General Credit Control, Debt Management, and Economic Mobilization: Materials Prepared for ... by the Committee Staff1951 - 98 pages |
Common terms and phrases
amount anti-inflationary appendix August 18 bank credit bank reserves banking system billion Board of Governors borrowing cash central bank changes commercial banks countries credit controls credit expansion credit policy credit restriction Dartmouth College debt management defense demand deposits direct controls dollars Economic Report effect Federal Reserve banks Federal Reserve System Federal securities financing Fiscal Policies funds Government bonds higher interest rates important increase inflation inflationary pressures interest cost interest rates investment joint committee July June lending liquidity long-term maturing issues measures ment monetary policy necticut nonbank investors Ohio State University Open Market outstanding percent period postwar present Princeton private credit problem public debt purchase rate of interest refunding reserve requirements restraint savings bonds Secretary selling Government September short-term interest rates short-term rates short-term Treasury situation stability statement tion Treasury issues Treasury securities University of Buffalo University of Illinois versity yield
Popular passages
Page v - Compendium of Materials on Monetary, Credit, and Fiscal Policies. A collection of statements submitted to the Subcommittee on Monetary, Credit, and Fiscal Policies by Government officials, bankers, economists and others, November 7, 1949.
Page 37 - Second, actions by the Treasury and the Federal Reserve cannot ignore the tremendous changes in the financial structure of the country which have been...
Page 50 - ... for consideration, as the best alternative we have been able to devise, that all commercial banks be required as a temporary measure to hold some percentage of their demand and time deposits, in addition to present reserves, in a special reserve in the form either of short-term Government securities or cash, cash items, interbank balances, or balances with Federal Reserve banks. Such a requirement would be far less onerous for the banking system than any other effective method that has been suggested...
Page 36 - Treasury used more flexibility in its debt management program by allowing short-term rates to increase gradually. Later, beginning with the crisis in Korea, however, the considerations calling for stability in the Government-bond market became tremendously important. The credit of the United States Government has become the keystone upon which rests the economic structure of the world. Stability in our Government securities is essential. I do not think that we can exaggerate when we emphasize these...
Page 83 - The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest.
Page 1 - In view of this development and to support the Government's decision to rely in major degree for the immediate future upon fiscal and credit measures to curb inflation, the Board of Governors of the Federal Reserve System and the Federal Open Market Committee are prepared to use all the means at their command to restrain further expansion of bank credit consistent with the policy of maintaining orderly conditions in the Government securities market.
Page iv - Government ceilings may be necessary. In sum, fiscal and credit measures are the only adequate primary defense against inflation, and can minimize the extent of direct Government controls over wages, prices, production, and distribution. If adequate fiscal and credit measures are not employed, the country will face the ominous choice between continuous inflation and a prolonged application of widespread .Government price and wage controls.
Page 1 - But we believe that the advantages of avoiding inflation are so great and that a restrictive monetary policy can contribute so much to this end that the freedom of the Federal Reserve to restrict credit and raise interest rates for general stabilization purposes should be restored even if the cost should prove to be a significant increase in service charges on the Federal debt and a greater inconvenience to the Treasury in its sale of securities for new financing and refunding purposes.
Page 38 - ... developments in the Government bond market have repercussions which fan out through the entire economy. Both the size and the wide distribution of the Federal debt are unprecedented in comparison with the situations which faced us at the start of other periods of crisis. Under these circumstances, we have an obligation of the highest order not only to maintain the finances of the Government in the soundest possible condition, but also to fulfill our responsibilities to the millions of Federal...
Page 50 - The proposed special .reserve requirement has a number of important advantages over other methods of dealing with the problem of restricting the banks' expansion of credit: 1. The plan would have about the same effect in limiting credit expansion as an increase in primary reserve requirements, which was proposed as the third alternative in the 1945 annual report. It would enable the banks to retain the same volume of earning assets that they now hold, whereas, an increase in basic reserve requirements...