DOCSLIB.ORG

Secrets of the Federal Reserve: the London Connection Pt.4

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Secrets of the Federal Reserve: the London Connection Pt.4 Secrets of the Federal Reserve: The London Connection Pt.4 Get Your Free 150 MB Website Now! SECRETS OF THE FEDERAL RESERVE The London Connection By Eustace Mullins pt. 4 CHAPTER TWELVE The Great Depression R.G. Hawtrey, the English economist, said, in the March, 1926 American Economic Review: "When external investment outstrips the supply of general savings the investment market must carry the excess with money borrowed from the banks. A remedy is control of credit by a rise in bank rate." The Federal Reserve Board applied this control of credit, but not in 1926, nor as a remedial measure. It was not applied until 1929, and then the rate was raised as a punitive measure, to freeze out everybody but the big trusts. Professor Cassel, in the Quarterly Journal of Economics, August 1928, wrote that: "The fact that a central bank fails to raise its bank rate in accordance with the actual situation of the capital market very much increases the strength of the cyclical movement of trade, with all its pernicious effects on social economy. A rational regulation of the bank rate lies in our hands, and may be accomplished only if we perceive its importance and decide to go in for such a policy. With a bank rate regulated on these lines the conditions for the development of trade cycles would be radically altered, and indeed, our familiar trade cycles would be a thing of the past." This is the most authoritative premise yet made relating that our business depressions are artificially precipitated. The occurrence of the Panic of 1907, the Agricultural Depression of 1920, and the Great Depression of 1929, all three in good crop years and in periods of national prosperity, suggests that premise is not guesswork. Lord Maynard Keynes pointed out that most theories of the business cycle failed to relate their analysis adequately to the money mechanism. Any survey or study of a depression which failed to list such factors as gold movements and pressures on foreign exchange would be worthless, yet American economists have always dodged this issue. The League of Nations had achieved its goal of getting the nations of Europe back on the gold standard by 1928, but three-fourths of the world’s gold was in France and the United States. The problem was how to get that gold to countries which needed it as a basis for money and credit. The answer was action by the Federal Reserve http://www.theforbiddenknowledge.com/hardtruth/federal_reserve_secrets4.htm[11/11/2013 1:04:38 PM] Secrets of the Federal Reserve: The London Connection Pt.4 System. 143 Following the secret meeting of the Federal Reserve Board and the heads of the foreign central banks in 1927, the Federal Reserve Banks in a few months doubled their holdings of Government securities and acceptances, which resulted in the exportation of five hundred million dollars in gold in that year. The System’s market activities forced the rates of call money down on the Stock Exchange, and forced gold out of the country. Foreigners also took this opportunity to purchase heavily in Government securities because of the low call money rate. "The agreement between the Bank of England and the Washington Federal Reserve authorities many months ago was that we would force the export of 725 million of gold by reducing the bank rates here, thus helping the stabilization of France and Europe and putting France on a gold basis."89 (April 20, 1928) On February 6, 1929, Mr. Montagu Norman, Governor of the Bank of England, came to Washington and had a conference with Andrew Mellon, Secretary of the Treasury. Immediately after that mysterious visit, the Federal Reserve Board abruptly changed its policy and pursued a high discount rate policy, abandoning the cheap money policy which it had inaugurated in 1927 after Mr. Norman’s other visit. The stock market crash and the deflation of the American people’s financial structure was scheduled to take place in March. To get the ball rolling, Paul Warburg gave the official warning to the traders to get out of the market. In his annual report to the stockholders of his International Acceptance Bank, in March, 1929, Mr. Warburg said: "If the orgies of unrestrained speculation are permitted to spread, the ultimate collapse is certain not only to affect the speculators themselves, but to bring about a general depression involving the entire country." During three years of "unrestrained speculation", Mr. Warburg had not seen fit to make any remarks about the condition of the Stock Exchange. A friendly organ, The New York Times, not only gave the report two columns on its editorial page, but editorially commented on the wisdom and profundity of Mr. Warburg’s observations. Mr. Warburg’s concern was genuine, for the stock market bubble had gone much farther than it had been intended to go, and the bankers feared the consequences if the people realized what was going on. When this report in The New York Times started a sudden wave of selling on the Exchange, the bankers grew panicky, and it was decided to ease the market somewhat. Accordingly, Warburg’s National City Bank rushed twenty-five million dollars in cash to the call money market, and postponed the day of the crash. The revelation of the Federal Reserve Board’s final decision to trigger the Crash of 1929 appears, amazingly enough, in The New York Times. On April 20, 1929, the Times headlined, "Federal Advisory Council Mystery __________________________ 89 Clarence W. Barron, They Told Barron, Harpers, New York, 1930, p. 353 144 Meeting in Washington. Resolutions were adopted by the council and transmitted to the board, but their purpose was closely guarded. An atmosphere of deep mystery was thrown about the proceedings both by the board and the council. Every effort was made to guard the proceedings of this extraordinary session. Evasive replies were given to newspaper correspondents." Only the innermost council of "The London Connection" knew that it had been decided at this "mystery meeting" to bring down the curtain on the greatest speculative boom in American history. Those in the know began to sell off all speculative stocks and put their money in government bonds. Those who were not privy to this secret information, and they included some of the wealthiest men in America, continued to hold their speculative stocks and lost everything they had. http://www.theforbiddenknowledge.com/hardtruth/federal_reserve_secrets4.htm[11/11/2013 1:04:38 PM] Secrets of the Federal Reserve: The London Connection Pt.4 In FDR, My Exploited Father-in-Law, Col. Curtis B. Dall, who was a broker on Wall Street at that time, writes of the Crash, "Actually it was the calculated ‘shearing’ of the public by the World Money-Powers, triggered by the planned sudden shortage of the supply of call money in the New York money market."90 Overnight, the Federal Reserve System had raised the call rate to twenty percent. Unable to meet this rate, the speculators’ only alternative was to jump out of windows. The New York Federal Reserve Bank rate, which dictated the national interest rate, went to six percent on November 1, 1929. After the investors had been bankrupted, it dropped to one and one-half percent on May 8, 1931. Congressman Wright Patman in "A Primer On Money", says that the money supply decreased by eight billion dollars from 1929 to 1933, causing 11,630 banks of the total of 26,401 in the United States to go bankrupt and close their doors. The Federal Reserve Board had already warned the stockholders of the Federal Reserve Banks to get out of the Market, on February 6, 1929, but it had not bothered to say anything to the rest of the people. Nobody knew what was going on except the Wall Street bankers who were running the show. Gold movements were completely unreliable. The Quarterly Journal of Economics noted that: "The question has been raised, not only in this country, but in several European countries, as to whether customs statistics record with accuracy the movements of precious metals, and, when investigation has been made, confidence in such figures has been weakened rather than strengthened. Any movement between France and England, for instance, should be recorded in each country, but such comparison shows an average yearly discrepancy of fifty million francs for France and eighty-five million francs for England. These enormous discrepancies are not accounted for." The Right Honorable Reginald McKenna stated that: __________________________ 90 Col. Curtis B. Dall, F.D.R., My Exploited Father-in-Law, Liberty Lobby, Wash., D.C. 1970 145 "Study of the relations between changes in gold stock and movement in price levels shows what should be very obvious, but is by no means recognized, that the gold standard is in no sense automatic in operation. The gold standard can be, and is, usefully managed and controlled for the benefit of a small group of international traders." In August 1929, the Federal Reserve Board raised the rate to six percent. The Bank of England in the next month raised its rate from five and one-half percent to six and one-half percent. Dr. Friday in the September, 1929, issue of Review of Reviews, could find no reason for the Board’s action: "The Federal Reserve statement for August 7, 1929, shows that signs of inadequacy for autumn requirements do not exist. Gold resources are considerably more than the previous year, and gold continues to move in, to the financial embarrassment of Germany and England. The reasons for the Board’s action must be sought elsewhere.
Load more

Recommended publications
  • Memorandum of Discussion
    MEMORANDUM OF DISCUSSION A meeting of the Federal Open Market Committee was held in the offices of the Board of Governors of the Federal Reserve System in Washington, D. C., on Monday, November 27, 1967, at 9:30 a.m., at the call of Chairman Martin. PRESENT: Mr. Martin, Chairman 1/ Mr. Brimmer Mr. Francis Mr. Maisel Mr. Mitchell Mr. Robertson Mr. Scanlon Mr. Sherrill Mr. Swan Mr. Wayne 1/ Messrs. Ellis, Hickman, and Galusha, Alternate Members of the Federal Open Market Committee Mr. Irons, President of the Federal Reserve Bank of Dallas Mr. Holland, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Mr. Broida, Assistant Secretary Mr. Hackley, General Counsel Mr. Brill, Economist Messrs. Baughman, Garvy, Hersey, Koch, Partee, and Solomon, Associate Economists Mr. Holmes, Manager, System Open Market Account Mr. Cardon, Legislative Counsel, Board of Governors Mr. Fauver, Assistant to the Board of Governors Mr, Williams, Adviser, Division of Research and Statistics, Board of Governors Mr. Reynolds, Adviser, Division of International Finance, Board of Governors 1/ Left the meeting at the point indicated. 11/27/67 -2 Mr. Axilrod, Associate Adviser, Division of Research and Statistics, Board of Governors Miss Eaton, General Assistant, Office of the Secretary, Board of Governors Miss McWhirter, Analyst, Office of the Secretary, Board of Governors Messrs. Bilby, Eastburn, Mann, Brandt, and Tow, Vice Presidents of the Federal Reserve Banks of New York, Philadelphia, Cleveland, Atlanta, and Kansas City, respectively Mr. MacLaury, Assistant Vice President, Federal Reserve Bank of New York Mr. Deming, Manager, Securities Department, Federal Reserve Bank of New York Mr.
    [Show full text]
  • Studies in Applied Economics
    SAE./No.128/October 2018 Studies in Applied Economics THE BANK OF FRANCE AND THE GOLD DEPENDENCY: OBSERVATIONS ON THE BANK'S WEEKLY BALANCE SHEETS AND RESERVES, 1898-1940 Robert Yee Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise The Bank of France and the Gold Dependency: Observations on the Bank’s Weekly Balance Sheets and Reserves, 1898-1940 Robert Yee Copyright 2018 by Robert Yee. This work may be reproduced or adapted provided that no fee is charged and the proper credit is given to the original source(s). About the Series The Studies in Applied Economics series is under the general direction of Professor Steve H. Hanke, co-director of The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise. About the Author Robert Yee ([email protected]) is a Ph.D. student at Princeton University. Abstract A central bank’s weekly balance sheets give insights into the willingness and ability of a monetary authority to act in times of economic crises. In particular, levels of gold, silver, and foreign-currency reserves, both as a nominal figure and as a percentage of global reserves, prove to be useful in examining changes to an institution’s agenda over time. Using several recently compiled datasets, this study contextualizes the Bank’s financial affairs within a historical framework and argues that the Bank’s active monetary policy of reserve accumulation stemmed from contemporary views concerning economic stability and risk mitigation. Les bilans hebdomadaires d’une banque centrale donnent des vues à la volonté et la capacité d’une autorité monétaire d’agir en crise économique.
    [Show full text]
  • Lorne Bair Rare Books, ABAA 661 Millwood Avenue, Ste 206 Winchester, Virginia USA 22601
    LORNE BAIR RARE BOOKS CATALOG 26 Lorne Bair Rare Books, ABAA 661 Millwood Avenue, Ste 206 Winchester, Virginia USA 22601 (540) 665-0855 Email: [email protected] Website: www.lornebair.com TERMS All items are offered subject to prior sale. Unless prior arrangements have been made, payment is expected with or- der and may be made by check, money order, credit card (Visa, MasterCard, Discover, American Express), or direct transfer of funds (wire transfer or Paypal). Institutions may be billed. Returns will be accepted for any reason within ten days of receipt. ALL ITEMS are guaranteed to be as described. Any restorations, sophistications, or alterations have been noted. Autograph and manuscript material is guaranteed without conditions or restrictions, and may be returned at any time if shown not to be authentic. DOMESTIC SHIPPING is by USPS Priority Mail at the rate of $9.50 for the first item and $3 for each additional item. Overseas shipping will vary depending upon destination and weight; quotations can be supplied. Alternative carriers may be arranged. WE ARE MEMBERS of the ABAA (Antiquarian Bookseller’s Association of America) and ILAB (International League of Antiquarian Book- sellers) and adhere to those organizations’ strict standards of professionalism and ethics. CONTENTS OF THIS CATALOG _________________ AFRICAN AMERICANA Items 1-35 RADICAL & PROLETARIAN LITERATURE Items 36-97 SOCIAL & PROLETARIAN LITERATURE Items 98-156 ART & PHOTOGRAPHY Items 157-201 INDEX & REFERENCES PART 1: AFRICAN-AMERICAN HISTORY & LITERATURE 1. ANDREWS, Matthew Page Heyward Shepherd, Victim of Violence. [Harper’s Ferry?]: Heyward Shepherd Memorial Association, [1931]. First Edition. Slim 12mo (18.5cm.); original green printed card wrappers, yapp edges; 32pp.; photograph.
    [Show full text]
  • List of Certain Foreign Institutions Classified As Official for Purposes of Reporting on the Treasury International Capital (TIC) Forms
    NOT FOR PUBLICATION DEPARTMENT OF THE TREASURY JANUARY 2001 Revised Aug. 2002, May 2004, May 2005, May/July 2006, June 2007 List of Certain Foreign Institutions classified as Official for Purposes of Reporting on the Treasury International Capital (TIC) Forms The attached list of foreign institutions, which conform to the definition of foreign official institutions on the Treasury International Capital (TIC) Forms, supersedes all previous lists. The definition of foreign official institutions is: "FOREIGN OFFICIAL INSTITUTIONS (FOI) include the following: 1. Treasuries, including ministries of finance, or corresponding departments of national governments; central banks, including all departments thereof; stabilization funds, including official exchange control offices or other government exchange authorities; and diplomatic and consular establishments and other departments and agencies of national governments. 2. International and regional organizations. 3. Banks, corporations, or other agencies (including development banks and other institutions that are majority-owned by central governments) that are fiscal agents of national governments and perform activities similar to those of a treasury, central bank, stabilization fund, or exchange control authority." Although the attached list includes the major foreign official institutions which have come to the attention of the Federal Reserve Banks and the Department of the Treasury, it does not purport to be exhaustive. Whenever a question arises whether or not an institution should, in accordance with the instructions on the TIC forms, be classified as official, the Federal Reserve Bank with which you file reports should be consulted. It should be noted that the list does not in every case include all alternative names applying to the same institution.
    [Show full text]
  • Civic and Political Status
    Civic and Political Status CIVIL LIBERTIES HE PERIOD between July 1954 and the autumn of 1955 saw a marked im- Tprovement in the general attitude on civil liberties questions in the United States. Many factors contributed to this. A decreased fear of immi- nent war was accompanied by a calmer approach to internal policies. The absence of any evidence of new Communist penetration, either in govern- ment or in other fields, led to a widespread feeling that the danger from con- spiratorial Communist activity had declined. On the other hand, the pub- licity received by a number of cases in which security procedures had been patently misused led to an increased realization of the dangers arising from measures which departed from the spirit of the Bill of Rights. And there could be little doubt that the clash between Sen. Joseph R. McCarthy and the Army, followed by the report of the Senate Select Committee to Study Censure Charges (Watkins Committee) and the Senate censure vote (AMER- ICAN JEWISH YEAR BOOK, 1955 [Vol. 56], p. 184-85), tended to bring the ap- proach generally described as "McCarthyism" into disrepute. Security Program The change was least noticeable in the legislative field, where it took the form of a decrease in new restrictive legislation rather than in the disap- perance of any already on the books. There was, however, a marked altera- tion in both the interests and the behavior of legislative investigating com- mittees. In the executive department, security procedures changed little, and injustices still appeared to be frequent. But when—as increasingly hap- pened—they were brought to public attention, there was a new readiness and even eagerness to remedy them.
    [Show full text]
  • The Balance Sheet Policy of the Banque De France and the Gold Standard (1880-1914)
    NBER WORKING PAPER SERIES THE PRICE OF STABILITY: THE BALANCE SHEET POLICY OF THE BANQUE DE FRANCE AND THE GOLD STANDARD (1880-1914) Guillaume Bazot Michael D. Bordo Eric Monnet Working Paper 20554 http://www.nber.org/papers/w20554 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2014 We are grateful from comments from Vincent Bignon, Rui Esteves, Antoine Parent, Angelo Riva, Philippe de Rougemont, Pierre Sicsic, Paul Sharp, Stefano Ungaro, François Velde, as well as seminar participants at the University of South Danemark, Sciences Po Lyon, Federal Reserve of Atlanta and Banque de France. The views expressed are those of the authors and do not necessarily reflect the views of the Bank of France, the Eurosystem, or the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2014 by Guillaume Bazot, Michael D. Bordo, and Eric Monnet. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The Price of Stability: The balance sheet policy of the Banque de France and the Gold Standard (1880-1914) Guillaume Bazot, Michael D. Bordo, and Eric Monnet NBER Working Paper No. 20554 October 2014 JEL No. E42,E43,E50,E58,N13,N23 ABSTRACT Under the classical gold standard (1880-1914), the Bank of France maintained a stable discount rate while the Bank of England changed its rate very frequently.
    [Show full text]
  • Sixty-Fifth Congress, First Session.
    - SIXTY-FIFTH CONGRESS, FIRST SESSION. - 99 . ~ I ... atnngrtssinnal ·Jtcnrd. PROCEEDINGS AND DEBATES OF THE SIXTY -FIFTH _CONGRESS, FIRST SESSION. Hale Lewis Pomerene Stone SENATE. Hardwick Lodge .Ransdell Sutherland Hitchcock McCumber Reed Swanson lfoNDAY, ApriZ 13, 1917. Rusting McKellar Robinson Thompson James . McLean Saulsbury Tillma n The first session of the Sixty-fifth Congress commenced this Johnson, Cal. Martin Sbafroth Townsend day at the Capitol, in the city of Washington, in pursuance of Johnson, S.Dak. Myers Sheppard Underwood Jones, N. Mex. Nelson Sherman Vardatna n the proclamation of the President of the United States of the Jones, Wash. New Shields Wadsworth 21st <lay of March, 1917. Kellogg Norris Simmons Walsh The VICE PRESIDENT (THOMAS R. MARSHALL, of Indiana) Kendrick Overman Smith, Ariz. Wa rren Kenyon Owen Smith, Ga. Watson called the Senate to order at 12 o'clock noon. King Page Smith, Md. Weeks Rev. J. L. Kibler, of the city of Washington, offe1·ed the fol­ Kirby Penrose Smith, Mich. Williams Knox Phelan Smith, S.C. Wolcott lowing prayer : La Fo1lette Pittman Smoot In the simplicity of our hearts, 0 God, and in the very depths Lane Poindexter Sterling of humility we come into Thy presence. At the opening of this extraordinary session of Congress we come first to seek Thy Mr. FLETCHER. I desire to announce that my colleaguo guiding hand. Amid the confusion and violence of the world [Mr. TRAMMELL] is unavoidably absent on account of sickness in his family. to-day w~ can not know the things that may shortly come to pass. Lead us, 0 God, through the darkness until the day Mr.
    [Show full text]
  • A Body of Text: Physical Culture and the Marketing of Mobility
    A BODY OF TEXT: PHYSICAL CULTURE AND THE MARKETING OF MOBILITY by Andrea Dale Lapin B.A., Douglass College at Rutgers, The State University of New Jersey 1994 M.A., University of Pittsburgh 1998 Submitted to the Graduate Faculty of The Kenneth P. Dietrich School of Arts and Sciences in partial fulfillment of the requirements for the degree of Doctor of Philosophy University of Pittsburgh 2013 UNIVERSITY OF PITTSBURGH THE KENNETH P. DIETRICH SCHOOL OF ARTS AND SCIENCES This dissertation was presented by Andrea Dale Lapin It was defended on April 15, 2013 and approved by Jonathan Arac, PhD, Andrew W Mellon Professor, Department of English William Scott, PhD, Associate Professor, Department of English Brenton Malin, PhD, Associate Professor, Department of Communication Thesis Director: Nancy Glazener, PhD, Associate Professor, Department of English ii Copyright © by Andrea Dale Lapin 2013 iii A BODY OF TEXT: PHYSICAL CULTURE AND THE MARKETING OF MOBILITY Andrea Dale Lapin, PhD University of Pittsburgh, 2013 Drawing on Althusserian notions of ideology and Bourdieu’s understanding of bodily hexis, A Body of Text seeks to reframe Physical Culture as an artifact worthy of serious study, more complex and less reactionary than its beefcake-and-sentiment reputation might suggest. This dissertation addresses the story of Physical Culture magazine from three different perspectives, reading the magazine through lenses of media history, medical history and social context, in order to understand the ways in which class operated on and through the body. In contrast to nearly every other publication in the early twentieth century, Physical Culture suggested that class mobility was possible, and that success would naturally follow improvement of body and health.
    [Show full text]
  • The North American White Supremacist Movement: an Analysis Ofinternet Hate Web Sites
    wmTE SUPREMACIST HATE ON THE WORLD WIDE WEB "WWW.HATE.ORG" THE NORTH AMERICAN WIDTE SUPREMACIST MOVEMENT: AN ANALYSIS OF INTERNET HATE WEB SITES By ALLISON M. JONES, B.A. A Thesis Submitted to the School ofGraduate Studies in Partial Fulfilment ofthe Requirements for the Degree Master ofArts McMaster University © Copyright by Allison M. Jones, October 1999 MASTER OF ARTS (1999) McMASTER UNIVERSITY (Sociology) Hamilton, Ontario TITLE: "www.hate.org" -- The North American White Supremacist Movement: An Analysis ofInternet Hate Web Sites AUTHOR: Allison M. Jones, B.A. (York University) SUPERVISOR: Professor V. Satzewich NUMBER OF PAGES: v, 220 ii Abstract This thesis is a qualitative study ofNorth American white supremacist organisations, and their Internet web sites. Major issues framing the discussion include identity and racism. The thesis takes into consideration Goffman's concepts of'impression management' and 'presentation ofself as they relate to the web site manifestations of 'white power' groups. The purpose ofthe study is to analyse how a sample ofwhite supremacist groups present themselves and their ideologies in the context ofthe World Wide Web, and what elements they use as a part oftheir 'performances', including text, phraseology, and images. Presentation ofselfintersects with racism in that many modern white supremacists use aspects ofthe 'new racism', 'coded language' and'rearticulation' in the attempt to make their fundamentally racist worldview more palatable to the mainstream. Impression management techniques are employed in a complex manner, in either a 'positive' or 'negative' sense. Used positively, methods may be employed to impress the audience with the 'rationality' ofthe arguments and ideas put forth by the web site creators.
    [Show full text]
  • Monetary Policy Rules in the Pre-Emu Era Is There a Common Rule?1
    WORKING PAPER SERIES NO 659 / JULY 2006 MONETARY POLICY RULES IN THE PRE-EMU ERA IS THERE A COMMON RULE? ISSN 1561081-0 by Maria Eleftheriou, Dieter Gerdesmeier 9 771561 081005 and Barbara Roffia WORKING PAPER SERIES NO 659 / JULY 2006 MONETARY POLICY RULES IN THE PRE-EMU ERA IS THERE A COMMON RULE?1 by Maria Eleftheriou 2, Dieter Gerdesmeier and Barbara Roffia 3 In 2006 all ECB publications will feature This paper can be downloaded without charge from a motif taken http://www.ecb.int or from the Social Science Research Network from the €5 banknote. electronic library at http://ssrn.com/abstract_id=913334 1 The paper does not necessarily reflect views of either the European Central Bank or the European University Institute. 2 European University Institute, Economics Department, e-mail: [email protected]. Supervision and support by Professor Helmut Lütkepohl and Professor Michael J. Artis are gratefully acknowledged. 3 European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany; fax: 0049-69-13445757; e-mail: [email protected] and e-mail: [email protected] Very useful comments by F. Smets and an anonymous referee are gratefully acknowledged. © European Central Bank, 2006 Address Kaiserstrasse 29 60311 Frankfurt am Main, Germany Postal address Postfach 16 03 19 60066 Frankfurt am Main, Germany Telephone +49 69 1344 0 Internet http://www.ecb.int Fax +49 69 1344 6000 Telex 411 144 ecb d All rights reserved. Any reproduction, publication and reprint in the form of a different publication, whether printed or produced electronically, in whole or in part, is permitted only with the explicit written authorisation of the ECB or the author(s).
    [Show full text]
  • The Discount Mechanism in Leading Industrial Countries Since World War Ii
    FUNDAMENTAL REAPPRAISAL OF THE DISCOUNT MECHANISM THE DISCOUNT MECHANISM IN LEADING INDUSTRIAL COUNTRIES SINCE WORLD WAR II GEORGE GARVY Prepared for the Steering Committee for the Fundamental Reappraisal of the Discount Mechanism Appointed by the Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis The following paper is one of a series prepared by the research staffs of the Board of Governors of the Federal Reserve System and of the Federal Reserve Banks and by academic economists in connection with the Fundamental Reappraisal of the Discount Mechanism. The analyses and conclusions set forth are those of the author and do not necessarily indicate concurrence by other members of the research staffs, by the Board of Governors, or by the Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis THE DISCOUNT MECHANISM IN LEADING COUNTRIES SINCE WORLD WAR II George Garvy Federal Reserve Bank of New York Contents Pages Foreword 1 Part I The Discount mechanism as a tool of monetary control. Introduction 2 Provision of central bank credit at the initiative of the banks • . , 4 Discounts 9 Advances . , 12 Widening of the range of objectives and tools of monetary policy 15 General contrasts with the United States 21 Rate policy 33 Quantitative controls 39 Selective controls through the discount window 48 Indirect access to the discount window . 50 Uniformity of administration 53 Concluding remarks 54 Part II The discount mechanism in individual countries. Introduction 58 Austria . f 59 Belgium 71 Canada 85 France 98 Federal Republic of Germany 125 Italy 138 Japan 152 Netherlands l66 Sweden 180 Switzerland 190 United Kingdom 201 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St.
    [Show full text]
  • Why Was Monetary Policy So Inept?
    This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: The Great Contraction, 1929–33 Volume Author/Editor: Milton Friedman and Anna J. Schwartz Volume Publisher: Princeton University Press Volume ISBN: 0-691-00350-5 Volume URL: http://www.nber.org/books/frie65-1 Publication Date: 1965 Chapter Title: Why Was Monetary Policy So Inept? Chapter Authors: Milton Friedman, Anna Jacobson Schwartz Chapter URL: http://www.nber.org/chapters/c9280 Chapter pages in book: (p. 111 - 123) THE GREAT c:0NTRAcTI0N 7. Why Was Monetary Pohcy SoIncp:.' We trust that, in light of the preceding sections ofthis chaptet, the adjective used in the heading of this one to characterize monetary policy during the critical period from 1929 to 1933 strikes OUt readersas it does us, as a plain description of fact. The monetarysystem collapsed, hut it clearly need not have done so. The actions required to prevent monetary collapse didnot call for a level of knowledge of the operation of the banking systemor of the work- ings of monetary forces or of economic fluctuations whichwas developed only later and was not available to the Reserve System. Onthe contrary. as we have pointed out earlier, pursuit of the policies outlined by the System itself in the 192O's, or for that matter by Bagehot in 1873,would have prevented the catastrophe. The men'ho established thFederal Reserve System had many misconceptions about monetary theoryand banking operations. It may well be that a policy in accordancewith their understanding of monetary matters would not have preventedthe decline in the stock of mone' from 1929 to the end of 1930.562 But theyunder- For example, H.
    [Show full text]