Word: rediscounted
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...Rediscount Collateral. The fourth and final main argument of Mr. Simmons was the somewhat startling suggestion that the Federal Reserve System (the twelve parent banks) be allowed to rediscount stock market loans. Stock market securities are not accepted as collateral at the twelve Reserve Banks, which must make their loans on government or open market paper. But, maintained Mr. Simmons, the supply of restricted securities on which the Federal Reserve System can make loans is rapidly dwindling. The government is paying off its national debt at the rate of a billion dollars a year, and "in 15 years there...
...outburst and a Federal Reserve Board meeting, the market began April in a nervous condition, and stock averages sweated off over four or five points while call money got up to 15%. The Board, however, did nothing; Secretary of the Treasury Mellon being quoted as saying that neither the rediscount rate nor the Mitchell resignation were even discussed. Merger Mitchell. ''Very interesting," was all that Banker Mitchell said when told of the Glass attack. Mr. Mitchell's mind was occupied with an important matter - the merger of National City with Farmers' Loan and Trust. Announced early...
Specifically, Mr. Warburg urged a raising of the Federal Reserve 5% rediscount rate. "When commercial paper commands 3¾% and when bankers acceptances sell at 3?%, rediscount rates of 4½% and 5% seem grotesquely impotent and out of line. . . . Conditions such as these call to mind the painful events of the years...
Money Market. There is no argument but that a Federal Reserve rediscount rate of 5½% would be more in keeping with present credit conditions than the 5% rate now obtaining. Last week call money was at 8% to 12%, time loans at 7¾%, commercial paper at 5¾%, bankers' acceptances (60 days) at 3 3/8%. The Federal Reserve rediscount rate was at the very bottom of the money market, was lagging far behind the general trend toward higher and higher interest rates. Theoretically an index to prevailing conditions, the 5% rediscount rate was actually an exception to them. That...
Mellon. The Federal Reserve Board made no reply to Mr. Warburg. Neither did it increase its rediscount rate. During the entire Federal Reserve-Wall Street controversy there has been a strong undercurrent of rumor concerning dissension among Reserve Board Members. It has been claimed that Andrew Mellon, Secretary of the Treasury, has been opposed to any rise in the rediscount rate, that his influence has kept the Board from taking drastic measures. Neither personal nor political reasons are lacking to make such an attitude logical for Mr. Mellon. Not only is the Bull Market an evidence of Republican Prosperity...