War borrowing

Bibliographic data

Monograph

Identifikator:: 101124439X

URN:: urn:nbn:de:zbw-retromon-21219

Document type:: Monograph

Author:: Hollander, Jacob H. http://d-nb.info/gnd/136924867

Title:: War borrowing

Place of publication:: New York

Publisher:: The Macmillan Company

Year of publication:: 1919

Scope:: 1 Online-Ressource (215 Seiten)

Digitisation:: 2018

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: The price level

Collection:: Economics Books

THE PRICE LEVEL 191 credits so released went to swell commercial deposits, the volume of net deposits on which reserve is com puted actually declining $106,260,000. On the other hand the banks increased their investments other than in United States bonds and certificates and in loans secured by such obligations, by $531,035,000. Some part of this expansion was probably due to “ loans and other investments made in the form of currency, of which increasing amounts remain out side the banks in the pockets of the people.” 20 The remainder can perhaps be best accounted for as short-term investments made by the banks in prepa ration for renewed war borrowing, in face of a stringent administrative policy toward the conserva tion of credit. A reasonable interpretation of the foregoing ex hibits, imperfect and inconclusive as they are, would seem to be the following: Certificate borrowing has involved the creation of additional bank credits in the form of government deposits rather than the transfer to the new government account of existing commercial credits. In so far as there has been restraint upon the expansion of commercial borrow ing, it has been due to the reluctance of the banks to increase commercial loans and discounts during a period of heavy government short-term borrowing culminating in a Liberty Loan, and to the pressure put by the banks upon commercial borrowers, under like conditions, to apply incoming funds to the liquidation of existing loans. The primary stage in the process has thus been an expansion of credit in 20 Federal Reserve Bulletin, July, 1918, p. 664.

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