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. July CONFIDENTIAL (FR) 17, 1970. MONETARY AGGREGATES AND MONEY MARKET CONDITIONS Recent developments (1) Pressures have moderated considerably in a number of financial markets since the last meeting of the Committee. In long- term credit markets, yields on newly-issued corporate bonds, State and local securities, and U.S. about 40-70 basis points. Treasury bond yields have declined by Most recently, however, there have been some signs of hesitation in this bond market rally. Also, investors are behaving quite selectively in regard to the quality of bond issues, and spreads between the highest rated and lower rated issues have increased. (2) In short-term markets, Treasury bill rates have dropped below levels prevailing in the first three weeks of June. The 3-month bill has generally fluctuated around 6-1/2 per cent since the last Committee meeting, but was most recently quoted at 6.40 per cent. Commercial paper rates, on the other hand, have tended to edge upwards, reflecting the fall-off issuers. of investor confidence in some large paper There was, more notably, a diminished availability of credit in this market, with outstanding nonbank-related paper declining by over $2 billion, or considerably more than seasonally, in the week ending July 1 and showing only a very minor recovery in the ensuing -2week. Much of the liquidation of outstanding commercial paper was financed out of bank loans. At all weekly reporting banks, in the two weeks ending July 8 loans rose by $2.5 billion (all of this increase occurred in the week ending July 1 and was concentrated in finance companies and businesses), loans to and the volume of large-denomination CD's expanded by $2.2 billion, mainly in the 30-89 day maturity area for which rate ceilings have been suspended. Credit availability in the commercial paper market appears to have improved in recent days; in general, banks have demonstrated that they are willing to stand behind commercial paper borrowers, by actually extending credit and by granting additional bank lines. is However, the practice of differential pricing spreading, and investors continue to be selective. attrition remains possible, though it Thus further net probably will not be of end-of- June dimensions. (3) With the need for bank financing enlarged by the actual and potential attrition of commercial paper, bank deposits grew more rapidly than earlier projected in the two statement weeks ending July 8, mainly as a result of a faster-than-expected rise in CD's. While money supply and private demand deposit growth in late June and early July was also substantially faster than anticipated, partial data suggest that the rate of growth subsided in the statement week just past and that the outstanding money supply in that week may be back to the level projected at the time of the last FOMC meeting. The churning associated with commercial paper market uncertainties -3may have been partly responsible for the apparently temporary bulge in the money supply; also there was a larger-than-seasonal drop in overnight Euro-dollar borrowings by U.S. commercial banks (which affected "cash items") around the end of the fiscal year. Reflecting these various influences, rates of increase for the money supply and bank credit in July are now projected to be considerably above those contemplated on the assumption of unchanged money market conditions at the time of the last FOMC meeting--even though the faster-than-expected rise in time deposits has been partially offset by a decline in use of non-deposit sources of funds. -4RECENT PATHS OF KEY MONETARY AGGREGATES (Seasonally adjusted, billions of dollars) Adjusted Credit Proxy Projected at Last Meetin/ Actual Results Money Supply Projected at Last Meeting' Actual Results 1970 Levels Month Levels 311.5 313.2 311.2 315.6 203.8 205.2 203.7 205.6 June 10 310.6 310.6 203.2 203.4 June 17 311.8 311.1 204.3 203.9 June 24 311.6 310.5 203.8 202.1 July 1 311.8 312.2 203.6 204.5 July 8 311.7 314.2 204.4 205.6 July 15 313.0 314.411 205.4 205.4/ June July Week ending % Annual Rates of Change lllll IF . Annual Rates of Change Month June 8.0 July 6.5 e/ 1- 7.4 17.0 pr -1.0 8.0 -1.2 11.0 pr Partly estimated. /Projected. Projections were based on an assumption of no change in money market conditions and allowed for the suspension of ceiling rates on 30-89 day CD's. (4) The recent moderation of overall financial pressures was facilitated not only by expansion of bank credit but also by a related reduction in the Federal funds rate to a weekly average level around -57-1/4--7-3/8 per cent during the three weeks ending July 8. In the week ending July 15, however, the Federal funds rate backed up to a 7-1/2 to 7-3/4 per cent range, and large System repurchase agreements were made during that week to keep it from moving even higher. During the two weeks ending on July 1, the lower level of the Federal funds rate was accompanied by net borrowed reserves that averaged around $940 million. During the two weeks ending July 15, however, member bank borrowing increased by $550 million to an average of $1.5 billion, with borrowings highest in the most recent statement week; and net borrowed reserves increased by around $600 million to $1.4 billion. The rise in borrowings was related chiefly to emergency discount window accommodation banks lending to previous issuers of commercial paper; of reports indicate that average bank borrowings of about $400 million were for such purposes during the past two statement weeks. Because of this special discount window assistance, there was no additional pressure on the Federal funds rate in the initial days as borrowings built up. But as borrowings were sustained at a high and rising level, pressures on the Federal funds rate did increase, although the funds rate has remained low relative to the level of member bank borrowings as compared with experience earlier in the year. (5) The following table summarizes seasonally adjusted annual rates of change in major aggregates for selected periods: Past Year (June over June) First Half of 1970 (June over December) Second Quarter of 1970 (June over March) Latest Month (June over May Total Reserves - 2.0 - 0.2 2.2 0.2 Nonborrowed Reserves - 0.3 1.8 4.0 5.8 Money Supply 2.4 4.1 4.4 - 1.2 Time and Savings Deposits 0.1 7.1 13.8 8.4 Savings accounts at nonbank thrift institutions 3.0 4.3 6.7 6.1 Total member bank deposits (bank credit proxy) - 0.7 3.4 6.1 6.2 Proxy plus Euro-dollars - 0.7 1.9 5.8 6.8 Proxy plus Euro-dollars and other nondeposit sources 1.2 3.6 6.7 7.4 Total loans and investments of all commercial banks 2.0 2.0 4.4 1.2 L&I plus loans sold outright to affiliates and foreign branches 3.4 4.0 5.4 1.2 21.8 14.0 14.3 -37.3 Member bank deposits and related sources of funds Commercial bank credit (month end) Non-bank commercial paper NOTE: All items are averages of daily figures (with "other nondeposit sources" based on an average for the month of Wednesday data), except the commercial bank credit series, which are based on total outstanding on last Wednesday of month, and the non-bank commercial paper series, which are end-ofmonth data. All additions to the total member bank deposit series are seasonally unadjusted numbers, since data have not been available for a long enough time to make seasonal adjustments. Prospective developments (6) Of the three financial markets which were of concern to the Committee in its last two meetings--the stock, bond, and commercial paper markets--pressures have abated on the first two but problems remain in the commercial paper market. In view of the continued pressure on profits and on liquidity in some areas, difficulties could arise in credit markets which cannot be foreseen at the moment--for example, if a large industrial or financial concern were to be forced into bankruptcy. Thus, it would appear reasonable for the FOMC to con- tinue to show some concern for the possible emergence of undue pressures on financial markets, although conditions at the moment do not seem to necessitate the degree of concern shown in the last two FOMC directives. In general, during the past few weeks, credit market conditions appear to have improved enough for the FOMC, if it wishes, to return to the type of emphasis on monetary aggregates that was contained in the directives issued in March and April. (7) Of the two alternatives shown below for the second paragraph, alternative A calls for continuing the same degree of concern with financial markets as the previous two directives. Alterna- tive B calls for giving more emphasis to monetary aggregates in dayto-day open market operations, while providing for modifications in case excessive pressures on financial markets develop. Both directives take account of the forthcoming Treasury refunding, to be announced on July 29, of $5-1/2 billion of publicly-held coupon issues maturing August 15. Alternative A "To implement this policy, in view of persisting market uncertainties and [DEL: liquidity strains] TAKING ACCOUNT OF THE FORTHCOMING TREASURY FINANCING, open market operations until the next meeting of the Committee shall continue to be conducted with a view to moderating pressures on financial markets. To the extent compatible therewith, the bank reserves and money market conditions maintained shall be consistent with the Committee's longer-run objective of moderate growth in money and bank credit, ALLOWING FOR taking account [DEL: and ofthe Board's regulatory action affective June-24 some]A possible CONTINUED[DEL: consequent] shifting of credit flows from market to banking channels." Alternative B in view of "To implement this policy, [DEL: persisting market uncertaintiesand liquidity strains;] THE COMMITTEE SEEKS TO PROMOTE MODERATE GROWTH IN MONEY AND BANK CREDIT OVER THE MONTHS AHEAD, ALLOWING FOR A POSSIBLE CONTINUED SHIFT OF CREDIT FLOWS FROM MARKET TO BANKING CHANNELS. SYSTEM open market operations until the next meeting of the Committee shall eentinue-to be conducted with a view to[DEL: moderating pressures on financial markets. To the extent compatible therewith; the] MAINTAINING bank reserves and money market conditions[DEL:maintained shall be consistent with THAT the committee's longer run objective], of moderate growth in money and bank credit;]taking account of the FORTHCOMING TREASURY FINANCING; PROVIDED, HOWEVER, THAT OPERATIONS SHALL BE MODIFIED AS NEEDED TO COUNTER EXCESSIVE PRESSURES IN FINANCIAL MARKETS, regulatory action quent shifting of SHOULD THEY DEVELOP [DEL: Board' effective June 24 and some possible conse- credi flows from markets to banking channels."] (8) Only one set of interrelationships among monetary aggregates, money market conditions, and interest rates more broadly is discussed in the analysis that follows. This set can be considered as consistent with either alternative A or B since, so far as the staff can judge now, money market conditions similar to those recently prevailing might be accompanied by a moderate growth in the money supply and no strong upward pressure on interest rates. The maintenance of money market conditions on a fairly even plane will need to condition open market operations in any event in view of the large Treasury financing that will be in the market during much of the inter-meeting period. The practical difference between the two alternatives would be in reactions of the Desk to misses in the aggregates. Under alternative B, the Desk would be freer to react--though equally subject to "even-keel" considerations as in alternative A--should the aggregates be deviating from the indicated path, or from whatever modification of it the Committee may wish to make. (9) The table below shows a growth path for monetary aggregates in which the money supply grows at a 5 per cent annual rate over the course of the third quarter and the adjusted bank credit proxy at a 14 per cent annual rate. -10Growth of Monetary Aggregates (Daily averages, seasonally adjusted) Adjusted Credit Proxy Annual Rate Levels of Change Months June July August September 311.2 315.6 318.8 322.0 3rd Qtr. September 1/ over June- 7.4 17.0 12.0 12.0 14.0 Money Supply Annual Rate Levels of Change 203.7 205.6 205.9 206.2 -1.2 11.0 2.0 1.5 Total Reserves Asam l Rate Levels of Change 27.9 28.0 28.4 28.5 0.2 4.0 18.5 5.0 9.5 5.0 1/ The daily average for the quarter of the outstanding money stock in the third quarter would be 4-1/2 per cent above that for the second quarter at an annual rate. Similar figures for the first and second quarters are 2.6 and 6 per cent, respectively. (10) The relatively rapid expansion in the adjusted bank credit proxy reflects continued sizable growth in large CD's, and hence in time deposits as a whole. Time deposits are expected to rise at about a 30 per cent annual rate in July, but the rate of expansion should slow down as banks work through their initial adjustment to the increased availability of short-term CD's and as the need for additional financing of commercial paper market attrition subsides. Banks are expected to continue to receive fairly sizable net inflows of other time and savings deposits, if their good experience during the recent midyear interest crediting period is any guide. Over the quarter as a whole total time and savings deposits are expected to rise at a 25 per cent annual rate, but such deposits other than large CD's may rise at only about half that pace, which would be just a little more rapidly than in the second quarter. It is expected -11that banks will substitute some of these expanded time deposits flows for non-deposit sources, thus probably resulting in at least some small net This contributes to the considerably slower rate of growth pay-down. for the credit proxy than for time deposits over the quarter. (11) Money supply growth is likely to taper off in the period ahead as financial markets remain generally calm and as U.S. deposits rise. Government The annual rate of increase in August and September is expected to drop to around 2 per cent, reflecting in part some further adjustment in cash balances following the recent midyear surge. (12) A weekly path for the monetary aggregates consistent with the monthly figures is shown below (daily average levels, seas. adj. in billions of dollars): Week ending Adjusted Credit Proxy Money Supply Total Reserves July 15 e / July 22 July 29 314.4 315.5 317.9 205.4 206.0 205.8 28.4 28.2 28.2 August 5 August 12 August 19 318.3 318.7 318.6 205.5 205.7 206.7 28.2 28.5 28.5 e/ Partly estimated. (13) In the period ahead money market conditions are likely to encompass a Federal funds rate generally in fairly wide 7-1/4--7-3/4 per cent range. Increased day-to-day financing demands associated with the forthcoming Treasury refunding, and with the most recent Treasury tax bill financing, will exert upward pressure on the funds rate. It is difficult at this point to predict bank demands for borrowings--and therefore pressures on the Federal funds market associated with any given -12level of borrowings--in view of uncertainties afflicting the commercial paper market, but we would expect some diminution of borrowing demands from recent levels. Member bank borrowings may move back closer to $1 billion, on average, with the Federal funds rate in above. the range noted Net borrowed reserves are likely to fluctuate around $900 million. (14) The 3-month Treasury bill per cent range over the next four weeks. rate may be in a 6-1/4--6-5/8 Over the short-run, the bill rate could be on the low side as a result of technical factors. bill positions are not large and are relatively low in Dealer In short bills. addition, there could be an enlarged demand for bills from holders of maturing Treasury securities who do not opt for the exchange. other hand, the Treasury is On the likely to need about $4 billion of new cash by late August or early September, some of which might be raised in the bill area, and some of which could be raised in connection with the August refunding. in Moreover, if, as suggested in paragraph (9), growth money and bank deposits slows as the summer progresses; lead to diminished demand for bills. However, should GNP turn out to be weaker than projected for the third quarter, bill on the low side in this may rates could remain reflection of reduced credit demands from other sectors of the economy. (15) Over the longer run--between now and early next year--we would expect bond yields to decline significantly further as the rate of inflation moderates. In the period immediately ahead, though, such -13interest rates could level off or even rise a bit, in a technical reaction to the large recent yield declines and as the volume of new corporate and State and local Government securities coming to market remains large in a period when the Treasury is engaged in a sizable refunding. However, if loan demands on banks were to weaken over the next few weeks, banks may be in a position to place more of their funds in securities, which could help both the Government and municipal market and lead to an improved tone for corporate offerings. Table 1 MARGINAL RESERVE MEASURES (Dollar amounts in millions, based on period averages of daily figures) Member Period Free reserves Excess reserves Banks R e s e r v e Major banks Total Borrowings C 1 t y O 8 N.Y. Outside N.Y Countr Other Monthly (reserves weeks ending in): - 477 359 836 131 302 149 253 February March - 580 635 256 202 836 837 62 58 255 233 215 254 304 293 April May 844 -1,116 187 243 1,031 1,359 85 123 411 346 260 397 275 493 June July August September October November December -1,078 -1,045 - 997 - 744 - 995 - 975 - 849 277 266 214 282 195 238 278 1,355 1,311 1,211 1,026 1,190 1,213 1,127 57 89 81 83 106 120 268 459 250 253 236 327 387 310 288 364 256 222 293 250 220 550 608 621 485 464 456 329 - 759 916 751 687 765 736 169 210 129 178 159 171 928 1,126 880 865 924 907 148 106 90 227 165 140 287 317 225 331 241 289 232 289 287 119 228 217 261 414 278 188 290 261 - 1969--January 1970--January February March April May June p 1970--Jan. 7 14 21 28 - 567 788 760 918 285 77 203 112 852 865 963 1,030 196 234 75 86 327 281 340 200 87 188 296 358 243 162 252 386 Feb. 4 11 18 -1,047 - 862 - 861 211 207 249 1,258 1,069 1,110 75 130 218 383 351 261 317 267 246 483 321 385 25 - 893 172 1,065 -- 271 329 465 4 11 18 25 - 638 861 667 840 198 71 150 96 836 932 817 936 32 169 146 11 46 349 216 289 419 190 185 357 339 '2L 270 279 1 8 - 610 317 339 179 949 496 232 -- 264 269 161 49 2q2 178 15 22 29 - 915 811 783 102 158 111 1,017 969 894 322 517 63 509 252 361 47 81 259 139 119 211 6 13 20 27 - 424 782 965 889 350 28 214 44 774 81n 1,179 933 93 150 332 86 248 254 310 150 220 202 243 247 21' 3 10 17 -1,029 - 721 - 390 195 136 268 1,224 857 658 269 195 -- 354 238 251 262 169 188 339 255 219 24 - 799 88 887 97 313 248 229 1p 8 p 15 p - 771 -1,235 -1,594 230 61 86 993 1,296 1,680 93 360 467 260 412 569 304 283 370 336 241 274 Mar. Apr. May June July p - Preliminary. 1 o- QA 450 Table 2 AGGREGATE RESERVES AND MONETARYVARIABLES Retrospective Changes, Seasonally Adjusted (In per cent, annual rates based on monthly aver es ui daljI Re s S Total Reserves Period A ag rve r e g a t e b Required Reserves Nonborrowed Reserves Mo total Member Bank Deposits I o Total ___adjusted p liti tI L aL y ar 5 i) y I Currn V , i a it ab I s (nrrsalrc ( i bink tie, dPpsits I y i Pt iva t IDemand P L)eposnts source, Annua Ily 1968 1969 + 7.8 - 1.6 + 6 0 - 3.0 + 7.9 - 1.2 + 9.0 + 7.2 t 7.4 + 7.1 +11 5 - 4.0 + 2.5 + 5 8 + - 3 Semi -annudlly Ist Half 1969 2nd Hall 1969 1st Hale 1970 + 0 7 - 3.9 - 0.2 - 3.7 - 2.4 + 1.8 + 1.0 - 3 3 - - 3.5 +4 3 + 6 5 + 1.7 - 4.U - 4,6 + 4 - - b + 3.4 + 4.1 + 8.3 Quarterly 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter + 7.9 + 1.5 +11.5 + 9.6 + 1.1 + 2.1 +15.0 + 5.3 + 7.5 + 1.8 +11.5 + 9.8 + 7.3 + 1.4 +13.6 +12.7 + + + + 5.5 8.7 6.8 7,1 + + + + + + + - + + + - 4.8 + - 2.2 9.4 + let 2nd 3rd 4th 1968 1968 1968 1968 Quarter 1969 Quarter 1969 Quarter 1969 Quarter 1969 Quarter 1970 nd Quarter 1970 21st Honthly 1968--April May June July August September Oktoler November December 1I 4 -- January February March April May lune July August SeptI.mer October hovembtr Decembr 1971--January February March April lay June p p - Prelimn.r. 0.1 1.2 9.3 1.4 2.8 4.7 4.8 0 1 1.7 0 2 8.6 2.0 Credit rl'xy + huro-d lars + other n o.lep, 0.6 4.9 1.5 0.6 5 7 + 2.9 + 7.1 6.9 7.8 7.6 6 b + + + + 5.4 8.7 6.8 7.0 + 7 6 + 3.0 +16.5 +17.3 4.1 4.5 -- + 6.5 + 6.3 + J.6 + + - 3.2 4.2 1.3 - + 0.1 + 1.2 + 6.2 -- + 7.0 + 9.4 + 2.9 + 2.8 Addendum Nonbank commercial paper na a n a. - 1.2 + 3.6 5.1 3 0 -13.3 Lunds 1 +27.6 +14.0 n a. - 4.3 +31.0 -- + 2.0 +22.4 + 0.4 +13.8 + 0.5 + 6.7 +13.2 +14.3 - 7.0 - 7.5 + 1.6 - 7 9+20.0 +13.1 + 0.8 +26.4 +23.8 - 2.9 + 2.5 - 0.4 + 4.0 - 2,5 + 2.6 + 0.6 + 6.0 + 3.8 + 4.4 - 6 9 + 2.5 + 8.8 + 7 6 +22.4 + 4.3 + 8.5 + 7 9 +12 1 - 6.9 + 0.9 +12,3 +13.8 +22.4 + 8.3 + 9 2 + 1,3 + 5.3 - 5.2 - 0.6 +11.3 + 9 4 +22.3 + 2.6 +10.4 + 8.. +10.2 - + + 2.2 + 7.3 + 9 4 +22.2 + 8.8 +13.3 +11.5 +13.0 +11.0 + 9.0 + 8.9 + 8.9 + 2.5 + 2.5 +11.3 + 7.4 + 8.7 + 8 7 + 5.7 + 8 6 + 8 5 + 2.8 411.; 5.6 +12.5 + 8.3 + 9.8 + 8.9 + 1.6 + 2.4 +11.3 + 7.2 + 7 5 - 3.4 - 3.8 - 8.5 +19.9 - 7 6 -22 5 - 5.6 --11 7 + 9 7 + 6 3 + 4.5 - 4.9 - 8,n -12.0 + 6.0 - 8 2 -19 3 - 2.8 + 7.7 -17 9 + 5.5 +12.1 +12 7 - 3 0 - 4.4 - 5.0 +14 3 - 8.6 -17.6 - 7 6 - 0.8 -10.4 + 9.3 + 6.9 - 3.2 - 1.2 -1.1 + 4.9 - 11.2 -10.2 -18.9 -11.3 + 1 7 - 9.2 + 9.7 -- + + + + 6.2 3.1 3.1 7 9 1.2 4 2 1.8 1.8 -0.6 1.2 1.8 + 2.8 + 8 3 + 8 2 1 2.7 + 8 1 8.1 + 5.4 + 8.0 - 2.6 +10.6 + 7.9 -- + 7.1 + 1.6 + 0.8 +11.0 - 1.6 + 3.1 + 1.6 - 4.7 - 0.8 - 0.8 - 1.6 + 2.3 -10.0 - 4.7 - 0.6 + 3.1 -12.0 -+21.3 -13.9 + 0.2 + 7.2 -15.6 + 7.5 +25.4 -19.0 + 5.8 + 5.0 -12.9 + 0.6 +22.2 -15.1 +0.9 - 4.2 + 9.0 + 5.2 +10.1 -12.4 - 8.0 -10.7 4 7.8 -15.5 - +14.0 +16.8 - 4.5 +11.2 +10.7 + 3. + 7.8 4 7.7 415.1 +14.1 +10.9 -- +14.4 +22.2 +10.3 +10.6 +1t.7 - 1.2 + 0.4 +71.3 +10.7 + 6.2 - 4 - 2.3 + 8.4 + 7.4 -37.3 1 5.2 + + + + + 5.9 1.2 + 5.8 5.0 + 3.2 5.0 + 1 + 3.2 + 2.6 +15 9 +17,0 +16.1 +18.3 +16.2 +16.6 -3.6 - 5.4 -18.5 -19.4 - 2.5 37 - 0.6 + 4.3 0.6 - 40.7 +11.7 +34.2 3.5 + 3.6 5.5 +.35.7 Table 3 AGGREGATE RESERVES AND MONETARY VARIABLES Seasonally Adjusted (Based on monthly averages of daily figures) Reserve Aggregates Period Monthly Total reserve orred Nonborrowed reserves / Rqu Required reserves (In millions of do lars) I Member Bank Deposits Supported by Reuired Reserves U.S. Gov't. Private Time demand demand member bank deposi deposits ii deposits deposits posts In b i Si on s Total 1968--January February March April May June July August September October Novesber December 26,134 26,352 26,451 26,298 26,353 26,547 26.715 27,213 27,311 27,504 27,685 27,964 25,818 25,961 25,755 25,606 25,626 25,889 26,186 26,675 26,860 27,066 27,095 27,215 25,774 25,889 26,078 25,964 25,952 26,196 26,402 26,893 26,951 27,185 27,376 27,609 275.1 277.4 278.5 277.3 277.8 279.5 281.7 286,9 289.0 292.2 295.0 298.2 1969--January February March April May June July August September October November December 28,139 28,060 27.972 27,775 28,235 28,056 27,530 27,401 27.402 27, 354 27,783 27,928 27,318 27,206 27,024 26,754 26,888 26,705 26,275 26,214 26,383 26,210 26,538 26,806 27,902 27,832 27,729 27,614 27,942 27,742 27,334 27,161 27,144 27,129 27,548 27,707 1970--January February March April Kay June p 28,001 27,722 27,723 28,216 27,890 27,894 26,966 26,615 26,782 27,350 26,916 27,047 27,823 27,523 27,536 28,046 27,692 27,713 Totl o Comnercial Credit Prcxy + y Moy S ddendum uro-dollars + time Mony upplybnk Nonbank deposits other nondep. Private urency deand adusted comercal caer adjusted sources of demand Crrency fugs paper deposits 3 4/ 2/ d 5.4 7.1 6.7 5.2 3.7 3.9 2.7 4.8 5.3 5.0 4.7 4.2 182.6 183.3 184.2 185.1 186.8 188.2 189.6 191.0 191.4 191.8 193.6 194.8 40.6 40.7 41.1 41 .3 41.6 41.9 42.1 42.4 42.7 42.8 41.2 43.4 142.0 142.6 143.2 143.8 145.3 146.3 147.5 148.6 148.8 149.1 150.5 151.4 184.1 185.8 187.2 187.7 188.2 188.6 191.1 193.8 196.4 199.4 202.1 204.9 128.4 129.1 128.9 129.4 130.0 130.5 130.5 129.9 129.2 128.9 129.1 129.4 5.4 6.7 4.8 5.9 5.9 4.0 2.4 2.9 4.4 3.1 5.6 4.9 195.8 196.3 196.8 198.1 198.3 199.0 199.3 199.0 199.0 199.1 199.3 199.6 43.5 43.8 44.1 44.2 44.5 44.8 45.0 45.3 '45. 2 45.6 45.9 45.9 152.3 152.5 152,6 154.0 153.8 154.2 154.4 153.8 153.7 153.6 153.4 153.7 203.2 202.4 202.3 202.3 201.7 200.8 197.7 194.5 194.1 193 5 193.4 194.1 130.1 128.5 129.8 131.4 131.4 130.0 5.3 5.6 5.9 5.2 3.0 4.8 201.1 46.1 46.4 46.7 47.0 47.6 47.8 155.0 153.0 154.8 156.2 156.2 155.9 192.1 192.0 194.3 197.9 199.6 201.0 149.9 150.2 151.2 151.3 151.5 151.8 153.8 156.5 158.9 161.5 163.5 165.8 119.7 120.1 120.6 120.8 122.7 123.8 125.2 125.6 124.8 125.7 126.8 128.2 297.0 296.7 294.2 295.4 295.1 292.6 288.0 285.3 285.7 283.5 285.8 285.8 163.2 161.0 160.5 160.1 159.3 158.1 155.1 152.5 152.1 151.5 151.1 151.5 284.8 282.9 286.2 290.2 289.1 290.6 149.4 148.8 150.6 153.5 154.6 155.6 199.3 201.5 203.3 203.9 203.7 305.5 305.7 25.5 26.1 26.6 27.5 27.9 28.2 29.0 304.8 303.4 306.1 309.6 309.3 311.2 29.1 30.0 30.0 31.8 32.0 31.0 307.5 305.7 303.8 304.2 302.2 and corporations and net interbank deposits. Private demand deposits include demand deposits of individuals, partnerships, all commercial banks. of vaults the and Reserve, Federal the Treasury, Includes currency outside the commercial banks and the U.S Government, less cash items in Includes (1) demand deposits at all commercial banks, other than those due to domestic Reserve Banks. Federal at balances demand foreign (2) and float; Reserve process of collection and Federal Excludes Interbank and U.S. Government time deposits. Includes increases in required reserves due to changes in Regulations M and D of approximately $400 million since October 16, 1969. Table 4 AGGREGATE RESERVES AND MONETARY VARIABLES Seasonally Adjusted Member Bank Deposits Supported by Required Reserves U.S. Gov't. Private Time Total Total Nonborrowed Required demand demand member bank reserves reserves reserves deasil. deposits .dait densits .." - -Id dr . 1I dero is .-(In millions of dollars) I n b lions 27,148 I 27,791 28,115 286.2 150.6 131.6 4.0 27,137 27,939 28,009 149.7 4.7 285.0 130.6 27,048 27,918 284.8 28,061 149.2 130.3 5.3 27,685 26,682 27,837 284.0 148.6 128.7 6.8 Period 1970--Jan. 7 14 21 28 CommercialiCredit Proxy + ibank time IEuro-dollars + Money Supply Reserve Aggregates Total a I 202.5 202.5 I Private deposits |other nondep. sources of adjusted demand uirrency (funds 4/ 21 Ideposits 3 2i i I 201.6 199.1 45.7 46.0 46.1 46.3 156.8 156.1 155.5 152.8 193.2 192.3 191.9 191.4 305.4 305.0 305.3 304.4 303.3 303.2 303.3 303.8 202.1 Feb. 4 11 18 25 27,959 27,739 27,705 27,597 26,614 26,720 26,545 26,538 27,724 27,549 27,512 27,449 282.8 282.7 282.7 283.2 148.4 148.4 148.8 149.1 128.6 127.9 128.6 128.8 5.8 6.4 5.3 5.4 199.0 198.5 199.5 199.9 46.3 46.1 46.4 46.4 152.7 152.2 153.1 153.4 191.1 191.4 192.0 192.6 Mar. 4 11 18 25 27,697 27,518 27,712 27,754 26,711 26.536 26,869 26,790 27,394 27,404 27,537 27,690 283.8 285.4 284.8 286.3 149.6 150.0 150.3 151.0 129.3 129.0 128.6 129.6 4.9 6.4 5.8 5.7 200.6 200.0 199.9 200.2 46.5 46.6 46.7 46.8 154.2 153.4 153.2 153.5 193.0 193.3 194.1 194.8 1 8 15 22 29 27,954 27,745 27,605 27,566 28,290 28,330 28,051 290.5 291.6 289.9 290.7 288.4 152.0 152.9 153.2 153.8 154.2 132.6 132.8 132.1 130.3 129.8 5.9 5.9 4.6 6.6 4.4 206.8 196.0 197.2 310.1 311.0 203.7 202.5 201.7 46.9 46.9 47.1 47.1 47.3 159.9 157.8 28.390 28,448 28 282 27,005 27,229 27.363 27,516 27,288 156.6 155.4 154.5 197.5 198.2 198.8 309.4 309.9 308.0 May 6 13 20 27 ?8,481 27,696 27,965 27,504 27,710 26,876 26,754 26,559 28,101 27,652 27,702 27,424 288.9 287.8 289.3 290.2 154 3 154.3 154.7 154.7 131.4 131.2 132.4 131.3 3.2 2.3 2.2 4.2 203.9 203.5 205.1 201 h 47.5 47.6 47.6 47 6 156.4 155.9 157.5 156 2 199.1 199.2 199.7 199.9 June 3 10 17 24 27,888 27,917 28,002 27,645 26,702 27,028 27,419 26,870 27,602 27,714 27,744 27,659 290.1 289.9 290.3 289.9 155,0 155.3 155.4 155.6 132.1 130.5 129.8 128.8 3.0 4.1 204.0 20J.4 203.9 202.1 47.6 47.7 47.8 47.8 156.4 155.7 156.0 154.3 200.0 200.5 200.7 201.0 309.0 307.9 S309.5 S10.6 310.8 310.6 311.1 310.5 31.7 32.1 32.0 32.3 32.1 32,4 31.7 32.0 I 8 15 28,034 27,674 27,836 27,016 26,389 26,266 27,794 27,654 27,902 291.5 294.3 294.6 156.7 158.5 159.7 129.5 131.8 131.1 5.3 204.5 205,6 205.4 47.8 48.1 48.2 156.6 157.5 157.2 202.3 204.5 205.9 S312.2 314.2 314.4 29.9 30.0 n.a. Apr. July i I I 204.7 5.1 5.5 4.0 3.8 I , _I 1 304.1 305.2 304.8 306.3 i p - Preliminary. corporations and net interbank deposits. Private demand deposits include demand deposits of individuals, partnerships, and banks. commercial all of vaults the and Reserve, Includes currency outside the Treasury, the Federal domestic commercial banks and the U.S Government, less cash items in Includes (1) demand deposits at all commercial banks, other than those due to at Federal Reserve Banks. blances demand foreign (2) and float, Reserve process of collection and Federal 4/ Excludes interbank and U.S. Government time deposits Weekly nonbank commercial paper are not seasonally adjusted. 5/ n.e. - Not available. 1/ 2/ 3/ Addendum- 5/ Nonbank commercial paper Table 5 SOURCE OF FEDERAL RESERVE CREDIT Retrospective Changes (Dollar amounts in millions of dollars, based on weekly averages of daily figures) _ _ Period _ Total Federal Reserve credit (Rrl. .Ec floatr fla ) U.S. _ Government securities Total hnli Federal Agency Repurchase c sp RBl11 IL +2,143 ( +4,279 ( --- Othhor Ote 311E noreem nts SC-Iirt, r . Bankers' ceg-e es e tn ac IXw Member banks bo i EX 'eb. 968 (12/27/67 - 12/25/68) 1969 (12/25/68 - 12/31/69) +3,757 +5,539 +3,298 +5,192 + 21 206 + S .3 67 + 52 35 + - 30 296 - 28 43 + 1 - 33 - 4 252 13 102 67 (+ 181) ( -) ) ( -(56) + + - 330 104 454 454 + + 51 30 55 - 20 + 24 S 6 + 44 S 41 228 189 41 45 44) 82) 182) 71) - 226 - 56 + - 89 82 + 37 S31 S 26 2 8 S 7 229 96 115 119 71) ) ) ) ) + + + 225 182 214 134 108 + + 34 37 24 14 6 + 18 8 32 28 16 13 453 521 48 75 43 - 62 + 36 S36 + 6 S 38 + 19 23 120 36 369 246 2 S 14 291 367 199 229 5 1 63 106 303 384 ) +1,176 + 707 + 514 + 245 ieekly: 1970--Jan. 7 14 - 423 -1,042 21 28 + - 41 671 144 979 57 738 - 174 683 57 738 9 10 22 56 (((+ (- Feb. 4 11 18 25 + + - 642 319 616 616 339 94 476 510 + + + - Mar. 4 11 18 25 + 324 213 532 82 13 307 602 163 + + - 213 307 513 81 1 8 15 22 29 + + + - 179 720 947 222 17 114 222 370 132 36 + + - 111 (+ 40 ( 156 ( 2( 72 ( Apr. ,118 195 88 359 +1,154 + 397 S 50 - 221 May 6 13 20 27 +1,047 + 131 + 512 - 664 June 3 10 17 24 + + - 639 213 224 449 326 158 453 678 + + + - July I p 8p 15 p + 546 + 231 +1,178 445 73 632 + - 255 143 539 678 (- ((+ (- ( ( ( ( 41) 245) 286) 181) --------- °- + 36 ) ) ) ) + - 445 (+ 145) 73 ( -) -( -) + .1___________ Figures in parenthesis reflect reserve effect of matth sale-purchase aggrement. Preliminary. + 202 138 138 + + ( -) ) ( -) ( -(145) _____________ - L ___________ + 71 15 86 + 632 j 22 6 - 16 99 + + + + + + 

Federal Reserve (1970, July 20). Bluebook. Bluebooks, Federal Reserve. https://whenthefedspeaks.com/doc/bluebook_19700721

@misc{wtfs_bluebook_19700721,
  author = {Federal Reserve},
  title = {Bluebook},
  year = {1970},
  month = {Jul},
  howpublished = {Bluebooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/bluebook_19700721},
  note = {Retrieved via When the Fed Speaks corpus}
}