Bluebook

Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act. 1 In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing). 2 A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff. Content last modified 6/05/2009. February 25, 1966. CONFIDENTIAL (FR) MONEY MARKET AND RESERVE RELATIONSHIPS Money markets Recent developments. Since early February, short-term interest rates have moved somewhat higher. In the bill market, the largest increases have occurred in the longest maturities. Demand for Treasury bills has been seasonally strong, but mostly concentrated in the shortest maturities. The reserve position of central money market banks has been relatively comfortable during recent weeks -- in contrast to January -partly because of a sizable drop in funds absorbed in dealer operations. Dealers have had relatively light financing needs because of their reduced positions in bills and their net short positions in intermediate- and long-term coupon issues. Despite the easier position of major money market banks the banking system as a whole has been under greater reserve pressure. In the three statement weeks ending February 23 net borrowed reserves averaged about $120 million, and member bank borrowings close to $500 million -- each up about $70 million from their January average. And the Federal funds market has been somewhat tauter, with trading generally at 4-5/8 per cent and some at 4-3/4 per cent. Prospective developments. Assuming net borrowed reserves work somewhat deeper so as to average around $150 million over the next three weeks, the 3-month bill rate is likely to average within FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, where available, weekly averages of daily figures; amounts in millions of dollars) Mone, Market Indicators 3-month Free Borrow- Federal TreasIReserves ings Funds ury Period Rate Bill U.S. Gov't. (20 yr. Bond Yields Corporate nic New Issues . Flow of Reserves. Bank Credit and Money Non- pal borrowed Re- (Aaa) (Aaa) serves otal Reserves Bank redit Money Proxy Supply Time Deposits 2/ 1965--Jan. Feb. Mar. Apr. May June 115 26 - 50 -133 -159 -178 303 406 395 471 490 534 3.85 3.96 4.04 4.09 4.08 4.01 3.81 3.93 3.93 3.93 3.89 3.80 4.19 4.21 4.20 4.20 4.21 4.21 4.42 4.41 4.45 4.46 4.51 4.58 2.97 2.97 3.09 3.09 3.09 3.15 - 25 +108 + 95 +140 - 21 +147 + 92 +181 +151 +216 - 51 +169 +1,902 +2,023 +1,782 +2,623 + 772 +1,802 July -178 526 4.07 3.83 4.21 4.61 3.16 + 32 + 25 +1,414 + Aug. Sept. -167 -144 549 552 4.11 3.95 3.84 3.92 4.25 4.30 4.63 4.67 3.16 3.25 -115 - 4 - 49 -- +1,608 + 200 +2,500 + 249 +1,600 +1,500 Oct. -135 490 4.05 4.02 4.32 4.69 3.31 + 98 + 56 +2,592 +1,300 +2,000 Nov. - 79 418 4.09 4.08 4.40 4.72 3.34 + 58 - 45 + Dec. - 24 452 4.28 4.37 4.50 4.85 3.39 +361 +333 +2,147 +1,700 +1,500 1966--Jan. - 51 431 4.32 4.58 4.52 4.84 3.39 +107 +122 +1,793 +1,000 +1,000 -108 474 4.58 4.65 4.71 5.00 3.48 + 25 + 56 + Jan. 12 98 590 4.58 4.56 4.50 4.89 19 - 10 218 3.55 4.62 4.50 4.84 26 - 47 352 4.52 4.58 4.52 2 9 p 16 p - 70 -133 -125 418 503 453 4.50 4.62 4.58 4.61 4.62 4.66 23 p -102 520 4.62 4.67 Feb. p Feb. 1964 1965 1965-Nov. 1965 1965-Feb. 1966 107 - 93 -132 - 58 295 467 505 452 3.47 4.05 4.05 4.39 3.55 3.95 3.96 4.53 759 + +2,200 +2,200 +1,100 +1,400 +1,100 +1,300 700 +1,700 100 +1,900 + 900 3.40 - 3.39 -1,000 + 300 4.85 3.39 - 700 + 200 4.58 4.63 4.74 4.91 4.98 5.02 3.39 3.39 3.51 + + + 500 + 200 200 + 200 -400 4.75 5.10 3.62 -- 871 -- 500 -- Averages Year Year Aug. Dec. + 300 - 300 + 600 + 800 -1,100 +1,800 + 400 Annual Rates of Increase- / 4.19 4.27 4.32 4.58 4.44 4.58 4.68 4.90 3.09 3.16 3.26 3.42 + + + + 4.6 +4.2 4.2 +5.1 0.5 -0.5 9.2 +9.4 +7.5 +9.1 +6.8 +8.2 +4.3 +4.8 +5.9 +6.5 +12.8 +16.1 +17.2 + 9.3 Base is average for month preceding specified period. Time deposits, adjusted, at all commercial banks; differes from time deposit required reserve series in Table A-2 since latter includes only member banks. p - Preliminary. 1/ 2/ February 25, 1966. CONFIDENTIAL (FR) a 4.65-4.75 per cent range. -3While bill demand from the System and continuing demand from liquidity-seeking investors may serve to hold bill rates down in the early part of the period, short-term markets probably will be strained over the March tax and dividend date, and it is possible that the pressure will be greater and more extended than usual. Bank and corporate liquidity remains low, with banks faced by sizable CD maturities in the weeks immediately ahead. In addition, by the end of March or early April the Treasury is likely to be raising a small amount of cash in the short-term area and by mid-April corporations are likely to need extra cash to meet accelerated tax payments. To some extent, however, the money market has begun to prepare for a sizable increase in the demand for funds. Dealers have maintained bill positions at relatively low levels, and the more comfortable reserve position of some major money market banks was partly developed in anticipation of an expansion in loan demand. The maturing March tax bill, amounting to $3 billion, is larger relative to tax liabilities than was the case a year ago, which will tend to moderate some portion of market pressures. Even so, banks will have to bid for sizable blocks of CD money over the coming weeks simply in order to keep from losing ground. And this raises the possibility of repercussions on the bill market, the long-term sector of which may already have been affected by recent increases in CD offering rates. -4- CONFIDENTIAL (FR) Interest rates in bond markets are likely to be subject to further upward pressure in the weeks ahead. Corporate and municipal sectors will be absorbing a large volume of new issues. Pressure in the municipal market may also be compounded by lessened bank participation. But the sharp recent adjustments in bond yields may to some extent have already discounted prospective credit demands. Neither is it clear to what degree anticipatory borrowing has been a factor in the long-term rate adjustment. While some further shift in monetary policy may also have been discounted in recent market rate movements, a further lessening of reserve availability in the period ahead to net borrowed reserves staying around $200 million or somewhat above would likely lead to greater upward yield movements in both short- and long-term markets. Partly these would reflect the coincidence of lessened reserve availability with seasonal money market pressures, which would likely lead to immediate effects particularly on Federal funds and CD rates. Moreover, a consistently deeper net borrowed level and tauter money market conditions might lead to more pervasive expectations of rises in the prime loan rate and the discount rate. Reserve flows, bank credit, and money Recent developments. reserves Growth in total and nonborrowed slowed substantially further in February on a monthly average basis. And expansion in total member bank deposits is CONFIDENTIAL (FR) -5- estimated at about 4.5 per cent (annual rate), as compared with 9 per cent in January and 11 per cent in December. The small increases in reserve aggregates and member bank deposits for February in part belatedly reflect the reversal of the extremely large reserve expansion that peaked during the first week of January (as judged by weekly figures for reserves against private deposits). Aggregate required reserves against private deposits declined through January after the first week and have shown only a relatively small expansion thus far in February. Prospective developments. Some supply of reserves from System open market operations is projected the statement week ending March 9. But an about offsetting reserve absorption will be required after midmonth because an increase in float and inflow of currency are projected to more than offset a tax period expansion in required reserves. In March, U.S. Government deposits are projected to decline on average, reaching very low levels by around midmonth prior to the tax date and then recovering. This pattern suggests that money supply will be expanding early in March. Its continued growth as spring progresses will depend in large part on the extent of bank loan demands. With such demands expected to be strong, the growth in the private demand deposit component of the money supply is very likely to accelerate from its recent reduced pace perhaps to an annual rate averaging 5 per cent over the next few months. CONFIDENTIAL (FR) -6- Growth in time and savings deposits thus far in 1966 has remained at a considerably reduced pace (8 per cent annual rate). In the months immediately ahead, there is little reason to expect growth to accelerate. Expansion of total time and savings deposits has been relatively strong at country banks, and this may continue. City banks, however, are likely to find it difficult.to obtain CD funds in the coming March-April period. And this may be a period when their need for CD money will rise if they find loan demand very strong and asset liquidation more difficult. Deposit movements such as those described above would add up to only a moderate expansion in bank credit over the months ahead, perhaps in the order of 5-6 per cent on average. This would also imply only moderate growth in total and nonborrowed reserves. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Period Excess reserves As Member bank borrowines re v i sed to Free reserves date Policy periods As expected at conclusion of each week's open market operations 12/19/62 - 5/22/63 481 179 302 5/22/63 - 7/31/63 437 276 161 7/31/63 - 8/19/64 407 292 115 8/19/64 - 2/3/65 413 325 88 386 368 405 491 - 19 - 123 418 432 345 338 331 356 348 382 408 355 339 427 303 406 395 471 490 534 526 549 552 490 418 452 115 26 - 50 -133 -159 -178 -178 -167 -144 -135 - 79 - 25 380 366 431 474 - 51 -108 1 8 15 22 29 424 455 563 234 461 534 478 486 218 546 -110 - 23 77 16 - 85 -153 9 71 17 - 79 -147 20 57 4 - 69 1966- -Jan. 5 12 19 26 319 688 208 305 562 590 218 352 -243 98 - 10 - 47 -179 88 - 21 - 34 -174 106 - 1 - 50 Feb. 2 9 16 23 348 370 328 418 418 503 453 520 - 70 -133 - 17 -120 -122 -102 - 22 -121 - 99 - 95 2/3/65 - 3/24/65 3/24/65 - 2/23/66 Monthly (reserve weeks ending in): 1965--January February March April May June July August September October November December 1966--January February p Weekly 1965--Dec. p - Preliminary. -125 -102 As first published each week Table A-2 AGGREGATE RESERVES AND RESERVE RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) Total reserves Period Annually: 1963 1964 1965 Policy 8/64 1/65 3/65 11/65 - + 3.5 + 4.2 + 5.2 Period: 1/65 3/65 11/65 2/66 Monthly: 1965--January February March April May June July August September October November December + 5.2 +10.3 + 8.5 +12.1 - 2.8 + 9.4 + 1.4 - 2:7 + 3.1 - 2.5 +18.3 + 6.6 1966--January February p ___________________________ 1/ + 3.0 L Nonborrowed reserves Required reserves by type of deposit Demand Time Private + i U. S. Gov't. Private + 3.5 + 4.6 + 4.2 +15.4 +12.8 +16.3 5.2 5.8 2.4 9.2 +15.3 +15.1 +15.7 + 7.6 - 1.4 + 6.2 + 5.4 + 8.0 - 1.2 + 8.3 + 1.8 - 6.5 - 0.2 + 5.5 + 3.3 +20.2 +21.6 +19.8 +10.3 +13.5 + 9.8 +11.4 +14.5 +24.4 +13.5 +18.7 +14.4 +10.7 + 0.2 + 3.0 + 9.0 +14.8 - 1.3 + 7.8 + 0.7 - 7.1 -11.1 + 8.1 - 6.9 +11.2 - 2.6 - 2.0 + 6.9 + 5.0 -14.0 +15.6 + 1.4 - 0.4 +14.0 + 8.4 - 1.7 +11.7 +10.5 +11.1 + 9.7 + 5.9 + 1.4 + 6.2 + 5.7 +12.0 + 3.1 + 4.1 - 0.1 + 9.1 + 4.4 & _________________ Includes all deposits subject to reserve requirements. movements in total member bank credit. p - Preliminary. Reserve related measures oney -Total member bank deposits suly (credit) 1/ supply + 1.7 + 3.1 + 2.4 1.6 6.0 0.6 8.8 - + 2.4 + 3.2 + 3.5 + 7.5 + 7.6 + 9.1 2.6 2.5 3.5 5.2 + 8.1 +10.4 + 8.0 + 8.2 + 3.8 + 4.3 + 4.8 + 2.3 - 2.3 + 4.5 + 6.0 - 8.2 +13.5 + 5.2 + 1.5 +11.8 + 9.5 + 0.7 +14.1 + 4.1 + 9.6 + 7.5 + 8.4 + 1.3 +13.5 + 3.9 +11.0 . +12.3 + 7.2 - Movements in this aggregate correspond closely with Chart 1 MEMBER BANK RESERVES SEASONALLY ADJUSTED MONTHLY AVERAGES OF DAILY FIGURES 22.5 22.0 21.5 I 21.0 I 20.5 FREE - 4/ RESERVES 00..0 20.0 NONBORROWED TOTAL ., , REQUIRED PRIVATE AGAINST DEPOSITS 19.5 19.0 16.5 REQUIRED PRIVATE DEMAND 16.0 AGAINST-* DEPOSITS 0- ---- * 00 00 00 15.5 15.0 1964 1965 1966 Chart 2 MEMBER BANK DEPOSITS SUPPORTED SEASONALLY ADJUSTED MONTHLY BY REQUIRED RESERVES AVERAGES OF DAILY FIGURES 240 235 230 225 LARS 220 125 215 120 210 115 205 110 105 100 95 U.S. GOVERNMENT -I1 J 1965 DEMAND Chart 3 MONEY SUPPLY BY COMPONENTS SEASONALLY ADJUSTED MONTHLY II AND WEEKLY AVERAGES OF DAILY FIGURES OF DOLL BILLIONS OF DOLLARS 170 165 160 155 135 130 125 120 40 CURRENCY 35 30 S 1964 1965 1966 Table B-l MAJOR SOURCES AND USES OF RESERVES Retrospective and Prospective (Dollar amounts in millions, based on weekly averages of daily figures) Factors affecting supply of reserves = Currency Technical Gold Federal Reserve credit (excl. outside factors Period Change in total = Bank use of reserves Required Excess reserves stock banks net 2/ reserves 3/ reserves +3,125 +3,219 -426 -165 -1,950 -1,847 - 76 -365 +676 +840 +763 +910 - 87 - 70 - 108 678 -450 - 53 +1,028 + 926 -1,277 -1,143 -805 -948 -779 -905 - 26 - 43 1965--Dec. 22 - 325 + 1 - 143 + 812 +344 +673 29 -329 + 369 - 23 + 40 - 114 +273 + 46 +227 5 12 + + 247 118 - 53 + 1 + - 336 16 - 341 140 +190 - 38 +332 -407 -142 +369 - + 412 + 57 -765 -285 -480 + 339 - 401 - 16 -113 + 97 - + + ++ 59 430 133 + 339 41 23 41- + 87 -18 -20 1 + 44 -210 - OO + + + 1/ ________float) ACTUAL Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) Year-to-date: (12/30/64 - 2/24/65) (12/29/65 - 2/23/66) Weekly: 1966--Jan. Feb. 19 -1,232 26 + 2 16 P23 p + 369 SP + 657 363 - 519 1 -- 45 + - 1 2 1 43 22 42 90 PROJECTED 4/ Mar. Apr. For For For See 2 9 16 23 30 + + 6 13 20 + 200 235 -285 40 - -10 10 10 10 - 90 - 415 + 50 + 110 + 185 + + - 60 35 55 400 450 + 50 -155 - 15 +215 -235 + 50 -155 - 15 +215 -235 + - 270 65 475 - 10 - 10 - 10 - 290 - 110 + 190 + + 20 130 400 - 50 - 55 +105 - 50 - 55 +105 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. -- Explanation of Projections in Table B-1 1. Changes in Federal Reserve credit indicate reserves needed to offset projected changes in required reserves and factors affecting the supply of reserves. 2. Projected changes in currency outside banks reflect seasonal movements plus an allowance for growth of about $30 million per week. 3. Projected effects of Treasury operations, included in "technical factors," reflect scheduled and assumed calls in current two weeks and thereafter, maintenance of Treasury balances with Federal Reserve at $500 million. 4. Projected changes in gold stock reflect assumed outflow after March $50 million per month. at the rate of about 5. Projected changes in required reserves reflect estimated seasonal movements in private deposits, except as indicated in projections in Table B-2, and projected movements in U.S. Government demand deposits. Government deposit projections are based on anticipated Treasury receipts and expenditures and the following assumed financing operations: a $100 million increase in the weekly Treasury bill auction from March 3 to March 31; $0.1 billion, March 10; $0.4 billion, April 4. 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 ACTUAL Supporting U. S. Gov't. demand deposits * 11 Supporting private deposits Total Other than Seasonal changes Demand __________ V Time seasonal chanees I. seasonal changes Demand Time Time Demand *I. .ear: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) +763 +910 + 8 -115 +755 +1,025 Year-to-date: (12/30/64 - 2/24/65) (12/29/65 - 2/23/66) -779 -905 + 70 - 50 -849 -885 -863 -828 Weekly: 1965--Dec. 22 29 +673 + 46 +245 +217 +428 -171 +226 -176 +211 - 13 +332 -407 -285 -113 - 89 +421 -207 -104 -284 +269 - 82 - 21 -267 +122 -131 -102 - 36 -169 -212 -148 -198 +141 - 22 - 48 - 56 1966--Jan. Feb. 5 2 9 16 23 -200 -181 +171 + 65 + 22 + 45 + 16 + 55 + 54 + 44 -210 -166 -100 + 18 +144 - 21 -232 -184 -244 2 9 16 23 30 + 50 -155 - 15 +215 -235 - 50 -195 -175 +465 - 75 +100 + 40 +160 -250 -160 + 30 + 20 +180 -230 -170 + + + 6 13 20 - 50 - 55 +105 -190 -330 -100 +140 +275 +205 +150 +265 +215 - 10 + 10 - 10 +239 +542 +471 +467 -178 -132 +137 + 51 PROJECTED Mar. Apr. 1/ 20 20 20 20 10 + 60 -- - 10 -- - --- Reduction in percentage reserve requirements applicable to time deposits released $780 million of reserves at the end of October 1962. 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 Float Foreign deposits and gold loans ACTUAL Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) Other nonmember deposits and F. R. accounts (Sign indicates effect on reserves) -216 -470 +149 - 84 + 88 + 11 - 97 +178 -1,277 -1,143 + 7 + 58 -1,154 -672 + 96 - 4 -226 +533 29 +812 -114 - 66 + 31 +823 -163 + 46 + 14 1966- -Jan. 5 12 19 26 -341 -140 + 57 -401 + - 87 56 38 44 -347 + 24 + 51 -356 - 66 - 81 + 1 + 9 Feb. 2 -339 -417 + 23 +415 - 63 - 33 - 29 +234 -178 -236 + 68 - 63 -173 - 33 -c0 -117 2 - 60 + 95 -150 9 16 23 30 + 35 - 55 +400 -450 + 85 ---- - 50 -100 +340 -450 6 13 20 - 20 +130 +400 - 76 -365 Year-to-date: (12/30/64 - 2/24/65) (12/29/65 - 2/23/66) Weekly: 1965--Dec. 22 9 16 23 PROJECTED Mar. Apr. ---- - 50 + 50 +400 - 10 -- + 5 + 45 + 60 -- --- + 30 + 80 Table B-4 SOURCES OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) U. S. Total Federal Reserve credit Period (excl. float) Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) Government securities Bankers' Total Outright ciacceptancesBills holdings Other Bankers Repurchase Member bank Member bank borrowings agreements + 13 +232 + 39 - 61 + 10 - 60 130 449 -272 -221 - 24 + 16 - 26 - 201 260 - + + - 747 376 87 22 171 + - 24 216 490 123 +202 -101 + + - 89 409 166 360 +249 +3,125 +3,219 +3,076 +3,340 +1,659 +2,086 - 108 678 - 124 628 17 24 - 72 380 - 205 260 1 8 15 22 29 + + 979 441 + + 747 479 - 138 + + 325 369 - 135 55 + 28 5 12 19 26 + 247 2 9 16 23 + 369 + - +1,404 +1,022 Year-to-date: (12/30/64 - 2/24/65) (12/29/65 - 2/23/66) Weekly: 1965--Nov Dec. 1966--Jan. Feb. + + 178 115 - 812 123 657 + + 338 569 363 519 - 308 585 + 118 -1,232 + 45 I II 4 +155 -128 +173 - 56 + 8 -268 +328 +103 - 48 - 33 +199 + 16 + 28 -372 +134 -322 + I + + + +160 -142 -267 42 I -~ I 66 85 50 67 Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted based on monthly averages of daily figures) in millions, (Dollar amounts Required reserves gainst Period reserves reserve Total Total rivate deposits Demand Total Demand 19,185 19,245 19,292 19,361 19,338 19,441 19,577 19,694 15,442 1964--January February March April May June July August September October November December 20,248 20,268 20,459 20,482 20,404 20,682 20,665 20,753 21,012 20,949 21,033 21,082 19,977 19,982 20,176 20,226 20,167 20,431 20,420 20,416 20,638 20,600 20,626 20,886 19,884 19,872 20,056 20,057 20,023 20,269 20,285 20,332 20,570 20,536 20,639 20,742 19,988 20,081 15,646 15,705 15,805 15,886 15,864 15,912 1965--January February March April May June July 21,174 21,355 21,50621,722 21,671 21,840 21,865 21,816 21,816 21,872 21,827 22,160 20,861 20,969 21,064 21,204 21,183 21,330 21,362 21,247 21,243 21,341 21,399 21,760 20,842 20,915 21,119 21,317 21,298 21,473 21,538 21,384 21,420 21,532 21,459 21,793 20,122 20,166 20,294 20,409 20,258 20,506 20,579 20,665 20,903 21,090 21,124 21,326 15,878 15,852 15,943 16,009 15,822 16,028 16,047 16,041 16,227 16,341 16,318 16,477 22,282 22,338 21,867 21,892 21,994 22,001 21,407 21,429 16,533 16,532 August September Oetober November December 1966--January February p p - Preliminary. 19,832 19,960 15,466 15,492 15,527 15,471 15,539 Chart Reference Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) Period Total member bank deposits (credit 1/) e U. S. Gov't. edemand deposits deposit Private demand deposits 2/ 1964--January February March April May June July August September October November December 202,981 203,759 205,068 206,176 206,613 208,669 209,312 211,506 212,906 214,109 215,849 216,738 93,563 94,495 95,011 95,852 96,677 97,542 98,273 99,725 100,670 101,850 103,090 104,215 5,011 4,695 5,308 5,337 5,327 6,061 5,256 5,592 5,368 4,849 5,500 4,932 104,407 104,569 104,749 104,987 104,609 105,066 105,783 106,189 106,868 107,410 107,259 107,591 1965--January February March April May June 218,640 220,663 222,445 225,068 225,840 227,642 106,107 107,843 108,778 109,996 110,898 111,955 5,180 5,642 5,872 6,829 7,967 7,315 107,353 107,178 107,795 108,243 106,975 108,372 July 229,056 113,306 7,253 108,497 August September October November December 230,664 230,913 233,505 234,264 236,411 115,594 116,900 118,718 120,152 121,220 6,614 4,296 4,298 3,785 3,782 108,456 109,717 110,489 110,327 111,409 238,204 121,861 4,556 111,787 239,075 122,432 4,862 111,781 1966--January February p Includes all deposits subject to reserve requirements--i.e., the total of time, private demand,and U.S. Government demand deposits. Movements in this aggregate correspond closely with movements in total member bank credit. 2/ Private demand deposits include demand deposits of individuals, partnerships and corporations and net interbank balances. p - Preliminary. 1/ ChartReference Table C-3 MONEY SUPPLY BY COMPONENTS Seasonally Adjusted (Dollar amounts in billions, based on monthly averages of daily figures) Period Money Supply emanCurrency/ deposits 1/ Currency 1965--January February March April May June July August September October November December 160.0 159.7 160.3 161.1 160.0 161.8 162.5 162.7 164.3 165.6 165.7 167.4 125.5 125.1 125.6 126.4 125.1 126.8 127.3 127.3 128.7 129.7 129.6 131.2 34.5 34.7 34.7 34.7 34.9 35.0 35.2 35.4 35.6 35.9 36.1 36.3 1966--January February p 168.4 168.4 131.8 131.5 36.7 36.8 1 8 15 22 29 165.7 166.6 166.5 167.8 168.6 129.6 130.3 130.2 131.5 132.3 36.2 36.3 36.3 36.4 36.3 5 12 19 26 169.6 169.1 168.1 167.4 133.1 132.5 131.5 130.8 36.4 36.6 36.7 36.6 2 9 p 16 p 23 p 167.9 168.1 168.3 168.3 131.2 131.3 131.5 131.5 36.7 36.8 36.8 36.8 Weekly 1965--Dec. 1966--Jan. Feb. / 1/ 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. 2/ Includes currency outside the Treasury, the Federal Reserve, and the vaults of all cbmmercial banks. p - Preliminary. 

Federal Reserve (1966, February 28). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19660301

@misc{wtfs_bluebook_19660301,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1966},
  month = {Feb},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19660301},
  note = {Retrieved via When the Fed Speaks corpus}
}