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Statement given to the Associated Press by Marriner S. Eccles, Chairman
of the Board of Governors of the Federal Reserve System, at Ogden, Utah,
on the afternoon of September 13, 1939, for release in morning papers of
September 14.
It is my opinion that the country is assured of a supply of
funds which is far more than adequate to meet every credit need that
may be expected to arise as a result of the outbreak of war abroad.
Excess reserves of the banking system are now more than $5 billions and
there is every prospect that this already unprecedented volume will continue to increase.

Bank deposits and currency in circulation are several

billions of dollars in excess of all past totalsĀ»

At no time in the past

have the great business and industrial organizations of the country had
larger cash reserves on which they would be able to draw to finance a
large expansion in their operations before finding it necessary to borrow
from the banks or the money markets.

Several billion dollars of foreign

funds are on deposit or under earmark, the expenditure of which would entail no borrowing or extension of credit but would increase existing
deposits and excess reserves.

The Government is in a position today that

it did not occupy in the past to assure ample supplies of credit on
favorable terms to meet any demand, both public and private, that is
likely to arise in the future.

In view of these circumstances, there

is no justification of anticipating the development of credit conditions
leading to credit 3tringency and thus to higher interest rates on bank
loans, mortgages, and other borrowings.

In other xvords, the great volume

of excess funds in relation to potential borrowers assures the continuation of easy money indefinitely.