The Federal Reserve System and Brokers' Loans

Archive Report

During the past year brokers' loans have increased by approximately one billion dollars. Each successive high level has been regularly noted in the financial columns. The maximum expansion was reached February 8, 1928, when the loans amounted to $3,835,020,000. A slight recession occurred during the week ending February 15, following upon the advance of Federal Reserve rediscount rates, and a marked recession during the week ending February 21, when there was severe liquidation in the stock market. On February 21, however, the total of brokers' loans was still above the level of the latter part of December and was $966,162,000 larger than the total of the corresponding week of last year. It is too early to tell whether the recessions of the last two ...

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