NOT UNDERSTOOD
AUSTRALIAN RUMOURS
FEDERAL RESERVE RANK
(Deceived sth December, 11 a.m.)
WASHINGTON, 4th December. Considerable surprise has beeji caused here by the circulation of a rieport in Australia that the United States Federal Beservo contemplated aa' expansion of the note issue in the iuterests of unemployment. It is pointed out that while the report shows cognisance of the sensational import of such a step it lacks familiarity with the> structure or purposes of the Federal BVeserve system. The system was instigated by President Wilson for the purpose of controlling inflation. An examination of the Federal Eeserve Act shows that the main body of notes can. only be issued against commercial obligations. This would make impossible any arbitrary expansion. Moreover, tine, information that unemployment to any I extent necessitating goch desperate financial remedies existed in the United States or was at all impending was received with incredulity. The rea<ption here was rather in the direction of not understanding the import of the Australian report. It is considered iantastie.
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Bibliographic details
Evening Post, Volume CVIII, Issue 136, 5 December 1929, Page 9
Word Count
168NOT UNDERSTOOD Evening Post, Volume CVIII, Issue 136, 5 December 1929, Page 9
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