Proceedings of the Annual Meeting of the National Board of Trade Volume 25
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. 1895 edition. Excerpt: ...a most striking illustration of the impolicy of legislative interference with the natural laws of trade and finance." While Mr. CaRLrsLE's diagnosis of the disease will be recognized as correct, the efficacy of his remedy will be questioned. There is ordinarily no difficulty in maintaining reserves, and for months past the banks in the money centres have been burdened with a large excess of them, due to business stagnation and the 'consequent lack of sufficient legitimate employment for money. When business is active and there is a healthy demand for money at fair rates, the excess of reserves is called into use. If the demand increases and rates for money advance, it will flow in from other markets where it is less in demand. Advancing rates for money tend to check ovcrtrading, while the supply of capital from other markets tends to equalize rates. If, however, through-a lack of confidence in the general financial condition here or abroad, the supply of money should diminish and overtrading-continue, which advancing rates for money fail to check, a monetaryostringency ensues, which is felt in the withdrawal of deposits from the banks, and their reserves are trenched upon. Instantly the law steps in and aggravates the situation by interdicting further loans and discounts. Banks in the rural sections, quick to catch alarm, begin to draw upon their reserve deposits with the banks in reserve and central reserve cities in lawful money, with the view to strengthening themselves at home, and frequently seek to restore such reserve deposits by loans and rediscounts from their reserve agents in those cities. The banks in reserve-cities are in turn forced to draw upon their reserve deposits in central reserve cities, and many...
- Paperback | 88 pages
- 189 x 246 x 5mm | 172g
- 13 Sep 2013
- Illustrations, black and white