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) August 11, 1967. MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments Spurred by large business tax payment financing needs and a sizable Treasury tax bill financing, the pace of bank credit expansion accelerated in June and July and continued relatively high in early August. In July, bank credit (as measured by the daily average bank credit proxy) expanded at a 15.2 per cent annual rate. This was at the top of the 13-15 per cent range for the month projected at the last FOMC meeting. (After including borrowing abroad through foreign branches, bank credit rose by 16 per cent in July). The slightly higher growth rate in bank credit reflected a somewhat longer lasting expansion in private demand deposits than had been projected, as the tax bills banks acquired by crediting tax and loan accounts in the second week of July were sold off more slowly than originally assumed. Time and savings deposits during July expanded in line with projections at a 14.5 per cent annual rate. The money supply, which had been expanding rapidly since the beginning of May, largely in reflection of a sharp decline in U.S. Government deposits, grew 11.5 per cent in July on average. 1/ Most of last month's growth in the money supply occurred early in the month, 1/ The money supply and other deposit and reserve series have been revised to reflect new seasonals and benchmark data, as explained in the appendix to the Green Book. The effect of the seasonal revisions was to add 4 percentage points to the annual rate of growth in the money supply in July (as compared with what it would have been with the old seasonals) and to take away almost the same amount from May and June together. FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, where available, MoneyMarket IndicatorsI Free Borrow- teserves ings (In millions Period Federal 3-month Funds Rate of dollars) 1966--July Aug. weekly averages of daily figures) Flow of Reserves. Bank Credit and MoneN Bond Yields Treasury Bill Corporate MuniciU.S. Gov't. (20 yr.) New Issues pal (Aaa) Non- Total borrowed Reserves Reserves (Aaa)/ (of dollarsl Bank Credit Proxy Money Supply Ti Deposi (In of dofars) doars) billions of (In billions (Seasonally Adjusted) (SERIES REVISED) +154* + 1.9* - 0.7 -290 - 0.2 + 0.2 -359 -374 439 740 5.18 5.45 4.78 4.95 4.84 4.95 5.48** 5.64** 3.77 3.91 +110* -240 Sept. -390 765 5.30 5.36 4.94 5.82** 3.93 - 36 + 84 - 0.1 + 0.4 + 0.7 Oct. -425 766 5.46 5.33 4.83 5.70** 3.82 -116 -131 - 0.9 - 0.4 + 0.2 Nov. Dec. -235 -196 605 529 5.75 5.39 5.31 4.96 4.88 4.76 5.71 5.73 3.78 3.79 +150 - 13 - 59 - 16 - 0.6 + 0.4 -+ 0.3 - 0.3 + 1.3 + 2.2 1967--Jan. + 2.1 + 1.2 - 59 476 4.87 4.72 4.51 5.43 3.50 +475 +359 + 3.3 - 0.1 Feb. Mar. + 42 +172 366 196 4.99 4.50 4.56 4.26 4.61 4.56 5.18 5.31 3.38 3.47 +325 +555 +218 +415 + 3.3 + 3.0 + 1.2 + 1.6 Apr. May +199 +275 150 94 4.03 3.94 3.84 3.60 4.64 4.90 5.38 5.62 3.50 3.71 + 92 + 96 + 49 8 + 2.1 + 1.2 - 0.3 + 1.6 + 2.0 + 1.9 June July p +257 +309 88 132 3.97 3.78 3.53 4.20 4.99 5.01 5.79 5.78 3.80 3.86 + 95 +307 +164 +223 + 2.0 + 3.2 + 1.7 + 1.7 + 2.5 + 2.1 1967--July Aug. 2.6 2.6 12 +574 69 3.98 4.19 4.97 5.74 3.87 + 1.3 + 0.5 + 0.8 19 +185 51 3.45 4.17 4.96 5.76 3.85 + 2.2 - 0.4 + 0.4 26 p +370 54 3.90 4.26 5.05 5.88 3.85 + 0.6 + 0.4 + 0.2 2 p 9 p +175 +324 116 91 3.75 4.02 4.15 4.17 Ave 5.07 5.10 5.82 5.82 3.75 3.75 + 1.2 + 0.2 + 0.7 + 0.1 Annual rates of increase 3/ ages Year 1966 -283 672 5.06 4.85 4.77 5.41 3.67 + 0.8* Second Half 1966 -338 763 5.39 5.12 4.87 5.74 3.83 - First Half 1967 +153 222 4.38 4.09 4.70 5.45 3.56 +15.0 Recent variations in growth July 6-Nov. 16 Nov. 16-Mar. 29 9 Mar. 29-Aug. -346 - 23 +259 732 397 114 5.43 5.01 3.94 5.13 4.70 3.81 4.89 4.64 4.90 5.72 5.36 5.68 3.85 3.57 3.72 1.3* + 0.7 + 0.9 + 1.2* + 3.7* + 2.2 + 8.8 - 2.3* + 0.3* - 0.2 + 6.5 +12.1 + 6.8 +17.3 - 2.1 +12.4 +11.0 - 0.6 + 5.6 + 7.9 . 4.2 +16.4 +15.8 +10.7 I/ Includes issues carrying 5-year and 10-year call protection; ** issues carry a 5-year call protection. 2/ 3/ * p - Time deposits adjusted at all commercial banks. week shown. Base is average for month preceding specified period or in case of weekly periods, the first Changes have been adjusted for redefinition of time deposits effective June 9, 1966. Preliminary. August 11, 1967. CONFIDENTIAL (FR) August 11, 1967. -2- as sizable repayments of banks' business loans did not develop as soon as expected following the bulge in such lending over the June tax period. But beginning after mid-July growth in the money supply leveled off, as considerably larger than usual net repayments of business loans occurred and continued into early August. These demands for credit and money were accommodated almost by a 16 per cent expansion in nonborrowed reserves during July. result member bank borrowings remained relatively low. As a Federal funds and dealer loan rates were mostly at the low end of their recent ranges in the latter part of July, with the Federal funds rate averaging around 3¾ per cent and dealer new loan rates in New York around 4 per cent. In the latest statement week ending August 9, the funds rate has averaged slightly above 4 per cent, and dealer loan rates have moved up some. In the bill market, rates fluctuated fairly sharply in the second half of July, but since then the 3-month Treasury bill rate has tended to stabilize around its mid-July level. month bill was quoted at 4.17 per cent. Most recently, the 3- Longer-term bills have drifted up in yield on balance, partly in reflection of the flotation of the Treasury's new 15-month note, with the 1-year bill most recently at 5.10 per cent. The President's tax message did not elicit any extensive reaction on interest rates in money and capital markets, but may have contributed to the apparent modest lessening of credit market pressures in private capital markets. CONFIDENTIAL -3- FR) August 11, 1967. Member bank borrowings have averaged $78 million during the past four statement weeks, little changed from previous weeks (except for the high borrowings during the week containing the banks' midyear statement date and the July 4 holiday). At the same time excess reserves have averaged $342 million in the past four statement weeks, down from the previous four weeks which included a seasonal bulge in the second week of July. Free reserves averaged $264 million during the weeks since the previous meeting. Prospective developments Credit expansion is expected to slacken during August, with an annual rate of growth in the bank credit proxy of 5-7 per cent expected from the week ending August 2 to the week ending August 30. But for the month on average the bank credit proxy is expected to grow by a 14-16 per cent annual rate, in large part reflecting the carryover effect on the August average of the bank credit growth in July. In the previous Blue Book the bank credit projection for the month had assumed that the Treasury would raise no new cash in connection with the mid-August refunding and that the next cash financing would be in early September. The current bank credit pro- jection for August includes the effect of the Treasury cash refunding with payment date at midmonth, which raised about $300 million of new cash and avoided attrition that we had earlier estimated might be as much as $500 million. In addition, it allows for a $2¼ new cash financing to be paid for at the end of August. billion for This financing may include a note offering, with a coupon attractive to banks. CONFIDENTIAL (FR) -4- August 11, 1967. The new August projection would lead to a July-August average bank credit expansion of 14-16 per cent, as compared with 10-12 per cent shown in the last Blue Book. About half of the difference reflects the different Treasury financing pattern that is emerging. The recent strength in business loans persisted longer than expected, but large repayments have recently developed, as earlier noted. A slower rate of expansion in the money supply is also expected in August, as loan demands are expected to continue quite moderate over the balance of the month. On average in August, money supply may expand at about a 3-5 per cent annual rate, and shows a smaller increase over the course of the month. Time deposits in August are expected to rise fairly sharply at a 16-18 per cent annual rate. Recently there was a larger than anticipated growth in outstanding negotiable CD's, as major banks have tapped both the CD and Euro-dollar market to obtain funds perhaps in part in anticipation of increasing loan demands this fall. Consumer time and savings deposits, as best can be judged from the available data, are still showing strength, although perhaps somewhat less buoyancy than in the spring. With these developments in train for August, maintenance of prevailing money market conditions may be consistent with a more moderate bank credit growth in September than in recent months. Prevailing money market conditions would continue to encompass a Federal funds rate averaging around 4 per cent or below, new dealer loan rates at New York CONFIDENTIAL (FR) -5- August 11, 1967 banks in a 4 1/8 - 4-3/8 per cent range, member bank borrowings generally in a $50-$100 million range, and free reserves averaging $200-$300 million. Such conditions would be consistent with an "even keel" posture, in view of the forthcoming Treasury cash financing assumed to be in the intermediate-term note area, and may keep the 3-month Treasury bill rate in a 4.10-4.35 per cent range. The bill rate may drift up toward the upper end of the range as the September dividend and tax dates approach. Under these conditions, and with basic economic developments generally consistent with staff projections in the Green Book, bank credit expansion in September might be in the order of 7-9 per cent on However, an automobile strike during September could alter the average. outlook for bank loans, depending on its duration and on the companies' ability to stock the dealers with new models before a strike. Strike uncertainty also, of course, affects projections for the money supply and time deposits since it could seriously affect corporate cash flows and personal income. Assuming no strike, or one of brief duration or limited scope, money supply in September is likely to decline by about 2-4 per cent on average. Some further increase in U.S. Government deposits can be expected on average in September, in view of the tax payments during the month and the new cash borrowing just prior to the beginning of the month. A slower rate of growth in time deposits is expected in September. The recent somewhat less buoyant behavior of consumer time CONFIDENTIAL (FR) August 11, 1967. and savings deposits is expected to continue, but more importantly banks are not expected to increase outstanding negotiable CD's to the extent they did in recent weeks. The new Treasury cash offering may provide some competition for time and savings deposits, especially if it is necessary to use a highly attractive 5½ per cent coupon on an intermediate-term security. In addition, corporations may show less interest in CD's in September when their tax payments--including both income taxes and withheld employee taxes--will be somewhat larger than last year and substantially more than in 1965. This credit and money picture for September--with Government and private demand deposits taken together showing little net change-would be consistent with a reduction in the annual rate of expansion in nonborrowed reserves from about 13-15 per cent in July-August to about 3-5 per cent in September. Assuming no significant change in free reserve levels and money market conditions, the System would be providing about $600 million of reserves between now and early September. Sub- sequently the System would be a moderate net seller until late September and early October. The foregoing projections lead to annual rates of increase for key monetary variables since last November, as follows: Dec. 1966 through May 1967 (4 months) (6 months) Nonborrowed reserves Bank credit proxy Proxy, including Euro-dollars June 1967 through Sept. 1967 Money supply Time deposits 9% 12 (12) 14% 11 (10) 6 5 15 16 CONFIDENTIAL (FR) -7- August 11, 1967. The more moderate expansion of bank credit and reserves foreseen for the coming month is not likely in itself to exert upward pressures on long-term interest rates since it basically reflects an expected moderation of private credit demands from their June-July high levels. The tax message has also provided some basis for calming the atmosphere in corporate and municipal markets. However, many uncertainties persist with respect to the timing and ultimate size of tax increases and to the reactions of businesses and consumers to a prospective additional tax bite. Given these uncertainties, as well as those surrounding the strike situation, a shortfall in bank credit expansion below the moderate rates projected for September cannot be ruled out as a possibility. On the other hand, larger than projected bank credit growth could stem from business loan demands associated with a stronger than anticipated turn-around in business inventory policies and somewhat larger than expected tax payments in September. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess reserves Period As Member banks borrowins I revised to Free reserves date Monthly (reserves weeks ending in): As expected at conclusion of each As first published each week 1966--July August September October November December 380 366 375 341 370 333 739 740 765 766 605 529 -359 -374 -390 -425 -235 -196 1967--January February March April May June July p 417 476 366 196 150 94 88 132 - 59 + 42 +172 +199 +270 +257 +309 180 145 178 98 +267 + 81 +300 +148 +339 +154 +312 +169 +300 +184 +305 +171 +271 +266 +281 +277 +279 +345 +260 +261 +288 +264 +343 +262 +291 +291 +264 +284 +325 +198 +304 +290 +339 +229 +292 +168 +604 +214 +417 +188 +319 Weekly: 1967--Apr. May June July 368 349 364 345 441 market opeations 9 5 12 19 26 447 226 3 10 17 24 31 405 329 327 381 134 63 123 50 102 7 14 21 28 331 355 261 431 77 43 91 141 +254 +312 +170 5 462 643 236 353 69 51 54 +109 +185 +370 +152 +597 +195 +403 116 91 +175 +324 +206 +324 12 19 26 Aug. 408 478 246 404 424 2 291 9 415 p - Preliminary +290 +574 week's open TABLE A-2 AGGREGATE RESERVES AND RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) (SERIES REVISED) Re s e rve Total Toa Reserves Ag gregates Required reserves Nonborrowed Reserves Reseres Re Against T Total e Demand D i(credit) Deposits e Monetary Var iables Money Supply Total Member Time Total Member (crBank Deposits Bak Deposits 1/2 - Deposits (comm. 2/ Total .2/ banks)- Private Demand Deposits Annually: 1965 1966 + 5.2 + 1 2 + 4.2 + 0.8 + 5.1 + 1.4 + 2.3 + 0.9 + 9.1 + 3.7 +16.0 + 8.8 + 4.7 + 2.2 + 4.3 + 1.2 Monthly: 1966--Jan. Feb. + 9.3 + 2.3 + 9.8 + 2.4 + 8 0 + 1.1 +12.6 + 6.3 + 8.1 + 5.0 + 4.9 + 6.5 + 7.9 + 2.9 + 8.3 + 1.8 Mar. + 2.7 - 3.8 + 2.7 - 2.2 + 4.0 +12.1 + 6.4 + 6 Apr. May +12.1 + 1.3 + 8.4 - 0.4 + 9.5 + 3.0 + 6.7 + 3.9 +12.0 + 8.4 +16.0 +12.6 + 9.2 - 2.1 +10.u - 4.5 June Jul. Aug. Sept. + 0.2 + 8.1 -15.2 + 4.5 + 0.5 + 6.0 -13.0 - 2.0 + + - - 4.9 + 5.9 -11.5 - 4.5 + + - 4.4 9.3 1.0 0.5 +11.0 +16.3 + 9.2 + 3.8 + + + 2.8 4.9 1.4 2.8 + + + 2.7 8.1 0.9 1.8 Oct. Nov. - 6.9 3.1 - 6.4 + 8.3 - 3.0 - 3.1 - - 4.4 3.4 + 1.5 - 2.3 - 2.8 -- - 4.5 0.9 Dec. - 0.9 - 0.7 + 1.8 - 6.7 + 2.0 + 9.8 + 2.1 1967--Jan. +19.2 +26.0 +14.4 +14.0 +16.1 +16.5 - 0.7 - 2.7 Feb. +11.5 +17.4 +12.0 +11.6 +15.9 +19.3 + 8.5 + 9.1 Mar. Apr. May June Jul.p +21.6 + 2.5 - 0.4 + 8.4 +11.3 +29.4 + 4.7 + 4.9 + 4.9 +15.7 +15.3 + 8.1 - 1.2 + 4.8 +15.5 + 9.8 + 5.0 - 2.1 - 2.8 +16.3 +14.3 + 9.9 + 5.6 + 8.8 +15.2 +19.0 +14.4 +13.5 +17.5 +14.5 +11.2 - 2.8 +12.5 +11.7 ' +11.6 +12.7 - 5.4 +15.3 +13.3 +14 1.7 4.9 8.4 1.0 7.2 0.5 + 0.9 Includes all deposits subject to reserve requirements. 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 time deposits effective June 9, 1966. p - Preliminary. 1/ Chart 1 MEMBER BANK RESERVES MONTHLY AVERAGES OF DAILY FIGURES I BILLIONS OF DOLLARS, SEASONALLY ADJUSTED 25.0 24.5 24.0 23.5 TOTAL 23.0 RESE 22.5 22.0 NET BORRO 21.5 M J 1966 S D M J 1967 S D Chart 2 MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF DOLLARS 286 ---- TOTAL MEMBER BANK DEPOSITS (CREDIT PROXY) SEAS 282 ADJ. WEEKLY AVERAGE OF DAILY FIGURES 278 274 270 --- 266 -- 262 258 254 r- 250 246 - 242 __ 6 __ -- LIABILITIES TO OVERSEAS BRANCHES (WEEKLY REPORTING BANKS) NOT SEAS ADJ, WEDNESDAYS S 1966 D M J 1967 S D Chart 3 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 180 190 175 185 170 180 165 175 160 170 165 TIME (All DEPOSITS Commercial ADJUSTED Banks) 160 155 150 145 25 NEGOTIABLE CD'S (Unadjusted) 20 15 10 J 1966 1967 * CHANGE IN SERIES Chart 4 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 45--_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ MONEY SUPPLY COMPONENTS: 35 130 12 5 120 15 U.S. GOVT, DEMAND DEPOSITS (Member Banks) 10 M J 1966 D M J 1967 D 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. outside factors Period Period banks 1/ _float) = Change in total =Bank use of reserves Required Excess Excess reserves reserves 3/ 798 805 +1,089 +1,085 +1,188 +1,111 753 - 202 206 - 200 184 + + 337 182 31 181 177 306 I 230 + + - + + + - 407 + 129 59 + 188 net 2/ Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +4,035 +3,149 -1,602 - 627 -2,143 -2,243 +1,884 +2,472 - 453 102 - +1,090 + 88 + 2 - 99 26 Year-to-date: (12/29/65 - 8/10/66) (12/28/66 - 8/9/67) Weekly: 1967--July Aug. 5 12 19 26 2 9 PROJECTED 1967--Aug. Sept. For For For See 882 479 - -2,095 - 266 395 283 339 - 780 + + + 241 - + + 181 122 15 37 - - - 245 + 438 - - 2 -2 51 8 + 82 - 133 - 132 + 124 / 16 - 220 -- + 125 - 105 - 200 - 200 23 30 + 150 105 --- + + 65 155 + - 15 280 - 70 20 - 70 20 6 13 20 27 + + 605 170 615 30 ----- + + + 370 10 230 230 + + - 30 230 675 160 + + + + 205 70 290 100 + + + + 205 70 290 100 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) Total required reserves Period Supporting US. Gov't. demand deposits U. S. Gov't. Total Supporting private deposits Other than seasonl han Seasonal changes seasonal changes Demand Time Demand Time (Data reflect revision of seasonal factors) ACTUAL Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +1,188 +1,111 - 89 - 87 +1,277 +1,194 + - Year-to-date: (12/29/65 - 8/10/66) (12/28/66 - 8/9/67) - 200 184 6 + 51 - 194 235 5 12 19 26 p + + + - 306 1 230 59 - 16 - 43 +188 + 69 + + + - 2 p + 82 -162 9 p - 132 + 30 - Weekly: 1967--July Aug. 1 4 4 +499 - 5 + 677 +1,221 1 + 885 -1,012 + 86 + 91 -112 +776 + - 717 10 2 322 44 42 128 + + + - 147 29 88 162 + 10 - 10 + 10 + 6 +145 + 12 - 92 + 11 + + + + 20 13 36 17 244 + 133 - + 77 + 40 162 - 162 - 24 + 24 115 14 - 6 -- PROJECTED 1967--Aug. 16 23 30 - 200 70 20 -250 +120 -105 + + 50 190 85 + + 45 190 60 -- 5 - 10 - 15 - 15 + 15 + + + 20 20 20 Sept. 6 13 20 27 + + + + 205 70 290 100 + 70 -150 - 25 +500 + + + - 135 220 315 400 + + + - 105 220 355 410 - + - + + + + "0 -5 15 20 Reflects reserve requirements changes in July and September 1966. Reflects reserve requirements changes in March 1967. P - Preliminary. 1/ 2/ 5 -+ 25 + 5 15 15 30 15 Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Technical Period factors Treasury (net) operations ACTUAL Float Foreign Other deposits nonmember and gold loans (Sign indicates effect on reserves) deposits and F. R. accounts Year: 1965 (12/30/64 - 12/29/65) + 798 +294 -171 + 77 +598 1966 (12/29/65 - 12/28/66) + 805 +673 + 64 - 30 + 98 Year-to-date: (12/29/65 - 8/10/66) - 753 -230 -389 - 22 -112 (12/28/66 - 8/9/67) -2,095 -512 -1,392 + 15 -206 +152 Weekly: 1967--July Aug. 5 - 266 -208 -177 - 33 12 + 395 + 2 +473 + 6 - 86 19 26 + - 283 339 + 47 -162 +143 -215 + 3 + 10 + 90 + 28 2 9 + 245 438 -178 +477 -193 - 54 + 4 - 16 +122 + 31 16 23 30 + - 105 15 280 -100 + 5 - + 25 +150 -280 --- - 30 -140 -- 6 13 20 27 + + - 30 230 675 160 ----- - 30 +185 +575 -160 PROJECTED 1967--Aug. Sept. - --- -+ 45 +100 -- 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 (Excl. float) Period U.S. Government securities Total s Other Repurchase agreements holdins Federal Agency 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 Year-to-date: (12/29/65 - 8/10/66) (12/28/66 - 8/9/67) +1,884 +2,472 +1,731 +3,010 +1,161 +2,765 +439 +776 +131 -531 - 55 Weekly: 1967--June 227 357 58* 286* 125 315 651 223 + 87 + 42 + 44 +126 + + - +1,090 + 88 - 780 + 241 866 347 682 244 766 346 630 244 + 65 + 35 + 1 - 52 + + 118 118 7 14 21 28 + + + July 5 12 19 26 Aug. 2 9 a 228 420 105 391 181 122 - Member banks + 77 + 52 + 42 + 2 - 83 +236 - 26 -457 + + 2 2 - 25 34 48 50 +212 -284 - 18 + 3 + 62 - 25 +127 29 98 + - 15 84 67 51 Bankers' -- . - * - Includes effect of change in special certificates of +$12 million of the week of June 21, 1967 and -$12 million of the week of June 28, 1967. Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES 1/ Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) (SERIES REVISED) Per iod 1965--Jul. Aug. Sept. Oct. Nov. Dec. 1966--Jan. Feb, Mar. Apr. May June Jul. Aug. Sept, Oct. Nov. Dec. 1967-,Jan. Feb. Mar. Apr. May June Jul. p STotal reserves Nonborrowed serves reserves 21,857 21,923 21,869 21,986 21,976 22,186 21,356 21,417 22,358 22,401 22,452 22,679 22,703 22,707 22,861 22,571 22,655 22,524 22,465 22,449 21,899 22,808 23,026 23,441 23,490 23,482 23,646 23,869 Required reserves Total Aainst private Demand deposits TotalTotal Total Demand 21,488 21,533 21,494 21,645 21,671 21,861 20,626 20,719 20.904 21,073 21,170 21,285 15,921 15,943 16,065 16,147 16,196 16,266 21,943 21,873 22,027 22,020 22,030 22,140 21,900 21,864 21,748 21,898 21,885 22,007 22,028 22,077 22,252 22,308 22,339 22,431 22,274 22,256 22,200 22,142 22,175 21,411 21,464 21,600 21,771 21,782 21,883 21,841 21,842 21,860 21,741 21,716 21,772 16,375 16,413 16,506 16,605 16,562 16,606 16,512 16,473 16,475 16,365 16,364 16,378 22,360 22,685 23,240 23,332 23,428 23,523 23,830 22,442 22,666 22,955 23,110 23,086 23,178 23,477 21,803 22,044 22,297 22,293 22,559 22,890 23,053 16,328 16,478 16,647 16,578 16,786 17,024 17,120 21,318 21,533 21,589 21,722 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 billions, based on monthly averages of daily figures) (SERIES REVISED) Monthly Total member bank deposits (credit) 1965--Jul. Aug. /2/ Time deposits2 Private demand U.S. Gov't. demand deposits 3/ deposits 229.1 230.4 113.6 115.4 108.6 108.8 6.8 6.3 Sept. Oct. Nov. 231.4 233.5 234.8 116.9 119.0 120.2 109.6 110.1 110.5 4.9 4.4 4.1 Dec. 236.4 121.2 111.0 4.2 1966--Jan. Feb. Mar. 238.0 239.0 239.8 121.7 122.0 123.0 111.7 112.0 112.6 4.7 5.0 4.2 242.2 243.9 244.8 246.7 246.5 246.4 245.5 244.8 245.2 124.8 126.1 127.5 128.7 129.7 130.1 129.9 129.3 130.3 113.3 113.0 113.3 112.6 112.4 112.4 111.6 111.6 111.7 4.1 4.8 4.0 5.3 4.4 3.9 4.0 4.0 3.2 248.5 251.8 254.8 256.9 258.1 260.0 263.3 132.2 134.4 136.5 138.0 139.4 141.7 143.3 111.4 112.4 113.6 113.1 114.5 116.1 116.8 4.9 5.0 4.8 5.8 4.1 2.2 3.2 Apr. May June Jul. Aug. Sept. Oct. Nov. Dec. 1967--Jan. Feb. Mar. Apr. May June Jul.p l/ 2/ 3/ 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. Deposits have been adjusted for redefinition of time deposits effective June 9. 1967. Private demand deposits include demand deposits of individual, partnerships and corporations and net interbank balances. TABLE C-2a DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL EMBER BANKS Seasonally adjusted (Dollar amounts in billions, based on weekly averages of daily figures) (SERIES REVISED) Total member Time Private demand bank deposits deposits 2/ deposits 3/ 1/ 2/ (creditl Week ending: 1967--Apr. U. S. Gov't. demand deposits 4.7 5.5 138.1 138.3 113.9 113.5 112.9 112.4 256.0 256.8 257.1 257.4 137.5 137.9 6.0 6.7 May 3 10 17 24 31 257.7 258.0 258.1 257.9 258.4 138.5 138.8 139.3 139.8 140.3 113.1 113.3 114.9 114.9 115.4 6.1 5.9 3.9 3.2 2.7 June 7 14 21 28 259.3 260.2 261.2 259.9 140.9 141.6 141.8 142.1 115.9 116.1 116.2 116.2 2.6 2.6 3.2 1.6 5 260.4 116.9 117.2 116.6 116.7 1.0 1.6 4.0 4.3 117.1 117.0 4.3 4.6 Jul. Aug. 12 261.7 19 26 p 263.9 264.6 142.5 142.9 143.4 143.6 2 p 9 p 265.8 266.5 144.4 144.9 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, 1967. 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) (SERIES REVISED--For internal use only. To be released after publication of August Federal Reserve Bulletin only.) Y Monthly Money Supply Currency 1/ I~~ 1965--Jul. Aug. Sept. Oct. Nov. Dec. 1966--Jan. Feb. March Apr. May June Jul. Aug. Sept. Oct. Nov. Dec. 1967--Jan. Feb. Mar. Apr. May June Jul. p 1/ ' Private Demand I Denosits 2/ - Time Deposits Adjusted 3/ t 162.4 163.2 164.0 165.2 165.7 166.8 35.3 35.5 35.7 36.0 36.1 36.3 127.2 127.8 128.4 129.3 129.6 130.5 137.9 139.8 141.6 143.8 145.5 146.9 167.9 168.3 169.2 170.5 170.2 170.6 169.9 170.1 170.5 170.1 170,1 170,4 36.6 36.7 131.4 131.6 132.3 133.4 132.9 133.2 132.3 132.4 132.6 132.1 132.0 132.1 147.5 148.3 149.8 151.8 153.4 154.8 156.9 158.1 158.6 158.8 131.8 132.8 134.2 133.6 135.3 136.8 138.4 162.0 164.6 167.2 169.2 171.1 173.6 175.7 170.3 171.5 173,1 172.7 174.5 176.2 177.9 36.9 37.1 37.3 37.4 37.7 37.8 37.9 38.0 38.1 38 3 38.5 38.7 38.9 39.1 39.2 39.3 39.5 158.5 159.8 Includes currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. 2/ Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U.S. Government, less cash items in process of collection and Federal Reserve float; and (2) foreign demand balances at Federal Reserve Banks. 3/ 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 weekly averages of daily figures) (SERIES REVISED--For internal use only. To be released after publication of August Federal Reserve Bulletin only.) Money Supply Week Ending Currency 1/ Private Demand 2/ __Deposits 1967--Apr. Time Deposits ad adusted 173.4 173.1 172.6 172.1 39.1 39.1 39.1 39.1 134.3 134.0 133.5 133.0 168.3 169.0 169.5 169.6 May 3 10 17 24 31 172.8 173.0 174.7 174.8 175.6 39.1 39.1 39.1 39.2 39,3 133.7 133.9 135.6 135.6 136.3 169.9 170.4 171.0 171.5 172.2 June 7 14 21 28 176.0 176.3 176.4 176.4 39.3 39.4 39.4 39.4 136.7 136.9 137.0 136.9 172.6 5 12 19 26 p 177.6 178.1 177.7 178.1 39.4 39.5 39.4 39.7 138.2 138.6 138.3 138.5 174.6 2 p 9 p 178.3 178.4 39.4 39.6 138.9 138.8 176.7 177.6 July Aug. 3/ 173.6 173.7 173.9 175.4 175.8 176.0 1/ Includes currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. 2/ Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U.S. Government, less cash items in process of collection and Federal Reserve float: and (2) foreign demand balances of Federal Reserve Banks. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. 

Federal Reserve (1967, August 14). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19670815

@misc{wtfs_bluebook_19670815,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1967},
  month = {Aug},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19670815},
  note = {Retrieved via When the Fed Speaks corpus}
}