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

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

357 sought an explanation for the phenomena discovered and meas- ured in other parts of this study. Given such interdependence, then, how are the uniformities and tendencies in, and the correlations between, series of banking data to be explained? The conditions out of which they arise may be sketched broadly and generally, attention being given primarily to the national aspects of our banking system and money market. The yearly fluctuations in business, roughly synchronizing by districts, give rise to sympathetic fluctuations in the demand for loanable funds. These are available in a market which is both national and international. Business, tending relatively at a given time to be in the same stage of activity the country over,!® requires for its financing the same sort of banking service—ex- pansion or contraction of loans, as the case may be. Banks in- dividually are free in a competitive market to use their resources as demanded. Moreover, they share competitively in the sources of funds—stocks of gold, savings, interbank borrowing, and the rediscount privilege. Being free, in both a loan and investment market to convert their earning assets into the form required to administer to business needs, and business needs tending to fluctuate simultaneously from year to year in different parts of the country, it is but natural to find that, with respect to the proportions of loans and discounts to earning assets, for instance, districts, relative to their own long-time levels, are similarly placed at the same time. But the state of business changes from year to year—not hap- hazardly, but with an approach to uniformity the country over. This fact is established, measures of general business oscillations being found in the fluctuations of bank debits. With these changes come different demands for the services of banks, the form of their resources being adjusted to suit business needs. If a rela- tively larger proportion of their earning assets is required in the form of loans to finance business expansion, then loans are ex- panded. On the other hand, if the earnings of business have made it possible for them to finance their needs without recourse to banks, then, relatively, the proportion of earning assets in the form of loans decreases and that of investments increases. That is, the proportions of the earning assets of banks or groups of banks by districts, represented by loans or by investments, tend 18 Account here is taken only of the cyclical and “long-time” uniformities. INTERPRETATION nN Q . DN i Oo - © Q < wv 0 £ oo ld © oO : Wr T ~ m { ~ OQ 4 -— oO oN 0 3] oO p DN 2 SO — Bef ag <8] 3s = = | ha = I= y F oO — - — 0 > N ! Io) = £) 0 N N 0 N 3 NG Ape =F « ¢ ~ » 3 o 5 n-

Access restriction

Copyright

fullscreen: Banking standards under the federal reserve system

Monograph

Table of contents

Download

Monograph

This page

Image fragment

Citation links

Citation recommendation