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) MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments (1) Since the last meeting of the Committee, yields on money and short-term credit market instruments, and movements in reserve and deposit aggregates, have generally been in line with staff projections. The bank credit proxy rose by a 9 per cent annual rate on average in September (10 per cent after including Euro-dollar borrowings), while the 3-month bill rate fluctuated in about a 5.10-6.30 per cent range. After reaching a peak shortly before mid-month, the bill rate declined to the bottom of the range as the System returned to the buying side of the market and seasonal pressures associated with the tax date passed. Most recently, the 3-month bill has been trading around 5.20 per cent, affected in part by the fact that such bills now carry the relatively less popular January dates. (2) Other short-term rates have declined slightly since the last meeting of the Committee, while long-term rates have fluctuated in a relatively narrow range. The reduction in prime loan rates--with most banks reducing the rate by only 1/4 point to 6-1/4 per cent--had little effect on market rates. pressure In the past few days some upward on market interest rates has developed, as market sentiment about the economic outlook shifted somewhat and as dealers became more eager to reduce security inventories. FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (lMonthlv Money Free averages and, where available, weekly averages of daily figures) arket Indicators Bond Yields Flow of Reserves. Bank Credit and Money Bank Total Corporate Munici- NonBorrow- Federal 3-month ings serves (In millions of dollars) Period Funds Rate Treasury Bill U.S. Gov't. (20 y.) New pal Issues (Aaa) (Aaa)I/ 252 212 225 143 82 141 124 185 3.99 3.87 4.14 4.49 4.42 4.55 4.72 4.96 5.16 5.36 5.66 5.59 5.85** 6.08** 6.50 6.51 3.81 3.88 3.99 4.15 +135 +299 +122 -294 142 21 -312 -341 -374 -386 -192 -240 -160 275 368 649 689 728 727 523 577 492 4.60 4.68 5.02 5.74 6.10 6.09 6.03 6.03 5.76 5.00 4.98 5.17 5.38 5.66 5.52 5.31 5.23 5.19 5.39 5.38 5.59 5.46 5.55 5.40 5.29 5.22 5.28 6.22** 6.25** 6.57** 6.50** 6.64 6.65 6.50** 6.16 6.27 4.06 4.01 4.28 4.13 4.28 4.26 4.12 4.00 4.23 +345 +208 -266 -197 + 46 +137 +304 +493 + 29 -182 - 96 - 58 -303 454 634 405 475 5.84 5.78 5.65 5.72 5.19 5.26 5.22 5.15 5.23 5.29 5.28 5.27 6.40 6.33 6.24 6.26 -191 540 5.90 5.28 5.31 Year 1967 Second Half 1967 First Half 1968 195 238 -201 173 123 567 4.19 4.02 5.37 Recent variations in growth Nov. 29-Feb. 28 Feb. 28-Jun. 12 2 Jun. 12-Oct. 106 -360 -211 276 695 556 4.59 5.66 5.97 4.90 5.43 5.23 '"67--Sept. Oct. Nov. Dec. 1968--Jan. Feb. Mar. Apr. May June July Aug. p Sept. p 1968--Sept. Oct. 1/ 2/ 3/ p - 4 11 18 25 p p p p 2 p D sits Credit Supy Proxy 2/ (In billions of dollars) lars)I (Seasonally Adjusted) + 0.2 + 2.2 +159 + 2.3 + 2.4 + 1.1 + 1.2 +335 +154 + 2.1 + 0.8 + 1.4 -122 + 0.2 + 0.3 + 1.5 Reborrowed Reserves serves (I dll (If dol + + + + + + + + 1.5 2.3 1.0 1.0 0.4 1.5 2.1 5.0 2.1 + + + + + + + + - 1.0 0.4 0.7 0.9 1.8 1.3 2.0 0.8 1.0 + + + + + + + + + 0.6 1.1 1.5 0.4 0.5 0.6 2.2 3.4 2.9 4.25 4.25 4.21 4.20 + + + 0.3 0.3 0.9 1.0 + - 0.1 0.1 1.5 0.1 + + + + 0.6 0.6 1.1 0.5 6.31 4.14 + 1.8 Averages 5.01 4.29 5.31 4.51 5.46 5.29 5.77 6.10 6.47 3.74 3.91 4.16 5.46 5.51 5.28 6.30 6.58 6.39 4.08 4.23 4.12 +347 +265 + 47 -189 + 88 +105 +107 +508 - 36 + 1.0 Annual rates of increase + +11.9 + 9.9 +11.5 + +10.6 + 8.7 + 7.2 + + 4.0 + 5.3 + 2.2 + 9.1 - 1.1 +14.4 3/ 6.4 6.0 6.6 +16.1 +12.6 + 5.0 + 4.0 + 6.6 + 5.6 + 6.1 + 4.5 +17.3 Includes issues carrying 5-year and 10-year call protection, ** - issues carry a 10-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. Preliminary. n.a. Not available. October 4, 1968. + 0.7 -2Money market conditions since the last meeting of the (3) Committee have been influenced by changes in reserve distribution, partly related to the emergence and subsidence of pressures around the tax date; by banks' initial adaptations to the new reserve settlement regulations; and by a decline in Euro-dollar borrowings in the latter part of September. The Federal funds rate has averaged near 5-3/4 per cent although fluctuating fairly widely around this level, with most trading at 6 per cent during the past statement week. Rates on new loans to dealers posted by major money market banks have fluctuated around 6-1/4 per cent, and have been relatively more on the high side in recent days. Member bank borrowings averaged around $475 million over (4) the past three statement weeks, as compared with $520 million in the preceding four. At the same time, excess reserves in the past three weeks declined relative to the preceding four weeks to an average level of $290 million, as banks adapted to the new reserve provisions. (5) With banks economizing on excess reserves and with reserves released by a shift in the deposit mix from demand to time deposits, total reserves of banks declined slightly, on average, in September. Total demand deposits at banks declined last month as a small rise in U.S. Government deposits was more than offset by a marked decline in private demand deposits. The money supply fell by about 6 per cent, at an annual rate, on average. On a weekly basis, the last substantial increase in the money supply occurred in late June and the early days of July, and related partly to the large cash -3redemption of June tax bills. Since that time, the money supply has fluctuated in a narrow band and shown virtually no change on balance. (6) Time deposits in September grew at an 18 per cent annual rate, on average, a slightly lower rate than August. The decline in outstanding bank CD's in September was less than seasonal, even though banks reduced CD offering rates on most maturities. Other time and savings deposits continued to increase at around their fairly rapid August pace. (7) Comparative average annual rates of change for the major reserves and deposit aggregates are shown below for several recent periods. '67May Hov. '67 Dec. '67June '68 July '68 Sept. '68 Sept. '68 Total reserves 9.8 3.7 9.0 - 1.6 Nonborrowed reserves 9.9 -0.1 13.2 1.3 Proxy 11.5 3.7 13.2 8.8 Proxy plus Euro-dollars 12.3 4.7 14.3 10.2 8.4 5.8 3.8 - 6.3 14.2 5.8 18.1 18.0 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 and August only. 5.61/ n.a. Prospective developments (8) Assuming a policy which permits member bank borrowings to remain in a $400 - $600 million range, the Federal funds rate in the coming three weeks is likely to center around 5-7/8 per cent. Any significant reduction in the continued exceptionally deep basic reserve deficit of major banks--either because Euro-dollars become more available or simply because banks become less inclined to borrow short--would tend to ease conditions in the funds market. Working in the other direction would be increased financing demands associated with the expected $3.5 billion Treasury tax bill financing, probably to be paid for in the latter half of October. (9) The 3-month bill rate over the coming period may fluctuate in a 5.10--5.40 per cent range. The System's own operations are not expected to be a significant net influence on the market, in contrast to recent weeks when large-scale System buying helped to reduce dealer inventories in both the bill and coupon areas. Since the last Committee meeting dealer positions in all maturities have declined about $900 million (from September 10 to October 1), with total bill positions down about $500 million and coupon issues maturing in more than 5 years down almost $300 million. (10) Some additional demand for bills may be forthcoming in the near future from auto companies and from state and local governments utilizing the proceeds of capital market issues. However, the supply of -5– bills will be substantially increased by the expected treasury tax bill financing. To the extent that the mid-November refunding--to be announced about a week before the next FOMC meeting--may result in very little debt lengthening, this too could exert marginal upward pressure in short-term market sectors. (11) With banks expected to underwrite the Treasury tax bill financing, the bank credit proxy in October may rise in a 10-13 per cent, annual rate, range. The Treasury financing (including related financing of dealers) accounts for about 4-1/2 percentage points of the projected rise. (If Euro-dollar borrowings remain at the early October level--which is $700 million below the mid-September peak--the combination of the proxy plus Euro-dollars would be reduced by about 1-1/2 percentage points on average in October). (12) Such a continued relatively strong pace of total bank credit expansion reflects not only Government financing but also persisting large inflows of time and savings deposits. Only a moderate slowing in the pace of expansion of interest-bearing deposits is projected for October--to a 13-16 per cent annual rate range. However, there is some likelihood that the extent of bank intermediation in the saving process could diminish, as thrift institutions, whose inflows appear to be lagging relatively, begin to compete more actively. In addition, bank credit growth might fall short of projections if both banks and other active market participants adopt more pessimistic attitudes toward future declines of interest rates, and become less willing long-term -6- investors and short-term borrowers, to be on the moderate side. Business loan growth is expected Assuming such business loan growth and no sharp turn-around in bank attitudes toward future interest rates, out- standing CD's are expected to rise in a $500-$750 million range, about twice seasonal growth. (13) The money supply is not expected to show any very rapid growth in the period ahead. In October, money growth may possibly be in a 1-4 per cent, annual rate, range for the month on average, mainly as a result of currency growth. (14) Looking ahead to November, bank credit growth is likely to be slower than in October. Unlike most previous Novembers, the Treasury may not have to raise very much new cash during the month-having anticipated their November cash need in October. Moreover, a further slowing in time deposit expansion appears likely, as income growth remains on the moderate side and as some funds that would otherwise go into time deposits are attracted by the newly issued tax bills (with secondary market distribution occurring in very late October and early November) and by coupon issues offered in the November refunding. (15) The combination of Treasury financing, a continued large volume of new municipal issues, and possibly more widespread investor uncertainties as to the future course of interest rates and inflation all suggest the possibility of upward pressure on the interest rate structure in the weeks ahead, probably of moderate dimensions. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Excess reserves Period As Member banks borrowines revised to Free reserves date 1*I Monthly (reserves weeks ending in): 1967--September October November December 334 353 349 333 82 141 124 185 252 212 225 148 1968--January February March April May June July August p September p 417 389 337 348 354 341 331 337 332 275 368 649 689 728 727 523 577 492 142 21 -312 -341 -374 -386 -192 3 10 17 24 31 182 433 274 410 358 493 412 470 639 602 -311 21 -196 -229 7 342 314 514 179 p p p p 2 p Weekly: 1968--July Aug. 14 21 28 Sept. Oct. p - Preliminary 4 11 18 25 As first published each week As expected at conclusion of each week's open market operations -240 -160 -406 -419 - 93 - -244 -284 -307 -288 -312 -315 -319 737 576 619 374 -395 -262 -105 -195 -381 -306 -109 -234 -353 -292 272 538 347 172 454 634 405 475 -182 -239 -108 -303 -323 -196 -141 -148 -347 349 540 -191 -191 -230 - 96 - 58 - 93 96 - 53 -247 TABLE A-2 AGGREGATE RESERVES AND RELATED MEASURES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly averages of daily figures) Res e rve Total Reserves Ag Nonborrowed ve Var i ab es Monet a rv Total Member Time Money Supply r e g a t e s Required reserves Total Against Demand Bank Deposits Reserves T ReserveDeposits (credit) i/ ( ) 1/ Deposits (comm. banks) Total _ Private Demand Deposits Annually: 1966 1967 + 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 Monthly: 1967--July Aug. Sept. Oct. Nov. Dec. +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 -+ 6.9 + 6.8 - 0.9 1968--Jan. Feb. Mar. +16.6 +12.5 + 2.2 +16.7 + 9.9 -12.6 +11.4 +11.4 + 0.6 +15.3 +19.2 + 0.1 + 6.6 +10.0 + 4.3 + 3.9 + 7.2 + 9.7 + 6.6 + 2.6 + 4.6 + 6.8 + 1.7 + 2.5 - - -11.1 - 4.7 + 2.6 +-5.9 + 6.8 + 1.7 + 6.5 + 9.0 +21.4 + 8.8 + 3.2 + 3.8 +14.0 +21.4 +18.0 +11.7 + 8.4 +12.8 + 5.1 - 6.3 +12.6 + 7.5 +14.9 + 4.1 - 8.9 -/ Apr. May June July Aug. p Sept. p 8.8 + 4.1 + 4.9 + 5.0 +23.5 - 1.6 9.4 + 2.2 + 6.6 +14.5 +23.3 + 1.3 - 6.0 - 1.9 + 9.6 + 7.7 +21.2 + 4.8 + 1.5 412.2 + 0.1 +21.8 - 3.1 Movements in this aggregate correspond closely with 1/ Includes all deposits subject to reserve requirements. 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 S BILLIO BILLIONS OF DOLLARS, OF DAILY FIGURES IY I SEASONALLY ADJ 26.0 25.5 - 25.0 SERVES 24.5 -REQUIRED RESERVES _~C~-- 24.0 23.5 23.0 22.5 22.0 M J 1967 S D M J 1968 S D Chart 2 MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF 2 8 6 DOLLARS I I I I I I I I I I ---I T7 TOTAL MEMBER BANK DEPOSITS [CREDIT PROXY] SEAS ADJ WEEKLY I AVERAGE OF DAILY FIGURES 1 282 278 rJ 274 270 266 262 I~ 258 254 250 246 242 6 -LIABILITIES TO OVERSEAS BRANCHES (WEEKLY REPORTING BANKS) NOT SEAS 4 ADJ, WEDNESDAYS w -~n;~C ~N.1 I I 1966 1967 I II 1968 Chart 3 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 190 .LARS I 186 196 182 192 178 188 174 184 170 180 176 172 TIME DEPOSITS ADJUSTED (All Commercial Banks) 168 164 160 156 24 NEGOTIABLE NOT SEAS CD'S ADJ, WEDNESDAYS 20 16 12 1966 1967 1968 Chart 4 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES llllll I I I I I II BILLIO NS OF DOLLARS I I I I 48 MONEY SUPPLY COMPONENTS: 44 CURRENCY OUTSIDE BANKS 40 36 146 142 DEMAND DEPOSITS M J 138 134 130 D 1966 1967 S D M J 1968 S Table B-1 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 Federal Reserve credit (excl. float) / Period Gold stock Year: 1966 (12/29/65 - 12/28/66) 1967 (12/28/66 - 12/27/67) +3,149 +4,718 - Year-to-date: (12/28/66 - 10/4/67) (12/27/67 - 10/2/68) 5/ +2,600 +4,090 - 153 -2,067 Weekly: 1968--Aug. 7 14 21 Oct. Technical factors net 2/ -2,243 -2,305 + - - -1,675 - 557 293 804 805 165 Change in total reserves +1,085 +1,522 = Bank use of reserves Excess Required reserves es 3/ r +1,111 +1,517 501 755 - 26 + 5 - 24 93 490 135 294 385 + + - 89 152 79 279 + 41 + 57 - 337 - 309 - 16 28 + 337 + 137 + 200 - 436 - 101 - 335 p p p p 390 454 941 283 + 50 +1,064 + 547 - 616 + + 80 325 - 13 + 59 + + 93 266 - 250 116 - 59 + 59 - 191 175 2 D ,119 - 805 + 519 + 342 + 177 -165 - 280 + + 30 220 + + 280 290 + + 280 290 - 28 Sept. 627 725 Currency outside banks = 4 11 18 25 PROJECTED 1968--Oct. Nov. 5/ 9 16 + + 415 350 --- 23 - 350 -- - 210 + 465 - 95 30 - 135 -- + 390 - 400 - 145 6 + 265 -- - 80 - 200 - 15 - 95 145 15 p - Preliminary. For retrospective details see 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, 1978. -- 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 Period required reserves reserves var: 66 (12/29/65 - Supporting U. S. Gov't. demand demand deposits Supporting private deposits Total Total Seasonal changes Demand Time Other than sea l chan seasonal changes Demand Time 12/28/66) +1,111 - 87 +1,198 - 14 - 4 - 1967 (12/28/66 - 12/27/67) +1,517 + 261 +1,256 + 59 + 6 +1,023 + 168 + + 501 755 + - 119 298 + 382 +1,053 - 719 225 + + 59 170 +1,025 + 565 + + 17 543 7 14 + - 57 309 - 73 122 + - 130 187 + - 19 15 + + 6 13 + - 85 217 + + 20 32 21 28 + - 137 101 + - 143 8 - 6 93 - 192 67 - 13 6 + - 154 52 + + 45 32 4 p 11 p 18 P + - 13 59 59 + 227 113 113 + + - 214 172 172 + + - 159 295 295 + 6 13 13 + + 25 117 117 + + - 36 7 7 25 P + 59 - 113 + 172 + 295 - 13 - 117 + 7 2 p + 342 + 225 + 117 + 188 - 25 - 72 + 26 9 16 + + 280 290 + - 485 15 + 205 305 + 240 145 + + 7 145 + + 28 15 23 30 - 95 145 - 105 270 + + 10 125 + + 50 30 6 - 15 + 40 - 55 5 +1,221 Year-to-date: (12/28/66 (12/27/67 - Weekly: 1968--Aug. Sept. Oct. 10/4/67) 10/2/68) 2/ PROJECTED 1968--Oct. Nov. Reflects reserve requirement changes in July, September 1966 and March 1967. Includes increase in reserve requirements of $360 million effective January 11, effective January 18, 1968. 1/ 2/ p -- - Preliminary. --- + + 5 5 - 60 75 + + 15 15 - 5 - 65 + 15 1968 and $190 million 1/ 1/ Table B-3 TECHNICAL FACTORS AFFECTING RESERVES Retrospective and Prospective Changes (Dollar amounts in millions, based on weekly averages of daily figures) Technical factors (net) Period Treasury operations Float )________ ACTUAL + - 805 165 + - 673 85 + - Year-to-date: (12/28/66 - 10/4/67) (12/27/67 - 10/2/68) -1,675 - 557 + 357 79 7 14 21 + + - 89 152 79 + + - 28 - 279 4 + Sept. loans F. R. accounts - 30 7 + + 98 316 -1,282 - 610 + + 18 5 - 54 31 198 88 64 + + 18 9 346 + + 51 8 12 + - 76 65 373 - 80 - 261 + 48 + 14 64 389 50 + 150 - 22 - 15 - 63 +1,064 + 547 - 616 + - 801 62 659 + + + 205 270 17 + + + 6 6 5 + + + 52 333 21 - 805 - 330 - 413 - 22 - 40 9 16 23 30 + + + 30 220 465 135 70 - 100 - 5 + + 50 350 + 10 - 400 - 400 6 - 200 - 200 11 18 25 Oct. Other nonmember deposits and (Sign indicates effect on reserves) Year: 1966 (12/29/65 - 12/28/66) 1967 (12/28/66 - 12/27/67) Weekly: 1968--Aug. Foreign deposits and gold 2 p PROJECTED 1968--Oct. Nov. ' ' p - Preliminary. 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: 1966 (12/29/65 1967 (12/28/66 - 12/28/66) - 12/27/67) Year-to-date: (12'28/66 - 10/4/67) (12/27/67 - 10,2/68) U.S. Government securities Total Bill Repurchase agreements holdings +3,149 +4,718 +3,069 +5,009 +2,158 +4,433 + 474 +1,153 + - 437 577 +2,600 +4,090 +3,055 +3,962 +2,759 +2,956 + 954 +1,024 - 658 - 18 Federal Agency Securities + 26 19 Bankers' 52 69 + - 2 203 - 25 S 61 + 404 195 + - 26 - 6 Weekly: S 16 - 36 + 10 19 + 49 1968--July 3 10 17 24 31 + + 122 52 220 60 226 + + + 274 61 284 90 214 263 27 313 14 180 Aug. 7 14 21 28 + + - 490 135 294 385 + + + - 352 35 280 122 76 52 392 59 Sept. 4 11 18 25 + + 390 454 941 283 + - 312 634 731 214 241 659 698 214 + + 889 + Oct. 2 ___________________________ +1,119 - +1,048 + + = 71 12 96 + + - 10 - 9 - 19 - 15 13 - I 10 - 3 - 2 - 1 1 + 5 13 13 63 + 1 Member banks borrowings Chart Reference Table C-1 TOTAL, NONBORROWED AND REQUIRED RESERVES Seasonally Adjusted (Dollar amounts in millions, based on monthly averages of daily figures) Period Total S reserves Nonborrowed -Required reserves Total reserves Against private deposits S___Total IDemand 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 22,780 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 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 25,153 22,770 23,107 23,668 23,775 23,874 23,982 24,279 24.586 24,721 25,020 25,142 24,848 1968--Jan. Feb. Mar. Apr. May June July Aug. p Sept. p 25,500 25,765 25,812 25,623 25,711 25,816 75,923 26,431 26.395 25,193 25,401 25,135 24,938 24,984 25,121 ?5,425 25,918 25,947 25,151 25,389 25,402 25,276 25,236 25,438 25,601 24,270 24,333 24,431 24,487 24,751 24,925 26,053 25,338 25,309 17,974 18,025 18,082 18,133 18,387 18,550 18,727 18,764 18.632 25,275 26,158 25,188 17,582 17,701 17,704 17,805 17,879 17,860 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 billions based on monthly averages of daily figures) U.S. Gov't. demand deposits Total member bank deposits (credit) 1/ e deposits Private demand deposits 2/ 1966--Jan. Feb. Mar. Apr. May June3/ July Aug. Sept. Oct. Nov. Dec. 238.0 239.0 239.8 241.9 243.9 244.4 245.8 245.6 245.5 244.4 244.0 244.6 121.8 121.9 122.8 124.8 126.2 126.6 128.1 128.8 129.2 128.6 128.3 129.4 111.7 112.1 112.6 113 2 113.1 113.2 112.6 112.3 112.4 111.7 111.6 111.7 4.5 5.0 4.4 4.0 4.6 4.6 5.1 4.5 4.0 4.0 4.1 3.5 1967--Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 247.7 251.0 254.0 255.8 257.2 259.5 262.4 266.1 268.4 270.8 272.9 273.2 131.5 133.3 135.3 137.2 138.7 140.8 142.8 144.6 146.3 147.4 148.6 149.9 111.4 112.6 113.6 113.0 114.5 116.0 116.7 117.5 117.6 118.2 118.7 118.6 4.8 5.1 5.1 5.6 4.0 2.6 2.9 4.0 4.5 5.2 5.6 4.6 1968--Jan. Feb. Mar. Apr. May June July Aug n Sept. p 274.7 277.0 278.0 276.9 277.3 278.8 280.9 285.9 288.0 149.9 150.2 151.2 151.3 151.5 151.8 153.8 156.5 159.0 119.4 119.7 120.1 120.4 122.1 123.2 124.3 124.6 5.4 7.1 6.7 5.2 3.7 3.9 2.7 4.8 123.7 5.3 Period 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. Private demand deposits include demand deposits of individuals, partnerships and corporations and net interbank balances. 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 Time deposits Private demand (creditlI/ . deposits U. S. Gov't. demand 2/ deposits 1968--Apr. 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 31 278.8 278.0 280.6 282.4 152.2 152.7 153.6 154.4 155.1 125.2 123.8 124.4 123.9 124.5 1.4 1.5 2.7 4.1 4.0 7 284.6 285.0 286 4 287.0 156.0 156.8 157.4 125.0 123.9 124.9 124.7 4.2 5.2 4.7 4.9 124.7 124.1 123.5 123.4 4.1 124.1 6.4 Aug. 14 21 28 Sept Oct. 283.6 155.3 4 11 18 25 286.7 287.0 288.9 157.9 158.3 159.1 159.6 2 290.7 160.2 287.9 I 4.6 5.4 6.0 I 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 COMMERCIAL BANKS Seasonally adjusted (Dollar amounts in billions, based on monthly averages of daily figures) Monthly Money Supply Currency 1/ ___________ ___~______ 1/ 2/ 3/ Private Demand Deposits 2/ Deposits / Time Deposits Adjusted Ajse 1966--Jan. Feb. Mar. Apr. May June 3/ July Aug. Sept. Oct. Nov. Dec. 167.9 168.6 169.2 170.3 170.3 170.5 169.9 170.0 170.5 170.2 170.2 170.4 36.6 36.7 36.9 37.1 37.3 37.4 37.6 37.8 37.9 38.0 38.2 38.3 131.4 131.9 132.3 133.2 133.0 133.1 132.3 132.2 132.6 132.1 132.0 132.1 147.7 148.3 149.6 151.8 153.6 154.1 155.9 156.9 157.7 157.3 156.9 158.1 1967--Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 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 40.4 131.8 133.0 134.3 133.5 135.3 136.7 138.4 139.4 139.4 140.2 141.0 140.9 161.0 163.5 165.9 168.1 170.1 172.6 174.8 177.2 179.4 180.6 182.0 183.5 1968--Jan. Feb. Mar. Apr. May June July Aug. p Sept. p 182.3 182.7 183.4 184.3 186.1 187.4 189.4 190.2 189.2 40.6 40.7 41.1 41.4 41.6 42.0 42.2 42.6 42.7 141.7 141.9 142.2 143.0 144.5 145.4 147.2 147.7 146.6 184.1 185.2 186.7 187.1 187.6 188.2 190.4 193.8 196.7 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 andFederal Reserve float; and (2) foreign demand balances at Federal Reserve Banks. Break in series due to redefinition of time deposits effective June 9, 1966, which reduced time deposits adjusted by $1,140 million. 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) Week Ending Money Supply SPrivate Currency 1/ Private Demand Time DepoE 2/ _____Deposits adjusted 1968--Apr. -3 10 17 24 183.9 183.9 186.0 183.8 41.2 41.3 41.3 41.4 142.7 142.6 144.7 142.4 187.3 187.0 187.1 186.9 May 1 8 15 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 10 17 24 31 189.7 188.8 190.0 188.6 189.5 42.1 42.2 42.2 42.2 42.2 147.6 146.6 147.8 146.4 147.3 188.6 189.2 190.2 191.1 191.8 Aug. 7 14 21 28 190.4 189.7 190.4 190.2 42.2 42.5 42.6 42.7 148.1 147.1 147.8 147.5 192.4 193.3 194.0 194.6 Sept. 4 11 18 p 25 p 190.3 190.2 188.7 188.6 42.7 42.6 42.7 42.6 147.6 147.5 146.0 146.0 195.2 195.8 196.9 197.4 2 p 189.6 42.8 146.9 198.1 Oct. 1/ 2/ 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 and (2) foreign demand balances of Federal collection and Federal Reserve float; Reserve Banks. p - Preliminary. October 7, 1968 Correction to blue book for October 4, 1968: Paragraph (1), second sentence, final clause should read: "...while the 3-month bill rate fluctuated in about a 5.10--5.30 per cent range." 

Federal Reserve (1968, October 7). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19681008

@misc{wtfs_bluebook_19681008,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1968},
  month = {Oct},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19681008},
  note = {Retrieved via When the Fed Speaks corpus}
}