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) December 8, 1967. MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments Treasury bill rates have changed little, on balance, since the interim meeting of the FOMC on November 27, but some other shortterm rates, including yields on bankers' acceptances and finance company paper, have adjusted up somewhat further. Since the mid-November devaluation of sterling and U.K. and U.S. discount rate increases, to ½ of a percentage short-term market rates in general have moved up 1/8 point. The 3-month Treasury bill has recently been trading around 4.90 per cent--compared with 4.67 per cent on November 17--while yields on the 6-month and 1-year bills were recently around 5.45 and 5.65 per cent respectively. In long-term markets, municipal yields have risen since devaluation; yields on prime corporates have shown little net change on balance; and yields on longer-term U.S. Government bonds have dropped somewhat. The structure of short-term market rates has still permitted major banks to compete for CD's,but they have had to offer increasingly shorter maturities at the 5-1/2 per cent ceiling. Banks sold, net, about $1 billion of new CD's in November, with about half of the sales in the second half of the month after the rise in discount rate. The extent of bank activity in the CD market probably reflects in part efforts to hedge against any reduced availability of Euro-dollars, as FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, where available, weekly averages of daily figures) Flow of Reserves. Bank Credit and Money I Bond Yields arket Indicators BorrowFederal 3-month Corporate MuniciNonTotal Bank Money Time Deposits Credit Supply Reborrowed pal New U.S. Funds Treasings teserves (In millions Rate ury Gov't. Issues (Aaa) Reserves serves Proxy 21 of dollars) Bill (20 yr) (Aaa) I/ (I o (In billions of dollars) dolars) (1n tllions 2 dolr Money Free Period 1966--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 1967--Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. p - 59 42 172 199 275 257 311 270 252 212 219 476 366 196 150 94 88 132 86 82 141 124 4.87 4.99 4.50 4.03 3.94 3.97 3.78 3.88 3.99 3.87 4.14 4.72 4.56 4.26 3.84 3.60 3.53 4.20 4.26 4.42 4.55 4.72 4.51 4.61 4.56 4.64 4.90 4.99 5.01 5.12 5.16 5.36 5.66 5.43 5.18 5.31 5.38 5.62 5.79 5.78 r/5.86** r/5.85** 6.08 6.50 3.50 3.38 3.47 3.50 3.71 3.80 3.86 3.78 3.81 3.88 3.99 +475 +325 +555 + 92 + 96 + 95 +307 +291 + 96 +250 +195 p p r p 211 198 343 90 255 228 80 132 162 127 119 87 3.95 3.94 4.08 4.02 4.47 4.30 6.12 6.37** 6.53 -6.50 6.55 3.92 3.97 3.99 4.03 4.03 4.15 Year 1966 Second Half 1966 Half 1967 First -283 -338 153 672 763 222 5.06 5.39 4.38 5.49 4.54 5.61 4.62 5.74 4.62 5.69 4.75 5.63 4.88 5.78 4.95 Avera es 4.77 4.85 4.87 5.12 4.70 4.09 5.41 5.74 5.45 3.67 3.83 3.56 245 280 239 110 123 106 4.00 3.85 3.95 3.66 4.17 4.55 5.63 5.83 6.11 3.68 3.82 3.90 1967--Nov. Dec. 1 8 15 22 29 6 Recent variations in growth Mar. 29-June 28 Jun. 28-Aug. 16 6 Aug. 16-Dec. 1/ 2/ 3/ * p r - 4.83 5.05 5.37 + 0.8* - 1.3* +15.0 (Seasonally Adjusted) -- 59 - 0.6 + 0.3 - 16 + 0.4 +359 +218 +415 + 49 8 +164 +223 +269 +193 +311 +139 + + + + + + + + + + + 3.3 3.3 3.0 2.1 1.2 2.0 3.2 3.7 2.3 2.7 1.9 + + + + + + + + + 0.1 1.2 1.6 0.3 1.6 1.7 1.7 1.2 0.1 1.0 1.1 + 0.7 + 0.9 + 1.0 + 0.5 -- 0.2 + 0.8 - 0.2 - 0.5 + 0.8 + 1.1 Annual rates ot increase J/ + 3.7* + 2.2 + 1.2* + 0.3* - 0.2 - 2.3* + 6.8 +12.1 +10.7 +18.8 +19.4 + 9.9 Includes issues carrying 5-year and 10-year call protection; ** issues carry a 5-year call protection. Time deposits adjusted at all commercial banks. 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. Preliminary. Decemb er 8, 1967. Revised. + 6.9 +11.8 + 4.9 - 0.3 + 1.3 + + + + + + + + + 2.2 2.6 2.6 2.0 1.9 '.5 4.2 2.5 1.7 1.9 1.8 + 0.5 + + + + 0.6 0.6 0.3 0.6 + 8.8' + 6.5 +17.3 +14.3 +18.4 +12.2 -2- CONFIDENTIAL (FR) December 8, 1967. well as the continued desire to obtain whatever funds are available under prevailing ceiling rates and thus to maintain short-term investment portfolios in the event of some near-term pick-up in loan demand. With sales of CD's maturing in less than 3 months during November continuing to account for an increasing share of total sales, the volume of maturities in December has reached a new high monthly total of $5.9 billion. January maturities have already risen to $4.5 billion, and are likely to rise further. The availability of Euro-dollars does not appear thus far to have been seriously constrained since devaluation, although banks appear generally unwilling to pay the higher rates that have emerged for longer-term maturities. Any more than seasonal tendency for foreign funds to flow out of the Euro-dollar market following devaluation appears to have been cushioned by official operations that have encouraged a continued availability of dollars from continental commercial banks. Daily average liabilities to foreign branches of major New York banks declined only about $200 million from the statement week prior to devaluation to the latest week ending December 6. With CD's building up and Euro-dollars relatively well maintained, major New York banks moved into a small basic reserve surplus in the last half of November and remained close to balance in early December. As a result, demand pressures on the Federal funds market were relatively moderate. The funds rate had averaged a shade under 4½ per cent in the last statement week of November and was closer to CONFIDENTIAL (FR) December 8, 1967. -3- 4¼ per cent in the first statement week of December, a double settlement week. Dealer financing costs at New York banks followed the same pattern, retaining their normal, small spread above the Federal funds rate. As the new statement week opened, the Federal funds and dealer loan rates moved up into a somewhat higher range. Free reserves have averaged around $240 million and member bank borrowings $105 million in the two latest statement weeks. This compares with average free reserves of $210 million and member bank borrowings of $125 million in the preceding 4 weeks. In November, total reserves rose at a 7 per cent annual rate, supporting an 8.5 per cent growth in the bank credit proxy (9.5 per cent after including Euro-dollar borrowings). Expansion in the proxy last month was down from a growth rate averaging 11 per cent in the previous two months and 13.5 per cent in the first eight months of the year, as loan demands remained moderate and banks reduced holdings of U.S. Government securities while maintaining purchases of municipals. The slower rate of growth in total deposits includes a decline during November in U.S. Government deposits, which had increased substantially in the preceding two months in reflection of the sizable late August and early October cash financings. With Government deposits declining in November, growth in private demand deposits and money supply accelerated to 8.5 per cent and 7.5 per cent annual rates, respectively. Despite the large November increase in outstanding CD's, growth in total time and savings deposits, at a 12 per cent annual rate, CONFIDENTIAL (FR) -4- December 8, 1967. remained near the September-October average, as inflows of other time and savings deposits slowed appreciably, especially following the issue of attractive new Treasury notes at mid-month. Prospective developments The slowing in the rate of bank credit expansion which has been evident since late summer is expected to continue through December, assuming no significant change in money market conditions or credit demands from those currently prevailing. Such conditions include a Federal funds rate around the discount rate, net free reserves in a $100 - $300 million range, and member bank borrowings in a $75 - $150 million range. Wide fluctuations in money market variables could develop in light of mid-month tax date pressures and year-end fund movements related to domestic and foreign window-dressing operations. The money market impact of these basically seasonal factors could be accentuated if high interest rates in the U.K. and restoration of confidence in sterling result in an accelerated reduction in Eurodollar borrowings by U.S. banks, who, in turn, would be led either to bid even more aggressively for CD's and Federal funds or to liquidate Treasury bills and other short-term assets. Barring a sharp constriction in Euro-dollar funds, the 3month Treasury bill rate is likely to remain in a 4.80 - 5.10 per cent range over the next four weeks. While money market adjustments by banks could put upward pressure on bill rates, demands for liquid -5- CONFIDENTIAL(FR) December 8, 1967. assets by investors and by borrowers reinvesting capital market proceeds have been relatively strong in recent days, and may continue to exert a moderating impact on bill rates. The Treasury is likely to announce, in either late December or early January, a tax bill financing of around $2 billion for payment in mid-January. Given these short-term market conditions, the bank credit proxy in December is expected to rise in a 2-5 per cent annual rate range. Business loan expansion may well be expected to be stronger in the weeks ahead than in recent months, as the pick-up in business activity following the settlement of major strikes continues. But given the relatively large $1.2 billion of CD's that mature on the tax date, it is expected that banks will not be able to avoid an attrition in outstandings of at least $500 million over the month, and some market participants appear to be braced for a considerably larger attrition. Moreover, it would appear that outstanding Euro-dollar borrowings through foreign branches may well decline further, at least through year-end on seasonal grounds. The recent reduction in domestic banks' liabili- ties to overseas branches would be equivalent to a one percentage point cut in bank credit expansion in December (reducing growth in the bank credit proxy, adjusted for such borrowings, to a 1-4 per cent, annual rate, range). In January, bank credit expansion is likely to be larger than in December, as banks help underwrite the anticipated sale by the Treasury of June tax bills and as increased business inventory accumulation raises CONFIDENTIAL(FR) loan demands. -6- December 8, 1967. Moreover, if the current structure of short-term market rates continues to prevail, it is assumed that banks will not lose CD's on balance in January when they may find a fairly ready market on the part of corporations for March and April tax period maturities. But it should be recognized that both the December and January bank credit outlook are subject to considerable uncertainty because the closeness of key short-term market rates to Regulation Q ceilings means that year-end or other temporary influences on money markets have the potential for marked impacts on bank deposits and credit. In December, total time and savings deposits are projected to rise in an 8-11 per cent annual rate range, somewhat lower than in November because of the CD attrition assumed. Time and savings deposits other than CD's are expected to increase in December at a slightly faster rate than in November, when these deposit inflows were moderated by competition from the attractively priced Treasury notes issued then at yields well above the various ceiling rates on time and savings deposits. Such flows, however, might be retarded further in January if consumers take advantage of the interest-crediting period to move into higher yielding market instruments, or to make down payments on consumer durables. The money supply in December is expected to rise in a 4-7 per cent range, largely in reflection of a drop in U.S. Government deposits. With growth in private demand deposits not quite offsetting the sharp reduction in Government deposits, and with time deposit CONFIDENTIAL(FR) -7- December 8, 1967. growth moderating, total and required reserves are projected to show little or no growth this month. These deposit and reserve flows are expected to be associated with little further change in long-term rates over the weeks immediately ahead in view of the lull in the calendar of new bond issues over that period, but a resumption of the updrift in yields could occur on the basis of a further flow of more buoyant economic news, or increased anticipations of a tightening in monetary policy. Policy alternatives. A firming of money market conditions might include Federal funds averaging 4-5/8 per cent, and sometimes trading above that rate, member bank borrowings generally in a $150 $250 million range, and the net free reserve position of banks in a zero to $150 million range. The attainment of such conditions is likely to be associated with a further upward movement in bill rates, as dealer financing becomes more expensive and especially if expectations of a further rise in the discount rate become prevalent. The 3-month bill might move into a 5 -- 5-3/8 per cent range, with market attitudes about the direction of monetary and fiscal policies and regulatory actions on rate ceilings a key factor in determining emerging rate levels. Long-term rates are also likely to rise somewhat further, particularly if convictions grow that banks will be unable to remain active in municipal and mortgage markets and that nonbank intermediaries will become less able to compete effectively for savings flows. CONFIDENTIAL(FR) -8- December 8, 1967. With a firming of money market conditions such as described above, commercial banks would find it more difficult to replace maturing CD's with even shortest-term issues. Over-all, the attrition of CD's in December may become larger and would be likely to continue into January. There would also be further reductions in net inflows of other time and savings deposits at banks--and also at nonbank financial intermediaries. The reduced availability of domestic time deposit funds to banks, given existing Regulation Q ceilings, would tend to increase the aggressiveness with which U.S. banks compete for Eurodollar funds, thus amplifying rate pressures in that market. If a move toward greater firmness in money markets is achieved gradually, the December bank credit expansion might be only a little lower than projections of expansion under present money market conditions. In January, however, one would not expect much, if any, rebound from the relatively low December bank credit expansion. The expansionary effect on bank credit from bank participation in the January Treasury financing would probably be offset by pressures on banks to withdraw from securities markets as their ability to expand liabilities is further curtailed. Table AMARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Period - Member banks borrowings Excess reserves As revised Free to reserves date Monthly (reserves weeks ending in): As expected at conclusion of each week's open market opeations As first published each week 1966--November December 370 333 605 529 -235 -196 1967--January February March April May June July August September October November p Weekly: 1967--July 5 417 - 59 353 343 476 366 196 150 94 88 132 86 82 141 124 462 643 236 453 353 69 51 54 109 152 574 185 597 295 371 382 473 260 116 91 129 47 46 179 280 253 426 214 332 253 316 302 137 288 211 79 70 106 74 275 336 185 219 293 350 217 25 413 249 561 190 144 145 216 58 269 104 345 132 298 151 378 164 271 186 379 106 1 291 8 15 p 22 p 29 p 330 505 217 80 132 162 127 119 211 198 343 295 262 348 92 408 368 349 369 345 449 356 334 12 19 26 Aug. 2 9 16 23 30 Sept. Oct. 6 13 20 27 386 408 4 11 18 Nov. Dec. 6 p - Preliminary 0 374 I 315 I 87 42 172 199 ' 275 257 317 270 252 212 219 195 403 399 228 188 206 324 319 269 438 258 422 182 90 255 & 168 604 214 417 202 312 233 375 131 240 204 & 228 I 257 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 Aggr e ate s Required reserves Against Nonborroed Demand Total Total Reserves Reserves _____________Deposits Monet ary Var iab 1 e s Total Member Time Money Supply Private Deposits Bank Deposits Total Demand (comm. Tot ( ) (credit) 1/2/ - -banks) 2/ 2/ _ Deposits Annually: 1965 + 5.2 + 4.2 + 5.1 + 2.3 + 9.1 +16.0 + 4.7 + 4.3 1966 + 1.2 + 0.8 + 1.4 + 0.9 + 3.7 + 8.8 + 2.2 + 1.2 Monthly: 1966--Jul. Aug. Sept. Oct. + 8.1 -15.2 + 4.5 - 6.9 + 6.0 -13.0 - 2.0 - 6.4 + - + 5.9 -11.5 - 4.5 - 7.2 + - 9.3 1.0 0.5 4.4 +16.3 + 9.2 + 3.8 + 1.5 + + - + + - 8.1 0.9 1.8 4.5 Nov. - 3.1 + 8.3 - 3.1 - - 3.4 - 0.9 Dec. - 0.9 - 0.7 + 1.8 - 6.7 + 2.0 + 9.8 + 2.1 + 0.9 +19.2 +11.5 +21.6 + 2.5 - 0.4 + 8.4 +11.3 +13.5 + 9.6 +15.3 + 6.8 +26.0 +17.4 +29.4 + 4.7 + 4.9 + 4.9 +15.2 +14.7 + 4.8 +12.4 + 9.6 +14.4 +12.0 +15.3 + 8.1 - 1.2 + 4.8 +16.0 +15.6 + 9.0 +18.0 + 5.6 +14.0 +11.6 + 9.8 + 5.0 - 2.1 - 2.8 415.8 +14.4 + 7.1 +16.0 + 3.3 +16.1 +15.9 +14.3 + 9.9 + 5.6 + 8.8 +15.2 +16.9 +10.3 +11.6 + 8.4 +16.5 +19.3 +19.0 +14.4 +13.5 +17.5 +15.2 +17.1 +11.4 +12.7 +11.9 - 0.7 + 8.5 +11.2 - 2.8 +12.5 +11.7 +11.6 + 8.1 + 0,7 + 6.7 + 7.3 - 2.7 + 9.1 +12.7 - 5.4 +15.3 +13.3 +14.0 +10.4 - 0.9 + 6.9 + 8.6 1967--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. Nov. p iI / Includes ai. uepuosit b su jeL tLo reseLve 4.9 8.4 1.0 3.0 quLre 0.5 s i-n - iJ kme aggregate 4.9 1.4 2.8 2.8 -- 2.3 d l l curre.puuu uJ uacey i WJ.L. h movements in total member bank credit. Changes in reserves, total deposits and time deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. 2/ -Chart 1 MEMBER BANK RESERVES MONTHLY AVERAGES OF DAILY FIGURES I I I I I 1 7 - - BILLIONS OF DOLLARS, SEASONALLY ADJUSTED 1 25.0 24.5 - 24.0 23.5 23.0TOAREEVSaMO* 22.5 NET RESERVES NONBORROWED Sol# BORROWED RESERVES BILLIONS OF DOLLARS 1.0 MEMER M .5 go6 J AN S BOROWNG DM J Sn 9 Chart 2 MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF DOLLARS 286 I I I F I I 1 I I -TOTAL MEMBER BANK DEPOSITS (CREDIT PROXY) SEAS 282 ADJ WEEKLY I I I I AVERAGE OF DAILY FIGURES - 278 - 274 270 266 262 258 - 254 250 246 242 6 LIABILITIES TO OVERSEAS BRANCHES (WEEKLY RI NOT SEAS ADJ, WEDNESDAYS 4 2 0 S 1966 D M J 1967 S D Chart 3 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY I I II I BILLIONS OF DOLLARS II AVERAGES OF I DAILY FIGURES T- 7 I BILLIO I OF BILLIONS OF 190 180MOh 175 185 170 180 165 175 160 170 / 165 TIME DEPOSITS (All 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 I BILLIONS OF DOLLARS AVERAGES OF DAILY FIGURES I -T II I I' MONEY SUPPLY COMPONENTS: CURRENCY OUTSIDE BANKS 35 140---- DEMAND 135 130 DEPOSITS - 125 120 15 U.S. GOVT. (Member DEMAND DEPOSITS Banks) 10 5 0 -- h-N"4~ 1966 1967 I I Table B-1 MAJOR SOURCES AND USES OF RESERVES Period Retrospective and Prospective (Dollar amounts in millions, based on weekly averages of daily figures) Factors affecting sup ly of reserves = Change = Bank use of reserves Federal Reserve Gold Currency Technical in Required Excess credit (excl. o outside factors total reserves reserves 3/ reserves net 2/ banks stock float) / Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +1,089 +1,085 +1,188 +1,111 - 99 26 - 299 -1,794 + + 108 690 + + 390 812 - 282 122 156 + 55 + 10 + + - 10 254 234 131 + + + 39 175 288 157 + 267 - 59 +4,035 +3,149 -1,602 - 627 -2,143 -2,243 + + (12/29/65 - 12/7/66) (12/28/66 - 12/6/67) +2,843 +4 386 - 628 388 -1,807 -1,513 Weekly: 1967--Nov. 798 805 Year-to-date: Dec. 1 + 144 - 29 + 176 - 135 + 8 15p 22p 29p + + + 698 33 66 552 + 71 -1 2 - 656 102 178 25 + + - 81 10 187 502 + + 6 + 495 - 137 - 222 + 73 + - 275 + 460 p 49 79 54 26 208 PROJECTED i/ 1967--Dec. 1968--Jan. 13 + 100 340 - 20 - 845 -- - 20 27 + 885 -- - 250 3 10 17 24 - 30 165 610 245 ----- + + + + 555 55 430 275 - 55 - 55 +1,545 + 680 + 680 - 600 + 35 + 35 + 215 155 140 20 + + 310 265 320 50 + + 310 265 320 50 p - Preliminary For For For See retrospective details,see Table B-4. factors included, see Table B-3. required reserves by type of deposits, see Table B-2. reverse side for explanation. -- Table B-2 CHANGES IN REQUIRED RESERVE COMPONENTS Retrospective and Prospective Seasonal and Nonseasonal Changes (Dollar amounts in millions, based on weekly averages of daily figures) Period Pe d deposits Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) +1,188 +1,111 - 89 87 Year-to-date: 12/29/65 - 12/7/66) (12/28/66 - 12/6/67) + + 390 812 - 1 8 15 p 22 p 29 p + + + - 55 10 254 234 131 6 p + 13 20 27 3 10 17 24 Dec. Total demand reee S Weekly: 1967--Nov. Supporting private deposits Supporting U. S. Gov't. demand Total r d required Other than seasonal hanes seasonal changes Seasonal changes Total Time Demand _ +1,277 +1,194 + - 155 14 - 4 4 328 50 + + 718 862 - 444 397 + + + - 89 102 209 212 83 + + + - 144 112 45 22 48 + + - 103 45 59 59 43 267 - 19 + 286 + + + 55 680 35 + + 255 115 210 + + - 200 565 175 + + 310 265 320 50 + 105 140 115 410 + - 415 125 205 360 - Time Demand + - 499 5 + 677 +1,221 1/ 11 6 + 958 +1,085 +1,136 1/ + 16F '/ + 6 5 16 21 5 + + + - + + + + + 26 10 24 27 18 175 - 5 + + 11 + + - 175 545 305 + 5 5 + + + 15 15 120 + + + 10 10 5 + - 350 145 100 280 + + + + 25 15 25 5 + 30 -135 90 + + + + lb 5 5 5 21 152 112 75 28 105 PROJECTED 1967--Dec. 1968--Jan. 1/ -- Reflects reserves requirements changes in July, September 1966, and 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) Foreign Technical factors (net) Period Treasury operations Float deposits and gold loans ACTUAL (Sign indicates effect on reserves) Year: 1955 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) Year-to-date: (12/29/65 - 12/ (12/28/66 - 12/ Weekly: 1967--Nov. Dec. 7/66) 6/67) 1 8 15 22 29 793 805 + 294 + 673 299 -1,794 + - 531 729 - 135 + 152 + 81 - 6 171 64 - 699 73 + 522 267 460 + + - 453 655 800 1- 53 + 700 + 200 ----- + - 10 - 159 187 + 64 - 502 - + 77 - 30 + + 598 98 - 36 - 17 - 95 + 98 -1,146 275 118 80 290 229 83 + + + 7 34 75 152 276 292 PROJECTED 1967-,Deac 1969--Jan. 13 20 ?7 + - 600 3 10 17 24 + 215 155 140 20 -1,545 260 270 140 20 + 15 -- + 55 190 F + 45 115 -- - ---- - 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 Year: 1965 (12/30/64 - 12/29/65) 1966 (12/29/65 - 12/28/66) Dec. Federal Agency Securities +3,149 +3.916 +3,069 +3,145 +2,158 916 474 -145 +437 +2,843 +4,386 +2,931 +4,970 +2,242 +4,303 439 .,153 +250 -486 + 9 - 15 1 8 15 22 29 + + + 144 698 33 + + + 122 631 15 + + + 122 490 3 +141 + 12 + 14 - 12 - 66 - 32 - 1 - + 552 + 560 + 598 37 - 75 + - 6 + 495 + 497 + 223 149 +125 + vpar-to-date: (12/29/65 - 12/ (12/28/66 - 12/ Weekly: 1967--Nov. U.S. Government securities Total Repurchase agreements holdings 7/66) 6/67) +4,035 a. -. I + 26 31 - - Bankers' acceptances + 77 + 52 Member banks borrowings + 42 + 2 - 97 -108 -461 + 1 + 22 + 52 + 30 1 1 + 1 9 + 21 - 35 - 8 - 32 Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES 1/ Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) 1965--Jul. Aug. Sept. Oct. Nov. Dec. 21,857 21,923 21,869 21,986 21,976 22, 186 21,356 21,417 21,318 21,533 21,589 21,722 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 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 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 1967--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. Nov. p 22,808 23,026 23,441 23,490 23,482 23,646 22,360 22,685 23,240 23,332 23,428 23,523 23,830 24,121 24,217 24,467 24,662 22,442 22,666 22,955 23,110 23,086 23,178 23,488 23,794 23 972 24,332 24,,445 21,803 22,044 22,297 22,293 22,559 22,890 23,049 23,275 23.329 24,450 23,610 16,328 16,478 16,647 16,578 16,786 17,024 17.115 17,246 17,236 17,313 17,410, 1/ 23,869 24,138 24,331 24,642 24.781 June 9, 1966. Reserves have been adjusted for redefinition of time deposits effective 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) Total member Monthly 1965--Jul. Aug. bank deposits (credit) 1/2/ Time deposits Private U.S. Gov't. demand deposits 3/ demand deposits 229.1 230.4 113.6 115.4 108.6 108.8 6.8 6.3 Sept. Oct. Nov. Dec. 231.4 233.5 234.8 236.4 116.9 119.0 120.2 121.2 109.6 110.1 110.5 111.0 4.9 4.4 4.1 4.2 1966--Jan. Feb. Mar. Apr. May June Jul. Aug. Sept. Oct. Nov. 238.0 239.0 239.8 242.2 243.9 244.8 246.7 246.5 246.4 245.5 244.8 121.7 122.0 123.0 124.8 126.1 127.5 128.7 129.7 130.1 129.9 129.3 111.7 112.0 112.6 113.3 113.0 113.3 112.6 112.4 112.4 111.6 111.6 4.7 5.0 4.2 4.1 4.8 4.0 5.3 4.4 3.9 4.0 4.0 Dec. 245.2 130.3 111.7 3.2 1967--Jan. Feb. Mar. Apr. May June Jul. 248.5 251.8 254.8 256.9 258.1 260.0 263.3 132.2 134.4 136.5 138.0 139.4 141.7 143.3 111.4 112.4 113.6 113.1 114.5 116.1 116.7 4.9 5.0 4.8 5.8 4.1 2.2 3.2 267.0 269.3 271.9 273.8 145.6 147.2 148.2 149.8 117.6 117.6 118.1 118.8 3.7 4.5 5.6 5.3 Aug. Sept. Oct. Nov. p 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 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) Total member bank deposits Week ending: (_credit 1967--June Time deposits 1/2/ 22/ Private demand U. S. Gov't. demand deposits 3/ deposits 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 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. 2 265.8 267.0 266.7 266.8 267.0 144.4 145.0 145.4 145.8 146.5 117.2 117.5 117.4 117.6 117.6 4.3 4.4 3.9 3.4 3.0 146.9 147.0 147.2 147.3 118.3 118.3 116.1 117.4 4.1 4.3 27 269.3 269.6 268.8 269.1 Oct. 4 11 18 25 269.7 271.0 273.1 272.3 147.6 148.0 148.4 148.4 118.6 118.9 118.4 117.6 3.6 4.1 6.3 6.4 Nov. 1 8 15 22 29 273.1 273.6 273.4 274.2 273.7 148.9 149.0 149.6 150.1 150.4 117.6 118.9 118.4 118.7 118.6 6.7 5.7 5.5 5.4 4.7 Dec. 6 274.8 150.7 119.4 4.7 9 16 23 30 Sept. 6 13 20 5.5 4.5 p - Preliminary. / 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 of 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) IL Money Supply Monthly 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. Aug. Sept. Oct. Nov. r _____ 1/ Currency 1/ I I 4 Private Demand Time Deposits Adjusted DeDosits 2/ 3/ 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 36.9 37.1 37.3 37.4 37.7 37.8 37.9 38.0 38.1 38.3 131.4 131.6 132.3 133.4 132.9 133.2 132.3 132.4 132.6 132.1 132.0 132.1 147.5 148.3 149.8 151.8 153.4 154.8 156.9 158.1 158.6 158.8 158.5 159.8 170.3 171.5 173.1 172.7 174.5 176.2 177.9 179.1 179.2 180.2 181.3 38.5 38.7 38.9 39.1 39.2 39.3 39.5 39.6 39.8 39.9 131.8 132.8 134.2 133.6 135.3 136.8 138.4 139.6 139.5 140.3 141.3 162.0 164.6 167.2 169.2 171.1 173.6 175.8 178.3 180.0 181.9, 183.7 _____ 40.0 ____ I I 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) Private Week Ending Money Supply Currency 1/ Demand Deposits Time Dep 2/ adjust 7 176.0 39.3 136.7 172.6 14 21 28 176.3 176.4 176.4 39.4 39.4 39.4 136.9 137.0 136.9 173.6 173.7 173.9 July 5 12 19 26 177.6 178.1 177.7 177.8 39.4 39.5 39.4 39.4 138.2 138.6 138.3 138.4 174.6 175.4 175.8 176.1 Aug. 2 9 16 23 30 178.3 178.8 179.2 179.1 179.1 39.4 39.6 39.6 39.6 39.6 138.9 139.3 139.7 139.5 139.5 176.8 177.8 178.2 178.5 179.2 Sept. 6 13 20 27 179.7 180.0 178.0 179.3 39.7 39.8 39.7 39.7 139.9 140.2 138.2 139.5 179.6 179.8 180.2 180.3 Oct. 4 11 18 25 180.3 180.9 180.5 179.6 39.8 39.9 40.0 39.9 140.5 140.9 140.5 139.7 180.7 181.2 182.0 182.3 Nov. 1 8 15 p 22 p 29 p 180.3 181.3 181.3 181.3 181.1 39.8 40.0 40.0 40.1 40.1 140.5 141.3 141.3 141.2 141.0 182.8 182.8 183.4 184.0 184.3 Dec. 6 0 181.9 40.1 141.8 184.9 1967--June 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, December 11). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19671212

@misc{wtfs_bluebook_19671212,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1967},
  month = {Dec},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19671212},
  note = {Retrieved via When the Fed Speaks corpus}
}