bluebooks · July 25, 1966

Bluebook

Prefatory Note

The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act.

1

In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing).

2

A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff.

Content last modified 6/05/2009.

CONFIDENTIAL (FR)

July 22, 1966

MONEY MARKET AND RESERVE RELATIONSHIPS Money markets Recent developments. recent weeks.

Money markets tightened further during

Yields on commercial paper, finance company paper, bankers'

acceptances, and Federal Agency issues continued to rise.

Dealer loan

rates posted by major New York City banks reached a new high of 6-1/2 per cent, as these banks developed large basic reserve deficiencies and were heavy buyers of Federal funds at rates ranging up to a high of 5-3/4 per cent. In this environment and partly in anticipation of a discount rate hike, Treasury bill rates moved sharply higher to levels somewhat more in line with other short-term rates.

The 3-month bill was auctioned

at almost 5 per cent on July 18, although it subsequently fell back to around 4.85 per cent.

At that level, the 3-month bill had risen about

50 basis points from its low of 4.33 per cent on June 27.

Dealer re-

luctance to position bills at a time when financing costs were extremely high and when bill demand from the public had moderated was the principal cause of the rate increase. During the past few days, the System has sold bills, partly to offset the effect on float of the airlines strike.

But the interest rate

impact of sales was reduced through the use of matched sale-purchase transactions.

A total of $1.8 billion of such transactions was made be-

tween July 13 and July 22.

But each of these transactions was only out-

standing for a few days so the bulk were in effect rollovers.

In the

FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and,

where available,

Money Market Indicators

weekly averages of daily figures; amounts in millions of dollars) Bond Yields

3-month3-month STreasU.S.

Period

Free Reserves

1965--June July Aug. Sept.

Borrowings

Funds

ury Bill

Gov't. (20 yn)

New Issues (Aaa)

Federal

Flow of Reserves, Bank Credit and Money

Corporate Corporate MuniciNewNon-

pal aa Aa)

NonTotal Reborrowed Total reere s ese

Bank Bank Credit

Money

Time

Supply

Deposits

Pro

Rate

1/

-176 -178 -162 -139

534 527 549 552

4.01 4.07 4.11 3.95

3.80 3.83 3,84 3.92

4.21 4.21 4.25 4.30

4.58 4.61 4.63 4.67.

3.15 3.16 3.16 3.25

+151 + 30 -116 + 11

+173 + 23 - 50 + 14

+1,802 +1,414 +1,608 + 249

+1,800 + 700 + 200 +1,600

+1,300 +1,700 +2,500 +1,500

Oct. Nov. Dec.

-132 - 77 - 22

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

+ 85 + 59 +365

+ 44 - 44 +338

+2,592 + 759 +2,147

+1,300 + 100 +1,700

+2,000 +1,900 +1,500

1966--Jan. Feb. Mar. Apr. May June p July proj.

- 51 -117 -210 -276 -338 -355 -343

431 474 545 638 653 722 759

4.32 4.58 4.64 4.64 4.83 5.13 4.98

4.58 4.65 4.58 4.61 4.63 4.50 4.80

4.52 4.71 4.72 4.65 4.69 4.73 4.85

4.84 4.98 4.27 5.05 5.21 5.38 5.61

3.39 3.48 3.55 3.46 3.53 3.60 3.77

+103 + 41 - 59 +238 -102 + 41* +156*

+117 + 85 + 62 +335 - 73 - 9* +226*

+1,793 + 820 + 787 +3,587 + 465 + 964* +2,340*

+1,000 - 400 +1,200 +1,900 -1,600 +1,600 - 900

+1,000 + 800 + 800 +2,000 +1,300 +1,200* +1,700*

June 1 8 15 22 29 p

-376 -340 -323 -409 -324

812 547 788 691 771

4.81 4.88 5.15 5.20 5.40

4.63 4.56 4.56 4.44 4.37

4.72 4.71 4.74 4.71 4.74

5.36 5.34 5.43 5.31 5.64

3.60 3.60 3.59 3.58 3.64

+ 269 + 610 +1,630* +1,355 +1,033

- 100 +1,600 + 100 +2,200 -2,000

+ + + + +

200 200 100* 100 500

July 6 p

-457

827

5.25

4.64

4.82

3.77

+1,633

+

400

+

500

- 93 -479

818 631

5.38 4.48

4.75 4-91

4.84

3.77 3.77

-

-1,700 + 300

+ +

700 500

295 467

3.47 4.05

3.53 3.95

4.19 4.27

499 644 725

4.43 4.72 5.11

4.55 4.61 4.60

4.61 4.67 4.77

5.01 5.17 5.47

3.46 3.50 3.67

+ 5.8 + 8.1 +10.0

+ 7.3 - 0.8 + 4.0

+ 7.3 +13.0 +12.6

595

4.67

4.58

4.66

5.15

3.52

+ 7.5

+ 3.9

+10.5

13 p 20 p

2/

Year 1964 107 1965 - 90 Recent variations in growth Dec. 1-Mar. 16 - 92 -299 Mar. 16-June 1 -346 June 1-July 20 Dec.

1-July 20

-217

4-A6

-5.61 --

Averages 4.44 4.58

3.09 3.16

+ 4.6 + 4.2

+ 4.2 + 5.1

463 124

Annual rates of increase 3/ + 7.6 + 4.3 +12.8 + 9.1 + 4.8 +16.1

1/ Time deposits adjusted at all commercial banks. July averages of free reserves and borrowings are for the three weeks ending July 20; money market rates and bond yields are averages for the month to date; and changes in monetary variables include projections for the final two weeks of July. 3/ Base is average for month preceding specified period or in the case of weekly periods, the first week shown. p - Preliminary. * Changes have been adjusted for redefinition of time deposits effective June 9. July 22, 1966.

CONFIDENTIAL (FR)

-2-

July 22, 1966

July 13-22 period, in addition, outright sales of bills to the market amounted to about $300 million. Net borrowed reserves have fluctuated sharply in recent weeks, with a low of $93 million in the week of July 13 and a high of $479 million (before revision) in the week just past.

The initial impact of

the airlines strike was felt in the July 13 week, and in addition the second week of July has traditionally been a period of very large country bank excess reserves.

Member bank borrowings have averaged

almost $760 million so far in July.

Prospective developments.

Assuming net borrowed reserves in

a $400 - $500 million range over the next four weeks, the money market is likely to remain generally tight, although over the near-term some rates may tend to decline.

Major New York City banks are likely to have

a more comfortable reserve position as pressures related to recent tax payments finally subside.

As a result, dealer loan rates in New York

may be somewhat below recent peaks, though remaining at penalty levels. This assumes that banks do not experience further difficulties in replacing maturing CD's over the near-term.

The 3-month Treasury bill

rate may also decline some in the immediate future, given the continuing relatively limited market supply, the need for System purchases of about $1.5 billion during the first half of August (on the basis of current projections), and prospective public demands for bills generated by the August refunding and by large corporate security flotations in the weeks ahead.

CONFIDENTIAL (FR)

-3-

July 22, 1966

As the summer progresses, however, bill rates are likely to move higher.

Corporate demand for bills tends to diminish in the latter

part of summer, partly in consequence of the reduced cash flow during the auto change-over period.

Also, the Treasury will probably be

announcing a financing to raise new cash during the second week of August and may obtain $2 - $3 billion of funds through tax bills.

It will

probably raise additional cash in early fall. The bill rate may fluctuate widely with shifting demands and supplies over the period ahead as dealers continue to maintain relatively low positions in view of their relatively high borrowing costs.

The

3-month bill might drop to as low as 4.70 per cent in the weeks ahead and might rise back toward 5 per cent before the end of August. Long-term credit markets probably will remain tight over the weeks ahead, with interest rates showing a tendency to rise.

The cor-

porate calendar is sizable in August, dominated by two large offerings. Bank participation in the municipal market has diminished.

And the

Treasury may offer an attractive coupon in its August refunding, to be announced July 27, which may encourage some switching out of bonds. The public holds $3.2 billion of the maturing Treasury issues. The reception that would be accorded the new offerings--whatever they may be--is quite uncertain in the current market atmosphere.

This sug-

gests the need for "even keel" at least through the August 15 settlement date, and possibly beyond depending on the after-market.

CONFIDENTIAL (FR)

July 22, 1966

-4-

Reserve flows, bank credit, and money Recent developments.

Bank credit expansion appears to have

been on the high side of the Staff's expected range in July.

Rather

sluggish growth prior to the mid-June tax date held the rate of expansion in June on average to below 5 per cent.

The average rate of growth in

July has apparently increased to about 11.5 per cent, mainly because growth was rapid in the three weeks ending July 6.

Part of the enlarged

credit expansion reflects banks' success in obtaining time deposits. After rising moderately in June, time deposits grew more rapidly in July, as banks apparently received funds transferred out of other savings institutions. Fluctuations in bank credit and in Government and private demand deposits during June and July were unusually large because of the impact of the accelerated payments by corporations of their income taxes and of withheld individual income and social security taxes.

While show-

ing wide weekly fluctuations, private demand deposits rose sharply on average in June when Government deposits declined, and then declined almost as sharply in July when Government deposits rose.

Over the two

months combined, private demand deposits rose at just under a 2 per cent seasonally adjusted annual rate. Total reserves, which had declined following their April bulge, are now expected to rise by about 12 per cent on average in July.

Re-

quired reserves are expected to grow by about 10 per cent. (Both of these aggregate reserve increases are after taking out the rise due to the increase in the legal requirement against time deposits.)

The difference

between the increases in total and required reserves represents unusual

CONFIDENTIAL (FR)

-5-

July 22, 1966

additions to excess reserves occasioned mainly by the airlines strike. Nonborrowed reserves in July increased somewhat more slowly than either of the other reserve aggregates.

Prospective developments.

Bank credit declined in the middle

weeks of July as some of the earlier borrowing was repaid and as banks made adjustments to the reserve requirement increase.

Expansion is

likely to resume in the weeks ahead, but the growth rate for August on average may be fairly low--perhaps in a 4 - 6 per cent range, assuming The expansion is

only a relatively small attrition in the refunding.

likely to be more toward the upper end of the range on the assumption of payment for a Treasury tax bill financing through tax and loan credit toward the end of August. Time deposits are expected to grow less rapidly in August than in July, partly because of the ending of transfers out of savings institutions after the mid-year interest crediting period.

On the other hand,

demand deposit (and money supply) growth is expected to be resumed. Government deposits are likely to decline somewhat in August, partly because of the absence of receipts from withheld income and social security taxes that had been accelerated to June and July.

Although the money

supply is declining substantially in July, it is likely to rise over the next few months at a rate somewhat higher than the almost 4-1/2 per cent increase of the first half of the year.

CONFIDENTIAL (FR)

-6-

July 22, 1966

Only a small growth in required reserves is likely to accompany the August bank credit and monetary expansion.

Demand deposits in total

may show little change because of offsetting movements of Government and private deposits.

As a result, the rise in required reserves would

reflect mainly expansion in time deposits.

Total reserves could decline

slightly in August, assuming the ending of the airline strike which would bring excess reserves back to more normal levels.

The projected

movement of total and required reserves assumes net borrowed reserves of around $400 - $500 million and borrowing around $800 million.

Table A-

MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess reserves

Period

As

Member banks I borrowines

revised

to

Free

I

reserves

date

Monthly (reserves weeks ending in):

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

As first published each week

1965--June July August September October November December

358 349 387 413 358 341 430

534 527 549 552 490 418 452

-176 -178 -162 -139 -132 - 77 - 22

1966--January February March April May June p

380 357 335 362 315 367

431 474 545 638 653 722

- 51 -117 -210 -277 -338 -355

6 13 20 27

333 360 373 380

623 603 685 642

-290 -243 -312 -262

-225 -286 -281 -280

-241 -282 -270 -316

May

4 11 18 25

286 340 319 314

617 780 663 653

-331 -340 -344 -339

-280 -324 -315 -351

-280 -310 -341 -370

June

1 8 15 22 p 29 p

436 207 465 282 447

812 547 788 691 771

-376 -340 -323 -409 -324

-364 -375 -341 -417 -350

-342 -360 -336 -394 -368

July

6 p 13 p

370 725 152

827 818 631

-457 - 93 -479

-456 -155 -479

-473 -133 -528

_

Weekly 1966--April

20 p

p - Prelimin ry

p

-

Preliminary

TABLE A-2 AGGREGATE RESERVES AND RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) Reserve Total Reserves

A

gr e ates Required reserves Against Total Demand

Monetary Variables Time Money Supply Total Member Deposits Private (comm. Total Demand

Deposits

banks)

Deposits

annually: 1963 1964 1965 Monthly: 1965--January February March April May June July

+ 3.5 + 4.2 + 5.1

+ 3.5 + 4.6 + 4.2

+ 3.8 + 4.9 + 5.0

+ 1.7 + 3.1 + 2.4

+ 7.5 + 7.6 + 9.1

+14.7 +12.8 +16.1

+ 3.8 + 4.3 + 4.8

+ 3.2 + 4.0 + 4.6

+ 5.3 +10.4 + 8.1 +12.5 - 3.4 + 9.6 + 1.3

+ + + + +

1.4 6.4 5.1 8.4 1.8 8.6 1.7

+ 5.7 + 4.3 +11.5 +11.4 - 1.1 + 9.8 + 3.6

+ 0.2 + 3.0 + 9.0 +14.8 - 1.3 + 7.8 + 0.7

+10.5 +11.1 + 9.7 +14.1 + 4.1 + 9.6 + 7.5

+20.9 +20.5 +10.1 +12.7 + 9.9 +11.6 +15.0

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

+ 1.0 - 3.8 + 4.8 + 7.6 -12.3 +16.3 + 4.7

-

6.5

-

August

-

8.7

- 7.1

+ 8.4

+21.8

+ 1.5

September October November December

+ 0.8 + 2.4 - 2.4 +18.6

+ 0.6 + 4.8 + 3.3 +20.5

+ 2.3 + 6.1 - 3.8 +18.3

-11.1 + 8.1 - 6.9 +11.2

+ 1.3 +13.5 + 3.9 +11.0

+12.8 +16.9 +15.9 +12.4

+11.8 + 9.5 + 0.7 +12.3

+13.2 + 9.3 - 0.9 +14.8

+ 6.3 + 4.6 + 3.3 +17.9 - 3.8 - 0.5 +12.0

+ 5.7 + 2.2 - 3.2 +13.1 - 5.5 + 2.2 + 8.5

+11.5 - 0.1 + 4.5 +15.0 - 4.2 + 3.9 +10.1

+12.0 + 2.9 + 1.5 +17.7 - 6.0 + 1.7 + 8.2

+ 9.1 + 4.1 + 4.0 +17.9 + 2.3 + 4.7 +11.5

+ 8.2 + 6.5 + 6.5 +16.0 +10.3 + 9.4 +13.2

+ 7.2 - 2.9 + 8.6 +13.5 -11.2 +11.3 - 6.3

+ 5.5 - 5.5 +10.1 +15.4 -16.1 +14.5 -10.8

1966--January February March April May June p 2/ July proj.2/

2.7

1/ Includes all deposits subject to reserve requirements. 2/

--

Movements in this aggregate correspond closely with movements in total member bank credit. Changes in reserves, total deposits, and time deposits have been adjusted for redefinition of time deposits effective June 9. Changes in reserves have been adjusted for increases in reserve requirements in July.

Chart 1

MEMBER SEASONALLY

BANK RESERVES ADJUSTED MONTHLY

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

22.5

+

22.0

+

21.5

BORROWINGS BORROWINGS

SNONBOIRO

21.0

20.5 FREE

RESERVES

to 20.0

S *

/

0

AGA

'REQUIRED TOTAL

PRIVATE

DEP(

19.5

19.0

h-~

16.5 PRIVATE

16.0

st

REQUIRED DEMAND

AGAINST DEPOSITS t

-mo

t 0---a*<o

15.5

15.0

''

I""

I

I

I

I

I

I

I

I

I M

1964

1965

1966

Chart 2

MONEY SUPPLY

AND BANK DEPOSITS

SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES

I

II

BILLIONS OF DOLLARS TOTAL

MEMBER

BANK

(Credit

BILLIONS OF DOLLARS

DEPOSITS

245

Proxy) 240

235

230 MONEY

SUPPLY

170

225

165

220 4

WEEK

MOVING

AVERAGE

160

155

TIME

DEPOSITS

(All

ADJUSTED

Commercial

Banks)

150

145

140

135 NEGOTIABLE 130

CD'S 20

-(Unadjusted)

15

I

I I

I I M

J 1965

S

I D

II M

I ,I

o

I I J

S

D

1966 *CHANGE

IN SERIES

Chart 3

DEMAND

DEPOSITS

SEASONALLY ADJUSTED WEEKLY

AND CURRENCY AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

45

MONEY SUPPLY COMPONENTS: 40 CURRENCY

OUTSII I

35

30

140

135

DEMAND

DEPOSIT

130

125

120

15

U.S.

GOVT. DEMAND (Member

DEPOSITS

Banks)

10

5

_

S^* 0

1965

1966

Table B-1 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 Currency Technical Gold Federal Reserve factors outside credit (excl. net 2/ banks stock float) 1/ +

Period ACTUAL

=

Change in total reserves

= Bank use of reserves Required reserves reserves 3/

aar: 1964 (12/25/63 - 12/23/64) 1965 (12/23/64 - 12/22/65)

+3,219 +3,926

-165 -1,578

-1,847 -2,228

-365 +845

+840 +966

+910 +1,136

- 70 -170

Year-to-date: (12/30/64 - 7/21/65) (12/29/65 - 7/20/66

+1,832 +863

-1,454 -352

-250 -611

-459 - 58

-328 -161

+ 40 +148

-368 -309

+159

-490

-234

-229

-

-174 -400 + 20 + 60 +207

-327 +240 - 75 +578 -320

+127 -164 +126 +389 +207

+ 5 + 65 -132 +572 + 42

+122 -229 +258 -183 +165

-718

+135 +205 +736

+267 + 52 -326

+344 -303 -247

- 77 +355 -573

Weekly: 1966--May June

July

25

+ 99

1 8 15 22 29 p

4627 - 6

+ -

+185 -224 +393

- 28 - 73

6 p 13 p 20 p

+851 + 5

+ + -

-1,261 -?

2 1

2 1 1

I

-162 4-

+204

4

II

44

PROJECTED 4/ July 27

+ 35

- 30

+165

-110

+ 60

+ 60

Aug.

+675 +455

-120 - 10 - 10 - 10 - 10

- 70

-515 - 80 -200

- 30 -100

- 30 -100

-100 - 80

-100 - 80

3

+ 65 -220

+ 70

I

For Fpr For See

-465 +145 +130 +160

I

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.

-300

-

.

-

p - Preliminary.

I~

5

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) I

II

Total required reserves

Period ACTUAL

Year: 1964 (12/25/63 - 12/23/64 1965 (12/23/64 - 12/22/65

+910 +1,136

Supporting U. S. Gov't. demand de -- osits -115 -170

1

private deposits Supporting I P

Total

Time Tm

Demand D

+1,025 +1,306

Other than seasonal changes

Seasonal changes

+ 16 +113

Demand Da

Time T me

+542 +529

+467 4467 +664

+ 3 + 59

+354 +607 + 4 + 15 + 20

Year-to-date: (12/30/64 - 7/21/65) (12/29/65 - 7/20/66)

Weekly: 1966--May

June

July

+ 40 +148

+232 +105

-192 + 43

-627 -713

-196 - 97 -229

+ 64 +163 8

-260 -260 -221

-214 -185 -165

+

9

-

9

- 59 - 90 - 67

- 72 -200 -353 +283 +617

+ 77 +265

15 1/ 22 29 p

+ 5 + 65 -132 +572 + 42

-575

+ 32 +120 +263 - 16 -298

+ 9 - 9 + 9 - 18 + 18

+ 31 +141 - 11 +315 -299

+ 5 + 3 - 40 + 8 + 4

6 p 13 p 20 n 2/

+344 -303 +947

+129 -233

+215 - 70

+ 10 - 19

+105 -254

+ 14 + 36

-AA01

-5 n

+ 86 +167 4-11

4.

-.

4-i 4/

+ 60

+ 35

+ 25

- 70

- 30 -100 --100 - 80

-190 + 15 +135 - 55 -170

+160 -115 -135 - 45 + 90

+ 80 - 95 -135 -165 + 45

11

1 8

+221 1/ +289

+ 78 + 90

a

AA

PROJECTE July 27 2/ Aug.

3 10 17 24 31

-- 20 -- 10 - 10 - 10

+ 15

+ 80

+ 90 - 30 -+120 +45

+ + + + +

10 10 10 10 10

1/ Redefinition of time deposits subject to reserve requirements released $34 million of reserve effective June 9. 2/ Increase in percentage reserve requirements against time deposits absorbed an estimated $355 million of reserves at city banks effective July 14 and $70 million at country banks effective July 21.

Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Technical factors (net)

Period ACTUAL

Foreign deposits Float Treasury operations and gold Sloans (Sign indicates effect on reserves)

Other nonmember deposits and F. R. accounts

Year: 1964 (12/25/63 - 12/23/64) 1965 (12/23/64 - 12/22/65)

-365 +845

-470 +232

- 84 - 31

+ 11 - 7

+178 +651

(12/30/64 - 7/21/65) (12/29/65 - 7/20/66)

-459 - 58

- 48 -333

-678 +512

+ 13 - 47

+254 -190

Weekly: 1966--May

25

-490

-259

- 42

+

-195

June

1 8 15 22 29

-327 +240 - 75 +578 -320

+ 17 +125 -175 + 96 - 78

-313 + 95 + 44 +445 - 75

- 20 + 3 + 2 - 25 + 2

+ + + +

July

6 13

+135 +205

+184 -302

+ 27 +424

- 56 + 56

- 20 + 27

20

+736

-136

+795

- 13

+ 90

July 27

-110

+120

-350

+ 20

+100

Aug.

-515 - 80 -200 -300

- 35 +170 &#45;&#45;&#45; -500 -250 -200

Year-to-date:

6

11 17 54 62 31

PROJECTED 3 10 17 24 31

-300

--

+ 20 --

--

--

--

-

Table B-4 SOURCES OF FEDERAL RESERVE CREDIT Retrospective Changes

(Dollar amounts in millions, based on weekly averages of daily figures) Period

Total Federal Reserve credit (excl. float) 1 -

Year: 1964 (12/25/63 - 12/23/64) 1965 (12/23/64 - 12/22/65) Year-to-date: (12/30/64 - 7/21/65) (12/29/65 - 7/20/66) Weekly: 1966--Apr.

May

June

II -

U.

Total holdin2s

I 4.

S.

Government securities Repurchase Outright Bills Other a2reements 4

Bankers IMember bank acceptances lborrowings

+3,219 +3,926

+3,340 +3,898

+2,086 +3,226

+1,022 + 916

+232 -244

+1,832 + 863

+1,928 + 835

+1,537 + 617

659 439

-268 -221

- 17

- 79

- 57

+ 85

6 13 20 27

+

512

+

+115

126 444

+145 -111

- 22

-

-

+

145

+

- 20 + 82 - 43

4 11 18 25

+ +

369 422

+

-

309

+

99

+

1

+ + -

627 6 185 224

+ +

+

393

+

6 13

+ +

851 5

+

20

-1,261

8 15 22 29 July

__

I

+

+

II

419 103 520 145

274 8 486 120

391 402 292 68

292 185 128 203

17

442 225 23 131 267

411 166 73 72 173

31

790 71 969

706 61 966

80 11

-

34

25

3 6

+ 43 + 82 +217 -164

+

3

-135

+ 41

- 43

+ 26 + 34

38 13 1 94

1

- 61

+ 67

+ -

25 63 17 10

+159

- 33

-265 +241

+ 4 + 46

+ 80

-

97

- 57

+ 56 - 9

-105

-187

+

L

- 60 - 39

5

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

Required reserves

Nonborrowed

Total

Total

reserve

reserves

Period

reserves

reserve

Against private deposits

TotalDemand

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

19,832 19,960 19,988 20,081

1965--January February March April May June July August

21,175 21,359 21,504 21,728 21,667 21,840 21,863 21,813 21,827 21,871 21,827 22,165

20,862 20,973 21,062 21,210 21,179 21,330 21,360 21,244

20,840 20,915 21,116 21,316 21,296 21,470 21,535 21,379 21,420 21,528 21,460 21,788

20,122 20,166 20,294 20,409 20,258 20,506 20,579 20,665 20,903 21,090 21,124 21,326

15,878 15,852 15,943 16,009 15,822 16,028 16,047 16,041 16,227 16,341 16,318 16,477

22,282

21,867 21,908

21,996 21,994 22,076 22,352

21,407 21,396 21,588 21,842 21,628 21,859 21,803

16,533 16,500

September October November December 1966--January February March

21,255 21,340 21,399 21,764

22,367 22,429 22,764 22,691 22,682 22,908

April May June p 1/ July proj. .I/

I

21,849 22,087 21,985 22,026 22,182

I

22,273 22,346

22,535

I

19,185 19,246 19,292 19,361 19,338 19,441 19,577 19,694

15,442 15,466 15,492 15,527 15,471 15,539 15,646

15,705 15,805 15,886 15,864

15,912

16,666 16,846 16,590 16,789

16,672

4.

p - Preliminary. 1/ Reserves have been adjusted for redefinition of time deposits effective June 9, and for changes in reserve requirements effective July 14 and 21.

Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar amounts in millions, based on monthly averages of daily figres)

Monthly

1964--January February March

Total member bank deposits (credit) 1/

Time deposits

Private demand deposits

2

/

U. S. Gov't. demand deposits

202,981 203,759 205,068

93,563 94,495 95,011

104,407 104,569 104,749

5,011 4,695 5,308

April May

206,176 206,613

95,852 96,677

104,987 104,609

5,337 5,327

June

208,669

97,542

105,066

6,061

July

209,312

98,273

105,783

5,256

August September October November December

211,506 212,906 214,109 215,849 216,738

99,725 100,670 101,850 103,090 104,215

106,189 106,868 107,410 107,259 107,591

5,592 5,368 4,849 5,500 4,932

1965--January

218,640

106,107

107,353

5,180

February

220,663

107,843

107,178

5,642

March April

222,445 225,068

108,778 109,996

107,795 108,243

5,872 6,829

May

225,840

110,898

106,975

7,967

June July August September October November December

227,642 229,056 230,664 230,913 233,505 234,264 236,411

111,955 113,306 115,594 116,900 118,718 120,152 121,220

108,372 108,497 108,456 109,717 110,489 110,327 111,409

7,315 7,253 6,614 4,296 4,298 3,785 3,782

238,204 239,024 239,811 243,398 243,863 244,827 247,167

121,861 122,401 123,038 124,898 125,953 126,745 128,277

111,787 111,562 112,684 113,905 112,170 113,515 112,722

4,556 5,061 4,089 4,595 5,740 4,567 6,168

1966--January February March April May June p / July proj.3/

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. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9 p - Preliminary. 1/

TABLE C-2a DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar amounts in millions, based on weekly averages of daily figures)

Week ending:

Total member bank deposits S(credit) /

Time deposits ____

Private demand deposits 2/

U. S. Gov't. demand deposits

1966--Jan.

5 12 19 26

236,036 237,302 238,155 239,830

.121,367 121,740 121,987 122,246

112,591 112,114 111,507 111,207

2,078 3,448 4,661 6,377

Feb.

2 9 16 23

239,899 238,866 238,966 238,542

122,193 122,026 122,562 122,490

112,050 112,003 111,715 110,694

5,656 4,837 4,689 5,358

Mar.

2 9 16 23 30

238,958 239,366 239,559 239,710 240,437

122,284 122,288 122,757 123,335 123,770

111,691 111,957 112,560 113,155 113,017

4,983

6 13 20 27

242,648 243,216 243,286 243,882

124,508

113,306

124,684

113,764 114,482

4,834 4,768 3,762 4,761

4 11 18 25

244,178 244,465

113,407 112,952 112,372 111,954

5,402

244,091 243,395

125,369 125,455 125,815 126,330

1 8 15* 22p* 29p*

243,664 244,274 243,494 244,849 245,882

126,433 126,778 126,599 126,816 126,913

112,115 113,137 113,152

5,116

113,035

3,743 2,998 5,934

6 p* 13p*

247,515 247,052 246,928

127,281 127,183 128,383

113,621 112,168 112,600

6,613 6,701 5,945

Apr.

May

June

July

20p*

125,042 125,311

113,810

115,035

5,121 4,242 3,220 3,650

6,058 5,904 5,111

4,359

p - Preliminary. Includes all deposits subject to reserve requirements--i.e., the total Moveof time, private demand, and U.S. Government demand deposits. ments 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.

1/

*

Deposits have been adjusted for redefinition of time deposits effective June 9.

TABLE C-3 MONEY SUPPLY AND TIME DEPOSITS AT ALL COMMERCIAL BANKS Seasonally Adjusted (Dollar amounts in billions, based on monthly averages of daily figures)

Private

Monthly

Money Supply

May June p

3

July poj.

im Adj

Time Deposits D st 113.5 114.6 115.3 116.2 117.3 118.5 119.4 121.0

160.0 159.7 160.3 161.1 160.0 161.8 162.5

34.5 34.7 34.7 34.7 34.9

128.8 131.0 132.1 133.5

162.7 164.3 165.6 165.7 167.4

35.4 35.6

36.3

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

68.4 168.0 169.2 171.1 169.5

36.7 36.8 36.9 37.1 37.3 37.3 37.6

131.8 131.2 132.3 134.0 132.2 133.8 132.6

148.0 148.8 149.6 151.6

1965--January February March April May June July August

1966--January February March April

Demand Deposits 2/ 121.0 121.1 121.2 121.4 121.2 122.1 123.0 123.3 124.3 124.8 124.8 125.4

153.6 153.8 154.1 154.5 154.5 155.5 156.6 157.1

October November December

1/

32.6 32.8 32.9 33.0 33.3 33.4 33.6 33.8 33.9 34.0 34.2 34.2

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

September

Currency

158.2 158.8 159.1 159.7

171.1 170.2

35.0 35.2 35.9 36.1

122.1 123.5 125.1 126.6

134.6 135.9 137.6 140.1 141.6 143.6

145.5 147.0

152.9 154.1

155.8

1/ Includes currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. 2/ 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. 2/

Deposits have been adjusted for redefinition of time deposits effective June 9. p - Preliminary.

TABLE C-3a MONEY SUPPLY AND TIME DEPOSITS AT ALL COMMERCIAL BANKS Seasonally Adjusted (Dollar amounts in billions, based on monthly averages of daily figures)

Private Week Ending

Money Supply

36.4 36.6 36.7 36.6

133.1 132.5 131.5 130.8

147.7 147.7 148.0 148.2

Feb.

2 9 16 23

167.9 168.1 168.3 167.5

36.7 36.9 36.8 36.9

131.2 131.3 131.5 130.6

148.4 148.4 148.8 149.0

Mar.

2 9 16 23 30

168.5 168.7 169.2 169.8

131.6 131.8 132.3 132.9 132.2

149.2 149.2 149.5 149.8

169.1

36.9 36.9 36.9 36.9 36.9

6 13 20 27

170.1 171.2 171.3 170.8

36.9 37.2 37.0 37.1

133.2 134.0 134.3 133.7

150.7 151.2 151.7 152.1

4 18 25

170.4 170.0 169.7 169.0

37.2 37.2 37.3 37.3

133.2 132.8 132.3 131.7

152.3 152.5 152.9 153.4

1 8 *15 *22 *29

168.9 170.5 170.6 172.8 170.8

37.3 37.3 37.4 37.4 37.4

131.6 133.2 133.2

153.6 153.8 153.9

135.4 133.5

154.0 154.5

July *6 *13 *20

171.2 169.5 169.8

34.4 37.6 37.6

133.8 131.9 132.2

155.0

May

11

June

_______________

*

Time Deposits adjused adjusted

169.6 169.1 168.1 167.4

Apr.

2/

Demand Deposits2/

5 12 19 26

1966--Jan.

1/

Currency 1/

150.2

155.7 156.2

I___

Includes currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. 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 of Federal Reserve Banks. p - Preliminary. Deposits have been adjusted for redefinition of time deposits effective June 9.

Cite this document
APA
Federal Reserve (1966, July 25). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19660726
BibTeX
@misc{wtfs_bluebook_19660726,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1966},
  month = {Jul},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19660726},
  note = {Retrieved via When the Fed Speaks corpus}
}