Relief in Seven Years of Stable Money 18g

of 1917-1920, and it might have had as disastrous
an end. Such a let-alone policy would not have safeguarded
 the dollar, but would have depreciated it,
in spite of its fixed weight.

Method of Discount and Open Market Control
So in 1922 the Federal Reserve System set up its
Open Market Committee to buy and sell securities,

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“EDERAL RESERVE CREDIT CONTROL.

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1927 1928 1329

Cuarrt 20~—Influence on industrial output through regulation of
the rediscount rate and open market operations. These have been
so used as to tend to keep the price level and business steady.

especially government bonds, for the purpose of influencing
 the credit situation. This committee was
reorganized in 1923 “with primary regard to the
accommodation of commerce and business, and to