OCR Text |
Show I OFFERS CREDIT RE-I RE-I LIEF RESTRICTION I ' Tn recent interview, It. L. ftutter, president ot the Spokane and East-I East-I crn Trust company and a director of I tho Federal Reserve bank ot Spo- kr.no said:. "Much attention Is being given to tho suggestion of tho Harrlman -Na-H tlonal bank of New York for a re- yV" lief of the restriction placed upon credits by the Federal Reserve banks. Financial opinion of weight believes this restriction Is primarily primar-ily due to congestion of rediscounts of llborty loan bonds carried for member banks resulting from urge to buy bonds liberally and to borrow from tho banks. "This bank suggests that relief could bo readily accomplished by ft' conference with England andFjanco looking to an agreement whereby tho nllled'debt of ten billion dollars owing ow-ing tho United States now In the form Of promissory demand notes, could be changed Into obligations of fixed maturity ,nt terms nnd irate of interest which tho allies could meet and the now securities offered to Am e'rlcan Investors. i "Tho Harrlman bunk believes that these securities would be absorbed, and In support ot this belief cites tho recent oversubscription of such new flotations as Armour and company, com-pany, General Motors and tho Swiss government. As tho foreign securities securi-ties were sold tho process could bo applied to retiring a like amount ot I Llborty" bonds thereby relieving tho I federal anks and releasing credit for ,1 uso in trade. This would also re- duco tho government debt from approximately ap-proximately twenty-five billion dollars dol-lars to fifteen billion dollars. |