Search

The article reports on the debate over the proposal by the U.S. administration to expand the eligibility provisions of the Federal Reserve Act in 1931. Government securities, paper arising from actual commercial transactions and agricultural paper are qualified for rediscount at the Federal Reserve banks under the current law. This strict limitation is aimed at protecting reserves. The major types of business seeking eligibility for their paper include those in the area of installment selling, real estate and corporate securities.

The article reports that instalment companies' eligibility petition at the U.S. Federal Reserve Banks may lead to inflation. Inflation requires using more money or credit actively and thus help improve business, however, an increase in credit is much more favored than an increase in currency. The notes which the finance companies have bid for eligibility are those of the companies, which lend their proceeds to instalment buyers.

The article discusses various aspects of economic conditions in the U.S. It is stated that easy money policy of Federal Reserve Banks is being neutralized short-term financing policy of the Treasury. It is stated that the low interest rates for short term paper/bonds for the more immediate maturities indicate that the banks and other financial institutions have ample funds.

The article reports on the U.S. Federal Reserve Board's making of time-payment paper or installment credit eligible for rediscount. The meaning of "commercial transaction" was liberalized by the Reserve's decision that consumer credit extended for the purpose of goods distribution is a business loan and thus eligible for rediscount at Federal Reserve banks. Effects of finance company notes' parity with commercial loans are explored, such as the improvement of installment paper as a bank risk.

The article profiles Laurence Frederick Whittemore, president of the pulp-and-paper firm Brown Co. and former president of the New York, New Haven & Hartford Railroad. His uncle and aunt helped him through Pembroke Academy in New Hampshire after he was orphaned at the age of seven. Whittemore has managed Fellows & Sons from 1922 to 1925. He was also named president of the Federal Reserve Bank of Boston in Massachusetts in 1946.

The article discusses the relevance on the rise of the rediscount rate by the U.S. Federal Reserve Banks with the rate of dollars. It mentions that the volume of paper resold to the Federal Reserve worth to 2 billion dollars marked the importance of rediscounting and considered as the highest figure since early 1920s. It also notes that the rediscount rate would be a great factor towards the advancement of a better dollar if it discourages inflationary borrowing or if it aids debt rearrangement.

The article discusses the use of the input-output technique by the Federal Reserve Bank of Saint Louis, Missouri in its study on the underdevelopment of the 8th Federal Reserve District in the U.S. in 1952. The study's vice-president Frederick L. Deming states that the technique identifies the weak spots in the district. Labor productivity in the district is said to be low in relation to its population due to limited industrialization. It is noted that the study has offered a view of import-export balance in the district.

The article reports that the banking credit system has been paralyzed by the government's inadequate filling of the credit vacuum. The Reconstruction Finance Corp. (RFC) has turned into a secondary Federal Reserve bank where it processes transactions ineligible for discount with the Federal Reserve. RFC's program to expand credit is supported by the Comptroller of the Currency, the Farm Credit Administration, and the Home Owners' Loan Corp.

The article reports that the Eurodollar bond market declined owing to the explosion in U.S. interest rates exemplified by the increase in the Federal Reserve discount rate. Bankers' speculation was debunked by the worsening inflation, forcing Paul A. Volcker to push up short-term rates since he took over as chairman of the Federal Reserve in August 1979. According to S. A. Constance, managing director of Manufacturers Hanover Ltd., investors in fixed-rate Eurodollar bonds are heavily losing.

The article reports that the U.S. Federal Reserve banks is expecting to operate a huge volume of government bonds in order to establish high-grade bonds.

The article reports on the exposition of the policies and views of 12 Federal Reserve Banks to the U.S. public for the first time in December 1931 due to an investigation by the Glass subcommittee of the Senate Banking and Currency Committee.

The article focuses on the allegations on the board of governors of the U.S. Federal Reserve System for improper domination over the 12 federal reserve banks.

The article reports on the decision of the U.S. Federal Reserve System to tighten up credit to avoid inflation. Twelve Federal Reserve Banks were ordered to raise their discount rates, not to cut expansion but to control economic growth. Among the signs of a tightening credit are a drop in price of long-term government bond and the rejection of loan applications from an increasing number of businessmen.

The article features the 11-man Federal Open Market Committee, part of the U.S. Federal Reserve System that controls the U.S. government's monetary policy. The committee controls the expansion and contraction of the 25 billion U.S. dollar security portfolio owned by the 12 Federal Reserve Banks. The article also names several committee members, including James Vardaman, Junior, president of a St. Louis bank, banker A. L. Mills, Junior of Oregon and Hugh Leach, president of the Richmond Bank.

The article offers news briefs on the finance of the U.S. The raw silk mills supplies to New York fell to 23,116, the lowest since 1931, as the prices of raw silk rose sharply and people shifted to rayon. First, 76,000,000 dollars and then 174,000,000 dollars were removed from the deposits of the Federal Reserve member banks, due to Illinois tax law. New York Trust Co. has assets worth 433,963,406 dollars, and capital, surplus and undivided profits of 40,400,462 dollars.

The article explore the state of the Federal Reserve Banks in 1936, which saw declines in commercial borrowing and its excesses being split into Reserve System owners and the profits of the system.

The article reports on the statements issued by U.S. Treasury Secretary Henry Morgenthau Jr. in May 1935, which seem to favor the creation of an independent banking board aside from the government ownership of the Federal Reserve banks.

The article reports on the fear of bankers on inflationary tendencies in Washington. Senators showed their support to the presidential bonus veto, while bankers point out the danger of forced credit expansion in the omnibus banking bill. A cited loophole in the bill is its failure to corral all banks into the Federal Reserve system. The bill states that any type of bank investment can be used as collateral for borrowing at Federal Reserve banks and as a support for Federal Reserve notes. An easy money policy though caused interest rates to decline.

The article reports on the developments of the U.S. money market in 1934. The U.S. banks are restricting the free flow of money in the industry. Critics have said that this restriction is slowing economic recovery and partially off-setting inflation efforts. The U.S. government security holdings rose by 22 million dollars, reserves with the U.S. Federal Reserve Bank rose by 73 million dollars and there was drop in all loans except security during the week ending January 1934.

The article reports on the impact of U.S. President Franklin Delano Roosevelt's monetary policy on financial markets. With reference to the gold message of Roosevelt, all the gold must be nationalized, revaluated, and two billion fund should be set aside for the control of foreign exchange value of the dollar. It also discusses the indifferent response of the Federal Reserve banks, the cash balance in the U.S. Treasury, and the ineffective meetings of annual stockholders of the large banks.

The article discusses the Reserve district committees that serve as the nucleus for a nationwide movement to tap into the potential power of private initiative to promote economic recovery in the U.S. in 1932. Federal Reserve banks have launched a campaign to promote credit expansion by member banks through the banking and industrial committees set up in key Reserve districts. It cites the Cleveland, Ohio district committee which surveyed the credit needs of 3,000 smaller business concerns and has urged member banks to respond more leniently.

The article offers information on the impact of the Great Depression of 1929s consequences on the markets of credits and gold in the U.S.. It mentions that member bank credit and commercial credit expand in support of the federal funding. It informs that the export of gold has been ceased. It reveals that the Reserve Banks authorities have bought some governments and bills to keep its open market operations active.

The article discusses issues that need to be addressed by the U.S. Congress in 1932. The Congress has to decide on how to address the issue of depression including whether to use due process of banking or a new process of law, rely on the Reserve policy or remake prices by Congressional decree, to meet the demands of inflation. It states that the Goldsborough bill would grant the authority to the Federal Reserve Bank (FRB) to raise the present wholesale commodity level of prices.

The article reports on the U.S. Federal Reserve System's clarification of its regulations for loans and discounts at Federal Reserve Banks. Under the terms of the 1935 Banking Act, such banks have the authority to make advances to member banks on their own notes that are secured to the satisfaction of the lending bank. An expansion in bank credit to business is indicated in the rise in loans of weekly reporting member banks since November 1936. A contraction in bank credit is also observed despite the decline in deposits.

The article reports on the plan of the Treasury Department to use gold profit to pay off the national debt of the U.S. and retire the circulation of national bank notes in 1935. The Currency inflation advocates and conservative financial interests agreed and cheered this plan of the Treasury. However, currency expansion advocates proclaim the plan since the Treasury needs to turn over gold certificates to the Federal Reserve Banks to match the retired national bank notes.

The article reports on the findings of a statistical study on the attitude of depositors to the Federal Reserve Bank and the benefit of its easy money policy to small borrower in the U.S.

The article offers information on the U.S. money market for the week of March 8, 1933. Huge transactions during the week that have failed to attract widespread attention is deemed a reflection of the severity of the depression and the changes in credit that are taking place. It talks about the increase in note circulation, the decreasing gold stock of the Federal Reserve Bank, and a February 1933 net loss of 174.5 million U.S. dollars. The drop is attributed to gold allotment for foreign account and domestic hoarding.

The article comments on the function of Federal Reserve Banks in the U.S. in 1932. It explains how Reserve banks influence the trends of price levels and business activity and mentions the success of Reserve authorities in implementing open-market policy. It also describes the status of money rates in large financial centers.

The article offers business news briefs from the U.S. as of August 1937. The U.S. Federal Reserve Board has decided to lower the rediscount rates for many of its Federal Reserve Banks, a move which is seen as another one of President Franklin Roosevelt's measures to maintain confidence and speed economic recovery. Lumber companies had managed to slash down the number of unrealized orders for their products, resulting in a lower backlog that what was set in 1936. Steel manufacturers have increased production despite an expected downturn in orders.

The article discusses a survey of business conditions in the twelve Federal Reserve districts of the U.S. for May 1930. It reports on the growth of check payments and building operations in some districts, while life insurance sales declined. It also reports on the irregularity in savings deposits in several districts. The decline in member bank indebtedness to the Federal Reserve System has stopped or practically stopped in every district. Money rates for commercial loans show less decline.

This section offers news briefs related to business finance in the U.S. as of April 1959. Universal CIT Credit Corp. announced plans to make repair and modernization loans available to U.S. homeowners. Operating companies listed at the New York Stock Exchange (NYSE) will be required to solicit proxies from their stockholders effective December 31, 1961. Pilot installations of high-speed electronic check-sorting machines has been announced by the 12 regional Federal Reserve Banks.

The article reports on the move of the New York banks, lead by Bankers Trust Corp., increasing prime rates to borrowers. It stresses the big question whether the Federal Reserve will lock the interest rate structure by raising discount rates. It mentions the disagreement in the Federal Reserve which has kept the discount rate at 3% since last August 1957. Moreover, the impact of increasing prime rates on the money market is depicted.