UNFOUNDED REPORT
U.S. NOTE ISSUE AN AUSTRALIAN STATEMENT (Received Dec. 5, 11 a.m.) WASHINGTON, Dec. 4. Considerable surprise has been caused hole by the'circulation of a report in Australia, United States Federal Reserve contemplated an. expansion of -the note issue in the interests of unemployment. It is pointed out that while the report shows cognisance of the sensational import of such a step it lacks familiarity with the structure ,or purposes of the Federal Reserve system. The latter was initiated by President Wilson for the purpose of controlling inflation. An examination of the Federal Reserve Act shows that the main-body of notes can only be issued against commercial obligations. This would make it impossible tor any arbitrary expansion. Moreover, the information that unemployment to any extent necessitating such desperate financial remedies existed in the United States, or was at all impending, was received with incredulity. The Australian report cannot be understood here, and is considered fantastic.
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Bibliographic details
Poverty Bay Herald, Volume LV, Issue 17126, 5 December 1929, Page 5
Word Count
156UNFOUNDED REPORT Poverty Bay Herald, Volume LV, Issue 17126, 5 December 1929, Page 5
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