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) June 3, 1966 MONEY MARKET AND RESERVE RELATIONSHIPS Money markets Recent developments. Except for bill rates, short-term interest rates have moved up in recent weeks in reflection of continued strong credit demands, including unusually heavy agency financing, and sustained pressure on bank reserve positions. Yields on commercial paper, bankers' acceptances, CD's, and Federal agency issues have risen from 1/8 to 1/4 of a percentage point. The 5-1/2 per cent ceiling rate on CD's has been offered on increasingly shorter maturities, as banks made efforts to compete for short-term investment funds and to anticipate the almost $4 billion of CD's maturing in June. Dealer loan rates also rose during May -- a period when dealer finance needs were reduced -- and Federal funds traded more frequently at 5 per cent or above, with some transactions at 5-1/4 per cent and most recently a reported quotation of 5-3/8 per cent. The 3-month Treasury bill, meanwhile, remained in a narrow 4.60-4.65 per cent range, except for the past two days when it dropped to around 4.55 per cent. Demand for bills from the public has been large, in part reflecting reinvestment of proceeds from security sales and also preparation for the June tax date. Public demand for bills has been supplemented by about $900 million of System bill purchases in the market over the past two weeks. Under these (Monthly averages and, FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE where available, weekly averages of daily figures; amounts in millions of dollars) Money Market Indicators Bond Yields U. S. Corporate Treas- Gov't. epal Bill (20 yr.) Aaa Federal 3-month Period Free ow- Flow of Reserves, Bank Credit and Money Munici- Nonborrowed (Aaa) Total Bank Re- Credit Time Money Deposits 2/ Reservesserves Proxy ings Rate -129 -156 -176 -178 -162 -139 471 490 534 527 549 552 4.09 4.08 4.01 4.07 4.11 3.95 3.93 3.89 3.80 3.83 3.84 3.92 4.20 4.21 4.21 4.21 4.25 4.30 4.46 4.51 4.58 4.61 4.63 4.67 3.09 3.09 3.15 3.16 3.16 3.25 +148 - 31 +151 + 30 -116 + 11 +224 - 61 +173 + 23 - 50 + 14 +2,623 + 772 +1,802 +1,414 +1,608 + 249 + 800 -1,100 +1,800 + 700 + 200 +1,600 +1,400 +1,100 +1,300 +1,700 +2,500 +1,500 -132 - 77 - 22 490 418 452 4.05 4.09 4.28 4.02 4.08 4.37 4.32 4.40 4.50 4.69 4.72 4.85 3.31 3.34 3.39 + 85 + 59 +365 + 44 - 44 +338 +2,592 + 759 +2,147 +1,300 + 100 +1,700 +2,000 +1,900 +1,500 1966--Jan. - 51 431 4.32 4.58 4.52 4.84 3.39 +103 +117 +1,793 +1,000 +1,000 Feb. Mar. -117 -210 474 545 4.58 4.64 4.65 4.58 4.71 4.72 4.96 5.27 3.48 3.55 + 41 - 59 + 85 + 62 + + 820 787 - 400 +1,200 + + Apr. -277 638 4.64 4.61 4.65 5.03 3.46 +238 +335 +3,587 +1,900 +2,000 May p -341 653 4.83 4.63 4.69 5.21 3.53 -105 - 76 + -1,400 +1,300 Reserves 1965--Apr. May June July Aug. Sept. Oct. Nov. Dec. Apr. 6 13 20 27 -290 -243 -312 -262 623 603 685 642 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 70 + 596 +1,000 +1,100 + 100 500 + + + + 500 500 500 400 May 4 11 18 p 25 p -331 -340 -352 -344 617 680 663 653 4.78 4.70 4.98 4.72 4.65 4.63 4.62 4.64 4.71 4.68 4.66 4.68 5.14 5.13 5.21 5.47* 3.52 3.52 3.52 3.57 + 296 + 287 384 -701 - 400 400 300 600 + + + + 200 200 400 500 1 p -364 812 4.81 4.63 4.73 5.29 Averages 4.44 4.58 3.60 + + 400 + 300 June Year 1964 107 1965 I- 90 Recent variations in growth Dec. 1 Feb. 2 Mar. 16 Apr. 13 Dec. --- 462 800 800 Feb. 2 Mar. 16 Apr. 13 June 1 - 31 -166 -246 -329 295 467 3.47 4.05 3.53 3.95 4.19 4.27 4.31 4.61 4.70 4.74 4.49 4.64 4.55 4.64 4.52 4.74 4.64 4.69 4.85 4.16 5.01 5.21 317 Ann 3.09 3.16 3.40 3.55 3.45 3.53 + 4.6 + 4.2 + 4.2 + 5.1 lI Rata rf Tnroacs + 7.6 + 9.1 + 4.3 + 4.8 +12.8 +16.1 +10.4 - 1.2 +19.8 + 1.5 + 7.7 + 6.7 +15.4 - 7.4 + 7.9 + 6.4 +14.8 +12.3 1 - June 1 -175 4.55 4.57 4.63 5.06 3.48 +10.0 + 6.8 + 4.6 -~~" week shown. Base is average for month preceding specified period or in the case of weekly periods, the first Time deposits, adjusted, at all commercial banks differs from time deposit required reserve series in Tables A-2 since latter includes only member banks. Preliminary. *Not representative. June 3, 1966. / I1 CONFIDENTIAL (FR) - 2 - June 3, 1966 conditions, the availability of bills currently in the market has been considerably reduced, as indicated by a marked decline in dealer bill positions. Moreover, the maturity of tax bills in March, large attrition in the May refunding, and the scheduled maturity of $4.5 billion June tax bills has put a large dent in the over-all availability of short-term U.S. Government securities to the public. Net borrowed reserves during the four statement weeks ending June 1 averaged $350 million, with borrowings at around $700 million, as compared with net borrowed reserves of about $290 million during the preceding four weeks, with borrowings of $635 million. Average borrowings during the past four statement weeks are somewhat enlarged by the exceptional $812 million of the past statement week, partly reflecting overborrowing prior to the long Memorial Day weekend. Prospective developments. Assuming net borrowed reserves continue to average close to recent levels, the 3-month bill rate is likely to move into a 4.60-4.70 per cent range, although market shortages of bills could temporarily keep the rate below 4.60 per cent. The System will be a smaller seller around mid-June but is projected to be on the buying side again beginning in late June. CONFIDENTIAL (FR) - 3 - June 3, 1966 Bill rates and money market rates generally are likely to come under upward pressure around and after the mid-June tax date as a result of a sizable speed-up in taxes and a continuing strong basic loan demand. Corporate income tax payments are expected to be about $1-3/4 billion larger than last year. In addition,in June corpora- tions will make more than $1 billion of accelerated payments to the Treasury of withheld individual income and social security taxes (with an additional such speed-up in July). The additional corporate income tax payments can be partly met out of the $1.2 billion of additional tax bills maturing this year as compared with last. CD maturities in June are $700 million more than last year, but only $30 million more on the tax date. In any event, such maturities will exert pressure on money markets as banks attempt at least to roll them over. In this process, CD rates at the 5-1/2 per cent ceiling may be more frequently quoted and also extended to shorter maturities. The short-term market will also have to absorb sizable additional cash borrowing by agencies, including a large issue by the Federal Home Loan Banks later this month, while intermediateterm markets will be tested by the current offering of FNMA and SBA participations. All this, together with a substantial corporate and municipal calendar, suggests the possibility of money and credit market pressures in the weeks ahead. considerable However, long- term rates have recently risen back close to their March peaks and CONFIDENTIAL (FR) - 4 - June 3, 1966 appear to have stimulated some investment demand. And short rates other than for bills have also risen, as earlier noted. It may be that these markets have to some extent discounted June demands. Given prospective demand pressures and market conditions, there may be a strong tendency for banks to seek enlarged accommodation at the discount window. If, under these circumstances, net borrowed reserves for the banking system as a whole are permitted to deepen to levels consistently beyond $400 million, banks could be slow to make portfolio adjustments or to tighten credit terms further. However, such a deeper level of net borrowed reserves might quickly engender market expectations of still higher short- and long-term interest rates, and banks may find it more difficult to roll over maturing CD's under existing Regulation Q ceilings. The ultimate consequence then -- in a period of strong basic loan demands -may be sustained borrowing demands from banks and therefore pressure on discount window administration, the discount rate, and Regulation Q. Reserve flows, bank credit, and money Recent developments. As had been anticipated, reserve aggregates and monetary variables showed sharply diminished growth rates, and in some cases actual declines, on average in May after a sharp April rise. Reserve aggregates declined in May with required reserves dropping by about 3.5 per cent, while bank credit on a daily average basis rose by only about 2.5 per cent. The disparate CONFIDENTIAL (FR) - 5 - June 3, 1966 behavior of bank credit and reserves reflected a shift in deposit composition from demand to time deposits during the month. demand deposits declined sharply; there was a not Private quite offsetting rise in Government deposits; and time deposits continued to expand fairly rapidly, though below April's pace. Since the increase in the discount rate and Regulation Q ceilings, the bank credit proxy and time and savings deposits have risen less rapidly than in 1965, while money supply has continued to rise at about the earlier rate. Prospective developments. Bank credit and money supply are expected to resume growth in the period ahead, with tax speed-ups, cyclically strong loan demands, and agency financing contributing to a relatively rapid movement. As of now, the projected growth does not appear to be quite as sharp as occurred in March-April on average when two tax dates ran close together and when monetary restraint was not as pressing. Bank credit growth in June may be about 6-7 per cent on average. The month-to-month change in the annual rate of increase from May to June is influenced by the declining trend of bank credit in May and an expected rising trend in June. Thus, measured from the end of May to the end of June bank credit might rise at about a 10 per cent rate or more. During June, private demand deposits are likely to show a relatively large increase, following their substantial recent decline. On a monthly average basis, they could rise by about 10 per cent, partly because of a projected decline in U.S. Government - 6 - CONFIDENTIAL (FR) June 3, 1966 On a month-end basis, the rise would be even larger. deposits. Time deposits are likely to increase at a slightly lower rate than in May. Much of the June credit demands -- particularly those associated with agency issues and tax speed-ups -- are likely to prove temporary. This suggests some tapering of the rate of growth of bank credit and money after midyear. The monthly average rate of increase in July may still be as large, or larger than June, but the upward trend during July may be slowing down. It is quite possible that the size of credit demands and associated deposit expansion over the weeks ahead is being underestimated. For one thing, the amount of agency issues and the degree of bank financing entailed in their flotation is uncertain. For another, it is not clear how well prepared corporations may be to make the accelerated payments of withheld individual income and social security taxes, not only in June but also in July. And finally, no allowance has been made in these projections for any direct Treasury cash financing in July. If the Treasury should raise cash through tax bills at that time, bank credit expansion in July will almost certainly be enlarged. On the other hand, if banks do not succeed in attracting time and savings deposits at near recent rates -- or are unable to do so because of legislative restrictions -- bank credit expansion will be curtailed. CONFIDENTIAL (FR) - 7 - June 3, 1966 The bank credit and deposit projections noted above imply a growth rate in required reserves averaging out to about 5 per cent over the next few months, although this might well be higher in view of the uncertainties involved. This assumes net borrowed reserves not much changed from current levels. If member banks were forced to borrow additional reserves in the period ahead, growth in required reserves might not slow down immediately, but would be likely to do so as summer progresses. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess reserves Period As Member banks I bnrrnwings revised Free to I. reserves I date Y Monthly (reserves weeks ending in): As first published As expected at conclusion of each week's open market opeations 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 May p 380 357 335 361 312 431 474 545 638 653 - 51 -117 -210 -277 -341 2 9 16 23 348 344 337 398 418 503 453 520 - 70 -159 -116 -122 - 17 -120 -122 -102 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 27 333 360 373 380 623 603 685 642 -290 -243 -312 -262 -225 -286 -281 -280 -241 -282 -270 -316 May 4 11 18 25 286 340 311 309 617 680 663 653 -331 -340 -280 -324 -315 -351 -280 -310 -341 -370 1 448 812 -364 Weekly 1966-- February June p - Preliminary -352 -344 each week - 22 -121 - 99 - 95 -342 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 A g g r e gate s Required reserves Against Nonborrowed T DmBank Total Demand Reserves ReserveDeposits Total t Reserves Mon e t ar Total Member Total Member Var iables Time Money Supply Deposits Private Deposits e it (comm. Total Demand (credit) 1/ -banks) Deposits Annually: 1963 1964 1965 + 3.5 + 4.2 + 5.1 + 3.5 + 4.6 + 4.2 + 3.8 + 4.9 + 5.0 + 2.4 + 3.2 + 3.6 + 7.5 + 7.6 + 9.1 +14.7 +12.8 +16.1 + 3.8 + 4.3 + 4.8 + 3.2 + 4.0 + 4.6 Monthly: 1965--January February March April May June July + 5.3 +10.4 + 8.1 +12.5 - 3.4 + 9.6 + 1.3 + + + + + 1.4 6.4 5.1 8.4 1.8 8.6 1.7 + 5.7 + 4.3 +11.5 +11.4 - 1.1 + 9.8 + 3.6 - 2.6 - 2.0 + 6.9 + 5.0 -14.0 +15.6 + 1.4 +10.5 +11.1 + 9.7 +14.1 + 4.1 + 9.6 + 7.5 +20.9 +20.5 +10.1 +12.7 + 9.9 +11.6 +15.0 + 2.3 - 2.3 + 4.5 + 6.0 - 8.2 +13.5 + 5.2 + 1.0 - 3.8 + 4.8 + 7.6 -12.3 +16.3 + 4.7 August - 2.7 - 6.5 - 8.7 - 0.4 + 8.4 +21.8 + 1.5 -- September October November December + 0.8 + 2.4 - 2.4 +18.6 + 0.6 + 4.8 + 3.3 +20.5 + 2.3 + 6.1 - 3.8 +18.3 +13.9 + 8.4 - 1.7 +11.7 + 1.3 +13.5 + 3.9 +11.0 +12.8 +16.9 +15.9 +12.4 +11.8 + 9.5 + 0.7 +12.3 +13.2 + 9.3 - 0.9 +14.8 + 6.3 + 4.6 + 3.3 +17.9 - 4.0 + 5.7 + 2.2 - 3.2 +13.1 - 5.7 +11.5 - 0.1 + 4.5 +15.0 - 4.3 + 4.1 - 2.4 +12.1 +13.0 -17.8 + 9.1 + 4.1 + 4.0 +17.9 + 2.3 + 8.2 + 6.5 + 6.5 +16.0 +10.3 + 7.2 - 2.9 + 8.6 +13.5 - 9.8 + 5.5 - 5.5 +10.1 +15.4 -14.3 1966--January February March April May p SI "r -1 .-- -- - -11 _ ... J_ *- . .. ---- . 1_ - -1 . _ 1/ Includes all deposits subject to reserve requirements. movements in total member bank credit. p - Preliminary. .. . . * 1 1 - 1- • . Movements in this aggregate correspond closely with Chart 1 MEMBER BANK RESERVES SEASONALLY ADJUSTED MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 22.5 22.0 21.5 21.0 20.5 0-" 20.0 REQUIRED AGAINST PRIVATE DEPOSITS TOTAL 19.5 19.0 16.5 REQUIRED AGAINST PRIVATE DEMAND DEPOSITS ,*- 16.0 ,00I0.0000 rI 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 BILLIONS OF DOLLARS BILLIONS OF DOLLARS TOTAL MEMBER (Credit BANK DEPOSITS 245 Proxy) S240 235 230 MONEY SUPPLY 170 165 225 -- 220 4 WEEK MOVING AVERAGE 160 155 TIME (All DEPOSITS ADJUSTED Commercial Banks) 150 145 140 135 NEGOTIABLE 130 CD'S (Unadjusted) 20 15 10 II I I M J 1965 S D M J 1966 S D Chart 3 DEMAND DEPOSITS SEASONALLY ADJUSTED WEEKLY AND CURRENCY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 45 MONEY SUPPLY COMPONENTS: 40 CURRENCY OUTSIDE BANKS ~----r 35 30 140 135 DEMAND DEPOSITS 130 125 4 WEEK MOVING AVERAGE 120 -t U.S. GOVT. DEMAND DEPOSITS Banks) (Member ,,I,,I,,I, ,,I,,III,, J 1965 1966 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 Gold Currency Technical Period credit (excl. float) 1/ o stock outside banks Change in = Bank use of reserves Required Excess factors net 2/ total reserves reserves 3/ es reserves - 76 -365 +676 +840 +763 +910 - 87 - 70 ACTUAL Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) +3,125 +3,219 Year-to-date: (12/30/64 - 6/2/65) +1,818 -1,096 +384 -1,684 -574 -343 -231 +920 -252 +184 -1,557 -706 -693 - 13 6 13 +512 -126 + 1 -441 -310 +107 +482 +182 +44 +137 + 17 + 45 + 27 20 27 -444 +145 - 1 +385 +207 +287 -367 +225 - 12 +212. - 19 + 13 + 7 4 11 18p 25p +369 +422 -309 + 99 + 1 - 15 - 86 -- -183 -455 +124 +168 - 65 - 95 +139 -490 +120 -142 -130 -225 +214 -196 -101 -223 - 94 + 54 - 29 - 2 +627 + 2 -165 -327. +136 - +139 (12/29/65 - 6/1/66) -426 -165 -1,950 -1,847 Weekly: 1966--Apr. May June I p -- -- 3 PROJECTED 4/ June 8 15 22 29 +345 - 75 - 85 +195 - 10 - 10 - 10 -490 +115 + 25 +140 +230 - 20 +565 -300 + 85 + 10 +495 + 25 + 85 + 10 +495 + 25 July 6 13 20 +880 - 35 -560 - 10 - 10 - 10 -670 -105 +255 -100 +155 +390 +100 + 5 + 75 +100 + 5 + 75 For For For See 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 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 $900 million. 4. Projected changes in gold stock reflect assumed outflow after $50 million per month. 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: during June, $0.2 billion, June 23, $0.5 billion; July 29, $0.6 billion. June at the rate of about 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 P.eriod required Supporting private deposits Supporting U. S. Gov't. demand Total Total Seasonal changes reservs demand deposits +763 +910 + 8 -115 +755 +1,025 + 45 + 16 reee reserves - __seasonal Time Demand Other than sea l chan Demand changes Time ACTUAL lear: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) --- +239 +542 +471 +467 -- +269 Year-to-date: (12/30/64 - 6/2/65) -343 +408 -751 -1,106 + 86 (12/29/65 - 6/1/66) -693 +145 -838 -1,148 + 90 + 12 +208 Weekly: 1966--Mar. 23 30 +267 -137 +398 + 23 -131 -160 -231 -168 - 18 + 9 + 95 - 19 + 23 + 18 Apr. 6 13 20 27 +137 + 17 +212 - 19 -124 -314 -136 +213 +261 +331 +348 -232 +184 +266 +229 -166 + + 9 9 9 9 + 57 + 49 +113 - 85 + 29 + 7 + 15 + 10 May 4 11 +214 -196 +421 + 64 -207 -260 -183 -214 + + 9 9 - 36 - 59 18 p 5 p + + -101 -223 +157 -4 -258 -219 -185 -165 - -9 - 88 - 64 + 15 + 19 - 3 - 90 + 87 + 32 + 9 + 40 + 2 June 1 p 3 4 6 PROJECTED June July 1/ 8 + 85 -165 +250 +135 - 10 +115 15 + 10 1/ + 10 -315 +325 - +265 +10 + 75 - 25 22 29 +495 + 25 +475 +325 + 20 -300 - 15 -300 - 20 + 20 + 45 - 30 + 10 + 10 6 13 20 +100 + 5 + 75 + 25 -180 - 45 + 75 +185 +120 + 85 +165 +115 + 10 - 20 + 10 - 30 + 30 - 15 + 10 + 10 + 10 Includes estimated reduction in required reserves due to redefinition of time deposits effective June 9. U Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts iin millions, based on weekly averages of daily figures) Technical factors (net) Period ACTUAL Treasury operations Float Foreign deposits and gold loans Other nonmember deposits and F. R. accounts (Sign indicates effect on reserves) Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) - 76 -365 -216 -470 -1,684 -1,557 - 6 - 47 +149 - 84 + 88 + 11 - 97 +178 + 62 - 16 -302 -451 Year-to-date: (12/30/64 - 6/2/65) (12/29/65 - 6/1/66) -1,438 -1,043 Weekly: 1966--Apr. 6 +107 +257 -104 - 38 13 20 - +482 +287 +194 -132 +232 +307 + 15 + 13 27 + 41 + 99 -367 -191 -188 + 16 - 4_ 11 - 65 - 95 - 18 + 13 - 60 -151 - 28 + 28 18 25 + 41 + 15 +139 -490 - 85 -259 +248 - 42 + 6 6 - 18 -195 June 1 -327 + 17 -313 - 20 - 11 June 8 15 22 29 +230 - 20 +565 -300 +190 -225 -- + 40 +150 +500 -300 + 10 --- - 10 + 55 + 65 -- July 6 13 20 -100 +155 +390 May 8 4 PROJECTED ---- -100 +120 +300 --- + 35 + 90 Table B-4 SOURCES OF FEDERAL RESERVE CREDIT Retrospective Changes Period (Dollar amounts in millions, based on weekly averages of daily figures) -I Total Federal U. S. Government securities Bankers' Reserve credit Total Outright Repurchase acceptances (excl. float) holdings Bills Other arptn aQreemet s Bl Member bank borrowings Year: 1963 (12/26/62 - 12/25/63) 1964 (12/25/63 - 12/23/64) +3,125 +3,219 +3,076 +3,340 +1,659 +2,086 +1,404 +1,022 + 13 +232 + 39 +4,295 +3,926 + 605 +3,055 622 +916 +204 - 45 + + 80 + 49 +289 +266 + 34 +134 - + + + - + 10 - 60 61 Year-to-date: (12/30/64 (12/29/65 - 6/2/66) 6/1/66) + 920 -221 Weekly: 1966--Jan. 26 Feb. Mar. Apr. May June 2 9 16 23 2 9 16 23 30 + 45 - 123 - 123 + + 369 657 + + 338 569 + + 89 409 363 519 - 308 585 - 166 360 115 450 - 72 + + 273 - 26 - 88 + 100 3 71 + + 73 252 84 50 147 274 8 486 -- 194 + 419 - 103 - 520 + + - + 145 + 120 + 25 + + 292 185 + 17 + + 512 126 444 145 4 11 18 25 + + 369 422 + + 391 402 309 99 - 292 - 128 + + 68 + 203 1 + 627 + 442 + 411 35 + - 3 5 - 1 + 13 + 27 + + 47 - 47 + 6 13 20 27 14. +249 +160 -142 -267 - 56 +150 - 78 + 66 - 94 4 + 19 - 29 +145 - 22 -111 - 34 - 3 6 +115 - 20 + 82 - 43 + 43 + 82 + +217 -164 -135 - 43 + 31 _ _ _ _ _ __ _ _ _ 66 85 50 67 3 + 41 + - + 26 +159 _ _ _ _ __ _ _ _ 25 63 17 10 _ _ _ Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) Period 1964--January February Total reserves reserves Nonborrowed reserves reserves Required reserves Total Total Aainst private deposi Total Demand 20,248 20,268 19,977 19,982 19,884 19,872 19,185 19,246 15,442 15,466 March April May June July August September October November December 20,459 20,482 20,404 20,682 20,665 20,753 21,012 20,949 21,033 21,082 20,176 20,226 20,167 20,431 20,420 20,416 20,638 20,600 20,626 20,886 20,056 20,057 20,023 20,269 20,285 20,332 20,570 20,536 20,639 20,742 19,292 19,361 19,338 19,441 19,577 19,694 19,832 19,960 19,988 20,081 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 May p 22,282 22,367 22,429 22,764 22,688 21,867 21,908 21,849 22,087 21,982 21,996 21,994 22,076 22,352 22,271 21,407 21,396 21,588 21,843 21,634 16,533 16,500 16,666 16,846 16,596 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 figres) Monthly Total member bank deposits Time deposits deposits 2/ (credit) 1/ 1964--January February March Private demand U. S. Gov't. demand deposits 202,981 203,759 205,068 93,563 94,495 95,011 104,407 104,569 104,749 5,011 4,695 5,308 April May June 206,176 206,613 208,669 95,852 96,677 97,542 104,987 104,609 105,066 5,337 5,327 6,061 July 209,312 98,273 105,783 5,256 August September October 211,506 212,906 214,109 99,725 100,670 101,850 106,189 106,868 107,410 5,592 5,368 4,849 November December 215,849 216,738 103,090 104,215 107,259 107,591 5,500 4,932 1965--January February March April May June July August September October November December 218,641 220,670 222,476 225,083 225,848 227,673 229,058 230,623 230,911 233,485 234,302 236,373 106,107 107,843 108,778 109,996 110,898 111,955 113,306 115,594 116,900 118,718 120,152 121,220 107,353 107,178 107,795 108,243 106,975 108,372 108,497 108,456 109,717 110,489 110,327 111,409 5,181 5,649 5,903 6,844 7,975 7,346 7,255 6,573 4,294 4,278 3,823 3,744 1966--January February March April May p 238,204 239,024 239,811 243,398 243,860 121,861 122,401 123,038 124,898 125,951 111,787 111,562 112,684 113,905 112,207 4,556 5,061 4,089 4,595 5,702 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/ 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) Total member bank deposits Week ending: (credit 1965--Nov. 120,652 120,894 121,056 121,090 121,292 110,073 110,747 110,887 111,939 111,936 4,916 15 22 29 235,641 236,499 236,388 236,293 236,460 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 2 239,899 238,866 238,966 238,542 122,193 122,026 122,562 122,490 112,050 112,003 111,715 110,694 5,656 4,837 4,689 5,358 238,958 239,366 239,559 239,710 240,437 122,284 122,288 122,757 123,335 123,770 111,691 111,957 112,560 113,155 113,017 4,983 5,121 4,242 3,220 3,650 13 20 27 242,648 243,216 243,286 243,882 124,508 124,684 125,042 125,311 113,306 113,764 114,482 113,810 4,834 4,768 3,762 4,761 4 11 18 p 25 p 244,178 244,465 244,081 243,380 125,369 125,455 125,821 126,309 113,407 112,952 112,401 111,976 5,402 6,058 p 243,697 126,447 112,243 5,007 1 16 23 2 9 16 23 30 Apr. May June deposits 4,143 4,141 3,577 2,884 9 Mar. deposits 2/ 110,740 110,268 110,488 110,363 8 Feb. U. S. Gov't. demand 119,550 119,589 120,243 120,661 17 24 1966--Jan. 1/ Private demand 234,433 233,998 234,308 233,908 3 10 Dec. Time deposits 6 4,858 4,445 3,264 3,232 5,859' 5,095 p - Preliminary. 1/ Includes all deposits subject to reserve requirements--i.e., the total of time, private demand, and U.S. Government demand deposits. Movements in this aggregate correspond closely with movements in total member bank credit. 2/ Private demand deposits include demand deposits on 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) Monthly Money Supply Time Deposits Adjusted 32.6 32.8 32.9 33.0 33.3 33.4 33.6 33.8 33.9 34.0 34.2 34.2 121.0 121.1 121.2 121.4 121.2 122.1 123.0 123.3 124.3 124.8 124.8 125.4 113.5 114.6 115.3 116.2 117.3 118.5 119.4 121.0 122.1 123.5 125.1 126.6 160.0 159.7 160.3 161.1 160.0 161.8 162.5 162.7 164.3 165.6 165.7 167.4 34.5 34.7 34.7 34.7 34.9 35.0 35.2 35.4 128.8 35.6 35.9 36.1 36.3 125.5 125.1 125.6 126.4 125.1 126.8 127.3 127.3 128.7 129.7 129.6 131.2 131.0 132.1 133.5 134.6 135.9 137.6 140.1 141.6 143.6 145.5 147.0 168.4 36.7 36.8 36.9 37.1 37.3 131.8 131.2 132.3 134.0 132.4 148.0 148.8 149.6 151.6 152.9 1964--January February March April May June July August September October November December 153.6 153.8 154.1 154.5 154.5 155.5 156.6 157.1 1965--January February March April May June July August September October November December 1966--January February March April May p 1/ Currency 2/ Private Demand 158.2 158.8 159.1 159.7 168.0 169.2 171.1 169.7 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 1/ Private Demand Deposits 2/ Time Deposits adjusted 165.9 165.8 165.6 165.8 36.1 36.0 36.1 36.2 129.9 129.7 129.4 129.6 144.5 144.9 145.4 146.2 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 23 167.9 168.3 167.5 36.7 36.9 36.8 36.9 131.2 131.3 131.5 130.6 148.4 148.4 148.8 149.0 Mar. 2 9 16 23 30 168.5 168.7 169.2 169.8 169.1 36.9 36.9 36.9 36.9 36.9 131.6 131.8 132.3 132.9 132.2 149.2 149.2 149.5 149.8 150.2 Apr. 6 13 20 27 170.1 171.2 171.1 170.9 36.9 37.2 37.0 37.1 133.2 134.0 134.1 133.7 150.7 151.2 151.6 152.0 May 4 11 18 25 170.4 170.0 169.7 169.1 37.2 37.2 37.3 37.3 133.2 132.8 132.4 131.8 152.3 152.5 152.9 153.4 Dec. 1966--Jan. Feb. 2/ Currency 3 10 17 24 1965--Nov. 1/ Money Supply 168.1 June 1 169.5 37.3 132.2 153.7 and the vaults of Federal Reserve, Includes currency outside the Treasury, the all commercial banks. Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U. S. Government, less cash items in process of collection and Federal Reserve float; and (2) foreign demand balances of Federal Reserve Banks. p - Preliminary. 

Federal Reserve (1966, June 6). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19660607

@misc{wtfs_bluebook_19660607,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1966},
  month = {Jun},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19660607},
  note = {Retrieved via When the Fed Speaks corpus}
}