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yvc/>1 L. D X\ TA. Week ending: September 13, 1972 Major revisions of Federal Reserve Regulations D and J become effective with the statement week beginning September 21. These changes are not intended to alter the stance of monetary policy, but rather are structural changes aimed at modernizing the two regulations. Regulation J primarily relates to the collection of checks by the Federal Reserve. The amendment to this Regulation requires all banks using the System's check collection facilities to pay for checks drawn on them the same day the Federal Reserve presents the check for payment. It is expected that this change will reduce Federal Reserve float by an estimated $2 billion and will cause a corresponding reduction in member bank reserves. Regulation D, which pertains to reserve requirements of member banks, will be restructured so that the same requirements on net demand deposits will apply to all member banks of equal size, regardless of their location. This change will lower reserve requirement ratios for most categories of deposits. The change will take place in two steps. Beginning in the statement week of September 21 through September 27, the percentages shown in column I of the table below will become effective, while in the following statement week, the percentages in column II will go into effect. Effective Statement Week Beginning * Sept. 21, 1972 Sept. 28, 1972 Amount of Net Demand Deposits I First $2 million or less Over $2 - $10 million Over $10 - $100 million Over $100 - $400 million Over $400 million 8% II 8% 10 10 12 16-1/2 17-1/2 13 17-1/2 12 The change in Regulation D plus the temporary waiver of penalties for banks suffering substantial reserve losses due to the Regulation changes, is estimated to free about $3.5 billion of reserves to member banks. This increase in reserves, coupled with the loss of reserves due to the amend ment of Regulation J, will add, on net, about $1.5 billion of reserves to the banking system. Open market operations can be used to neutralize the impact of this increase in reserves on the stance of monetary policy. ** * ** Based on deposits two weeks earlier. See July 1972 Federal Reserve Bulletin, pp. 626-630 and pp. 649-652 for further details of these Regulation changes. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Prepared by Federal Reserve Bank of St. Louis Released: September 15, 1972 2 MONETARY BASE 1/ MULTIPLIER 2/ AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED BY THIS BANK BILLIONS OF DOLLARS BILLIONS OF DOLLARS 96 _ COMPOUNDED ANNUAL RATES OF CHANGE. AVERAGE OF THE FOUR WEEKS ENDING -----SEPTEMBER 13, 1972 FROM THE FOUR WEEKS ENDING, - JUL. JUN. MAY -----APR. MAR. _ FEB. SEP. 12, 1972 14, 1972 10 12 1972 15 16 15 94 8.7 5.4 ' “ 92 MONETARY BASE 90 88 912 MILLIONS 86 LATEST DATA PLOTTED WEEK ENDING, SEPTEMBER 13, 1972 RATIO 2.9 RATIO 2.8 MULTIPLIER 2.7 2.6 2.6 r 2.5 RATIO — 2.4 2.55; 2.572 1-1.1.1 -4 18 JUL AUG 1 15 29 13 27 10 2-4 « 22 5 19 2 16 JAN FEB I 15 29 t2 26 ’0 2-4 7 21 5 19 2 16 30 13 27 LATEST DATA PLOTTED WEEK ENDING, SEPTEMBER 6, 1972 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 '968 “REVIEW" OF THIS BANK. 2/ RATIO OF MONEY STOCK (MI ) / MONETARY BASE. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS RESERVES AVAILABLE TO SUPPORT PRIVATE NONBANK DEPOSITS^ ALL MEMBER BANKS FEDERAL RESERVE CREDIT*/ AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED BILLIONS OF DOLLARS 31.5 31.0 30.5 BILLIONS OF DOLLARS 32.0 COMPOUNDED’ ANNUAL RATES OF CHANGE, AVERAGE OF _ - THE FOUR *EEKS ENDING - SEPTEMBER 13, 1972 FROM Z THE FOUR WEEKS ENDING: ~JUL. 12, 1972 11.6 ” Z JUN. 14, 1972 10.2 -MAY 10, 1972 9.2 - APR. 12, 1972 9.1 ~ - MAR. 15, 1972 8.5 - FEB. 16, 1972 10.0 Z_ SEP. 15, 1971 7.8 _ 31.5 31.0 30.5 30.0 29.5 RESERVES 29.0 1212. BILLIONS 28.5 28.0 I I 1 1 I I 0 84 - COMPOUNDED ANNUAL RATES OF CHANGE. AVERAGE OF ___ THE FOUR WEEKS ENDING _ SEPTEMBER 13. 1972 FROM THE FOUR WEEKS ENDING: JUL. —JUN. MAY _ APR. MAR. FEB. — SEP. 12, 1972 14. 1972 10, 1972 12, 1972 15,1972 16,1972 15, 1971 O.l 0.3 0.8 4.1 5.1 2.7 6; 2 82 FEDERAL RESERVE CREDIT _ 80 ~ 78 76 312 MILLIONS — 74 72 4 18 I I5 2* 13 27 OCT 1971 I0 24 NOV 8 22 5 19 2 JAN FEB LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 13, 16 I 15 29 12 26 10 24 7 21 5 19 JUN JUL 2 16 30 13 27 1972 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 DEPfisiTS AMONG CLASSES Or BANKS• http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS DEMAND DEPOSIT COMPONENT OF MONEY STOCK AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED billions of dollars billions of dollars BILLIONS 184.8 185.0 185.9 185.3 186.0 187.2 4 18 1 15 29 13 27 OCT 10 24 8 22 NOV 5 19 2 JAN FEB 1 18 15 29 12 28 10 24 1971 7 21 5 19 2 16 30 15 27 1972 LATEST DATA PLOTTED WEEK ENDINGt SEPTEMBER 6, 1872 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE. COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDINGt 9/8/71 1/5/72 2/9/72 10.3 1 1 .2 9.5 8.6 7.9 9.0 9. 1 13.6 10.5 8.9 8.0 9.4 9.4 3/8/72 4/5/72 5/3/72 8.7 7.4 6.7 8.5 8,7 4.9 4.7 7.6 7.9 4.9 8,5 8.7 6/7/72 7/5/72 10.3 10.0 12.7 TO THE AVERAGE OF FOUR WEEKS ENDINGt 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 9/72 8/72 S/72 3/72 7/72 5/72 9/72 6/72 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0.8 2.7 4. 1 4. 1 4,3 4.3 5.4 5.7 PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS MONEY STOCK AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED BILLIONS OF DOLLARS BILLIONS OF DOLLARS 239. 7 240. ! 240.9 240.5 241 .2 242.5 j i nciv is i nc rnuw DECEMBER '66 TO DECEMBER ‘71 4 18 I 15 29 IS 27 10 24 OCT 1971 8 22 NOV 5 19 2 18 JAN FEB t 15 29 12 26 10 24 7 21 5 19 2 16 30 IS 27 1972 LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 6, 1972 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE. COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS END 1NGt 9/8/71 1/5/72 2/9/72 10.0 11.1 9.4 8.7 8. 1 8.8 8.8 13.4 10.2 9. 1 8.2 9. 1 9.0 3/8/72 4/5/72 5/3/72 6/7/72 8.7 7.8 7.0 8.4 8.4 5,3 5.0 7.2 7.4 5.5 8. 1 8.2 9. 1 8.9 7/5/72 TO THE AVERAGE OF FOUR WEEKS ENDING. 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 9/72 8/72 5/72 3/72 7/72 5/72 9/72 6/72 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1.7 3.4 4.7 4.6 4.8 4.8 5.6 5.8 10.9 PREPARED 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 7 21 4 18 JUL AUG 1 15 29 15 27 10 24 OCT 8 22 NOV 5 19 2 16 JAN FEB I 15 29 12 26 10 24 7 21 S 19 JUN JUL 2 16 SO 13 TT LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 6, 1972 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: 9/8/71 T/5/72 2/9/72 3/8/72 4/5/72 5/3/72 6/7/72 16.5 17.0 15.9 14.9 14.9 15.0 14. ! 13.9 19.9 16.4 14.4 14.5 14.6 13.4 13.2 14.2 12.2 12.9 13.4 12.2 12.1 8.5 10.9 1 1 .9 10.8 1 1.0 1 1 .8 12.9 1 1.3 1 1.4 15.0 12.2 12. 1 10.8 1 1 . 1 7/5/72 TO THE AVERAGE OF FOUR WEEKS ENDING. 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 9/72 8/72 5/72 3/72 7/72 5/72 9/72 6/72 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9.2 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 540 530 520 MONEY STOCK PLUS TOTAL TIME DEPOSITS 510 500 490 480 MONEY STOCK PLUS NET TIME DEPOSITS 90K 4 IS 1 rs 29 15 2T 10 24 OCT 1971 S 22 NOV 5 19 2 JAN FEB IS I 15 29 12 2« 10 24 5 19 T 21 2 = 470 ■= 460 E 450 IS 50 13 27 1972 LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 6, 1972 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS1 H.6 RELEASE. ** M* IS DEFINED AS* CURRENCY, DEMAND DEPOSITS PLUS NET TIME DEPOSITS CSEE PAGE 6). MONEY STOCK PLUS NET TIME DEPOSITS (M2) COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING* 9/8/7! 1/5/72 2/9/72 8.9 10.0 10.2 9.7 9.8 9.8 9.8 9.9 14.9 13.6 1 1.9 1 1.6 1 1.3 1 1 . 1 1 1.0 13.7 11.2 11.0 10.8 10.7 10.6 3/8/72 4/5/72 8.6 9.4 9.5 9.6 9.7 8.7 9. 1 9.3 9.5 5/3/72 6/7/72 7/5/72 10.3 10.2 10.2 10.0 10.0 10.0 TO THE AVERAGE OF FOUR WEEKS ENDING* 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9/72 8/72 5/72 3/72 7/72 5/72 9/72 6/72 PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS K 8 CERTIFICATES OF DEPOSIT LARGE COMMERCIAL BANKS WEDNESDAY FIGURES SEASONALLY ADJUSTED BILLIONS OF DOLLARS 7 21 I IS 29 15 27 10 24 OCT 1971 NOV S 22 5 19 2 JAN FEB 16 I BILLIONS OF DOLLARS 15 29 12 M 10 H 7 21 5 19 JUN JUL t It 50 15 ff I97H LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 6, 1972 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE. NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF 9100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONEY AND TIME DEPOSIT DATA 1972 JULY 5 12 19 26 AUG. 2 9 16 23 30 SEP. 6 13 20 27 CERTIFICATES OF DEPOSIT BILLIONS NET TIME DEPOSITS* M2 m 37.4 37.3 38.2 38.5 38.6 38.6 38.8 39.7 40.4 39.8 255.7 255.0 255.3 255.9 256.5 257.0 257.7 257.9 258.6 259.5 493.7 495.8 495.0 495.4 496.2 497.2 498.6 498.4 499.8 502.0 * SEE FOOTNOTE PAGE 6. K8* 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 395 r-------- ---------- -------- BILLIONS OF DOLLARS —------------ ------- =3 395 CREDIT PROXY ADJUSTED 1/ CREDIT PROXY 4 18 I 15 20 13 27 10 24 OCT NOV 8 22 3 19 2 10 JAN FEB 1 13 29 12 20 10 24 7 21 5 19 JUN JUL 2 10 30 13 27 1972 LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 6, 1972 CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE. v iLS^BANra?** iSIi http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 9 16 23 30 6 "«"■ EUB°MLL*' BILLIONS CRED1T PROXY CREDIT PROXY ADJUSTED 383.4 384.0 385.7 384.3 386.0 386.9 387.5 388.2 389.8 388.7 390. 1 390.9 Of COMPOUNDED ANNUAL RATES OF CHANGE. AVERAGE OF THE FOUR WEEKS ENDING SEPTEMBER 6. 1972 FROM THE FOUR WEEKS ENDING. CRED1T CRED1T PROXY PROXY ADJUSTED JUL. JUN. MAY APR. MAR. FEB. SEP. 5. 7, 3, 5. 8, 9. 8. 1972 1972 1972 1972 1972 1972 1971 10.7 8. 1 10. 1 10.4 ! 2.0 11.8 10.7 11.2 8.5 10.5 10.6 12.2 11.7 10.7 PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS YIELDS ON SELECTED SECURITIES AVERAGES OF DAILY RATES ENDED FRIDAY PERCENT PERCENT CORPORATE AM BONDS PRIME COMMERCIAL LOAN RATE BONDSWK DISCOUNT RATE TREASURY YIELD 2 16 30 13 27 10 24 AUG 8 22 9 19 S IT 31 14 28 I! JAN SEP 23 10 24 FEB t II 90 14 » II H 7 21 APR MAY JUL « 22 AUG LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING* SEPTEMJER 15, 1972 1972 JULY 7 14 21 28 4 1 1 18 25 SEP. I AUG. 8 15 X CORPORATE AM BONDS 3-MONTH TREASURY BILLS 3-5 YEAR GOVERNMENT SECURITIES LONG-TERM GOVERNMENT SECURITIES MUNICIPAL BONDSMK 7.20 7.20 7.20 7.22 7.22 7.20 7. 1 9 7.17 7. 16 7. 19 7.23 4.05 4.03 3.92 3.93 3.79 3.85 3.89 4. 1 1 4.46 4.69 4.70 5.86 5.85 5.84 5.87 5.85 5.85 5.87 5.94 6. 1 1 6.19 6.19 5.61 5.59 5.56 5.54 5.51 5.48 5.53 5.56 5.62 5.66 5.67 5.43 5.44 5.41 5.35 5.32 5.24 5.22 5.32 5.38 5.39 N.A. 22 29 !wB0ND6BUYER'^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 COMMERCIAL PAPER 4-T0-6 MONTH FEDERAL FUNDS RATE 2 l« 90 13 27 10 24 AUG 8 22 3 IS _LLLi 3 17 31 Li Ll I I I I H 28 II 25 10 24 JAN SEP FEB 7 21 APR 3 19 MAY * 18 SO 14 28 II 23 JUL AUG 8 22 LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. SEPTEMBER 15, 1972 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1972 JULY 7 14 21 28 AUG. 4 1 1 18 25 SEP. 1 8 15 * 22 29 PRIME COMMERCIAL PAPER 4-6 MONTH FEDERAL FUNDS PRIME BANKERS’ ACCEPTANCES 90 DAY CD'S imt 4.88 4.88 4.88 4,80 4.73 4.70 4.85 4.88 4.95 5.09 5.13 4.69 4.53 4.43 4.47 4.63 4.78 4.91 4.69 5. 13 4.44 4.72 4,75 4.75 4.75 4.68 4.63 4.63 4.63 4.75 4.75 4.75 4.88 4.78 4.93 4.89 4.80 4.72 4.70 4.76 4.84 4.92 4.98 5.02 K AVERAGES OF RATES AVAILABLE. FEDERAL FUNDS LAST FIVE DAYS AVAILABLE *ea DATA ARE SECONDARY MARKET RATES. WEEKLY AVERAGES END ING 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 NET FREE RESERVES 0.8 - 1.2 - EXCESS RESERVES -0.4 7 21 41* I JUL AUG SEP IS 29 IS 27 10 24 OCT NOV 8 2* DEC 3 19 2 18 JAN FEB JUN MAR JUL 1971 LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 13. 1972 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MILLIONS 1972 JULY 5 12 19 26 AUG. 2 9 16 23 30 SEP. 6 13 20 27 EXCESS RESERVES 328 223 147 79 242 130 254 131 280 835 74 BORROWINGS 312 227 173 172 363 287 382 350 477 838 149 FREE RESERVES — - 16 4 26 93 121 157 128 219 197 3 223 PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
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