FISCAL: The Wind Changes

Had it not been drowned by the tumult of Washington's inflation wrangles, the voice of Federal Reserve Board Chairman Marriner S. Eccles might often have been heard quietly protesting the "monetization of the public debt." He did not like the way a large proportion of Treasury borrowing had been financed by bank credit, which added to the supply of money, instead of by individuals, which contracted the supply.

This week the board took a step toward practicing what its chairman preached. It eliminated the preferential wartime discount rate which enabled member banks...

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