“FANTASTIC REPORT”
STORY OF BIG NOTE ISSUE IN AMERICA '
TO MEET UNEMPLOYMENT Rccd. 11 a m. WASHINGTON. Wed. Considerable surprise has been caused here by the circulation of a report from Australia that the United States Federal Reserve contemplated an expansion of the note issue, in the interests 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 Reserve system. The latter was instigated by President Wilson for the purpose of controlling inflation. Examination of the Federal Reserve Act shows that the main body of notes can only he Issued against commercial obligations. This would make impossible any arbitrary expansion. Moreover, the information that unemployment to any extent necessitating such desperate financial remedies existed in the United States. . or was at all impending, is received "'ith incredulity. The reaction here was rather in the direction of 'not understanding the import# of the Australian report. It is considered fantastic. The Australian Press Association interviewed Governor Young, of the Federal Reserve Rank, who denied the truth of the note issue rumour. He said it was a wild dream.
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Bibliographic details
Sun (Auckland), Volume III, Issue 838, 5 December 1929, Page 9
Word Count
197“FANTASTIC REPORT” Sun (Auckland), Volume III, Issue 838, 5 December 1929, Page 9
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