Referendum on the report of the Special Federal Reserve Committee

Bibliographic data

Monograph

Identifikator:: 1827879114

URN:: urn:nbn:de:zbw-retromon-221388

Document type:: Monograph

Title:: Referendum on the report of the Special Federal Reserve Committee

Place of publication:: [Erscheinungsort nicht ermittelbar]

Publisher:: [Verlag nicht ermittelbar]

Year of publication:: 1930

Scope:: 53 S.; graph. Darst.

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

ARGUMENTS IN THE NEGATIVE Having had to consider the nature of the federal reserve system, in reaching a decision that courts do not have jurisdiction to review ‘he policies of reserve banks directed toward the credit situation, the federal Court of Appeals for the second circuit began its opinion with 1 brief description covering the reserve act and legislation which asreceded it. As a summary, this description is quoted here, as follows “The federal reserve act marked the end of a long struggle and was thought to ifford the solution of many difficulties. When the independent treasury bill was passed 'n 1846, the effect was completely to divorce the government from all connection with the money market by making it its own banker and by keeping government funds in ‘he vaults of independent treasury office banks. The public then had to depend on state banks for currency and credit, with a result that.in times of financial stress is well known. “To meet the necessities of the Civil War, national banks were established. They secame the official depesitaries of the government and furnished an enlarged currency secause of their ability to issue circulating notes against government bonds deposited with the treasurer of the United States. They were required to maintain reserves in certain cities based upon a percentage of their deposits. As the government debts of the Civil War became liquidated, the means for issuing currency lessened, though the Jusiness requirements of the country were expanding. In such a situation business orosperity inevitably promoted monetary stringency. Moreover, as the reserves were deposited in relatively few banks in the metropolitan centers, when financial stringencies arose, pressure always came on the banks, their deposits would be withdrawn, the rates ‘or call loans would advance and a liquidation of collateral and depreciation of values would ensue. “While the national banking system was a great improvement over what went sefore, it provided no central regulating force and furnished no adequate means for ontrolling interest rates or preventing or lessening financial stringencies and panics. The usual method of furnishing funds needed for business was for the Treasury to de- bosit moneys from its vaults in the national banks and to withdraw these deposits if hey were used too much in speculation. This was a rather ineffectual way of dealing with complicated and difficult situations. It was dependent too much upon the de ermination of a single official and lacked the information and guidance that a scientific ‘ederal banking system would afford. “To remedy the difficulties we have mentioned, the federal reserve act was passed The federal reserve banks have national charters and their stockholders are member yanks. Each federal reserve bank has nine directors, three chosen from the member (Continued on page 7) History Independent Treasury National Danks Treasury's Procedure Reserve Banks

Access restriction

Copyright

fullscreen: Referendum on the report of the Special Federal Reserve Committee

Monograph

Table of contents

Download

Monograph

This page

Image fragment

Citation links

Citation recommendation