Bluebook

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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) October 20, 1967. MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments Thus far in October Treasury bill yields have fluctuated fairly widely, and on balance have risen somewhat further along with most other short-term rates. The 3-month bill reached a peak of 4.70 per cent and declined to just under 4.60 per cent recently, up almost 20 basis points since the beginning of the month, but much of this net rise reflects the change in the maturity date of the bill from December to January. Longer-term bill yields have risen a few basis points since early October. In bond markets, both Treasury and private, upward yield adjustments were more marked, as expectations of a tax increase waned and the corporate calendar began to build up again. In the corporate market, distribution of a number of new issues was slow, and syndicates were terminated with substantial concessions in yield. Interest rates in the intermediate-term sector of the Treasury market also rose in anticipation of the mid-November refunding. Very recently, the re- appearance of investor demand, particularly for corporate issues, has led to some declines in yields in both the corporate and Treasury markets. Market absorption of the recent $4.5 billion tax bill financing was the principal influence on bill rates during the past three weeks, but anticipations of a rise in British bank rate were also a factor. (Bank rate was increased from 5½ to 6 per cent on October 19.) Relatively favorable financing costs to dealers moderated upward bill rate pressures FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE ('lonthlv averaees and, M-nor Free Borrowteserves ings (In millions of dollars) Period where available, Market Indicators F Federal 3-month Funds Treasury Rate Bill Li4 C weekly averages of daily figures) Flon Rnnd ~ields A Corporate Municipal U.S. New Gov't. Issues (Aaa) (20 yr.) (Aaa)l/ Nonborrowed Reserves Reserves. Bank Credit and Money millions dni!r'f (Iv 0 II i .f Total Reserves B an k Bank Money Supply Time Deposits 21 (In billions of dollars) Cr eoy Proxy (Seasonally Adjusted) 0.1 + 84 + 0.4 -131 0.9 - 0.4 765 766 605 529 5.30 5.46 5.75 5.39 5.36 5.33 5.31 4.96 4.94 4.83 4.88 4.76 5.82** 5.70** 5.71 5.73 3.93 3,82 3.78 3.79 p 42 172 199 275 257 311 270 252 476 366 196 150 94 88 132 86 82 4.87 4.99 4.50 4.03 3.94 3.97 3.78 3.88 3.99 4.72 4.56 4.26 3.84 3.60 3.53 4.20 4.26 4.42 4.51 4.61 4.56 4.64 4.90 4.99 5.01 5.12 5.16 5.43 5.18 5.31 5.38 5.62 5.79 5.78 5.89** 5.88** 3.50 3.38 3.47 3.50 3.71 3.80 3.86 3.78 3.81 1967-- Sept. 20 27 308 131 106 74 4.00 4.00 4.46 4.55 5.16 5.22 5.82 5.89** 3.82 3.83 - 0.9 + 0.4 - 2.1 + 1.5 Oct. 4 11 18 277 1-)3 144 145 b 14 5.25 6.07 6.34 3.83 3.83 3.82 + 0.7 + 1.1 216 4.42 4.53 4.63 5.21 378 4.05 4 05 4.00 + 0.8 + 0.5 4 0.2 Year 1966 -283 672 5.06 Aver 4.85 4.77 5.41 3.67 Second Half 1966 -390 -425 1>o6--Sept. Oct. Nov. -215 -196 Dec. 1967--Jan. Feb. Mar. Apr. May June July Aug. Sept. - 59 5.37 tes - 36 -116 +150 - 13 - +475 +325 +555 +359 +218 + 92 + 96 + 95 59 16 +415 + 49 8 +307 +291 +164 +223 +269 +100 +197 0.6 0.4 3.3 3.3 3.0 2.1 1.2 2.0 3.2 3.7 2.3 + 2.3 0.1 1.2 1.6 0.3 1.6 1.7 1.7 1.2 0.2 Annual rates of increase 3/ + 0.8* + 1.2* + 3.7* + 2.2 + 8.8* -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 Mar. 29-June 28 Jun. 28-Aug. 16 Aug. 16-Oct. 18 245 280 271 110 123 103 4.00 3.85 3.95 3.66 4.17 4.44 4.83 5.05 5.19 5.63 5.83 6.00 3.68 3.82 3.81 1.3* - 2.3* + 0.3* - 0.2 + 6.5* +10.7 +12.1 + 6.8 +17.3 +18.8 +19.4 +14.1 + 6.9 +11.8 + 5.5 +14.3 +18.4 +12.0 Includes issues carrying 5-year and 10-year call protection; ** issues carry a 5-year call protection. Time deposits a dIjusted at all commercial banks 3/ Base is change 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. nh On 1Q 7 v^\->s k L LV) L~V 1/ 2/ + 0.3 CONFIDENTIAL (FR) -2- October 20, 1967. as dealers took into position sizable commercial bank sales of the new tax bills. In the process, average dealer bill holdings rose by about $750 million to almost $2.7 billion during the two weeks ending October 18. The System did not make any outright bill purchases in the market after early October, as reserve projections indicated that no sustained reserve supply was needed, but the Desk did make sizable repurchase agreements in the first half of October to counteract dayto-day tendencies toward market tightness. The amounts of such agree- ments outstanding averaged around $400 million per day in the two statement weeks ending October 18. New RP's were made on all but three business days during that period as the Federal funds market showed a tendency to tighten, with trading as high as 4k per cent. During the first two statement weeks of October, the Federal funds rate averaged 4.05 per cent, up a few basis points from earlier weeks, and averaged 4 per cent during the week just past. Financing costs to dealers became slightly more expensive. On the demand side of the Federal funds market, Government security dealer financing demands pressed on the market and the major banks in New York had a greater need for funds as their basic reserve position worsened after early October. This change in position of major banks was in part a seasonal phenomenon, and most recently their position has improved. On the supply side, the availability of funds may have been held back by the somewhat larger than expected expansion in required reserves during recent weeks, particularly at country banks. CONFIDENTIAL (FR) -3- October 20, 1967. With the Federal funds rate drifting up, member banks, particularly large banks, appeared to show a greater inclination to borrow from the System. Member bank borrowings averaged $145 million during the first two statement weeks of October and rose to $215 million in the latest statement week. In addition large banks also increased their borrowings in the Euro-dollar market and raised CD rates particularly on longer maturities. Free reserves averaged $205 million in those first two weeks, but rose to $378 million in the week of October 18 when country banks added large amounts to their excess reserves, as they have in the past during the third week of October. This excess reserve build-up led to some easing of money market rates as these funds moved into the central money market. Prospective developments Setting aside the extremes of recent fluctuations, prevailing money market conditions might be thought of as including a Federal funds rate ranging around 4 per cent; member bank borrowings averaging around $100 million; and free reserves in a $150 - $300 million range. Given these money market conditions, the 3-month Treasury bill rate is expected to remain in a 4.40 - 4.70 per cent range over the balace of October and into the first half of November. Relatively low dealer financing costs should continue to exert some moderating effect on the bill market. In CONFIDENTIAL (FR) -4- October 20, 1967. addition, in the current uncertain financial environment liquidity demands from corporations and others will probably relieve the current market supply of bills. Finally, the Federal Reserve is projected to supply about $700 million of reserves through open market operations during the three statement weeks ending November 16. With prevailing conditions in money and short-term markets, and in light of recent developments affecting the demand for reserve funds by banks, earlier projections for October of the bank credit proxy need to be revised up a bit--from the 10 - 13 per cent average annual rate range of the last Blue Book to a 12 - 15 per cent range (13 - 16 per cent after including the $200 million increase in Euro-dollar borrowings by U.S. banks thus far in October). In addition to Governmental and security dealer credit demands, the expansion in bank credit also reflects a relatively moderate growth in business loans at weekly reporting banks after mid-September following sizable net repayments in earlier weeks. This business loan growth was in good part related to corporate payments of their income taxes and transfers of withheld personal income taxes to the Treasury. Time and savings deposits are anticipated to grow a little more rapidly than earlier expected, perhaps in a 12 - 14 per cent range, and the money supply much more rapidly, in a 7 - 9 per cent range. In November, the rate of growth in the bank credit proxy may be somewhat lower than in October, given the money market conditions specified above, some moderation in over-all credit demands from the October pace (largely because of lower Federal Government borrowing on CONFIDENTIAL (FR) -5- October 20, 1967. average), and banks' continued ability to attract the public's savings. The most likely growth rate at the moment appears to be in a 7 - 10 per cent range, but there are major uncertainties with respect to the magnitude of business credit demands and how much will fall on banks as well as with respect to the amount of new cash the Treasury will raise in the mid-November refunding. Our best guess is that business loans will not show more than moderate strength in the period ahead, but they could spurt if the recent somewhat unsettled conditions in financial markets continue and lead borrowers to anticipate their needs for bank financing as well as for capital market funds. The Treasury may wish to raise as much cash as possible in connection with the mid-November refunding (in which the maturing issues in the hands of the public total only $2.6 billion), perhaps $2 billion or so if market conditions warrant. Our projections allow for $2 billion of new cash, with banks holding part of the net new issues in portfolio and providing security loans to help finance distribution of the other securities. Time and savings deposits are expected to continue to be a principal source of bank credit expansion despite the recent rise in market rates, and may continue to grow in a 12 - 14 per cent annual rate range. However, any further rise in interest rates on competitive instruments, including new attractive issues in the Treasury financing would divert some flows from institutions. While growth in large CD's -6- CONFIDENTIAL (FR) October 20, 1967. outstanding at banks is expected to continue at the moderate October pace, when they are projected to increase by $300 million, banks are likely to have to pay ceiling rates for large blocs of funds with maturities of 6 months or more. Government demand deposits are expected to decline on average, seasonally adjusted, in November, partly reversing their sizable October increase. With Government deposits declining in November, private demand deposits are expected to rise in a 5 - 7 per cent annual rate range, with the money supply growing by 4 - 6 per cent. Expansion of banks' total reserves in November is expected to be in a 6 - 9 per cent range, down sharply from October, as time deposits come to account for the great bulk of the November expansion. The recent apparently greater inclination for banks to borrow, given the widening spread of other short-term rates above the discount rate, may tend to support a somewhat more rapid reserve expansion than would otherwise be the case as the System attempts to keep the level of borrowings from rising. The projections for October and November, and for the two months together, can be summarized as follows: CONFIDENTIAL (FR) Money market variables Fed. 3-month Free Borrow- reserves ings (Mill. dollars) October November to 50 300 around 100 October 20, 1967. -7- funds bill rate rate (Per cent) around 4 4.40 to 4.70 Banking aggregates Bank credit Time Money Total proxy deposits supply reserves (Annual rates of increase) 12-15 7-10 12-14 12-14 7-9 4-6 17-20 6-9 The projected reserve and bank credit expansion is likely to be accompanied by some further rise in intermediate- and long-term rates in the weeks ahead if the Treasury raises substantial amounts of cash in mid-November partly through an issue in the intermediate-term area, unless prospects for fiscal restraint wax instead of wane. While a diversion of funds to new Treasury issues by institutional investors and possibly individuals will exert over-all pressure on capital markets, the sharp recent rise in corporate and municipal bond yields may have brought them to levels already sufficiently high so that they could be partly sheltered from such developments. However, bond markets remain very sensitive, and could be adversely affected by further announcements of large new private issues. Long-term markets could also be put under further pressure as the investors begin to focus on the possibility that the U.S. Government might soon announce an issue of participation certificates to raise further cash. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess raservR Period As Member banks Free borrowins revised to reserves I date Monthly (reserves weeks ending in): As first published each week As expected at conclusion of each 1966--September October November December 375 341 370 333 765 766 605 529 -390 -425 -235 -196 1967--January February March April May June 417 408 368 349 369 345 - 59 334 476 366 196 150 94 88 132 86 82 7 14 21 28 331 355 261 431 77 43 91 141 254 312 170 290 284 325 198 304 290 339 229 292 July 5 12 19 26 46? 643 236 453 353 69 51 54 109 574 185 399 152 597 195 403 168 604 214 417 Aug. 2 9 16 23 30 295 116 91 129 47 46 179 280 253 426 214 206 324 258 422 182 188 319 269 438 202 Sept. 6 13 20 27 332 386 414 205 253 316 308 131 4 11 18 421 278 594 288 275 336 185 298 151 378 219 293 350 217 Oct. 79 70 106 74 144 145 216 July August September p Weekly: 1967--June p - Preliminary 440 35h 371 362 473 260 42 172 199 275 257 317 270 252 277 133 378 week's open market opeations I. 271 186 379 TABLE A-2 AGGREGATE RESERVES AND RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) Ag gregates Reserve Total Reserves Moneta Required reserves Against Nonborroed Nonborrowed Demand s Total Rese Reserves Deposits Total Member Bank Deposits Bank Deposits (credit) (credit) I/ -__-- r y Var Time Deposits (comm banks) ables 2/ Money Supply Private Demand Total, ___Deposits Annually: 1965 1966 + 5.2 + 1.2 + 4.2 + 0.8 + 5.1 + 1.4 -4 2.3 1 0.9 + 9.1 + 3.7 +16.0 + 8.8 + 4.7 + 2.2 + 4.3 + 1.2 Monthly: 1966--Jul. Aug. Sept. Oct. Nov. Dec. + 8.1 -15.2 + 4.5 - 6.9 - 3.1 - 0.9 + 6.0 -13.0 - 2.0 - 6.4 + 8.3 - 0.7 + + 4.9 8.4 1.0 3.0 3.1 1.8 + 5.9 -11.5 - 4.5 - 7.2 - 0.5 - 6.7 + + 9.3 1.0 0.5 4.4 3.4 2.0 +16.3 + 9.2 + 3.8 + 1.5 - 2.3 + 9.8 + + - 4.9 1.4 2.8 2.8 -+ 2.1 + + + 1967--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. +19.2 +11.5 +21.6 + 2.5 -0.4 + 8.4 +11.3 +13.5 + 9.8 +26.0 +17.4 +29.4 + 4.7 + 4.9 + 4.9 +15.2 +14.7 + 5.0 +14.4 +12.0 +15.3 - 8.1 - 1.2 + 4.8 +16.0 +15.6 + 8.8 +14.0 +11.6 + 9.8 + 5.0 - 2.1 - 2.8 +16.1 +13.7 + 7.4 +16.1 +15.9 +14.3 + 9.9 .o, i 8.8 +15.2 +16.4 +10.3 +16.5 +19.3 +19.0 +14.4 +13.5 417.5 +15.2 +17.1 +11.4 - 0.7 + 8.5 +11.2 - 2.8 +12.5 411.7 +11.6 + 8.1 + 1.3 - 2.7 + 9.1 +12.7 - 5.4 +15.3 +13.3 +14.0 +10.4 - 0.9 1/ p 8.1 0.9 1.8 4.5 0.9 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. Chart 1 MEMBER BANK RESERVES MONTHLY AVERAGES OF DAILY FIGURES I I I I I I I BILLIONS OF DOLLARS, SEASONALLY ADJUSTED 25.0 24.5 24.0 23.5 TOTAL 23.0 RESE 22.5 -I--- 22.0 NET BORRO 21.5 M J 1966 S D M J 1967 S 0 Chart 2 MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF DOLLARSI 286 I I I 1--- I I ] I-I l- TOTAL MEMBER BANK DEPOSITS (CREDIT PROXYJ 282 2 SEAS ADJ WEEKLY AVERAGE OF DAILY FIGURES 278 274 270 266 262 258 254 250 246 - 242 6 LIABILITIES TO OVERSEAS BRANCHES (WEEKLY REPORTING BANKS) NOT SEAS. ADJ., WEDNESDAYS 4 2 S 1966 D M J 1947 S D Chart 3 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY A'E- ^t' OF DAILY FIGURES -DOLLA I RIIONS OF DOLLARS BILLIONS BrLIONS BrLLIONS 190 180 MONEY SUPPLY 175 185 170 180 165 175 160 170 165 TIME DEPOSITS (All Commercial ADJUSTED Banks) 160 -- 155 150 I 145 20 CD'S NEGOTIABLE (Unadjusted) 20 10 I 1 I 1 , II I I I M 1966 1967 CHANGE IN SERIES Chart 4 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES T BILLONS OF BILLIONS OF DOLL ARS T- - I 1 I [[ I I 45 MONEY SUPPLY COMPONENTS: 40 CURRENCY OUTSIDE BANKS 35 30 - 140 DEMAND 135 130 t 125 -- DEPOSITS 120 15 U.S. GOVT. DEMAND DEPOSITS (Member Banks) 10 5 0 1966 1967 I - 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 sup ly of reserves Currency Technical Gold Federal Reserve credit (excl. o outside factors k s net 2/ banks float) 1/ Period = Change in total reserves = Bank use of reserves Excess Required reserves es reserves 3/ ACTUAL Year: 1965 (12/30/64 1966 (12/29/65 - 12/29/65) 12/28/66) +4,035 +3,149 -1,602 -2,143 +1,089 +1,188 - 627 -2,243 +1,085 +1,111 +1,832 +3,434 - 530 152 - + + 238 878 + + 501 119 446 + + 114 268 + 60 + 240 - 97 + 112 616 551 283 + 444 + 228 - 238 - 95 + 627 + 311 Year-to-date: (12/29/65 - 10/19/66) (12/28/66 - 10/18/67) Weekly: 1967--September October 916 720 - 148 -1,683 '--t-~-PROJECTED 1967--October November December For For For See t--t 25 - 1 8 15 22 29 6 - 15 180 220 350 130 175 + + - 285 100 95 95 200 - 110 30 + + 190 - 185 + + + 155 + 20 + + + + 290 185 200 385 - + 460 - 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. 1'1* + 365 170 212 721 - 15 70 165 10 - 110 30 70 + 165 + 10 85 + 85 p - Preliminary. - 99 26 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 Perid Period re required Sreqired reser Supporting private deposits _Supporting U. S. Gov't. ,Seasonal demand Total deposits _ Sea Other than seasonal changes l changes c s Demand Time Time Demand ACUTAL Year: + - 115 14 - 4 4 + + 589 513 - 570 587 + + 49 48 59 +1,008 +1,169 + 44 2/ 136 195 + + 196 45 + + 219 367 - -25 - 26 292 + - 3 5 + 311 - 199 - 425 + 6 + 218 + 3 228 95 311 + 90 125 206 + + + 318 30 105 + + + 117 15 117 + - 5 5 6 + + - 184 8 21 + + + 12 12 15 - 15 + 85 - 100 -- + 5 - 120 + 15 1 8 15 22 29 + + 110 30 70 165 10 + + 215 60 165 90 30 + + + + - 105 30 95 75 20 + + - 105 45 60 60 45 + 5 5 15 20 5 + + + + 15 60 30 135 -- + + + + + 20 20 20 20 20 6 + 85 - 120 + 205 + 145 - 5 + 45 + 20 - 89 87 + + 212 721 + 377 208 1967--Sept. 13 20 p + + 60 240 + 27 p + 112 4 p 11 p 18 p + + 25 Nov. Dec. + - + 677 +1,221 1/ +1,277 +1,194 +1,188 +1,111 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) 499 5 Year-to-date: (12/29/65 - 10/19/66) (12/28/66 - 10/18/67) Weekly: Oct. PROJECTED 1 96 7 -- 0ct. 1/ Reflects reserve requirements changes in July and September 1966. 2/ Reflects reserve requirements changes in March 1967. p - Preliminary Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Technical factors Period (net) ACTUAL Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/ ' ' Treasury Treasury Other nonmember deposits and F. R. accounts Foreign deposits and gold loans Floatdeposits operations (Sign indicates effe + + ~i + - 238 399 + --i4 171 64 4 77 30 lear-to-date: 148 - (12/29/65 - 10/19/66) (12/28/66 - 10/18/67) -1,683 - 558 -1,381 + - 20 12 Weekly: 1967--September 781 + + - 134 210 224 4 248 - - 35 77 2 + 648 + 156 - October 4 "40 -4,- 4 3 4 S 2 - 4 4 4 PROJECTED 1967--October November December 25 + 180 - 150 + 200 1 8 15 22 29 + + - 285 100 95 95 200 + 95 + + - 380 100 80 485 200 6 - 185 - 185 + 5 + 125 + 15 - 390 Table B-4 SOURCE OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions of dollars, based on weekly averages of daily figures) _ Period Total Federal Reserve credit v I\Bn~r Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) l f1 LrvQ II Total tr\ I I-. U.S. government securities hliA Ia Other Bills I __Secur I Repurchase Federal Agency a SecuritisPS reement r n Weekly: 1967--September October Member banks borrowings tis +4,035 +3,149 +3,916 +3,069 +3,145 +2,158 +916 +474 -145 +437 + 26 + 77 + 52 + 42 + 2 +1,832 +3,434 +1,669 +3,854 +1,451 +439 +967 -221 -198 + 1 - 81 - 89 +244 -332 475 501 119 446 616 551 283 438 480 152 397 299 393 152 393 + 52 + 87 + - 87 6 6 524 580 219 402 330 4 +122 +237 +223 + 7 -: 20 Year-to-date: (12/29/65 - 10/19/66) (12/28/66 - 10/18/67) I Bankers' acceptances +3,085 + 4 + 13 Cr art Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES 1/ Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) Period Total reserves reserves reserves Aainst private deposits Nonborrowed ~Required reserves Total reserves Total Total Demand 21,857 21,923 21,356 21,417 21,488 21,533 20,626 20,719 15,921 15,943 Sept. Oct. Nov. Dec. 21,869 21,986 21,976 22,186 21,318 21.533 21.589 21.722 21,494 21,645 21,671 21,861 20 904 21,073 2L,170 21,285 16,065 16,147 16,196 16,266 1966--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. Nov. Dec. 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 21 943 21.873 22.027 22,020 22,030 12,140 21,900 -1,864 21,748 21,898 2',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,(4 21,600 21,771 21,782 21,883 21,841 ?1,842 _1,860 2,,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 1967--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. p 22,808 23,026 23,441 23,490 23,482 23,646 23,869 24,138 24,335 2,360 22,685 23,240 23,332 23,428 23,523 23,830 24,121 24,221 22,A42 22,666 22,955 23,110 23,086 23,178 23,488 23,794 23,969 ,803 22,044 22,297 22,293 22,559 22,890 13,053 23,271 23,327 16,328 16,478 16,647 16,378 16,786 17,024 17,119 1965--Jul. Aug. I ' 17,242 17,235 p - Preliminary. 1/ 9, 1966. Reserves have been adjusted for redefinition of time deposits effective June Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasoally adjusted (Dollar amounts in billions, based on monthly averages of daily figures) Monthly Total member bank deposits (credit) 1/2/ Private demand U.S. Gov't. demand deposit 2 deposits 3/ deposits Time e 1965--Jul. Aug. Sept. Oct. Nov. Dec. 229.1 230.4 231.4 233.5 234.8 236.4 113.6 115.4 116.9 119.0 120.2 121.2 108.6 108.8 109.6 110.1 110.5 111.0 6.8 6.3 4.9 4.4 4.1 4.2 1966--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. Nov. Dec. 238.0 239.0 239.8 242.2 2A3 ' 244.8 246.7 246.5 246.4 245. r 244.b 245.2 121.7 122.0 123.0 124.8 126.1 127.5 128.7 129.7 130.1 129.9 129.3 130.3 111.7 112.0 112.6 113.3 113.0 113.3 112.6 112.4 112.4 111.6 111.6 111.7 4.7 5.0 4.2 4.1 4.8 4.0 5.3 4.4 3.9 4.0 4.0 3.2 1967--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. p 248.5 251.8 254.8 256.9 258.1 260.0 263.3 266.9 269.2 132.2 134.4 136.5 138.0 139.4 141.7 143.3 145.6 147.1 111.4 112.4 113.6 113.1 114.5 116.1 116.8 117.6 117.6 4.9 5.0 4.8 5.8 4.1 2.2 3.2 3.7 4.5 1/ 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 MEMBER BANKS Seasonally adjusted (Dollar amounts in billions, based on weekly averages of daily figures) Week ending: Total member bank deposits 1/ S(creditt 1967--Apr. Time deposits Private demand 24 deposits 3 / 2/ U. S. Gov't. demand deposits 256.0 256.8 257.1 257.4 137.5 137.9 138.1 138.3 113.9 113.5 112.9 112.4 4.7 5.5 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. . 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 Jul. 5 12 19 26 260.4 261.7 263.9 264.6 142.5 142.9 143.4 143.7 116.9 117.2 116.6 116.6 1.0 1.6 4.0 4.3 Aug. 2 9 16 23 30 265.8 267.0 266.7 266.8 267.0 144.4 145.0 145.4 145.8 146.5 117.2 117.5 117.4 117.6 117.6 4.3 4.4 3.9 3.4 3.0 Sept. 6 13 20 27 269.3 269.6 268.7 269.1 146.9 147.0 147.1 147.2 118.3 118.3 116.1 117.5 4.1 4.3 5.5 4.4 Oct. 4 11 18 269.8 270.9 273.2 147.6 148.0 148.3 118.5 118.8 118.6 3.7 4.1 6.2 p - Preliminary. 1/ Includes all deposits subject to reserve requirements--i.e., the total 2/ 3/ 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 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) Currency 1/ Private Demand Time Deposits Monthly Money Supply 1965--Jul. Aug. Sept. Oct. Nov. Dec. 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 1966--Jan. Feb. March Apr. May June Jul. Aug. Sept. Oct. Nov. Dec. 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 36.9 37.1 37.3 37.4 37.7 37.8 37.9 38.0 38.1 38.3 131.4 131.6 132.3 133.4 132.9 133 2 132.3 132.4 132.6 132.1 132.0 132.1 147.5 148.3 149.8 151.8 153.4 154.8 156.9 158.1 158.6 158.8 158.5 159.8 1967--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. p 170.3 171.5 173.1 172.7 174.5 176.2 177.9 179.1 179.3 38.5 38.7 38.9 39.1 39.2 39.3 39 5 39.6 39.8 131.8 132.8 134.2 133.6 135.3 136.8 138.4 139.6 139.5 162.0 164.6 167.2 169.2 171.1 173.6 175.8 178.3 180.0 1/ 2/ Deposits / Adjusted 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. 3/ Deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. TABLE C-3a MONEY SUPPLY AND TIM DEPOSITS AT ALL COMMERCIAL BANKS Seasonally Adjusted (Dollar amounts in billions, based on weekly averages of daily figures) Week Boding Money Supply Currency 1/ 173.4 173.1 172.6 172.1 39.1 39.1 39.1 39.1 134.3 134.0 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 7 14 21 28 176.0 176.3 176.4 176.4 39.3 39.4 39.4 39.4 136.7 5 12 19 26 177.6 178.1 177.7 177.8 39.4 39.5 39.4 39.4 2 9 16 23 30 178.3 178.8 179.2 179.1 179.1 6 13 20 27 179.7 180.0 177.9 179.4 4 11 18 180.2 1967--Apr. May June July Aug. Sept. Oct. l/ 2/ p Private Demand Deposits 2/ 180.7 133.5 133.0 135.6 135.6 136.3 136.9 137.0 136.9 138.2 Time Deposits adj 3 adjusted 168.3 169.0 169.5 169.6 169.9 170.4 171.0 171.5 172.2 172.6 173.6 173.7 173.9 138.6 138.3 138.4 174.6 175.4 175.8 176.1 39.4 39.6 39.6 39.6 39.6 138.9 139.3 176.8 177.8 139.7 178.2 139.5 178.5 139.5 179.2 39.7 39.8 39.7 39.7 39.7 39.9 39.9 139.9 140.2 138.1 139.7 179.6 179.8 180.0 140.5 140.8 141.0 180.7 180.2 181.2 181.9 -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. Preliminary, 180.9 

Federal Reserve (1967, October 23). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19671024

@misc{wtfs_bluebook_19671024,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1967},
  month = {Oct},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19671024},
  note = {Retrieved via When the Fed Speaks corpus}
}