H.4.1 Factors Affecting Reserve Balances of Depository Institutions

For immediate release, December 8, 1966. The Federal Reserve System made known today in its Weekly Statement of Condition of the Federal Reserve Banks that the System!s first repurchase agreements involving U. S* Government Agency obligations were made, under authorization by the System Open Market Committee, during the week ended December 7 # At the end of that period, the Condition Statement showed, the Federal Reserve held $21 million in these issues under repurchase agreements similar in terms and conditions to its re purchase agreements involving direct obligations of the United States* The repurchase agreements were entered into pursuant to a recent Act of Congress enlarging the authority of the Federal Reserve to engage in transactions in obligations of the various U, S. Government agencies in addition to the direct obligations of the United States* In view of the importance of the market for Agency issues, repurchase agreements involving these securities increase the scope of the market in which System operations may be conducted, thus adding to the means available to the System for supplying and absorbing reserves. -0- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

\o^Gov l F E D E R AL R E S E R VE Factors Affecting Bank Reserves and Condition Statement of F.R. Banks H.4.'i^" For immediate release December 8, 1966 The average of daily figures of total member bank reserves held during the week ended December 7 decreased a net of $6 million to $23,203 million. Esti mated currency and coin of member banks decreased $17^ million and their reserve balances at the Federal Reserve Eanks increased $168 million. Estimated required reserves increased $228 million; and estimated excess reserves decreased $23^- mil lion to $204 million. Member bank borrowings at the Federal Reserve Banks exceeded excess reserves by $2^5 million, compared with the revised net borrowed figure of $198 million the week before. The principal changes supplying average reserve balances with Federal Reserve Banks were increases of $l4l million in U. S. Government securities bought outright, $124 million in U. S. Government securities and Federal Agency obligations held under repurchase agreements, and $112 million in Federal Reserve float, and a decrease of $104 million in Treasury deposits with Federal Reserve Banks. The principal offsetting changes were decreases of $187 million in member bank borrow ings, and $72 million in gold stock, and an increase of $109 million in currency in circulation. Total Reserve Bank credit increased $208 million. As of December 7, holdings of U. S. Government securities bought outright were $52 million higher than a week earlier, U. S. Government securities held under repurchase agreements were $28l million lower, and member bank borrowings were $100 million lower. Averages of daily figures Member bank reserves, Week ended Change from week ended Wednesday, Reserve Bank credit, Dec. 7, Nov. 30, J Dec. 8, Dec. 7, and related items 1966 1966 1 1965 1966 (In ma. llions of dollars) Reserve Bank credit: U. S. Government securities — Bought outright—System account 43,312 +141 +2,401 43,3^2 Held -under repurchase agreements 471 +115 + 368 3M Federal Agency obligations — Held under repurchase agreements 9 *• 9 9 21 Acceptances« Bought outright 56 + 4 __ 59 Held under repurchase agreements 76 + 15 — 67 Discounts and advances— Member bank borrowings kh9 -187 - 29 3^5 Other 13 - 1 - 23 13 Float 2,014 +112 + 154 1,663 Total Reserve Bank credit 46,399 +208 +2,880 45,851 Gold stock 13A58 - 72 - 651 13,159 Treasury currency outstanding 6,252 + 11 + 704 6,255 65,809 +148 +2,932 65,265 Currency in circulation 44,210 +109 +2,281 44,485 Treasury cash holdings 1,188 — + 372 1,200 Treasury deposits with F. R. Banks 452 -104 - 218 197 Foreign deposits with F. R. Banks 162 -- + 7 205 Other deposits with F. R. Banks 415 - 2 + 190 406 Other F. R. accounts (net) 255 - 24 - 205 173 46,682 - 21 +2,427 K6,666 Member bank reserves: With Federal Reserve Banks 19,126 +168 + 504 18,598 Currency and coin (estimated) 4,077 -174 + 365 4,412 Total reserves held 23,203 - 6 + 869 23,010 Required reserves (estimated) 22,999 +228 +1,126 22,977 Excess reserves (estimated) 204 -234 - 257 33 On December 7, 1966, U. S. Government securities held in custody by the Federal Reserve Banks for foreign account were $7,353 million, a decrease of $97 million for the week and a decrease of $928 million from the comparable date a year ago. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

H. 4.1(a) CONSOLIDATED STATEMENT OP CONDITION OF THE TWELVE FEDERAL RESERVE BANKS (in millions of dollars) Change since Dec. 7, Nov. 30, "Dec. 8, 1966 1966 1965 A S S E TS Gold certificate account 10,839 - 13 - 973 Redemption fund for F. R. notes 1,824 + 9 + 131 Total gold certificate reserves 12,663 Cash (616) 284 - 9 + 181 Discounts and advances 358 -100 + 177 Acceptances: Bought outright 59 + 5 + 3 Held under repurchase agreements 67 - 10 + 2 Federal Agency obligations— Held under repurchase agreements 21 + 21 21 U. S. Government securities: Bought outright—total 43,3^2 + 52 +2,416 Bills 11,525 + 52 +1,977 Certificates 4,351 +4,351 Notes 21,278 -3.550 Bonds 6,188 - 362 ;-Held: under repurchase agreements 341 -281 + 341 Total U. S« Government securities £3^3 -229 +2,757 Total loans and securities 4T7IH5 -313 +2,960 Cash items in process of collection ,631) 6,875 -337 + 610 Bank premises 103 + 1 Other assets l/ 1,310 +158 + 419 TOTAL ASSETS/LIABILITIES & CAPITAL ACCOUNTS (2,2^7) 65,^23 -505 L I A B I L I T I ES Federal Reserve notes (616) 39,219 +266 +1,951 Deposits: Member bank reserves 18,598 -495 + 915 U. S. Treasurer—general account 197 -102 - 461 Foreign 205 + 9 + 59 Other 2/ ko)£6 + 7 + 188 ^5HI Total, deposits 19,406 + 701 Deferred availability cash items (1,631) 5,212 -220 + 541 Other liabilities and accrued dividends 263 - 8 + 52 TOTAL LIABILITIES (2,2^7) 64,100 •^3 +3,245 C A P I T AL A C C O U N TS Capital paid in 569 + 1 + 23 Surplus 551 + 27 Other capital accounts 203 + 37 + 34 Ratio of gold certificate reserves to F. R. note liability (computed from figures as shown in the following pages—not consolidated) 31*8$ -.2$ - 3.9* Contingent liability on acceptances purchased for foreign correspondents 206 + 3 + 57 * Figures in parentheses are the eliminations made in the consolidating process; see comparable figures on combined basis on the following pages. 1/ Includes assets denominated in foreign currencies and IMF gold deposited. 2./ Includes IMF gold deposit. MATORITT DISTRIBUTION OF LOANS AMD SECURITIES, DECEMBER 7, 1966 (Acceptances and securities held under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements.) U. S. Government securities and Discounts and Federal Agency obligations advances Acceptances Holdings Weekly changes Within 15 days 3^9 78 1,667 -376 16 days to 90 days 9 48 8,458 +112 91 days to 1 year „ — 24,748 + 56 Over 1 year to 5 years »- -- 7,446 -- Over 5 years to 10 years -- — $88 -- Over 10 years. , 397 -- Total 1ZK lpfi -onfl Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

H.4.l(b) STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK CN DECEMBER 7, 1966 San New Phila Cleve- Rich St. Minne- Kansas Total Boston Atlanta Chicago Dallas Fran- York delphia land mond Louis apolis City cisco T5T millions3 of dollars) A S S E TS Gold certificate account 10,839 599 2,550 611 980 1,044 584 2,143 387 190 373 337 1,041 Redemption fund for F. R. notes 1,824 100 435 94 151 I67 103 332 65 32 69 61 215 Total gold certificate reserves 12,663 699 2,985 705 1,131 1,211 687 2,475 452 222 ~kkz 398 1,256 F. R. notes of other Banks 6l6 47 148 25 60 54 60 55 18 22 21 35 71 Other cash 284 9 28 7 43 16 36 45 32 8 13 18 29 Discounts and advances 358 12 70 9 6 14 36 109 10 5 18 16 53 Acceptances: Bought outright ?? -- I? " -- -- -- -- -- -- -- -- — Held under repurchase agreements 67 — - 67 - - — — — •" — ~ -- —— "*- - - — -- Federal Agency obligations-- Held under repurchase agreements 21 21 U. S. Government securities: Bought outright-- Bills 11,525 609 2,807 598 934 833 629 1,927 405 230 446 446 l,66l Certificates 4,351 230 1,059 226 352 314 238 727 153 87 169 169 627 Notes 21,278 1,125 5,181 1,104 1,724 1,537 1,163 3,557 747 425 824 824 3,067 Bonds 6,188 327 1,507 321 502 447 338 1,C34 217 123 240 240 892 Total 43,342 2,291 10,554 2,249 3,512 3,131 2,368 7,245 1,522 865 1,679 1,679 6,247 Held under repurchase agreements ^41 __ "341 -.. -- _- -- -.- _-. -- -- Total U. S. Government securities k\.68l 2,291 10,895 2,249 \. 512 ^,131 2,^68 7,245 1.522 865 1.679 1.679 6,247 Total loans and securities 44,188 2,303 11,112 2,258 3,518 3,1^5 2,404 7,354 1,532 870 1,697 1,695 6,300 Cash items in process of collection 8,506 563 1,^33 497 586 700 712 1,426 466 288 596 436 803 Bank premises 103 3 9 3 5 5 20 20 8 3 8 10 9 Other assets l/ 1,310 53 495 62 95 61 64 161 38 26 49 59 147 TOTAL ASSETS 67,670 3,677 16,210 3,557 5,438 5,192 3,983 11,536 2,546 1,439 2,826 2,651 8,615 1/ Includes assets denominated in foreign currencies and IMF gold deposited* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

H.4.1(c) STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON DECEMBER 7, I966 San Total Boston New Phila Cleve Rich Atlanta Chicago St. Minne- Kansas Dallas Fran York delphia land mond Louis apolis City cisco (Ir1 millions of dollars) L I A B I L I T I ES Federal Reserve notes 39,835 2,373 9,136 2,269 3,301 3,653 2,296 7,228 1,461 702 1,501 1,266 4,649 Deposits: Member bank reserves 18,598 703 4,957 759 1,485 860 988 2,925 659 464 820 949 3,029 U. S. Treasurer-general account 197 * 189 1 * 1 11 * 1 * 1 2 Foreign 205 9 1/ 6Q 10 17 10 11 26 7 4 8 11 24 Other 4o6 1 2/334 2 * 4 2 2 1 * 2 1 57 Total deposits 19,406 713 5,548 772 1,502 875 1,002 2,954 667 469 830 962 3,H2 Deferred availability cash items 6,843 514 1,108 433 498 573 592 1,117 364 232 428 340 644 Other liabilities and accrued dividends 263 13 75 i3 20 18 14 41 9 5 10 10 35 TOTAL LIABILITIES 66,347 3,613 15,867 3,487 5,321 5,H9 3,904 11,340 2,501 1,408 2,769" 2,578" 8,446 CAPITAL ACCOUNTS Capital paid in 569 27 148 30 51 30 35 82 20 14 25 33 74 Surplus 551 27 144 30 50 28 33 79 19 13 32 72 24 Other capital accounts 203 10 51 10 16 15 11 35 6 4 8_ 29 8 TOTAL LIABILITIES AND CAPITAL ACCOUNTS 67,670 3,677 l6,2iq_ 3,557 5,438 5,192 3,983 11,536 2,546 1,439 2,826 _2,„65l 8,615 . Contingent liability on accept ances purchased for foreign corre spondent s 206 10 3/ 54 11 19 11 ____12_ 29 7_ 5_ 9_ 12 27. . FEIERAL RESERVE AGENT'S ACCOUNTS F. R. notes outstanding 41,714 2,447 9,576 2,320 3,531 3,763 2,448 7,529 1,535 733 1,572 1,361 4,899 Collateral for F. R. notes: Gold certificate account 6,472 500 1,000 490 600 755 450 1,100 310 127 225 180 735 Eligible paper 16 6 10 U. S. Government securities 36,721 2,016 8,700 2,000 3,000 3,060 2,050 6,700 1,310 .. 555 1,400 1,230 4,600 Total collateral 43,209 2,516 9,700 2,496 3,600 3,815 2,500 7,800 1,630 782 1,625 1,410 5,335 1/ After deducting $137 million participations of other Federal Reserve Banks. 2/ Includes IMF gold deposits. 3/ After deducting $152 million participations of ether Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis