Bluebook
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Content last modified 6/05/2009.
CONFIDENTIAL (FR)
September 8, 1967.
MONEY MARKET AND RESERVE RELATIONSHIPS
Recent developments Bank credit expansion slackened markedly in the last three statement weeks of August as measured by the proxy, although increasing at a 17 per cent annual rate for the month on average (and 18½ per cent, after including the rapid increase in Euro-dollar borrowings in August).
Outstanding business loans contracted sharply last month,
but banks' holdings of U.S. Government securities continued to rise on balance.
Until the last week in August weekly reporting banks
continued for the most part to be moderate net sellers of Treasury bills following their massive increase in holdings in connection with the large early July Treasury tax bill issue.
However, holdings of
U.S. Government securities rebounded toward the end of August, as banks participated heavily in the $2.5 billion Treasury cash financing involving a 3½ year note with a 5-3/8 per cent coupon (that could be paid for with full tax and loan credit) and purchased Treasury bills in the market. Generally, the U.S. Government's financing needs have been the principal influence tending to enlarge bank credit expansion
during the past two months.
Treasury debt offerings were reflected
not only in the investment and underwriting function of banks but also in the position of Government security dealers.
Dealers built up bill
positions in early July and generally maintained them at advanced levels
FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, where available, weekly averages of daily figures) arket Indicators Bond Yields Flow of Reserves. Bank Credit and Money Bank T NonTotal Corporate MuniciBorrowFederal 3-month
Money Free
teserves
ings (In millions of dollars)
Period Period
Funds Rate
Treasury Bill
U.S. Gov't. (20 y.)
New pal (Aaa) Issues (Aaa)I/
borrowed ReReserves serves (I iionlrs
Credit Supply upply Deposits 2 Proxy (In billions of dollars)
(Seasonally Adjusted) '966--Aug. Sept. Oct. Nov. Dec.
-374 -390 -425 -235 -196
740 765 766 605 529
5.45 5.30 5.46 5.75 5.39
4.95 5.36 5.33 5.31 4.96
4.95 4.94 4.83 4.88 4.76
5.64** 5.82** 5.70** 5.71 5.73
3.91 3.93 3.82 3.78 3.79
-240 - 36 -116 +150 - 13
-290 + 84 -131 - 59 - 16
+
0.2 0.1 0.9 0.6 0.4
+ 0.2 + 0.4 - 0.4 -+ 0.3
+ + + +
1967--Jan. Feb.
- 59 42
476 366
4.87 4.99
4.72 4.56
4.51 4.61
5.43 5.18
3.50 3.38
+475 +325
+359 +218
+ 3.3 + 3.3
- 0.1 + 1.2
+ 2.2 + 2.6
Mar. Apr
172 199
196 150
4.50 4.03
4.26 3.84
4.56 4.64
5.31 5.38
3.47 3.50
+555 + 92
+415 + 49
+ 3.0 + 2.1
+ 1.6 - 0.3
+ 2.6 + 2.0
May
275
94
3.94
3.60
4.90
5.62
3.71
+ 96
-
8
+ 1.2
+ 1.6
+ 1.9
June July Aug p
257 317 263
88 132 86
3.97 3.78 3.88
3.53 4.20 4.26
4.99 5.01 5.12
5.79 5.78 5.89**
3.80 3.86 3.78
+ 95 +313 +275
+164 +229 +243
+ 2.0 + 3.2 + 3.7
+ 1.7 + 1.7 + 1.2
+ 2.5 + 2.2 + 2.6
p p p p
179 295 237 411 195
116 91 129 47 46
3.75 4.02 4.07 3.97 3.53
4.15 4.17 4.18 4.29 4.42
5.07 5.09 5.12 5.13 5.14
5.82 5.84 5.92 5.99** 5.97
3.75 3.75 3.80 3.80 3.80
+ + + +
+ 0.5 + 0.5 + 0.4 --- + + + + +
6 p
288
79
4.03
4.33 5.11 Ave ages
5.83**
3.80
1967--Aug.
Sept
2 9 16 23 30
1.2 1.2 0.3 0.2 0.2
+ 2.3 + 0.4 Annual rates of increase 3/
1.2 0.7 0.2 0.3 1.3
0.7 1.0 0.5 0.3 0.6
+ 0.2
Year 1966
-283
672
5.06
4.85
4.77
5.41
3.67
+ 0.8*
+ 1.2*
+ 3.7*
+ 2.2
+ 8.8*
Second Half 1966 First Half 1967
-338 153
763 222
5.39 4.38
5.12 4.09
4.87 4.70
5.74 5.45
3.83 3.56
- 1.3* +15.0
- 2.3* +10.7
+ 0.3* +12.1
- 0.2 + 6.8
+ 6.5* +17.3
Recent variations in growth July 6-Nov 16 Nov. 16-Mar 29 Mar. 29-Sept. 6
-346 - 23 264
732 397 107
5.43 5.01 3.94
5.13 4.70 3.91
4.89 4.64 4.92
5.72 5.36 5.73**
3.85 3.57 3.74
- 2.1 +12.4 +11.6
- 0.6 + 5.6 + 8.1
+ 4.2 +16.4 +15.5
1/
Includes issues carrying 5-year and 10-year call protection; ** issues carry a 5-year call protection. Time deposits adjusted at all commercial banks. Base is change for month preceding specified period or in case of weekly periods, the first week shown. Changes have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. September 8, 1967.
2/ 3/
CONFIDENTIAL (FR)
-2-
September 8, 1967.
Positions in coupon issues have fluctuated widely with
through August.
the recent Treasury refunding and cash financing.
In view of uncertain-
ties as to the future course of interest rates, dealers were unusually quick to dispose of the 15-month note obtained in the mid-August refunding, despite the large positive carry available with 5¼ per cent coupon issue relative to borrowing costs that have frequently been around 4 per cent. Dealers have recently experienced a positive carry on practically all Treasury issues in portfolio, with the exception of the 1-month bill.
The ready availability of short-term funds to banks, both
from domestic sources and from abroad, along with a usual seasonal improvement in New York banks' basic reserve position, contributed to an easing in the Federal funds and dealer loan markets.
In the latter
part of August the Federal funds rate fell to a level generally below 4 per cent and new dealer loan rates also frequently dropped below that level.
In consequence, dealers relied increasingly on banks to finance
their positions, with more than three-fifths of dealer borrowings at banks as compared with one-third a year ago August.
In early September,
however, both Federal funds and dealer loan rates moved back to 4 per cent and above. Banks were able to increase both their outstanding negotiable CD's and their liabilities to foreign branches each by $600 million further over the period from August 2 to August 30.
The inflows of
such funds appeared larger to some banks than immediate loan demands
CONFIDENTIAL (FR)
-3-
September 8, 1967.
justified, even with the mid-September tax date and potential CD runoffs approaching, and there were recent reductions in rates on CD's maturing within three months by a few major banks.
During the first
week of September outstanding CD's declined markedly at New York City banks. On average in August all time and savings deposits at commercial banks rose at a
17.5 per cent annual rate, while the money
supply rose by 8 per cent.
The private money supply showed no growth
in the last half of August, even though U.S. Government deposits declined during the last three weeks of the month. In support of the August expansion in total deposits, total reserves rose at a 12 per cent annual rate, somewhat less than the expansion in required reserves, as banks economized to a degree on excess reserves.
The 3-month bill rate fluctuated in a 4.15 - 4.45
per cent range since the last meeting of the Committee, and such a relatively high level of rates may have induced some banks to move, at the margin, out of Federal funds into bills.
During the four statement
weeks ending September 6, member bank borrowings averaged $75 million and free reserves $283 million, little changed from the previous four weeks. Annual rates of increase for key monetary variables during the past nine months ending August are shown below in comparison with rates for the equivalent period a year earlier when policy was tightening.
September 8, 1967.
CONFIDENTIAL (FR)
December through August, inclusive 1965-66 1966-67 3.6% 1.9
Total reserves Nonborrowed reserves Bank credit Proxy Proxy, including Euro-dollars End of month series Business loans of banks
9.8% 13.5 12.1 12.4 12.2 6.9
6.6 8.3 9.3 18.2
Time deposits Money supply U.S. Government deposits
16.7 7.1 -7.3
11.5 3.5 8.2
Prospective developments Maintenance of prevailing money market conditions over the next three weeks would appear to encompass a Federal funds rate averaging 4 per cent or a little below, dealer new loan rates in New York in a 4 1/8 - 4-3/8 per cent range, a 3-month Treasury bill rate in a 4.15 4.45 per cent range, member bank borrowings averaging between $50 and $100 million, and free reserves between $200 and $300 million.
The
approaching September tax date is not expected to generate any sizable problems, but, as the basic reserve deficiencies of major reporting banks enlarge, it will be a factor adding at the margin to market pressures and tending to forestall the re-emergence of Federal funds and dealer loan rates as low as in late August. The 3-month bill rate could decline toward the lower end of the indicated range because of the attractive maturity dates around the mid-December tax period and year-end for such bills to be auctioned in the period immediately ahead.
There might also be some downward
CONFIDENTIAL (FR)
-5-
September 8, 1967.
pressure on bill rates generally because the auto strike may reduce some short-term credit demands from, say, finance companies.
However,
the market impact of the work stoppage is likely to be minor so long as it is limited to one firm. As an offset to such downward tendencies, dealer bill positions are relatively high, and bill rates normally show a seasonal rise in September.
The System will not be a buyer in the market until late
September and early October, when System security purchases might exceed $1 billion.
At around that time, however, it is likely that
the market will be focusing on Treasury cash needs in October; current market expectations appear to be for a $4 - $5 billion Treasury tax bill financing later in October.
In general, the course of bill rates
will be strongly influenced by the strength of demand for bills from businesses and banks; such demands could be substantial so long as business loan demand from banks remains quite moderate, as currently expected, and as corporations rebuild the liquid assets that were depleted in making the large second quarter tax payments. It is not expected that banks will aggressively offer negotiable CD's in the weeks immediately ahead. $300 - $500 million in September.
We are assuming a CD run-off of
CD's maturing in September total
$5.1 billion, slightly less than last year, but considerably more than in 1965.
Corporate income tax payments, projected at $4.3 billion, in
September are about the same as in the last two years, but payments to the Treasury of withheld personal income and social security taxes are
CONFIDENTIAL (FR)
-6-
projected higher than in the preceding two years.
September 8, 1967.
These statistical
comparisons suggest a moderate CD run-off in September.
The sizable
build-up in CD's and Euro-dollars during recent months might be a factor limiting banks' interest in quickly replacing maturing CD's. Increases in other time and savings deposits are projected at near recent rates, with the total of time and savings deposits expected to rise in an 11 - 13 per cent range in September on average. Private demand deposits at banks are not likely to show any significant expansion in September, and may well decline somewhat, as over-all loan demands on banks are not expected to be very substantial in the coming weeks.
Real estate loans are likely to continue expanding
at near recent rates, and outstanding business loans will turn up after their sharp August decline.
However, business loans are likely to rise
at only a moderate pace since the great bulk of accelerated tax payments are now behind us.
On the other hand, loans to security dealers, which
were an important force sustaining bank credit expansion in the last two months, are not expected to rise further and may fall on average in September as Government security dealers' positions are reduced in the course of the month. With such time and private demand deposit behavior, and with U.S. Government deposits showing a slight rise on average during the month, the bank credit proxy may rise in a 9 - 12 per cent range during September.
However, the auto strike and possibilities of a
sharper reduction in demand for security loans than allowed for and less bank interest in CD's suggest that the odds on a rate of growth
September 8, 1967.
-7-
CONFIDENTIAL (FR)
at the lower end of the range, or even a little lower, are not trivial. A bank credit expansion in the projected range, with loan demands moderate, will permit banks to add substantially to their security holdings.
This would be an influence tending to moderate
upward interest rate pressures in the municipal market that might stem from the enlarged September calendar and would add to investment demands in the markets for intermediate-term Treasury coupon issues and for Treasury bills.
In the corporate market, the somewhat less heavy
calendar of new issues may serve to keep yields from rising significantly further, and additional declines as the month progresses cannot be ruled out. If the Committee wishes to alter monetary policy in a firming direction, it may have in view a set of money market conditions entailing a Federal funds rate trading frequently at 4 1/8 per cent, member bank borrowings consistently between $100 and $150 million, and free reserves averaging in a $100 - $200 million range.
Such a policy would exert
upward pressure on bill rates, and the 3-month bill is likely to approach and perhaps exceed 4½ per cent.
Because market participants are very
sensitive to the possibility of a change in monetary policy at this juncture, the tighter stance would probably be quickly detected and translated into sizable expectational rate increases, especially in the intermediate- and longer-term maturity range.
How far and how long
such market adjustments might run would depend in good part on the intensity of the discussions likely to follow as to implications for
-8-
CONFIDENTIAL (FR)
September 8, 1967.
further monetary policy action, disintermediation, Regulation Q, and changes in the mix of fiscal and monetary policies. The possible effect of any such firming of market conditions on bank credit growth might well be perverse in the first few weeks. Banks may increase efforts to capture such CD funds as they could while rate ceilings permitted and also to accelerate inflows of Euro-dollars. Subsequent moderation of bank deposit expansion might prove either gradual or abrupt, depending upon how tightly CD rates crowded up against Regulation Q ceilings. Money market conditions intermediate between those currently prevailing and those indicated just above as consistent with a firming policy could be permitted to develop if bank credit growth brought the proviso clause of a "no change" directive into play.
In that event, the Federal
funds rate might still average around 4 per cent, but be more frequently above than below that rate, and member bank borrowings average closer to $100 million.
The expectational impact of such a shading in market
conditions is likely to be less than if firmer money market conditions are sought.
While there may be some risks in such a course, the odds
are that no significant disintermediation is likely to be triggered by so slight an adjustment, and long-term rates also may show only a minor response.
Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess reserves
Period
As
Member banks
Free
borrowings
revised
to
reserves
date
I
_____________
Monthly (reserves weeks ending in):
As first published each week
As expected at conclusion of each week's open
1966--August September October November December
366 375 341 370 333
740 765 766 605 529
-374 -390 -425 -235 -196
1967--January February March April May June
417 408 368 349 364 345 449 349
476 366 196 150 94 88 132 86
- 59 + 42
+172 +199 +270 +257 +317 +363
3 10 17 24 31
405 329 404 327 381
134 63 123 50 102
+271 +266 +281 +277 +279
+345 +260 +261 +288 +264
+343 +262 +291 +291 +264
7 14 21
331 355 261 431
77 43 91 141
+254 +312 +170 +290
+284 +325 +198 +304
+290 +339 +229 +292
12 19 26
462 643 236 453
353 69 51 54
+109 +574 +185 +399
+152 +597 +195 +403
+168 +604 +214 +417
2 9p 16 p 23 p 30 p
295 386 366 458 241
116 91 129 47 46
+179 +295 +237 +411
+206 +324
+195
+422 +182
+188 +319 +269 +438
6 p
367
79
+288
+288
July August p
Weekly: 1967--May
June
28 July
Aug.
Sept.
5
p - Preliminary
market opeations
+258
+202
+219
TABLE A-2 AGGREGATE RESERVES AND RELATED MEASURES (In
Retrospective Changes, Seasonally Adjusted per cent, annual rates based on monthly averages of daily figures) Ag gr e
Reserve
ates
Monet ary
Required reserves Total Reserves
Nonbor ed Nonborroved Reserves
Total Member
Against Demand
Total
Monthly: 1966--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. Nov. Dec.
+ 5.2
+ 1.2 + 9.3 + 2.3 + 2.7 +12.1 + 1.3 + 0.2 + 8.1 -15.2 + 4.5 -
6.9 3.1 0.9
+ 4.2 + 0.8
Deposits (comm.
Bank Deposits Bank Deposits (credit) 1/
Mone Total
banks) -
-
Deposits
Annually: 1965 1966
Variables
Time
Su pply Private Demand Deposits
+ 5.1 + 1.4
+ 2.3 + 0.9
+ 9.1 + 3.7
+16.0 + 8.8
+ 4.7 + 2.2
+ 4.3 + 1.2
+ 9.8
+80
+ 2.4 - 3.8
+12.6 + 6.3
+ 8.4
+ 1.1 + 2.7 + 9.5
+ 8.3 + 1.8 + 6.4 +10.0
- 0.4
+ 3.0
+ 1.7 + 4.9
+ 4.9 + 6.5 +12.1 +16.0 +12.6 +11.0 +16.3 + 9.2 + 3.8
+ + + +
+ 0.5 + 6.0 -13.0
+ 8.1 + 5.0 + 4.0 +12.0 + 8.4 + 4.4 + 9.3
+ 1.5 - 2.3
- 2.8
+ 9.8
+ 2.1
- 2.0 - 6.4
+ 8.3 - 0.7
-
-
2.2
+ 6.7 + 3.9 - 4.9
+ 5.9 -11.5
8.4 1.0 3.0 3.1
- 4.5 - 7.2 - 0.5 - 6.7
+ 1.8
+14.0 +19.2 +26.0 +14.4 +11.6 +11.5 +17.4 +12.0 +21.6 +29.4 +15.3 + 9.8 + 5.0 + 2.5 + 4.7 + 8.1 - 2.1 - 0.4 + 4.9 - 1.2 -2.8 + 4.8 + 8.4 + 4.9 +16.1 +16.0 +11.6 +16.0 Aue. D +13.8 +16.1 +14.1 ", +12.2 ' '' ' ' l/ Includes all deposits subject to reser ve requirements. movements in total member bank credit.
1967--Jan. Feb. Mar. Apr. May June Jul.
,
- 1.0 - 0.5 - 4.4 - 3.4
+ 2.0
7.9 2.9 6.4 9.2
- 2.1
- 4.5
+ 2.8
+ 2.7
- 4.9
- 8.1
+ 1.4 + 2.8
+ + +
0.9 1.8 4.5 0.9 0.9
+16.1 +16.5 - 0.7 - 2.7 +15.9 +19.3 + 8.5 + 9.1 +14.3 +19.0 +11.2 +12.7 + 9.9 - 2.8 - 5.4 +14.4 +12.5 + 5.6 +15.3 +13.5 +11.7 +13.3 + 8.8 +17.5 +15.2 +15.2 +11.6 +14.0 +10.4 +17.7 + 8.1 +16.9 "' Movements in this aggregate correspond closely with ,
Changes in reserves, total deposits and time deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. 2/
Chart 1
MEMBER BANK RESERVES MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS, SEASONALLY ADJUS
25.0
24.5
24.0
23.5
-
RI
TOTAL
23.0
22.5
--- NONBORROWED 22.0
RESERVES
__
NET
21.5
BOR
RVES
BILLIONS OF DOLLARS
1.0
MEMBER .5
-
o
o EXCESS
0 1
R i
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) 282 SEAS
ADJ
AVERAGE OF DAILY FIGURES
WEEKLY
278
274
270
266
262
258
254
250
246 242 6
LIABILITIES TO OVERSEAS BRANCHES (WEEKLY NOT SEAS
ADJ,
-------
--
4
REPORTING BANKS)
WEDNESDAYS
2
0
I S
I|
I D
SES967WENSDY 1966 1966
M
J 1967
S
D
Chart 3
MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED
WEEKLY
AVERAGES OF
DAILY
FIGURES
BILLIONS OF DOLLARS
BILLIONS OF DOLLARS
180
_
__
_
_-~190
175
-~185
170
IS18
165
160
--
----
_
___
__
__
____
____
______
____
__ ____
_
_
___
-
170
-
-165
__
____
___
--
25
_
i175
____
_ ____ ___
_
___
-155
-
-
__
NEGOTIABLE CD'S (Unadjiu st ed) 20
15
10-_
_
M
_
_
_
_
_
J
1966
_
_
_
S
_
__
_
D
M
_
_
_
_
_
_
JS
D
1967 * CHANGE IN SERIES
145
Chart 4
DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS
MONEY SUPPLY COMPONENTS: CURRENCY
OUTSIDE
BANKS
i
30
140
DEMAND
135
130
-
125
I
DEPOSITS
120
U.S.
GOVT.
(Member
DEMAND DEPOSITS Banks)
iiiiiiiiiiiiiiiiij
1966
1967
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 = Change Federal Reserve Gold Currency Technical in credit (excl. o outside factors total k sstock reserves net 2/ banks float) 1/
Period
Year: 1965 (12/30/64 - 12/29/65)
= Bank use of reserves Required Excess reserves reserves 3/
+4,035
-1,602
-2,143
+
798
+1,089
+1,188
-
99
+3,149
-
627
-2,243
+
805
+1,085
+1,111
-
26
+2,245 +2,158
-
528 151
-
952 523
-1,174 -1,694
-
411 211
-
285 141
-
126 70
2 9 p 16 p
+ + -
181 122 226
-
15 37
+ +
33 517 71
+ -
245 438 81
-
47 6 234
+ -
111 85 214
+ -
158 91 20
23 p 30 p
-
300 263
+ -
1 14
+ +
125 242
+ -
203 273
+ -
29 311
-
63 94
+ -
92 217
6
+
475
-
36
-
503
+
552
+
490
+
364
+
126
1966 (12/29/65 -
12/28/66)
Year-to-date: (12/29/65 - 9/7/66) (12/28/66 - 9/6/67)
Weekly: 1967--Aug.
Sept.
p
PROJECTED 1967--Sept.
Oct.
For For For See
--
4
13 20
-1,000 120 +
--- + +
175 55
+ +
845 120
+ +
20 295
+ +
20 295
27
+
450
--
+
260
-
660
+
50
+
50
4 11 18 25
+ + -
725 245 485 240
-----
+ +
265 310 80 245
-
350 -+ 370 + 160
+ +
110 65 35 165
+ +
110 65 35 165
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 U. S. Gov't. demand deposits I
Supporting private deposits Seasonal changes
Total
Demand
9
Time
I
Other than seasonal chan2es Demand Time C
ACTUAL
Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66)
+1,277 +1,194
+
115
-
14
-
-1,024
+1,188 +1,111
-
89 87
(12/29/65 - 9/7/66) (12/28/66 - 9/6/67)
-
285 141
-
183
-
111
Weekly: 1967--Aug.
2 9 16 23 30
+
111
-
85 214 63 94
+ + -
163 7 227 75 157
274 92 13 138 63
6
+
364
+
173
191
+ + + + +
20 295 50 110 65 35 165
+ +
140 45 465 35 195 255 125
-
4 4
+ -
499 5
+ 677 +1,221 1/
Year-to-date:
Sept.
102 30
-
755 4 2/
997
6
+
107
- 5 - 11
+ + -
36 51 41 18
40 34 19 17 34
-
5
+
79
14
+ + +
-25 5 5 5 5 5
+ + + -
75 15 15 15 100 90 15
-
PROJECTED 1967--Sept.
Oct.
13 20 27 4 11 18 25
+ + + + + +
160 340 415 145 130 220 40
1/ Reflects reserve requirements changes in July and September 1966 /2 Reflects reserve requirements changes in March 1967. p - Preliminary.
+ + + + + +
220 365 425 105 15 115 30
+ + + + + + +
15 15 20 20 20 20 20
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 Year: 1965 (12/30/64 1966 (12/29/65
Foreign deposits Float Treasury and gold operations loans (Sign indicates effect on reserves)
Other nonmember Leposits and . R. accounts
+
798
294 673
+
171 64
77
805
+ +
+
+
-
30
Year to date: (12/29/65 - 9/7/66) (12/28/66 - 9/6/67)
-1,174 -1,694
-
82 233
-
959
+
12 10
Weekly: 1967-Aug.
-
245
-
178
+
79 7 34
+ -
193 54 18 247 324
+ +
14 16 2 7 12
122 31 14 30 73
S 12
45
- 12/29/65) - 12/28/66)
+
438
16 23 30
+ -
81 203 273
6
+
552
+
399
+
120
19 7--Sept.13 20 27
+ + -
845 120 660
+ -
730 530 500
+ + -
80 550 160
4
-
350
--
-
350
+ +
370 160
--- + +
220 160
Sept.
477
-1,367
-
-
121 104
PROJECTED 6
Oct.
--- + +
35 100 --
--
+
150 --
11 18 25
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
Period
[(Excl.
float)
U.S. Government securities Total is er Repurchase I
holdings
Federal Agency
+4,035 +3,149
+3,916 +3,069
+3,145 +2,158
+916 +474
-145 +437
+ 26
Year-to-date: (12/29/65 - 9/7/66) (12/28/66 - 9/6/67)
+2,245 +2,158
+2,125 +2,766
+1,907 +2,509
+439 +828
-221 -571
- 20
5 12 19 26
+1,090 + 88 -
780
+
241
+ + +
866 347 682 244
+ + +
766 346 630 244
2 9 16 23 30
+ +
181 122
-
226 300 263
+ + -
118 98 217 210 255
+ -
118 29 200 100 255
6
+
475
+
438
+
299
Aug.
Sept.
Member banks borrowings I
Securities
I agreements
tear: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66)
Weekly: 1967--July
Bankers' acceptances
+ 77
+ 42
+ 52
+
- 83
+203 -469
-119
+
+212 -284
9
+ 23 - 75
+127
+ -
- 17
-110
+
+ 87
I
-
2 2 6
-
2
- 18
6
+
3
+ 1 + 49
+ + -
62 25 38 82
-
1
-
49
-
6 7
-
2
+ 33
-
Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES 1/ Seasonally Adjusted
(Dollar amounts in millions, based on monthly averages of daily figures) Total Period
Total
reserves
Nonborrowed rrve
reserves
Totl
Total
Required reserves Against private deposits Total Total
Demand
Demand
1965--Jul. Aug. Sept. Oct. Nov. Dec.
21,857 21,923 21,869 21,986 21,976 22,186
21,356 21,417 21,318 21,533 21,589 21,722
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
1966--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. Nov. Dec.
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 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
1967--Jan. Feb. Mar. Apr. May June Jul. Aug. p
22,808 23,026 23,441 23,490 23,482 23,646 23,875 24,118
22,360 22,685 23,240 23,332 23,428 23,523 23,836 24,111
22,442 22,666 22,955 23,110 23,086 23,178 23,487 23,803
21,803 22,044 22,297 22,293 22,559 22,890 23,053 23,274
16,328 16,478 16,647 16,578 16,786 17,024 17,119 17,244
p - Preliminary.
1/
effective June 9, 1966. Reserves have been adjusted for redefinition of time deposits
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)
Monthly
Total member bank deposits (credit) 1/ 2/
deposits2
Private demand deposits 3/
Time
U.S. Gov't. demand deposits
1965--Jul. Aug. Sept. Oct. Nov. Dec.
229.1 230.4 231.4 233.5 234.8 236.4
113.6 115.4 116.9 119.0 120.2 121.2
108.6 108.8 109.6 110.1 110.5 111.0
6.8 6.3 4.9 4.4 4.1 4.2
1966--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. Nov. Dec.
238.0 239.0 239.8 242.2 243.9 244.8 246.7 246.5 246.4 245.5 244.8 245.2
121.7 122.0 123.0 124.8 126.1 127.5 128.7 129.7 130.1 129.9 129.3 130.3
111.7 112.0 112.6 113.3 113.0 113.3 112.6 112.4 112.4 111.6 111.6 111.7
4.7 5.0 4.2 4.1 4.8 4.0 5.3 4.4 3.9 4.0 4.0 3.2
1967--Jan. Feb. Mar. Apr. May June Jul. Aug. p
248.5 251.8 254.8 256.9 258.1 260.0 263.3 267.0
132.2 134.4 136.5 138.0 139.4 141.7 143.3 145.6
111.4 112.4 113.6 113.1 114.5 116.1 116.8 117.6
4.9 5.0 4.8 5.8 4.1 2.2 3.2 3.7
1/
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 MEMBER BANKS Seasonally adjusted (Dollar amounts in billions, based on weekly averages of daily figures)
Total member bank deposits
Week ending:
(_credi l/
1967--Apr.
Time deposits
2/
Private demand
U. S. Gov't. demand
21 deposits 3/
deposits
256.0 256.8 257.1 257.4
137.5 137.9 138.1 138.3
113.9 113.5 112.9 112.4
4.7 5.5 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
111.9 116.1 116.2 116.2
2.6 2.6 3.2 1.6
Jul.
5 12 19 26
260.4 261.7 263.9 264.6
142.5 142.9 143.4 143.7
116.9 117.2 116.6 116.6
1.0 1.6 4.0 4.3
Aug.
2 9 16 23 30
265.8 267.0 266.7 267.0 267.1
144.4 145.0 145.4 145.8 146.5
117.2 117.6 117.4 117.7 117.6
4.3 4.4 3.9 3.4 3.0
Sept.
6
269.4
146.9
118.1
4.4
p - Preliminary.
1/ Includes all deposits subject to reserve requirements--i.e., the total
2/ 3/
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 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)
Monthly
Money Supply
Currency _/
Private
Time Deposits
Demand
Deposits
2/
Adjusted
1965--Jul. Aug. Sept. Oct. Nov. Dec.
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
1966--Jan. Feb. March Apr. May June Jul. Aug. Sept. Oct. Nov. Dec.
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 36.9 37.1 37.3 37.4 37.7 37.8 37.9 38.0 38.1 38 3
131.4 131.6 132.3 133.4 132.9 133.2 132.3 132.4 132.6 132.1 132.0 132.1
147.5 148.3 149.8 151.8 153.4 154.8 156.9 158.1 158.6 158.8 158.5 159.8
1967--Jan. Feb. Mar. Apr. May June Jul. Aug. p
170.3 171.5 173,1 172.7 174.5 176.2 177.9 179.1
38.5 38.7 38.9 39.1 39.2 39.3 39.4 39.6
131.8 132.8 134.2 133.6 135.3 136.8 138.4 139.6
162.0 164.6 167.2 169.2 171.1 173.6 175.8 178.4
1/
3
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)
Week Ending
Money Supply
Currency l/
Private Demand
S__Deposits
1967--Apr.
Time Deposits adjusted
2/
134.3
39.1
134.0 133.5 133.0
168.3 169.0 169.5 169.6
173.4 173.1 172.6 172.1
39.1 39.1 39.1
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
172.6 173.6 173.7 173.9
5
177.6 178.1 177.7 177.8
39.4 39.5 39.4 39.4
138.2 138.6 138.3 138.4
174.6 175.4 175.8 176.1 176.8 177.8 178.3 178.6 179.2 179.4
July
12 19 26 Aug.
178.3 178.8 179.2 179.2 179.2
39.4
p 16 p 23 p 30 p
39.6 39.6
138.9 139.3 139.6 139.7 139.5
6 p
179.6
39.7
139.9
2 9
Sept.
39.5 39.6
3
--
1/ 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. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. 2/
Cite this document
Federal Reserve (1967, September 11). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19670912
@misc{wtfs_bluebook_19670912,
author = {Federal Reserve},
title = {Bluebook},
year = {1967},
month = {Sep},
howpublished = {Bluebooks, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bluebook_19670912},
note = {Retrieved via When the Fed Speaks corpus}
}