AMERICAN FINANCE
EFFORTS TO PREVENT CREDIT BOOMS United Press Association—By Electric Telegraph—Copyright (Received January 31, 7.30 p.m.) WASHINGTON, January 30. The Federal Reserve Board announced that it will increase by a third the reserve requirements of member banks, to become effective between March 1 and May 1. The move is to prevent a possible “injurious credit situation,” similar to 1929. This is the third action in eight months to prevent a credit boom. The last step is expected to have eliminated 1,500,000,000 dollars of excessive reserves, leaving 500,000,000 dollars of such excess, which is believed to amply finance further recovery and maintain easy money conditions. The previous steps were a 50 per cent. Increase of reserves on July 14 and gold stabilisation on December 21.
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Timaru Herald, Volume CXLIII, Issue 20640, 1 February 1937, Page 9
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125AMERICAN FINANCE Timaru Herald, Volume CXLIII, Issue 20640, 1 February 1937, Page 9
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