Banking standards under the federal reserve system

Bibliographic data

Monograph

Identifikator:: 1762969653

URN:: urn:nbn:de:zbw-retromon-142432

Document type:: Monograph

Title:: Banking standards under the federal reserve system

Place of publication:: Chicago

Publisher:: A. W. Shaw Company

Year of publication:: 1928

Scope:: xxxviii, 420 Seiten

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part V. General summary and interpretation

Collection:: Economics Books

INTERPRETATION 367 date is determined for rates above, below or equivalent to the average rate, it is found, in general, as shown in Table 207, that it is the rates which are high at a given time which decrease, and it is those which are low which increase from call to call. This is the same type of relation which is found to obtain in ratios of gross earnings to earning assets, and in other banking series with which this study deals. If, in the fluctuation of interest rates as measured by rates on customers’ paper rediscounted with the Federal Reserve banks, there is a tendency of regression to type, then such pattern is reflected in the gross earning ratios of banks in so far as the two are common. Discount rates, moreover, are related to in- terest rates of all types. There are no reasons for believing that those of one type can be seriously out of line with those of others in the same market. That this assumption is valid, so far as the activities of banks are concerned, is confirmed by the tol- lowing facts. 1. The direction of change from year to year, for 34 cities, in the annual average money rates customarily charged customers is the same on the six major types of loans given in Table 208. TABLE 208 ANNUAL MoNEY RATES CUSTOMARILY CHARGED CUSTOMERS ON Six Major TYPES OF LoANS. AVERAGED FOR ALL CITIES* VEAR 1919... 1920. . 1921... 1922... 1923..... 1024........ 102. ... . NUMBER OF CITIES _USTOMERS’ CoM- MERCIAL LOANS 4-0 "fonths iy {NTER- Bank LOANS 3 23 ~8 ro 8s fr 5.80 Loans SECURED 8Y LIBERT BonDs "3 “4 - 3.02 LOANS SECURED BY IR STOCK AND BoNDs Time Demana 7 1 13 40 19 20 ox _- 19 i i 32 -. 7X we FL *Winfield W. Riefler, “Differentials in Rates Charged Customers,” Federal Reserve Bulletin, December, 1927, p. 804. 2. “Differentials in rates . . . . charged customers . . . . are not characteristically differentials that can be ascribed to risk, to maturity of the loan, or to the type of collateral by which it is secured.” 21 21 Winfield W. Riefler, “Differentials in Rates Charged Customers,” Federal Re- serve Bulletin, December, 192%, p. 804.

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