Bluebook

Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act. 1 In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing). 2 A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff. Content last modified 6/05/2009. February 3, 1967. CONFIDENTIAL (FR) MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments Money market conditions have eased further, and there has been a substantial increase in most of the monetary aggregates since the last meeting of the Committee. The easing in money market conditions was accompanied by a decline of about 30 basis points in the 3-month bill rate, to around 4.50 per cent, and by roughly commensurate reductions in CD rates offered by major banks. The most often quoted rate on CD's maturing within 90 days is now 5 per cent. Rates on commercial paper, finance company paper, and bankers' acceptances declined sharply, after having lagged behind the decline in bill rates in late 1966. Federal funds were generally traded in a 4-3/4 to 5 per cent range in the last two statement weeks ending in January, after being around 5-1/4 per cent earlier in the month. The decline in the Federal funds rate was in part the result of a marked improvement in the basic reserve deficiency of major New York banks in the second half of January. This improvement reflected not only a seasonal reflow of reserve funds to New York banks but also their notable success in obtaining CD money during the period. And although dealer finance needs remained well above normal in the last (Monthly averages and, where available, weekly averages of daily figures) Money Market Indicators Bond Yields I Flow of Reserves. Bank Credit and Money Free Borrow- Federal 3-month Corporate Munici- NonTotal Bank Time ReCredit Money pal borrowed New U.S. Funds Treasings eserves (In millions Rate ury Gov't. Issues (Aaa) Reserves serves Proxy eps Period of dollars) 1966--Jan. Feb. Mar. Apr. May June Bill (20 y.) (Aaa) 4.32 4.58 4.64 4.64 4.83 5.13 5.18 5.45 5.30 5.46 5.75 5.39 4.58 4.65 4.58 4.61 4.63 4.50 4.78 4.95 5.36 5.33 5.31 4.96 4.52 4.71 4.72 4.65 4.69 4.73 4.84 4.95 4.94 4.83 4.88 4.76 4.81 4.96 5.09 5.03 5.16 5.35 5.48 5.64 5.82 5.70 5.71 5.73 3.40 3.48 3.55 3.46 3.53 3.60 3.77 3.91 3.93 3.82 3.78 3.79 +173 Aug. Sept. Oct. Nov. Dec. p - 51 -117 -210 -277 -339 -352 -359 -374 -390 -425 -235 -192 1967--Jan. p - 61 4.87 4.72 4.51 +477 -180 + 73 - 98 - 38 5.25 5.25 4.75 5.05 4.82 4.79 4.75 4.70 4.59 4.53 4.46 4.53 5.43 5.51 5.45 5.12 5.03 3.50 4 +154 4.20 4.55 4.48 July 1967--Jan. p lip 18p 25p Feb. Ip I + 58 - 88 +206 + 1 - 16* +135* -302 + 5 -134 +108 + 23 (In billions of dolars) (Seasonally Adjusted) +129 + 1.6 + 0.8 0.9 + 78 + 0.7 + 01.2 0.7 + 57 + 1.1 + 0.9 1.0 +256 + 3.1 + 1.6 1.9 + 6 + 1.0 - 0.7 1.6 + 3* + 0.9* + 0.9 1.5* +224* + 2.1* - 1.5 1.9* -400 - 0.7 1.4 +129 - 0.1 + 0.9 0.4 -195 - 0.7 - 0.9 0.3 - 35 - 1.1 - 0.4 0.1 + 22 + 0.9 + 1.2 1.2 +292 + 3.2 - 0.7 2.3 3.72 3.60 3.35 3.34 0.4 0.4 0.4 0.9 3.25 tt + 0.9 + 0.3 0.8 4 Averages 5.41 5.12 5.74 Annual rates of increase 3/ + 1.2 + 3.7 + 1.9 + 4.7 + 7.1* + 4.7 - 2.2 + 0.3 - 0.8 ..................... 3.67 3.51 3.83 + 0.8 j l\ar 1966 First Half 1966 Second Half 1966 -283 -228 -337 5.06 4.69 5.39 4.85 4.59 5.12 4.77 4.67 4.87 Recent variations in growth July 6-Aug. 10 Aug.10-Nov. 16 -345 -320 5.32 5.46 4.81 5.27 4.85 4.91 5.55 5.78 3.80 3.87 - 4.2 -13.4 +12.7 - 2.7 + 0.4 + 1.4 Nov.16-Feb. -131 5.20 5.00 4.68 5.52 3.64 +11.1 + 1.4 +14.7 1 + 3.0 - 1.4 1/ From January 1966 to date, issues carry a 5-year call protection. 2/ Time deposits adjusted at all commercial banks. 3/ Base is average for month preceding specified period or in case of weekly periods, the first week shown. * - Changes have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. February 3,1967. + 8.4 +10.3* + 6.1 CONFIDENTIAL (FR) February 3, 1967. two statement weeks of January, dealer new loan rates posted by major New York banks declined to an average of about 5-1/2 per cent. Net borrowed reserves declined to an average of $60 million and member bank borrowings to $475 million for the month of January, as compared with figures of $191 million and $529 million respectively in December. In the statement week ending February 1, the money market was easy, with most Federal funds trading at 4-1/2 per cent or lower and with dealer loan rates further reduced. Net free reserves of $154 million were published for the week, with borrowings averaging only $176 million. Such unusually easy conditions were occasioned largely by developments related to the snowstorm in the Midwest on Thursday and Friday; the storm generated a sharp rise in float, but the full extent of the rise was not evident until late in the statement week. Late week adjustments in reserve figures--which occurred too late to be offset effectively by System open market operations--added almost $200 million of free reserves. The success of banks in attracting CD money as market interest rates dropped sharply during January contributed to an increase of time deposits at a 17.3 per cent annual rate in the month on average. U.S. Government demand deposits also rose sharply in the month, as payments by corporations of withheld income taxes were shifted out of February into January. There was only a February 3, 1967. -3- CONFIDENTIAL (FR) partially offsetting decline in private demand deposits, as business loans from banks rose sharply, partly in order to finance the tax payments. Total member bank deposits (the bank credit proxy) rose at about a 15.5 per cent annual rate in January on average, with the rise sustained throughout the month. But there was a decline in other sources of bank funds, as liabilities to foreign branches dropped off substantially and there was also a reduction in borrowing from the Federal Reserve discount window. After including the reduction in foreign borrowing, the proxy rose by a 12.5 per cent annual rate during the month. Nonborrowed reserves rose at about a 23 per cent annual rate in January on average. However, as already noted, a part of the reserves becoming available to banks from open market operations was used to reduce borrowings from the Federal Reserve, and some was held as increased excess reserves. Thus required reserves last month expanded at a 13 per cent annual rate. The general easing of monetary policy not only stimulated declines in money market rates and growth in bank credit, but also-in conjunction with recent Presidential statements about the desirability of a tax increase and easier monetary conditions-helped generate bullish expectations in bond markets. The relatively sharp resulting decline in long-term rates, together with the increased -4- CONFIDENTIAL (FR) February 3, 1967. availability and lower cost of time deposits, induced reductions in the prime loan rate of banks from 6 per cent to 5-3/4 per cent and, at a few banks, to 5-1/2 per cent. Prospective developments Discounting the special weather influences affecting the February 1 statement week, the maintenance of prevailing money market conditions could involve net borrowed reserves averaging close to $50 million and a Federal funds rate fluctuating 4-3/4 - 5 per cent. around It is possible that the Federal funds rate might tend to oscillate near the lower end of the range as long as the basic reserve position of major New York banks continues to be relatively comfortable and the 3-month bill rate stays close to the discount rate. Moreover, partly because banks no longer have to face the basic problems of reserve adjustment that stemmed from their earlier inability to roll over maturing CD's, there may be less reluctance on their part to make temporary use of the discount window, thus tending to hold down the premium on the Federal funds rate abcve the discount rate. The 3-month bill rate recently fell to just below the discount rate, and, in part, this may have reflected the considerable market ease related to the snowstorm. It is unlikely that the rate will move back much above the discount rate in the period immediately ahead, however, for February ordinarily is a month of good bill CONFIDENTIAL (FR) -5- demand and declining bill rates. At the same time, it is difficult February 3, 1967. to foresee any pressures working toward significantly lower bill rates. Dealer bill inventories remain exceptionally large; the System is likely to be reducing its security holdings around mid-February; and the Treasury is likely to be offering a sizable amount of additional June tax bills toward the end of the month. All in all, a policy resulting in net borrowed reserves averaging close to $50 million should be consistent with a 3-month bill rate in a 4.40 - 4.60 per cent range. Under such circumstances, long-term rates may not show much further downward movement; and some technical upward adjustments from the recent rapid yield declines are a possibility, especially if new issue calendars become further enlarged. However, both short- and long-term rates could show significant further downward movements if expectations shifted markedly further as a result of unfavorable economic news or more concrete peace talk prospects. Given such bill rates, we expect a slower--but still impressive--net expansion in CD's during February, perhaps one in a $750 million to $1 billion range (as compared with a $2.2 billion expansion during the four weeks ending January 25). The recent reductions in CD rates se3m indicative of diminished bank interest in bidding for such funds. The projected CD increase, together with continued expansion of other time and savings deposits at around recent rates, contributes to a projected time and savings deposit growth for CONFIDENTIAL (FR) February 3, 1967. the month on average of 15 - 17 per cent. Part of this growth on a daily average basis reflects the rapid weekly expansion during January; from the end of January to the end of February a 10 - 12 per cent rate of growth is projected. U.S. Government deposits are expected to decline slightly on average in February. Payment date for the expected June tax bill is uncertain, but is assumed to be in early March. Private demand deposits, after declining in January, are expected to rise in February, partly reflecting the decline in Government deposits and also a growth in demand for cash balances on the part of businesses for liquidity and precautionary reasons and to prepare for large March and April tax payments. In February private demand deposits might expand in a 5 - 7 per cent range. Such developments in time and demand deposits are consistent with a bank credit proxy expanding by about 9 - 11 per cent on average in February. The rise would be about 2 percentage points less with inclusion of Euro-dollar borrowings by banks, even in the event that Euro-dollar borrowings by banks do not decline further from their end of January levels. With a slower week-to-week time deposit growth during the month and a sharp decline in U.S. Government deposits around the end of the month, the credit proxy is projected to rise by only about 2 per cent from the end of January to the end of February. This should be followed by CONFIDENTIAL (FR) -7- February 3, 1967. considerably stronger expansion in March weeks, however, reflecting the expected tax bill financing by the Treasury and also mid-March tax period borrowing. The relatively slow growth in the credit proxy from the end of January to the end of February assumes slower business loan expansion as February progresses, with some of earlier tax-related borrowing being repaid. It also assumes a modest decline in dealer loans made by banks, but continued bank interest in purchasing securities to restore their liquidity. Bank credit expansion could be weaker than projected if inventory adjustments are unexpectedly large, and demands for credit fall off. If open market operations are conducted so as to ease money market conditions somewhat further, this could involve a modest positive net reserve position for banks (say, free reserves in a zero-$100 million range) and Federal funds trading more often around the discount rate. These money market conditions might bring about somewhat greater increases in the monetary aggregates, but the effect of such incremental ease on bank credit expansion is unlikely to be as dramatic as in the recent past. Recent experience suggests that banks would not find it desirable to continue to expand time deposits at the rapid January rate, especially if loan demand in the weeks immediately ahead moderates from the heavy demands of January. Therefore, banks may adjust interest rates offered on CONFIDENTIAL (FR) February 3, 1967. CD's and other time deposits in line with declines in market rates. The 3-month bill rate would be likely to be within a 4.25 - 4.45 per cent range with such a policy shift, and with some attendant reduction in other money market rates. The easier monetary policy discussed above and the expectations generated it would place more downward pressure on customer rates. Moreover, the sustainability of the present discount rate would probably be more widely questioned--with the ebb and flow of expectations in that respect possibly generating a wider band of interest rate movements. In addition, it would become more likely that any technical reaction in long-term bond markets would be forestalled or minimized, with long rates remaining steady or declining somewhat further. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Period - Excess reserves As Member banks I borrowinas revised Free reserves V I date to .1 Monthly (reserves weeks ending in): As first published each week As expected at conclusion of each week's open market opeations 1966--January February March April May June July August September October November December p 380 357 335 361 315 370 380 366 375 341 370 337 431 474 545 638 653 722 739 740 765 766 605 529 -117 -210 -277 -339 -352 -359 -374 -390 -425 -235 -192 1967--January p 415 476 - 61 5 12 19. 26 314 413 489 147 828 928 790 518 -514 -515 -301 -371 -439 -511 -297 -366 -439 -489 -308 -376 Nov. 2 9 16 23 30 279 378 547 184 460 594 646 711 439 636 -315 -268 -164 -255 -176 -301 -249 -227 -261 -207 -302 -224 -244 -236 -221 Dec. 7 14 21 28 181 510 204 455 449 647 472 548 -268 -137 -268 -245 -152 -264 -112 -194 -143 -248 - 39 4 11 18 25 385 658 119 500 565 585 217 538 + 73 - 98 - 38 -188 +'67 - 39 - 47 -175 + 61 - 53 - 62 1 330 176 +154 +154* -150 - 51 Weekly: 1966-- *Oct. 1967-- Jan. Feb. I p - Preliminary £ - 93 -180 I _ __ * - Reflects end of week statistical adjustments increasing F.R. float due to snow storms in the midwest. _ _ 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 rve Total Reserves r e g a t e s Required reserves Against Nonborrowed Total Demand Reserves Deposits Ag Monet a Member Bank Deposits Bank Deposits (cr ) y Variables Time Money Supply Deposits Private (comm. Total Demand banks) Deposits Annually: 1965 + 5.3 + 4.3 + 5.3 + 2.3 + 9.1 +16.0 + 4.7 1966 + 4.4 + 1.2 + 0.8 + 1.5 - 0.2 + 3.7 + 8.4 + 1.9 + 0.9 Monthly: 1965--September October November December - 1.2 + 3.7 + 0.6 +13.8 + + + 3.9 7.3 5.0 9.8 - 2.2 + 9.7 - 2.0 +13.7 + + 6.8 5.1 3.9 8.2 + 3.6 +12.5 + 5.1 + 9.7 +13.7 +17.8 +15.0 +11.5 + 8.1 + 8.0 + 2.9 +11.6 + 9.4 + 7.5 + 1.9 +13.0 1966--January February March April May June 2/ July 2/ August 2/ September 2 + 6.7 + 4.0 + 2.9 +13.2 + 0.3 + 0.2 +11.4 -20.2 + 6.6 + 9.5 + 3.1 - 4.6 +10.9 + 0.1 - 0.8 + 7.1 -15.8 - 0.3 + 6.9 + 2.9 + 2.7 +11.9 + 2.1 + 1.6 + 8.4 -14.8 - 0.2 +11.3 + 3.8 + 4.0 +11.7 - 4.8 + 1.3 + 2.9 -16.9 - 3.2 + 8.1 + 3.5 + 5.5 +15.5 + 4.9 + 4.4 +10.3 - 3.4 - 0.5 + 7.4 + 5.7 + 8.1 +15.3 +12.7 +11.8 +14.8 +10.7 + 3.0 + 5.7 + 1.4 + 7.8 +11.3 - 4.9 + 6.3 -10.5 -+ 6.4 + 4.6 -+ 8.2 +12.7 - 7.2 + 7.2 -16.2 - 0.9 + 7.3 - - - - October 2/ -10.0 - 2.9 - 2.3 - November 2/ December 24 - 1.8 + 1.1 + 5.7 + 1.2 - 7.6 + 4.8 - 8.6 - 1.3 - 5.9 + 4.4 + 0.8 + 9.1 - 2.8 + 8.5 - 4.6 + 9.2 +16.8 +23.4 +13.2 +13.0 +15.7 +17.3 - 4.9 + 8.2 1967--January 2/ 1 1/ 7.1 1.1 2.0 Includes all deposits subject to reserve requirements. 6.3 8.1 Movements in this aggregate correspond closely with movements in total member bank credit. 2/ Changes in reserves, total deposits, and time deposits have been adjusted for redefinition of ti e' deposits Changes in reserves have been adjusted for increases in reserve requirements in July and effective June 9, 1966. September , 1966. p - Preliminary. Chart 1 MEMBER BANK RESERVES MONTHLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS, SEASONALLY ADJUSTED 24.0 TOTAL RESERVES 23.5 23.0 -H1 22.5 22.0 NET BORROWED RESERVES 21.5 -- 1 21.0 F_ BILLIONS OF DOLLARS 1.5 1.0 MEMBER .5 so BORROWINGS f_______,_0__0_0_go_00___*-N sinataf EXCESS 0o BANK S 1965 D RESERVES I II I I I M J 1966 I S D M 1967 Chart 2 MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF DOLLARS LIABILITIES TO OVERSEAS BRANCHES [WEEKLY REPORTING BANKS) ADJ, NOT SEAS WEDNESDAYS __________________'_4 olob_______ mf of^ noWO 00~~^ I I I I I I I I I I I 1966 I 1 I II 1967 Chart 3 MONEY SUPPLY AND BANK DEP SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAIL BILLIONS OF DOLLARS BILLIONS OF DOLLARS 180 - 175 -- MONE' 170 165 --- .-- 160 TIME D)EPOSITS ADJUSTED (All C_ ommercial ~ Banks)~-~ _ 15 150 I 145 140 135 130 125 I NEGOTIABLE ~1 CD'S _____(Unadjusted)-- S 1965 D M J 1966 S D M 1967 *CHANGE IN SERIES Chart 4 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY U.S. POVT. AVERAGES OF DAILY FIGURES DEMAND DEPOSITS (Member Banks) , V i Ii , , -- iv ,i S 1965 1966 1967 Table B-l MAJOR SOURCES AND USES OF RESERVES Retrospective and Prospective (Dollar amounts in millions, based on weekly averages of daily figures) Factors affecting supply of reserves Period Federal Reserve credit (excl. float) 1/ Gold Currency outside banks stock = Technical factors net 2/ Change in total reserves = Bank use of reserves Required reserves 3/ Excess reserves ACTUAL Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) Year-to-date: (12/29/65 - 2/2/66) (12/28/66 - 2/1/67) +4,035 +3,149 -1,602 -627 -2,143 -2,232 +798 +805 +1,089 +1,096 +1,188 +1,104 -453 -730 - 54 -- +1,130 +1,451 -1,164 -1,019 -542 -298 -427 -173 -115 -125 +440 + 34 +452 +361 -294 -507 -239 -309 +462 -125 -859 +335 +532 -398 -320 - 46 - 70 +273 -539 +381 +164 +330 -111 + 59 -170 - 99 8 Weekly: 1967--Jan. Feb. 4 11 18 25 p p p p +319 +347 -1,073 +283 1 p -606 --- 1 -- + 1 PROJECTED 4/ 1967--Feb. 8 15 22 +725 - 55 -520 ---- -485 + 75 +105 -375 -155 +160 -135 -135 -255 -135 -135 -255 Mar. 1 8 15 22 29 - 15 +565 +160 5 - 70 ------ + 95 -490 + 5 + 35 +210 - 50 -100 -+350 -300 + 30 - 25 +165 +380 -160 + 30 - 25 +165 +380 -160 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. -- 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) Period Supporting private deposits Seasonal changes Supporting U. S. Gov't. Total required demand deposits reser Total Time __Demand O ther than seasonal changes Demand Time ACTUAL Year: 965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +1,188 +1,104 - 89 - 90 +1,277 +1,194 +115 - 14 - 4 4 +499 - 7 -427 -173 -232 -108 -195 - 65 -326 -232 + 63 + 71 + 50 - 80 + 18 +176 p p p p +532 -398 -320 - 46 - 34 - 78 -221 +231 +566 -320 - 99 -277 +334 -142 -114 -229 + + + + 24 12 19 13 +190 -220 - 38 -117 + + + + 1 p + 59 - 6 + 65 - 81 + 3 +105 + 38 8 -135 + 70 -205 -230 + 10 -- + 15 15 -135 - 70 - 65 -130 + 22 -255 + 40 -295 -370 1 8 15 + 30 - 25 +165 - 70 -105 + 60 +100 + 80 +105 + 35 + 35 + 60 22 29 +380 -160 +150 +265 +230 -425 +220 -430 Year-to-date: (12/29/65 - 2/2/66) (12/28/66 - 2/1/67) Weekly: 1967--Jan. Feb. 4 11 18 25 - +667 +1,219 1, 18 30 34 56 PROJECTED 1967--Feb. Mar. 1/ Reflects reserve requirements changes in July and September, 1966. p - Preliminary. 5 + 45 + 15 + 60 + 15 + 10 + 10 + 5 + 45 + 25 + 30 + 10 + 10 + 10 -+ 10 -- 15 + 10 + 10 -- Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Foreign deposits and gold loans Technical factors (net) Period ACTUAL Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) Other nonmember deposits and F. R. accounts on reserves) +798 +805 +294 +673 -171 + 64 + 77 - 30 +598 + 98 -114 -216 -806 -510 - 44 + -200 -298 - 27 + 40 -148 -135 -284 -276 -106 - 85 - 58 Year-to-date: (12/29/65 - 2/2/66) (12/28/66 - 2/1/67) Weekly: 1967--Jan. -1,164 -1,019 4 11 18 25 -294 -507 -239 -309 Feb. 1 +330 +111 +241 1967--Feb. 8 15 22 -375 -155 +160 +100 + 20 -- -400 -200 +300 Mar. 1 8 15 22 29 - 50 -100 -+350 -300 -107 - 58 5 - 69 - 63 PROJECTED ---- - 50 -100 - 60 +275 -300 - 10 --- --- - 65 + 25 -140 --+ 60 + 75 -- Table B-4 SOURCE OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions of dollars, based on weekly averages of daily figures) Total Federal Period Reserve credit (Excl. float) _ Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) U.S. -overnment Total holdings securities I Repurchase agreements Bis ____ __ Federal Agency Securities B' M acceances borrowing -145 +437 + 26 + 77 + 52 + 42 + 2 -332 +435 + 28 -658 - 26 - 21 -109 -128 -372 +225 +455 - 59 -438 +550 +243 +323 +132 - 16 - 43 -306 +212 -132 +338 + 3 + 2 - 1 + 11 + 28 + 76 + 52 + 65 -272 +197 +256 -202* -112* +452 +141 -120 +115 -154 - 69 + 26 +105 +315 + + + 19 22 49 25 -187 +198 -175 + 76 +319 +347 -1,073 +283 +282 +345 -611 + 3 +434 +303 -203 +109 -152 -408 -106 + 19 + 4 - 89 - 41 + 17 + 20 -368 +321 -606 -242 -208 - 34 - -362 +4,035 +3,149 +3,916 +3,069 +3,145 +2,158 -453 -730 -304 -223 +304 +509 + 5 -699 +775 7 14 21 28 + 97 4 11 18 25 1 +916 +474 Year-to-date: (12/29/65 - 2/2/66) (12/28/66 - 2/1/67) Weekly! 1966--Nov. 2 9 16 23 30 Dec. 1967--Jan. Feb. - 19 -231 +556 I _____________________ _____________ . ___________ - 18 + 42 . __________ 2 I * - Includes effect of change in special certificates of +$72 million of the week of December 14, of the week of December 21, 1966. 1966, and -$72 million Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures)' Period Total Nonborrowed reserves reserves reservesTotal s Required reserves Total Against private deposits Demand Total Demand 1965--January February March April May June July August September October November December 21,960 22,157 22,279 22,449 22,436 22,612 22,682 22,689 22,667 22,737 22,748 23,010 21,625 21,771 21,814 21,953 21,994 22,082 22,158 22,186 22,114 22,248 22,341 22,523 21,563 21,713 21,868 22,036 22,109 22,243 22,332 22,299 22,259 22,439 22,402 22,657 20,702 20,765 20,881 20,985 20,962 21,138 21,247 21,331 21,553 21,720 21,803 21,970 15,730 15,717 15,789 15,831 15,750 15,877 15,912 15.916 16,071 16,151 16,168 16,285 1966--January February March April May June 1/ July 1/ August 1/ September 1/ October 1/ November 1/ December p 1/ 23,139 23,217 23,274 23,530 23,536 23,539 23,763 23,363 23,492 23,297 23,262 23,284 22,701 22,759 22,671 22,877 22,878 22,862 22,997 22,695 22,700 22,566 22,674 22,697 22,788 22,844 22,896 23,123 23,163 23,193 23,355 23,067 23,064 23,042 22,896 22,987 22,075 22,084 22,269 22,477 22,453 22,582 22,515 22,517 22,597 22,430 22,380 22,522 16,364 16,356 16,510 16,625 15,534 16,626 16,472 16,428 16,497 16,352 16,317 16,411 1967--January p 1/ 23,610 23,174 23,241 22,526 16,323 p - Preliminary. I/ Reserves have been adjusted for redefinition of time deposits effective June 9, 1966 Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar amounts in billions, based on monthly averages of daily figures) Monthly Total member bank deposits (credit) / e Time deposits Private demand U.S. Gov't. demand deposits 2/ deposits 1965--January February March April May June July August September October November December 218.4 220.4 222.5 224.6 225.8 227.7 229.1 230.4 231.1 233.5 234.5 236.4 106.0 107.6 108.6 109.9 111.1 112.2 113.8 115.5 116.9 118.7 120.2 121.2 107.4 107.3 107.8 108.1 107.5 108.4 108.6 108.6 109.7 110.2 110.4 111:2 5.0 5.5 6.1 6.7 7.2 7.1 6.7 6.3 4.6 4.5 4.0 4.0 1966--January February March April May June 3/ July 3/ August 3/ Sept. 3/ Oct. 3/ Nov. 3/ Dec. 3/ p 238.0 238.7 239.8 242.9 243.9 244.8 246.9 246.2 246.1 245.5 244.3 245.2 121.8 122.1 122.8 124.8 126 2 127.0 128.9 129.8 130.1 129.6 129.3 130.3 111.7 111.6 112.7 113.5 112.9 113.5 112.4 112.1 112.6 111.6 111 4 112.0 4.5 5.0 4.3 4.7 4.8 4.3 5.6 4.2 3.5 4.3 3.7 2.9 1967--Jan. 3/ p 248.4 132.3 111.4 4.8 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. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. 1/ TABLE C-2a DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar amounts in billions, based on weekly averages of daily figures) Week ending: Total member bank deposits (credit)1/ Time deposits Private demand 2/ __deposits U. S. Gov't. demand deposits 1966- -July 6* 13* 20* 27* 247.3 247.1 247.0 247.1 127.9 128.7 129.0 129.2 113.0 112.2 112.6 112.1 6.3 6.2 5.4 5.8 Aug. 3* 10* 17* 24* 31* 246.1 246.3 246.5 245.0 246.8 129.2 129.4 129.9 130.1 130.3 112.1 111.1 112.3 112.1 112.2 4.8 5.7 4.3 2.8 4.4 Sept. 7* 14* 21* 28* 247.0 246.5 245.7 245.7 130.2 130.2 129.8 130.0 112.5 112.1 113.7 112.8 4.3 4.2 2.2 2.9 Oct. 5* 12* 19* 26* 246.2 245.2 244.3 246.1 129.8 129.8 129.8 129.3 112.8 112.1 111.5 111.0 3.5 3.3 3.0 5.9 Nov. 2* 246.1 245.8 244.4 243.0 243.2 129.5 129.3 129.3 129.3 129.2 111.2 111.1 111.1 111.1 111.3 5.4 5.3 4.0 2.2 2.7 244.5 244.5 245.5 245.7 129.5 129.8 130.2 131.0 111.9 111.2 113. 1 111.5 3.2 3.5 2.2 3.2 9* 16* 23* 30* Dec. 7* 14 * 21* 2 8p* 1967-- Jan. 4 p* lip* 18p* 25p* 247.1 247.6 247.8 249.3 131.3 131.7 132.0 132.9 112.5 111.5 111.4 110.6 3.3 4.4 4.3 5.8 Feb. Ip* 250.2 133.5 111.3 I 5.4 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 b:-nk credit. 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, 1966. 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 Currency 1/ Private Demand Deposits Te Time Deposits / Adjusted 1965--January February March April May June July August September October November December 159.7 159.8 160.3 161.0 160.7 161.7 162.4 163.0 164.1 165.2 165.6 167.2 34.5 34.6 34.7 34.8 34.9 35.0 35.3 35.5 35.7 36.0 36.1 36.3 125.3 125.2 125.6 126.2 125.8 126.7 127.2 127.5 128.5 129.3 129.5 130.9 128.7 130.7 132.0 133.3 134.6 136.2 137.9 140.0 141.6 143.7 145.5 146.9 1966--January February March April May June 3/ July 3/ August 3/ September3/ October 3/ November 3, Decemberyp 168.0 168.2 169.3 170.9 170.2 171.1 169.6 169.6 170.5 169.6 169.2 170.4 36.6 36.8 36.9 37.2 37.3 37.4 37.7 37.8 37.9 37.9 38.0 38.3 131.4 131.4 132.3 133.7 132.9 133.7 131.9 131.8 132.6 131.7 131.1 132.1 147.8 148.5 149.5 151.4 153.0 154.5 156.4 157.8 158.2 157.9 158.0 159.2 1967--January .3/ 169.7 38.5 131.2 161.5 1/ 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, 1966. 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 155.5* 156.1* 156.6* 157.1* 169.7 169.8 170.0 37.7 37.8 37.8 37.8 37.7 131.6 130.9 131.9 132.0 132.2 157.0* 157.4* 157.9* 158.0* 158.2* Sept . 7 14 21 28 170.5 170.1 171.7 170.0 37.8 38.0 38.0 37.9 132.6 132.1 133.7 132.1 158.2* 158.2* 158.1* 158.4* Oct. 5 12 19 26 170.7 170.2 169.6 168.9 37.9 38.0 37.9 37.9 132.8 132.2 131.7 131.0 158.2* 158.0* 158.1* 157.7* Nov. 2 9 16 23 30 168.9 168.8 168.9 169.3 169.3 37.8 38.0 38.1 38.0 38.1 131.1 130.9 130.8 131.3 131.2 157.8* 157.9* 158.0* 158.0* 157.9* Dec. 7 14 21 28 p 169.7 169.1 171.9 170.2 38.1 38.2 38.2 38.4 131.7 130.9 133.7 131.8 158.2* 158.6* 159.2* 160.0* 4 11 18 25 p p p 170.7 170.1 170.3 169.1 38.4 38.5 38.5 38.4 132.2 131.6 131.8 130.7 160.4* 160.8* 161.2* 162.1* 1 p 169.4 1967--Jan. Feb. 3 10 17 24 31 169.2 169.6 169.8 168.9 168.7 p 38.5 130.9 162.9* A 1L Includes currency outside the Treasury, the Federal Reserve, and the vaults o:E _________________ 1/ adjusted 133.3 132.0 132.1 131.2 Aug. 170.9 2/ 37.6 37.7 37.7 37.7 1966--July 6 13 20 27 Time Deposits ___________________ 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. * - Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. February 6, 1967. ERRATA SHEET FOR BLUEBOOK DATED FEBRUARY 3, 1967 Please note following corrections of data reported in the Bluebook: Table A-i (last column) Free Reserves--as expected at conclusion of each week's open market operations for February 1, 1967, should read -50, not -150 as reported. Table A-2 (last column) Money Supply--Private Demand Deposits for January 1967 should read -8.2, not +8.2 as reported. 

Federal Reserve (1967, February 6). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19670207

@misc{wtfs_bluebook_19670207,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1967},
  month = {Feb},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19670207},
  note = {Retrieved via When the Fed Speaks corpus}
}