U.S. PROVIDES NEW CREDIT TO HELP BUSINESS
(Received 10 a.m.)
WASHINGTON, February 14,
The Secretary of the Treasury announces the desterilisation of a further 30,000,000 dollars worth of gold to provide added credit facilities to combat the business recession.
The new policy is retrospective to January 1, 1938. It provides for the Treasury to deposit with the Federal Reserve system all gold purchased from domestic producers or from abroad to a limit of 100,000,000 dollars during each quarter of the fiscal year. Gold to the value of 30,000,000 dollars, earmarked for sterilisation, will go to the Federal Reserve system, and if the Treasury buys an additional 70,000,000 dollars worth of gold during the current period it also will escape sterilisation.
The decision relieves the Treasury from borrowing in the public market and increases the bank reserves, thus assuring a continuation of the easymoney policy.
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Northern Advocate, 16 February 1938, Page 5
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144U.S. PROVIDES NEW CREDIT TO HELP BUSINESS Northern Advocate, 16 February 1938, Page 5
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