News from 1930 Being a daily summary based upon my reading of the Wall Street Journal from the corr

09-12-2009 • News from 1930

B. Anderson, Chase Natl. Bank economist, says Fed policy of easy money will not be sustainable when business revives; suggests moderate tightening now to avoid shock of a sudden severe tightening later.Fed. Reserve member banks report brokers' loans rose $33M to $3.143B in week ended Sept. 10; total on Sept. 11, 1929 was $6.474B. Florida Bondholder's Adjustment Committee calls on owners of defaulted local bonds to accept arbitration with principle that local govt. should “pay to the full extent of its ability to pay” when fairly determined, and no more. Says full payment in many cases impossible due to string of problems in past few years including collapse of real estate boom, bank failures, storms, and Med. fly scare; local feeling is that many bonds were voted in due to high-pressure tactics by outsiders.

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