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 16, 1967. MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments There have been relatively wide interest rate fluctuations in the Government securities market since the last meeting of the Committee. After declining in the latter part of May, yields rose again in the first half of June,and in the note and bond sector moved into new high ground for the year to date; the rise in yields was most pronounced in the long bill and intermediate-term coupon areas. Outside the Treasury market, yields rose on a variety of short-term debt instruments, including finance company paper, bankers acceptances, short-term Federal agency securities, and negotiable CD's, maturities of the latter. including longer Yields on new corporate bonds have drifted further upwards, while municipal bond yields have remained relatively stable. Treasury bill rates turned up sharply in early June following earlier persistent declines and the 3-month bill has recently been bid around 3.60 per cent, up from a low of 3.37 per cent on June 5, while the 1-year bill rate was up to 4.20 per cent. In part, the rise in short-term rates may have reflected market preparations for the mid-June tax and dividend period, but expectations of an imminent Treasury cash financing in the short-term maturity area have given added impetus to the yield increases most recently. In addition all sectors of the financial market were affected by uncertainties associated with the Mid-East crisis. FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE ('Monthlv averages and, where available, weeK-v averagte Bond Yields larket Indicators Corporate MuniciBorrow- Federal 3-month Money Free ings Zeserves (In millions Period Funds Rate of dollars) 1966--May June July Aug. Sept. Oct. Nov. Treasury Bill of daily figures) Flow of Reserves. Bank Credit and Money Time Money Bank Total Non- Reborrowed pal New U.S. Reserves serves (Aaa) Gov't. Issues (20 yr.) (Aaa)_rs_ / _(_n_ _illionsof (In dollars "_-__ _ordo__ millions Credit Proxy upply Deposits 2/ (In billions of dollars) (Seasonally Adjusted) + 1.6 - 0.7 +1.0 + 6 + 1.5* + 0.9 +0.9* + 3* - 1.5 c + 2.0* +2.1* +224* + 1.4 --0.7 -400 + 0.4 + 0.9 -0.1 +129 - 0.3 - 0.9 -0.7 -195 -339 -352 -359 -374 -390 -425 653 722 439 740 765 766 4.83 5.13 5.18 5.45 5.30 5.46 4.63 4.50 4.78 4.95 5.36 5.33 4.69 4.73 4.84 4.95 4.94 4.83 5.16 5.35 5.48 5.64 5.82 5.70 3.53 3.60 3.77 3.91 3.93 3.82 + 1 - 16* +135* -302 + 5 -134 -235 605 5.75 5.31 4.88 5.71** 3.78 +108 - 35 -1.1 - 0.4 + 0.1 3.79 + 21 + 21 +0.9 + 1.1 + 1 Dec. -196 529 5.39 4.96 4.76 5.73** 1967--Jan. Feb. - 59 + 42 476 366 4.87 4.99 4.72 4.56 4.51 4.61 5.43** 5.18** 3.50 3.38 +492 +359 +331 +272 +3.3 +3.1 - 0.7 + 0.8 c + 2.5 + 2.6 +172 +199 +270 196 150 94 4.50 4.03 3.93 4.26 3.84 3.60 4.56 4.64 4.90 5.31** 5.38** 5.62** 3.47 3.50 3.71 +541 +122 + 97 +451 + 31 - 34 +3.2 +2.9 +0.4 + 2.4 - 0.7 + 2.0 + 2.1 + 2.0 + 2.1 17 p 24 p 31 p +271 +273 +269 123 50 102 4.03 3.90 3.94 3.63 3.52 3.47 4.91 4.96 4.91 5.66 5.68** 5.71** 3.75 3.78 3.78 +0.1 -1.0 +0.6 + 2.1 + 0.1 + 0.3 + 0.5 + 0.4 + 0.6 7 p 14 p +266 +325 77 43 3.90 4.00 3.39 3.51 4.85 4.93 5.70** 5.74** 3.76 3.78 +1.0 +1.0 + 0.3 + 0.6 + 0.7 + 0.7 Mar. Apr. May p 1967--May June Annual rates of increase 3/ Averages Year 1966 First Half 1966 Second Half 1966 -283 -228 -338 672 581 763 5.06 4.69 5.39 4.85 4.59 5.12 4.77 4.67 4.87 5.41** 5.12 5.74** 3.67 3.51 3.83 Recent variations in growth 6-Nov. 16 July Nov. 16-Mar. 29 Mar. 29-June 14 -346 - 23 +249 732 397 108 5.43 5.01 4.40 5.13 4.70 4.04 4.89 4.64 5.27 5.72** 5.36** 5.56** 3.85 3.57 3.63 + 0.8* + 3.0* - 1.5* + 1.2* + 4.6* - 2.2* +3.7* +7.1* +0.3* -3.1 +13.6 +6.4 Issues carry a 5 -year call protection; ** inclu des issues carrying 5-year and u1-year call procection. Time deoosits ad justed at all commercial banks. week shown. first Base is average for month preceding specified period or in case of weekly periods, the Changes have been adjusted for redefinition of time deposits effective June 9, 1966. Preliminary. r.-- f4- Tinp 16 1967. + 1.9 + 4.7 - 0.9 + 8.4* +10.3 + 6.1* - 3.0 + 7.0 + 7.9 + 4.4 +15.8 +17.8 CONFIDENTIAL (FR) -2- June 16, 1967. By way of contrast, rates on day-to-day money, including Federal funds and dealer loan rates, have not shown any trend recently. Federal funds have continued to trade close to the discount rate, with the effective rate averaging just below 4 per cent in recent weeks. Rates on new loans to dealers posted by major New York City banks have centered around 4-1/8 to 4-3/8 per cent and financing from outside New York sources have continued to be available at close to the Federal funds rate. Free reserves rose to $324 million in the statement week ended June 14, which included the dividend date and pre-tax date preparations. In the three previous statement weeks, and indeed since the week ending May 3, free reserves had held in the unusually narrow range of $266 to $273 million. Member bank borrowings have continued to move lower, averaging only $68 million in the last four statement weeks compared with $105 million in the previous four weeks. With a few of the major banks experiencing sizable net CD inflows and increases in other time and savings deposits continuing strong at all commercial banks, total time and savings deposits appear to be growing at an annual rate of around 16 per cent in June, a somewhat faster rate of expansion than was projected in the previous blue book. And with U.S. Government deposits at commercial banks declining sharply on average in June, money supply is also expanding at an 11 - 12 per cent annual rate in June, a little faster than anticipated earlier. Mainly because of the faster growth in time and savings deposits, CONFIDENTIAL (FR) -3- June 16, 1967. expansion in the bank credit proxy appears to have risen to a 7 - 8 per cent annual rate in June, slightly above the 4 - 7 per cent range previously projected, and well above the small May growth rate. With bank credit generated mainly by time deposits (since changes in U.S. Government and private demand deposits seem virtually offsetting), only a small increase in the reserve base of banks is occurring. Total and nonborrowed reserves are increasing at only about a 1 - 3 per cent annual rate this month, continuing the relatively slow growth of the previous month. But even with the low growth rate for aggregate reserves, the large inflows of time deposits and the apparent moderation of loan demand have led to continued relatively large bank investments in securities at the high yields generally available. Such investments had been a factor in keeping municipal yields generally stable over recent weeks and had helped to cushion the market for U.S. Government securities; most recently there have been signs that bank interest in such securities may be waning. Almost half of the reserves that were supplied by the System had a direct effect in moderating pressures in intermediate- and longterm credit markets. From May 23 through June 7, the Account Management purchased $222 million of coupon issues (including $88 million maturing in over 5 years) while acquiring, net, only $167 million of bills outright; about $60 million of reserves on average were also provided through repurchase agreements. In the week of June 14, there was a need to absorb reserves,partly because of a decline in the Treasury balance, and the System was a net seller of $566 million of bills (about 75 per cent of which were sales to foreign accounts). CONFIDENTIAL FR) June 16, 1967. For the 7 month December 1966 - June 1967 period, the bank credit proxy is now estimated to rise at about a 12 per cent annual rate (10.5 per cent after including the change in Euro-dollar borrowings). Time deposits may rise by about 17 per cent and money supply about 6-1/2 per cent. U.S. Government deposits are estimated to decline at a 40 per cent annual rate from their already low average level in November of last year. Prospective developments Prospective movements in interest rates, bank credit, and money over the next four weeks will be strongly influenced by sizable Treasury cash financing operations, as well as by continued heavy corporate and state and local government borrowing in the capital market.1 / The recent interest rate increases have reflected some anticipation of such developments, but additional upward rate pressures could well be generated place. as the large security market flotations take The extent to which upward rate pressures actually develop, however, will be importantly influenced by the attitudes of banks toward further acquisitions of securities. This, in turn, will depend in large measure on how rapidly their reserve base expands and on the relative cost to banks of obtaining short-term funds. 1/ This analysis does not take account of potential market and reserve problems that might be created by delay in passage of the debt ceiling legislation beyond mid-year. CONFIDENTIAL (FR) June 16, 1967. -5- Loan demands from business and consumers are expected to remain quite modest in summer, but comparative yield relationships may continue to encourage banks to employ time deposit money to invest in state and local government securities. The yield incentive to move funds into the Government market is less, although liquidity considerations are still a factor influencing banks toward short-dated Governments. Thus, if banks are to acquire and hold a substantial share of the new Treasury issues, they will need to be offered the option of paying for such issues with credits to tax and loan accounts, and the subsequent tendency for such newly created deposits to contract will need to be countered by System action to avoid contraction in aggregate reserves. There will be a need for additional reserves over the weeks immediately ahead if banks are also to be encouraged to provide reasonably priced financing to dealers during the Treasury financing. Assuming a $4 billion Treasury cash financing (with full tax and loan credit) and assuming the System provides reserves to accommodate bank underwriting, it appears likely that nonborrowed reserves in July will increase,at an annual rate, in a 11 - 14 per cent range. The projected reserve growth would, of course, be lower if the financing were not so large. The exact timing, the precise amount, and the types of securities issues in such financing are uncertain because of the fluid market conditions and because of the long delay in approval by Congress of the proposed debt ceiling legislation. For projection purposes, we have assumed the financing takes place shortly after mid-month. CONFIDENTIAL (FR) -6- June 16, 1967. The rate of growth in reserves noted above would support a July bank credit expansion,on average, in a 10 - 12 per cent range (considerably larger from the last week in June to the last week in July ), and appears to be required to keep money market conditions within the range that has prevailed over the past four weeks. These conditions can be characterized to include a Federal funds rate averaging a little below 4 per cent, dealer new loan rates in New York averaging 4-1/8 - 4-3/8 per cent, and member bank borrowings in a $50 - $100 million range. Apart from a brief seasonal rise that usually occurs in the second week of July, excess reserves may continue around the $350 million level around which they have recently ranged. It is possible, however, that excess reserves may rise above such levels around the time of the Treasury financing if the System finds it necessary to provide a rather substantial amount of reserves in a short period in order to keep over-all money market conditions comfortable, to hold down credit market pressures that could develop in the wake of the financing, and to forestall any worsening market psychology. In the bill market, between now and the end of June, some additional demand for bills may develop, including mid-year statement date buying by banks, re-investment demand from the large portion of the June tax bills turned in for cash, and the return of the System to the buying side of the market. Factors that would tend to keep rate declines minimal over the very near-term include the current large size of dealer bill positions and the recent evidence of banks' willingness to bid for CONFIDENTIAL (FR) CD funds. -7- June 16, 1967. And as we enter the new fiscal year, bill rates are likely to be under upward pressure in light of the Treasury cash borrowing. All in all, assuming the Treasury issues longer-term bills in its cash financing, a rate range for the 3-month bill of 3.50 - 3.80 per cent seems reasonable between now and the next meeting of the Committee. We are projecting that banks will make efforts to recover CD funds lost around the tax date, and that negotiable CD's outstanding will rise about $500 million over the month of July. Continued sizable inflows of other time and savings deposits are assumed, although a more buoyant economy is likely to lead to some abatement in the flow of consumer savings over time. For July on average, total time and savings deposits are expected to rise by about 12 - 14 per cent, annual rate. Little change in U.S. Government deposits is expected on average between June and July, as the anticipated large cash borrowing would just about offset the anticipated Treasury cash drain. But private demand deposits and the money supply are expected to rise on average in July, by perhaps a 10 - 15 per cent annual rate. The increase for the monthly average is in large part a carry-over of the rise in deposits in late June. The inflow of funds to the Government from the July financing is not expected to absorb much private demand deposits in the period immediately ahead, since the projections assume that reserves will be supplied in sufficient amount so that banks will sell off the Government securities they acquire only gradually. CONFIDENTIAL (FR) -8- June 16, 1967. The relatively large reserve, bank credit, and money supply expansion--if it develops--is likely to moderate upward interest rate pressures in intermediate- and long-term credit markets. Such assistance to these markets would be enhanced by continued System purchases of coupon issues. Over the three-week period ending July 12, current projections indicate a reserve need of roughly $1.5 billion, although market factors will partly reverse that need in the following week. Thus, there is scope for sizable coupon purchases in the course of regular reserve-supplying operations. The Treasury's July financing program will impose some even-keel considerations on the conduct of System operations. Inclusion of a coupon issues in the program-- apparently only a remote possibility at the moment--would limit the ability of the System to buy coupon issues around the time of such financing, particularly issues in the maturity range of the offering. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Member banks borrowings Excess reserves Period As I to revised Free reserves date I Monthly (reserves weeks ending in): As first published each week As expected at conclusion of each 1966--May June July August September October November December 315 370 380 366 375 341 370 333 653 722 739 740 765 766 605 529 1967--January February March April May p 417 408 368 349 364 476 366 196 150 94 + 42 +172 +199 +270 1 8 15 22 29 159 359 372 566 385 167 202 173 302 135 - 8 +157 +199 +264 +250 + 4 +165 +204 +277 +235 +216 +217 +290 +253 5 447 226 478 246 180 145 178 98 +267 12 19 26 +300 +148 +339 +154 +312 +169 +300 +184 +305 +171 May 3 10 17 p 24 p 31 p 405 329 394 323 371 134 63 123 50 102 +271 +266 +271 +273 +269 +345 +260 +261 +288 +264 +343 +262 +291 +291 +264 Jun. 7 p 343 368 77 43 +266 +325 +284 +325 +290 +339 -339 -352 -359 -374 -390 -425 -235 week's open market opeations ____________________________________________ I -196 - 59 Weekly: 1967--Mar. Apr. 14 o p - Preliminary p - Preliminary + 81 - 17 TABLE A-2 AGGREGATE RESERVES AND RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) Reserve Total Reserves Ag re ates Required reserves Against No Nonborrowed e Total Demand Reserves _______Deposits Monetary Total Member an Deposits Bank Deposits (crd / (credit) I/ ___) __ Variables Time Money Suppl Private Deposits r _ Demand (comm. Total banks) Deposits __ Annually: 1965 1966 + 5.3 + 1.2 + 4.3 + 0.8 4 5.3 + 1.5 + 2.3 - 0.2 + 9.1 + 3.7 +16.0 + 8.4 + 4.7 + 1.9 + 4.4 + 0.9 Monthly: 1966--January February + 6.7 + 4.0 + 9.5 + 3.1 + 6.9 + 2.9 +11.3 + 3.8 + 8.1 + 3.5 + 7.4 + 5.7 + 5.7 + 1.4 + 4.6 March + 2.9 - 4.6 + 2.7 + 4.0 + 5.5 + 8.1 + 7.8 + 8.2 April +13.2 +10.9 +11.9 +11.7 +15.5 +15.3 +11.3 +12.7 May + 0.3 + 0.1 + 2.1 - 4.8 + 4.9 +12.7 June 2/ July 2/ + 0.2 +11.4 - 0.8 + 7.1 + 1.6 + 8.4 + 1.3 + 2.9 + 4.4 +10.3 +11.8 c +15.5 + 6.3 -10.5 + 7.2 -16.2 August 2/ September 2/ October 2/ November 2/ -20.2 + 6.6 -10.0 - 1.8 -15.8 - 0.3 - 7.1 + 5.7 -14.8 - 0.2 - 1.1 - 7.6 c -17.3 - 3.2 - 2.0 - 8.2 - 3.4 - 0.5 - 2.9 - 5.4 c +10.0 + 3.0 - 2.3 + 0.8 -+ 6.4 - 6.3 - 2.8 + - December 2/ + 1.1 + 1.1 + 4.9 - 1.6 + 3.9 + 9.1 + 7.8 + 8.2 1967--January 2/ February 2/ March 2/ +17.1 +13.8 +22.7 +26.0 +18.6 +27.6 +13.5 +14.3 +15.3 +12.7 + 9.0 +17.0 +16.1 +15.0 +15.3 +18.1 +19.3 +15.3 - 4.9 + 5.7 +16.9 - 9.1 + 5.5 +20.0 + 1.5 - 1.7 + 6.1 + 4.8 + 9.3 - 2.2 +10.2 +11.2 +13.7 + 1.9 +14.4 +15.0 - 4.9 +13.9 - 7.2 +16.2 April 2/ May 2/ p " Inciudes aLL Ueposits subject to reserve requiremencs. movements in - 4.9 - 7.2 0.9 7.3 8.1 4.6 movements in this aggregate correspond closely witn total member bank credit. p - Preliminary. 2/ Changes in reserves, total deposits, and time deposits have been adjusted for redefinition of time deposits effective June 9, 1966. Changes in reserves have been adjusted for increases in reserve requirements in July and September 1966, and reduction in reserve requirements in March 1967. c - Correction. Chart 1 MEMBER BANK RESERVES MONTHLY AVERAGES BILLIONS OF 24.0 OF DAILY FIGURES DOLLARS, SEASONALLY ADJUSTED - T OTAL RESERVES 23.5 REQUIRED RESERVES 23.0 22.5 RESERVES- NONBORROWED 22.0 21.5 21.0 BILLION S OF DOLLARS 1.5 1.0 MEMBER BANK BORROWINGS a 0 E~X~CE~SSRE .5 EXCESS I 0 I RESERVES I now I I I I S 1965 1966 1967 Chart 2 MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF DOLLARS 260 I 256 252 248 244 240 236 LIABILITIES TO OVERSEAS BRANCHES [WEEKLY REPORTING BANKS) NOT SEAS ADJ, WEDNESDAYS III S 1966 I II II I I I I 1967 II II Chart 3 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS BILLIONS OF DOLLARS 180 175 SUPPLY MONEY 170 165 160 TIME DEPOSITS ADJUSTED (All Commercial Banks) 155 150 145 140 135 i 130 125 - I 20 CD'S iNGT 15 10 SI S 1965 D M J 1966 S D M J 1967 *CHANGE IN SERIES Chart 4 DEMAND SEASONALLY AND CURRENCY DEPOSITS ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES CURRENCY U.S. OUTSIDE BANKS GOVT. DEMAND DEPOSITS (Member '^Vw Banks) - ' -V 1 i 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 Gold Currency Technical Federal Reserve Gold credit (excl. k outside factors stock float) 1/ banks net 2/ Period Period = Change in total reserves = Bank use of reserves Required Excess Excess reserves reserves 3/ ACTUAL Year: 1965 (12/30/64 1966 (12/29/65 - +4,035 +3,149 -1,602 627 -2,143 -2,243 + + +1,099 +1,034 - 253 51 + 202 12 3 10 17 p 24 p 31 p + + + 533 256 368 106 221 + 1 + + - 7 p 14 p + - 228 420 1967--June 21 28 + 275 585 July 5 12 19 26 + + + Aug. 2 + 12/29/65) 12/28/66) Year-to-date: (12/29/65 - 6/15/66) (12/28/66 - 6/14/67) Weekly: 1967--May June +1,089 +1,085 +1,188 +1,111 - 99 26 -1,392 -1,949 - 750 955 - 752 886 + - 2 143 500 136 125 41 + + - 153 35 193 316 199 + - 238 210 39 297 19 + - 79 134 104 226 67 + + + 159 76 65 71 48 - 436 118 + + 334 565 + + 125 27 + + 153 2 + 28 25 --- + + 125 210 + - 475 805 + - 325 10 + - 325 10 825 240 755 375 ----- -585 320 + 305 205 + + + - 120 120 480 280 + + + + 120 40 30 300 + + + + 120 40 30 300 220 -- - - 365 - 165 - 165 -+ 1 1 --- - 1 798 805 PROJECTED- 1/ 2/ 3/ 4/ For restrospective details, see Table B-4. For factors included, see Table B-3. For required reserves by type of deposits, see Table B-2. See reverse side for explanation of projections. 20 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) S required Period Supporting private deposits Supporting U. S. Gov't. U.S. Gov't. Sdemand reserves deposits Other than Other than Seasonal changes Total Demand seasonal changes Demand Time Time ACTUAL Year: 1965 (12/30/64 1966 (12/29/65 - 12/29/65) 12/28/66) Year-to-date: (12/29/65 - 6/15/66) (12/28/66 - 6/14/67) +1,277 +1,194 + - 115 14 - 4 4 +499 5 + 677 +1,221 1/ -385 -426 - 367 460 - 866 910 +100 +104 +229 +622 + - 170 27 79 134 + 85 +150 - 6 284 - 197 273 --- +171 - 32 + + 20 21 104 226 -164 - 24 + - 60 202 - 178 269 +217 + 43 + + 16 20 +1,188 +1,111 - - 752 886 + - 89 87 Weekly: 1967--May 3 10 17 p 24 p - 31 p - 67 -215 + 148 - 19 -- +139 + 28 June 7 p 14 p + + 153 2 -213 -156 + + 366 158 + + 244 205 --- +102 - 68 + + 20 21 1967--June 21 28 + - 325 10 +350 + 75 - 25 85 -265 +300 + + 10 10 5 12 19 26 + + + + 120 40 30 300 -100 - 35 -160 +480 + + + - 2 - 165 -185 + + + 5 4 PROJECTED July Aug. 1/ 2/ + 220 75 190 180 + + - 150 155 -- 20 5 + -- + + + - 60 75 15 45 + + + + 20 2r 2, 20 20 + 65 - - 60 + 20 Reflects reserve requirements changes in July and September 1966. Reflects reserve requirements changes in March 1967. p - Preliminary. 5 5 + 235 -400 140 -- 5 / Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Technical factors ft (net) I Foreign deposits and gold Treasury operations --- (Sign Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +294 +673 Year-to-date: (12/29/65 - 6/15/66) (12/28/66 - 6/14/67) Weekly: 1967--May June -1,392 -1,949 - 97 - 7 nonmember deposits and F. R. accounts on -171 + 64 + 77 - 30 +598 -904 -1,397 - 11 + 37 -380 -582 3 10 17 24 31 -109 +146 +102 -114 +230 7 14 +137 +271 +171 + 60 -605 +315 -200 - 52 - 57 +128 + 20 -382 - 8 - 16 + 22 + 98 + 16 - 38 - 59 -222 - 37 - + 27 - 10 1 +235 + 59 PROJECTED 1967-- June 21 28 July Aug. + 475 - 805 5 12 19 26 - 120 + + 120 480 - 280 -120 +100 +350 -280 2 - 365 -365 + 5 + 95 + 20 +130 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 Reserve credit Period _(Excl. float) U.S. Government securities Total Bils Repurchase I holdings agreements Federal Agency Bankers' acceptances Member banks borrowings Securities__________ Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +4,035 +3,149 +3,916 +3,069 +3,145 +2,158 +916 +474 -145 +437 + 26 + 77 + 52 + 42 + 2 Year-to-date: 12/29/65 - 6/15/66) 12/28/66 - 6/14/67) +1,099 +1,034 + 807 +1.675 + 715 +1,792 +255 +541 -163 -658 - + 50 -110 +242 -505 Weekly: 1967--Apr. + + 21 + 95 +113 + 10 - 70 - 10 + 4 + 12 + 45 - 35 -127 + 1 + 5 2 - 16 + 33 + 23 - 80 +253 +163 -157 -300 + 69 + - 5 5 3 + 42 - 5 + 36 - 42 - 20 - 27 + 60 + 15 + - + 24 - 25 - 34 5 12 - 19 26 May June 402 S 22 67 + 156 3 10 17 24 31 + + 533 256 - 368 106 + 221 7 14 + 228 - _____________________________________ -I 420 209 14 48 210 197 174 226 185 34 +102 + 93 125 315 + 87 + 42 - 84 26 2 2 - 27 - 71 - 73 + 52 Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) Total Period reere reserves Required reserves Nonborrowed reere reserves oainst Total Total private deposits Dmn 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 1/ 23,139 23,217 23,274 23,530 23,536 23,539 23,763 23,363 23,492 23,297 23,262 23,283 22,701 22,759 22,671 22,877 22,878 22,862 22,997 22,695 22,700 22,566 22,674 22,695 22,788 22,844 22,896 23,123 23,163 23,193 23,355 23,067 23,064 23,042 22,896 22,990 22,075 22,084 22,269 22,477 22,453 22,582 22,515 22,517 22,597 22,430 22,383 22,522 16,364 16,356 16,510 16,625 15,534 16,626 16,472 16,428 16,497 16,352 16,321 16,411 1967--January 1/ February 1/ March 1/ April 1/ May 1/ p 23,614 23,886 24,337 24,368 24,334 23,187 23,546 24,087 24,209 24,306 23,248 23,526 23,825 24,009 23,965 22,525 22,733 23,069 23,059 23,306 16,317 16,421 16,682 16,585 16,760 p - Preliminary. 1/ 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 Monthly billions,based on monthly averages of daily figures) Total member bank deposits (credit) / Time deposits Private demand deposits 2/ U.S. Gov't. demand deposits 19 65--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/ 238.0 238.7 239.8 242.9 243.9 244.8 246.9 246.2 246.1 245.5 244.4 245.2 121.8 122.1 122.8 124.8 126.2 127.0 128.9 129.8 130.1 129.6 129.3 130.3 111.7 111.6 112.7 113.5 112.9 113.5 112.4 112.1 112.6 111.6 111.4 112.0 4.5 5.0 4.3 4.7 4.8 4.3 5.6 4.2 3.5 4.3 3.7 2.9 248.5 251.6 254.8 257.7 258.1 132.4 134.6 136.2 138.0 139.6 111.4 112.1 113.9 113.2 114.4 4.8 4.9 4.8 6.4 4.1 3/ 3/ 3/ 3/ May 3/ p 1967--Jan. Feb. Mar. Apr. 1/ 2/ Includes all deposits subject to reserve requirements--i.e., the total of time, private demand, and U.S. Government demand deposits. Movements in this aggregate correspond closely with movements in total member bank credit. Private demand deposits include demand deposits of individuals, partnerships and corporations and net interbank balances. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. TABLE C-2a DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER banKS Seasonally adjusted (Dollar amounts in Week ending: billions,based on weekly averages of daily figures) Total member bank deposits Time deposits (credit 1/ Private demand U. S. Gov't. demand deposits 2/ deposits 25 247.3 247.7 247.8 249.2 131.4 131.7 132.1 132.9 112.6 111.6 111.4 110.5 Feb. 1 8 15 22 250.3 251.4 251.4 251.6 133.7 134.0 134.5 134.9 111.1 111.7 111.5 113.0 Mar. 1 8 15 22 29 252.0 252.5 254.0 256.2 256.5 134.9 135.5 136.2 136.5 136.8 112.6 112.9 113.9 113.9 114.2 Apr. 5 12 19 26 256.4 257.6 257.6 258.3 137.1 137.7 138.0 138.3 114.7 114.0 113.0 111.8 May 3 10 17 24 31 258.4 258.5 258.4 257.4 258.0 138.6 139.1 139.5 139.8 140.3 112.9 112.9 114.5 7 14 259.0 260.0 140.8 141.3 116.5 116.0 1967--Jan. 4 11 18 June 114.9 115.8 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/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. 3/ 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) Money Supply Monthly Currency / Private Demand Time Deposits Deosits 2/ LI.._____ ______________________________Deposits 1965--January February March April May June July August September October November December 159.7 Adjusted 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/ December 3 168.0 168.2 169.3 170.9 170.2 171.1 169.6 169.6 170.5 169.6 169.2 170.3 36.6 36.8 36.9 37.2 37.3 37.4 37.7 37.8 37.9 38.0 38.0 38.3 131.4 133.7 132.3 133.7 132.9 133.7 131.9 131.8 132.6 131.7 131.2 132.1 147.8 148.5 149.5 151.4 153.0 154.5 156.5 157.8 158.2 157.9 158.0 159.2 1967--January 3/ 169.6 170.4 172.8 172.1 174.1 38.5 38.7 38.9 39.0 39.2 131.1 131.7 133.9 133.1 134.9 159.8 February 3 March 3/ April 3/ May 3/ p _____ 1/ 2/ 3/ 1 1 c 161.7 164.3 166.4 168.4 170.5 44 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. c - correction. TABLE C-3a MONEY SUPPLY AND TIME DEPOSITS AT ALL COMMERCIAL BANKS Seasonally Adjusted (Dollar amounts in billions, based on weekly averages of daily figures) Private Week Ending Money Supply Currency I Time D sts Time Deposits Demand D/ Deposits 2/ adjusted 4 11 18 25 170.8 170.2 170.3 168.9 38.4 38.6 38.5 38.4 132.4 131.6 131.8 130.5 160.5 160.9 161.3 162.2 1 168.7 169.6 169.9 171.8 38.5 38.7 38.8 38.8 130.2 130.9 131.1 133.1 163.1 163.5 164.2 164.8 38.7 38.9 39.0 39.0 39.1 132.3 133.0 134.1 133.6 134.5 165.0 165.5 15 22 29 171.0 172.0 173.1 172.6 173.6 Apr. 5 12 19 26 173.4 173.0 171.6 170.8 38.9 39.1 39.1 39.0 134.6 134.0 132.6 131.8 167.6 168.2 168.6 168.8 May 3 10 17 24 31 172.2 172.6 174.7 174.8 175.1 39.1 39.2 39.1 39.2 39.2 133.2 133.4 135.6 135.6 135.9 169.2 169.8 170.3 170.7 171.3 June 7 14 175.4 176.0 39.3 39.4 136.1 136.6 172.0 172.7 1967--Jan. Feb. 8 15 22 Mar. 1 8 166.3 166.7 167.1 B 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 of Federal Reserve Banks. Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. 

Federal Reserve (1967, June 19). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19670620

@misc{wtfs_bluebook_19670620,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1967},
  month = {Jun},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19670620},
  note = {Retrieved via When the Fed Speaks corpus}
}