bluebooks · February 7, 1966

Bluebook

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1

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2

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Content last modified 6/05/2009.

CONFIDENTIAL (FR)

MONEY MARKET AND RESERVE RELATIONSHIPS Money markets Recent developments.

After exhibiting considerable tautness

over the first half of January, the general tone of the money market became somewhat less tight after mid-month.

to this result.

Two developments contributed

First, there was a sharp swing from a large deficit

to a small surplus in the basic reserve position of major New York City banks, in response to some seasonal loan repayment, some liquidation Second, there

of investments and an enlarged net inflow of CD money.

has been a continued strong demand for Treasury bills, which has also tended to spill over into other short-term debt markets. The recent abatement of pressures in the central money market has been reflected in some easing of the Federal funds rate, which had held mainly at 4-5/8 per cent during the first half of January, and some reduction in dealer financing costs.

Treasury bill rates and other

short-term rates extended their earlier advance through mid-January, but since then bill rates have receded from their peaks.

CD rates

posted by several major banks in New York have recently tended to stabilize at 5 per cent on maturities of around 3 months. In contrast with the lessening of money market pressures, yields on intermediate- and long-term Treasury securities have risen recently after declining in the first half of January.

These yields

are currently close to their peaks previously reached around the turn of the year.

Yields in other sectors of the capital market have

shown small mixed changes recently, with municipals relatively stable

but upward pressures developing in the corporate market.

FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, where available, weekly averages of daily figures; amounts in millions of dollars) Money Market Indicators Period

Period 1965--Jan. Feb. Mar. Apr. May June July Aug.

Free

Borrow-

Reserves

ings

115 26 - 50 -133 -159 -178 -178 -167

303 406 395 471 490 534 526 549

Sept.

-144

Oct. Nov. Dec.

-135 - 79 - 24

Federal 3-monh Funds TreasFunds Rte ury Rate Bill

Bond Yields

Flow of Reserves. Bank Credit and Money

U.S.

Corporae MuniciNew pal (20 yr. Issues pal Aaa) (Aaa) bond)

Gov't.

Non-

borrowed

Reserves - 25 +108 + 95 +140 - 21 +147 + 32 -115

Total Bank Time ReCredit Money Deposits e e Supply a eo

3.85 3.96 4.04 4.09 4.08 4.01 4.07 4.11

3.81 3.93 3.93 3.93 3.89 3.80 3.83 3.84

4.19 4.21 4.20 4.20 4.21 4.21 4.21 4.25

4.42 4.41 4.45 4.46 4.51 4.58 4.61 4.63

2.97 2.97 3.09 3.09 3.09 3.15 3.16 3.16

552

3.95

3.92

4.30

4.67

3.25

-

490 418 452

4.05 4.09 4.28

4.02 4.08 4.37

4.32 4.40 4.50

4.69 4.72 4.85

3.31 3.34 3.39

+ 98 + 58 +361

+ 56 - 45 +333

+2,592 +1,300 +2,000 + 759 + 100 +1,900 +2,141 +1,700 +1,500

- 51

431

4.33

4.58

4.51

4.85

3.40

+107

+ 98

+1,925 +1,100 +1,000

1965--Dec. 15

75

486

4.50

4.36

4.52

4.86

3.40

-

100 +

300

22 29

14 - 80

218 546

4.40 4.62

4.45 4.46

4.52 4.52

--- 3.40 3.40

+1,300 + + 800 +

100 500

5 12 p

-246 100

562 590

4.60 4.58

4.51 4.56

4.52 4.50

4.82 4.89

3.40 3.40

+1,000 + - 600 -

400 200

19 p

-

21

218

3.55

4.62

4.50

4.84

3.39

-

800 +

400

26 p

- 34

352

4.52

4.58

4.52

4.85

3.39

-

400 +

200

107 - 93 -132 - 36

295 467 505 443

3.47 4.05 4.05 4.30

Averages 3.55 3.95 3.96 4.48

4.19 4.27 4.32 4.50

4.44 4.58 4.68 4.84

3.09 3.16 3.26 3.39

1966--Jan. p

1966--Jan.

Year Year Aug. Dec. 1/ 2/

1964 1965 1965-Nov. 1965 1965-Jan. 1966

4

+ 92 +181 +151 +216 - 51 +169 + 25 - 49 --

+1,902 +2,023 +1,782 +2,623 + 772 +1,802 +1,414 +1,608 +

+ 300 - 300 + 600 + 800 -1,100 +1,800 + 700 + 200

+2,200 +2,200 +1,100 +1,400 +1,100 +1,300 +1,700 +2,500

249 +1,600 +1,500

Annual Rates of Increase+ 4.6 + 4.2 + 7.6 + 4.3 +12.8 + 4.2 + 5.1 + 9.1 + 4.8 +16.1 + 0.5 - 0.5 + 6.8 + 5.9 +17.2 +11.8 +10.4 +10.1 +10.3 +13.1

Base is average for month preceding specified period. Time deposits, adjusted, at all commercial banks; differs from time deposit required reserve series in Table A-2 since latter includes only member banks.

p - Preliminary.

January 28, 1966.

-2-

CONFIDENTIAL (FR)

In the four statement weeks ending January 26, net borrowed reserves averaged almost $50 million, but week-to-week fluctuations have been exceptionally large.

Member bank borrowings averaged $430

million over this period, about the same as in December.

Borrowings

were very high in the first half of the period, but dropped sharply after mid-month. Prospective developments.

While the general economic outlook

and associated credit demands suggest that debt markets may come under considerable pressure in the months ahead, the near-term outlook indicates some offsetting influences at least in the shorter-end of the market, particularly if some seasonal bank loan repayments and demands for shortterm securities continue in evidence.

The Treasury's current combination

refunding-pre-refunding operation can also be expected to add to the seasonal demand for bills.

The rate impact of this additional demand

may by now have been discounted by the market, however, as indicated by the decline of the 3-month bill to 4.56 per cent on January 27, the day after the financing was announced. Assuming that net borrowed reserves average around $100 million during the next four weeks, the 3-month bill rate may average within a 4.55-4.65 per cent range, a set of money market conditions likely to be construed in the market as consistent with an even keel policy. Departures

CONFIDENTIAL (FR)

-3-

from this rate range are distinct possibilities, however, as markets continue to adjust to a new structure of interest rates in an environment marked by uncertainties relating to Viet Nam--which may give rise to short-run interest rate fluctuations over a wider range than has generally characterized recent years. In early February, during the period of Treasury financing and heavy System buying for reserve purposes, the 3-month bill may remain in the lower end of the range noted.

Afterwards the rate might tend to

rise, although that will be strongly influenced by the strength of business credit demands and the consequent aggressiveness with which banks are led to bid for CD money. Treasury financing operations may exert less upward pressure on short-term markets over the remainder of the current fiscal year. The Treasury has indicated that it would need to raise only $500 million of additional new cash in the market, while $7.5 billion of tax bills will be retired in March and June (typically about two-thirds of these are turned in for taxes). In the long-term market, the outlook points to upward pressures on bond yields.

The new 5 per cent coupon offered by the Treasury for

a 4-3/4 year issue may induce some further swapping out of longer-term Governments.

It may also attract investor funds that might otherwise have

gone into private long-term markets, either directly or through financial intermediaries.

The key factors in the bond market, however, will be the

size of the corporate calendar, which appears to be building up, and the extent to which banks make further portfolio adjustments in Governments and municipals.

CONFIDENTIAL (FR) Reserve flows, bank credit, and money

Recent developments.

Total and nonborrowed reserves of banks

continued to rise in January, but the annual rates of increase--estimated at 5.3 per cent and 5.9 per cent, respectively--were lower than the exceptional December rates.

The expansion in reserves supported a 10 per

cent growth in total member bank deposits, slightly less than in December. U.S. Government deposits showed a substantial increase during the month as the Treasury raised about $3 billion in new cash.

Private time and

savings deposits increased less in January than in December.

Private

demand deposits reached a peak in early January and have since declined; their increase in the month as a whole was less than in December. Prospective developments.

During the first two statement weeks

ending in February, according to projections, the System will have to supply about $1 billion in reserves through open market operations to offset reserve drains principally from float and currency movements. In the following weeks the System is likely to be a small net seller of securities of about half that amount. Assuming business loan demand remains basically strong, nonborrowed reserves in February may increase at a higher rate than in January, though still below December.

Banks may demand more reserves

next month partly because excess reserves had been worked down to unseasonably low levels in January.

CONFIDENTIAL (FR)

-5-

Over the next few months, private demand deposits may increase at an appreciably slower pace than the 6.4 per cent rate of January, perhaps between 4 and 5 per cent.

In February, Government deposits are

expected to rise further as a result of growing tax receipts and this will tend to restrain private deposit growth in that month. Time and savings deposit growth, which was relatively slow in January, could pick up somewhat in February if the very recent increased availability of CD money to large city banks continues.

But

the new Treasury offering of a 4-3/4 year note with a 5 per cent coupon could make it harder for banks to attract and retain savings deposits. All in all, no substantial change is likely in the annual rate of increase for time and savings deposits in the months ahead from the 10 per cent December-January average. The developments described above would imply a growth rate over coming months in the daily average bank credit proxy somewhat below the 9 per cent average of last year.

Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures)

Period

Excess reserves

Member bank borrowin2s

re v i s 'e d

As

.Y.

Free

reserves -

to

date

Y

Policy periods 12/19/62 - 5/22/63

481

179

302

5/22/63 - 7/31/63

437

276

161

7/31/63 - 8/19/64

407

292

115

8/19/64 - 2/3/65

413

325

88

As first published each week

As expected at conclusion of each week's open market operations

2/3/65 - 3/24/65 3/24/65 - 1/26/66 Monthly (reserve weeks ending in): 1965--January February March April May June July August September October November December

386 368

405 493

- 19

418 432 345 338 331 356 348 382 408 355 339 428

303 406 395 471 490 534 526 549 552 490 418 452

115 26 - 50 -133 -159 -178 -178 -167 -144 -135 - 79 - 24

1966--January p

380

431

- 51

3 10 17 24

379 428 317 230

486 334 489 361

-107 94 -172 -131

-118 62 -198 -163

-118 37 -189 -177

1 8 15 22 29

424 455 561 232 466

534 478 486 218 546

-110 - 23 75 14 - 80

-153 9 71 17 - 79

-147 20 57 4 - 69

5 12 p 19 p 26 p

316 690 197 318

562 590 218 352

-246 100 - 21 - 34

-179 88 - 21 - 34

-174 106 1 - 50

Weekly 1965--Nov.

Dec.

1966--Jan.

p - Preliminary.

-125

Table A-2 AGGREGATE RESERVES AND RESERVE RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) I Period

Total reserves

Nonborrowed reserves

_I_

Reauired reserves t V tve of deposit Demand Time Private + Private U. S. 7

U

Annually: 1963

S

Gov't. Gvt

4

Reserve related measures Total member Money bank deposits supply (credit) 1/ supply 3.8

3.5

+15.4

+ 1.7

+ 2.4

7.5

1964

4.6

+12.8

+ 3.1

+ 3.2

7.6

4.3

1965

4.2

+16.3

+ 2.4

+ 3.5

9.1

4.8

I

Policy Period: 8/64 - 1/65

+ 4.9

+ 5.2

+15.3

+ 1.6

+ 2.6

+ 8.1

+ 4.4

1/65 - 3/65

+ 9.4

+ 5.8

+15.1

+ 6.0

+ 2.5

+10.4

+ 1.1

3/65 - 11/65

+ 2.2

+ 2.4

+15.7

+ 0.6

+ 3.5

+ 8.0

+11.8

+13.1

+ 9.1

+11.8

+ 7.6

+10.4

+ 5.1 +10.1

+ 4.8 + 2.8

+ 1.5 +15.1

+14.7 +13.1

+ 5.3 - 2.6

- 1.7

+ 9.8 + 4.9

+ 2.3

+ 3.6

+ 5.2 +10.3

+ + + -

1.4 6.2 5.4 8.0 1.2

+21.6 +19.8 +10.3 +13.5

+ 0.2

+ 8.3

+11.4 +14.5 +24.4 +13.5 +18.7 +14.4 +11.0

+ 9.0 +14.8 - 1.3 + 7.8 + 0.7 - 7.1 -11.1 + 8.1 - 6.9 +10.9

- 2,6 - 2.0 + 6.9 + 5.0 -14.0 +15.6 + 1.4 - 0.4 +14.0 + 8.4 - 1.7 +11.3

+10.5 +11.1 + 9.7 +14.1 + 4.1 + 9.6 + 7.5 + 8.4 + 1.3 +13.5 + 3.9

+ 2.3 - 2.3 + 4.5 + 6.0 - 8.2 +13.5 + 5.2

+11.0

+ 0.7 +12.3

4- 7 2

+12.5

+ 3.9

+ 9.8

+ 7 9

11/65 -

1/66

Monthly: 1 "64--November December 1965--January February March April May June July August September October November December

- 2.5 +18.3

+ 1.8 - 6.5 - 0.2 + 5.5 + 3.3 +20.2

January p

+ 5.3

+ 5.9

1/

+ 8.5 +12.1 - 2.8 + 9.4 + 1.4 - 2.7

+ 3.1

+ 9.8

Includes all deposits subject to reserve requirements. movements in total member bank credit.

p - Preliminary.

+ 3.0

+ 4.5

+ 1.5 +11.8

+ 9.5

Movements in this aggregate correspond closely with

Chart

1

MEMBER BANK RESERVES SEASONALLY ADJUSTED MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS

22.5

22.0

21.5

21.0

20.5

FREE RESERVES 0000

20.0

-

-

d

,

REQUIRED AGAINST * TOTAL PRIVATE DEPOSITS

19.5

19.0

16.5

REQUIRED AGAINSTPRIVATE DEMAND DEPOSITS

,to _ 04

_ _ r -...

--

16.0

to 01 o mnosoIf a a

/

,"

oom A

--

4

t

15.5

15.0 S 1964

D

M

J 1965

S

D

M 1966

Chart 2

MEMBER

BANK DEPOSITS SUPPORTED BY REQUIRED

SEASONALLY

ADJUSTED

BILLIONS OF

DOLLARS

MONTHLY

AVERAGES

RESERVES

OF DAILY FIGURES

240

235

230

225

220

125

215

120

210

115

205

110

105

100

10 U.S.

GOVERNMENT

DEMAND

5

S

'64

D

M

J

1965

S

D

M

'66

J

Chart 3

MONEY SUPPLY BY COMPONENTS SEASONALLY ADJUSTED MONTHLY AND WEEKLY.AVERAGES OF DAILY FIGURES II O DOLLARS BILLIONS OF DOLLARS

170

165

160

155

135

130

125

120

40

35

S

1964

D

M

J

1965

S

D

M

1966

Table B-I MAJOR SOURCES AND USES OF RESERVES Retrospective and Prospective (Dollar amounts in millions, based on weekly averages of daily figures) Factors affecting supply of reserves Period

Federal Reserve

credit (excl.

Gold

o

Currency

outside

=

Technical

Change in

factors

total

= Bank use of reserves Required Excess

reserves

tock

banks

net 2/

reserves

3/

reserves

+3,125 +3,219

-426 -165

-1,950 -1,847

- 76 -365

+676 +840

+763 +910

- 87 - 70

-

754 822

-201 - 53

+1,146 +1,089

-926 -825

-732 -611

-511 -463

-221 -148

-

380

- 16

-

88

+353

-131

- 44

- 87

1 8 15 22 29

+ + +

979 441 138 325 369

- 35 + 1 - 1 + 1 - 23

+

62 421 24 146 47

-441 +126 +290 +812 -114

+443 +145 +127 +341 +280

+249 +114 + 21 +670 + 46

+194 + 31 +106 -329 +234

5 12 p 19 p 26 p

+ 247 + 118 -1,232 + 45

- 53 + 1 - 1 --

+ + +

332 15 405 367

-341 -140 + 57 -401

+186 - 38 -771 + 12

+336 -412 -278 -109

-150 +374 -493 +121

+ + -

-- 10 - 10 - 10

+ +

50 320 45 130

-365 -245 - 30 +265

-

-

30 415 50 110

-150 - 50 - 5 +400

float) 1/

ACTUAL Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) Year-to-date: (12/30/64 - 1/27/65) (12/29/65 - 1/26/66) Weekly: 1965--Nov. 24 Dec.

1966--Jan.

PROJECTED Feb.

Mar.

For For For See

2 9 16 23

380 485 90 455

2 + 25 - 10 + 9 + 325 - 10 16 60 - 10 + 23 290 - 10 + retrospective details, see Table B-4. factors included, see Table B-3. required reserves by type of deposits, see Table B-2. reverse side for explanation of projections.

35 90 85 70

35 90 85 70

-105 -105 -150 -150 - 25 - 25 +210 +210 p - Preliminary.

--- --

Explanation of Projections in Table B-1

1.

Changes in Federal Reserve credit indicate reserves needed to offset projected changes in required reserves and factors affecting the supply of reserves.

2.

Projected changes in currency outside banks reflect seasonal movements plus an allowance for growth of about $30 million per week.

3.

Projected effects of Treasury operations, included in "technical factors," reflect scheduled and assumed calls in current two weeks and thereafter, maintenance of Treasury balances with Federal Reserve at $700 million.

4.

Projected changes in gold stock reflect assumed outflow after January at the rate of about $50 million per month.

5.

Projected changes in required reserves reflect estimated seasonal movements in private deposits, except as indicated in projections in Table B-2, and projected movements in U.S. Government demand deposits. Government deposit projections are based on anticipated Treasury receipts and expenditures and the following assumed financing operation: a $100 million increase in the weekly Treasury bill auction from February 3 to March 31.

Table B-2 CHANGES IN REQUIRED RESERVE COMPONENTS Retrospective and Prospective Seasonal and Nonseasonal Changes (Dollar amounts in millions, based on weekly averages of daily figures) Total required reserves

Supporting U. S. Gov't. demand deposits

1963 (12/26/62 - 12/25/63)

+763

1964 (12/25/63 - 12/23/64)

+910

+ 8 -115

Year-to-date: ( 12/30/64- 1/27/65 ( 12/29/65- 1/26/66

-511 -463

Period

private deposits

___Supporting

Total

Seasonal changes r-

Demand

Time

Other than seasonal changes Demand Time

ACTUAL Year:

Weekly: 1965--Nov. Dec.

24 1

1966--Jan. ... - ..

Feb.

Mar.

PROJECTED

I-

+755 +1,025

+ 45 + 16

-364 -283

-147 -180

-113 -101

- 44

+101

-145

+249 +114 + 21 +670 + 46

+217

-121 -303 +245 +217

+336 -412 -278 -in

- 90

-196 -181 i 1 0" -,n

+239 +542

+471

+36

-159 -153

+ 86 + 38

-129

- 8

- 24

+ 16

+ 32

+ 46

+8

+235 +324 +425 -171

+113 +302 +226 -176

- 8 +8

+208 - 13

+426

+269

+27

- ,% 97 hn,

- 82 - 21

- 9 + 9

+125 -135 -100

-zz

-401

+

-

-216

_

+39

- 22

+112 + 15

9

2

- 35

+ 65

-100

-170

+10

9

- 90

+110

-200

-210

+10

16

- 85

+ 75

-160

-150

-10

23

-

+120

-190

-200

+10

70

+467

2 9

-105 -150

-155 -190

+ 50 + 40

+ 30 + 20

+ 20 + 20

16 23

- 25 +210

-185 +460

+160 -250

+180 -230

- 20 - 20

LZ

+ 50 --

+

9

+ 10 --

Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) ~Foreign Treasury operations

Technical factors (net)

Period

Float

e ACTUAL

(Sign indicates effect

deposits and gold loans on reserves)

Other nonmember deposits and F. R. accounts

Year: 1963 (12/26/62 - 12/ 25/63) 1964 (12/25/63 - 12/ 23/64)

- 76 -365

-216 -470

Year-to-date: (12/30/64 - 1/27/65) (12/29/64 - 1/26/66)

-926 -825

- 54 - 51

Weekly: 1965--Nov.

24

+353

+148

+276

- 71

Dec.

1

-441 +126 +290 +812 -114

+111 + 99 + 54 - 66 + 31

-462 + 58 +193 +823 -163

-111 - 38 + 50 + 46 + 14

-341 -140 + 57 -401

+ 87 - 56 - 38 44

-347 + 24 + 51 -356

- 66 - 81 + 1 + 9

1966--Jan.

Feb.

Mar.

1/

PROJECTED 2

-

+149 - 84

+ 88 + 11

- 97 +178

-1,043 -628

+ 88 - 9

+ 83 -137

-365

+ 30

-400

9 16 23

-245 - 30 +265

+ 35 --

-280 -+400

2 9 16 23

-150 - 50 - 5 +400

-----

-150 - 50 - 50 +340

Excludes U.K. loan repayment scheduled for February 1. expected to offset this drain.

+

5

--

1/

--

1/ - 30 -135

--- --+ 45 + 60

--

System purchases of securities are

Table B-4 SOURCES OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) rr Total Federal U. S. Government securities Bankers' Reserve credit Total Outright Repurchase acceptances (excl. flaoat) hnldln1o RWi11 Otr tnsmsC I

Period

holde i

Member bank borrowings

Bill

Year: 1963 (12/26/62

- 12/25/63)

+3,125 +3,219

1964 (12/25/63 - 12/23/64)

+3,076 +3,340

+1,659 +2,086

+1,404 +1,022

+ 13 +232

+ 39

+ 10

-

-

+ 43

61

60

Year-to-date: (12/30/64 - 1/27/65) (12/29/65 - 1/26/66)

-

754 822

-

496 642

-

236

-

421

-260 -221

-

426

-

194

-

132

-

3 10 17 24

+ +

709 256

+ +

537 424

+ +

537 420

-

-72 380

-

205 260

-

201 260

1 8 15 22 29

+

979

+

441

+ +

747 479

+ +

747 376

-

+103

- 56

138

+ +

325 369

-

135 55

-

87 22

- 48 - 33

+

28

-

171

+199

+ 8 -268 +328

5 12 19 26

+ 247 + 118 -1,232 + 45

+

178

+

115

+

24 216

-

812 123

-

490

+202 -101 -322

-

123

-301 -194

+ 14

Weekly:

1965--Oct. 27 Nov.

Dec.

1966-- Jan.

I

*J.

I _________________________

-253

62

+148 -152 +155 -128 +173

.5.

+ 16 + 28 -372 +134 1

U

Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures)

Total Period

reserves

reserves

Required reserves

Nonborrowed reserves

Total

reserves

Total

Aainst private deposits Demand Total

1964--January February March April May June July August September October November December

20,248 20,268 20,459 20,482 20,404 20,682 20,665 20,753 21,012 20,949 21,033 21,082

19,977 19,982 20,176 20,226 20,167 20,431 20,420 20,416 20,638 20,600 20,626 20,886

19,884 19,872 20,056 20,057 20,023 20,269 20,285 20,332 20,570 20,536 20,639 20,742

19,185 19,246 19,292 19,361 19,338 19,441 19,577 19,694 19,832 19,960 19,988 20,081

15,442 15,466 15,492 15,527 15,471 15,539 15,646 15,705 15,805 15,886 15,864 15,912

1965--January February March April May June July August September October November December

21,174 21,355 21,506 21,722 21,671 21,840 21,865 21,816 21,816 21,872 21,827 22,160

20,861 20,969 21,064 21,204 21,183 21,330 21,362 21,247 21,243 21,341 21,399 21,760

20,842 20,915 21,119 21,317 21,298 21,473 21,538 21,384 21,420 21,532 21,459 21,793

20,122 20,166 20,294 20,409 20,258 20,506 20,579 20,665 20,903 21,090 21,124 21,321

15,878 15,852 15,943 16,009 15,822 16,028 16,047 16,041 16,227 16,341 16,318 16,471

1966--January p

22,258

21,867

21,995

21,404

16,525

p - Preliminary.

Chart Reference Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures)

Period

Total member bank deposits (credit

1964--January

1/)

ie

U. S. Gov't. demand

Private demand

epos

deposits

deposits 2/

i

202,981

93,563

5,011

104,407

February

203,759

94,495

4,695

104,569

March April May June July August September October November

205,068 206,176 206,613 208,669 209,312 211,506 212,906 214,109 215,849

95,011 95,852 96,677 97,542 98,273 99,725 100,670 101,850 103,090

5,308 5,337 5,327 6,061 5,256 5,592 5,368 4,849 5,500

104,749 104,987 104,609 105,066 105,783 106,189 106,868 107,410 107,259

December

216,738

104,215

4,932

107,591

1965--January February

218,640 220,663

106,107 107,843

5,180 5,642

107,353 107,178

March April

222,445 225,068

108,778 109,996

5,872 6,829

107,795 108,243

May

225,840

110,898

7,967

106,975

June July

227,642 229,056

111,955 113,306

7,315 7,253

108,372 108,497

August September October November December

230,664 230,913 233,505 234,264 236,405

115,594 116,900 118,718 120,152 121,241

6,614 4,296 4,298 3,785 3,794

108,456 109,717 110,489 110,327 111,370

1966--January p

238,330

121,979

4,622

111,729

Includes all deposits subject to reserve requirements--i.e., the total of time, private demand,and U.S. Government demand deposits. Movements in this aggregate correspond closely with movements in total member bank credit. 2/ Private demand deposits include demand deposits of individuals, partnerships and corporations and net interbank balances. p - Preliminary. 1/

Chart Reference Table C-3 MONEY SUPPLY BY COMPONENTS Seasonally Adjusted (Dollar amounts in billions, based on monthly averages of daily figures)

Period

Money Supply I

Demand I/ deposits .1.

Currency a/

May June July August September October November December

160.0 159.7 160.3 161.1 160.0 161.8 162.5 162.7 164.3 165.6 165.7 167.4

125.5 124.1 125.6 126.4 125.1 126.8 127.3 127.3 128.7 129.7 129.6 131.2

34.5 34.7 34.7 34.7 34.9 35.0 35.2 35.4 35.6 35.9 36.1 36.3

1966--January p

168.5

131.9

36.6

165.9 165.8 165.6

129.9 129.7 129.4 129.6

36.1 36.0 36.1 36.2

1965--January February March

April

Weekly: 1965- -Nov. 3 10 17 24 Dec.

1966- -Jan.

1/

165.8

1 8 15 22 29

166.6 166.5 167.8 168.6

129.6 130.3 130.2 131.5 132.3

36.2 36.3 36.3 36.4 36.3

5 12 19 26

169.6 169.0 168.2 167.8

133.1 132.4 131.5 131.1

36.4 36.6 36.7 36.6

165.7

Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U.S. Government, less cash items in process of collection and Federal Reserve float; and (2) foreign demand balances at Federal Reserve Banks.

Includes currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. e - Estimated. p - Preliminary.

2/

Cite this document
APA
Federal Reserve (1966, February 7). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19660208
BibTeX
@misc{wtfs_bluebook_19660208,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1966},
  month = {Feb},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19660208},
  note = {Retrieved via When the Fed Speaks corpus}
}