The nation’s basic money supply, M1, jumped...

The nation’s basic money supply, M1, jumped $5.6 billion in mid-October, the Federal Reserve Board announced. The Fed said M1 rose to a seasonally adjusted $759.5 billion in the week ended Oct. 19 from a revised $753.9 billion the previous week. M1 includes cash in circulation, deposits in checking accounts and non-bank travelers checks. The period covered in the latest M1 report ended on the day that stock prices collapsed with a fury that sent the Dow Jones industrial average down a record 508 points. It is believed that many investors withdrew money from stocks and put it in bank accounts, including some that are included in M1. As a result, analysts said they expect larger-than-average growth in the money supply over the next few weeks.