America's Money Machine

More documents

Recommendations

Info

New Bridles for Old 203 for collateral against Federal Reserve notes other than the 40 per cent gold cover, and making the notes secured by all the assets ofthe Reserve banks. The bill that went to the President for signature provided the follow Ing: (1) Reorganization of the Federal Reserve Board. The name of the Board was changed to the Board of Governors of the Federal Reserve System and the membership was reduced from eight to seven, to be appointed by the President. The ex officio memberships of the Secretary of the Treasury and the Comptroller General were abolished. Eccles is authority for the statement that it had originally been intended only to eliminate the ex officio membership ofthe Secretary of the Treasury and to leave the Comptroller General on the Board but both were excluded when Morgenthau's sensitivity was offended that one of his subordinate officials should be on the Board while he was removed. The Chairman of the Board was to be designated by the President for a four-year term. (2) The executive authority of the Federal Reserve banks was transferred from the chairman to the governor and deputy governor and the title ofthese officers changed to president and first vice president. These officials were appointed by the board of directors for five years but the appointments were subject to the approval of the Board ofGovernors of the Federal Reserve System. (3) The Open Market Committee, consisting of the twelve governors of the Federal Reserve banks, was replaced by a new committee composed of seven members of the Board of Governors of the Federal Reserve System and five representatives of the twelve Federal Reserve banks, who were to be selected annually by the boards ofdirectors ofthe Federal Reserve banks: one by Boston and New York; one by Philadelphia and Cleveland; one by Richmond, Atlanta, and Dallas; one by Chicago and St. Louis; and one by Minneapolis, Kansas City, and San Francisco. (4) The Board ofGovernors was now authorized to change the reserve requirements for both demand and time deposits ofmember banks without the declaration ofan emergency. Such changes, however, were to be within the minimum then required by law, and a maximum of not more than twice the amount. (5) The law made no change in regard to setting discount rates except that Federal Reserve banks should establish these rates with the approval of the Board ofGovernors every fourteen days, or more often ifdeemed necessary by the Board. (6) The law did not go so far as Eccles had desired in permitting any
204 PART III / DEBACLE OF AN IDEA sound asset to be eligible for rediscount, but it did grant permanent authority to any Federal Reserve bank, under regulations of the Board of Governors of the Federal Reserve System, to make advances on any "satisfactory" as well as eligible paper to a member bank. (7) The act liberalized the restrictions on real estate loans. (8) The law further eased the requirements for admission to the Federal Reserve System. (9) Technical changes relieved the Board of Governors of certain administrative details. ( 10) The act prohibited the direct purchase of government securities by the Federal Reserve banks-an authority which the Thomas amendment had implied but not specifically granted. This provision was not among those sponsored by the Administration and Eccles later complained that it only served to add to the cost of purchase the brokers' commissions. 13
Page 3:
BOOKS BY ELGIN GROSECLOSE Money: Th
Page 6:
For My Beloved Louise with especial
Page 9 and 10:
Vlll CONTENTS 22. The New Thermopyl
Page 11 and 12:
x PREFACE sprawled under the weight
Page 14 and 15:
Preface XIU cash, lawful money, leg
Page 16:
Preface xv tary expansion and a che
Page 19 and 20:
j j j j j j j j j j j j j j j j j j
Page 21 and 22:
4 PART I / THE ROOTS OF REFORM An i
Page 23 and 24:
6 PART I / THE ROOTS OF REFORM ente
Page 25 and 26:
8 PART I / THE ROOTS OF REFORM them
Page 27 and 28:
T HE 2. The First Shock Wave SIGNIF
Page 29 and 30:
12 PART I / THE ROOTS OF REFORM son
Page 31 and 32:
14 PART I / THE ROOTS OF REFORM ene
Page 33 and 34:
T HE 3. The Lapping at the Dikes YE
Page 36 and 37:
The Lapping at the Dikes 19 On Mond
Page 39 and 40:
4. The Rich Man's Panic T HE STOCK
Page 42:
The Rich Man s Panic 25 bocker Trus
Page 45 and 46:
PART I / THE ROOTS OF REFORM The cr
Page 47 and 48:
30 PART I / THE ROOTS OF REFORM Win
Page 49 and 50:
32 PART I / THE ROOTS OF REFORM vie
Page 51 and 52:
34 PART I / THE ROOTS OF REFORM sur
Page 53 and 54:
36 PART I / THE ROOTS OF REFORM dis
Page 55:
38 PART I / THE ROOTS OF REFORM def
Page 59 and 60:
42 PART I / THE ROOTS OF REFORM whi
Page 61 and 62:
44 PART I / THE ROOTS OF REFORM con
Page 63:
A FTER 7. An Interlude for Debate T
Page 67 and 68:
50 PART I / THE ROOTS OF REFORM mer
Page 69:
52 PART I I THE ROOTS OF REFORM dar
Page 73 and 74:
56 PART I / THE ROOTS OF REFORM Suc
Page 75 and 76:
PART I / THE ROOTS OF REFORM all pr
Page 77 and 78:
60 PART I / THE ROOTS OF REFORM mig
Page 79 and 80:
PART I / THE ROOTS OF REFORM propos
Page 81 and 82:
PART I / THE ,ROOTS OF REFORM The P
Page 83 and 84:
66 PART I / THE ROOTS OF REFORM fro
Page 85 and 86:
68 PART I / THE ROOTS OF REFORM ple
Page 87 and 88:
70 PART I / THE ROOTS OF REFORM sug
Page 89 and 90:
72 PART I / THE ROOTS OF REFORM wit
Page 91 and 92:
74 PART I / THE ROOTS OF REFORM Hou
Page 93 and 94:
PART I / THE ROOTS OF REFORM of New
Page 96:
PART II The Great Reversal
Page 99 and 100:
PART II / THE GREAT REVERSAL then a
Page 101 and 102:
84 PART II / THE GREAT REVERSAL Wha
Page 104 and 105:
I T 12. The First Inundation WAS A
Page 106 and 107:
The First Inundation 89 $43 million
Page 108 and 109:
The First Inundation 91 and at a ti
Page 110 and 111:
13. Collapse of a Theory THE SPLEND
Page 112 and 113:
Collapse ofa Theory 95 should be re
Page 114 and 115:
Collapse of a Theory 97 such paper
Page 116 and 117:
Collapse ofa Theory 99 plete contro
Page 118 and 119:
The Path of Retreat 101 Under Warbu
Page 120:
The Path of Retreat 103 Along with
Page 123 and 124:
106 PART II / THE GREAT REVERSAL of
Page 125 and 126:
15. When to Reef Sail DURING THE FI
Page 127 and 128:
110 PART II / THE GREAT REVERSAL Wa
Page 129:
112 PART II / THE GREAT REVERSAL In
Page 132 and 133:
Rediscount rate Date New York Feder
Page 134:
When to Reef Sail 1 17 You have the
Page 137 and 138:
120 PART II / THE GREAT REVERSAL ab
Page 139 and 140:
122 PART II / THE GREAT REVERSAL of
Page 141 and 142:
124 PART II / THE GREAT REVERSAL Th
Page 143 and 144:
126 PART II / THE GREAT REVERSAL Ne
Page 145 and 146:
128 PART II / THE GREAT REVERSAL to
Page 147 and 148:
130 PART II / THE GREAT REVERSAL Ge
Page 149 and 150:
132 PART II / THE GREAT REVERSAL Ba
Page 151 and 152:
134 PART II / THE GREAT REVERSAL by
Page 153 and 154:
136 PART II / THE GREAT REVERSAL cr
Page 155 and 156:
PART II / THE GREAT REVERSAL that a
Page 157 and 158:
140 PART II / THE GREAT REVERSAL sh
Page 159 and 160:
142 PART II / THE GREAT REVERSAL it
Page 161 and 162:
144 PART II / THE GREAT REVERSAL th
Page 163 and 164:
PART II / THE GREAT REVERSAL 15 per
Page 165 and 166:
148 PART II / THE GREAT REVERSAL Th
Page 167 and 168:
150 PART II / THE GREAT REVERSAL ad
Page 169 and 170: 152 PART II / THE GREAT REVERSAL Yo
Page 171 and 172: 154 PART II / THE GREAT REVERSAL vi
Page 173 and 174: 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Page 175 and 176: 158 PART III/DEBACLE OF AN IDEA tio
Page 178 and 179: The Crumbling of the Dikes 161 day
Page 180: T HE 22. The New Thermopylae EFFORT
Page 183 and 184: 166 PART III / DEBACLE OF AN IDEA S
Page 185 and 186: 168 PART III/DEBACLE OF AN IDEA in
Page 187 and 188: 23. The Keynesian Influence JOHN MA
Page 189 and 190: 172 PART III / DEBACLE OF AN IDEA a
Page 191 and 192: 174 PART III / DEBACLE OF AN IDEA o
Page 193: 176 PART III/DEBACLE OF AN IDEA tie
Page 196: T HE 24. The Not So New New Deal AF
Page 199 and 200: PART III / DEBACLE OF AN IDEA ties
Page 201 and 202: 184 PART III / DEBACLE OF AN IDEA c
Page 203 and 204: 186 PART III / DEBACLE OF AN IDEA c
Page 205 and 206: 188 PART III/DEBACLE OF AN IDEA For
Page 207 and 208: 190 PART III/DEBACLE OF AN IDEA Sen
Page 209 and 210: 192 PART III / DEBACLE OF AN IDEA J
Page 211 and 212: 194 PART III/DEBACLE OF AN IDEA abu
Page 213 and 214: 196 PART III/DEBACLE OF AN IDEA nor
Page 215 and 216: Ig8 PART III / DEBACLE OF AN IDEA R
Page 217 and 218: 200 PART III/DEBACLE OF AN IDEA who
Page 219: 202 PART III / DEBACLE OF AN IDEA o
Page 224 and 225: Where Two Tides Meet 207 billion. I
Page 226 and 227: Where Two Tides Meet 209 The conser
Page 228 and 229: Where Two Tides Meet 211 creating a
Page 230 and 231: The Reversals of War 2 13 the world
Page 232 and 233: The Reversals of War 2 15 per cent
Page 234 and 235: The Reversals of War 217 three-mont
Page 236 and 237: 29. Doubtful Victory No HEAD of the
Page 238 and 239: Doubtful Victory 221 sury and the F
Page 240 and 241: Doubtful Victory 223 at a cost of 1
Page 242 and 243: Doubtful Victory 225 sleeping on hi
Page 244 and 245: 3 o. The Role of Atlas THE FIFTH DE
Page 246 and 247: The Role ofAlIas 229 dollar deposit
Page 249 and 250: 232 PART III/DEBACLE OF AN IDEA amo
Page 251 and 252: 234 PART III / DEBACLE OF AN IDEA T
Page 253 and 254: 236 PART III / DEBACLE OF AN IDEA f
Page 255 and 256: PART III / DEBACLE OF AN IDEA becau
Page 257 and 258: T OWARD 32. The End of a Dream THE
Page 259 and 260: 242 PART III/DEBACLE OF AN IDEA Des
Page 261 and 262: 244 PART III/DEBACLE OF AN IDEA -th
Page 263 and 264: 246 PART III/DEBACLE OF AN IDEA Fol
Page 265: 248 PART III/DEBACLE OF AN IDEA The
Page 268 and 269: The Chute fluctuating in value agai
Page 270 and 271:
Into the Pit 253 As the relative ma
Page 272:
Into the Pit 255 That bankruptcy wa
Page 275:
258 PART III/DEBACLE OF AN IDEA ind
Page 278 and 279:
Out of the Pit 261 A fourth misconc
Page 280 and 281:
Out of the Pit 263 WarII the ratio
Page 282:
Out of the Pit 265 The Federal Rese
Page 285 and 286:
268 NOTES Chapter 4. 1. New York Ti
Page 288:
Notes Chapter 19. 1. Federal Reserv
Page 291 and 292:
274 NOTES Chapter 31. 1. See the au
Page 293 and 294:
SELECTED BIBLIOGRAPHY Harding, Will
Page 296 and 297:
About the Author ELGIN GROSECLOSE f
Page 298:
Achesont Deant 19 1-g2 t 196 t 198
show all

America's Money Machine

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?