Treasury Action Believed to Be Non-Deflationary Washington, Feb. 14 The United States Treasury is limiting, as from February 1, sterilization' operations io s over $100,000,000 acquired during each quarter, it is announced to-day by Mr. Henry Morgenthau, Secretary of the Treasury.
Gold acquisitions up to $10,000,000 in each quarterly period will thereby be allowed to increase the excess bank reserves without any offsetting Treasury action.
As $30,000,000 worth of gold has already been acquired in the current quarter, this amount will be desterilized immediately by depositing $30,000,000 worth of gold certificates with the Reserve Banks.
High officials expressed the view to-day that they expected the action of the Treasury would be nondéflationary.—Reuter.
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