Only recently there were re-.|ports from ashington that Congress may be asked to tackle the matter. It was suggested that Congress arbitrarily lift reserve requirements to a level that would automatically absorb most of the excess reserves, leaving an amount which conceivably could be controlled through the open market operations of. the Reserve System. Although the twelve regional banks of the Reserve System have reduced their holdings of government securities in recent months, the still have a total of $2,383,500,000 of Treasury bonds and notes. Many State banks of the nation are not members of the Reserve System, though in recent weeks there have been many new admissions to the system, To this end there is the suggestion that all banks of the nation, member and non-member alike, keep their balances with the Reserve Banks, thus eliminating the controversial question of requiring all banks to join the Reserve S; Prior to 1931 excess reserves were trivial By the same token, prior to 1931, borrowings by member banks for the purpose of establish-quired reserves were substantial, particularly in the season of high. money market rates in 1928 and 1929. Borrowing of this nature virtually ceased to exist in 1933.
Text read from the printed page and cleaned; old type leaves the occasional error.