Bank Rate and Credit Control Federal Reserve Policies and the Defaltion Issue

Report Outline
The Bank Rate and Credit Control Federal Reserve Policies and the Deflation Issue
Special Focus

The Bank Rate and Credit Control Federal Reserve Policies and the Deflation Issue

Political Expressions

Each party has made reference in its platform to the Federal Reserve System with an implication concerning reform for purposes of alteration of the credit position, especially of the farmer, and two parties, the Democratic and the Third, have denounced the credit policy of the Federal Reserve Banks.

The Democratic platform says:

“We denounce the recent cruel and unjust contraction of legitimate and necessary credit and currency, which was directly due to the so called deflation policy of the Republican Party as declared in its national platform of June 1920, and in the speech of acceptance of its candidate for the Presidency. Within eighteen months after the election of 1920 this policy resulted in withdrawing bank loans and discounts by over $5,000,000,000 and in contracting our currency by over $1,500,000,000. This contraction bankrupted hundreds of thousands of farmers and stock growers in America and resulted in widespread industrial depression and unemployment. We demand that the Federal Reserve System be so administered as to give stability to industry, commerce and finance, as was intended, by the Democratic Party, which gave the Federal Reserve System to the nation”.