About the Book
This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 Excerpt: ...or attempts to borrow excessively, say in excess of the amount to which it may be fairly entitled, measured by what it contributes to the resources of the Federal reserve bank, that the question arises as to how much the Federal reserve bank can loan to an individual member bank in justice to that member bank's condition and in justice to the demands of other member banks. During the period from June, 1920, to June, 1921, prices as indicated by the Bureau of Labor Statistics index, declined as shown in Table 13: Table 13.--Price indices of commodities showing decline from June, 1920, to June, 1921. While loans and discounts both of banks and of Federal reserve banks continued to increase until October, 1920, and currency issues until January, 1921, the net result of the period as reflected in loans and discounts and currency issues was a decline. In this period, loans and discounts of all banks, State and National, excluding savings banks, declined from $27,368,231 to $24,761,929, a decline of $2,606,302, or 9.5 per cent. Loans and discounts of National banks for the same period decreased from $13,611,416,000 to $12,004,515,000, a decrease of $1,606,901,000, or 11.8 per cent. In the same period, total bills discounted and bills bought by Federal reserve banks declined from $2,830,979,000 to $1,803,163,000, a decrease of $1,027,816,000, or 36.3 per cent. Federal reserve notes in circulation declined during the same period from $3,116,718,000 to $2,537,617,000, a decline of $579,101,000, or 18.5 per cent. The general stock of money in the United States, in the same period, increased from $7,804,528,000 to $8,073,737,000, an increase of $269,209,000, or 3.4 per cent. In general, loans and discounts decreased during this period 18 per cent, while prices of all ...
