Salt Lake Telegram | 1928-06-04 | Page 5 | Highest Credit Level Reacher

I HIGHEST t W W. HINGTON June 4 AP AP- AP The h iest level of credit E ever er at attained attained at- at by member banks of t the federal federal federal fed fed- eral reserve system was reached Inthe in inthe inthe the middle of May despite efforts t 1 of the board to the cheek check the increasing increasIng increasing ing volume of bank loans for fot transactions transactions trans trans- actions In securities In a a. statement today the board ard said that durin during le recent Decent months increasing in increasing increasing in- in creasing pressure member banks through gold exports security sales by the reserve ba banks ks and advances in rediscount rates has not had the effect of arresting the rapid rapI rapid expansion expansion expansion sion of member bank credit The policy polley of the reserve banks however has resulted In greatly In Increasing increasing increasing in- in creasing the Indebtedness of member member member mem mem- ber banks to the reserve banks the statement added In the middle of May discounts by the reserve banks for member banks amounted to the larg largest lagest st amount In In more moro than four years and In addition addi addition tion the reserve banks held In acceptances purchased from the member banks and from dealers This growth In member bank In Indebtedness Indebtedness indebtedness In- In has been widespread affecting affecting af af- member banks bank's not only In New York City andin and J la other r leading cities but also in smaller Advances in rediscount rates and In buying rates on bills furthermore have increased ased considerably considerably consid cor the cost to J member 1 banks of f their indebtedness Indebtedness to the reserve banks This higher cost ost of reserve bank credit and the traditional reluctance re reluctance reluctance re- re re- re of member banks to remain continuously In debt at the at-the the res reserve banks exert a a. continuous continuous- pressure on the member banks bank