The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
390 X-6313 FEDERAL RESERVEBOARD STATEMENT FOR THE PRESS For r e l e a s e i n morning papers, Wednesday, May 22, 1929. May 21, 1929. The Federal Advisory Council a t a r e g u l a r meeting with the Federal Reserve Board on Tuesday, May 2 1 s t , d e l i v e r e d the following memorandum of i t s views on the c r e d i t s i t u a t i o n , which i t a u t h o r i z e d the Federal Reserve Board to r e 1ease: "The Federal Advisory Council has reviewed c a r e f u l l y the c r e d i t s i t u a t i o n . I t continues to agree with the view of the Federal Reserve Board expressed . i n i t s statement of February 5, 1929, t h a t 'an excess i v e amount of the c o u n t r y ' s c r e d i t has "been absorbed i n s p e c u l a t i v e s e c u r i t y l o a n s . ' The p o l i c y pursued by the Federal Reserve Board has had a b e n e f i c i a l e f f e c t due l a r g e l y to the l o y a l coopesation of the banks of the country. The e f f o r t s i n t h i s d i r e c t i o n should be continued. The Council notes, however, t h a t while the t o t a l amount of Federal Reserve c r e d i t being used has been reduced, ' t h e amount of the c o u n t r y ' s c r e d i t absorbed i n s p e c u l a t i v e s e c u r i t y l o a n s ' has not been s u b s t a n t i a l l y lowered. Therefore, the Council recommends to the Federal Reserve Board t h a t i t now g r a n t permission t o r a i s e the rediscount r a t e s to s i x p e r cent to those Federal r e s e r v e banks r e q u e s t i n g i t , thus b r i n g i n g the r e d i s count r a t e s i n t o c l o s e r r e l a t i o n with g e n e r a l l y p r e v a i l i n g commercial money r a t e s . The Council b e l i e v e s t h a t improvement i n f i n a n c i a l conditions and a consequent r e d u c t i o n of the r a t e s t r u c t u r e w i l l thereby be brought about more quickly, thus b e s t safeguarding commerce, i n d u s t r y , and a g r i c u l t u r e . "
@FedFRASER