bluebooks · August 17, 1970

Bluebook

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Content last modified 6/05/2009.

CONFIDENTIAL (FR)

August 14, 1970. MONETARY AGGREGATES AND MONEY MARKET CONDITIONS

Recent developments (1)

The money supply is now estimated to have increased at a

4.1 per cent annual rate on average in July, much slower than the 11 per cent pace indicated at the time of the last Committee meeting.

Since

around mid-July, the weekly money supply figures have been generally smaller than earlier anticipated, though the shortfall has lessened in August and in the week ending August 12, the preliminary estimate for the money supply moved slightly above its indicated path.

For the most part

the shortfalls in money supply reflected weakness in private demand deposits subject to reserves at both city and country banks,

but currency and

estimated demand deposits at nonmember banks also fell short./

Apparently,

the surge in demand balances around mid-year was a very temporary phenomenon, perhaps resulting from market churning associated with shifts of funds out of market instruments thought to be of less than prime quality. (2)

Growth in the adjusted bank credit proxy in July was at

a slightly more rapid pace than had been expected earlier.

This greater

strength was due primarily to a faster-than-projected rise in time deposits, which grew at a 35 per cent annual rate on average in July.

Large CD's

rose by around $5.0 billion over the month following the suspension of a

1/ There have been some indications of the development recently of new bank accounting procedures in connection with Euro-dollar and foreign exchange transactions which could be producing some understatement in the

money supply series. No hard statistics are available, however, to confirm the extent of such a bias if it does exist, whether it is growing or represents a one-time change, or whether it is or isn't offset by other

factors.

-2portion of the Regulation Q ceilings, although more recent data indicate a considerably more moderate rate of CD expansion.

Other time and savings

deposits also advanced strongly in July, possibly reflecting a preference by savers for highly liquid instruments in view of economic and financial uncertainties.

Net inflows of funds to nonbank savings institutions were

also exceptionally strong after allowance for seasonal factors. Recent Paths of Key Monetary Aggregates (Seasonally adjusted, billions of dollars) Adjusted Credit Proxy Indicated at Last Meeting

Actual Results

Money Supply Indicated at Last Meeting

Actual Results

1970

Month

Levels

Levels

June

311.2

311.1

203.7

203.6

July

315.6

315.8

205.6

204.3

July 15

314.4

314.2

205.4

204.3

22

315.5

315.0

206.0

202.8

29

317.9

318.8

205.8

204.3

318.3

319.4

205.5

204.5

318.7

320.6e/

205.7

206.4e/

Week ending

August 5 12

Z Annual Rates of Change

% Annual Rates of Change

Month July over June

e/

17.0

Partly estimated.

18.1

11.0

4.1

(3) successful figures.

The Treasury's mid-August financing was generally

raising $1.9 billion in new cash, according to preliminary Despite the success of the financing and the initial premiums

on the new issues, the Government securities market remains hesitant in the face of enlarged dealer positions arising from the Treasury's two tax bill auctions in July and takings of about $1.4 billion in coupon issues in the mid-August operation.

Thus, yields on Treasury notes and

bonds have edged up and are about 7--10 basis points over mid-July levels.

Treasury bill rates

have also moved somewhat higher, and the

3-month issue was most recently bid at 6.54 per cent, compared with 6.38 per cent at the time of the last meeting. (4)

Yields on new high-grade corporate issues have fluctuated

since mid-July, and on balance are a shade higher than at the time of the last FOMC meeting, reflecting a recent build-up in the corporate calendar. On the other hand, yields on municipal securities have dropped.

Private

short-term rates have also declined since mid-July; and these markets have calmed considerably,

although the market remains very quality-

conscious and marginal issuers of commercial paper are still being pressed to seek alternative sources of credit.

Major finance companies are now

having relatively little difficulty in meeting maturities, although some are finding it hard to add to outstandings.

Nevertheless, as reported in

the Greenbook, total outstanding commercial and finance paper continued to decline in July, a month in which seasonal factors would imply a sizable

increase.

(5)

In response to the System's discount window assistance

to banks extending additional credit to commercial paper issuers, member bank borrowings rose sharply in July reaching a record $1.7 billion on average in the week of July 15.

Over the past three statement weeks,

however, member bank borrowings have been in a $1--$1.2 billion range, at a time when pressures on the commercial paper market have been abating.

Net borrowed reserves fluctuated in a $1.1--$1.4 billion range in

the latter part of July, but in the first two statement weeks of August dropped below $1.0 billion; in June, before the commercial paper problem developed, net borrowed reserves had averaged $735 million. (6)

Since the last Committee meeting, the Federal funds rate

has averaged a little below 7 per cent, as compared with the 7-1/4-7-1/2 per cent range of the preceding four weeks.

In part, the lower

Federal funds rate reflected increased ability of banks to accommodate reserve needs at the discount window.

In addition, however, the drop in

the funds rate, and also dealer financing rates, reflected the Desk's response to shortfalls in money supply growth. (7)

The following table summarizes seasonally adjusted annual

rates of change in major aggregates for selected periods:

Past Year (July over July)

First Half of 1970 (June over December)

Latest Month (July over June)

0.2

- 0.2

5.3

-0.1

1.9

-16.7

Money supply

2.5

4.0

4.1

Time and savings deposits

4.7

7.1

35.2

Savings accounts at nonbank thrift institutions

4.1

4.5

11.6

2.8

3.3

22.7

Proxy plus Euro-dollars

1.8

1.9

18.6

Proxy plus Euro-dollars and other nondeposit sources

3.3

3.5

18.1

Total loans and investments of all commercial banks

3.3

1.9

16.6

L&I plus loans sold outright to affiliates and foreign branches

4.6

3.9

16.6

Non-bank commercial paper

12.81/

14.0

-63. 91/

Total reserves Nonborrowed reserves

Member bank deposits and related sources of funds Total member bank deposits

(Bank credit proxy)

Commercial bank credit (Month end)

NOTE:

All items are averages of daily figures (with "other nondeposit sources" based on an average for the month of Wednesday data), except the commercial bank credit series, which are based on total outstanding on last Wednesday of month, and the non-bank commercial paper and thrift institutions series, which are end-of-month data. All additions to the total member bank deposit series are seasonally unadjusted numbers, since data have not been available for a long enough time to

make seasonal adjustments. 1/ Last Wednesday of July 1970.

Last day of month not available.

Prospective developments (8)

If the Committee wishes to continue with a policy that

encompasses financial flows and credit conditions consistent with a 5 per cent trend rate of growth for the money supply, the following language for the second paragraph of the directive may be considered (alternative A): To implement this policy,[DEL: while taking account of persisting market uncertainties;liquidity strains; and the forthcoming Treasury financing;]the Committee seeks to promote moderate growth in money and bankcredit over the months ahead, WHILE TAKING ACCOUNT OF PERSISTING LIQUIDITY PROBLEMS AND allowing [DEL: for a possible] BANK CREDIT GROWTH TO REFLECT A continued shift of credit flows from market to banking channels.

System open market operations until the next

meeting of the Committee shall be conducted with a view to maintaining bank reserves and money market conditions consistent with that objective; [DEL: provided, however, that operations shall be modified as needed to counter

excessive pressures in financial markets should they develop.]

(9)

The table below shows growth paths for the monetary

aggregates that would be consistent with such a policy.

Monetary Aggregates--Monthly and Quarterly (Daily averages, seasonally adjusted) Money Supply Month

Levels Annual Rate -$ bills.) of change

Adjusted Credit Proxy Levels Annual Rate ($ bills.) of change

Total Reserves Annual Levels Rate of ($ bills) Change

June (actual)

203.6

-1.8

311.1

7.0

27.9

.5

July (actual)

204.3

4.1

315.8

18.1

28.0

5.3

August

205.4

6.5

321.0

20.0

28.6

24.0

September

206.2

4.5

323.8

10.5

28.8

11.0

October

206.8

3.5

327.3

13.0

29.1

12.0

1/

Quarters-

3rd (Sept. over June)

5.0

16.5

13.5

4th (Dec. over Sept.)

5.0

11.5

13.0

1/ The annual rate of change on a quarterly-average over quarterly-average basis for the money stock is 3.5 per cent inthe third quarter and 4.5 per cent in the fourth quarter.

(10)

The growth rate specified above might not be attainable under

prevailing money market conditions, particularly with respect to the money supply.

Although the relationship between money market conditions and

monetary aggregates has been unusually uncertain recently, our projections indicate that the money supply might grow at no more than a 4 per cent annual rate over the third quarter and into the fourth if current money market conditions are generally maintained.

Achievement of a 5 per cent money

supply growth might require a Federal funds rate generally around 6-1/2-6-3/4 per cent, member bank borrowings dropped to an average of around $800-$900 million, and net borrowed reserves were in a $700-$800 million

-8range.

Such a set of money market conditions might be accompanied by some

decline of interest rates in short-term credit markets in consequence of greater provision of nonborrowed reserves by the System.

The 3-month bill

rate would probably decline in a 6-1/8--6-1/2 per cent range.

It is

possible, also, that if the Federal funds rate had to be consiztently around 6-1/2 per cent to achieve the money supply growth, expectational factors could be generated which could increase bank and other investor demands for debt obligations.

This might lead to interest rate declines on a broader

front, although the extent of decline may be limited by the size of security offerings in prospect. (11)

Time deposit growth is likely to slow over the months

ahead even if the easier money market conditions noted above prove necessary. It seems unlikely that the very rapid rate of growth of consumer-type time deposits in July will continue, assuming that economic prospects begin to improve.

With respect to large negotiable CD's, the recent more moderate

pace of expansion is likely to continue.

Further short-term market rate

declines would tend to make CD's relatively more attractive to investors, but, with loan demands quite moderate, banks would be unlikely to be as aggressive in the CD market as in July.

This same consideration is

likely to limit bank interest in nondeposit sources of funds.

(12)

A weekly path for monetary aggregates consistent with

the monthly figures is shown below:

Monetary Aggregates--Weekly (Daily averages, seasonally adjusted)

Week

Money Supply

Credit Proxy Adjusted

Total Reserves

August 12/

206.4

320.6

28.6

19

206.2

321.3

28.6

26

204.8

321.8

28.8

2

204.8

322.1

28.8

9

206.2

322.4

28.7

16

206.4

323.8

28.8

Sept.

e/

Partly estimated.

-10Alternative (13)

Should the Committee wish to seek a

somewhat more rapid

pace of growth for the money supply and an associated easing of credit conditions between now and year-end, following

language

it

may wish to consider

for the second paragraph

of the directive

the (alterna-

tive B): To implement this

policy, [DEL: while taking account

market-uncertainties; liquidity strains; andthe Treasury financing

of persisting

forthcoming

the Committee seeks to promote SOMEWHAT GREATER

moderate growth in money and bankcredit]over the months ahead, WHILE TAKING ACCOUNT OF PERSISTING LIQUIDITY PROBLEMS AND allowing for-a-possible of credit flows

BANK CREDIT GROWTH TO REFLECT A continued shift from market to banking channels.

market operations until

System open

the next meeting of the Committee shall

be conducted with a view to maintaining bank reserves

and money

market conditions consistent with that objective provided;[DEL:however, that operations shall be modified as needed to counter excessive pressures in financial markets should they develop.] (14)

A monthly and quarterly path for the monetary aggregates,

including a move up to a 6 per cent annual rate of growth for money supply in the fourth quarter, is shown below:

-11-

Monetary Aggregates--Monthly and Quarterly (Daily averages, seasonally adjusted, $ billions)

Adjusted Credit Proxy Money Supply Total Reserves Levels Annual Rate Levels Annual Tate Levels Annual Rate ($ bills.) of Change of Change ($ bills.) of Change ($ bills.)

Month June (actual)

203.6

-1.8

July (actual)

204.3

4.1

315.8

18.1

28.0

5.3

August

205.4

6.5

321.1

20.1

28.6

25.5

September

206.4

6.0

324.3

12.0

28.9

12.5

October

207.3

5.0

328.2

14.5

29.2

13.0

311.1

7.0

27.9

.5

Quarter-1/ 3rd (Sept. over June)

5.5

17.0

14.5

4th (Dec. over Sept.)

6.0

12.5

14.0

(15)

Weekly figures for the period between now and the next

meeting consistent with the above path, are detailed in table.

the following

-12Monetary Aggregates - Weekly (Daily average, seasonally adjusted, $ billion)

Money Supply

Credit Proxy Adjusted

206.4

320.6

28.6

19

206.2

321.4

28.7

26

204.8

321.9

28.8

2

204.8

322.3

28.9

9

206.4

322.8

28.8

16

206.6

324.2

28.9

Week August 12e/

Sept.

e/

Total Reserves

partly estimated (16)

Encouragement of the more rapid growth in

the money

supply indicated above would entail a more generous provision of nonborrowed reserves by the System.

As a result, net borrowed reserves

would likely move into a $500-$700 million range, member bank borrowings drop to $650-$800 million, and the Federal funds rate might generally be in

a 6--6-1/2 per cent range.

A relatively sharp drop in Treasury

bill rates, as well as other short-term rates, probably would accompany such an easing in the money market, particularly if the Federal funds the rate moves down close to/discount rate and engenders expectations of a discount rate reduction. bill ever,

It is not improbable that the 3-month Treasury

rate would drop below 6 per cent under those circumstances. Treasury net cash needs--at $6-$7 billion--are

fairly large over

the balance of the year and would serve to restrain interest rate declines.

How-

-13(17)

In the easier monetary environment envisaged, banks

would be likely to reduce offering rates on large CD's.

Nevertheless,

with market rates reduced, total time deposits would be expected to grow somewhat more rapidly than under alternative A.

As a result of lower

domestic interest rates and strong inflows of funds, banks would probably reduce Euro-dollar borrowings further, although whether individual banks will permit such borrowings to fall below their reserve-free base is not Banks would also reduce their reliance on commercial paper

at all clear.

as a source of funds. (18)

The behavior of long-term interest rates would depend in

large part on expectational reactions in the market to the over-all easing of monetary and credit conditions.

It does not appear likely that a

gradual upward adjustment in the rate of money supply increase would rekindle longer-run inflationary expectations, assuming the very modest growth path of real GNP shown in the greenbook and assuming fiscal policy does not become markedly more stimulative.

Rather, the enhanced credit

availability accompanying the money growth could be accompanied by declining bond yields over the short-run partly as corporate borrowers turn to bank lines of credit in anticipation of lower long-term borrowing costs later in the year.

On balance, one might expect greater growth in money supply

in the second half of this year to be consistent with declining long-term interest rates in corporate, municipal, and mortgage markets, although a pick-up in the volume of security offerings in the latter two markets would tend to act as a brake on the extent of rate decline.

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

Period

Excess reserves

Total

Banks Borrow t C R e s e r v e Major banks 8 N.Y. Outside N.Y.

i ngs Other

Country

Monthly (reserves weeks ending in): 1969--January February March April May June July August September October November December

477 580 635 844 -1,116 -1,078 -1,045 997 744 995 975 849

359 256 202 187 243 277 266 214 282 195 238 278

836 836 837 1,031 1,359 1,355 1,311 1,211 1,026 1,190 1,213 1,127

131 62 58 85 123 57 89 81 83 106 120 268

302 255 233 411 346 459 250 253 236 327 387 310

149 215 254 260 397 288 364 256 222 293 250 220

253 304 293 275 493 550 608 621 485 464 456 329

1970--January February March

-

759 916 751

169 210 129 178 159 171 171

148 106 90 227 165 140 218

287 317 225 331 241 289 460

232 289 287 119 228 217 347

261 414

687 765 736 -1,145

928 1,126 880 865 924 907 1,316

I 8 15 22 29

-

610 317 9'15 811 783

339 179 102 158 111

949 496 1,017 969 894

232 -322 517 63

264 269

161 49

292 178

509 252 361

47 81 259

139 119 211

6 13 20 27

-

424 782 965 889

350 28 214 44

774 810 1,179 933

93 150 332 86

248 254 310 150

220 202 243 247

213 204

3 10 17 24

-1,029 721 390 799

195 136 268 88

1,224 857 658 887

269 195 -97

354 238 251 313

262 169 188 248

339 255 219 229

July

1 8 15 22 29 p

718 -1,219 -1,451 -1,201 -1,137

273 75 230 185 94

991 1,294 1,681 1,386 1,231

93 360 467 139 29

260 412 569 531 528

304 283 371 395 388

333 240 274 321 286

Aug.

5 p 12 p

-

155 s

1,009 1,173

114 30

362 362

302 301

231 128

April May June July p

1970--.Apr.

May

June

p -

Preliminary.

854 045

1

278 188 290 261 291

?Q7 450

Table 2

(In n

es

e

r

v e

Total Reserves

Period

g

a

t

e s

Requ i red Reserves

I

Monetary M n e v

__

Total Member Bank Deposits

-~~~

~

..

S u o

Totial

Currency

Variab i v

es

1 Private Demand Deposits

4

Annually 1968 1969

+ 7.8 - 1.6

+ 6.0

Semi-annually 1st Half 1969 2nd Half 1969 1st Half 1970

+ 0.7 - 3.9 - 0.2

Quarterly 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

+ + +

1st Quarter 1970 2nd Quarter 1970

e

Nonborrowed Reserves I

1969 1969 1969 1969

AGGREGATE RESERVES AND MONETARY VARIABLES Retrospective Changes, Seasonally Adjusted per cent, annual rates based on monthly averages of daily figures)

( nmrcital bink time deposits adiusted

Credit Prnxy + Euro-dollars + Iother nondep. sources of funds

+ 7.9 - 1.2

+ 9.0 - 4.0

+ 7.2 + 2.5

+ 7.4

+ 5.8

+ 7.1 + 1.5

+11.5 - 5.3

n.a. n.a.

- 3.7 - 2.4 + 1.9

+ 1.0 - 3.3

- 3.5 - 4.6 + 3.3

+ 4.3 + 0.6 + 4.0

+ 6.5 + 4.9 + 8.3

+ 3.7 - 0.6 + 2.9

-4.0 -6.7 + 7.1

n.a, - 1.2 + 3.5

- 2.8 - 4.7 - 4.8 - 0.1

+ + +

+

+ 4.1 + 4.5

+ 3.2 + 4.2 - 1.3

-5.1 -3.0 -13.3

+ 1.2

+ + + +

- 2.9 + 2.6

- 0.4 + 4.1

- 2.5 + 2.6

+ 0.6 + 6.0

+ 3.8 +42

+ +

+ 2.9 + 2.8

+ 0.4 +13.8

+ 7.5 - 3.4 -3.8 -8.5 +19.9 - 7.6

+ 4.5 - 4.9 - 8.0 -12.0 + 6.0 - 8.2 -19.3 - 2.8 + 7.7 -17.9 + 5.5 +12.1

+12.7 - 3.0 - 4.4 - 5.0 +14.3 - 8.6 -17.6 - 7.6 - 0.8 -10.4 + 9.3 + 6.9

- 3.2 - 1.2 -10.1 + 4.9 - 1.2 -10.2 -18.9 -11.3 + 1.7 - 9.2 + 9.7

+ 6.2 + 3.1 + 3.1 +79 + 1 2 +12 +42 + 1.8 - 1.8

+ + + + + + + +

2.8 8.3 8.2 2.7 8.1 8.1 5.4 8.0

-10.0 - 4.7 - 0.6

-

2.6

+ 0.6 + 1.2 + 1.8

+10.6 + 7.9

+ 7.1 + 1.6 + 0.8 +11.0 - 1.6 + 3.1 + 1.6 - 4.7 - 0.8 -0.8 -1.6 + 2.3

+ 7.2 -15.6 + 7.5 +25.4 -19.0 + 6.2 -16.7

+ 5.0 -12.9

- 4.2 - 8.0 +14.0 +16.8 - 4.5 + 5.8 +22.7

+ 9.0 -10.7 +13.2 +10.7 + 3.5 - 1.8 + 4.1

+ 5.2 + 7.8 + 7.8 + 7.7 +15.3 + 5.0 + 7.5

0.1 1.2 9.3 1.4

- 3.0

1.7 0.2 8.6 2.0

4.8 2.2 9.4 0.1

Addendum Nonbank commerc ia paper

+27.6 +14.0

+31.0 +

+22.4

+ +

+13.2 +14.3

- 3.6 - 5.4 -18.5 -19.4 - 2.5 -3.7 - 0.6 + 4.3

- 7.0 - 7.5 + 1.6 - 7.9 +13.1 + 0.8

+26.4 +23.8 +40.7 +20.0 +11.7 +34.2

-12.4 - 0.6 +14.4 +22.2 +10.3 + 8.4 +35.2

- 3.5 - 5.5 +10.7 +13.7 - 1.2 + 7.0 +18.1

+ 3.6 +31 7

Monthly

1969--January February March April May June July August September October November December 1970--January February March April May June July p

p - Preliminary.

-22.5 -5.6 -11.7 + 9.7 + 6.3 + 3.1 -12.0 +21.3 -13.9

+ 0.5 + 5.3

+ 0.6 +22.2 -15.1 + 0.9 + 7.9

+10.1 -15.5 +14.1 +10.9 - 2.3 + 2.3

I

4

+J..3 +10.7 -37.3 n.a.

Table 3 AGGREGATE RESERVES AND MONETARY VARIABLES Seasonally Adjusted (Based Reserve Aggregates Period

Total reserves (In

Nonborrowed reserves

I/

Required reserves

millions of dollars)

on monthly averages of daily figures)

Member Bank Deposits sbinorted by Reauired Reserves U .S. Gov't Private Time Tolal demand demand (member hank .i its Sdeposits deposs deposits 1/ denos - 4-. . . Si o n In b i

Money Supply

L~

~-

I Currency 2/ d ol a

Total jLi

of

Commercial 'hink time Private deposits demand adjusted deoosits 3, 4, ,

Credit Prrxy + Eur -d l lars + othel n'ndep. sources of _ .rund

I1

Addendum Nonbank commercial paper

Monthly1969--January February March April May June July August September October November December

28,139 28,060 27,972 27,775 28,235 28,056 27, 30 27,401 27,402 "7. 154 27,783 27,928

27,318 27,206 27,024 26,754 26,888 26,705 26.275 26,214 26, 83 26.210 26,538 26,806

27,9 02 27,8 32 27,7 29 27,6 14 27,9 '42 27,7 42 27,3 134 27,1 61 27,1 64 27.1 29 27,548 27,707

297.0 296.7 294.2 295.4 295.1 292.6 288.0 285.3 28-.7 283.5 285.8 285.8

163.2 161.0 160.5 160.1 159.3 158.1 155.1 152.5 152.1 151.5 151.1 151.5

128.4 129.1 128.9 129.4 130.0 130.5 130.5 129.9 L19.2 128.9 129.1 129.4

54 6.7 48 5 9 59 40 2 4 29 44 3 1 56 4.9

195.8 196.3 196.8 198.1 198.3 199.0 199.3 199.0 199.0 199.1 199.3 199.6

43.5 43.8 44.1 44.2 44.5 44.8 45.0 45.3 45.2 45.6 45.9 45.9

152.3 152.5 152.6 154.0 151.8 154.2 154.4 153.8 15 1.7 15'1. 15 .4 193.7

203.2 202.4 202.3 202.3 201.7 200.8 197.7 194.5 194.1 19.5 193.4 194.1

307.5 105.7 303.8 A04.2 302.2 ^15.5 305.7

25.5 26.1 26.6

1970--January February March April May June July p

28,001 27,722 27,723 28,216 27,890 27,902 28,025

26,966 26,615 26,782 27,350 26,916 27,056 26,679

27,823 27,523 27,536 28,046 27,692 27,713 27,896

284.8 282.9 286.2 290.2 289.1 290.5 296.0

149.4 148.8 150.6 153.5 154.6 155.7 160.7

130.1 128.5 129.8 131.4 131.4 130.0 130.9

5.3 5.6 59 52 30 4.8 4.4

201.1 199.3 201.5 203.3 203.9 203.6 204.3

46.1 46.4 46.7 47.0 47.6 47.8 48.1

155.0 153.0 154.8 156.2 156.2 155.9 156.2

192.1 192.0 194.3 197.9 199.6 201.0 206.9

304.8 303.4 306.1 309.6 309.3 311. 1 315.8

29.1 30.0 30.0 31.8 32.0 31.0 n.a.

1/ 2/ 3/ 4/

/

Private demand deposits include demand deposits of individuals, partnerships, and corporations and net interbank deposits. Includes currency outside the Tresury , the Federal Reserve, and the vaults of all commercial banks. Includes (1) demand deposit, at a11 commercial banks, other than those due to domestic commercial banks and theU.S. Government, less cash item, and(2) foreign demand balances at Federal Reserve Bank . process of collection and Federal Reservefloat, Excludes interbank and U S Government t ime deposit Incldes increases in rrquired reserves due to changes on Regulations M and D of approximately $400 million since October 16, 1969.

in

29.0

Table 4 AGGREGATE RESERVES AND MONETARY VARIABLES Seasonally Adjusted

Reserve

Period

1970--Apr.

1 8 15 22 29

R es resees re ves reserves ervs (In millions of do lats) 27 .954 27,605 27,005 27 ,745 27,566 27,229 28 ,390 27,363 28,290 28 ,448 27,516 28,330 28,051 28 ,282 27,288

m

I er link sI 2902.5 291.6 289.9 290.7 288.4

dpoits 152.0 152.9 153.2 153.8 154.2

oney

Private .S. G ' L demand demand deposits 1/ deposits I n b i 1 1 ion 132.6 5.9 132.8 5.9 132.1 4.6 130.3 6.6 129.8 4.4

Total

Commercial

y

upplybank

d o of 206.8 204.7 203.7 202.5 201.7

Currency 2/ a r s 46.9 46.9 47.1 47.1 47.3

time

Private demand deposits 3

47.6 47.7 47.8 47.8

156.4 155.7 156.0 154.3

200.0 200.5 200.7 201.0

310.8 310.6 311.1 310.5

32.1 2.4

202.3 204.5 206.0 207.6 209.1

312.2 314.2 31).2 315.0 318.8

29.7 29.8 29.0 29.3 29.8

210.2 211.2

319.4 320.6

29.5 n.a.

290.1 289.9 290.3 289.9

155.0 155.3 155.4 155.6

132.1 130.5 129.8 128.8

3.0 4.1 5.1 5.5

204.0 203.4 203.9

5.3 4.0 3.9 3.4 5.6

204.5

202.8 204.3

48.1 48.0

156.6 157.5 156.2 154.8 156.3

5.6 5.6

204.5 206.4

48.0 48.1

156.4 158.3

t 8 15 22 29

28,077 27,698 27,985 28,321 28,092

27,061 26,415 26,414 26,850 26,882

27,794 27,664 27,907 28,059 27,973

291.5 294.3 294.3 294.9 299.2

156.7 158.6 159.8 161.3 162.6

5 12

28,019 28,623

27,020 27,549

27,879 28,431

300.6 301.6

163.7 164,2

131.3 131.7

202.1 205.6 204.3

47.8 48.1 48.0

Private demand deposits include demand deposits of individuals, partnerships, and corporations and net interbank 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, and (2) foreign demand balances at Federal Reserve Banks. process of collection and Federal Reserve float; 4/ Excludes interbank and U.S. Government time deposits. Weekly nonbank commercial paper are not seasonally adjusted. 5/ n a. - Not available. 1/ 2/ 3/

paper

31.7 32.1 32.0 32.3

27,602 27,714 27,744 27,659

199.5 131.8 130.6 130.3 131.0

Comiercl

309.0 307.9 309.5 310.6

27,028 27,419 26,870

ZD, IVL

27,917 28,002 27,645

26,559

NonhaLnk

199.1 199.2 199.7 199.9

3.2 2.3 2.2 4.2

Zl,000

otlhet n ndep. s Il e' If in,

156.4 155.9 157.5 156.2

131.4 131.2 132.4 131.3

3 10 17 24

-

lats + Addendum

47.5 47.6 47.6 47.6

154.3 154.3 154.7 154.7

June

Proxy- +

310.1 111.0 309.4 309.9

288.9 287.8 289.3 290.2

27,710 26,876 26,754

o

dit

Euro-d

196.0 197.2 197.5 198.2 198.8

28,101 27,652 27,702 27,424

28 .481 27 .696 27 ,965 27 ,504

deposit adjusted

Cr

159.9 157.8 156.6 155.4 154.5

203.9 203.5 205.1 203.8

6 13 20 27

Aug.

Moy S

Supported by Required Reserves S_

TTot

May

July

Member Bank Deposits

Reserve Aggrege AggreRates

308.0

less cash items in

31

Table 5 SOURCE OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions of dollars, based on weekly averages of daily figures)

Period

Total Federall Reserve credlt (Excl. float) vhldl

U.S. Government securities otal isg

Bills I/

Other

Repurchase agreements

Year*

1968 (12/27/67 1969 (12/25/68 Weekly. 1970- -Apr.

May

June

- 12/25/68) - 12/31/69)

+3,757

+5,539

+1,298 +5.197

+2,143 (

1 8 15 22 29

71)

6 13 20 27

Aug.

3 10 17

))

-

)

) )

42 ) -- 71)) -) 145)

1 8 15 22 29

145) -) -) 29) 42)

5 12

1/ Figures in p renthesis reflect reserve effect ol mat(lh p - Preliminary.

--- --- 24 July

+1,176 + 707

+4,279 (

71) -=

al e-purchase

)

agreement.

Federal Agency Securities

Bankers' acceptances

S 21

S 52

+

206

+

35

+ + +

225 182 214

+

18 8

-

134

+ -

32 28

+

108

+

16

+

-

S 36 202

+ -

138 138

+ +

71 15 - 86

+ -

632 444 188

+ +

247 196

6 S 38 + 19 23

+

2 14

Member banks borrowings + +

514 245

Cite this document
APA
Federal Reserve (1970, August 17). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19700818
BibTeX
@misc{wtfs_bluebook_19700818,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1970},
  month = {Aug},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19700818},
  note = {Retrieved via When the Fed Speaks corpus}
}