The Development of Federal Reserve Policy

Cover The Development of Federal Reserve Policy
The Development of Federal Reserve Policy
Harold L Harold Lyle Reed
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It had developed that one of the reserve banks had been meeting the currency requirements of its members by shipments of gold certifi- cates. Gold certificates could be obtainc^l a little more cheaply than the Federal Reserve notes. Section 16 states that The plates and dies to be procured by the Comptroller of the Currency for the printing of such circulating notes shall remain 'Section 2.
» See supra. Chapter X, pp. 217-219.
230 FEDERAL RESERVE POLICY under his control and direction, and the
...expenses necessarily incurred in executing the laws relating to the procuring of such notes, and all other expenses incidental to their issue and retire- ment, shall be paid by the Federal reserve banks . . .
The Board, however, requested the reserve banks to ignore their desire to save a small expense and to issue, instccid, whenever possible Federal Reserve notes, thereby helping to concentrate gold certificates in the vaults of the Federal Reserve banks. ' But to what extent would member banks be willing to receive Federal Reserve notes?


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