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374
X-1913
CONFIDENTIAL: NOT FOR
"'PU-si~ICATION
Questionnaire re
(1)
Bgrikers'Accept~ces,
Etc.,
Is the ostaolishrnent of dollar exch:m;e in world markets
illl
essential benefit to Arr•3ric'=ln comrnerce and th3 Am~rican people?
Stat:-:J reasons - nro or con.
Is .en O"!:)~n discount market essential to th3 establishment of
(2)
dollar exchcnge in world rr,n.rkets?
St-:-t,:; reasons ... 'T)ro or con.
Is a lib >rctl onen marb3t policy 'by Federal Reser~re B~·s essential
(3)
to
th~
development of an ()'T)en discount marl\At in America?
St=.te reRsohs - pro or con.
(4)
Does banl::-ers acce'l?tance credit, as nerrri.itted under the :F'eder:ll.
Reserve ;~ct, suffici,:;ntl;t nrovidl3 for establishrr~nt of doll.e.tr exchange
in world markets?
If not, in what wr::..y 8Pd tO what ext?rtt :u-e the
nrovisions of the P.ct deficient?
( 5)
Does hankers accent·mce credit, as :_Qermitted under th-3 Federal
Reserve .Act, tend to infl·'l.tion of:
(a)
(b)
l=>le: se sta.te
(6)
Credit ?
B'llil: loF.ll'ls in United St::(tes.?
.ar~ent.
Is the use of banrers accent~ce dollar credit a b~nefit to
Americ-:n im'r.lort 2nd. er)ort trr:.de, either or both?
In ,qhe, t ways is it benefici :-l 1
(7)
Is the use of ~aru~ers acce~tsnce credit beneficial in dorr.estic
tr.~.de?
(a)
{h)
In do:v~~stic tr.:ms'T)ortation?
On W3-rehoused st~"Ol8s?
•
-2-
X-1913
Are .AmericPn 'rJankers accentance credits, as ·nermi tted under the
(B)
Federal Reserve Act, ordin:'lrily self-liquidatinrr within the periods for
which bills are drawn thereunder?
Does this vary .s's to c1A.sses of credits?
As to iT!'!T,iort tr2ns:::~.ctions?
Export transactions?
Domestic tr.=.nS"Dort<;ttion tr:msactions?
Warehoused st.=t:r;>1es secured credits?
In. your o-oinion does correct banking :pr:tctice require continuing
(9)
security durin~ the life of th~ credit for 0~ers acceptance credits
granted
(l<b)
fs
~~ainst
the
warehoused
US·"'l
sta~les?
of banlcers acceptance credit c..bused and if so in what
ways c.lll.d to what extent?
(11)
If abuses exist, how may they best be corrected?
(12)
Is an onen discount marl\::et for 'rJankers dollar acceptances essential
to the maintenance or further development of .American foreign
tr~de?
If so, why?
Is it essential or desiroble as the medium for r~,J.ization on bills
dr~~
in domestic trensactions?
If so, why?
(13)
Is an o~en discount market ~ essenti~l of the American system of
'b '3l!lk in fZ?
If
(13a)
SO I
1/Vhy?
1b.at is the relation of r.m O"'en discount marb~t to the international
111
flow of credit?
(14)
m~rket
Is the 'ban1:ers acceptance 'rJetter adapted to ne;;cotis.tion in o:pen
or to private discount at th"3 drawer's or borrower's bank?
Please st8.te
ar~:urnent.
376
('
·-3-
(15)
X-1913
Should the acceptor discount or buy his o~ acceptance from the
drawer or other holder in due course?
If so, under what circurr1stances and why?
(16)
If m ~.cceptor acquires his own acce"[)t:mce before rraturity, shcrllld
•
he reseli it or consider it retired?
(17)
ShOUld bares indorse bills:
(a)
(b)
Sold from their own portfolio?
Rec'3ived foi' discoUnt ~d credit of
correS1:)ondent?
Please state argument.
(18)
Should ~ants indorse merely for profit?
(19)
Should acceptors exchange accorr~odation indorsements or their
own acceptances for purnose of effecting rediscount or
~etter
terms of
rediscount?
Should there be any limits on indorsements in the cases SUL:~ested
(20)
in questions 17, 18 and 19?
(21)
If so, "Vhs.t limits?
Should there be a difference in the case of hills that •'Vhen bought
h1.ve already a bc-.nk 1 s or a betnker' s indorsement.
Wi~l the onm market effectiv~ly limit th<:l liabiliti~s of acceptors
(22)
~d
indorsers on
(23)
~aper
m~rket?
Wrat should be the nolicy of Federcl. Reserve Ba.ri'.~s in O'Pen market
purchases of hankers
( 24)
offered in the oncn
accept.~ces?
Should Feder~ Reser·r"l Banks consider indorsement of a m.:m~ber bank
on hills bou,:ht as rediscounts for the member
(a)
(b)
(25)
banl~?
If bou;;ht in o-p;n market?
If bou-;ht from the member bonk?
If considered as redisco1mts, would member 'Danks purch;:;..se bankers
acceptances for inv,::stment and rediscount them on OCC3.sion at Federal Reserve
B~nks?
If not, why not1
.
•
377
'
X.1913
-4(26)
,.,by do banks buy b-ml:ers accer,tances in the onen market?
(27)
Should Federal Reserve }ie.nl~s ever buy unindorsed bills?
(28)
Should they ever buy from, or discount for, an acceptor, his
own P..cce:J:)tance?
T~ri thout
( .::>J
other indor serr.ent 1
( 1:>) · 1ilii th other indor s".!rnent 1
Please state ar?Ument.
(29)
Should they l:>uy lona maturities, short maturities, or both?
(}J)
Should th,.~y ever; merely as a matter of 'DOlicy, decline to buy
prim~
indorsed
'~:>ills
at
some
I
r~te?
(31) What would be the effect in the
Federal Raserve
(}2)
3~s
dp~ m~rket if, as a mdtter of policy,
did discontinue open
mar~et
purchases?
What difference, if any, should Federal Reserve B~~s maintain
between rediscount rates and purchase rates ')n nrime
banke~s
acceptances?
(33) Are different rediscount rates (as distinguishea from purchase
rates) desirable for hankers acceptances and ~r.omissory notes?
If so, what is the .,roper basis for difference?
(34)
H01w, and tQ what extent, are the policies and nractices of the
Federal Reserve
B~rs
·(a)
(~\
(35)
felt as an influence in the
o~en
market?
On general ccmditions?
As towards specific -~a~er or classes of ~aper?
Are they uniform at all Federal Reserve !3anks?
and if not, should the~~
be?
(36) Has the open market
develo~ed in breadth ~ stability?
If so, to what coffiparative extent?
Please discuss fully.
(37)
What are the principal causes for the slow development of an
acceptance market?
378
-5(38)
(39)
X-1913
What, if anything, further is needed for its development?
(a)
To ~~hat extent do acceptances facilitate
the n~~ of credit between different
sections of the U.s. 7
(b)
If the ~ederal Reserve Baru~s adoryted a
narrower or more restricted policy toward
open market purchases of ~ankers 1 acceptances than at present, would this have a
tendency to impede the n em of funds
when needed from creditor to debtor
sections?
ShOUld an eXport or import 'l:lill bear Specific details of the
transaction ·upon its face?
(a)
(b)
The desirability
The probability.
@FedFRASER