bluebooks · August 12, 1968

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.

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Content last modified 6/05/2009.

August 9, 1968.

CONFIDENTIAL (FR)

MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments (1) Widespread expectations of significant further declines in interest rates have played a dominant role in determining money market relationships and the movement of related financial variables since the last meeting of the Committee.

Reports suggesting that the

slowing in

expected/economic expansion had already begun late in the second quarter, and the reduction in the System's RP rate to 5-1/2 per cent, reinforced expectations of further easing in financial market conditions.

Dealers

and investors--particularly commercial banks--moved aggressively to enlarge their holdings of fixed income securities.

In response, yield

declines in bond markets ranged to nearly 25 basis points and bank credit expanded rapidly. (2) In the Treasury bill market, where the unexpected Treasury decision to offer no short-term anchor issue in the August financing reinforced downward rate pressures, yield declines ranged to about 50 basis points.

The bid yield on the 3-month issue dropped from the

5.42 per cent level just prior to the last Committee meeting to a low

of 4.89 per cent on August 5. (3) With day-to-day demands on banks for security financing very high, the Federal funds rate has consistently remained at or above

FINANCIAL MARKET RELATIONSHIPS

IN PERSPECTIVE

('onthly averages and, where availablc, weekly averages of daily figures)

Money Market Indicators Free

teserves

Period

Borrowings

(In millions of dollars)

Corporate MuniciU.S.

Funds

Treas-

Rate

ury Bill

Gov't. (20 yr)

pal

borrowed

Reserves (I oi

New

5.78** c/5.86** 5.85** 6.08** 6.50 6.51

3.86 3.78 3.81 3.88 3.99 4.15

+297 +307 +135 +299 +122 -294

6.22** 6 .25** 6.57** 6.50** 6.64 6.65 6.51

4.06 4.01 4.28 4.13 4.28 4.21 4.12

+345 +208 -266 -197 + 46 +137 +290

132 86 82 141 124 185

3.78 3.88 3.99 3.87 4.14 4.49

4.20 4.26 4.42 4.55 4.72 4.96

5.01 5.12 5.16 5.36 5.66 5.59

142 21 -312 -341 -374 -386 -193

275 368 649 689 728 727 523

4.60 4.68 5.02 5.74 6.10 6.09 6.03

5.00 4.98 5.17 5.38 5.66 5.52 5.31

5.39 5.38 5.59 5.46 5.55 5.40 5.29

-311 39

493 412

5.82 6.03

5.33 5.36

5.35 5.33

--- -194 -238 -262 -381

470 639 602 737

6.18 6.10 6.02 6.08

5.41 5.28 5.19 4.94

5.33 5.30 5.19 5.16

Year 1967 Second Half 1967 First Half 1968

195 238 -201

173 123 567

4.19 4.02 5 37

Recent variations in growth Mar. 29-Jun. 28 Jun. 28-Nov. 29 Nov. 29-Aug. 7

245 254 -166

110 112 523

4.00 3.96 5.33

3.66 4.41 5.24

1968--Jan. Feb. Mar. Apr. May June p July p 1968--July

3 10 p

17 24 31 Aug. 7

p p p p

p - Preliminary.

Re-

Bank

Money

Time

Credit

Supply

Deposits

serves Proxy 2/ on (In billions of dollars) (Seasonally Adjusted) + 2.2 + 1.8 + 2.9 +237 + 2.4 + 1.1 + 3.7 +285 + 2.2 + 0.2 + 2.3 +159 + 1.2 + 1.1 + 2.4 +335 + 1.4 + 0.8 + 2.1 +154 + 1.5 + 0.3 + 0.2 -122 + + + + + + +

+ + + + + +

1.5 2.3 1.0 1.0 0.4 1.5 2.2

+ + + + + + +

4.18 4.18

1.4 0.9

+ 1.9 - 1.1

+ 0.6 + 0.6

6.56 6 54 6.41 --

4.10 4.00 3.90 3.80

+ + + +

2.7 1.8 1.2 0.8

+ + +

+ + + +

Averages 5.01 4.29 5.31 4.51 5.46 5 29

5.77 6.10 6.47

3.74 3.91 4.16

4.83 5.25 5.45

5.59 5.99 6.47

3.68 3.86 4.13

Includes issues carrying 5-year and 10-year call Time deposits adjusted at all c ommercial banks.

Base is change

Total

Non-

Issues (Aaa) (Aaa)l/

311 270 252 212 225 143

1967--July Aug. Sept. Oct. Nov. Dec.

Flow of Reserves. Bank Credit and Money

Bond Yields

Federal 3-month

protection,

+347 +265 + 47 -189 + 88 +105 + 93

1.0 0.4 0.7 0.9 1.8 1.2 2.0

1.3 1.2 0.9 0.8

Annual rates of increase 3/ + 6 4 +11.9 + 9.9 +11.5 + 6.0 +10 6 + 8.7 + 7.2 + 6.6 + 4.0 + 5.3 + 2.2

+20.4 +12.7 + 6.0

+ 6.7 + 6.6 + 7.3

- issues carry a 10-year call protection.

for month preceding specified period or in case of weekly periods,

the first week shown.

c - Correction Ai,,is,,

1968.

0.6 1.1 1.5 0.4 0.5 0.5 2.4

1.0 0.9 0.7 0.3

+16.1 +12.6 + 5.0

+17.7 +13.4 + 7.3

-26 per cent, and the effective rate has most frequently been 6-1/8 per cent.

Rates on new loans to dealers at New York banks have continued

generally between 6-1/4 to 6-5/8 per cent, and measures of marginal reserve availability have become firmer.

Net borrowed reserves have

averaged$295 million since mid-July, and were $380 million in the latest week.

Member bank borrowings have averaged $660 million,

somewhat above the high end of the range specified in the last blue book, largely because of the $737 million figure in the latest week. (4) Most recently, as the initial impact of the Treasury's

financing decision has faded, persistent firmness in money market conditions has created increasing sensitivity among dealers to the high cost of position financing and concern about the timing of any further easing in monetary policy.

In consequence, yields on Treasury bills

have erased a small part of their earlier declines. (5)

Spurred by the earlier general decline of market rates

and by expectations of even lower rates over the longer run, CD inflows to banks in July topped $2 billion, about twice as much as projected. Banks began to shave CD offering rates, and at the largest banks all

maturities from 90-days outward now carry rates in a 5-5/8 to 5-3/4 per cent range. (6) Government deposits at banks declined on average about as projected in July.

But private demand deposits rose even faster than

anticipated, possibly reflecting the surge in security market transactions engendered by changed interest rate expectations.

As a result

-3the money supply for July is now estimated to have grown at about a 13 per cent annual rate, rather than in the 8--10 per cent range previously projected. (7)

Outside of the dramatic growth in large CD's already

noted, time and savings deposits at banks continued to increase about as projected, close to the moderate pace of recent months but with a noticeable shift from passbook accounts to higher yielding time deposits. At other depositary-type intermediaries, savings flows were not so severely affected by the June-July reinvestment period as was generally feared before the tax increase.

Nonetheless, the seasonally adjusted

rate of growth in these flows during July was well below that of the second quarter. (8) Largely because the shift in market expectations produced a larger than anticipated decline in interest rates and, in consequence, a larger than projected growth in CD's, the credit proxy for July expanded much more rapidly than indicated in the last blue book.

It is now estimated at an annual rate of about 9 per cent for

the month.

Allowing for the rapid rise in Euro-dollar borrowing from

foreign branches in June and early July, the rate of growth in the adjusted credit proxy amounts to 11 per cent, much above the rate projected at the time of the last meeting. (9) The expansion of bank credit took the form chiefly of bank investment in U.S. and State and local government securities and of security loans--the latter apparently largely to finance expanded

-4professional inventories in these same markets.

The bulk of the increase

in bank holdings of U.S. Government securities occurred in connection with the tax financing early in the month.

While business loans also

rose more than seasonally in July, their growth was less than expected in view of the recent increases in corporate tax liabilities. (10)

The following table provides comparative annual rates

of growth for major financial flows over several recent periods.

May'67Nov. '67

Dec. '67 Mar. '68

Apr. '68 June '68

July

0.1

4.3

Total reserves

9.5

6.4

Nonborrowed reserves

9.9

-0.1

-0.2

13.9

Bank credit, as measured by: Proxy

11.5

5.6

1.1

9.0

Proxy plus Euro-dollars

12.3

5.6

3.5

10.9

8.4

4.0

8.5

12.8

14.2

7.7

3.0

15.3

9.1

6.1

6. lp

Money supply

Time and savings deposits Savings accounts at thrift institutions

4.9 . 9 PZ1

NOTE: Dates are inclusive. p--preliminary f/Figures included for S&L's and mutual savings banks in July are confidential until August 15.

Prospective developments (11)

The unusually large spread that has opened up recently

between day-to-day money market rates and the 3-month bill rate reflects currently prevailing expectations that money market conditions will soon be eased.

If, on the other hand, day-to-day rates and marginal reserve

measures in the weeks ahead should be maintained at levels close to those recently prevailing, market expectations could shift and Treasury bill rates would very likely tend to rise.

As has been indicated, a

little of this tendency has already been evident, with the 3-month bill

rising nearly 10 basis points from its early August low. (12)

Even with day-to-day rates at levels somewhat below those

recently prevailing, some back-up in bill rates cannot be ruled out, particularly if market expectations shift. While bill dealers have recently been quite successful in rolling over their positions profitably, any tendency for market demands to slacken would quickly encourage them to try to reduce inventories unless financing costs began to decline.

If upward pressures on bill rates became too

great, yield increases could spread in some degree to other securities markets--particularly those for longer-term U.S. and State and local government notes and bonds where positions presently held by market professionals are also large. (13)

Events that have already transpired assure a rapid

increase in the bank credit proxy on average during August.

The

increase is now projected at an annual rate of 16-18 per cent. Nearly

-6-

three-fourths of the estimated growth is accounted for by the rise in the average of Government deposits from July to August resulting from heavy Treasury cash borrowings.

Much of the remainder reflects time

deposit growth that occurred over the course of July--principally in large CD's, although some further net growth in time deposits and CD's is also projected during August. (14) The effect on the credit proxy of Euro-dollar borrowings by U.S. banks in August is uncertain.

Such borrowings have fluctuated

widely in recent weeks, and most recently have been back close to their July peaks.

If reserve pressures continue strong on money market banks,

the decline in August expected earlier by the staff may not occur. (15) Since present relationships between bill rates, on the one hand, and other money market and marginal reserve variables, on the other, are not likely to be sustainable in the period ahead, maintenance of the "present stance of policy" would appear to require permitting some flexibility in operating targets.

In particular, to avoid an overly-

rapid snapback in bill rates that would trigger a more general reversal of recent interest rate declines, it may be necessary at some juncture to permit some easing of other money market conditions, particularly in the funds rate and member bank borrowings. (16)

If bill rates were to remain relatively close to recent

levels--say, fluctuating between 4.90 and 5.10 per cent--the Federal funds rate could be maintained in the 6- 6-1/8 per cent range of recent weeks.

These conditions would likely be associated with average

borrowings of $500 to $650 million, and average net borrowed reserves of $200 to $400 million.

If, However, bill rates were to approach

-7or exceed the top of this range, and particularly if they were rising rapidly, the Federal funds rate could be permitted to drift down, perhaps into the 5-3/4 to 6 per cent range.

Such easing in the cost of reserve

funds would likely be associated with marginal reserve measures about $100 million lower.

This general approach to operations would, of

course, be conditioned by bank credit developments if a bank credit proviso were included in the directive. (17)

Looking beyond the immediate credit bulge, and assuming

that the operating approach outlined above is implemented, growth in the bank credit proxy in September is expected to drop to, perhaps, a 5-7 per cent range. slower growth:

Several factors account for the expectation of

The Federal Government will not be a cash borrower

again until the latter part of October; business borrowing at banks is expected to slacken; security loans should recede somewhat from their unusually high recent levels, as borrowings in securities markets by the Federal government and business corporations drop-off; and growth of large bank CD's is likely to recede from the accelerated July pace.

In the early stages of past periods of interest rate

declines, growth of large bank CD's has typically mushroomed, but the change has been of a one-shot character reflecting bank efforts to restore liquidity and add to security investments while yields were still attractive.

With the sharp reductions in outstanding CD's that occurred

earlier this year now fully restored, and with bank needs for liquidity less pressing than in some earlier periods of interest rate reversal,

-8it seems reasonable to expect a slower growth of CD's in the weeks ahead.

In fact, many large city banks already appear to have dropped

their aggressive approach to bidding for CD's. (18)

Growth in total time and savings deposits is projected

at a rate of about 14 per cent in August and around

September.

per cent in

Net shrinkage of savings deposits at banks is projected

to persist in August and September, with savers continuing to switch to higher yielding consumer-type time account alternatives.

Growth in the

latter should continue to exceed net withdrawals from savings accounts

despite the new Federal surtax. With private demand deposits at member banks expected to decline in August, the money supply for that month

is likely to show little or no growth.

In September, on the other hand,

as Government deposits decline again, on average, the money supply is projected to expand, but at a much slower rate than in recent months. (19)

Policy alternative.

It may be that, in light of the

emerging economic situation, the Committee would wish to guard against the possibility of any further rise in short-term interest rates, and to accommodate any renewal of downward pressures on these rates that might develop.

These objectives might be accomplished by acting, as

soon as even keel considerations permit, to reduce the present degree of tautness in money market conditions.

The complex of relationships

appropriate to this end would seem to be a Federal funds rate ranging from 5-1/2 to 5-3/4 per cent, net borrowed reserves averaging from

-9$0 to $200 million, and member bank borrowings of $250 to $450 million. These conditions would likely be associated with a 3-month bill rate at or below 5 per cent. (20)

Since this approach would maintain rates on competitive

market instruments well below CD ceilings, it probably would provide some stimulus to bank credit growth.

But since banks have already

begun to back away from the CD market, that stimulus is not likely to be great.

On balance, there would probably be little effect on the

proxy for August, but the proxy in September could be in the 7 to 9 per cent range, about two percentage points higher than under the course of operations described in paragraph 16.

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

Period

Member banks borrowines

revised

reserves

Free

date

1 As expected at conclusion of each week's oppn mar ket operations

Monthly (reserves weeks ending in): As first published each week

1967--July August September October November December

449 356 334 353 349 333

132 86 82 141 124 185

317 270 252 212 225 148

1968--January February March April May June July p

417 389 337 348 354 341 330

275 368 649 689 728 727 523

142 21 -312 -341 -374 -386 -193

1 8 15 22 29

276 381 400 322 391

674 823 712 669 764

-398 -442 -312 -347 -373

-390 -428 -308 -390 -445

-408 -377 -307 -378 -438

June

5 12 19 26

208 310 266 578

759 678 664 807

-551 -368 -398 -229

-590 -403 -445 -289

-592 -392 -375 -337

July

3 10 17 24 31

182 451 276 401 340

493 512 470 639 602

-311 39 -194 -238 -262

-406

-419

-284 -307 -288

-312 -315 -319

356

737

-381

-353

Weekly: 1968--May

Aug.

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

Aggregates Required reserves Against Total Demand Reserves SDeposits

Monetarvy Variables Total Member Time Money Supply Total Member Deposits Private it (comm. Total Demand (credit) 1/

Deposits

banks)

Annually: 1966 1967

+ 1.3 + 9.9

+ 0.8 +11.5

+ 1.5 +10.2

- 0.2 + 7.0

+ 3.8 +11.9

+ 8.7 +16.1

+ 2.2 + 6.4

1967--Jan.

+16.9

+26.1

+14.6

+10.1

+15.2

+22.0

Feb. Mar.

+13.1 +20.3

+17.8 +29.1

+13.6 +12.9

+15.7 + 9.8

+16.0 +14.3

+18.6 +17.6

+10.6 + 9.8

+ 1.2 + 6.7

Monthly: 0.7

2.7

+10.9 +11.7

Apr.

2.1

+ 5.4

+ 7.5

0.3

+ 8.5

+15.9

- 4.9

May June July Aug. Sept. Oct. Nov.

+ 2.1 + 7.7 +11.8 +14.0 + 7.7 +16.2 + 7.4

+ 5.0 + 5.4 +14.9 +15.2 + 6.6 +14.5 + 5.9

+ 0.1 + 6.6 +15.2 +15.0 + 9.5 +17.6 + 6.6

- 0.9 + 1.2 +10.2 +18.7 + 5.7 +13.5 + 8.3

+ 6.6 +10.7 +13.4 +16.9 +10.4 +10.7 + 9.3

+14.3 +17.6 +15.3 +16.5 +14.9 + 8.0 + 9.3

+13.2 +11.0 +12.3 + 7.4 + 1.3 + 7.4 + 5.3

+16.2 +12.4 +14.9 + 8.7 -+ 6.9 + 6.8

Dec.

5.8

-14.0

1.6

-10.5

+ 1.3

+ 9.9

+ 2.0

+16.6 +12.5 + 2.2

+16.7 + 9.9 -12.6

+11.4 +11.4 + 0.6

+15.3 +19.2 + 0.1

+ 6.6 +10.0 + 4.3

+ 3.9 + 7.2 + 9.7

+ 6.6 + 2.6 + 4.6

+ 6.8 + 1.7 + 2.5

1968--Jan. Feb. Mar.

8,8

Apr.

May June p July p

+ 4.1 + 4.9 + 4.3

9.4

+ 2.2 + 6.6 +13.9

7.1

0.9

6.0

-11.1

4.7

+ 2.6

+ 5.9

+ 6.8

- 1.9 + 9.6 + 7.4

+ 1.5 +11.7 + 0.8

+ 1.7 + 6.5 + 9.0

+ 3.2 + 3.2 +15.3

+11.7 + 7.7 +12.8

+12.6 + 6.6 +15.7

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.

Chart 1

MEMBER BANK RESERVES MONTHLY

AVERAGES

DAILY

BILLIONS OF DOLLARS,

26.0

FIGURES

I I

SEASONALLY

S--

TOTAL 25.5

25.0

ADJUSTED

RESERVES

---------------

VIA ~ ~--

NONBORROWED

RESERVES

24.5 REQUIRED

RESERVES----

REQUIRED

RESERVES

24.0

23.5

23.0

22.5

22.0

BILLIONS OF DOLLARS,

ADJUSTED

NOT SEASONALLY

MEMBER

1.0

BANK

BORROWINGS EXCESS

5*1-1i

RESERVES

-----

J 1967

~____~

1968

Chart 2

MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF

286

DOLLARS

I I

TOTAL MEMBER

BANK DEPOSITS (CREDIT PROXY)

SEAS

AVERAGE OF DAILY FIGURES

ADJ

WEEKLY

282

278

274

270

266

262

258

254

250

246

242

-LIABILITIES

TO OVERSEAS

BRANCHES

(WEEKLY REPORTING BANKSJ NOT SEAS

ADJ,

WEDNESDAYS

I~~~~~ 1966

1967

I 1968

Chart 3

MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY

AVERAGES

OF DAILY

FIGURES

190

186

196

182

192

178

188

174

184

170

180

176

172 TIME DEPOSITS ADJUSTED (All Commercial Banks)

168

164

160

156 NEGOTIABLE NOT SEAS

ADJ,

CD'S WEDNESDAYS

1966

1967

1968

Chart 4

DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY

AVERAGES OF DAILY FIGURES

I I

BILLIONS OF DOLLARS

44 CURRENCY

OUTSIDE

BANKS

146

142 DEMAND

DEPOSITS

138

134

130

U.S. GOVT. DEMAND DEPOSITS (Member

Banks)

0 D 1966

J 1967

J 1968

MAJOR SOURCES AND USES OF RESERVES Retrost L.tive and Prospective (Dollar amounts in millions, ba ' >-n weL ly averages of daily figures) I Period

Factors affecting supply of reserves of reserves suplly Federal Reserve Factors affectin Currency Technical Gold credit (excl. outside factors stock float) 1/ hanks nrt 9/ l float) ____

Year: 1966 (12/29/65 1967 (12/28/66

- 12/28/66) - 12/27/67)

Year-to-date: (12/28/66 - 8/9/67) (12/27/67 - 8/7/68) Weekly: 1968--July

Aug.

3 10 17 24 31

p p p p

7 p

Change in total rasrva

Bank use of reserves Required Excess reserves reserves 3/

+1,085 +1,522

+1,111 +1,517

26 5

66 86

+3,149 +4,718

627 725

-2,243 -2,305

+2,472 +3,919

102

478 701

-2,095

205

139

606

544

630

293 694

38 746 10

378 7

396

259

266

375 207 213

+ + +

+ +

340 133

175

10 525

165 258

+ +

125

507

-2,067

122 52 220 60

226

+ + +

490

PROJECTED ,/ -

1968--Aug. 14 21 28

Sept. 4 11

+ +

105

----

+ +

105 225

140 165 300

290 60 30

385 380

--- -

295 370

120 160

30 170

150 --

p - Preliminary. For retrospective details see Table B-4. For factors included, see Table B-3. For required reserves by type of deposits, see Table B-2 See reverse side for explanation. Includes increase in reserve requirements of $360 million effective Jan. 11, 1968, and $190 million effective Jan. 18, 1968.

Table B-2 CHANGES 1N rEQUIL7E)

FFE-RVE COMPOENTS

Retrospective and Prospective Seasonal and Nonseasonal Changes (Dollar amounts in millions, based on weekly averages of daily figures) I 1

Total required reserves

Period

Supporting U. S. Gov't. demand

SuDDortine Drivate deDosits

dPnnnit de

Demandr __

Other than seasonal changes

Seasonal changes

Total

Time Tm

Time

nfmand

Year: 1966 (12/29/65 1967 (12/28/66 -

12 /28/66) 12 /27/67)

Year-to-date: (12/28/66 - 8/9/67) (12/27/67 - 8/7/68)

Weekly: 1968--July

87 261

+1,198 -1,256

139 630

+ -

24 196

-1,012

501 40

163 826

14 59

4 6

751

+ -

5 +1,023

+1,221 + lt8

+ 838 +1,180

90 375

13 6

151

+ -

295 180

519 229 189 162 154

116

14 21 28

290 60 30

+ +

75 150 135

215 210 105

15 190 65

+ -

15 15 5

225 15 45

+ + +

10 10 10

Sept. 4 11

30 170

315 165

+ +

285 335

+ +

160 295

5 15

+ +

120 45

+ +

10 10

Aug.

3 10 17 24 31

+1,111 +1,517

p p p p

269

+ +

340 133

7 p

339 250 86 31 74 89

PROJECTED 1968--Aug.

4/ 2/

Reflects reserve requirement changes in July, September 1966, and March 1967. Includes increase in reserve requirements of $360 million effective January 11, effective January 18, 1968.

p -

Preliminary.

1968 and $190 million

1/ I/

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

Treasury operations

ACTUAL

Float

(Sign indicates effect

Year: 1966 (12/29/65 - 12/28/66) 1967 (12/28/66 - 12/27/67)

+ -

Year-to-date: (12/28/66 - 8/9/67) (12/27/67

805 165

Foreign deposits and gold loans on reserves)

+ -

673 85

+ -

64 389

-2,095

512

-1,392

606

235

758

Weekly: 1968--July .3 10 p 17 p

+ + +

38 746 10

+ -

140 259 194

+ + -

24 p 31 p

10 525

+ -

88 19

7 p

198

1968--Aug. 14

140

21 28

165 300

4 11

120 160

Aug.

8/7/68)

Other nonmember deposits and F. R. accounts

30 7

+ +

98 316

206

94 195 113

+ +

24 4 27

+ + +

108 288 290

+ -

110 396

+ -

12 13

220 97

100

300 300

405

+ -

--- +

120 160

PROJECTED

Sept.

p -

Preliminary.

Table B-4 SOURCE OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions of dollars, based on weekly averages of daily figures) I

Total Federal Reserve credit (Excl. float) 1~

Period

+3,149 +4,718

+3,069 +5,009

+2,158 +4,433

+ 474 +1,153

Year-to-date: (12/28/66 - 8/9/67) (12/27/67 - 8/7/68)

+2,472 +3,906

+3,010 +3,540

+2,765 +2,466

776

1 8 15 22 29

+ + +

347 568 238 23 121

+ +

306 369

+ +

176 97

5 12

June

July

Aug.

Federal Agency Securities

Iholdines

Year: 1966 (12/29/65 - 12/28/66) 1967 (12/28/66 - 12/27/67)

Weekly: 1968--May

U.S. Government securities Total Repurchase Bills Other aereements t

131

+ +

333 117

+ + + +

30 251 88 985

19 26

+ 23 + 222 + 58 +1,222

3 10 17 24 31

+ +

122 52 220 60 226

+ +

274 61

284

90 214

+ +

14 180

490

352

845

+ .437

577

531

+ +

52 69 -55 - 19

5 10 -

+ -

26 S

310

Bankers' acceptances

203

457

392

13 40

149

-31 - 8 - 14

111

+ +

7 5 3

Member banks borrowings

261

+ +

241 916

153

+ -

2 23 2

263

146

16 36

+ -

29 104

4 4

27 313

157 13

+ +

58 169

276

135

+ -

- 5 - 81 - 14

143 -

314 81

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

er iPero od

Total

reserves

Nonborrowed

reserves

Total

Required reserves

Against private deposits

STotal 1966--Jan. Feb. Mar. Apr. May June 1/ July Aug. Sept. Oct. Nov. Dec.

22,785 22,857 22,888 23,118 23,192 23,149 23,293 23,029 23,065

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

23,217

1968--Jan. Feb. Mar. Apr. May June July p/

Demand

22,325 22,376 22,331 22,490 22,486 22,472 22,552 22,336 22,319 22,243 22,303 22,286

22,456 22,507 22,512 22,714 22,773 22,A80 22,864 22,710 22,689 22,629 22,593 22,600

21,936 21,996 22,115 22,283 22,331 22,361 22,344 22,320 22,349 22,229 22,198 22,262

16,822 16,877 16,957 17,043 17,030 17,043 16,963 16,908 16,922 16,827 16,810 16,825

24,105 24,342 24,627 24,786 25,121 25,275 25,153

22,770 23,107 23,668 23,775 23,874 23,982 24,279 24.586 24,721 25,020 25,142 24,848

22,875 23,134 23,383 23,529 23,531 23,660 23,960 24,259 24,452 24,810 24,947 24,914

22,298 22,559 22,785 22,779 23,071 23,387 23,578 23,776 23,850 23,995 24,122 24,157

16,774 16,959 17,101 17,015 17,244 17,472 17,582 17,701 17,704 17,805 17,879 17,860

25,500 25,765 25,812 25,623 25,711 25,816 25,909

25,193 25,401 25,135 24,938 24,984 25,121 25,411

25,151 25,389 25.402 25,276 25,236 25,438 25,595

24,270 24,333 24,431 24,487 24,751 24,918 25,194

17,974 18,025 18,082 18,133 18,387 18,543 18,732

22,954 22,915 22,895

23,471 23,869 23,910

23,952

p - Preliminary. 1/ Break in series due to redefinition of time deposits effective June 9, 1966, which reduced required reserves by $34 million.

Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally Adjusted (Dollar amounts in

Period

billions based on monthly averages of daily figures)

Total member bank deposits (credit) 1/

Time depoits

Private demand deposits 2/

U.S. Gov't. demand deposits

1966--Jan. Feb. Mar. Apr. May June 3/ July Aug. Sept. Oct. Nov. Dec.

238.0 239.0 239.8 241.9 243.9 244.4 245.8 245.6 245.5 244.4 244.0 244.6

121.8 121.9 122.8 124.8 126.2 126.6 128.1 128.8 129.2 128.6 128.3 129.4

111.7 112.1 112.6 113.2 113.1 113.2 112.6 112.3 112.4 111.7 111.6 111.7

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

247.7 251.0 254.0 255.8 257.2 259.5 262.4 266.1 268.4

111.4 112.6 113.6 113.0 114.5 116.0 116.7 117.5 117.6 118.2 118.7 118.6

4.8 5.1 5.1 5.6 4.0 2.6 2.9

273.2

131.5 133.3 135.3 137.2 138.7 140.8 142.8 144.6 146.3 147.4 148.6 149.9

1968--Jan. Feb. Mar. Apr. May June p July p

274.7 277.0 278.0 276.9 277.3 278.8 280.9

149.9 150.2 151.2 151.3 151.5 151.8 153.8

119.4 119.7 120.1 120.4 122.1 123.1 124.4

5.4

2/ 3/

270.8 272.9

4.5 5.0 4.4

4.0 4.6 4.6 5.1 4.5 4.0 4.0 4.1 3.5

4.0 4.5 5.2 5.6 4.6

7.1 6.7 5.2 3.7 3.9 2.7

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. Private demand deposits include demand deposits of individuals, partnerships and corporations and net interbank balances. Break in series due to redefinition of time deposits effective June 9, 1966, which reduced total member bank deposits and time deposits by $850 million.

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)

Week ending:

Total member bank deposits

Time deposits

(credit1I/

Private demand deposits

U. S. Gov't. demand 2/

deposits

3 10 17 24

277.4 276.6 278.6 276.7

151.6 151.5 151.4 151.0

120.3 120.1 121.7 120.0

5.5 5.0 5.5

151.5 151.5 151.6 151.6 151.4

120.0 120.9 121.3 122.7 123.3

4.8

22 29

276.3 277.2 276.7 277.3 277.7

June

5 12 19 26

278.2 178.4 277.9 280.2

151.6 151.8 151.8 151.7

123.4 122.2 122.2 123.0

3.2 4.4 3.9 5.5

July

152.2 152.7 153.7 154.4 155.1

125.2 123.7

24 31

278.8 277.9 280.6 282.5 283.7

124.3 124.0 124.5

1.4 1.5 2.6 4.0 4.1

284.5

155.1

125.1

4.2

1968--Apr.

May

8 15

10 17

Aug.

5.7 4.8 3.7 3.1 3.1

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 a;gregate 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.

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)

Money Supply

Monthly

Currency 1/

Private Dema Demand

Deposits

________________ ___~______

Time Deposits

2/ /

Adjusted

Adus

1966--Jan. Feb. Mar. Apr. May June 3/ July Aug. Sept. Oct. Nov. Dec.

167.9 168.6 169.2 170.3 170.3 170.5 169.9 170.0 170.5 170.2 170.2 170.4

36.6 36.7 36.9 37.1 37.3 37.4 37.6 37.8 37.9 38.0 38.2 38.3

131.4 131.9 132.3 133.2 133.0 133.1 132.3 132.2 132.6 132.1 132.0 132.1

147.7 148.3 149.6 151.8 153.6 154.1 155.9 156.9 157.7 157.3 156.9 158.1

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

170.3 171.8 173.2 172.5 174.4 176.0 177.8 178.9 179.1 180.2 181.0 181.3

38.5 38.7 38.9 39.0 39.1 39.3 39.4 39.5 39.7 39.9 40.1 40.4

131.8 133.0 134.3 133.5 135.3 136.7 138.4 139.4 139.4 140.2 141.0 140.9

161.0 163.5 165.9 168.1 170.1 172.6 174.8 177.2 179.4 180.6 182.0 183.5

1968--Jan. Feb. Mar. Apr. May June p July p

182.3 182.7 183.4 184.3 186.1 187.3 189.3

40.6 40.7 41.1 41.4 41.6 42.0 42.1

141.7 141.9 142.2 143.0 144.5 145.3 147.2

184.1 185.2 186.7 187.1 187.6 188.1 190.5

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 andFederal Reserve float; and (2) foreign demand balances at Federal Reserve Banks. 3/ Break in series due to redefinition of time deposits effective June 9, 1966, which reduced time deposits adjusted by $1,140 million. p - Preliminary. 1/

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 1/

Private Demand Deosits

adjusted

183.9 183.9 186.0 183.8

41.2 41.3 41.3 41.4

142.7 142.6 144.7 142.4

187.3 187.0 187.1 186.9

1 15 22 29

183.7 184.8 185.1 186.8 187.4

41.5 41.5 41.6 41.8 41.7

142.3 143.3 143.5 145.0 145.7

187.3 187.4 187.7 187.7 187.7

June

5 12 19 26

187.7 186.4 186.8 187.7

41.8 42.0 42.0 42.0

145.9 144.3 144.8 145.8

188.0 188.1 188.1 188.0

July

3 10 17 24 31

189.6 188.5 189.8 188.6 189.5

42.0 42.1 42.1 42.0 42.1

147.6 146.4 147.7 146.6 147.4

188.6 189.2 190.2 191.1 191.8

Aug.

190.3

42.1

148.2

192.1

May

3 10 17 24

1968--Apr.

Time Deposits

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.

Cite this document

APA

Federal Reserve (1968, August 12). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19680813

BibTeX

@misc{wtfs_bluebook_19680813,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1968},
  month = {Aug},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19680813},
  note = {Retrieved via When the Fed Speaks corpus}
}