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Show vffllCTSH FINANCIAL II Momentous Problems Demand De-mand More Attention Than Those of War. Bulletin of Federal Reserve Board Sets Questions Out. WASHINGTON'. IVi IS. A lu-w or.v In Aiiiork'iin fiunm-p. "roiiloto Willi m-w mul mKm.Mitoiia.pnU.ltMns. domamiinff iu loss sorlovis consUk-ratlun than tlioso of war," la luv.lk-tcd In Iho ruvcmtur hnllolln of tho federal rosiTvo board, iniulo nubile Unlay. . Radonlnsr of tl flnanelal rcsour.'os of jA1u country during the transition )crloil, not widely differing from tliat required ' when tho nation was at war; akl to for-oiK'i for-oiK'i governments through the. medium of banks, in addition to that which may bo renuiroil from tho American government; prevention of Inflation: limitation of industry in-dustry to "those linos which may properly prop-erly bo called essential," and methods for absorption of war loans, were, some of the suggestions made for securing a sound economic basis for the future. Must Set Limits. With tho termination of the war, the I'niled States. In common with, the rest of tho world, is confronted with problems prob-lems and needs throwing out of reconstruction: recon-struction: but, In tho opinion of tho board, definite limits must bo set to tho reniurements of public financing "The lniuld capital of the country," tho bulletin continues, "may for a long time to come be inadequate to meet the demands de-mands of the world, and some process ot husbanding or rationing it must therefore there-fore he applied during- reconstruction, just as has been tho case during the period pe-riod of the war. Tho methods will not be the same, but will be closely analogous analo-gous to those pursued during the w,r " Attention is called to the fact that the federal reserve system is now in an "ex! ceotional position for influencing the distribution dis-tribution and use of banking credi upon an economic basis." " 1 "1'on Necessity for the reduction of loan on war paper is dealt with at length and direct absorption of the government bonds now carried by the banks throu "l extensive popular saving is susgested as a means of creating new current wealth. 1th the return of bunks' obligations to normal liciuidity, and as commercial paper takes the place of notes secured by bonds and certificates of indebtedness, indebted-ness, now making up a largo proportion of the federal reserve system assets, the bulletin says, prices will gradually work toward a normal and stable basis. "Coincident with tho reduction of domestic do-mestic war loans," the bulletin savs with reference to foreign aid. "tlyiro may probably be expected to develop a direct demand upon our banking resources for accommodation designed to facilitate tho movement of goods to other countries. l'Yom this time forward tho bulk of our foreign financing will necessarily return to a peace basis, and tho services ser-vices of our banks will lie in supplying the means of financing tho movement of consumable goods to tho foreign, countries coun-tries by which they are needed." |