Salt Lake Telegram | 1934-04-25 | Page 2 | Menace Seen in Idle Money

MENACE SEEN IN IDLE MONEY I 1 Wave of Speculation Threatens Threat Threat- ens Federal Reserve Board Warns WarnsBy i V f By Associated J Press rn WASHINGTON April 25 The Thc new deals deal's huge expenditures and Its monetary policy arc c driving the country toward an org orgy of credit inflation the federal reserve board warned today tod A billion and a half dollars dollar in idle cash have been piled up in the banks or of the nation by the outpouring of federal ely easy money and by the devaluation devaluation de- de valuation of the dollar the board dIsclosed This idle cash could form the thc basis for a credit in nation inflation of 20 according to the boards board's figures V To forearm the country a against a devastating wave ot of inflation when these huge stores tores of oC Idle cash and credit rush back into business and speculative channels the reserve board reiterated its iLo that hat request congress congress con con- gress revise the banking reserve re- re so tHat they will increase automatically with speculative I activity ity putting the brakes brakes' on any spun spun- ous boom The billion and a hall half dollars now lying unused in the banks banko can never be fully absorbed absorb cd by business and industry even though normalcy returns re- re turns the reserve board warned There is grave danger the board pointed out that the idle money not needed in sound commercial ion sion will find its way into large scale and destructive speculation