The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
QUESTIONS RE LOAN EXPANSION BILL (1) Should any provision be made for exemption of defense loans? (2) Should limitation on percentage prescribed by Board be 50 per cent or some lesser figure? (3) Should nonmember banks be permitted to carry balances with correspondent banks and, if so, should only those balances be counted which exceed their actual existing balances with correspondent banks on a given #ate? (4) Should the loan expansion bill retain the idea of a base period for each bank, with authority for higher requirements according to higher loan ratios, as the bill is presently drafted; or should it be modified to eliminate the base period and merely to authorize a graduated scale of progressively higher percentages according to higher loan ratios? (For example, 10 per cent of the amount of loans in excess of g. 30 per cent loan ratio, 20 per cent of the amount in excess of a 40 per cent loan ratio, etc.) (5) If the loan expansion bill is combined with the primary reserve bill, should the Board be authorized to permit Government bonds to be substituted for reserve balances and, if so, should Board be authorised to require Government bonds to be several times amount of cash, balance in order to be so treated? (6) Should the loan expansion bill be made applicable to insurance companies, building and loan companies, mutual savings banks, finance companies, and all other financing institutions? 5/4/51
@FedFRASER