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/ fa Week ending: LIBRARY The money stock has risen at a 6.3 per cent annual rate since the four weeks ending March 18, a period of six months (page 5). By comparison, this magnitude rose little on balance from June 1969 to February 1970. The demand deposit component of money has risen at a 5.9 per cent rate over the past six months (page 4) and the currency component at a 6.9 per cent rate. Time deposits at commercial banks have increased at a 22 per cent annual rate during the past six months and even more rapidly, at a 33 per cent rate, since the four weeks ending July 15, a period of two months (page 8). These rapid rates reflect both lower market interest rat^s and two relaxations of Regulation Q ceilings on January 21 and June 24. By comparison, time deposits declined at a 5.4 per cent rate from December 1968 to February 1970. The outstanding volume of large nego tiable certificates of deposit has increased from $10 billion on February 4 to $21 billion on September 16 (page 6). Since the change in Regulation Q on June 24, there has been approximately an $8 billion increase in these CD's. lift II mber 23r 1970 Reflecting both the more rapid monetary expan sion and a slowing in demand for loan funds, substantial declines in short-term market interest rates have occurred since the beginning of the year (pages 10 and 11). Yields on 4- to 6-month commercial paper declined from about 9 per cent in early January to 7.25 per cent in the three days ending September 23. The prime rate, the interest rate charged by commercial banks on loans to highest grade business customers, has usually followed signi ficant movements in short-term market rates and responds to the same supply and demand forces. This rate was lowered in March from 8-1/2 per cent to 8 per cent and further to 7-1/2 per cent in September. Member bank borrowings from the Federal Reserve have declined from about $1.1 billion a year ago to about $900 million last spring and to an average of $520 million for the last six weeks (page 12). In general, this borrow ing has declined in response to narrowing of the spread between short-term market interest rates and the discount rate, and the greater ability of banks to obtain time deposit funds. - Total commercial paper outstanding declined from an average of $39 billion in June to an average of $36 billion in August (page 6). In contrast, commercial paper more than doubled from June 1968 to June 1970. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Prepared by Federal Reserve Bank of St. Louis Released: September 25, 1970 MONETARY BASE H FEDERAL RESERVE CREDIT [2 Averages of Daily Figures Billions of Dollars Annual rates of change, average of four weeks ending September 23, 1970 from Billions of Dollars Seasonally adjusted by this bank four weeks ending: Monetary Base ~T July 22, 1970 + <f.. / June 24, 1970 -h 2- / May 20, 1970 -f" S-S Apr. 22, 1970 -hC,-? Mar. 25, 1970 f'7-‘7 Feb. 25, 1970 Credit Monetary Base f-7-/ 1957-1969 ~ _ - 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 1968 Review of this bank. Monetary -i-----1 3 Base A? S\ /S, j? I <*6 i ___ ----- Latest data plotted week ending September 23, 1970 17 July Aug. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sept. 1 15 29 12 26 10 24 7 21 Defined to include holdings of securities, loans, float, and "other" assets, adjusted for reserve requirement changes and changes i ___requirements due to shifts in deposits among -----classes of banks. 4 18 4 18 1 15 29 13 27 May 10 24 June 8 22 30 14 Sept. YH'7'7 TO 7?7 F.R. Credl 1 I 4 7 9DO tts 7y flS79 <£ 7 ______7 ZJfA3 b 28 11 Prepared by Federal Reserve Bank of St. Louis 25 (*&, a97 av-l 6 7?i7. 9 23 6 20 RESERVES All Member Bonks in the Notion Averages of Daily Figures Seasonally Adjusted Billions of Dollars Billions of Dollars 30.5 Annual rates of change, average of four weeks ending September 23, 1970 from four weeks ending: 30.0 July 22, 1970 June 24, 1970 May 20, 1970 Apr. 22, 1970 Mar. 25, 1970 Feb. 25, 1970 29.5 29.0 28.5 28.0 28.0 27.5 27.0 26.5 jt_ TOTAL -|4 I RESERVES JTol(h IS £7-9 J AX XT. 3 26.0 25.5 * Break in series due to changes in Regulations M and D effective October Current data appear in the Board's E.9 release. 25.0 _ , _ , , ,. September 23, 1970 Latest data plotted week ending: 1 24.5 0 9 23 6 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 3 17 1 1969 15 29 12 26 Nov. 10 24 7 21 Jan. 4 18 4 18 1 15 29 13 27 10 24 8 22 July June 1970 5 19 Aug. :: 16 30 Sept. 14 28 11 25 Nov. Prepared by Federal Reserve Bank of St. Louis 9 23 6 20 1971 DEMAND DEPOSIT COMFONENT OF MONEY STOCK Averages of Daily Figures Seasonally Adjusted Billions of Dollars 174 |"1 : I I v-r-T-i-T- Billions of Dollars Annual races of change, average of four weeks ending: 1/14/70 2/18/70 3/18/70 4/15/70 5/13/70 6/17/70 7/15/70 to average of four weeks ending 3/18/70 4/15/70 5/13/70 6/17/70 7/15/70 8/19/70 9/16/70 9 + + + + 4 7.8 6.5 5.1 5.6 + 2.3 + 4.1 5^ 9' 4.6 Latest data plotted week ending: September 16, 1970 i i i r i i i i i i i-i-L 1 l I I I l -i 20 3 17 1 13 29 12 26 10 24 7 21 4 18 23 6 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis + 4.2 4 18 1 15 29 13 27 10 24 June 8 22 July 5 19 2 16 30 14 28 11 25 1969 Prepared by Federal Reserve Bank of St. Louis 9 23 6 20 li&r MONEY STOCK Averages of Daily Figures Seasonally Adjusted of Dollars 219 ii i i m: ix 218 1/14/70 217 216 215 214 213 212 211 2/18/70 3/18/70 4/15/70 5/13/70 Billions of Dollars 218 ending: 17/70 7/15/70 .» ' 215 - + + + + + 214 ~ 3.9 5.0 2.2 2.9 2.7 3.4 • + + + + + 14.8 7.8 7.2 6.2 ■ 6.4 TT + + + + 213 8.4 7.4 6.0 6.4 - 0.3 + 0.4 + 2.2 /-=?.? + L.3 -t +■ 210 217 - 216 . to average of four weeks ending: 3/18/70 4/15/70 5/13/70 6/17/70 7/15/70 8/19/70 ■ 9/16/70 219 T" n 1 ! 1 1 ! II + 3.5 + 4.9 212 + 4.7 , J-S'.l „ 211 -i-i-2 ~1 210 —1“ 1 . . 209 209 n T ‘ 208 ___ 208 i. 207 1 k J 206 4- 204 lo3 207 — 206 / l" — 1 ' i \ 205 L Jt>7. 7 205 J /r> f vt 1 t sf t \ s n •N A 204 I 203 a V 202 202 201 200 • — 201 200 ., 199 , u \ or ■V' \ & Ji £ — 4“ -r | — _ 198 199 198 /9 7<3 a m.<=i 197 196 - 195 £ol/-S' n £(p fid-? <3 C' fo ■ £ ? *05.9 lb Aol-I < 194 197 196 195 194 193 193 - — — — ~ 192 192 190 189 0' 191 _4_ 191 _ Current data appear in the Board's H.6 release. 190 j ! I I IT PI I 1 I I 1 I II II II I I I I I! ITT Latest data plotted week ending: September 16, 1970 I 1.1JL i i i i j i i i i ............................ ............................... ... mini i-i 3 17 1 15 29 12 26 10 24 7 21 4 18 9 23 6 20 Aug. Sept. Oct. Nov. Dec. Jan. Feb. July 1969 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 189 ’ 4 ‘ 18 Mar. 1 - 29 13 2 7 10 24 8 22 15 Apr. May June July 1970 5 19 Aug. 2 16 30 14 28 Sept. Oct. 11 25 Nov. ' Prepared by Federal Reserve Bank of St. Louis 9 23 Dec. 6 20 Jan. 1971 0 li< CERTIFICATES OF DEPOSIT Jl AND COMMERCIAL PAPER & Outs 5© racing Volume of Dollars Billions of Dollars 50 50 45 45 40 40 35 35 30 30 Commercial Paper 25 25 20 20 n-ss 15 15 Certificates of Deposit 10 10 5 Negotiable time certificates of deposit in denominations of $100,000 or more at large commercial banks. Monthly averages of Wednesday figures. Data prior to July 1965 estimated by the Federal Reserve Bank of St. Louis. Total volume of commercial paper outstanding. Averages of current and preceding end-of-month seasonally adjusted figures. 0 Latest data plotted: August, 19 70 1965 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1966 1967 1968 1969 1970 Prepared by Federal Reserve Bank of St. Louis 1971 7 RATES ON CERTIFICATES OF DEPOSIT LL AND COMMERCIAL PAPER 13 12 11 10 9 8 Commercial Paper 7 6 Certificates of Deposit 5 4 3 1/ Average new issue rate on 6 month certificates of deposit of $100,000 or more through June 1970. _ Since June data plotted are 90 day secondary market rate. ' 2/ Prime commercial paper, 4- to 6- months maturity. Averages of dealers' daily offering rates. 2 Latest data plotted: ■» August, 19 70 MM............... I I M I I i I L J..1. 1965 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1966 1967 1968 1969 1970 Prepared by Federal P.eserve Bank of St. Louis 1971 MEMBER BANK DEPOSITS SUBJECT TO RESERVE REQUIREMENTS (CREDIT PROXY) Averages of Doily Figures llions of Dollars Seasonally Adjusted 1 Annual rates of change, average of four weeks ending Sept. 16, 1970 from 1_ four weeks ending: ■-July 15, 1970 t June 17, 1970 Credit Proxy + 3l4.T + £.33 I May 13, 1970 4- Credit Proxy Adjusted +■ ^3" | Apr. 15, 1970 t j| Mar. 18, 1970 + 1^,0 " Feb. 18, 1970 + Billions of Dollars CREDIT PROXY ADJUSTED +• I 3 ■ 3. H,L> i- ja. o 2J Total member bank deposits plus nondeposit items is sometimes referred to as the "adjusted credit proxy." Member bank deposit figures are seasonally adjusted, but nondeposit items are included in the series on a seasonally unadjusted basis due to the , short period for which most items are available. Nondeposit items included in the series are as fol- iSHSA - — — — — ~ _ branches and to branches in U.S. territories and pos sessions; Euro-dollars borrowed directly from for- . eign banks or through brokers and dealers; com mercial paper issued by bank holding companies or in pools of loans sold under repurchase agreement to other than banks and other than banks' own affiliates or subsidiaries. 9 23 6 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 3 17 1 15 29 12 26 10 24 7 21 4 18 4 18 1 15 29 13 27 101 24 May June 8 22 July 5 19 Aug. 2 16 30. 14 28 11 25 9 23 6 20 YIELDS ON SELECTED SECURITIES Averages of Doily Rofss Ended Friday Per Cent 3—Month 3-5 Year Treasury | Bill ' ' 10.50 Per Cent 11.00 Long-Term Corporate Aaa • 10.50 10.00 10.00 ___ Mr ____7$ ... MJt prime Conanerclal — ■ — Corporate Loan Rate Aaa Bonds 3-5 Year • Govt. Sec. "Three-Month > j Treasury Bill _Market Yield Discount Sate Latest data plotted are averages 11 25 8 22 5 19 Sept. * A1™)SAGES OF RATES AVAILABLE http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 1969 17 31 14 of 23 rates available for the week ending:! Sept- 25, 1970 12 26 9 23 6 20 6 20 3 17 Apr. 1 15 29 12 26 10 24 May June July 1970 7 21 Aug. 4 18 2 Sept. . 16 30 13 27 Prepared by Federal Reserve Bank of St. Louis 11 25 4 22 Jan. 11 SELECTED SHORT-TERM INTEREST.RATES Averages ofDaily Rates Ended Friday Per Cent 12.00 11.50 1~ /9 -r-Tui Prime Commercial’' Prime Bankers' , 90 DayPaper Acceptances CD'S ** 4-6 Month i-s* j f.35 7,0 U no oi 3/ t ; /y 11.00 o.i ; 0? ' <crt 4 // 7 /? 10.50 S/S f.O O %‘O0 V.aa 7-7 o n.so SS *1 1,3 8 1.2,5 133 7'33 7' 2t no5 1-13 133 1,10 ! a. j ! i . ! . 10.00 1 i i.n..rm'n'TTTi TTTTTTTTirn ■H tv/co 1.03 1.7J tr.St) (j-3.5 7-yy 75 & 7.J9 j 1 i. 12.00 1 Federal . Funds 7 95 7Y5 7' TO 113 7-55 Per Cent T 11.50 11.00 — - I0.0& s.n 10.50 10.00 ■ ] 9.50 9.50 - ] 9.00 9.00 1 1 (joinraerciai raper 4-to-6 Month ' zmxnn-| 8.50 8.50 \ j y1 1 /■c f /! l ’T h 8.00 ft / > -< rv -/1 /.j *1 SIV _ j j v__ , _ _L_ _ IT • V. /u y 1,25 1 ! * 1 1I Feeiera i run ds * 7.00 - !_ * at I 6.50 1 T ' z ft July Aug. ■ Sept. Oct. Nov. Dec. Jan. Feb. Mar. * AVERAGES OF RATES AVAILABLE; FEDERAL .FUNDS LAST FIVE DAYS AVAILABLE . i is 6.00 i Apr. 5,00 May June 1969 data are secondary market rate, weekly averages ending Digitized ** for FRASER WEDNESDAY TWO DAYS EARLIER. CURRENT DATA APIEAR IN http://fraser.stlouisfed.org THE BOARD'S H. 9 RELEASE. Federal Reserve Bank of St. Louis 6.50 J ~r ~r _Latest data plotted are averages’of rates available for the week ending: Sent. Sept. 25. 25 1970 . _•■ T uiiJcount Kate u j T 6.00 0 7.50 v. *V 7.00 July 1970 Aug. Sept. - Oct. 0 Nov. Prepared by Federal Reserve Bank of St. Louis .1 ■ i 8.00 _ *<. 7.50 v V \* * Tj VA ' :n. Dec. Jan. 1971 BORROWINGS AND EXCESS RESERVES All Member Banks in the Nation Averages of Daily Figures Millions of Dollars 12 Millions of Dollars -I-' 1 EXCESS q RESERVES /S' 3.3° 3,000 2,800 2,600 J? s ix /? 2,200 2,600 /cTJ jvt | ^ 2,200 , J3 S> k! y-fL. 2,000 2,000 9 \3i>? /h 1,800 a3 A i.S' -/so 1,600 Borrowings 1,400 1,200 1,000 Excess Reserves 1,200 Net Free Reserves 1,400 —r 1,800 2,000 2,000 2,200 - 2,400 2,400 2,600 r-g: Sept. 23, 1970 3,000 15 29 July Aug. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sept. Oct. 1969 12 ■ 26 10 Kcre. 24 Dec. 7 21 Jan. ’ 4 18 Feb. 4 18 Mar. 1 15 Apr. 29 13 27 10 May June 24 8 22 July 1970 5 19 Aug. 2 16 30 Sept. 14 28 11 Oct. 25 Nov. 9 23 Dec. 6 20 Jan. 1971
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