Regional President Speech

/. ,-/ T / ^ /tp-io.Kt <j-'1 f i ' i^'-,'t_^>'i_i#i hr-^ fiderai» remua», w yagua, Mesura, amp the B á m » arana 1« Tb« relationship b*t*aaa iba Traaaory aaA the Owtral Baak* i. Research rspori oo th« goT*n»«at of th« Bude of Frano* asda ihr## yaara ago. ai aliar »tudiaa on Kai oh» bank, Baofc of foglaiad, aad ih* Fad«imi Basarre fly»t«a« B* Occidua ion at io proper relation »hip. X* Iba oantral baak aaat not r— In on Its CÜjaplan halfhta* a# Iapo»alblas Dm I Isa. b. Disastrous (1) Castrai bank would ba raorgs irisad» or (a) Qantral bank would ba ahaarad of ita authority («■parlaría* in t¿» folta* »tata» foUawiaf 1933). a« A aantral baak should not ba aabaarriaBt* a# âafaty iafutilitgr* 3# Propar relationship •If the a*otral bank undarstanAa that it la It# fwurtloa to praaafit tha aooatajry polat of Tiaw oo «an sa* prohlaaa, aad if lâ had Attsaaadad ln okt>1a1ag a fair «oaaldarmtloa ii that poiaA of via* tbaa I thiak that it baa sskjrrad All ths lAdaMndtoaa tkat it kaTa* I tklak of the 1&» Aaaaadaaaac af a asafcx*al back i m i t^a i^LMáa^iM of aoa*tA¥7 prohlaaa aaA af acmj««* ia j*»f-kint tta:: TiWt't at «**» ia taraa of a traditivi liiiitsf re*p*ot of %ha {kjaanaMftt aad tha aahlAa A d vat ' al tk a# aku faaA tkaA It Msaraiaaa savanaMtal aoaaaa **A aal ba a II* fba perspective of ourr«nt probXaas. À« Tha Ooranaianti Absolarta^-to win ti» «x^ B. Tha Traanjtry. X» Abaoluta— to finaooa tba war. a* Cholea i ttatbod* of flnanoing* a# Taxatiom. b, Borroviag aavlafs fro® awrratíl inaoaa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

■ 2“ o« Borrowing aocuaulated tarings. d. Borrowing fro* ooaaereiaX banks. e. Borrowing fro* tho Federal Reserve Buka* 0* tho Federal Reserve Syeten. X« Absolutei to mo that all necessary funds aro raised* 2« Restricted action« a« Taxation, (X) Advice with tho Treasury and Congress. b. Borrowing savings— both fro« current laoooe and aeoumXatod« (1) Adwiee with Treasury or attractive issues. 3« Comparatively free action« a* All aaaber banks shall bo supplied with funds« XXI* Bvaluation of tho alternatives« A* Reduction of resort« requirements. B* Open aarkot pnrchasee. Direct purchase« Xiidied to %% biXlion« 6* Berroetag by a— bar beak»* Wmm *•£• m w preferential nj** Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prie» of » a# ooopoB bond to /laid 3 por mb* to ■fctw'lV «X 30 ym ** “ W • » ■ • * 16 ]TNN * uO M a * • • • *10 3m n - 10A4Ä ii » * • • • A T••** ■ 103»«7 y* • • • • • » «V» ■ uw.» Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis