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. CONFIDENTIAL (FR) May 6, 1966 MONEY MARKET AND RESERVE RELATIONSHIPS Money markets Recent developments. Interest rates on a variety of short- term debt instruments have moved higher in recent weeks, and the money market has displayed a generally tight atmosphere. Federal funds have traded mainly at 4-3/4 per cent, but with an increasing amount of trading at higher rates, including trading most recently at 5 per cent and a few reported transactions at 5-1/8 per cent. With a tight funds market, dealer financing costs have moved into a higher range. Since mid-April the 3-month bill rate has held close to 4.65 per cent after rising around 15 basis points earlier in the month. Because of high financing costs, dealers have not been very willing holders of bills recently; still, demand for bills from the public and the System has remained fairly large, although there was some disappointment about the extent of bill demand associated with the refunding. The recently tighter atmosphere of money markets has reflected in part the increased pressure on bank net reserve positions. Over the four statement weeks ending May 4, net borrowed reserves averaged about $270 million and member bank borrowings about $635 million--compared with averages of $225 million and $565 million, respectively, in the previous 4 weeks. Member bank borrow- ings averaged above $600 million in every week since late March. (Monthly averages and, FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE where available, weekly averages of daily figures; amounts in millions of dollars) Money Market Indicators Period Free RerFre 3-Month IBorrowFederal 3Month log Funds 1 Treas- Reserves s ings Funds ury Rate Bill Bond Yields U.S. Gov't. (20 yr) Flow of Reserves, Corporate porate Munici-New Issues pal (Aaa) (Aaa) Total b Nono borrowed Rer Reserves serves Bank Credit and Money Banki Credit Prox Money Money Proxy Supply i Time s Deposits 2/ 1965--Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. - 46 -129 -156 -176 -178 -162 -139 -132 - 77 - 22 395 471 490 534 527 549 552 490 418 452 4.04 4.09 4.08 4.01 4.07 4.11 3.95 4.05 4.09 4.28 3.93 3.93 3.89 3.80 3.83 3.84 3.92 4.02 4.08 4.37 4.20 4.20 4.21 4.21 4.21 4.25 4.30 4.32 4.40 4.50 4.45 4.46 4.51 4.58 4.61 4.63 4.67 4.69 4.72 4.85 3.09 3.09 3.09 3.15 3.16 3.16 3.25 3.31 3.34 3.39 + 89 +148 - 31 +151 + 30 -116 + 11 + 85 + 59 +365 +145 +224 - 61 +173 + 23 - 50 + 14 + 44 - 44 +338 +1,782 +2,623 + 772 +1,802 +1,414 +1,608 + 249 +2,592 + 759 +2,147 + 600 + 800 -1,100 +1,800 + 700 + 200 +1,600 +1,300 + 100 +1,700 +1,100 +1,400 +1,100 +1,300 +1,700 +2,500 +1,500 +2,000 +1,900 +1,500 1966--Jan. Feb. Mar. Apr. p - 51 -117 -210 -276 431 474 545 638 4.32 4.58 4.64 4.64 4.58 4.65 4.58 4.61 4.52 4.71 4.72 4.65 4.84 4.96 5.27 5.05 3.39 3.48 3.55 3.46 +103 + 41 - 59 +230 +117 + 85 + 62 +327 +1,793 + 820 + 744 +3,609 +1,000 - 400 +1,200 +1,900 +1,000 + 800 + 800 +1,900 2 9 16 -171 -254 -173 464 614 536 4.62 4.65 4.55 4.64 4.59 4.66 4.80 4.79 4.75 5.28 5.34 5.29 3.63 3.61 3.56 + + + 416 408 193 +1,000 + 200 + 500 + + 200 -300 23 -231 602 4.70 4.55 4.67 5.09 3.51 + 151 + 600 + 300 30 -220 508 4.65 4.51 4.66 5.02 3.44 + 727 - 700 + 400 Apr. 6 13 20 p 27 p -290 -243 -310 -264 623 603 685 642 4.75 4.68 4.78 4.38 4.51 4.62 4.66 4.64 4.60 4.62 4.67 4.68 4.90 5.04 5.16 5.09 3.44 3.42 3.47 3.50 +2,211 + 568 77 + 764 +1,000 +1,100 - 100 - 200 + + + + 500 500 400 400 May 4 p -280 617 4.78 4.65 4.71 5.15 Averages 3.52 + 507 + 100 + Annual Rates of Increase 1/ 200 Mar. Year 1964 107 1965 - 90 Recent variations in growth Dec. 1 - Feb. 2 - 31 Feb. 2 - Mar. 16 -166 Mar. 16 - Apr. 20 -259 Apr. 20 - May 4 -273 Dec. 1 - May 4 -142 295 3.47 3.53 4.19 4.44 3.09 + 4.6 + 4.2 + 7.6 + 4.3 +12.8 467 4.05 3.95 4.27 4.58 3.16 + 4.2 + 5.1 + 9.1 + 4.8 + 3.6 430 515 604 630 4.31 4.61 4.71 4.58 4.49 4.64 4.57 4.64 4.52 4.74 4.64 4.70 4.85 5.16 5.04 5.12 3.40 3.55 3.46 3.51 +10.4 - 1.2 +15.5 +13.6 + 7.7 + 6.7 +11.7 - 1.5 + 7.9 + 6.4 +14.6 +10.3 511 4.51 4.56 4.62 5.02 3.46 + 8.8 + 7.6 + 9.4 Base is average for month preceding specified period or in the case of weekly periods, the first week shown. Time deposits, adjusted, at all commercial banks differs from time deposit required reserve series in Table A-2 since latter includes only member banks. p - Preliminary May 6, 1966. 1/ 2/ CONFIDENTIAL (FR) - 2 - Prospective developments. On the assumption that net borrowed reserves will continue to average $250-$300 million over the next 4 weeks, the 3-month bill rate is likely to fluctuate mainly within a 4.60 to 4.75 per cent range. Departures from this range on some days are quite possible, however, as strong crosscurrents will be at work in the bill market. Among the factors tending to lower rates will be a seasonal tendency toward decline, particularly with the maturity of $4.5 billion of tax bills in midJune. Some demand for bills also could be generated over the near- term from temporary investment of the cash proceeds of Treasury issues not exchanged in the current refunding (in which the attrition rate was above 40 per cent even after sizable Treasury purchases of when-issued securities before books were closed). In addition, demand for short Governments stemming from reinvestment of proceeds from security flotations is likely to continue. Any renewed weakness in the stock market also could generate some downward pressure on bill rates. Among the factors which will tend to exert a tightening influence on rates will be continuing pressure from dealer financing costs associated with a taut Federal funds market. While dealers have reduced their bill inventories somewhat recently, these remain well above the low levels of late winter and any efforts by dealers to work current inventories lower would tend to be reflected in higher rates. Prospects of a large supply of Federal agency issues CONFIDENTIAL (FR) - 3 - in the weeks ahead are also likely to exert upward pressure on bill rates, as will continued aggressive bank efforts to attract CD funds especially in preparation for the June dividend and tax dates. Finally, the System will return to the selling side of the bill market around mid-May, although its sales to absorb reserves are not expected to be as large as its recent purchases. Some deepening of net borrowed reserves in the period ahead may have been already discounted by the market, but a substantial decline to, say, around $400 million, probably would have a significant psychological impact. The reserve pressure itself will have a substantial effect on already high day-to-day financing costs. And the 3-month bill rate would likely under the circum- stances rise to a range above 4.75 per cent. Market uncertainties, as reflected in recent gyrations of common stock prices, make the outlook for bond yields more cloudy than usual. In the absence of further expectational shocks, however, bond yields are likely to drift higher in the weeks ahead even if net borrowed reserves are little changed from current levels. Contributing factors will be the continuing large corporate and municipal calendar and the likelihood of some agency financing in the intermediate-term area. A substantial further tightening of bank reserve positions would accelerate such a rise in bond yields. CONFIDENTIAL (FR) - 4 - A 3-month bill fluctuating above 4-3/4 per cent would certainly result in active market discussion about the sustainability of the existing time deposit ceiling rate and of the discount rate. The discount rate would appear to be the more immediately vulnerable as bill rates rise; banks will become increasingly desirous of borrowing as they find their reserve positions under pressure and Federal funds trading more frequently at a large premium above the discount rate. Reserve flows, bank credit, and money Recent developments. In April both private demand and time deposits showed their largest increases in several months and U. S. Government deposits rose moderately. Thus, total member bank deposits (credit proxy) increased sharply in April. With all types of deposits increasing, required reserves increased at nearly a 15 per cent annual rate in April, and total reserves rose somewhat more as some banks added to their excess reserves after the low March level. The System supplied the bulk of the increase in reserves, with nonborrowed reserves rising at about a 13 per cent annual rate, but banks were also forced to increase their borrowings at the Federal Reserve. Since around mid-April outstanding private demand deposits and the total money supply have declined slightly. Growth in bank credit (as measured by the proxy) has continued, but at a pace CONFIDENTIAL (FR) - 5 - slightly slower than from mid-March to mid-April. U.S. Government deposits have grown sharply over the past two weeks, contributing in part to the slowing of money expansion. Meanwhile, total time and savings deposits have continued to increase, but the very latest data suggest that the sharp spurt in the latter part of March and April may be tapering off. Prospective developments. Assuming no change in net borrowed reserves from recent levels and continued strength in loan demands from businesses and financial institutions, the principal potential factors affecting variations in the growth of bank credit and deposits between now and midyear include the following: (1) repayments of loans made by banks related to the March-April tax period and sales of liquid assets that banks accumulated over that period; (2) the rise in U.S. Government deposits, associated in part with issues of agency debt; (3) pressures developing around the June dividend and tax periods; and (4) more moderate growth in time deposits. Considering these factors, it appears likely that bank credit growth may average around 8 per cent between now and midyear, with the rate of growth tending to be moderate in May and larger in June. In the weeks immediately ahead, expected repayments of security loans, together with bill sales by dealer banks, will tend to reduce bank credit growth. And these factors, together with a CONFIDENTIAL (FR) - 6 - continued rise in U.S. Government deposits, may lead toa decline in outstanding private demand deposits and the money supply. As spring progresses, further pressures for credit expansion are likely to develop as a result of sizable Federal agency issues (which could total $2 or $3 billion for new cash--although this is more than usually subject to a number of uncertainties) and June speed-ups of corporate income tax payments and corporate remittances to the Treasury of individual income tax withholdings. Private demand deposit growth may be resumed later in the spring. Over the next two months, on balance, such deposits may show little change, which would bring the annual rate of increase over the first half of 1966 to around 4.5 per cent. It is not expected that banks' time deposits will expand as rapidly over the next few months as they did in April. As the initial impact of higher rates on savings certificates passes, gains should be more moderate. And while we do not have current information on CD maturities, it appears likely that banks may find it more difficult to replace maturing issues in view of the competition from other short-term paper. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess reserves Period As rev Member bank borrowings ised to Free reserves date Monthly (reserves weeks ending in): As As first expected at conclusior of each 1965--March April May June July August September October November December 349 342 334 358 349 387 413 358 341 430 395 471 490 534 527 549 552 490 418 452 - 46 -129 -156 -176 -178 -162 -139 -132 - 77 - 22 1966--January February March April p 380 357 335 362 431 474 545 638 - 51 -117 -210 -276 319 688 208 305 562 590 218 352 -243 98 - 10 - 47 88 - 21 -34 106 - 1 - 50 February 2 9 16 23 348 344 337 398 418 503 453 520 - 70 -159 -116 -122 - 17 -120 -122 -102 - 22 -121 - 99 - 95 March 2 9 16 23 30 293 360 363 371 288 464 614 536 602 508 -171 -254 -173 -231 -220 -172 -219 -224 -274 -229 -186 -193 -217 -260 -222 April 6 13 20 27 333 360 375 378 623 603 685 642 -290 -243 -310 -264 -225 -286 -281 -280 -241 -282 -270 -316 May 4 337 617 -280 -280 -280 published each week week's open market operations Weekly 1966--January 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) Re s e r v e Total Reserves Nonbor A g g r e g a t e s Mo n e tar Required reserves d Against Total Demand Total Member an De Deposits vVariab Time Deposits (comm. banks) es Money Supply Private Total Demand Deposits __ Annually: 1963 1964 1965 + 3.5 + 4.2 + 5.1 + 3.5 + 4.6 + 4.2 + 3.8 + 4.9 + 5.0 + 1.7 + 3.1 + 2.4 + 7.5 + 7.6 + 9.1 +14.7 +12.8 + 3.6 + 3.8 + 4.3 + 4.8 + 3.2 + 4.0 + 4.8 Monthly: 1965--January February March April + 5.3 +10.4 + 8.1 +12.5 + + + 1.4 6.4 5.1 8.4 + 5.7 + 4.3 +11.5 +11.4 + 0.2 + 3.0 + 9.0 +14.8 +10.5 +11.1 + 9.7 +14.1 +20.9 +20.5 +10.1 +12.7 + + + 2.3 2.3 4.5 6.0 + + + - 1.8 - - May - 1.3 + 4.1 + 9.9 - 8.2 -12.3 June July August + 9.6 + 1.3 - 2.7 + 8.6 + 1.7 - 6.5 + 9.8 + 3.6 - 8.7 + 7.8 + 0.7 - 7.1 + 9.6 + 7.5 + 8.4 +11.6 +15.0 +21.8 +13.5 + 5.2 + 1.5 +16.3 + 4.7 -- September October + 0.8 + 2.4 + 0.6 + 4.8 + 2.3 + 6.1 -11.1 + 8.2 + 1.3 +13.5 +12.8 +16.9 +11.8 + 9.5 November +13.2 + 9.3 - 2.4 + 3.3 - 3.8 - 7.0 + 3.9 +15.9 + 0.7 - 0.9 December +18.6 +20.5 +18.3 +11.2 +11.0 +12.4 +12.3 +14.8 1966--January 1 1/ / 1.0 3.8 4.8 7.6 3.4 1.1 + 6.3 + 5.7 +11.5 +12.0 February + 9.1 + 4.6 + 2.2 + 8.2 - 0.1 + 7.2 + 2.9 + 5.5 + 4.1 March April p + 6.5 - 2.9 + 3.3 +17.5 - 5.5 - 3.2 +12.6 + 4.5 +14.6 + 1.1 +18.3 + 3.7 +18.1 + 6.5 +15.2 + 8.6 +13.5 +10.1 +16.3 requirements. reserve to subject deposits all Includes Movements in this aggregate correspondence Includes all deposits subject to reserve requirements. movements in total member bank credit. p - Preliminary. Movements in this aggregate correspond closely with Chart I MEMBER BANK RESERVES SEASONALLY ADJUSTED MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 22.5 22.0 21.5 21.0 20.5 FREE RESERVES / REQUIRED oveo 20.0 - a- TOTAL PRIVATE AGAINST DEPOSITS 19.5 19.0 16.5 REQUIRED AGAINST PRIVATE 16.0 DEMAND DEPOSITS t -4 .. go_g-o__ 15.5 15.0 S 1964 D M J 1965 S D M 1966 J Chart 2 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES I I BILLIONS OF DOLLARS BILLIONS OF DOLLARS TOTAL MEMBER BANK (Credit DEPOSITS 245 Proxy) 240 235 230 MONEY 170 165 SUPPLY 4 225 - 220 4 WEEK MOVING AVERAGE 160 155 TIME (All DEPOSITS ADJUSTED- Commercial Banks) 150 145 140 135 CD'S NEGOTIABLE 130 (Unadjusted)--I 20 b 15 I IT I I 10 J 1965 1966 Chart 3 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 45 MONEY SUPPLY COMPONENTS: 40 CURRENCY OUTSIDE BANKS 35 30 140 135 DEMAND DEPOSITS 130 125 * - 4 WEEK MOVING AVERAGE 120 15 - U.S. GOVT. DEMAND DEPOSITS (Member Banks) 10 M J 1965 S D M J 1966 S D Table B-1 MAJOR SOURCES AND USES OF RESERVES Retrospective and Prospective (Dollar amounts in millions, based on weekly averages of daily figures) Factors affecting supply of reserves Federal Reserve credit (excl. float) 1/ Period Gold o stock Currency outside banks = Technical factors net 2/ Change in total reserves Bank use of reserves Required Excess reserves reserves 3/ ACTUAL Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) Year-to-date: (12/30/64 - 5/5/65) (12/29/65 - 5/4/66 Weekly: 1966--Mar. Apr. May +3,125 +3,219 -426 -165 -1,950 -1,847 - 76 -365 +676 +840 +763 +910 - 87 - 70 +985 + 81 -977 -153 +770 +543 -1,027 -783 -246 -313 - 18 -189 -228 -124 2 9 16 23 30 -115 +450 -100 - 3 + 71 ---- 29 - 72 +143 -528 + 90 + 16 +233 - 19 + 8 + 86 +288 -448 + 10 - 71 + 76 +275 -220 +115 -138 + 73 +267 -137 -105 + 67 + 3 + 8 - 83 + 1 -440 +107 +182 +137 + 45 -312 +482 + 44 + 17 + 27 +367 +287 +206 +191 + 15 +227 -367 + + + 6 +512 13 -126 20 p -444 27 p +145 4 p PROJECTED 4/ -- - 1 -- 8 5 +369 + 1 -153 - 64 +151 +192 May 11 18 25 +450 -475 +100 --- 10 -500 +145 +150 -120 +320 -290 -170 - 10 - 50 -170 - 10 - 50 June 1 8 15 22 +370 +320 -180 - 65 - -115 -415 + 85 + 35 -300 + 80 +115 +565 - 55 - 25 + 10 +525 - 55 - 25 + 10 +525 For For For See 10 10 10 10 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. 3 - 41 -- Explanation of Projections in Table B-1 1. Changes in Federal Reserve credit inciate 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 $200 million. 4. Projected changes in gold stock reflect assumed outflow after $50 million per month. May 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: $-0.5 billion, May, 16;(attrition); $0.4 billion, May 23; $0.2 billion, May 25. 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 Supporting U. S. Gov't. demand deposits 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) +763 +910 + 8 -115 Year-to-date: (12/30/64 - 5/5/65) (12/29/65 - 5/4/66) - 18 -189 +277 - 23 Weekly: 1966--Mar. 2 +115 9 -138 16 Period Total Supporting private deposits Other than Seasonal changes seasonal changes s lc Sea Demand Time Demand Time ACTUAL Year: Apr. May + 45 + 16 --- +239 +542 +471 +467 -295 -166 -675 -667 + 70 + 81 + 71 +260 +239 +160 - 96 +211 + 30 + 18 +171 - 8 -193 + 55 + 19 + 18 + 17 + 1 + 73 -206 +279 +181 - 9 + 89 + 18 23 30 +267 -137 +398 + 23 -131 -160 -231 -168 - 18 + 9 + 95 - 19 + 23 + 18 +755 +1,025 6 +137 -124 +261 +184 - 9 + 57 + 29 13 + 17 -314 +331 +266 + 9 + 49 + 20 p 2 7p +191 + 5 -126 +202 +316 -197 +229 -166 + 9 9 + 83 - 51 + 14 + 11 +192 +381 -189 -183 + 9 - 14 - 11 -170 + 70 -240 -215 + 10 - 45 + 10 18 25 - 10 - 50 +190 +125 -200 -175 -200 -165 -- 10 1 8 15 22 - 55 - 25 - 10 +525 - 95 -150 -285 +560 + 40 +125 +275 - 35 + 30 +135 +265 - 15 + + - 4p 7 1 PROJECTED May June p - Preliminary. 10 10 10 20 -- -- Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Technical factors (net) Period Treasury operations Float Foreign deposits and gold loans ACTUAL Year: 1963 (12/26/62 - 12/ 25/63) 1964 (12/25/63 - 12/ 23/64) (Sign indicates effect on reserves) -216 -470 +149 -365 -1,027 -784 + 33 +267 -1,243 -785 2 9 16 23 30 - 19 + 8 + 86 +288 -448 + 53 +227 + 98 -177 -102 - 67 -195 - 38 +346 -346 + 1 - 2 + 49 + 78 - 4 6 -107 +482 +287 -367 +257 +194 -132 -191 -104 +232 +307 -188 - 8 + 41 + 99 - 4 - 6 - - 76 - 84 + 88 + 11 - 97 +178 + 42 +141 -242 Year-to-date: (12/30/64 - 5/5/65) (12/29/65 - 5/4/66) Weekly: 1966--Mar. Apr. 13 20 27 Mav May June 4 PROJECTED 1 _ - 24 At + 11 -120 + 40 -175 18 25 +320 -290 + 75 -- +320 - 25 --- 1 8 15 22 -300 + 80 +115 +565 -300 +80 + 60 +500 -- ----- + 10 + 5 - 75 -265 . -- -- + 55 + 65 Table B-4 SOURCES OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions, r ~ I Period Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) based on weekly averages of daily figures) Total Federal Reserve credit (excl. float) holdings +3,125 +3,219 +3,076 +3,340 U. S. Government securities Outright Repurchase Bills Other agreements Total i h +1,659 +2,086 + 13 +232 +1,404 +1,022 Bankers' acceptances + 39 - 61 Member bank borrowings + 10 - 60 Year-to-date: (12/30/64 - 5/5/65 (12/29/65 - 5/4/66 Weekly: 1966--Jan. 958 15 774 49 + 27 -139 + 53 + 25 - 26 247 118 ,232 45 178 115 812 123 24 216 490 123 +202 -101 -322 + + + 16 + 28 -372 +134 369 657 363 519 338 569 308 585 89 409 166 360 + 42 +249 +160 -142 -267 - 35 + 3 - 5 - 1 23 30 115 450 100 3 71 72 273 26 88 194 73 252 84 50 147 + 1 + 21 + 11 + 9 + 47 6 13 20 27 512 126 444 145 419 103 520 145 274 8 486 120 + 25 4 369 391 292 + 17 5 12 19 26 Feb. 2 9 16 23 Mar. 2 9 16 Apr. May 985 81 + - 1~~~~ _ _ _ __ _ __ _ _ _ _ _1 + + + + - +145 -111 - 34 1._ _ _ + 82 _ _ _J_ _ _ _ _ _ 53 2548 34 13 27 4 19 29 + 71 + 66 + 85 - 50 + 67 - 56 +150 - 78 + 66 - 94 - 22 - 3 - 6 + 43 +115 + - 25 3 - 20 + 82 - 43 Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted based on monthly averages of daily figures) in millions, amounts (Dollar Period Total Nonborrowed reere reserves reserves reserves ""S_______ Total Total Re uired reserves Reuired Against private deposits T Demand Total 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 19,185 19,246 19,292 19,361 19,338 19,441 19,577 19,694 19,832 19,960 19,988 20,081 15,442 15,466 15,492 15,527 15,471 15,539 15,646 15,705 15,805 15,886 15,864 15,912 1965--January February March April May June July August September October November December 21,175 21,359 21,504 21,728 21,667 21,840 21,863 21,813 21,827 21,871 21,827 22,165 20,862 20,973 21,062 21,210 21,179 21,330 21,360 21,244 21,255 21,340 21,399 21,764 20,840 20,915 21,116 21,316 21,296 21,470 21,535 21,379 21,420 21,528 21,460 21,788 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 1966--January February March April p 22,282 22,367 22,429 22,756 21,867 21,908 21,849 22,079 21,996 21,994 22,076 22,345 21,407 21,396 21,588 22,836 16,533 16,500 16,666 16,841 p - Preliminary. p - Preliminary. Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar amounts in millions, based on monthly averages of daily figures) Monthly Total member bank deposits (credit)1/ Time deposits Private demand deposits 2/ U. S. Gov't. demand deposits 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 99,725 100,670 101,850 103,090 104,215 104,407 104,569 104,749 104,987 104,609 105,066 105,783 106,189 106,868 107,410 107,259 107,591 5,011 4,695 5,308 5,337 5,327 6,061 5,256 5,592 5,368 4,849 5,500 4,932 1965--January February March April May June July August September October November December 218,640 220,663 222,445 225,068 225,840 227,642 229,056 230,664 230,913 233,505 234,264 236,411 106,107 107,843 108,778 109,996 110,898 111,955 113,306 115,594 116,900 118,718 120,152 121,220 107,353 107,178 107,795 108,243 106,975 108,372 108,497 108,456 109,717 110,489 110,327 111,409 5,180 5,642 5,872 6,829 7,967 7,315 7,253 6,614 4,296 4,298 3,785 3,782 1966--January February March April p 238,204 239,024 239,768 243,377 121,861 122,401 123,038 124,883 111,787 111,562 112,684 113,864 4,556 5,061 4,046 4,630 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 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. TABLE C-2a DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar amounts in millions, based on weekly averages of daily figures) Week ending: Total member bank deposits Time deposits (credit) / Private demand U. S. Gov't. demand deposits 2/ deposits 1965--Nov. 3 10 17 24 234,433 233,998 234,308 233,908 119,550 119,589 120,243 120,661 110,740 110,268 110,488 110,363 4,143 4,141 3,577 2,884 Dec. 1 8 15 22 29 235,641 236,499 236,388 236,293 236,460 120,652 120,894 121,056 121,090 121,292 110,073 110,747 110,887 111,939 111,936 4,916 4,858 5 12 19 26 236,036 237,302 238,155 239,830 121,367 121,740 121,987 122,246 112,591 112,114 111,507 111,207 2,078 3,448 4,661 6,377 2 9 16 23 239,899 238,866 238,966 238,542 122,193 122,026 122,490 112,050 112,003 111,715 110,694 5,656 4,837 4,689 5,358 2 9 16 23 30 238,958 239,366 239,559 239,710 240,437 122,284 122,288 122,757 123,335 123,770 111,691 111,957 112,560 113,155 113,017 4,983 5,121 Apr. 6 13 p 20 p 27 p 242,648 243,216 243,139 243,903 124,508 124,684 125,021 125,290 113,306 113,764 114,291 113,860 4,834 4,768 3,827 4,753 May 4 p 244,410 125,312 113,774 5,324 1966--Jan. Feb. Mar. 122,562 4,445 3,264 3,232 4,242 3,220 3,650 p - Preliminary. 1/ 2/ 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. 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) Private Private Monthly 1964--January February March April May June July August September October November December Money Supply 153.6 153.8 154.1 154.5 154.5 155.5 156.6 157.1 158.2 158.8 159.1 159.7 Currency 2/ Time Deposits T / D Adjusted 32.6 32.8 32.9 33.0 33.3 33.4 33.6 33.8 33.9 34.0 34.2 34.2 121.0 121.1 121.2 121.4 121.2 122.1 123.0 123.3 124.3 124.8 124.8 125.4 113.5 114.6 115.3 116.2 117.3 118.5 119.4 121.0 125.5 125.1 125.6 126.4 125.1 126.8 127.3 127.3 128.7 129.7 129.6 131.2 128.8 131.8 131.2 132.3 134.1 148.0 148.8 149.6 151.5 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 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 March April p 168.4 168.0 169.2 171.1 36.7 36.8 36.9 37.1 1/ Demand Deposits 122.1 123.5 125.1 126.6 131.0 132.1 133.5 134.6 135.9 137.6 140.1 141.6 143.6 145.5 147.0 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 commercial banks. p - Preliminary. TABLE C-3a MONEY SUPPLY AND TIME DEPOSITS AT ALL COMMERCIAL BANKS Seasonally Adjusted (Dollar amounts in billions, based on monthly averages of daily figures) Week Ending 1965--Nov. Dec. 1966--Jan. Feb. Mar. Apr. May Money Supply Currency 1/ Private Demand Deposits Time Deposits 2/ adjusted 3 10 17 24 165.9 165.8 165.6 165.8 36.1 36.0 36.1 36.2 129.9 129.7 1 8 15 22 29 165.7 166.6 166.5 167.8 168.6 36.2 36.3 36.3 36.4 36.3 129.6 130.3 130.2 131.5 132.3 146.4 146.5 146.8 146.9 147.4 5 12 19 26 169.6 169.1 168.1 167.4 36.4 36.6 36.7 36.6 133.1 132.5 131.5 130.8 147.7 147.7 148.0 148.2 2 9 16 23 167.9 36.7 36.9 36.8 36.9 131.2 131.3 131.5 130.6 148.4 148.4 148.8 149.0 2 9 16 23 30 168.5 168.7 169.2 169.8 131.6 131.8 132.3 132.9 132.2 149.2 149.2 149.5 149.8 169.1 36.9 36.9 36.9 36.9 36.9 6 13 20 27 170.1 171.2 171.1 170.9 36.9 37.2 37.0 37.1 133.2 134.0 134.1 133.7 150.7 151.2 4 171.0 37.1 133.9 152.2 168.1 168.3 167.5 129.4 129.6 144.5 144.9 145.4 146.2 150.2 151.6 152.0 Includes currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. 2/ Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U. S. Government, less cash items in process of collection and Federal Reserve float; and (2) foreign demand balances of Federal Reserve Banks. p - Preliminary. 1/ 

Federal Reserve (1966, May 9). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19660510

@misc{wtfs_bluebook_19660510,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1966},
  month = {May},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19660510},
  note = {Retrieved via When the Fed Speaks corpus}
}