Salt Lake Telegram | 1935-12-19 | Page 12 | Banking Policy Called Sound

BANKING POLICY 1 GALLED CALLED SOUND WASHINGTON Dec Dee 1 13 The Thc The federal reserve board sees sees' no evidence evidence evidence evi evi- dence of over expansion 1 of business business busi business ness or of the use of f business credit A joint statement o of the board and its open market committee issued is issued issued is- is sued after a a. stu study y of the questions raised by the f fact ct that banks have in excess reserves said action on on this matter would be taken as a's soon soon as s it appears to be in the public Interest Continued improvement was found in business conditions although although although al al- though the committee declared the nation still is b short of full lull ery The statement listed the furtherance furtherance furtherance further further- ance of recovery recovery as the primary objective objective ob ob- of at tho the federal reserve tem The present volume of ot members members' bank reserves which have been greatly increased by imports of gold from abroad continues continues' to be excessive far tar beyond the present o or prospective requirements of ot credit cred cred- it for fot sound business expansion the statement said In the statement observers saw disinclination disinclination- of the open market marke committee to follow the advice o othe of the advisory council counell made up of b business men in tho the reserve districts districts dis dis- dis- dis which had recommended that reserve banks sell Isell some of f their government securities to member banks thus thus' reducing the excess re re- re serves serve