cover image: The New Era  July 1929

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The New Era July 1929

1929

Thus the political leaders in America have been trying to influence the policy of the Federal Reserve Board in the supposed interests of the farmers by heated debates in the Congress upon the policy of the Board. [...] The answer to this line of argument seems to be that it is only when the practice of rediscounting is introdced (through the institution of a Reserve Bank) that there is any prospect of true commercial bills being created and of the contact of the two elements of the Indian banking system being expedited. [...] In support of this contention it might be pointed out that in America the formation of the Federal Reserve system preceded and rendered possible the proper development of the money market as well as the growth of the system of bills. [...] The American banks were not in the habit of opening and drawing credits so there being no bills there were no dealers and it became necessary to develop the practice of opening commercial credits which the banks were only authorised to grant since the adoption of the Federal Reserve Act and it became necessary also to develop the practice of dealing with them in the market and to develop dealer [...] It has been well pointed out by Sir Basil Blackett that the Reserve Bank when it comes into existence will try and complete the chain of connection between itself at the apex of the pyramid and the local bankers ; and that the facility given through opening up the possibilities of discounting and rediscounting paper will have the effect of imparting " additional liquidity to the resources of these
history
Pages
108
Published in
India
SARF Document ID
sarf.120315
Segment Pages Author Actions
Cover
i-i M.S. Chelapathi view
Frontmatter
ii-iv M.S. Chelapathi view
What is Religion ?
819-836 Harry Fosdick view
The Indian Banking Problem
837-846 J.C. Coyajee view
Bijayakrishna Goswami
847-863 Bipin Chandrapal view
The Case for the Feudatory Chiefs
864-867 P.S. view
The Meaning of the American Election
868-872 Hary Ward view
On Life’s Journey
873-874 Nirupama Devi view
Gleanings
875-889 M.S. Chelapathi view
Book Reviews
890-895 M.S. Chelapathi view
Reviews Reviewed
896-907 M.S. Chelapathi view
Recent Books
908-909 M.S. Chelapathi view
Backmatter
i-xiii M.S. Chelapathi view

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