bluebooks · August 14, 1967

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)

August 11, 1967.

MONEY MARKET AND RESERVE RELATIONSHIPS

Recent developments Spurred by large business tax payment financing needs and a sizable Treasury tax bill financing, the pace of bank credit expansion accelerated in June and July and continued relatively high in early August. In July, bank credit (as measured by the daily average bank credit proxy) expanded at a 15.2 per cent annual rate.

This was at the top of the

13-15 per cent range for the month projected at the last FOMC meeting. (After including borrowing abroad through foreign branches, bank credit rose by 16 per cent in July).

The slightly higher growth rate in bank

credit reflected a somewhat longer lasting expansion in private demand deposits than had been projected, as the tax bills banks acquired by crediting tax and loan accounts in the second week of July were sold off more slowly than originally assumed.

Time and savings deposits during

July expanded in line with projections at a 14.5 per cent annual rate. The money supply, which had been expanding rapidly since the beginning of May, largely in reflection of a sharp decline in U.S. Government deposits, grew 11.5 per cent in July on average.

1/

Most of

last month's growth in the money supply occurred early in the month,

1/ The money supply and other deposit and reserve series have been revised to reflect new seasonals and benchmark data, as explained in the appendix to the Green Book. The effect of the seasonal revisions was to add 4 percentage points to the annual rate of growth in the money supply in July (as compared with what it would have been with the old seasonals) and to take away almost the same amount from May and June together.

FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and,

where available,

MoneyMarket IndicatorsI

Free

Borrow-

teserves ings (In millions

Period

Federal 3-month Funds Rate

of dollars)

1966--July Aug.

weekly averages

of daily figures) Flow of Reserves. Bank Credit and MoneN

Bond Yields

Treasury Bill

Corporate MuniciU.S. Gov't. (20 yr.)

New Issues

pal (Aaa)

Non-

Total

borrowed Reserves

Reserves

(Aaa)/

(of dollarsl

Bank Credit Proxy

Money Supply

Ti Deposi

(In of dofars) doars) billions of (In billions

(Seasonally Adjusted) (SERIES REVISED) +154* + 1.9* - 0.7 -290 - 0.2 + 0.2

-359 -374

439 740

5.18 5.45

4.78 4.95

4.84 4.95

5.48** 5.64**

3.77 3.91

+110* -240

Sept.

-390

765

5.30

5.36

4.94

5.82**

3.93

- 36

+ 84

- 0.1

+ 0.4

+ 0.7

Oct.

-425

766

5.46

5.33

4.83

5.70**

3.82

-116

-131

- 0.9

- 0.4

+ 0.2

Nov. Dec.

-235 -196

605 529

5.75 5.39

5.31 4.96

4.88 4.76

5.71 5.73

3.78 3.79

+150 - 13

- 59 - 16

- 0.6 + 0.4

-+ 0.3

- 0.3 + 1.3 + 2.2

1967--Jan.

+ 2.1 + 1.2

- 59

476

4.87

4.72

4.51

5.43

3.50

+475

+359

+ 3.3

- 0.1

Feb. Mar.

+ 42 +172

366 196

4.99 4.50

4.56 4.26

4.61 4.56

5.18 5.31

3.38 3.47

+325 +555

+218 +415

+ 3.3 + 3.0

+ 1.2 + 1.6

Apr. May

+199 +275

150 94

4.03 3.94

3.84 3.60

4.64 4.90

5.38 5.62

3.50 3.71

+ 92 + 96

+ 49 8

+ 2.1 + 1.2

- 0.3 + 1.6

+ 2.0 + 1.9

June July p

+257 +309

88 132

3.97 3.78

3.53 4.20

4.99 5.01

5.79 5.78

3.80 3.86

+ 95 +307

+164 +223

+ 2.0 + 3.2

+ 1.7 + 1.7

+ 2.5 + 2.1

1967--July

Aug.

2.6 2.6

12

+574

69

3.98

4.19

4.97

5.74

3.87

+ 1.3

+ 0.5

+ 0.8

19

+185

51

3.45

4.17

4.96

5.76

3.85

+ 2.2

- 0.4

+ 0.4

26 p

+370

54

3.90

4.26

5.05

5.88

3.85

+ 0.6

+ 0.4

+ 0.2

2 p 9 p

+175 +324

116 91

3.75 4.02

4.15 4.17 Ave

5.07 5.10

5.82 5.82

3.75 3.75

+ 1.2 + 0.2 + 0.7 + 0.1 Annual rates of increase 3/

ages

Year 1966

-283

672

5.06

4.85

4.77

5.41

3.67

+ 0.8*

Second Half 1966

-338

763

5.39

5.12

4.87

5.74

3.83

-

First Half 1967

+153

222

4.38

4.09

4.70

5.45

3.56

+15.0

Recent variations in growth July 6-Nov. 16 Nov. 16-Mar. 29 9 Mar. 29-Aug.

-346 - 23 +259

732 397 114

5.43 5.01 3.94

5.13 4.70 3.81

4.89 4.64 4.90

5.72 5.36 5.68

3.85 3.57 3.72

1.3*

+ 0.7 + 0.9

+ 1.2*

+ 3.7*

+ 2.2

+ 8.8

- 2.3*

+ 0.3*

- 0.2

+ 6.5

+12.1

+ 6.8

+17.3

- 2.1 +12.4 +11.0

- 0.6 + 5.6 + 7.9

. 4.2 +16.4 +15.8

+10.7

I/

Includes issues carrying 5-year and 10-year call protection; ** issues carry a 5-year call protection.

2/ 3/ * p -

Time deposits adjusted at all commercial banks. week shown. Base is average for month preceding specified period or in case of weekly periods, the first Changes have been adjusted for redefinition of time deposits effective June 9, 1966. Preliminary. August 11, 1967.

CONFIDENTIAL (FR)

August 11, 1967.

-2-

as sizable repayments of banks' business loans did not develop as soon as expected following the bulge in such lending over the June tax period.

But beginning after mid-July growth in the money supply

leveled off, as considerably larger than usual net repayments of business loans occurred and continued into early August. These demands for credit and money were accommodated almost by a 16 per cent expansion in nonborrowed reserves during July. result member bank borrowings remained relatively low.

As a

Federal funds

and dealer loan rates were mostly at the low end of their recent ranges in the latter part of July, with the Federal funds rate averaging around 3¾ per cent and dealer new loan rates in New York around 4 per cent.

In the latest statement week ending August 9, the funds rate

has averaged slightly above 4 per cent, and dealer loan rates have moved up some. In the bill market, rates fluctuated fairly sharply in the second half of July, but since then the 3-month Treasury bill rate has tended to stabilize around its mid-July level. month bill was quoted at 4.17 per cent.

Most recently, the 3-

Longer-term bills have

drifted up in yield on balance, partly in reflection of the flotation of the Treasury's new 15-month note, with the 1-year bill most recently at 5.10 per cent.

The President's tax message did not elicit any

extensive reaction on interest rates in money and capital markets, but may have contributed to the apparent modest lessening of credit market pressures

in private capital markets.

CONFIDENTIAL

-3-

FR)

August 11, 1967.

Member bank borrowings have averaged $78 million during the past four statement weeks, little changed from previous weeks (except for the high borrowings during the week containing the banks' midyear statement date and the July 4 holiday).

At the same time excess

reserves have averaged $342 million in the past four statement weeks, down from the previous four weeks which included a seasonal bulge in the second week of July.

Free reserves averaged $264 million during

the weeks since the previous meeting.

Prospective developments Credit expansion is expected to slacken during August, with an annual rate of growth in the bank credit proxy of 5-7 per cent expected from the week ending August 2 to the week ending August 30. But for the month on average the bank credit proxy is expected to grow by a 14-16 per cent annual rate, in large part reflecting the carryover effect on the August average of the bank credit growth in July. In the previous Blue Book the bank credit projection for the month had assumed that the Treasury would raise no new cash in connection with the mid-August refunding and that the next cash financing would be in early September.

The current bank credit pro-

jection for August includes the effect of the Treasury cash refunding with payment date at midmonth, which raised about $300 million of new cash and avoided attrition that we had earlier estimated might be as much as $500 million.

In addition, it allows for a $2¼

new cash financing to be paid for at the end of August.

billion for This financing

may include a note offering, with a coupon attractive to banks.

CONFIDENTIAL (FR)

-4-

August 11, 1967.

The new August projection would lead to a July-August average bank credit expansion of 14-16 per cent, as compared with 10-12 per cent shown in the last Blue Book.

About half of the difference

reflects the different Treasury financing pattern that is emerging. The recent strength in business loans persisted longer than expected, but large repayments have recently developed, as earlier noted. A slower rate of expansion in the money supply is also expected in August, as loan demands are expected to continue quite moderate over the balance of the month.

On average in August, money

supply may expand at about a 3-5 per cent annual rate, and shows a smaller increase over the course of the month. Time deposits in August are expected to rise fairly sharply at a 16-18 per cent annual rate.

Recently there was a larger than

anticipated growth in outstanding negotiable CD's, as major banks have tapped both the CD and Euro-dollar market to obtain funds perhaps in part in anticipation of increasing loan demands this fall.

Consumer

time and savings deposits, as best can be judged from the available data, are still showing strength, although perhaps somewhat less buoyancy than in the spring. With these developments in train for August, maintenance of prevailing money market conditions may be consistent with a more moderate bank credit growth in September than in recent months.

Prevailing money

market conditions would continue to encompass a Federal funds rate averaging around 4 per cent or below, new dealer loan rates at New York

CONFIDENTIAL (FR)

-5-

August 11, 1967

banks in a 4 1/8 - 4-3/8 per cent range, member bank borrowings generally in a $50-$100 million range, and free reserves averaging $200-$300 million.

Such conditions would be consistent with an "even keel"

posture, in view of the forthcoming Treasury cash financing assumed to be in the intermediate-term note area, and may keep the 3-month Treasury bill rate in a 4.10-4.35 per cent range.

The bill rate may drift up

toward the upper end of the range as the September dividend and tax dates approach. Under these conditions, and with basic economic developments generally consistent with staff projections in the Green Book, bank credit expansion in September might be in the order of 7-9 per cent on However, an automobile strike during September could alter the

average.

outlook for bank loans, depending on its duration and on the companies' ability to stock the dealers with new models before a strike. Strike uncertainty also, of course, affects projections for the money supply and time deposits since it could seriously affect corporate cash flows and personal income.

Assuming no strike, or one

of brief duration or limited scope, money supply in September is likely to decline by about 2-4 per cent on average.

Some further increase in

U.S. Government deposits can be expected on average in September, in view of the tax payments during the month and the new cash borrowing just prior to the beginning of the month. A slower rate of growth in time deposits is expected in September.

The recent somewhat less buoyant behavior of consumer time

CONFIDENTIAL (FR)

August 11, 1967.

and savings deposits is expected to continue, but more importantly banks are not expected to increase outstanding negotiable CD's to the extent they did in recent weeks.

The new Treasury cash offering may provide

some competition for time and savings deposits, especially if it is necessary to use a highly attractive 5½ per cent coupon on an intermediate-term security.

In addition, corporations may show less

interest in CD's in September when their tax payments--including both income taxes and withheld employee taxes--will be somewhat larger than last year and substantially more than in 1965. This credit and money picture for September--with Government and private demand deposits taken together showing little net change-would be consistent with a reduction in the annual rate of expansion in nonborrowed reserves from about 13-15 per cent in July-August to about 3-5 per cent in September.

Assuming no significant change in free

reserve levels and money market conditions, the System would be providing about $600 million of reserves between now and early September.

Sub-

sequently the System would be a moderate net seller until late September and early October. The foregoing projections lead to annual rates of increase for key monetary variables since last November, as follows: Dec. 1966 through May 1967

(4 months)

(6 months)

Nonborrowed reserves Bank credit proxy Proxy, including Euro-dollars

June 1967 through Sept. 1967

Money supply Time deposits

9% 12 (12)

14% 11 (10)

6

5

15

16

CONFIDENTIAL (FR)

-7-

August 11, 1967.

The more moderate expansion of bank credit and reserves foreseen for the coming month is not likely in itself to exert upward pressures on long-term interest rates since it basically reflects an expected moderation of private credit demands from their June-July high levels.

The tax message has also provided some basis for calming

the atmosphere in corporate and municipal markets.

However, many

uncertainties persist with respect to the timing and ultimate size of tax increases and to the reactions of businesses and consumers to a prospective additional tax bite.

Given these uncertainties, as well as

those surrounding the strike situation, a shortfall in bank credit expansion below the moderate rates projected for September cannot be ruled out as a possibility.

On the other hand, larger than projected

bank credit growth could stem from business loan demands associated with a stronger than anticipated turn-around in business inventory policies and somewhat larger than expected tax payments in September.

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

Period

As

Member banks borrowins I

revised

to

Free

reserves

date

Monthly (reserves weeks ending in):

As expected at conclusion of each

As first published each week

1966--July August September October November December

380 366 375 341 370 333

739 740 765 766 605 529

-359 -374 -390 -425 -235 -196

1967--January February March April May June July p

417

476 366 196 150 94 88 132

- 59 + 42 +172 +199 +270 +257 +309

180 145 178 98

+267 + 81 +300 +148

+339 +154 +312 +169

+300 +184 +305 +171

+271 +266 +281 +277 +279

+345 +260 +261 +288 +264

+343 +262 +291 +291 +264

+284 +325 +198 +304

+290 +339 +229 +292 +168 +604 +214 +417

+188 +319

Weekly: 1967--Apr.

May

June

July

368 349 364 345

441

market opeations 9

5 12 19 26

447 226

3 10 17 24 31

405 329 327 381

134 63 123 50 102

7 14 21 28

331 355 261 431

77 43 91 141

+254 +312 +170

5

462 643 236

353 69 51 54

+109 +185 +370

+152 +597 +195 +403

116 91

+175 +324

+206 +324

12 19 26 Aug.

408

478 246

404

424

2

291

9

415

p - Preliminary

+290 +574

week's open

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

Re s e rve Total

Toa Reserves

Ag gregates Required reserves

Nonborrowed Reserves

Reseres Re

Against

T Total

e Demand

D i(credit) Deposits

e

Monetary Var iables Money Supply Total Member Time Total Member

(crBank Deposits

Bak Deposits 1/2 -

Deposits

(comm.

2/ Total

.2/ banks)-

Private

Demand Deposits

Annually:

1965 1966

+ 5.2 + 1 2

+ 4.2 + 0.8

+ 5.1 + 1.4

+ 2.3 + 0.9

+ 9.1 + 3.7

+16.0 + 8.8

+ 4.7 + 2.2

+ 4.3 + 1.2

Monthly: 1966--Jan. Feb.

+ 9.3 + 2.3

+ 9.8 + 2.4

+ 8 0 + 1.1

+12.6 + 6.3

+ 8.1 + 5.0

+ 4.9 + 6.5

+ 7.9 + 2.9

+ 8.3 + 1.8

Mar.

+ 2.7

- 3.8

+ 2.7

- 2.2

+ 4.0

+12.1

+ 6.4

+ 6

Apr. May

+12.1 + 1.3

+ 8.4 - 0.4

+ 9.5 + 3.0

+ 6.7 + 3.9

+12.0 + 8.4

+16.0 +12.6

+ 9.2 - 2.1

+10.u - 4.5

June Jul. Aug. Sept.

+ 0.2 + 8.1 -15.2 + 4.5

+ 0.5 + 6.0 -13.0 - 2.0

+ + -

- 4.9 + 5.9 -11.5 - 4.5

+ + -

4.4 9.3 1.0 0.5

+11.0 +16.3 + 9.2 + 3.8

+ + +

2.8 4.9 1.4 2.8

+ + +

2.7 8.1 0.9 1.8

Oct. Nov.

-

6.9 3.1

- 6.4 + 8.3

- 3.0 - 3.1

-

-

4.4 3.4

+ 1.5 - 2.3

-

2.8 --

-

4.5 0.9

Dec.

- 0.9

- 0.7

+ 1.8

- 6.7

+ 2.0

+ 9.8

+ 2.1

1967--Jan.

+19.2

+26.0

+14.4

+14.0

+16.1

+16.5

- 0.7

- 2.7

Feb.

+11.5

+17.4

+12.0

+11.6

+15.9

+19.3

+ 8.5

+ 9.1

Mar. Apr. May June Jul.p

+21.6 + 2.5 - 0.4 + 8.4 +11.3

+29.4 + 4.7 + 4.9 + 4.9 +15.7

+15.3 + 8.1 - 1.2 + 4.8 +15.5

+ 9.8 + 5.0 - 2.1 - 2.8 +16.3

+14.3 + 9.9 + 5.6 + 8.8 +15.2

+19.0 +14.4 +13.5 +17.5 +14.5

+11.2 - 2.8 +12.5 +11.7 ' +11.6

+12.7 - 5.4 +15.3 +13.3 +14

1.7 4.9 8.4 1.0

7.2 0.5

+ 0.9

Includes all deposits subject to reserve requirements. Movements in this aggregate correspond closely with movements in total member bank credit. 2/ Changes in reserves, total deposits and time deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. 1/

Chart 1

MEMBER

BANK RESERVES

MONTHLY AVERAGES

OF DAILY FIGURES

I BILLIONS OF DOLLARS, SEASONALLY ADJUSTED

25.0

24.5

24.0

23.5

TOTAL

23.0

RESE

22.5

22.0

NET

BORRO

21.5

M

J

1966

S

D

M

J

1967

S

D

Chart 2

MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF DOLLARS

286

----

TOTAL MEMBER BANK DEPOSITS (CREDIT PROXY) SEAS

282

ADJ.

WEEKLY AVERAGE OF DAILY FIGURES

278

274

270

--- 266

--

262

258

254

r-

250

246

-

242

__

6

__

--

LIABILITIES TO OVERSEAS BRANCHES (WEEKLY REPORTING BANKS) NOT SEAS

ADJ,

WEDNESDAYS

S 1966

D

M

J 1967

S

D

Chart 3

MONEY SUPPLY AND BANK DEPOSITS SEASONALLY

ADJUSTED

WEEKLY

AVERAGES OF

DAILY

FIGURES

BILLIONS OF DOLLARS

180

190

175

185

170

180

165

175

160

170

165

TIME (All

DEPOSITS Commercial

ADJUSTED Banks)

160

155

150

145

25 NEGOTIABLE CD'S (Unadjusted)

20

15

10 J 1966

1967 * CHANGE

IN SERIES

Chart 4

DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS

45--_

_

_

_

_

_

_

_

_

_

_

_

_

_

_

_

_

_

_

_

_

MONEY SUPPLY COMPONENTS:

35

130

12 5

120

15

U.S. GOVT, DEMAND DEPOSITS (Member

Banks)

10

M

J

1966

D

M

J

1967

D

Table B-l 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 Gold Currency Technical Federal Reserve Gold credit (excl. outside factors

Period Period

banks

1/

_float)

=

Change in total

=Bank use of reserves Required Excess Excess reserves

reserves

3/

798 805

+1,089 +1,085

+1,188 +1,111

753

-

202 206

-

200 184

+ +

337 182

31 181

177

306 I 230

+ +

-

+ + +

-

407

+

129

59

+

188

net 2/

Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66)

+4,035 +3,149

-1,602 -

627

-2,143 -2,243

+1,884 +2,472

-

453 102

-

+1,090 + 88

+

2

-

99 26

Year-to-date: (12/29/65 - 8/10/66) (12/28/66 - 8/9/67) Weekly: 1967--July

Aug.

5 12 19 26 2 9

PROJECTED 1967--Aug.

Sept.

For For For See

882 479

-

-2,095

-

266

395 283 339

-

780

+ +

+

241

-

+ +

181 122

15 37

-

-

-

245

+

438

-

-

2 -2

51 8

+

82

-

133

-

132

+

124

/

16

-

220

--

+

125

-

105

-

200

-

200

23 30

+

150 105

--- + +

65 155

+ -

15 280

-

70 20

-

70 20

6 13 20 27

+ +

605 170 615 30

-----

+ + +

370 10 230 230

+ + -

30 230 675 160

+ + + +

205 70 290 100

+ + + +

205 70 290 100

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.

p - Preliminary.

--

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

Period

Supporting US. Gov't. demand deposits

U. S. Gov't.

Total

Supporting private deposits Other than seasonl han Seasonal changes seasonal changes Demand Time Demand Time

(Data reflect revision of seasonal factors)

ACTUAL Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66)

+1,188 +1,111

- 89 - 87

+1,277 +1,194

+ -

Year-to-date: (12/29/65 - 8/10/66) (12/28/66 - 8/9/67)

-

200 184

6 + 51

-

194 235

5 12 19 26 p

+ + + -

306 1 230 59

- 16 - 43 +188 + 69

+ + + -

2 p

+

82

-162

9 p

-

132

+ 30

-

Weekly: 1967--July

Aug.

1

4 4

+499 - 5

+ 677 +1,221 1

+ 885 -1,012

+ 86 + 91

-112 +776

+ -

717 10 2

322 44 42 128

+ + + -

147 29 88 162

+ 10 - 10 + 10 + 6

+145 + 12 - 92 + 11

+ + + +

20 13 36 17

244

+

133

-

+ 77

+

40

162

-

162

-

24

+

24

115 14

-

6 --

PROJECTED 1967--Aug.

16 23 30

-

200 70 20

-250 +120 -105

+ +

50 190 85

+ +

45 190 60

-- 5 - 10

- 15 - 15 + 15

+ + +

20 20 20

Sept.

6 13 20 27

+ + + +

205 70 290 100

+ 70 -150 - 25 +500

+ + + -

135 220 315 400

+ + + -

105 220 355 410

-

+ -

+ + + +

"0 -5 15 20

Reflects reserve requirements changes in July and September 1966. Reflects reserve requirements changes in March 1967. P - Preliminary. 1/

2/

5 -+ 25 + 5

15 15 30 15

Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes

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

Period

factors

Treasury

(net)

operations

ACTUAL

Float

Foreign

Other

deposits

nonmember

and gold loans (Sign indicates effect on reserves)

deposits and F. R. accounts

Year:

1965 (12/30/64 - 12/29/65)

+

798

+294

-171

+ 77

+598

1966 (12/29/65 - 12/28/66)

+

805

+673

+ 64

- 30

+ 98

Year-to-date: (12/29/65 - 8/10/66)

-

753

-230

-389

- 22

-112

(12/28/66 - 8/9/67)

-2,095

-512

-1,392

+ 15

-206 +152

Weekly: 1967--July

Aug.

5

-

266

-208

-177

- 33

12

+

395

+

2

+473

+

6

- 86

19 26

+ -

283 339

+ 47 -162

+143 -215

+ 3 + 10

+ 90 + 28

2 9

+

245 438

-178 +477

-193 - 54

+ 4 - 16

+122 + 31

16 23 30

+ -

105 15 280

-100 + 5 -

+ 25 +150 -280

--- - 30 -140 --

6 13 20 27

+ + -

30 230 675 160

-----

- 30 +185 +575 -160

PROJECTED 1967--Aug.

Sept.

-

--- -+ 45 +100 --

Table B-4 SOURCE OF FEDERAL RESERVE CREDIT

Retrospective Changes (Dollar amounts in millions of dollars, based on weekly averages of daily figures) Total Federal Reserve credit (Excl. float)

Period

U.S. Government securities Total s Other Repurchase agreements holdins

Federal Agency Securities

Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66)

+4,035 +3,149

+3,916 +3,069

+3,145 +2,158

+916 +474

-145 +437

+ 26

Year-to-date: (12/29/65 - 8/10/66) (12/28/66 - 8/9/67)

+1,884 +2,472

+1,731 +3,010

+1,161 +2,765

+439 +776

+131 -531

- 55

Weekly: 1967--June

227 357 58* 286*

125 315 651 223

+ 87 + 42 + 44 +126

+ + -

+1,090 + 88 - 780 + 241

866 347 682 244

766 346 630 244

+ 65

+ 35 + 1 - 52

+ +

118

118

7 14 21 28

+ + +

July

5 12 19 26

Aug.

2 9

a

228 420 105 391

181 122

-

Member banks

+ 77 + 52

+ 42 + 2

- 83

+236 - 26

-457

+ +

2 2

-

25 34 48 50

+212 -284 - 18 + 3 + 62 - 25

+127

29

98

+ -

15 84 67 51

Bankers'

--

.

-

* - Includes effect of change in special certificates of +$12 million of the week of June 21, 1967 and -$12 million of the week of June 28, 1967.

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

Per iod

1965--Jul. Aug. Sept.

Oct. Nov.

Dec. 1966--Jan. Feb, Mar. Apr. May June Jul. Aug.

Sept, Oct. Nov.

Dec. 1967-,Jan. Feb. Mar. Apr. May June Jul. p

STotal reserves

Nonborrowed serves reserves

21,857 21,923 21,869 21,986 21,976 22,186

21,356 21,417

22,358 22,401 22,452 22,679 22,703 22,707 22,861 22,571 22,655 22,524 22,465 22,449

21,899

22,808 23,026 23,441 23,490 23,482 23,646 23,869

Required reserves Total Aainst private Demand deposits TotalTotal Total Demand 21,488 21,533 21,494 21,645 21,671 21,861

20,626 20,719 20.904 21,073 21,170 21,285

15,921 15,943 16,065 16,147 16,196 16,266

21,943 21,873 22,027 22,020 22,030 22,140 21,900 21,864 21,748 21,898 21,885

22,007 22,028 22,077 22,252 22,308 22,339 22,431 22,274 22,256 22,200 22,142 22,175

21,411 21,464 21,600 21,771 21,782 21,883 21,841 21,842 21,860 21,741 21,716 21,772

16,375 16,413 16,506 16,605 16,562 16,606 16,512 16,473 16,475 16,365 16,364 16,378

22,360 22,685 23,240 23,332 23,428 23,523 23,830

22,442 22,666 22,955 23,110 23,086 23,178 23,477

21,803 22,044 22,297 22,293 22,559 22,890 23,053

16,328 16,478 16,647 16,578 16,786 17,024 17,120

21,318 21,533 21,589 21,722

p - Preliminary.

1/

Reserves have been adjusted for redefinition of time deposits effective June 9, 1966

Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar amounts in billions, based on monthly averages of daily figures) (SERIES REVISED) Monthly

Total member bank deposits (credit)

1965--Jul. Aug.

/2/

Time deposits2

Private demand

U.S. Gov't. demand

deposits 3/

deposits

229.1 230.4

113.6 115.4

108.6 108.8

6.8 6.3

Sept. Oct. Nov.

231.4 233.5 234.8

116.9 119.0 120.2

109.6 110.1 110.5

4.9 4.4 4.1

Dec.

236.4

121.2

111.0

4.2

1966--Jan. Feb. Mar.

238.0 239.0 239.8

121.7 122.0 123.0

111.7 112.0 112.6

4.7 5.0 4.2

242.2 243.9 244.8 246.7 246.5 246.4 245.5 244.8 245.2

124.8 126.1 127.5 128.7 129.7 130.1 129.9 129.3 130.3

113.3 113.0 113.3 112.6 112.4 112.4 111.6 111.6 111.7

4.1 4.8 4.0 5.3 4.4 3.9 4.0 4.0 3.2

248.5 251.8 254.8 256.9 258.1 260.0 263.3

132.2 134.4 136.5 138.0 139.4 141.7 143.3

111.4 112.4 113.6 113.1 114.5 116.1 116.8

4.9 5.0 4.8 5.8 4.1 2.2 3.2

Apr. May June Jul. Aug. Sept. Oct. Nov. Dec. 1967--Jan. Feb. Mar. Apr. May June Jul.p

l/

2/ 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. Deposits have been adjusted for redefinition of time deposits effective June 9. 1967. Private demand deposits include demand deposits of individual, partnerships and corporations and net interbank balances.

TABLE C-2a DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL EMBER BANKS Seasonally adjusted (Dollar amounts in billions,

based on weekly averages of daily figures)

(SERIES REVISED) Total member

Time

Private

demand bank deposits deposits 2/ deposits 3/ 1/ 2/ (creditl

Week ending:

1967--Apr.

U. S. Gov't. demand deposits

4.7 5.5

138.1 138.3

113.9 113.5 112.9 112.4

256.0 256.8 257.1 257.4

137.5

137.9

6.0 6.7

May

3 10 17 24 31

257.7 258.0 258.1 257.9 258.4

138.5 138.8 139.3 139.8 140.3

113.1 113.3 114.9 114.9 115.4

6.1 5.9 3.9 3.2 2.7

June

7 14 21

28

259.3 260.2 261.2 259.9

140.9 141.6 141.8 142.1

115.9 116.1 116.2 116.2

2.6 2.6 3.2 1.6

5

260.4

116.9 117.2 116.6 116.7

1.0 1.6 4.0 4.3

117.1 117.0

4.3 4.6

Jul.

Aug.

12

261.7

19 26 p

263.9 264.6

142.5 142.9 143.4 143.6

2 p 9 p

265.8 266.5

144.4 144.9

p - Preliminary. 1/ 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/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1967. 3/ Private demand deposits include demand deposits on individuals, partnerships and corporations and net interbank balances.

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) (SERIES REVISED--For internal use only. To be released after publication of August Federal Reserve Bulletin only.) Y

Monthly

Money Supply

Currency 1/ I~~

1965--Jul. Aug. Sept. Oct.

Nov. Dec. 1966--Jan. Feb. March Apr. May June Jul. Aug. Sept. Oct. Nov. Dec. 1967--Jan. Feb. Mar. Apr. May June Jul. p

1/

'

Private Demand I

Denosits 2/ -

Time Deposits Adjusted 3/ t

162.4 163.2 164.0 165.2 165.7 166.8

35.3 35.5 35.7 36.0 36.1 36.3

127.2 127.8 128.4 129.3 129.6 130.5

137.9 139.8 141.6 143.8 145.5 146.9

167.9 168.3 169.2 170.5 170.2 170.6 169.9 170.1 170.5 170.1 170,1 170,4

36.6 36.7

131.4 131.6 132.3 133.4 132.9 133.2 132.3 132.4 132.6 132.1 132.0 132.1

147.5 148.3 149.8 151.8 153.4 154.8 156.9 158.1 158.6 158.8

131.8 132.8 134.2 133.6 135.3 136.8 138.4

162.0 164.6 167.2 169.2 171.1 173.6 175.7

170.3 171.5 173,1 172.7 174.5 176.2 177.9

36.9 37.1 37.3 37.4 37.7 37.8 37.9

38.0 38.1

38 3 38.5 38.7

38.9 39.1 39.2 39.3 39.5

158.5 159.8

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. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary.

TABLE C-3a MONEY SUPPLY AND TIME DEPOSITS AT ALL COMMERCIAL BANKS

Seasonally Adjusted (Dollar amounts in billions, based on weekly

averages of daily figures)

(SERIES REVISED--For internal use only. To be released after publication of August Federal Reserve Bulletin only.)

Money Supply

Week Ending

Currency 1/

Private Demand 2/

__Deposits

1967--Apr.

Time Deposits ad adusted

173.4 173.1 172.6 172.1

39.1 39.1 39.1 39.1

134.3 134.0 133.5 133.0

168.3 169.0 169.5 169.6

May

3 10 17 24 31

172.8 173.0 174.7 174.8 175.6

39.1 39.1 39.1 39.2 39,3

133.7 133.9 135.6 135.6 136.3

169.9 170.4 171.0 171.5 172.2

June

7 14 21 28

176.0 176.3 176.4 176.4

39.3 39.4 39.4 39.4

136.7 136.9 137.0 136.9

172.6

5 12 19 26 p

177.6 178.1 177.7 178.1

39.4 39.5 39.4 39.7

138.2 138.6 138.3 138.5

174.6

2 p 9 p

178.3 178.4

39.4 39.6

138.9 138.8

176.7 177.6

July

Aug.

3/

173.6

173.7 173.9

175.4 175.8 176.0

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 of Federal Reserve Banks. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary.

Cite this document
APA
Federal Reserve (1967, August 14). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19670815
BibTeX
@misc{wtfs_bluebook_19670815,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1967},
  month = {Aug},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19670815},
  note = {Retrieved via When the Fed Speaks corpus}
}