Federal Reserve Act Amendment: Hearing Before Subcommittee No. 2 of the Committee on Banking and Currency, House of Representatives, Eighty-sixth Congress, Second Session, on H.R. 12346. May 31, 1960 |
Common terms and phrases
$5 billion outstanding 17 dealers 1960 COMMITTEE abused by considering bank reserve BANKING AND CURRENCY BARR BARRETT ber of amount buy bonds directly call a disorderly cash balance aspect Chairman commercial banks COMMITTEE ON BANKING Congress DERWINSKI direct purchase authority disorderly market Eccles ended April 16 Federal Reserve Act Federal Reserve banks Federal Reserve Board Federal Reserve System Government's bills handle the refunding HIESTAND House of Representatives increased Federal Reserve JOSEPH W June 30 keeping enough money limit off entirely Maximum ber Maximum number money market MOORHEAD national emergency number of days open market party line telephone PAUL BROWN pay the dealers pay the Government's Pennsylvania percent protect the cash purchase authority provides purchases of U.S. RESERVE ACT AMENDMENT restrictions short-term rate statement subcommittee taken off entirely temporary financing tollgate Treasury 8 days Treasury is strongly Treasury to handle U.S. Government Wall Street dealers WRIGHT PATMAN
Popular passages
Page 1 - Act, as amended, to extend for two years the authority of Federal Reserve banks to purchase United States obligations directly from the Treasury. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That Section 14(b) of the Federal Reserve Act, as amended (12 USC 355) is amended by striking out "July 1, 1962...
Page 7 - ... provision would not prevent this, as the Federal Reserve banks may time their purchases of Treasury securities in the open market with sales by the Treasury. The only effect the provision has in practice in this regard is to make it necessary for the Reserve banks to pay commissions to brokers. It also makes it impossible for the Reserve banks to accept short-term certificates of indebtedness from the Treasury in anticipation of tax receipts during quarterly financing and income-tax payment periods....
Page 7 - ... questions now, but I want to ask them so that the reporter may give him the questions, and he can put them in his testimony. Governor ECCLES. Could I get a copy of them ? Mr. PATMAN. Surely. I want you to get a copy of them and answer (them later. Will that be all right ? Governor ECCLES. Yes. Mr. PATMAN. The first question is that the law prohibits the Federal Reserve System from buying bonds directly from the Treasury. I wonder if you are in favor of changing the law, so that you can buy bonds...
Page 1 - HOUSE OF REPRESENTATIVES, COMMITTEE ON BANKING AND CURRENCY, SUBCOMMITTEE No. 2, Washington, DC The subcommittee met, at 10 am, Hon.
Page 1 - I am glad to appear before you today to present the views of the Treasury Department in support of HR 8729.
Page 1 - June 30, 1962, without further amendment, the present authority of the Federal Reserve banks to purchase public debt obligations directly from the Treasury in an amount not to exceed $5 billion outstanding at any one time. The bill is endorsed by the Board of Governors of the Federal Reserve System.
Page 5 - ... there have been instances in the past when a larger cash balance would have permitted greater flexibility in timing of borrowing operations. Nevertheless, the Treasury does not believe that the direct purchase authority of the Federal Reserve should be used to bolster cash balances for this purpose. The direct purchase authority is properly viewed by both the Federal Reserve and the Treasury as an emergency authority. This interpretation is supported by the fact that the authority is temporary...
Page 11 - Baird, would you like to expand on your statement? Do you have anything further you would like to say?