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) September 6, 1968 MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments (1) The rise in credit market yields in process around midAugust wasconsiderablymoderated, though not entirely averted, by the discount rate reduction to 5-1/4 per cent initiated on August 15. Credit markets were also calmed by the concurrent reduction in the repurchase agreement rate and modest easing of day-to-day money market rates. In the municipal bond market, however, yields continued to rise rather sharply under pressure from heavy new issue volume. The 3-month Treasury bill rate, which had backed up to 5.17 per cent at mid-August, following its share decline early in the month, for the most part stayed close to its mid-month level, but most recently has traded above 5.20 per cent. (2) Before the discount rate action, Federal funds traded most frequently at an effective rate of 6-1/8 per cent; since then, however, the cost of Federal funds has tended downward to a 5-7/8 per cent level, although a fair amount of trading has taken place at both 5-3/4 and at 6 per cent. In line with this somewhat easier tone in the Federal funds market, dealer loan rates have also moved a little lower, despite the persistence of large daily basic reserve deficits on the order of $1 to $1-1/4 billion at the major New York banks. FINANCIAL MARKET RELATIONSHIPS (Monthly averages and, I -uloney Free AIL tle ku C . LLU.'~'L Borrow- ings eserves (In millions of dollars) Period T^ d, where available, ^*- Treasury Bill 1 1967- Aug. Sept. Oct. Nov. Dec. 1968--Jan. Feb. Mar. Apr. May June July Aug. p 1968--Aug. Sept. 4 p weekly averages of daily figures) d_, Vi -11 U.S. 1,d e.u e DULi. Federal 3-month Funds Rate IN PERSPECTIVE II -- sO Corporate MuniciNew pal Gov' t. (Aaa) Issues (20 yi.) (Aaa)l/ 11 270 252 212 225 143 3.88 3.99 3.87 4.14 4.49 4.26 4.42 4.55 4.72 4.96 5.12 5.16 5.36 5.66 5.59 5.86** 5.85** 6.08** 6.50 6.51 3.78 3.81 3.88 3.99 4.15 +307 +135 +299 +122 -294 142 21 -312 -341 -374 -386 -192 -238 4.60 4.68 5.02 5.74 6.10 6.09 6.03 6.03 5.00 4.98 5.17 5.38 5.66 5.52 5.31 5.23 5.39 5.38 5.59 5.46 5.55 5.40 6.22** 6.25** 6.57** 6.50** 6.64 6.65 6.50 6.16 4.06 4.01 4.28 4.13 4.28 4.26 4.12 4.00 +345 +208 -266 -197 + 46 +137 +304 +493 -369 -260 -116 -207 6.08 6.12 6.02 5.95 4.94 5.05 5.14 5.17 5.16 5.22 5.26 5.27 6.13 6.13 6.13 3.80 4.00 4.05 4.25 -239 5.84 5.19 5.23 6.23 n.a. 5.29 5.22 Recent variations in growth Nov. 29-Feb. 28 Feb. 28-Jun. 12 Jun. 12-Sept. 4 .im. An. osit LLncy Time Deposits 2 - 0.2 + 0.1 + 6.4 + 6.0 + 6.6 +16.1 +12.6 + 5.0 4.08 + 9.1 + 4.0 + 6.1 4.23 4.09 - 1.1 +13.1 + 6.6 + 9.3 + 4.5 +16.4 4.29 4.51 5.29 5.01 5.31 5.46 5.77 6.10 6.47 3.74 3.91 4.16 106 276 4.59 4.90 5.46 6.30 -360 -233 695 571 5.66 6.03 5.43 5.25 5.51 5.28 6.58 6.44 Includes issues carrying 5-year and 10-year call protection, Proxy I +11.9 +10.6 + 4.0 4.19 4.02 5.37 .4 1.. 1/ L -- Annual rates of increase 3/ 173 123 567 195 238 -201 UO -- IL Bank Cret Money SSupply +347 +265 + 47 -189 + 88 +105 +107 +508 Ave-Iges Year 1967 Second Half 1967 First Half 1968 Total Reserves (In billions of dollars) a-? r (Seasonally Adjusted) +285 +159 +335 +154 -122 nI T1 L J Reslves L K .Lu Nonborrowed Reserves * 11 +11.5 + 7.2 + 2.2 + 9.9 + 8.7 + 5.3 1 1L - issues carry a u1-year call protection. ardjuistd at all commercial banks. Base is change for month preceding specified period or in case of weekly periods, the first week shown. n.a. - Not available. p - Preliminary. 3/ September 6, 1968. -2Rates to dealers have most recently ranged around 6-1/2 per cent for new loans, compared with rates more frequently around 6-5/8--6-7/8 per cent earlier in August. (3) With a modest lowering of day-to-day money costs, and with the rise of bill yields from their early August lows, the disparities among short-term rates have lessened. theless, None- dealer financing costs remain generally in excess of Treasury bill yields. Moreover, dealer positions in bills and coupon issues combined still total over $5 billion, down only slightly from mid- August levels, and daily financing needs are running high. (4) Partly because of the pressure of dealer financing needs, but also partly because of expectations of lower interest rates in the months ahead, major money market banks have remained relatively heavy borrowers of short-term funds in the Federal funds and Euro-dollar markets. While these banks have run deep basic reserve deficits, the net borrowed reserve position of all member banks eased somewhat during the past four statement weeks, averaging $205 million, as compared with $260 million during the preceding four statement weeks. Member bank borrowings averaged $505 million and $610 million during the two periods. (5) With banks eager to expand investments--including investments in municipals and in the new Treasury 5-5/8 per cent notes--and with loan demands fairly well maintained, the bank credit proxy grew in August at an average annual rate of about 21 per cent (and 1/2 percentage point more with Euro-dollar borrowings included). -3This growth rate compares with a 16-18 per cent range projected for the month at the time of the last (telephone) Committee meeting. Time and savings deposits expanded at a 21 per cent annual rate, and the money supply by about 5 per cent. (6) The average annual rates of growth of key monetary variables for the past two months following the increase in fiscal restraint and the relaxation of pressure on the banking system are The shown in the table below, in comparison with other recent periods. recent rapid rates of increase in reserve and most other monetary aggregates reflect the combined impact of Treasury credit demands, banks' initial response of quickly rebuilding outstanding negotiable CD's, and the desires of banks and other investors to build up investment portfolios in the expectation that interest rates would decline later. July '68Aug. '68 May '67 Nov. '67 Dec. '67June '68 Total reserves 9.8 3.7 14.3 Nonborrowed reserves 9.9 -0.1 19.0 Proxy 11.5 3.7 15.3 Proxy plus Euro-dollars 12.3 4.7 16.2 8.4 5.8 9.9 14.2 5.8 17.5 9.1 6.2 Bank credit, as measured by: Money supply Time and savings deposits Savings accounts at thrift institutions NOTE: Dates are inclusive. p--preliminary 1/ July only. 4.8p-' Prospective developments (7) Assuming no change from around levels prevailing since the discount rate cut in the cost of one day money, the 3-month Treasury bill rate may fluctuate in a 5.05--5.35 per cent range between now and the next meeting of the Committee. Bill rates may rise into about the third week in September, and then decline, for reasons explained in paragraphs (9) and (10) below. These wide swings in bill rates,should they develop, may also be accompanied by fairly broad movements in other money market rates and conditions. (8) Prevailing levels of 1-day money rates center around 5-7/8 per cent for the Federal funds rate, and 6-1/2 per cent for dealer new loan rates. These rates may be consistent with member bank borrowings in a $400-$600 million range. Excess reserves of banks in this period may vary from their usual pattern as banks begin to adapt themselves to the new lagged reserve requirements, weekly country bank settlements, and permission to carry over reserve excesses into the next statement week--which become effective in the week beginning September 12. Over the long-run, one might expect excess reserves to be reduced further as a result of these innovations, but in the transition period excess reserves could rise as banks cautiously appraise the effects of the new provisions. As a result, there is condiderable uncertainty about the level of net borrowed reserves that is likely to be consistent with other money market conditions. -5(9) The greatest upward pressures on the bill rate are likely to develop in the period around the mid-September tax date. While corporate tax payments are expected to be much larger than a year ago, the Treasury is expected to have to keep its balance at the Federal Reserve at very low levels before these payments are received (with some direct Treasury borrowing from the Fed quite possible). This lower balance, and possible foreign transactions, will add to the need for System absorption of reserves in the two statement weeks ending September 18; in this period the System may have to sell more than $1 billion of securities. (10) The bill market may be especially sensitive to large System bill sales, as well as any further sales by foreign accounts that may develop, because the level of bill inventories in dealer hands remains relatively large, particularly longer-term bills. addition, financing costs remain above current bill yields. In Under these conditions, it may turn out that banks' reserve position would have to be eased temporarily to keep the expected rise in the bill rate from cumulating and, through expectational changes, spreading to other financial markets. However, as the Treasury balance is restored after the mid-month tax date and the System returns to the buy side of the market in the latter part of September, upward yield pressures in the bill market may be relaxed, even with day-to-day money rates and marginal reserve measures returning closer to currently prevailing levels. -6(11) The absence of aggressive bank issuance of CD's in the past week or two has been one factor tending to moderate upward bill rate pressures. Banks are not expected to add substantially further to the already advanced level of outstanding CD's, although they might be spurred to do so if September loan demand proves larger than many banks now expect. The Euro-dollar market may continue to be a relatively attractive alternative source of funds for banks, particularly if the recent speculative flow of funds into Germany is reversed. (12) Even with only modest growth in negotiable CD's after allowing for the usual seasonal decline in September, total time and savings deposits are expected to rise in a 15-18 per cent, annual rate, range in September on average. This rate of growth in part reflects the carry-over effect on the September average of a fairly rapid expansion in time deposits other than large CD's in the second half of August, perhaps partly bolstered by re-investment of cash from redemption of maturing issues in the August refunding. Growth in such time and savings deposits during the course of September, and also October, is expected to be closer to the more moderate July-early August pace. (13) Private demand deposits may show little change on average during the next two months, but continued growth in currency is likely to produce a small increase in the money supply. U.S. Government deposits may show relatively little change on average over the two months. We have assumed a $3 billion Treasury tax bill financing in the latter part of October. -7(14) Given the money and short-term credit market conditions discussed in paragraphs (7) through (10), the bank credit proxy in September is expected to rise in a 7-10 per cent, annual rate, range (and perhaps about 1/2 percentage point more if the figures are adjusted to include liabilities to foreign branches and if these liabilities remain at their end of August level). In October, the bank credit growth rate is not expected to be very different, though perhaps on the high side of the range; obviously, the timing, amount, and character of the Treasury's projected cash financing will influence that month's bank credit growth. (15) As compared with the July-August average, the expecta- tion of more moderate bank credit growth over the next two months is based on the reduced Treasury cash need, some repayment of the current very high level of security loans, and a lessening of business loan demand particularly after the September tax date. At the same time, banksare projected to be large buyers of state and local government securities, given the continued heavy volume of offerings and the recent back-up in yields. The projected moderation in the pace of bank credit growth is not itself expected to contribute to significantly higher long-term interest rates, in part because the reduced growth reflects a reduction in credit demands. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, - Period based on period averages of daily figures Excess Member banks Free reerves borrowings I borrowinas I --meerves As revised to date 4. reserves As expected at conclusion of each week's open markpt operations - - Monthly (reserves weeks ending in): As first published each week 1967--July August September October November December 443 356 334 353 349 333 132 86 82 141 124 185 311 270 252 212 225 148 1968--January February March April May June July August p 417 389 337 348 354 341 331 339 275 368 649 689 728 727 523 577 142 21 -312 -341 -374 -386 -192 -238 8 15 22 29 276 381 400 322 391 674 823 712 669 764 -398 -442 -312 -347 -373 -390 -428 -308 -390 -445 -408 -377 -307 -378 -438 5 12 19 26 208 310 266 578 759 678 664 807 -551 -368 -398 -229 -590 -403 -445 -289 -592 -392 3 10 17 24 31 182 433 274 410 358 493 412 470 639 602 -311 21 -196 -406 - 93 -284 -229 -244 -307 -288 -419 - 96 -312 -315 -319 7 14 21 28 368 316 503 167 737 576 619 374 -369 -260 -116 -207 -381 -306 -109 -234 -353 -292 - 53 -247 Sept. 4 215 454 -239 -239 -196 . Weekly: 1968--May June July Aug. 1 p - Preliminary -375 -337 TABLE A-2 AGGREGATE RESERVES AND RELATED .EASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) gre g a t e s Required reserves Total Against T DBank Reserves l Nonborrowed Total Demand Deposits Reserve A Monetary Total Member Deposits (credit) -- Variables Time Money Supply Deposits Private (comm. Total Demand banks) Deposits Annually: 1966 1967 -/ Monthly: 1967--July Aug. Sept. Oct. Nov. Dec. 1968--Jan. Feb. Mar. Apr. May June July Aug. p ______________ + 1.3 + 9.9 + 0.8 +11.5 + 1.5 +10.2 - 0.2 + 7.0 + 3.8 +11.7 + 8.7 +16.1 + 2.2 + 6.4 + 1.2 + 6.7 +11.8 +14.0 + 7.7 +16.2 + 7.4 - 5.8 +14.9 +15.2 + 6.6 +14.5 + 5.9 -14.0 +15.2 +13.7 +12.0 +16.4 + 6.6 - 1.6 +10.2 +18.7 + 5.7 +13.5 + 8.3 -10.5 +13.4 +16.9 +10.4 +10.7 + 9.3 + 1.3 +15.3 +16.5 +14.9 + 8.0 + 9.3 + 9.9 +12.3 + 7.4 + 1.3 + 7.4 + 5.3 + 2.0 +14.9 + 8.7 +16.6 +16.7 + 9.9 -12.6 - 9.4 + 2.2 + 6.6 +14.5 +23.3 +11.4 +11.4 + 0.6 - 6.0 - 1.9 + 9.6 + 7.7 +21.2 +15.3 +19.2 + 0.1 -11.1 + 1.5 +12.2 + 0.1 + 6.6 +10.0 + 4.3 - 4.7 + 1.7 + 6.5 + 9.0 +21.4 + 3.9 + 7.2 + 9.7 + 2.6 + 3.2 + 3.8 +14.0 +20.8 + 6.6 + 2.6 + 4.6 + 5.9 +11.7 + 6.4 +14.8 + 5.1 + 6.8 + 1.7 + 2.5 + 6.8 +12.6 + 5.0 +17.4 + 3.3 +12.5 + 2.2 - 8.8 + 4.1 + 4.9 + 5.0 +23.5 ________ I +21.9 + 6.9 + 6.8 - 0.9 & Includes all deposits subject to reserve requirements. movements in total member bank credit. Movements in this aggregate correspond closely with 2/ Changes in reserves, total deposits and time deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. 1 MEMBER BANK RESERVES Chart MONTHLY AVERAGES I BILLIONS I OF I OF DOLLARS, 1 DAILY I FIGURES I SEASONALLY I I i i i IT ADJUSTED I I I- I 26.0 TOTAL RESE 25 5 25.0 - 24.5 REQUIRED 24.0 - 23.5 - RESERVES 23.0 22.5 - 22.0 BILLIONS BILLIONS OF DOLLARS, OP DOLLARS, NOT SEASONALLY NOT SEASONALLY ADJUSTED AJSE i I 1.0 i BANK L-MEMBER BORROWINGS EXCESS .5 RESERVES _ L, |I---------" -1967 1968 0"l . i MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF 2 8 6 I DOLLARS I I I TOTAL MEMBER BANK SEAS ADJ WEEKLY I I I I I I I 1 I I I I I I DEPOSITS (CREDIT PROXY] AVERAGE OF DAILY FIGURES 282 278 274 270 266 262 258 254 250 246 242 -LIABILITIES TO OVERSEAS BRANCHES [WEEKLY REPORTING BANKSJ NOT SEAS 4 ADJ, WEDNESDAYS - 2 D 1966 M J 1967 S D M J 1968 S Chart 3 MONEY SUPPLY ANDBANK DEPOSITS SEASONALLY I BILLIONS ADJUSTED WEEKLY I I AVERAGES I I OF DAILY FIGURES I I I I I I I I OF DOLLARS I l l BILLIONS OF DOLLARS 190 -196 186 192 182 MONEY SUPPLY 188 178 --- 174 184 - 170 180 176 172 TIME (All DEPOSITS ADJUSTED Commercial Banks) - 168 164 160 156 24 NEGOTIABLE NOT SEAS ADJ, CD'S WEDNESDAYS 16 - 12 D 1966 M J 1967 S D M J 1968 S Chart 4 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY , , I BILLIONS OF DOLLARS AVERAGES OF DAILY FIGURES I I II II 48 44 40 36 146 142 138 134 130 12 8 4 0 D 1966 M J 1967 S D M J 1968 S MAJOR SOURCES AND USES OF RESERVES 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 = Change = Bank use of reserves Federal Reserve Gold Currency Technical in Required Excess credit (excl. outside factors total reserves float) I/ banks net 2/ reserves 3/serves Period Year: .966 (12/29/65 - 12/28/66) 1967 (12/28/66 - 12/27/67) +3,149 +4,718 - 627 725 -2,243 -2,305 + - +2,158 +4,083 - 151 -2,067 - 552 -1,130 +1,085 +1,522 +1,111 +1,517 + 26 5 -1,694 - 770 + 240 115 + 135 342 - 105 227 805 165 Year-to-date: (12/28/66 - 8/9/67) (12/27/67 - 8/7/68) 5/ Weekly: + + 52 220 60 226 ----- + + + 706 394 199 225 + + - 746 10 10 525 + + - 13 185 250 75 + + - 264 344 114 23 + + - 251 159 136 52 p p p p + + - 490 135 294 385 ----- + + 518 378 126 218 + + - 89 152 79 279 + + - 60 361 340 443 + + - 50 309 153 107 + + - 10 52 187 336 4 p + 390 -- -395 + 27 + 20 - 28 + 48 11 18 25 + 470 960 385 ---- + + 340 170 50 + + - 825 775 420 + + 15 15 15 + + 15 15 15 2 9 + + 875 615 --- + - 325 210 -850 60 + + 350 345 + + 350 345 1968--July 10 17 24 31 Aug. 7 14 21 28 Sept. PROJECTED 1968--Sept. Oct. / p - Preliminary. For retrospective details see Table B-4. For factors included, see Table B-3. For required reserves by type of deposits, see Table B-2. See reverse side for explanation. Includes increase in reserve requirements of $360 million effective Jan. 11, 1968 and $190 million effective Jan. 18, 1968. -- 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 Total required Supporting U. S. Gov' t. d G d . r eser ves deposits demand Supporting private deposits T Totals l Seasonal changes Time Demand Other than seasonal candTime Demasonal Time I Time Demand + 4 6 5 +1,023 +1,221 + 168 + + 70 208 939 924 6 328 Demand jar: 1966 (12/29/65 - 12/28/66) 1967 (12/28/66 - 12/27/67) +1,111 +1,517 Year-to-date: (12/28/66 - 8/9/67) (12/27/67 - 8/7/68) 2/ Weekly 1968-- July Aug. Sept. 10 17 24 31 + + - 264 344 114 23 7 14 21 28 + + - 50 309 153 107 4 - 28 - 87 + 261 - 153 - 410 +1,198 +1,256 18 752 + + 220 185 183 166 6 + + - - 225 - 44 + + 159 297 - 189 - 70 124 + 138 - - 997 708 - 11 + 44 - 6 + + 241 82 52 86 + + + + 38 59 46 45 - 177 + 29 120 185 15 101 + 19 75 215 175 60 20 15 192 67 + + - + - + 32 + 45 + 32 + 197 + 159 + 20 + 24 PROJECTED Sept. Oct. 11 + 15 - 225 + 240 + 295 - 15 - 60 + 20 18 25 + 15 15 + - 225 225 + 240 240 + - 190 240 - 25 + 425 460 + + 20 20 2 9 + + 350 345 + + 80 625 + 270 -280 + + 145 50 - 105 355 + + 20 20 --+ 5 Reflects reserve requirement changes in July, September 1966, and March 1967. Includes increase in reserve requirements of $360 million effective January 1 1, 1968 and $190 million effective January 18, 1968. p - Preliminary. 1/ 2/ 1/ 1/ Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Foreign Technical Period factors Treasury (net) operations Float deposits and gold loans ACTUAL Other nonmember deposits and F. R. accounts (Sign indicates effect on reserves) Year: 1966 (12/29/65 - 12/28/66) 1967 (12/28/66 - 12/27/67) 805 165 + 673 - 85 -1,694 - 233 -1,367 - - + 329 - 712 - 746 10 10 525 259 194 + 195 - 113 88 + 110 19 - 396 89 152 79 279 27 198 64 389 - 30 - 7 Year-to-date: (12/28/66 - 9/6/67) (12/27/67 - 9/4/68) Weekly: 1968--July Aug. 10 17 24 31 7 p 14 p 21 p Sept. 28 p 4 p 770 + 18 88 - 9 64 + - 346 261 150 - 45 + + 40 450 80 104 397 288 290 220 97 76 65 373 14 63 PROJECTED 1968--Sept. Oct. p - 11 18 + + 825 775 + + 755 100 25 - 420 - 415 2 9 - 850 60 - Preliminary. 500 -- -- 350 60 -- + + 20 225 - - 5 10 + Table B-4 SOURCE OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions of dollars, based on weekly averages of daily figures) Total Federal Period U.S. Government securities Reserve credit (Excl. float) Year: 1966 (12/29/65 - 12/28/66) Total holdings Federal Repurchase agreements Bills 1967 (12/28/66 --12.27/67) +3,149 +4,718 +3,069 +5,009 +2,158 +4,433 + 474 +1,153 + - 437 577 Year-to-date: (12/28/66 - 9/6/67) (12/27/67 - 9/14/68) +2,158 +4,083 +2,766 +4,045 +2,509 +3'210 + + 828 916 - 571 81 + + 157 13 Weekly: 1968--July 31 + + 122 52 220 60 226 + + + 274 61 284 90 214 263 27 313 14 180 7 14 21 28 + + - 490 135 294 385 + + + - 352 35 280 122 76 52 392 59 3 10 17 24 Aug. Sept. 4 _________________________________ + + 390 -. 312 __________- __________ Agency Securities 52 + 2 - 69 - 203 -20 - 7 - 119 64 - 469 + 109 + + 16 36 10 19 49 - 314 81 + + 58 169 - 37 + 135 - 161 + - 0 10 - -- - 10 - 9 - 19 - 15 13 -- 1 borrowings + 146 75 29 104 34 - 71 +- 7 - acceptances Member banks 26 19 + - 276 17 112 181 241 Bankers' 3 I - 2 + 43 - 245 + 80 Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly a,verages of daily figures) Period Total reserves Nonborrowed -Required reserves Total reserves Against private deposits I ITotal I Demand 1966--Jan. Feb. Mar. Apr. May June 1/ July Aug. Sept. Oct. Nov. Dec. 22,785 22,857 22,888 23,118 23,192 23,149 23,293 23,029 23,065 22,954 22,915 22,895 22,325 22,376 22,331 22,490 22,486 22,472 22,552 22,336 22,319 22,243 22,303 22,286 22,456 22,507 22,512 22,714 22,773 22, 80 22,864 22,710 22,689 22,629 22,593 22,600 21,936 21,996 22,115 22,283 22,331 22,361 22,344 22,320 22,349 22,229 22,198 22,262 16,822 16,877 16,957 17,043 17,030 17,043 16,963 16,908 16,922 16,827 16,810 16,825 1967--Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 23,217 23,471 23,869 23,910 23,952 24,105 24,342 24,627 24,786 25,121 25,275 25,153 22,770 23,107 23,668 23,775 23,874 23,982 24.279 24.586 24,721 25,020 24,848 22,875 23,134 23,383 23,529 23,531 23,660 23,960 24,259 24,452 24,810 24,947 24,914 22,298 22,559 22,785 22,779 23,071 23,387 23,578 23,776 23,850 23,995 24,122 24,157 16,774 16,959 17,101 17,015 17,244 17,472 17,582 17,701 17,704 17,805 17,879 17,860 1968--Jan. Feb. Mar. Apr. May June July Aug. p 25,500 25,765 25,812 25,623 25,711 25,816 25,193 25,401 25,135 24,938 24,984 25,121 25,425 25,918 25,151 25,389 25.402 25,276 25,236 25,438 25,601 26,053 24,270 24,333 24,431 24,487 24,751 24,925 25,188 25,338 17,974 18,025 18,082 18,133 18,387 18,550 18,727 18,765 '5,923 26,431 25,142 p - Preliminary. 1/ Break in series due to redefinition of time deposits effective June 9, 1966, which reduced required reserves by $34 million. Table C-2 DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally Adjusted (Dollar amounts in Period billions based on monthly averages of daily figures) Total member bank deposits Time Private demand, U.S. Gov't. demand deposits deposits deposits 2/ 238.0 239.0 239.8 241.9 121.8 121.9 122.8 124.8 111.7 112.1 112.6 113.2 4.5 5.0 4.4 4.0 243.9 244.4 245.8 245.6 245.5 244.4 244.0 244.6 126.2 126.6 128.1 128.8 129.2 128.6 128.3 129.4 113.1 113.2 112.6 112.3 112.4 111.7 111.6 111.7 4.6 4.6 5.1 4.5 4.0 4.0 4.1 3.5 1967--Jan. Feb. Mar. 247.7 251.0 254.0 131.5 133.3 135.3 111.4 112.6 113.6 4.8 5.1 5.1 Apr. May 255.8 257.2 137.2 138.7 113.0 114.5 5.6 4.0 June July Aug. Sept. Oct. 259.5 262.4 266.1 268.4 270.8 140.8 142.8 144.6 146.3 147.4 116.0 116.7 117.5 117.6 118.2 2.6 2.9 4.0 4.5 5.2 Nov. 272.9 148.6 118.7 5.6 Dec. 273.2 149.9 118.6 4.6 1968--Jan. Feb. Mar. Apr. 274.7 277.0 278.0 276.9 149.9 150.2 151.2 151.3 119.4 119.7 120.1 120.4 5.4 7.1 6.7 5.2 May June July 277.3 278.8 280.9 151.5 151.8 153.8 122.1 123.2 124.3 3.7 3.9 2.7 785.9 156.5 124.6 4.8 (credit) 1/ 1966--Jan. Feb. Mar. Apr. May June 3/ July Aug. Sept. Oct. Nov. Dec. Aug 1/ 9 Includes all deposits subject to reserve requirements--i.e., the total of time, private demand,and U.S. Government demand deposits. Movements in this aggregate correspond closely with movements in total member bank credit. 2/ Private demand deposits include demand deposits of individuals, partnerships and corporations and net interbank balances. 3/ Break in series due to redefinition of time deposits effective June 9, 1966, which reduced total member bank deposits and time deposits by $850 million. TABLE C-2a DEPOSITS SUPPORTED BY REQUIRED RESERVES AT ALL MEMBER BANKS Seasonally adjusted (Dollar amounts in billions, based on weekly averages of daily figures) Week ending: Total member bank deposits (credit)1/, Time deposits _ Private demand deposits / U. S. Gov't. demand deposits 3 10 17 24 277.4 276.6 278.6 276.7 151.6 151.5 151.4 151.0 120.3 120.1 121.7 120.0 5.5 5.0 5.5 5.7 May 1 8 15 22 29 276.3 277.2 276.7 277.3 277.7 151.5 151.5 151.6 151.6 151.4 120.0 120.9 121.3 122.7 123.3 4.8 4.8 3.7 3.1 3.1 June 5 12 19 26 278.2 278.4 277.9 280.2 151.6 151.8 151.8 151.7 123.4 122.2 122.2 123.0 3.2 4.4 3.9 5.5 July 3 10 17 24 31 278.8 278.0 280.6 282.4 283.6 152.2 152.7 153.6 154.4 155.1 125.2 123.8 124.4 123.9 124.5 1.4 1.5 2.7 4.1 4.0 Aug. 7 p 14 o 21 p 28 p 284.6 286 4 287.0 155.4 155.9 156.8 157.4 125.0 123.8 125.0 124.7 4.2 5.2 4.7 4.9 4 p 286.8 157.8 124.8 4.1 1968-- *Apr. Sept 284.9 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/ 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 COMERCIAL BANKS Seasonally adjusted (Dollar amounts in billions, based on monthly averages of daily figures) Monthly Money Supply Currency 1/ Private Demand Deosits 1966--Jan. Feb. Mar. Apr. May June 3/ July Aug. 167.9 168.6 169.2 170.3 170.3 170.5 169.9 170.0 Sept. 170.5 Oct. Nov. Dec. 170.2 170.2 170.4 Adjusted 131.4 131.9 132.3 133.2 133.0 133.1 132.3 132.2 132.6 147.7 148.3 149.6 151.8 153.6 154.1 155.9 156.9 157.7 132.1 157.3 132.0 132.1 156.9 131.8 133.0 161.0 163.5 165.9 168.1 170.1 172.6 174.8 177.2 179.4 180.6 182.0 183.5 170.3 171.8 173.2 172.5 174.4 176.0 177.8 178.9 179.1 180.2 181.0 181.3 38.5 38.7 38.9 39.0 39.1 39.3 39.4 39.5 39.7 39.9 40.1 40.4 139.4 139.4 140.2 141.0 140.9 1968--Jan. Feb. Mar. Apr. May June July August p 182.3 182.7 183.4 40.6 40.7 41.1 41.4 41.6 42.0 42.2 42.6 141.7 141.9 142.2 143.0 144.5 145.1 147.2 147.6 186.1 187.1 189.4 190.2 / 36.6 36.7 36.9 37.1 37.3 37.4 37.6 37.8 37.9 38.0 38.2 38.3 1967--Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 184.3 Time Deposits 134.3 133.5 135.3 136.7 138.4 158.1 184.1 185.2 186.7 187.1 187.6 188.2 190.4 193.7 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 andFederal Reserve float; and (2) foreign demand balances at Federal Reserve Banks. 3/ Break in series due to redefinition of time deposits effective June 9, 1966, which reduced time deposits adjusted by $1,140 million. p - Preliminary. 1/ 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) Week Ending Money Supply Currency / Private Demand Deposits Time Deposits 2/ adjusted 183.9 183.9 186.0 183.8 41.2 41.3 41.3 41.4 142.7 142.6 144.7 142.4 187.3 187.0 187.1 186.9 22 29 183.7 184.8 185.1 186.8 187.4 41.5 41.5 41.6 41.8 41.7 142.3 143.3 143.5 145.0 145.7 187.3 187.4 187.7 187.7 187.7 June 5 12 19 26 187.7 186.4 186.8 187.6 41.8 42.0 42.0 42.0 145.9 144.3 144.8 145.6 188.0 188.1 188.1 188.0 July 3 189.6 188.8 190.0 188.6 189.5 42.1 147.6 146.6 147.8 146.4 147.3 188.6 189.2 190.2 191.1 191.8 190.2 42.2 42.6 192.4 193.2 194.0 42.7 148.0 147.1 147.9 147.6 42.8 147.6 195.2 1968--Apr. 3 10 17 24 May 1 8 15 10 17 24 31 Aug. Sept. 7 14 21 28 189.6 190.5 190.3 4 190.4 42.2 42.2 42.2 42.2 42.6 194.6 and the vaults of all 1/ Tncludes 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. p - Preliminary. 

Federal Reserve (1968, September 9). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19680910

@misc{wtfs_bluebook_19680910,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1968},
  month = {Sep},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19680910},
  note = {Retrieved via When the Fed Speaks corpus}
}