PRIME Cl
LOAN RA

1RCIAL

DISCOUNT RATE
THREE-MONTH TREASURY
BILL MARKET YIELD

3 17 31

14 28 11 29 9 23
AUG
SEP
1970

e 20
NOV

4 18
DEC

1

IS 29 12 28 12 26
JAN- FEB
MAR

9 23

7 21

4 18

2 16 30 13 27 10 24
AUG
SEP

1971

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE «€EK ENDINGi SEPTEMBER 3,

1971
JULY

AUG.

SEP.

2
9
16
23
30
6
13
20
27
3 X
10
17
24

1971

CORPORATE
Aaa BONDS

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

MUNICIPAL
BONDS mm

7.63
7.65
7.64
7.63
7.66
7.69
7.71
7.48
7.50
7.47

5.17
5.40
5.38
5.45
5.39
5.28
5.24
4.7!
4.69
4.47

6.70
6.70
6.64
6.82
6.92
6.85
6.81
6.05
6.06
5.91

5.97
5.92
5.82
5.91
5.96
5.93
5.90
5.64
5.70
5.61

6.19
6.06
6.03
5.97
6.05
6.07
6.03
5.49
5.71
N.A.

X AVERAGES OF RATES AVAILABLE.
XX 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

PER CENT
9.0 -------

PER CENT
-------- 9.0

8.5

8.5

8.0

7. 5

7.0

6.5

6.0

COMMERCIAL PAPER
4-T0-6 MONTH

5.5

5.0

4.5
FEDERAL FUNDS RATE
4.0

3.5

3.0

0

I I 1 ll I I I I II I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I II I I I I I I I I I 1 I I U 1
31 14
14 28
3 17 31
28 11
11 25
25 9 23 66 20
20
JUL
AUG
SEP
OCT
NOV
' 970

44 18
18
DEC

1 1 15
15 29
29 12
12 26
26 12
12 26
26 9 23
JAN
FEB
MAR
APR

77 21
21
MAY
1971

44 ’8
18
JUN

22 16
16 30
30 13
13 27
27 10
10 24
24
JUL
AUG
SEP

LATEST DATA PLOTTED ARE AVERAGES OP RATES AVAILABLE FOR THE WEEK ENDING: SEPTEMBER 3,


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

1971
JUlY

AUG.

SEP.

2
9
16
23
30
6
13
2C
27
3 ¥
10
17
24

PRIME
COMMERC1AL
PAPER
4-6 MONTH
5.65
5.75
5.75
5.75
5. 75
5. 75
5.83
5.78
5.63
5.67

’97’

1

FEDERAL
FUNDS

PRIME
BANKERS’
ACCEPTANCES

90 DAY
CD’S***

5.10
5. 10
5. 20
5. 48
5. 40
5.65
5.58
5.53
5.48
5.63

5.60
5.63
5.50
5.63
5.63
5.63
5.63
5.55
5.53
5.50

5.53
5.59
5.68
5. 77
5. 80
5.80
5.82
5.88
5.75
5.56

________

* AVFRAGES OF RATES AVAILABLE. FEDERAL FUNDS LAST FIVE DAYS AVAILABLE
** 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 DA! 1_Y FIGURES

BILLIONS OF DOLLARS

BIlLIONS

of

dollars

BORROW 1NGS

EXCESS RESERVES

-0.4

-0.4

0.8

-

net

free

reserves

1.2

1.2

-

-

-!

■4

.6

1

IS 29 12 26

latest data


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

9 23

Plotted

7 2!

4 18

week endingi

2 16 30 13 27 10 24 10 24
JAN
FEB

September

i,

7 21

5 19

2 16 30 14 28 M

1971

1

MILLIONS
EXCESS
RESERVES

1971
JUL V

AUG.

SEP.

7
14
21
28
4
1 1
18
25
1
8
15
22
29

277
5
282
67
517
24
289
109
345

25

BORROW 1NGS
661
991
1 121
545
764
593
1 180
77!
708

FREE
RESERVES
-

384
986
839
478
247
569
891
662
363

1
!
i

PREPARED

B7 cEDERAi_ RFSERVE BANK OF ST.

lOJ'S

-1.6