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Week ending: September 12, 1973 The nation's money stock has increased at a 5.4 percent annual rate in the past six months. During this period, money increased at a 3.9 percent rate in the most recent three months and at a 7 percent rate in the previous three months. Money has increased 5.9 percent in the past twelve months, slightly below the average rate of 6.3 percent from 1967 to 1972, but considerably above the 2.9 percent average rate from 1957 to 1967. Market interest rate movements have been mixed in recent weeks; however, some rates increased sharply early this week. Three-month Treasury bill rates declined somewhat in late August, but climbed to a new historical high of 9.03 percent early this week. Rates on prime four-to six-month commercial paper averaged 10.46 percent for the first three days of this week, also up over last week's average. Yields on three-to five-year Government se curities averaged 7.43 percent early this week, up 16 basis points over last week's average, but below the 8 percent rates quoted in early August. Bank loans and investments (bank credit) increased sub stantially in August, but the average growth over the past three months has been somewhat slower than the very rapid pace registered in the previous several months. Bank credit increased at an 11.4 per cent rate in the three months ending August, still rapid when compared with an average 8.9 percent rate of increase from 1962 to 1972, but slower than the 17 percent rate from August 1972 to May 1973. The bank loans component of bank credit increased sharply in August and has risen at almost a 17 percent annual rate in the past three months, compared with a 10.3 percent trend rate from 1962 to 1972. Meanwhile, total investments have declined slightly, on balance, since January of this year. Business loans, an important component of bank loans, have risen at rapid rates in recent months, despite the unprecedented level of bank lending rates. Adjusted business loans, as reported by large commercial banks on a weekly basis, have increased at about a 22 percent annual rate in the past three months and at a 29 per cent annual rate in the past two months. These loans increased at a 10 percent average rate from 1962 to 1972. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Prepared by Federal Reserve Bank of St. Louis Released: September 14, 1973 MONETARY BASE AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED BY THIS BANK BILLIONS OF DOLLARS BILLIONS OF DOLLARS 104 MILLIONS. 102 100 98 96 94 5 19 2 10 30 13 27 11 25 8 22 6 20 3 17 31 14 28 14 28 11 FEB SEP OCT 1972 MAR 25 9 23 6 20 4 18 1 15 29 12 26 APR 1973 LATEST DATA PLOTTED WEEK ENDINGi SEPTEMBER 12, 1973 USES OF MONETARY BASE ARE MEMBER BANK RESERVES AND CURRENCY HELD BY THE PUBLIC AND N0M4EMBER BANKS. ADJUSTED FOR RESERVE REQUIREMENT CHANGES AND SHIFTS IN DEPOSITS. FOR A DESCRIPTION OF THE BASE SEE THE AUGUST 1968 " REVIEW" OF THIS BANK. COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING: 9/13/72 1/10/73 2/14/73 3/14/73 4/11/73 5/9/73 6/13/73 7/11/73 8.4 9.6 9.8 9.7 9.2 9. 1 8.4 8.1 8.4 9.4 9.2 8.5 8.5 7.5 7.2 13.9 12.1 10.3 9.9 8.5 8.0 10. 1 8.5 8.5 7.2 6.8 7.2 7.5 6.2 5.9 7.0 5.5 5.3 5.2 5.0 3.6 TO THE AVERAGE OF FOUR WEEKS ENDING: 2/14/73 3/14/73 4/11/73 5/ 9/73 6/13/73 7/11/73 8/15/73 9/12/73 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS MULTIPLIER is FEDERAL RESERVE CREDIT^ AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED MULTIPLIER RATIO AUG. 2.597 2.616 2.604 2.605 2.576 2.590 SEP. I I I I I I LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 5, 1973 BILLIONS OF POLLARS BILLIONS OF DOLLARS 94 “ COMPOUNDED ANNUAL RATES ___ OF CHANGE, AVERAGE OF THE FOUR WEEKS END TNG _ SEPTEMBER 12, 1973 FROM THE FOUR WEEKS ENDING: JUL. 11, 1973 JUN. 13, 1973 MAY 9, 1973 -----APR. 1J, 1973 MAR. 14, 1973 " FEB. 14, 1973 ___ SEP. 13, 1972 - 92 90 -9.4 -4.0 -2.9 -0.6 2.3 5.9 10.0 FEDERAL RESERVE CREDIT 86 86 84 82 1973 MILLIONS AUG. — 80 — 78 5 19 2 18 30 13 27 11 25 8 22 6 20 3 '7 31 14 28 14 28 11 SEP OCT 1972 25 9 23 6 20 4 18 1 15 29 12 26 1973 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 12, 1973 1/ RATIO OF MONEY STOCK < Ml > / MONETARY BASE. 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. DATA ARE SEASONALLY ADJUSTED BY THIS BANK. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS X DEMAND DEPOSIT COMPONENT OF MONEY STOCK AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED BILLIONS OF DOLLARS BILLIONS OF DOLLARS 215 BILLIONS 204.5 204.8 205.2 203.3 203.8 210 205 200 195 5 19 2 10 30 13 27 II 25 8 22 0 20 3 IT 31 14 28 14 28 11 FEB MAR 9 25 0 20 4 IS 1 15 29 12 20 APR 1973 1972 LATEST DATA PLOTTED WEEK ENO'NG: SEPTEMBER 5, 1973 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE. COMPOUNDED ANNUAL RATES OF CHANGE , 9/6/72 1/3/73 2/7/73 3/7/76 T.7 2.6 6.5 7.5 6.4 5.3 0.0 5.9 7.4 6.0 4.9 AVERAGE OF FOUR WEEKS ENDING: 4/4/73 5/2/73 10.9 11.3 8.5 6.7 14.4 9.6 7. 1 6/6/73 7/4/73 6. 1 3.8 0.3 TO THE AVERAGE. OF FOUR WEEKS ENDING: 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 7/73 7/73 4/Ti 2/73 6/73 4/73 8/73 5/73 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4.9 5.4 4.0 4. 1 5.6 6.2 5.7 5. 1 0.3 -1.2 0.2 3.6 4.9 4.3 3.7 PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS MONEY STOCK AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED BILLIONS OF DOLLARS BILLIONS OF DOLLARS 275 1973 263.8 263.6 264.4 264.9 262.9 263.8 270 265 260 255 250 5 19 2 16 30 13 27 II 25 6 22 6 20 3 17 31 14 28 14 28 11 FEB MAR 25 9 23 6 20 1 15 29 12 26 APR 1973 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 5. 1973 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE. COMPOUNDED ANNUAL RATES OF CHANGE , 9/6/72 1/3/73 2/7/73 3/7/73 AVERAGE OF FOUR WEEKS ENDING: 4/4/73 5/2/73 11.0 11.0 8.3 6.8 12.7 8.6 6.6 6/6/73 7/4/73 5.7 3.9 0.9 TO THE AVERAGE OF FOUR WEEKS ENDING: 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 7/73 7/73 4/73 2/73 6/73 4/73 8/73 5/73 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5.9 6.4 5.3 5.6 6.6 7.0 6.4 5.9 1 .6 0.6 2.2 4.8 5.7 5.0 4.4 3.9 5.0 7.6 8.2 6.9 6.0 2.8 7.0 7.9 6.5 5.4 PRFPARED BY FEDERAL RESERVE BANK 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 19 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 14 28 M 25 1972 9 23 6 20 4 JUN JUL 18 1 15 29 12 28 1973 LATEST DATA PLOTTED WEEK FNDING; SEPTEMBER 5, 1973 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 8100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS. NET time DEPOSITS COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING: 9/6/72 1/3/73 11.8 11.2 10.9 10.8 10.6 10.3 10.0 10.3 10.0 9.7 9.7 9.7 9.2 9.0 9.6 2/7/73 3/7/73 4/4/73 5/2/73 6/6/73 8.4 8.9 9. 1 8.7 8.5 9.2 9.3 9.5 8.8 8.6 9.4 9.8 8.8 8.5 9.5 8.4 8. 1 9.4 7.2 9.3 7/4/73 TO THE AVERAGE OF FOUR WEEKS ENDING: 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 7/73 7/73 4/73 2/73 6/73 4/73 8/73 5/73 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10.5 PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS MONEY STOCK PLUS TIME DEPOSITS AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED BILLIONS OF DOLLARS 630 =------- ------------- ----- BILLIONS OF DOLLARS ----- ------------- --------3 630 MONEY STOCK PLUS TOTAL TIME DEPOSITS MONEY STOCK PLUS NET TIME DEPOSITS ** 5 19 2 16 30 13 27 11 25 • 22 6 20 3 17 31 14 26 14 28 11 25 9 23 6 20 4 16 JUN JUL 1 15 29 12 26 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 5, 1973 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE. ** M* »S DEFINED AS: CURRENCY, DEMAND DEPOSITS PLUS NET TIME DEPOSITS l SEE PAGE 6). MONEY STOCK PLUS NET TIME DEPOSITS (M2) COMPOUNDED ANNUAL RATES OF CHANGE, 9/6/72 1/3/73 2/7/73 3/7/73 AVERAGE OF FOUR WEEKS ENDING: 4/4/73 5/2/73 10.4 9.9 8.3 8.2 10. 4 8.3 8. 1 6/6/73 7/4/73 TO THE AVERAGE OF FOUR WEEKS ENDING: 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 7/73 7/73 4/73 2/73 6/73 4/73 8/73 5/73 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9.0 8.9 8.2 8.3 8.7 8.7 8.3 8.2 5.7 5.2 6.0 7.3 7.5 7.0 7. 1 6. 1 6.9 8.3 8.4 7.6 7.6 6.3 8. 4 8.5 7.5 7.6 6.3 6.7 5.9 PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS 8 CERTIFICATES OF DEPOSIT LARGE COMMERCIAL BANKS WEDNESDAY FIGURES SEASONALLY ADJUSTED BILLIONS OF DOLLARS 5 19 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 14 28 11 FEB MAR BULLIONS of dollars 25 9 23 6 20 4 1* 1 1-6 29 12 2* APR 1972 LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 5, 1973 ’ CURRENT DATA APPEAR IN thf BOARD OF GOVERNORS* H.6 RFLEASE. NFGOTIABuE TIME CERTIFICATES OF DFPOSIT ISSUED IN DENOMINATIONS OF *100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONEY AND TIME DEPOSIT DATA 1973 JULY AUG. SEP. 4 1 1 18 25 1 8 15 22 29 5 12 19 26 CERTIFICATES OF DEPOSIT BILLIONS NET TIME DEPOS1TS * 63. ' 63.9 64.4 65.4 65.5 66.2 67.3 67.4 67.6 67. 1 283.0 282.4 283.2 283.4 284.6 285.5 285.9 287.2 287.2 288.2 M2 547,4 546.8 548.0 547.0 548.4 549. 1 550.3 552. 1 550.2 552.0 * SEE FOOTNOTF PAGE 6. ** SFE FOOTNOTE PAGE 7. eRFP4RED BY FEDERAL RFSFRVE 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 455 445 435 CREDIT PROXY ADJUSTED 1/ 425 415 405 CREDIT PROXY 395 385 5 19 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 14 28 >1 1972 25 9 23 1973 4 18 1 15 29 12 26 , LATEST DATA PLOTTED WEEK ENDING: SEPTEMBFR 5, 1873 CURRENT DATA APPEAR IN THF BOARD OF GOVERNORS' H.9 RELEASE. 1/ INCLUDFS MEMBER BANK DEPOSITS. B4NK-RFLATED COMMERCIAL PAPER, EURODOLLAR BORROWINGS OF U.S. BANKS, AND CERTAIN OTHER NONOEPOSIT SOURCES. BILLIONS 1973 AUG. SEP. 1 8 15 22 29 5 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CREDIT PROXY CRFD1T PROXY ADJUSTED 432.6 435.0 437.8 437.7 435.7 437.8 439. 4 441.5 445. 1 444.9 443.2 445, 1 COMPOUNDED ANNUAL RATES OF CHANGE. AVERAGE OF THE FOUR WEEKS ENDING SEPTEMBER 5, 1973 FROM THE FOUR WEEKS ENDING: CREDIT CRED1T PROXY PROXY ADJUSTED JUL. JUN. MAY APR. MAR. FEB. SEP. 4, 6, 2, 4, 7, 7, 6, 1973 1973 1973 1973 1973 1973 1972 10.5 11.2 11.4 11.1 12.7 14. 1 12.8 12.5 12.8 12.8 12.4 13.9 15. 1 13.5 RRFPARED BV FEDERAL RESERVE BANK OF ST. LOUIS YIELDS ON SELECTED SECURITIES AVERAGES OF DAILY RATES ENDED FRIDAY PERCENT 9.5 ----- PERCENT ----- 9.5 9.0 8.5 8.0 7.5 CORPORATE AAA BONDS 7.0 THREE-MONTH TREASURY BILL MARKET YIELD 6.5 6.0 5.5 5.0 MUNICI PAL BONDS 5t9K 4.5 DISCOUNT RATE 4.0 0 1 I I I I I I I I I I I I I I I I I I I 1 1 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 I I I I I I 7 21 4 18 11 15 15 29 29 13 13 27 27 10 10 24 24 JUL AUG SEP OCT 1972 NOV 8 22 55 19 19 DEC JAN 22 16 16 22 16 16 30 30 13 13 27 27 11 11 25 25 8 8 2222 66 20 20 33 17 17 31 31 14 14 28 28 FEB MAR JUL AUG APR MAY 1973 JUN LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGs SEPTEMBER 14, 1973 JULY AUG. SEP. 6 13 20 27 3 10 17 24 31 7 14 * 21 28 CORPORATE Aaa BONDS 3-MONTH TREASURY BILLS 3-5 YEAR GOVERNMENT SECUR1T1ES LONG-TERM GOVERNMENT SECUR1T1ES MUN1C1 PAL BONDS 38* 7.41 7.44 7.45 7.48 7.53 7.61 7.71 7.77 7.73 7. 64 7.62 7.94 7.78 8. 03 8. 17 8. 30 8. 70 8.88 8.71 8.62 8.80 9.03 7. 15 7.29 7.48 7.76 8. 02 8. 16 7.80 7.50 7.35 7.27 7.43 6. 44 6. 43 6.50 6.64 6.90 6.97 6.83 6.74 6.62 6. 45 6.50 5.34 5.40 5.37 5.48 5.59 5.58 5.47 5. 44 5.34 5. 18 N. A. * AVERAGES OF RATES AVAILABLE. ** BOND BUYER’S AVERAGE 'NDEX OF 20 MUNICIPAL BONDS, N.A. - NOT AVAILABLE http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SEP 1973 THURSDAY DATA. PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS SELECTED SHORT-TERM INTEREST RATES AVERAGES OF DAILY RATES ENDED FRIDAY PERCENT PERCENT 1i.0 r~ — 11.0 10.5 10.0 10.0 9.5 9.0 6.5 8.0 7.5 7.0 FEDERAL FUNDS RATE PRIME BANK LOAN RATE 6.5 6.0 COMMERCIAL PAPER 5.5 5.0 4.5 0 7 21 JUL 4 18 AUG 1 15 SEP 29 13 27 10 24 8 22 OCT NOV DEC 5 19 JAN 2 16 FEB 2 16 30 13 MAR APR 1972 27 11 25 8 22 MAY JUN JULY AUG. SEP. 6 13 20 27 3 10 17 24 31 7 14 * 21 28 SEPTEMBER 14. PRIME COMMERCIAL PAPER 4-6 MONTH FEDERAL FUNDS PRIME BANKERS’ ACCEPTANCES 90 DAY CD' S nets 8.75 8.90 9. 15 9.60 9.88 10.05 10.25 10.25 10. 45 10.38 10. 46 10.21 9.52 10.22 10.58 10.57 10.39 10.39 10.52 10. 79 10. 79 10.74 8.94 9.00 9.05 9,50 9.85 10.15 10.25 10.25 10.25 10.25 10.25 8.67 9.03 9.36 9.85 10.14 10.52 10.81 10.71 10.93 10.93 1 0. 90 * AVERAGES OF RATES AVAILABLE. FEDERAL FUNDS AND CD RATES ARE SEVEN-DAY AVERAGES FOR WEEK END ING WEDNESDAY TWO DAYS EARLIER THAN DATES SHOWN. CURRENT DATA APPEAR THE BOARD OF GOVERNORS’ H.9 RELEASE. CD DATA ARE SECONDARY MARKET RATES. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 17 AUG 31 14 28 SEP 1973 LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGs 1973 6 20 JUL 1973 IN PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS BORROWINGS FROM FEDERAL RESERVE BANKS ALL MEMBER BANKS 1913 IN THE NATION AVERAGES OF DAILY FIGURES B'LLIONS OF DOLLARS MILLIONS 2008 1916 2135 2558 2362 1487 BORROWINGS I I I I I I I II 5 19 BILLIONS of dollars 2 16 SO 13 27 11 25 6 20 8 22 3 17 31 14 28 14 28 11 FEB SEP OCT 1972 MAR 25 9 23 APR 6 20 4 18 JUN JUL 1 15 20 12 26 1973 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 12, 1973 BUSINESS LOANS BILLIONS OF DOLLARS ( COMMERCIAL AND INDUSTRIAL ) WEEKLY REPORTING LARGE COMMERCIAL BANKS SEASONALLY ADJUSTED BILL TONS OF DOLLARS 112 ~ COMPOUNDED ANNUAL RATES OF CHANGE — AVERAGE OF THE FOUR WEEKS ENDING _ SEPTEMBER.5. 1973 FROM THE FOUR WEEKS ENDING: — BUS I NESS — BUS I NESS LOANS LOANS ADJUSTED ~ JUL - JUN. 25.8 ■ FEB. __ SEP. 30.9 110 108 106 -BUSINESS LOANS ADJUSTED 1/ 104 102 32.4 100 98 96 94 MILLIONS BUSINESS BUS I NESS LOANS LOANS ApJUSTEpr BUSINESS LOANS 92 90 88 111,428 86 84 5 19 2 16 30 13 27 11 25 8 22 6 20 3 V 31 14 28 M 28 II 9 23 6 20 4 18 I 15 29 '2 26 1973 1972 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 5, 25 1973 1/ INCLUDES LOANS SOLD OUTRIGHT BY COAMERCIAL BANKS TO OWN SUBSIDIARIES, FOREIGN BRANCHES, HOLDING COMPANIES, AND OTHER AFFILIATES. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRFPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
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