The peculiar provisions of the law requiring national banks to maintain reserves to meet the call of the depositors operates to increase the money stringency when it arises rather than to expand the supply of currency and relieve it.
In his 1930 address, Taft explains how national bank reserve requirements can exacerbate money stringency during crises.
Share
More from Bill Taft
The purpose of this exclusion is to restore the White Mountain Apache Indian Reservation in all respects to the status existing prior to the said proclamation of March 2, 1909, as though the inclusion of the lands within the Sitgreaves…
Now that they can be studied and understood—all the business men who touch the decision in any way will conduct their business hereafter according to the law.
I think it to be greatly in the interest of fair dealing, which ought always to be encouraged by law.
There is no difference between the reasons which call for the application of the leasing system to the coal lands still retained by the Government in the United States proper and those which exist in Alaska.
Other voices in this conversation
