Effects of the War on Money, Credit and Banking in France and the United States

By Benjamin M. Anderson | Go to book overview

CHAPTER XV
The Federal Reserve System during the War

The task undertaken in this study has been to set forth the effects of the war upon money, credit and banking, rather than to write a comprehensive history of developments in money, credit and banking during the war. A large volume would be required to treat adequately the extraordinary developments in the United States during the war, in view of the inauguration of our federal reserve system.

But it has been possible to trace the main movements in money, credit and banking, growing out of the war down to March, 1917, when the United States broke with Germany, with comparatively little reference to the federal reserve system.

The federal reserve system had not been set going when the great war broke out at the end of July, 1914. The Federal Reserve Board was not organized till August 12, 1914, and the federal reserve banks were not opened for business till November 16, 1914. It was the Aldrich-Vreeland notes, and the close cooperation of existing banks, clearing houses, stock exchanges and the Treasury, which met the first shock of the war. The flood of gold which came to us beginning with December, 1914, made, as shown by our curve for call rates in New York,1 the easiest money market in the history of Wall Street, and made it largely unnecessary, before April, 1917, for the banks generally to have recourse to rediscounting at the federal reserve banks.2 Certain of the country federal reserve banks, as those at Dallas, Kansas City and Atlanta, began to rediscount substantially soon after they began business, particularly as the rise in agricultural prices and the revival of agricultural prosperity made increasing demands on the loan funds of the member banks in these districts.

____________________
1
Page 154.
2
Another factor was the reduction in legal reserve requirements, under the Federal Reserve Act.

-165-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Effects of the War on Money, Credit and Banking in France and the United States
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 227

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.