Congressional Edition Volume 6532
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1913 edition. Excerpt: ... me this, that in order to continue them in circulation the regional bank must keep paper there--substitute paper for the 90-day paper? Prof. Jenks. Yes. Senator Nelson. And keep a continuing stream of that paper? Prof. Jenks. Yes. Senator Nelson. As soon as you cease to do that, and the last deposit of notes you have left there are paid or redeemed, and the money goes back to the regional bank that issued the notes, those regional notes are paid, are they not? Prof. Jenks. Those regional notes are paid--redeemed. Senator Nelson. They are redeemed. Prof. Jenks. Yes. Senator Nelson. And they ought not to be in circulation again. Do you understand my question? I will put it again, so that you can understand it. AFTER RECESS. Senator Nelson. I would Senator Hitchcock. Yes; I would like to hear you restate it. Senator Nelson. Suppose Prof. Jenks is a member bank and I am a regional bank. He deposits commercial paper. 90-day paper, with me, and I issue to him $100,000 in this new currency. He puts the currency out; it travels around through the world and finally comes back to me, the issuing bank. In the meantime those notes--that commercial paper that he deposited with me has become due and it is paid. Paid in to me, the regional bank. Now, does not that, when those notes--suppose he does not care about renewing the notes or giving more notes. Senator Pomekene. Renewing the collateral, you mean? Senator Nelson. Yes; renewing the collateral. He allows those notes to be paid to me, the regional bank, in full. I get the money and the regional notes that are issued for that commercial paper come back to me. Now, are not those notes paid, those notes of the regional bank? Senator Hitchcock. Well, my judgment would be that, as fast as the...
- 189 x 246 x 37mm | 1,266g
- 13 Sep 2013
- United States
- black & white illustrations