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Focuses on inflation and its impact on an economy. Definition of inflation, noting it occurs during economic periods where prices are rising; Economic theory related to the measures that can be employed to fight inflation, including wage reductions and interest rate changes; Impact of borrowing and lending from banks on the money supply; Application of economic policy through the Federal Reserve Bank system and the tools available to the Federal Reserve; Reserve requirements for banks as a method to fighting inflation; Interest-rate changes as a method to curbing inflation; Discussion of open market sales of government securities as a method to fighting inflation; How banks prefer inflation be fought; Effects of inflation-fighting measures on the small borrower; Recommendation that federal budgets be balanced and federal spending on social welfare increase.

The article reflects on the statement of Robert S. McNamara, president of the International Bank for Reconstruction and Development on the rapid growth of population in poor countries. McNamara had proposed during an annual assembly of the World Bank with its affiliates that banks should double its lending over the next five years. Moreover, McNamara's style of upbringing world poverty through lending has been opposed among bankers as it forged a practice of highly orthodox banking.

The article reports on the organization of National Credit Corp. aimed at implementing the bank relief plan of U.S. President Herbert Clark Hoover by raising a 500-million-U.S. dollar pool in 1931. Only members are eligible for loans and all banks are welcome to join, but larger banks are preferred. The organization is expected to strengthen the securities markets for some time. The financing method offered by the pool could lead to inflation. The implications of the organization for investor confidence and bonds are detailed.