Word: rediscounted
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Dates: during 1920-1920
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...certificates; drastic taxation will inevitably follow. Under such conditions the amortization of our national debt would be impossible. As an alternative the people may save. New assets would then be accumulated. The inflation of loans which the Federal Reserve Banks has been fighting to the extent of raising the rediscount rates to 7 percent would cease. Our national debt could then be genuinely paid for by savings...
...weeks ago the Federal Reserve Bank in Kansas City inaugurated an entirely new system of rediscounts. The Reserve Board had come to the conclusion that, despite the prevailing high rates of interest, it was still far too easy for mercantile houses in the district to finance unwarranted expansion. This condition of affairs seemed directly traceable to the fatal facility with which commercial paper could be rediscounted at the Reserve Bank by the national banks, the amount acceptable for rediscount from any individual institution being limited virtually only by that banks' supply of eligible paper. In numerous instances, in order...
...remedy such a situation, a sliding scale of rediscount rates was adopted, notes beyond a certain amount sent in by member banks for rediscount being charged an advancing rate of interest, reaching even nine and ten percent when the total ran exceptionally large. The banks were thus hindered from increasing unduly the regular lines of credit extended to their customers, and the business firms, in their turn, unable to borrow further except at exorbitant rates, were forced when in need of ready money to realize on their merchandise. A late season, tardy deliveries, a generally slow market, and the necessity...
...operation of the Federal Reserve Act. By virtue of this act, banks are permitted to make loans practically to the extent that their customers can furnish adequate security. There is no danger of panic by unusual demands on the part of depositors, because the banks can rediscount the notes they hold by taking these to the Federal Reserve Banks of their respective districts. Using these rediscounted notes as collateral, in addition to forty per cent in gold, the Federal Reserve Board may place in circulation new currency, known as Federal Reserve Notes, which constitute at the present time...
...supplant the pound sterling as a standard of exchange in South America, Mr. de Lima replied: "The dollar exchange can be firmly established in South America in two ways: first, by establishing American banks in South America; second, by passing Federal Reserve laws allowing the Federal Reserve banks to rediscount South American commercial paper. At present a movement for realizing both these conditions is well under...