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. October 25, 1968. CONFIDENTIAL (FR) MONEY MARKET AND RESERVE RELATIONSHIPS Recent developments (1) Interest rates have continued to move higher in general since the last meeting of the Committee, although some yields receded from their most recent highs as a result of peace hopes. The 3-month Treasury bill rate for the most part fluctuated near the upper end of the projected 5.10 - 5.40 per cent range. The growth of major deposit and reserve aggregates has also been near, or slightly above, the upper end of the ranges specified in the last Blue book. Growth in the bank credit proxy in October is now estimated at a 12 per cent annual rate, on average, a shade below the upper end of the range specified earlier, after allowance is made for the smaller-than-assumed October tax bill financing. (Inclusion of Euro-dollar borrowings of banks would reduce the proxy by one-half percentage point, less than previously assumed.) (2) The Treasury on Wednesday offered two issues--an 18-month and a 6-year note--in a "rights" exchange for the maturing Ncvember and December coupon issues, of which $5.6 billion are held by the public. The short note has a 5-5/8 per cent coupon and is priced to yield 5.73 per cent, while the longer note is a re-opening at par cf an outstanding FINANCIAL MARKET RELATIONSHIPS IN PERSPECTIVE (Monthly averages and, where available, weekly averages of daily fil VM-t I-.nLJ Y v Mr-k . i . - T eL4a S.. J..IL Free Borrowteserves ings (In millions of dollars) Period di rrt A caLU jJ --I JL oLsL .- Federal 3-month Funds Treasury Rate Bill I II A.... V24I. l . 1-- U.S. Gov't. (20 yr.) New Issues pal (Aaa) (Aaa)1/ 1967--Sept. Oct. Nov. Dec. 252 212 225 143 82 141 124 185 4.00 3,88 4.12 4.51 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 1968--Jan. Feb. Mar. Apr. May June 142 21 -312 -341 -374 -386 -192 -240 -160 -233 275 368 649 689 728 727 523 577 492 449 4.60 4.72 5.05 5.76 6.12 6.07 6.02 6.03 5.78 n.a. 5.00 4.98 5.17 5.38 5.66 5.52 5.31 5.23 5.19 n.a. 5.39 5.38 5.59 5.46 5.40 5.29 5.22 5.28 n.a. 6.22** 6.25** 6.57** 6.50** 6.64 6.65 6.50** 6.16 6.27 6.50 4.06 4.01 4.28 4.13 4.28 4.26 4.12 4.00 4.23 4.20 +345 +208 -266 -197 + 46 +137 +304 +493 + 29 +219 -170 -227 -166 -368 540 402 518 335 5.93 5.89 5.96 5.84 5,15 5.28 5.33 5.37 5.31 5.39 5.49 5.44 6.31 6.56 6.57** 6.50 4.14 4.22 4.22 4.21 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 4.90 5.43 5.25 5.46 5.51 5.25 6.30 6.58 6.42 4.08 4.23 4.13 July Aug. p Sept. p Oct. p e 1968--Oct. 2 1 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 Jun. 12-Oct. 23 106 -360 -216 276 695 535 4,64 5.45 5.91 - Corporate Munici 5.55 (Seasonally Adjusted) + + 2.3 +159 +335 + 2.4 + +154 + 2.1 + -122 + 0.2 + +347 +265 + 47 -189 + 88 +105 +107 +508 - 36 +193 + + + + + + + + + 1.5 2.3 1.0 1.0 0.4 1.5 2.1 5.0 2.1 2.9 + + + + + + + + + + 1.0 0.4 0.7 0.9 1.8 1.3 2.0 0.8 0.9 1.1 + 1.4 + 1.4 - 0.4 + 0.1 + 0.9 - 0.6 3F 6.4 6.0 6.6 +16.1 +12.6 + 5.0 + 4.0 + 6.6 + 5.5 + 6.1 + 4.5 +17.3 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 +11.4 Includes issues carrying 5-year and 10-year call protection, ** - issues carry a 10-year call protection. Time deposits adiusted at all commercial banks. Base is change for month preceding specified period or in case of weekly periods, the first week shown. e - Estimated. Preliminary. n.a. Not available. Previous data based on number of trading days in period. period. in Average of total number of days October 25, 1968. 0.2 1.1 0.8 0.3 -2issue with a 5-3/4 per cent coupon. with settlement on November 15. Books will be open October 28-30, The market reacted with some surprise to inclusion of a 6-year note in the offering in view of the fair-sized inventory of 5-5/8's of August '74, which were issued last August, still in dealer hands. As of Friday, market reaction to the whole package appeared satisfactory, although many investors are likely to delay decision, particularly with respect to the longer term note, until the last minute in hopes that the status of peace negotiations will become clearer. (3) Day-to-day money market rates have shown little net change during the interval since the last meeting. rate has averaged close to 5-7/8 per cent. The Federal funds In the earlier part of the period funds traded frequently around 6 per cent, while later the rate dropped, often to 5-3/4 per cent, as there was a sizeable reduction in the basic deficits of banks in the central money market (although periods of very temporary tightness or ease have been recurring around the end of statement weeks). The rate for new loans to dealers in New York has centered around 6-1/2 per cent, although both higher and lower rates have not been uncommon. (4) Member bank borrowing has averaged $425 million during the last 2 full statement weeks since the Committee meeting, despite a sharp drop in borrowings in the most recent week. Excess reserves have averaged $160 million, down $100 million from the preceding four weeks. Over the whole period since the new reserve procedures have been in effect, excess reserves have averaged about 30 per cent lower than they -3were in the two months before the change. The bulk of the decline has been at reserve city banks, which have begun actively to utilize the reserve carry-over provision. Thus far, a bi-weekly pattern of excess reserve fluctuations has developed, as banks in one week have accumulated excess reserves and have utilized them by running reserve deficiencies in the succeeding week. (5) Growth in the bank credit proxy in October reflected relatively strong loan demands from businesses and reduced though continued fairly sizable investments in municipal securities. These asset additions have been financed by somewhat larger inflows of time deposits and private demand deposits than projected in the previous Blue book. However, these inflows have been partly offset by lesser availability of U.S. Government deposits than projected, while there was a small net drain of funds, on average, through Euro-dollar deposits. (6) The growth in total time and savings deposits in October on average is now projected at a 17 per cent annual rate, mainly because of larger than anticipated rise in negotiable CD's outstanding. There was a spurt in CD issues by major money market banks in late September and early October, when Euro-dollar borrowingswere dropping and when business loan expansion was quite strong. Money supply growth is estimated at around 7 per cent annual rate for the month. -4(7) Comparative average annual rates of change for major deposit and reserve aggregates for several recent periods are shown in the following table: May Nov. '67'67 Dec. '67June '68 July '68Oct. '68P Total reserves 9.8 3.7 9.0 Nonborrowed reserves 9.9 -0.1 12.5 Proxy 11.5 3.7 13.0 Proxy plus Euro-dollars 12.3 4.7 13.6 8.4 5.8 4.8 Bank credit, as measured by: Money supply Time and savings deposits 14.2 18.0 5.8 Savings accounts at thrift institutions 9.1 6.2 6.11/ NOTE: Dates are inclusive p--preliminary estimates 1/ July-September only. Prospective Developments (8) Demands for bank reserves--given current money market conditions and the economic outlook--are likely to remain on the strong side in the weeks ahead, though perhaps showing some tapering off from most recent experience. Banks are expected to continue to be active buyers of municipals at close to their October rate. Business -5loan demand may remain fairly substantial as economic activity, though moderating, continues at a fairly rapid pace in the fourth quarter and inventory accumulation remains high. However, net cash raised by the Treasury, if any, is expected to be of less than seasonal proportions in the period ahead. (9) We are assuming that banks will be called upon to help underwrite a $2.5 billion Treasury tax bill financing in the last week of November, although the financing may be delayed until early December. This cash financing would recoup the attrition from the holders of November "rights" (assumed in our projections to be only around 10 per cent) and would provide the means for paying-off holders of the December "rights" who did not accept the current exchange offering (which could come to 50 per cent or so of the public holdings). The $2.5 billion tax bill assumption also allows for about a $1 billion of net new cash to be raised by the Treasury. (10) The bank credit proxy in November is projected to rise in a 9-12 per cent, annual rate, range on average. differences in within-month patterns. This reflects large The proxy is projected to be at a much higher level in the last week of October than in the last week of September partly because banks credited tax and loan accounts on October 24 in payment for the tax bill financing just completed. The level of the proxy will show little change from the end of October to the end of November, although the average level for the month will be significantly above the average for October. About 1 percentage point -6would be added to average growth in the proxy during the month if Euro-dollar borrowings remain, on average, at current levels. (11) Because the next Treasury tax bill financing will not be before late November, most of its impact will be felt in December. Even so, growth in the bank credit proxy in December could be lower than in November since the amount of net new cash assumed to be raised by the Treasury is less than usual for this season of recent years. (12) The bank credit projections for November assume maintenance of a Federal funds rate fluctuating around 5-7/8 per cent, new loan rates to dealers in New York centering around 6-1/2 per cent, and member bank borrowings in a $400 - $600 million range. The recent large fluctuations in banks' excess reserves make it difficult to project the net reserve position of banks consistent with the above conditions. But assuming excess reserves fluctuate around the average of the past few weeks, net borrowed reserves could move within a $100 to $400 million range. (13) During November, and into the first half of December, the bill rate usually rises for seasonal reasons in the order of 10 to 15 basis points, despite seasonal System reserve supplying operations. This rise could be intensified if it turns out that the Treasury does need any significant amounts of net new cash, if current hopes for peace negotiations are disappointed,or if further strong economic news is reported. On the other hand, a successful outcome to current peace negotiations would likely be accompanied by downward pressures on both short- and long-term rates over the near-term. And a good market reception of the current "rights" offering could also increase demands for bills as holders of the maturing issues sell them in the market and re-invest the proceeds in bills. Given the uncertainties influencing market attitudes, the 3-month bill rate might be in a 5.25 - 5.60 per cent range over the weeks ahead. (14) In November, banks' time and savings deposits are expected to rise in a 12-14 per cent, annual rate, range. Growth in outstanding CD's is likely to be slower than the unusually rapid October pace. Private demand deposits are expected to continue rising, and money supply may grow in a 7-9 per cent,annual rate, range. This projected growth mainly reflects continued transactions needs and credit demands, as only a small decline, on average, in U.S. Government deposits is anticipated. (15) "Even keel" considerations appear to be involved over the greater part of the interval between this and the next meeting of the Committee on November 26. While the specification in paragraph (12) would be consistent with an "even keel" posture, it remains possible that a rise in the 3-month bill rate toward the upper end of the range in paragraph (13) might be construed by the market as reflecting a shift in the attitude of the monetary authorities. However, if such a rise did not occur until toward the end of the period, it would be at a time when "even keel" considerations would be less constraining. Table A-1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Member banks Excess reserves borrowings revised to date Period Free 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 October p e 417 389 337 348 354 341 331 337 332 216 275 368 649 689 728 727 523 577 492 449 142 21 -312 -341 -374 -386 -192 -240 -160 -233 3 10 17 24 31 182 433 274 410 358 493 412 470 639 602 -311 21 -196 -229 7 14 21 28 342 314 514 179 737 576 619 374 p p p p 281 538 347 172 454 634 405 475 2 p 9 p 16 p 23 p 370 175 352 -33 540 402 518 335 Weekly: 1968--July Aug. Sept. Oct. p - Preliminary 4 11 18 25 e - Estimated. reserves As expected at conclusion of each week's open market operations As first published each week I -406 -419 - 93 - 96 -244 -284 -307 -288 -312 -315 -319 -395 -262 -105 -195 -381 -306 -109 -234 -353 -292 -173 -239 -108 - 53 -247 - 58 -303 - 93 -323 -196 -141 -148 -347 -170 -191 -245 -177 -368 -230 -214 -141 -337 - 96 -227 -166 -368 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 Total Reserves r Aggregates Required reserves e Reserves Monet ar Variables Total Member Time Money Supply Against Demand Total B e Deposits (comm. it banks)Deposits banks) (credit) Deposits Private Demand Total Deposits Annually: 1966 1967 - Monthly: 1967--July Aug. Sept. Oct. Nov. Dec. + 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 +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 5.8 +14.9 +15.2 + 6.6 +14.5 + 5.9 -14.0 +16.6 +12.5 + 2.2 +16.7 + 9.9 -12.6 +11.4 +11.4 + 0.6 - 6.0 - 1.9 + 9.6 + 7.7 +21.2 + 4.8 + 8.5 +15.3 +19.2 + 0.1 -11.1 + 1.5 +12.2 + 0.1 +21.8 - 3.0 + 4.0 + 6.6 +10.0 + 4.3 + 3.9 + 7.2 + 9.7 + 2.6 + 3.2 + 3.8 +14.0 +21.4 +18.0 +17.0 + 6.6 + 2.6 + 4.6 + 5.9 +11.7 + 8.4 +12.8 + 5.1 + 6.8 + 1.7 + 2.5 + 6.8 +12.6 + 7.5 +14.9 + 4.1 - 1968--Jan. Feb. Mar. Apr. May June July Aug. p Sept. p Oct. p e - 8.8 - 9.4 + 4.1 + 4.9 + 5.0 +23.5 + 2.2 + 6.6 +14.5 +23.3 + 1.3 +10.0 - 1.6 + 9.0 & 1. __________ 1 Includes all deposits subject to reserve requirements. movements in total member bank credit. 2/ - 4.7 + 1.7 + 6.5 + 9.0 +21.4 + 8.8 +12.0 - _____________ 5 - + 6.9 + 6.8 - 5.7 - + 7.0 & _______ 0.9 8.1 + 7.5 I Movements in this aggregate correspond closely with Changes in reserves, total deposits and time deposits have been adjusted for redefinition of time deposits effective June 9, 1966. p - Preliminary. e - Estimated. Chart 1 MEMBER BANK RESERVES MONTHLY AVERAGES OF DAILY FIGURES T S- 26.0 25.5 25.0 NONBORROWED RESERVES 24.5 REQUIRED SERVES 24.0 23.5 23.0 22.5 i 22.0 I BILLIONS OF DOLLARS, NOT SEASONALLY ADJUSTED BANK BORROWINGS 1.0 -MEMBER EXCESS .5 ~ t RESERVES 4tjW WW4 an 1967 80 0 - " _________ 1968 --i Chart 2 MEMBER BANK DEPOSITS AND LIABILITIES TO OVERSEAS BRANCHES BILLIONS OF DOLLARS TOTAL MEMBER BANK DEPOSITS (CREDIT PROXY) SEAS ADJ WEEKLY AVERAGE OF DAILY FIGURES 294 290 286 282 278 274 2 7.0 266 262 258 254 8 LIABILITIES TO OVERSEAS BRANCHES (WEEKLY REPORTING BANKS) NOT SEAS ADJ, WEDNESDAYS 4 2 JJL.MJS J S 1967 D M J 1968 S D M 1969 Chart 3 MONEY SUPPLY AND BANK DEPOSITS SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS 190 SUPP MONEY 186 182 204 178 200 174 196 170 192 188 TIME DEPOSITS ADJUSTED (All Commercial Banks) 184 180 176 172 168 NEGOTIABLE 24 NOT SEAS 20 __ _ _ CD'S ADJ., WEDNESDAYS i _ 16 S J 1967 D M J 1968 5 M D 1969 Chart 4 DEMAND DEPOSITS AND CURRENCY SEASONALLY ADJUSTED WEEKLY AVERAGES OF DAILY FIGURES I I I I --I I -- I I BILLIONS OF DOLLARS 48 44 40 36 146 142 138 134 130 12 8 4 0 A S J 1967 D M J 1968 S D M 1969 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 sup ly of reserves Gold Federal Reserve credit (excl. float) 1/ Period stock Currency outside banks = Technical factors net 2/ Change in total reserves = Bank use of reserves Excess Required reserves es reserves 3/ Year: 6 (12/29/65 - 12/28/66) 1-67 (12/28/66 - 12/27/67) +3,149 +4,718 - 627 725 -2,243 + 805 +1,085 +1,111 -2,305 - 165 +1,522 +1,517 + 26 5 Year-to-date: (12/28/66 - 10/25/67) (12/27/67 - 10/23/68) 5/ +2,530 +4,286 - 152 - -1,609 -1,488 + 145 384 757 + 631 +1,232 - 247 475 Weekly: 1968--Sept. + 390 - 454 941 + 283 358 286 143 217 58 056 547 616 316 250 116 13 59 59 59 206 174 272 359 784 227 174 280 540 85 505 516 342 280 328 131 Oct. 4 11 18 25 p p p p 2 p 9 p 16 p 23 p -2,067 +1,119 + 31 + 602 - 437 506 PROJECTEDI 1968--Oct. Nov. _____________________________________________ I 89 1 - 140 + 475 - 440 - 105 - 105 + + + 195 365 420 - 65 - 120 235 555 60 + + - 170 220 150 20 + + - 95 350 15 145 + + - 95 350 15 145 I _______________ II 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 January 18, 1978. Explanation of Projections in Table B-1 1. Changes in Federal Reserve credit indicate reserves needed to offset projected changes in required reserves and factors affecting the supply of reserves. 2. Projected changes in currency outside banks reflect seasonal movements plus an allowance for growth of about $50 million per week. 3. Projected effects of Treasury operations, included in "technical factors," reflect scheduled and assumed calls in current two weeks and maintenance of Treasury balances with Federal Reserve at $1.0 billion thereafter. 4. Projected changes in required reserves assume the existing net reserve position of banks and the structure of interest rates in the market, as well as the current economic outlook. On the basis of these assumptions, projections reflect expected movements in bank credit and money in the period ahead, including the effects of such elements as the public's loan demand, repayments of previous loans, banks' investment preferences and willingness to supply loans, banks' desires and abilities to obtain time and savings deposits, and the Government's financing needs. The projections thus encompass normal seasonal developments, temporary bursts of loans demand and expected associated repayments not currently reflected by the seasonals, and whatever cyclical and growth demands for money and credit are expected in the projection period. Assumed Treasury financing operations include: $0.4 billion, October 30; $-0.4 billion, November 15; $2.5 billion, November 27. 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) Tl Total required reee Period reserves r: L.o6 (12/29/65 - _ Supporting U. S. Gov't. demand demand deposits Supporting private deposits Other than sea l chan seasonal changes Demand Time Seasonal changes Total Total 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 I/ Year-to-date: (12/28/66 - 10/25/67) (12/27/67 - 10/23/68) 2/ + 631 +1,232 + + 240 7 + 391 +1,225 - 587 253 + + 54 176 + + 872 838 + + 52 464 6 13 13 13 + + - 25 117 117 117 + + + 36 7 7 7 25 73 8 151 55 + + + + 27 27 29 34 Weekly: 1968--Sept. Oct. 5 +1,221 I/ 4 11 18 25 p p p p + + 13 59 59 59 + - 227 113 113 113 + + + 214 172 172 172 + + + 159 295 295 295 + - 2 9 16 2 3 p p p p + + + - 342 280 328 131 + + - 225 484 28 151 + + + 117 204 356 20 + + + 188 239 176 35 - + 6 + + - 7 + 157 + 20 7 + 104 15 + + 15 20 -- PROJECTED 1968--Oct. 30 - 105 - 306 + 199 + 15 + Nov. 6 13 + 95 350 + + 51 290 + 146 60 + 50 25 - 20 + 15 - 190 + 205 + 150 - 5 + 45 + 15 170 + 25 - 15 + 25 + 15 27 - 145 - -- 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. p - Preliminary. 1/ 2/ -- 1968 and $190 million 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 Foreign deposits and gold loans (Sign indicates effect on reserves) ACTUAL Year: 1966 (12/29/65 - 12/28/66) 1967 (12/28/66 - 12/27/67) + - Year-to-date: (12/28/66 - 10/25/67) (12/27/67 - 10/23/68) -1,488 + 145 Float Treasury operations 805 165 573 85 + + 531 275 -1,213 + 58 +1,056 + 547 616 + + - 150 801 62 659 + + 784 227 174 + 280 + + - 330 143 103 50 1968--Oct. - 440 - Nov. + + - 170 220 150 20 + Weekly: 1968--Sept. 4 p 11 p 18 p 25 p Oct. 2 -9 16 23 p p p p Other nonmember deposits and F. R. accounts 30 7 - 237 15 - 450 50 + + - 220 160 450 20 PROJECTED p - Preliminary. + 25 60 300 Table B-4 SOURCE OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions of dollars, based on weekly averages of daily figures) Reserve credit (Excl. float) Federal U.S. Government securities Total Federal Period Total holdings Bills B s O r Repurchase agreements Bankers' Agency Securitiess Member banks borrowings Year: (12/29/65 - 12/28/66) 1 19o7 (12/28/66 - 12/27/67) +3,14.9 +4,718 +3,069 +5,009 +2,158 +4,433 + 474 +1,153 + - .437 577 + - 26 19 + - 52 69 + - 2 203 Year-to-date: (12/28/66 - 10/25/67) (12/27/67 - 10/23/68) +2,530 +4,286 +3,177 +4,352 +2,868 +3,207 + 967 +1,176 - 658 31 - 26 -- - 131 56 - 490 10 Weekly: 1968--July Aug. Sept. Oct. 3 - 122 + 274 + 263 + 157 - 146 - 66 - 16 - 314 10 - 52 + 61 - 27 + 13 + 75 + 4 - 36 - 81 17 - 220 - 284 - 313 -- + 29 - 4 + 10 + 58 24 31 + + 60 226 + 90 214 + + 14 180 --- + 104 34 + 19 49 + - 169 37 7 + 490 + 352 + 76 -- + 276 - 10 + 135 - 9 - 161 - 19 15 + - 43 245 2 + 80 + 180 + 229 70 14 - 135 + 35 + 52 -- - 17 21 28 + - 294 385 + - 280 122 + + 392 59 --- - 112 181 4 + 390 + 312 + 241 + 71 11 - 454 - 634 - 659 + 12 18 25 + 941 283 + 711 214 + 698 214 2 9 16 23 -+1,119 31 + + 602 - 437 +1,048 + 171 + 430 - 211 + + + - 889 82 334 165 --- + + 96 152 --- --- + - - 13 -- 13 --- -- + + - 10 3 - -- -- + 13 -- 63 63 96 46 + + + -- 1 1 3 4 - 1 1 + + 5 1 53 47 65 + - 138 + 116 -183 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 reserves reserves Nonborrowed reserves reserves Total Total Required reserves Against private deposits T Total 1966--Jan. Feb. Mar. Demand 22,785 22,857 22,888 22,325 22,376 22,331 22,456 22,507 22,512 21,936 21,996 22,115 16,822 16,877 16,957 23,118 23,192 23,149 23,293 23,029 23,065 22,954 22,915 22,895 22,490 22,486 22,472 22,552 22,336 22,319 22,243 22,303 22,286 22,714 22,773 22,780 22,864 22,710 22,689 22,629 22,593 22,600 22,283 22,331 22,361 22,344 22,320 22,349 22,229 22,198 22,262 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 25,142 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 Sept. p Oct. p e 25,500 25,765 25.812 25,623 25,711 25,816 25,923 26,431 26.395 26,588 25,193 25,401 25,135 24,938 24,984 25,121 25,425 25,918 25,947 26,166 25,151 25,389 25.402 25,276 25,236 25,438 25,601 26,053 26,158 26,347 24,270 24,333 24,431 24,487 24,751 24,925 25,188 25,337 25,312 25,510 17,974 18,025 18,082 18,133 18,387 18,550 18,727 18,763 18,635 18,729 Apr. May June 1/ July Aug. Sept. Oct. Nov. Dec. p - Preliminary. e - Estimated. 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 (credit) 1/ Time Private demand deposits deposits 2/ U.S. Gov't. demand deposits 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 D Sept. p Oct. p e 274.7 277.0 278.0 276.9 277.3 278.8 280.9 785.9 288.0 290.9 149.9 150.2 151.2 151.3 151.5 151.8 153.8 156.5 119.4 119.7 120.1 120.4 122.1 123,2 124.3 124.6 5.4 7.1 6.7 5.2 3.7 3.9 2.7 4.8 159.0 161.4 123.7 124.4 5.3 5.1 p - Preliminary. 1/ 2/ 3/ e - Estimated. 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) Total member Week ending: bank deposits (credit 1/. Time deposits Private U. S. Gov't. demand demand 2/ _deposits deposits 5.5 5.0 5.5 5.7 3 10 17 24 277.4 276.6 278.6 276.7 151.6 151.5 151.4 151.0 120.3 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 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 7 14 21 28 284.6 285.0 286 4 287.0 155.3 156.0 156.8 157.4 124.9 124.7 4 11 18 25 286.7 287.0 287.9 288.9 157.9 158.3 159.1 159.6 124.7 124.1 123.5 123.4 2 9 16 23 290.3 160.1 160.7 161.0 161.8 124.0 123.9 125.1 124.2 1968--Apr. May Aug. Sept Oct. 283.6 290.3 289.9 290.0 120.1 121.7 120.0 125.0 123.9 3.7 3.1 3.1 2.7 4.1 4.0 4.2 5.2 4.7 4.9 4.1 4.6 5.4 6.0 6.2 5.7 3.7 4.0 p - Preliminary I/ 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 DPrivate Deoits Deposits 2/ 132.3 132.2 132.6 132.1 132.0 132.1 1 Time Deposits Adjusted 155.9 156.9 157.7 157.3 156.9 158.1 1966--July Aug. Sept. Oct. Nov. Dec. 169.9 170.0 170.5 170.2 170.2 170.4 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. 170.3 171.8 173.2 172.5 174.4 176.0 177.8 178.9 179.1 180.2 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 1968--Jan. Feb. Mar. Apr. May June July Aug.p Sept. p Oct. p e 182.3 182.7 183.4 184.3 186.1 187.4 189.4 190.2 40.6 40.7 41.1 41.4 41.6 42.0 42.2 42.5 42.6 42.8 141.7 141.9 142.2 143.0 144.5 145.4 147.2 147.7 146.7 147.6 184.1 185.2 186.7 187.1 187.6 181.0 181.3 189.3 190.4 174.8 177.2 179.4 180.6 182.0 183.5 188.2 190.4 193.8 196.7 199.5 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. p - Preliminary. e - Estimated. 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 1/ - Private Demand Deposits 2/ Time Deposits i 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 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 5 12 19 26 187.7 186.4 186.8 187.6 41.8 42.0 42.0 42.0 145.9 144.3 144.8 145.6 188.0 188.1 188.1 188.0 147.6 146.6 147.8 146.4 147.3 188.6 189.2 190.2 191.1 191.8 192.4 193.3 194.0 194.6 8 June 3 189.7 42.1 10 188.8 17 24 31 190.0 188.6 189.5 42.2 42.2 42.2 42.2 7 14 21 190.4 42.2 189.7 190.4 190.2 42.5 42. 6 42.7 148.1 147.1 147.8 147.5 Sept. 4 11 18 25 190. 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 Oct. 190.0 190.0 190.9 190.3 42.7 42.9 42.8 42.8 147.3 198.1 198.6 199.0 200.0 July Aug. 28 2 9 16 23 1/ 2/ 147.2 148.2 147.4 Includes currency outside the Treasury, the Federal Reserve and the vaults of all commercial banks. Includes (1) demand deposits at all commercial banks, other than those due to domestic commercial banks and the U.S. Government, less cash items in process of collection and Federal Reserve float; and (2) foreign demand balances of Federal Reserve Banks. p - Preliminary. 

Federal Reserve (1968, October 28). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19681029

@misc{wtfs_bluebook_19681029,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1968},
  month = {Oct},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19681029},
  note = {Retrieved via When the Fed Speaks corpus}
}