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 safe- 
guarded 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, 
i" 
20 
10) 
z 
100 
8 
“EDERAL RESERVE CREDIT CONTROL. 
00 2. 5 FeuiartE 
pe 
- 
i 
“sien 
hE ee 
TRAER TT PRR 
Ri 
EMBER] 
NOUS] AL 
RODUCTIOM 
egy 
SET 
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10 
1922 
1923 
i924 
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1826 
ae iE 
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 in- 
fluencing the credit situation. This committee was 
reorganized in 1923 “with primary regard to the 
accommodation of commerce and business, and to