Word: rediscounted
(lookup in dictionary)
(lookup stats)
Dates: during 1930-1939
Sort By: most recent first
(reverse)
...Eccles bill placed the Federal Reserve Board under the thumb of the President by giving him power to appoint and remove at will the Governor and Vice Governor. To this Administration-controlled Board it gave centralized powers to fix rediscount rates and conduct open-market operations (powers that had previously belonged to the twelve regional Reserve Banks throughout the land); authority to alter reserve requirements, and to admit or deny virtually any collateral for rediscount. As the bill emerged after Senator Glass had worked on it, the Federal Reserve Board (renamed the "Board of Governors of the Federal Reserve System...
...banks must by law maintain, so that it might apply brakes to any runaway credit inflation. The Glass Bill limits the possible upping of reserve requirements to double the present ratios. The Eccles draft would have made any & all bank assets, short-or longterm, liquid or frozen, eligible for rediscount. The Glass Bill provides for special Reserve Bank advances on ineligible paper in emergencies only. And thus throughout Title II Governor Eccles and Senator Glass both achieved their original aims, although delimited and adjusted to banking and political realities...
...Rediscount rates are economic facts of little significance to the layman. Nonetheless, they are of vital importance. The controversy over the rate manipulations of the Federal Reserve Board in the summer and early fall of 1929 and its relation to the stock-market crash still rages. Thus news that the Bank of France has raised its rate of interest from 2 1-2 to 4 per cent, while apparently merely one more fact for statisticians and graph-makers, may conceivably have drastic repercussions...
...this is where he really should begin. We remember all too well the refusal of Mr. Mellon to countenance the raising of the rediscount rates in 1928 and 1929. And yet if he had followed Mr. Warburg's advice, we can readily imagine the storm of abuse which would have poured in upon him. Indeed, the great political problem of the central bank board will be to find men who will serve for the sake of a moral reward fearlessly when men shall revile them and persecute them, and say all manner of evil against them; to find...
Within the last few weeks, a strong movement has arisen inside the Government to make the Federal Reserve Banks and their branches active lending agencies accessible to the public instead of super banks that rediscount general banking obligations. The member banks naturally didn't like this...