“NOT UNDERSTOOD.”
EXPANSION OF NOTE ISSUE. • United Preie Association—By Electric seraph —Coovrlßh ) WASHINGTON, December 4. Considerable surprise was caused here by the circulation of a report in Australia that the United States Federal Reserve contemplated the 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 instigated for the purpose of controlling inflation, and an examination of the Federal Reserve Act shows that main tyrdy notes can only be issued against commercial obligations. This would make impossible 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
Timaru Herald, Volume CXXV, Issue 18441, 6 December 1929, Page 9
Word Count
152“NOT UNDERSTOOD.” Timaru Herald, Volume CXXV, Issue 18441, 6 December 1929, Page 9
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