The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
The mptltw*« of th* tmr ftaftnelng progr*» Is increasing enormously &«* #g M 5a,ee«a»f-..il in H H war prothictiaa IMdPMN flw MM s^<s«mt bu4f«t «rtio*t*a for th* ft§*«& yt«r 1943 Indict® tfcftt •BpM£lt«f94 bj Hn F*d*r CU % b i l l i o n dtitlflpt ittitflid t f 63 b i l l i o n && «M #ailimt#4 la il MHg| tiudA-. t-ocoant i f MM Ineosa froa JMPO m M --«af i«±li. inesi^4.« hy 54 HI l i f t ^.i.lar;;» tm^Md of 40 billion* &> :I'a.alw f| M^M ttff Mar -v. ••vii^s bonti^ « th# b«p«d for rate e€ os« b i l l i o n JJHttfl mr MNH^i 35 billiofR dollars will i o b# borromid from Ifliki ittd oth^r i«n4t>r£ "w^atori-* of thin tft.»k «dect« 4nplk»8lee« the MMMltv of & ^op of «ieh ^ profrs?n, if Rson«t^y7 Policy i« t o M^pv% fl«e«l policy commit In >* a ri«* la ih« ccwt of UMfl i of l«R3*r-» tnt investor* ahoul U ^J^ 1® a daeg«r in if *#Iia» o ^dcousft bttt th#j $hoa3Ul M4 aer b» 4ll©»td t o i t l i f too Xong th« ado^ilflii of ^ progf^ai* involves & judicious feut v t r j «ubat«nil<l hm 1* t o t m ^ f a^ wall &» f i M b | | «ttt -;s t IM «?s»ift to 1« Th@ p M g m should no% hs east iis ;,h« L M I *ar p4tt«?ra of 2» Uftlat«&«Qc# 9f incF»a«« of ( in U H country <wl»l4i t l N« Tors:®* .in Hew York t o th» pPHMn HMl s i ••'hi fct or aa a^iitioB*! «4MK»t of $hgrt*t«ra fMMMNMQr H •« t d l l « Hid ««rtiric-t*» of lnd«Mt4a«Mi so th&t oftftfe@shifted raadil^ £ro» «ark*t to s&r&©t «ad bank to purehs«# &»$ sal« of that* obligations* thin tsobility of fwndu will aei tea achieved, horcorer, i f 9hort~t$rst rat#« w BO low an to r*p«l doawind for soah ttatiurittas th» prim&p&X ssoaasr awrketa* aaw-baak iarestor» au«t b» «act«ai in or4«r to m&td ih of to tb« of i ia ao far as it is for p«rlod» not Govwawmt adequate bank re- to faoiiitat* th« of of williiig porliuil^Ii»B into *ff«ot f a YOl%eee of »#omrlt|«» an po*aibl# outaida ih® ar® T«i*i0us wa^a of oanyiag forwtrd tha financing pvqpnm of tar X« Goatinu&uc« of pr#a«st n«tho4 of offarloga for gaoaral 2* Periodic off«?iuf« of V@XT i&rf# istuoe to ba aold If 3« ftea 4* 4 aathod vbieh ocMabiaa-a offaringa of «isaci&l aaeuritioa availabl* at a l l tia*»* to isrrsstor* otbar thsa btmka» with rogulsur and apaaial *a&p«ipi off^riaga of aaauritioa «ult*ble for bank aad otter imraat* samt (auob as tha profr^s i&oTloualy pro.poaa€ tr tHa Fadairal Opaa awtliod #f fin&aeitji i s ohoa*ay and «a again reooweaBd tha fourth as^thod, M i t i t i»par»tiir« that w# hmv» a^a orgfani«a.orfaals*tlon 9 which is working la a apeei&l to aall ithm%®mr aaourltiaa ipr# off«rad| that i« f an organisation of UMl aeanareiftl m mil m» tha inv^steoat bi^ikara &«4 oth«r»» that and sail Qoraraaaat aaomritios aHouXd ba- sat up in aaab F*«$*ral X©a»rr« Dlatrlart There will not be time before the Hay financing must be decided and announced to set up the organisation for making a comprehensive program effective. The attempt should be made, however, to have thia financing conform, as far as possible, with the objectives of such a comprehensive program. Specific gu&gestlons for May Financing. 1. Issue a 7-9 year 2 per cent bond which will be primarily a baak investment. Such an issue in the amount of 1 to 1 1/2 billion dollars could be readily sold. 2. Begin immediately to increase the weekly offering of Treasury bills from 150 million dollars to 250 inillion. For the present, the Federal Reserve System will support the Treasury bill rate firmly at 3/8 of 1 per cent. 3. Offer a registered 2 1/2 per cent, 20-25 year market bond which could not be registered in the name of commercial banks for 10 years and which could not be transferred for 60 days. Th« amount of this offering need not be fixed, the books could be left open for as long as desired, and a special canvass of insurance companies and other similar investors could be mad®. U* Discard all subscription rules. The reasons for these rules have now disappeared and subscribers should be permitted and encouraged to subscribe for whatever amount of Governaeafe securities they desire. The Federal Reserve System in this serious situation mist, of course, do whatever it can to assist in the Treasury's program. It can be of greatest help if a comprehensive program is now developed. It is ready and willing to support such a program in whatever ways are neoessary by whatever means are at its disposal* As an immediate guide to its operations the System laighfc undertake to purchase in the open market a sufficient amount of Government securities to offset future increases in currency in circulation. This in itself would not constitute a net increase in the amount of available bank credit.
@FedFRASER