Schutz dem Arbeiter!

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Monograph

Identifikator:: 829324011

URN:: urn:nbn:de:zbw-retromon-85896

Document type:: Monograph

Author:: Hitze, Franz http://d-nb.info/gnd/118705288

Title:: Schutz dem Arbeiter!

Place of publication:: Köln

Publisher:: Bachem

Year of publication:: 1890

Scope:: 1 Online-Ressource (VIII, 264 S.)

Collection:: Economics Books

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

232 The Stock Market Crash—And After enabled them to take over one billion dollars of mar- ket loans that had been made by outside lenders. This action Mr. Roberts justifies, although he admits that ‘‘it might be said to be for a purpose not con- templated in the Reserve Act.” He adds: “It is to be considered, however, that the ultimate purpose of the Reserve system is to stabilize and protect the general credit situation. In pursuance of this purpose the action was amply justified, and on the basis of this justification it is possible to go even further and say that intervention would be warranted for the purpose of averting an impending disaster. This would be admitting that the exercise of judg- ment would be warranted in a critical situation, which, of course, would mean that opinions might differ among the Reserve authorities as to the gravity of a situation.” Mr. Roberts defends the restriction of use which member banks could make of Federal Reserve funds against financing transactions in stocks and bonds. These funds were, according to the intentions of those who framed the Federal Reserve Act, to be used only for short loans, to aid in financing seasonal turnover of trade. This financing is limited and the funds are soon released, whereas “there is no end to the amount of credit which might be tied up in financing stocks and bonds,” and this would not be of short duration. The Reserve banks had kept out of a situation that involved an increase in brokers’ loans from three billion dollars to eight and one-half bil- lion dollars within two and one-half years and were

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