Word: crediters
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Dates: during 1940-1949
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...there was small hope of any quick boost in production, the obvious thing to do was curb the amount of spending money. Ttie way to do this, said Federal Reserve Board Chairman Marriner F. Eccles, was to use a few old methods (keep taxes high, restrict housing and installment credit) and one new one. He wanted Congress to give FRB the power to boost maximum reserve requirements of commercial banks (the amount of deposits not available for loans) from the present 26% to 51%. This was the "mildest way," Eccles insisted, of curbing credit...
Eccles flatly said that he "would not recommend" using this power. FRB was still frightened by the slumps of 1920 and 1929. A big boost in rediscount rates had preceded them, and many still blamed the credit curb for the slumps...
...didn't it do so? As for Eccles' new plan, Sproul gave it the back of his hand. Said he: "It would expose us to grave monetary disorders. ... A program of modest steps may well be cumulative in effect, in the present sensitive money and credit situation...
...reason for the cautious steps was plain. Despite the hullabaloo over inflation, many a businessman knew that the threat of a recession is very real. No one wanted to swing the club on credit and risk killing the boom...
...third quarter, promising a gross business of $78,000,000 in 1947 (against $57,000,000 last year). That started Cohu thinking about new planes. Last week, about ten months after Frye left, TWA ordered twelve new Connies. The line's once bad credit had improved enough so that some 14 banks put up the $15,000,000 to pay for them. TWA had not yet flown through all the rough weather. But the air was smoother than it had been for years...