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) September 9, 1966 MONEY MARKET AND RESERVE RELATIONSHIPS Money markets Recent developments. rise in recent weeks. Treasury bill rates have continued to The 3-month bill has risen nearly 20 basis points since late August to 5.21 per cent, which represents an investment yield of almost 5.35 per cent. Some of the longer maturities currently are trading at an investment yield equivalent of around 6 per cent. Other short-term rates have remained stable or have advanced only slightly further. The bill market has reflected continued bank selling of the March and April tax bills which were auctioned by the Treasury on August 18. Upward pressure on bill rates also has stemmed from dealers who have resisted adding to their inventories in light of current high financing costs and the difficulty encountered in securing financing even at these high rates. In addition, bill rates have recently been influenced by expectations that additional Governmental cash financing will be more concentrated in the bill area if there is a delay or curtailment in previously expected financing through sales of participation certificates and Agency issues. Money market tightness also reflected the development of sizable reserve needs at major New York City banks at a time when other major reporting banks were running large basic reserve deficiencies. As New York banks needed funds, they became aggressive buyers in the Federal FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE hl-,1. (MonLY --. averages and, where avai S1-ib a e% wee Money Market Indicators Federal 3-month BorrowFunds TreasFree BorrowFree ury ings Rate Reserves Reserves ings Bill Period Period ll y averages of daily figus; Bond Yields Corporate Municipal U.S. New (Aaa) Gov't. Issues (20 y) (Aaa) amounts in mll.ions of dollaJrs Flow of Reserves, Bank Credit and Money Time Total Bank Money NonCredit Supply u y Reborrowed Deposits 1/ Proxy Reserves serves 1965--Aug. Sept. Oct. Nov. Dec. -162 -139 -132 - 77 - 22 549 552 490 418 452 4.11 3.95 4.05 4.09 4.28 3.84 3.92 4.02 4.08 4.37 4.25 4.30 4.32 4.40 4.50 4.63 4.67 4.69 4.72 4.85 3.16 3.25 3.31 3.34 3.39 + 27 - 73 +132 + 84 +191 - 14 - 26 + 68 + 3 +270 +1,608 + 249 +2,592 + 759 +2,147 + 200 +1,600 +1,300 + 100 +1,700 +2,500 +1,500 +2,000 +1,900 +1,500 1966--Jan. Feb. Mar. Apr. May June July Aug. p - 51 -117 -210 -277 -339 -352 -361 -382 431 474 545 638 653 722 739 740 4.32 4.58 4.64 4.64 4.83 5.13 5.18 5.45 4.58 4.65 4.58 4.61 4.63 4.50 4.78 4.95 4.52 4.71 4.72 4.65 4.69 4.73 4.84 4.95 4.81 4.96 5.09 5.03 5.16 5.35 5.48 5.64 3.39 3.48 3.55 3.46 3.53 3.60 3.77 3.93 +165 + 58 - 97 +205 - 5 - 33* + 82* -166 +115 + 81 + 45 +256 + 1 - 14* +171* -264 +1,793 + 820 + 787 +3,587 + 465 + 970* +2,091* - 502 +1,000 - 400 +1,200 +1,900 -1,600 +1,600 -1,600 - 400 +1,000 + 800 + 800 +2,000 +1,300 +1,300* +1,800* +1,800 July 27 -411 680 5.45 4.78 4.83 5.47 3.78 + 142 -1,100 + 5.56 3.79 - 401 + 700 + 300 3.87 - 174 -1,200 + 400 5.65 5.92 5.98 3.94 4.04 4.02 54 -1,349 +1,666 +1,200 + 200 + 100 + 800 + 100 4.05 + 600 increase + 4.3 + 4.8 - 100 2/ +12.8 +16.1 3.46 3.50 3.80 + 5.8 + 8.1 + 5.0* + 7.3 - 0.8 + 2.7 + 7.3 +13.0 +10.2* + 6.2* + 3.4 +10.1* 3 -429 778 5.58 4.77 4.86 10 -331 782 5.70 4.82 4.86 17 p 24 p 31 p -460 -362 -329 730 719 691 5.15 5.65 5.28 5.00 5.03 5.05 4.90 4.99 5.08 Sept. 7 p -419 749 5.91 5.12 4.96 295 467 3.47 4.05 3.53 3.95 5.91 Averages 4.19 4.44 4.27 4.58 464 644 728 4.43 4.72 5.32 4.55 4.61 4.77 4.61 4.67 4.85 Aug. Year 1964 107 - 90 1965 Recent variations in growth Dec. 1-Mar. 16 - 85 Mar. 16-June 1 -299 -368 June 1-Sept. 7 Dec. -- 4.99 5.09 5.60 3.09 3.16 + 4.5 + 4.3 3.59 5.23 4.64 4.71 619 4.82 1-Sept. 7 -247 Time deposits adjusted at all commercial banks. Base is average for month preceding specified period or in the case of weekly periods, * Changes have been adjusted for redefiniton of time deposits effective June 9. p - Preliminary. + 483 Annual rates of + 4.2 + 7.6 + 5.2 + 9.1 the first week shown. September 9, 1966. 400 CONFIDENTIAL (FR) - 2 - September 9, 1966 funds market partly in an attempt to postpone resort to the discount window. The result was that Federal funds rates were pushed to new highs this week when a considerable amount of trading occurred at rates in the 6-6¼ per cent range. Net borrowed reserves averaged $370 million in the 3 weeks ending September 7 as compared with an average of $407 million in the previous 3 weeks. In both periods these averages before revisions were about $425 million. The downward revisions reflected mainly higher vault cash and weaker required reserves than had been projected for country banks. Member bank borrowings averaged $720 million in the latest 3-week period, down from an average of $763 million in the previous 3 weeks. Prospective developments. Banks and other money market participants are approaching the period ahead very cautiously. While business loans have shown little strength over the past few weeks, a resurgence is expected in the coming weeks and months. Most immediately, mid-September tax payments are likely to generate renewed business loan expansion. The relatively limited ability of banks and the market generally to accommodate such needs has already been reflected in the fairly sizable adjustments in sensitive money market rates that have recently taken place. It is possible that banks will lose about one-third of their maturing CD's in coming weeks. (Some $5¼ billion of CD's matures in September, and $3.5 billion of October maturities are outstanding at present.) These run-offs will in part be a substitute for direct loan - 3 - CONFIDENTIAL (FR) September 9, 1966 demand on banks, as businesses use the proceeds to pay taxes and for other Still, under the circumstances, demand for borrowing from the purposes. Federal Reserve is likely to increase, and at the same time individual banks probably will continue to sell assets (and borrow as much as possible from non-Federal Reserve sources) as they attempt to maintain their reserve position in the face of greater loan demand, outflows of time deposit funds, or both. In view of the new program for administration of the discount window and current seasonal and other strains in the money market, considerably different levels of net borrowed reserves--say, between $350 and $600 million--could be consistent with continuation of the current policy of monetary restraint. Where in the range net borrowed reserves are likely to be will depend on the extent to which banks choose to undertake reserve adjustments with or without recourse to the discount window. In any event, bill rates may rise somewhat further in the period immediately ahead. Once pressures associated with the mid-September tax date abate in late September-early October, yields could tend to stabilize as funds that would otherwise go into the CD market may be invested in bills. On the other hand, the Treasury is likely to be financing in the bill market remain strong. during October, and private loan demands are likely to The best guess as of this writing is that the 3-month bill rate will be in a 5.15-5.40 per cent range over the next three weeks, although fluctuations outside the range are not unlikely. CONFIDENTIAL (FR) - 4 - September 9, 1966 Federal funds may be expected to trade more frequently above 6 per cent, and therefore dealer loan rates should remain high and probably advance somewhat further. Other short-term rates, notably those on commercial paper, finance company paper, and bankers' acceptances, may also move higher. It is not clear that the current lower level of bond yields can continue in the face of upward rate pressures in the money market. Expectational factors are probably the key to this at the present time. The President's proposed fiscal program and other recent official activities (such as talk of curtailing Agency financing) have reduced expectations of continuously rising long-term interest rates, with the result that longterm investments have become more attractive to investors relative to short-term outlets. Whether this continues will depend importantly on implementation of the tax and expenditure program, and more careful market consideration of their effectiveness, especially in light of any step-up in Federal spending related to Vietnam as it becomes evident to the market. It will depend, in short, on a continuing conviction that monetary policy will not need to become tighter than it is. Reserve flows, bank credit, and money Recent developments. Bank credit, deposits, and reserves during recent weeks have for the most part turned out to be weaker than earlier projected. The credit proxy declined from week to week between early July and late August; on a daily average basis for the month of August, - 5 - CONFIDENTIAL (FR) September 9, 1966 it dropped at an annual rate of 2.5 per cent. This brought the annual rate of expansion in the credit proxy down to 6.2 per cent for the first eight months of the year, compared with 9.1 per cent for the year 1965. Private demand deposits declined 4.5 per cent in August on a daily average basis, even though U.S. Government deposits were reduced sharply at the same time. On the other hand, rapid expansion in time deposits continued at only slightly below the 14 per cent July rate. However, the rate of expansion in time deposits fell off sharply after mid-August, as major banks began to experience run-offs of CD's. Prospective developments. As noted earlier, there will be very large CD maturities during the month, with more than a fifth of these maturing on the midmonth tax date. Estimates of the size of CD run-offs for the month as a whole still are conjectural, but it does seem clear from the evidence of recent weeks that a substantial run-off--perhaps $1.5 to $2.0 billion over the month--is in prospect. With time deposit growth as a whole already slackening in late August and with a small decline estimated in the first week of September, this range of net CD run-offs would result in virtually no growth or perhaps a small net decline in daily average time deposits for the month. The end of September will bring another interest-crediting period for financial institutions, with the possibility of a temporary renewal of moderate growth in time deposits as banks pick up consumertype time deposits. But the potential may be more limited than earlier - 6 - CONFIDENTIAL (FR) September 9, 1966 since competing savings institutions have higher rates now, and market rates of interest are also more attractive. Thus no significant resurgence in total time deposit growth appears in prospect. At the same time, projections suggest that banks will continue to lose U.S. Government balances in the September-October period, even though the acceleration program for payments of withholdings will net an estimated $2.7 billion of receipts in October that would normally have been paid in November. The projected net decline of these deposits assumes that the Treasury will issue $2.5 billion more of tax bills in the nextto-last week of October. These large declines in Government deposits, which may accumulate to an unprecedented total of $3.6 billion more than seasonal from August through October,add to the liquidity problems of major banks. On the other hand, expenditure of these Government balances,along with CD runoffs, should contribute to renewed expansion of private demand deposits in the next two months. Growth could be as high as a 10 to 15 per cent annual rate if at the same time money demands are bolstered by strong transactions needs. Even with a large private demand deposit growth, daily average expansion of the bank credit proxy in September and October is likely to continue substantially below the 6 per cent expansion rate posted for the first 8 months of the year and initially projected for September. In fact, if September CD run-offs are in the range of $1.5 to $2.0 billion, it now appears that changes in the credit proxy might fall within a CONFIDENTIAL (FR) range of +1 to -1 per cent. - 7 - September 9, 1966 Any bank credit growth is likely to be associated with a relatively larger expansion in required reserves because of expected shifts between time and demand deposits. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess reserves Period As Monthly (reserves weeks ending in): 1965--June July August September October November December rev Member banks borrowings i s e d to F r e e reserves date As first published each week As expected at conclusion of each week's open market opeations 358 349 387 413 358 341 430 534 527 549 552 490 418 452 1966--January February March April May June July August p Weekly 6 1966--April 13 20 27 380 357 335 361 315 370 379 358 431 474 545 638 653 722 739 740 - 51 333 360 373 380 623 603 685 642 -290 -243 -312 -262 -225 -286 -281 -280 -241 -282 -270 -316 May 4 11 18 25 286 340 319 314 617 780 663 653 -331 -340 -344 -339 -280 -324 -315 -351 -280 -310 -341 -370 June 1 8 15 22 29 436 207 465 282 459 812 547 788 691 771 -376 -340 -323 -409 -312 -364 -375 -341 -417 -350 -342 -360 -336 -394 -368 July 6 13 20 27 350 724 171 269 827 818 631 680 -477 -460 -411 -456 -155 -479 -441 -473 -133 -528 -445 3 10 17 24 p 31 p 7 p 349 452 270 357 362 330 778 782 730 719 691 749 -429 -330 -460 -362 -329 -419 -427 -383 -466 -442 -422 -419 -427 -417 -487 -482 -447 -440 Aug. Sept. p - Preliminary -176 -178 -162 -139 -132 - 77 - 22 -117 -210 -277 -339 -352 -361 -382 - 94 TABLE A-2 AGGREGATE RESERVES AND RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) Ag Reserve re ates Required reserves Against Nonborrowed Total R Total Demand Reserves Reserves Deposits (Series Revised) + 3.5 + 3.2 + 3.8 + 1.7 + 4.2 + 4.5 + 4.9 + 3.1 + 5.3 + 4.3 + 5.2 + 2.4 Annually: 1963 1964 1965 Monetary Total Member an Deposits ( (credit) I/ ) (cr Variable s Time Money Supply Private Deposits (comm. ot De _Deposits banks) + 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 August September October November December + 6.1 +10.5 + 6.4 + 9.2 - 0.8 + 9.5 + 4.8 - 0.8 - 1.4 + 9.9 + 0.2 +14.5 + 1.9 + 7.7 + 2.1 + 7.6 + 2.1 + 4.8 + 4.1 + 1.5 - 4.0 + 7.3 + 4.6 +10.5 + 1.8 + 8.1 + 8.4 + 6.4 + 6.7 + 7.2 + 4.8 - 1.8 - 2.4 + 9.7 - 2.4 +14.3 + 0.2 + 3.0 + 9.0 +14.8 - 1.3 + 7.8 + 0.7 - 7.1 -11.1 + 8.1 - 6.9 +11.2 +10.5 +11.1 + 9.7 +14.1 + 4.1 + 9.6 + 7.5 + 8.4 + 1.3 +13.5 + 3.9 +11.0 +20.9 +20.5 +10.1 +12.7 + 9.9 +11.6 +15.0 +21.8 +12.8 +16.9 +15.9 +12.4 + 2.3 - 2.3 + 4.5 + 6.0 - 8.2 +13.5 + 5.2 + 1.5 +11.8 + 9.5 + 0.7 +12.3 + 1.0 - 3.8 + 4.8 + 7.6 -12.3 +16.3 + 4.7 -+13.2 + 9.3 - 0.9 +14.8 1966--January February March April May June 2/ July 2/ August 2/ + 6.1 + 4.3 + 2.4 +13.5 + 0.1 - 0.7 + 8.9 -14.1 + 9.0 + 3.1 - 5.2 +11.1 - 0.3 - 1.8 + 4.4 - 9.3 + 6.4 + 3.1 + 2.3 +12.2 + 1.9 - 0.6 + 5.7 - 7.4 +12.0 + 2.9 + 1.5 +17.7 - 6.0 + 2.1 + 4.9 -21.4 + 9.1 + 4.1 + 4.0 +17.9 + 2.3 + 4.8 + 8.2 + 6.5 + 6.5 +16.0 +10.3 +10.2 + 7.2 - 2.9 + 8.6 +13.5 -11.2 +11.3 + 5.5 - 5.5 +10.1 +15.4 -16.1 +14.5 +10.3 - 2.4 +14.0 +13.8 -11.2 - 2.8 -17.0 - 4.5 1/ 2/ p Includes all deposits subject to reserve requirements Movements in aggregate this correspond with closely movements in total member bank credit. Changes in reserves, total deposits, and time deposits have been adjusted for redefinition of time deposits effective June 9. Changes in reserves have been adjusted for increases in reserve requirements in July. p - Preliminary. Chart 1a MEMBER BANK RESERVES SEASONALLY ADJUSTED MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 23.5 23.0 22.5 ^-/-/V 22.0 --"o REQUIRED AGAINST --TOTAL PRIVATE DEPOSITS TOTAL REQUIRED RESERVES ' 21.5 1- 21.0 20.5 20.0 17.0 16.5 REQUIRED AGAINST PRIVATE DEMAND DEPOSITS 16.0 15.5 M J 1965 S D M J 1966 S D Chart 1b MEMBER BANK RESERVES MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS, SEASONALLY ADJUSTED 23.5 23.0 REQUIRED RESERVES 22.5 RESERVES NET BORROWED 22.0 -- RESERVES NONBORROWED a* - 21.5 21.0 20.5 BILLIONS OF DOLLARS 1.0 MEMBER BANK BORROWINGS 0 .5 m--=i 0 a EXCESS RESERVES M J 1965 S D M J 1966 S D Chart 2 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS BILLIONS OF DOLLARS BILLIONS Of DOLLARS TOTAL MEMBER BANK (Credit Proxy) DEPOSITS 245 240 235 230 170 225 165 220 160 155 150 145 140 135 130 20 15 10 M J 1965 S D M J S D 1966 *CHANGE IN SERIES 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 Banks) (Member 10 S 0 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) I/ Period Gold s = Change Bank use of reserves Currency outside banks Technical factors net 2/ in total reserves Required reserves 3/ -365 +845 +840 +966 + 910 +1,136 - -810 -1,174 -577 -396 - 388 265 -189 -131 - 86 + 98 40 212 90 246 183 + 80 +103 -182 + 87 + 5 Excess es ACTUAL 1964 (12/25/63 +3,219 +3,926 165 -1,578 -1,847 -2,228 +2,539 +2,245 -1,530 528 - 776 937 + - + 221 -408 83 425 122 136 256 -460 +173 +242 - 73 -772 + 40 -109 -272 -159 +188 438 569 +182 + 49 Sept.14 21 28 95 850 755 5 210 45 +525 +1,135 -900 +415 5 12 19 26 630 245 790 180 265 405 220 120 -300 + 25 +560 + 50 + 55 -145 - 12/23/64) 1965 (12/23/64 1965 (12/23/64 - 12/22/65) 70 -170 Year-to-date: (12/30/64 (12/29/65 - 9/8/65) 9/7/66) Weekly: 1966--July 27 Aug. 655 141 634 201 758 3 10 17 24 p 31 p Sept. 7 p + PROJECTED Oct. For For For See 228 28 174 1 1 20 54 J~. 81 4/ retrospective details, see Table B-4. factors included, see Table B-3. required reserves by type of deposits, see T able B-2. reverse side for explanation of projections. +485 -110 - 20 - 20 p - Preliminary. 415 485 110 55 145 20 20 L - 32 -- 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) Supporting U. S. Gov't. demand Total required reserves Period r ACTUAL Year: 1964 (12/25/63 - 12/23/64) 1965 (12/23/64 - 12/22/65) Supporting private deposits Total 1 -115 -170 +1,025 +1,306 + 16 - 388 265 -150 -188 - 238 77 -912 -996 6 13 20 27 346 295 236 86 +121 -244 -291 225 51 527 125 3 10 17 24 31 Sent. 7 40 212 -161 + 6 -161 + 82 +123 111 218 71 183 60 - 163 Year-to-date: (12/30/64 - 9/8/65) (12/29/65 - 9/7/66) Weekly: 1966--July Aug. 910 90 246 183 81 + 39 - 63 R8 Time Demand I +1,136 + Time Demand deposits 1l Other than seasonal changes Seasonal changes 1 i +542 +529 +467 +664 +143 +107 +476 +758 + 86 +115 +167 +113 -236 + 37 -155 + 14 + 37 +368 + 99 +113 - + 55 + 54 69 - 18 95 -135 -164 + 46 - 9 9 9 -i--5 t -I- 0 + 53 -131 +185 - 22 + 11 + + + + + -11) 4 14 27 21 12 2 r0 PROJECTED Sept. Oct. 1/ 14 1/ 21 1/ 28 + + - 415 485 110 -240 + 70 +365 + + - 655 415 475 +350 +215 -500 -- 35 + 20 - 50 +165 -- +355 + 70 + 5 5 + 55 - 90 + 145 +115 + 10 + 15 + 5 12 19 26 - 145 20 20 -300 -245 - 65 + + + 155 225 45 +150 +185 + 30 -- 10 - 5 + 45 + 15 + + + 5 5 5 Increase in percentage reserve requirements against time deposits absorb an estimated $350 million of reserves at city banks effective July 14 and again September 8 and $80 million at country banks effective July 21 and again September 15. p - Preliminary. 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 ACTUAL Year: 1964 (12/25/63 - 1/23/64) 1965 (12/23/64 - 1/22/65) Aug. Sept. Float Other nonmember deposits and F. R. accounts -365 +845 -470 +232 - 84 - 13 + 11 - 7 +178 +651 -810 -1,174 - 30 - 82 -1,322 -959 - 53 - 12 +605 -121 13 20 27 +205 +736 -408 -302 -136 - 71 +424 +795 -450 + 56 - 13 + 18 + 27 + 90 + 95 3 10 17 24 31 7 -460 +173 +242 - 73 -772 +182 - 29 +203 + 29 + 13 - 18 +124 -336 -115 +200 + 17 -776 - 21 -177 +184 + 5 + 5 - 11 + 11 + 82 - 99 + 8 -108 + 23 + 68 +210 +370 -500 +230 +766 -400 + 5 --- + 80 + 65 ----- -300 - 40 +450 + 50 - -+ 15 +110 -- Year-to-date: (12/30/64 - 9/8/65) (12/29/65 - 9/7/66) Weekly: 1966--July Foreign deposits and gold loans (Sign indicates effect on reserves) Treasury operations PROJECTED Sept. 14 21 28 +525 +1,135 -900 5 12 19 26 -300 + 25 +560 + 50 Oct. --- Table B-4 SOURCES OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Period Total Federal Reserve credit (excl. float) Total holdings B' U. S. Government securities Repurchase Outright agreements Other Bills Year: 1964 (12/25/63 - 12/23/64) 1965 (12/23/64 - 12/22/65) +3,219 +3,926 +3,340 +3,898 +2,086 +3,226 Year-to-date: (12/30/64 - 9/8/65) (12/29/65 - 9/7/66) +2,249 +2,245 +2,216 +2,125 +1,779 +1,907 1 8 15 22 29 627 6 185 224 393 442 225 23 131 267 + + - 72 + 173 6 13 20 27 851 5 ,264 228 790 71 972 189 + + 706 61 - 966 + 186 + + 380 +1,022 + 916 M Bankers acceptances +232 -244 r Member bank borrowings - 61 + 67 - - 83 + 33 +203 31 38 13 1 94 + 26 + 34 - 33 +159 -265 +241 4 - 97 + 46 + 80 80 11 3 '3 + + 56 - 9 -187 + 49 25 439 -288 -221 60 39 Weekly: 1966--June July Aug. Sept. 3 10 17 24 31 + + 655 '141 - 634 201 + 758 572 138 580 190 784 7 + 438 380 411 166 73 5 - 57 -105 - 10 414 +158 - 15 - 56 422 - 1 2 + + 4 784 +194 -158 -194 + 2 - I + + 98 + 4 - 52 - 11 - 28 + 58 . Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) (Revised series) 2/ Period Total reserves r Nonborrowed r reserves reserves Required Reuired reserves Total Against private deposits TtlDm Total Demand 1964--January February March April May June July August September October November December 20,561 20,588 20,665 20,794 20,689 20,966 21,017 21,127 21,349 21,319 21,442 21,416 20,271 20,302 20,463 20,517 20,495 20,716 20,731 20,832 20,996 20,983 21,055 21,158 20,139 20,192 20,343 20,370 20,350 20,554 20,596 20,748 20,907 20,919 21,068 21,097 19,385 19,448 19,498 19,570 19,550 19,655 19,792 19,915 20,055 20,187 20,218 20,316 15,296 15,319 15,346 15,381 15,325 15,392 15,497 15,557 15,656 15,736 15,713 15,762 1965--January February March April May June July August September October November December 21,525 21,714 21,830 21,997 21,982 22,156 22,245 22,231 22,205 22,273 22,276 22,546 21,192 21,238 21,366 21,501 21,539 21,626 21,699 21,726 21,653 21,785 21,869 22,060 21,129 21,271 21,420 21,535 21,656 21,786 21,873 21,840 21,797 21,974 21,930 22,192 20,364 20,415 20,546 20,665 20,518 20,768 20,846 20,940 21,183 21,375 21,413 21,618 15,727 15,702 15,792 15,858 15,672 15,876 15,895 15,889 16,074 16,187 16,162 16,321 1966--January February March April May June 1/ July 1/ 22,661 22,742 22,787 23,043 23,044 23,030 23,201 22,225 22,383 22,186 22,391 22,386 22,353 22,435 22,311 22,368 22,411 22,638 22,673 22,684 22,792 21,702 21,693 21,885 22,145 21,937 22,165 22,071 16,377 16,344 16,508 16,687 16,433 16,626 16,463 22,929 22,261 22,652 22,063 16,385 August p 1/ p - Preliminary. 1/ Reserves have been adjusted for redefinition of time deposits effective June 9. 2/ Revised to reflect current levels of reserve requirements and changes in seasonal factors. 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 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 5,180 110,898 111,955 113,306 115,594 116,900 118,718 120,152 121,220 107,353 107,178 107,795 108,243 106,975 108,372 108,497 108,456 109,717 110,489 110,327 111,409 1966--January February March April May June 3/ July 3/ Augustp 3/ 238,204 239,024 239,811 243,398 243,863 244,833 246,924 246,422 121,861 122,401 123,038 124,898 125,S50 126,750 128,333 129,942 111,787 111,562 112,684 113,905 112,170 113,488 112,373 111,842 4,556 5,061 1/ 2/ 3/ 109,996 4,849 5,500 4,932 5,642 5,872 6,829 7,967 7,315 7,253 6,614 4,296 4,298 3,785 3,782 4,089 4,595 5,740 4,595 6,218 4,638 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. Deposits have been adjusted for redefinition of time deposits effective June 9, 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 fig ures) Total member Week ending: Private deposits demand 1/ (__credit ___ deposits 2/ U. S. Gov't. demand deposits 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 5,358 239,899 1966--Feb. Time bank deposits Mar. 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 4,242 3,220 3,650 Apr. 6 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 May 4 11 25 244,178 244,465 244,091 243,395 125,369 125,455 125,815 126,330 113,407 112,952 112,372 111,954 5,402 6,058 5,904 5,111 1 8 15* 22* 29* 243,664 244,274 243,494 244,849 245,878 126,433 126,778 112,115 113,137 113,152 115,035 112,924 5,116 4,359 3,743 2,998 6,025 6* 13* 20* 27* 247,539 247,149 246,884 246,986 127,306 128,227 128,378 6,646 6,657 5,986 128,598 113,587 112.265 112,520 111,504 3* 10*17* 24 p* 31 p* 246,585 246,411 246,357 245,008 246,674 129,080 129,241 129,808 130,201 130,501 111,734 110.915 112,206 112,108 112,071 5,771 6,255 4,343 2,699 4,102 18 June July Aug. 126,599 126,816 126,929 6,884 112,896 4,231 130,029 247,156 Sept. 7(prop 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. * - Deposits have been adjusted for redefinition of time deposits effective June 9. 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) / 2/ 3/ Includes currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U.S. Government, less cash items in process of collection and Federal Reserve float; and (2) foreign demand balances at Federal Reserve Banks. Deposits have been adjusted for redefinition of time deposits effective June 9. 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 Money Supply Currency 1/ Private Demand Deposits 16 23 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 27 160.1 171.2 171.3 170.8 36.9 37.2 37.0 37.1 133.2 134.0 134.3 133.7 150.7 151.2 151.7 152.1 May 4 11 170.4 170.0 169.7 169.0 37.2 37.2 37.3 37.3 133.2 132.8 132.3 131.7 152.3 152.5 152.9 153.4 168.9 170.5 170.6 172.8 160.6 37.3 37.3 37.4 131.6 133.2 133.2 135.4 133.5 153.6 153.8 153.9* 154.0* 154.5* 6 13 20 27 171.2 169.6 169.7 37.4 155.0* 168.6 37.7 37.7 133.8 132.1 132.1 130.9 3 169.3 168.2 169.3 169.5 169.6 170.2 37.7 37.6 37.7 37.7 37.8 37.8 131.6 130.6 131.7 131.8 131.8 156.9* 157.3* 132.4 158.1* 2 9 18 25 June 1 8 15 22 29 July Aug. 10 17 24 p 31 p Sept. 2/ adjusted 167.9 168.1 168.3 167.5 1966--Feb. 1/ 2/ Time Deposits adjusted 7 (proj) 37.4 37.4 37.6 155.8* 156.2* 156.6* 158.1* 158.1* 158.2* Includes currency outside the Treasury, the ederal Reserve, and the vaults of all commercial banks. Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U.S. Government, less cash items in process of collection and Federal Reserve float; and (2) foreign demand balances of Federal Reserve Banks. * - Deposits have been adjusted for redefinition of time deposits effective June 9. p - Preliminary. 

Federal Reserve (1966, September 12). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19660913

@misc{wtfs_bluebook_19660913,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1966},
  month = {Sep},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19660913},
  note = {Retrieved via When the Fed Speaks corpus}
}