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- Title
MEMBER BANK RESERVES AND BANK DEBITS.
- Authors
Currie, Lauchlin
- Abstract
The article focuses on member bank reserves and bank debits in the United States. There is a strong probability of the enactment of important changes in the provisions governing the reserve requirements of member banks. The recommendations of the official Committee on Bank Reserves proposes that reserve requirements should change automatically with changes in bank debits. The chief objection to the new proposal is that it embodies in the Federal Reserve Act a banking theory to which it is very doubtful the reserve administration will long adhere. This theory is that any one expenditure of a deposit is of as valid economic significance as any other. One of the arguments urged in favor of basing reserve requirements upon bank debits is that it will operate to check the growth of speculative situations and help to bring them under control. On the whole it would appear that the objections to an automatic change in reserve requirements due to changes in bank debits outweigh the advantages.
- Subjects
UNITED States; BANK reserves; BANKING industry; RESERVES (Accounting); DEPOSIT banking; COMMITTEES
- Publication
Quarterly Journal of Economics, 1933, Vol 47, Issue 2, p349
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1883694