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CONFIDENTIAL:
NOT
FOR ' P U - s i ~ I C A T I O N
Questionnaire re
B g r i k e r s A c c e p t ~ c e s ,
Etc. ,
1)
Is the
ostaolishrnent
of dollar
exch:m;e
in world markets
l l l
essent ial benefi t to Arr•3ric =ln comrnerce
and th3
A m ~ r i c a n
people?
Stat:-:J reasons - nro or con.
(2) Is .en O " : ) ~ n discount market essent ial to th3 establishment of
dollar
exchcnge
in world rr,n.rkets?
St-:-t,:; reasons ... T)ro or
con.
(3)
Is a l ib >rctl onen
marb3t policy
by Federal
R e s e r ~ r e
B ~ · s essent ial
to
t h ~ development of an () T)en discount marl\At in
America?
St=.te reRsohs -
pr
or con.
(4) Does banl::-ers
acce l?tance
credi t , as nerrri.itted under the :F eder:ll.
Reserve ; ~ c t , suffici,:;ntl;t nrovidl3 for e s t a b l i s h r r ~ n t
of
doll.e.tr exchange
in world
markets?
I f
not, in
what wr:: y 8Pd tO what ext?rtt :u-e
the
nrovisions
of
the
P.ct
deficient?
(
5)
Does hankers accent·mce credi t , as :_Qermitted under th-3 Federal
Reserve .Act, tend to infl· l.tion of:
a)
Credit
?
(b) B llil: loF.ll ls
in United
St::(tes.?
l=>le: se sta.te . a r ~ e n t .
(6) Is the use of
banrers
a c c e n t ~ c e dollar credi t a b ~ n e f i t to
Americ-:n im r.lort 2nd.
er o r t trr:.de,
ei ther
or
both?
In ,qhe,
t ways is
i t benefici :-l
(7) Is
the
use of ~ a r u ~ e r s a c c e ~ t s n c e cred i t benef ic ia l in dorr.estic
t r . ~ . d e ?
(a)
In
d o : v ~ ~ s t i c tr.:ms T)ortation?
{h) On
W3-rehoused
s t ~ O l 8 s ?
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(B) Are .AmericPn 'rJankers
accentance
credi ts ,
as
·nermi t ted under
the
Federal Reserve Act, ordin: lrily
self-liquidatinrr
within the periods for
which
bi l l s
are drawn thereunder?
Does this
vary
.s's
to
c1A.sses
of
credits?
As to iT ' T,iort t r 2 n s : : : ~ . c t i o n s ?
Export transactions?
Domestic
tr.=.nS"Dort<;ttion tr:msactions?
Warehoused st.=t:r;>1es secured credits?
(9)
In. your
o-oinion does
correct banking :pr:tctice require
continuing
securi ty d u r i n ~
the
l i f e
of
t h ~
credi t for
~ e r s
acceptance
credits
granted ~ ~ a i n s t warehoused s t a ~ l e s
(l<b)
fs the US· 'l of
banlcers
acceptance credi t
c..bused and
i f
so
in
what
ways c.lll.d to what
extent?
(11) I f abuses exist how may they best be
corrected?
(12)
Is an onen discount
marl\::et for 'rJankers dollar acceptances essential
to
the
maintenance
or
further
development of
.American
foreign
t r ~ d e
I f so, why?
Is t essential or desiroble as
the
medium
for
r ~ J . i z a t i o n on bi l l s
d r ~ ~ in domestic trensactions?
I f
so,
why?
(13) Is an o ~ e n discount
market
e s s e n t i ~ l
of the American
system of
b '3l lk
in
Z
f
S
I 1/Vhy?
(13a) 1b.at i s the re la t ion of r.m O"'en discount
m a r b ~ t
to
the
international
flow of credit?
(14) Is
the
'ban1:ers
acceptance rJetter adapted
to
ne;;cotis.tion
in o:pen
m ~ r k e t
or to
private discount t th"3 drawer s or borrower s
bank?
Please
st8.te
a r ~ : u r n e n t .
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(15) Should the acceptor discount
or
buy his
o ~
acceptance from
the
drawer
or
other
holder in
due course?
I f
so, under what circurr1stances and why?
16)
I f
m ~ c c e p t o r
acquires
his
own
acce [)t:mce
before
rraturity,
shcrllld
he
rese l i i t
or
consider i t
re t i red?
(17) ShOUld bares indorse
b i l l s
(a) Sold
from
their own port fol io?
(b)
Rec 3ived
foi discoUnt
~
credi t of
correS1:)ondent?
Please s ta te argument.
(18)
Should
~ a n t s
indorse
merely
for
profi t?
(19)
Should
acceptors exchange a c c o r r ~ o d a t i o n
indorsements
or their
own
acceptances
for purnose
of
effecting rediscount or ~ e t t e r
terms
of
rediscount?
(20)
Should
there be any l imi ts
on
indorsements in the
cases S U L : ~ e s t e d
in questions 17, 18 and 19? I f so, Vhs.t l imits?
(21) Should there be
a difference
in
the
case
of
h i l l s tha t •'Vhen bought
h1.ve already a bc-.nk
1
s
or
a betnker s indorsement.
(22)
W i ~ l the onm
market
e f f e c t i v ~ l y l imit
th<:l
l i a b i l i t i ~ s of acceptors
~
indorsers
on
~ a p e r offered in
the
oncn m ~ r k e t ?
(23) Wrat should be the nol icy
of
Federcl.
Reserve
B a . r i . ~ s in O'Pen market
purchases
of
hankers a c c e p t ~ c e s ?
( 24)
Should F e d e r ~
Reser·r l
Banks
consider indorsement
of
a
m . : m ~ b e r
bank
on h i l l s bou,:ht as
rediscounts
for the member b a n l ~ ?
(a) I f bou;;ht in o-p;n
market?
(b)
I f
bou-;ht from the member
bonk?
(25) f considered as redisco1mts,
would
member 'Danks purch;:;..se bankers
376
acceptances
for
inv,::stment and rediscount
them on OCC3.sion a t Federal
Reserve
B ~ n k s ?
I f not, why not1
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(26)
,.,by
do banks buy b-ml:ers accer,tances in the onen market?
27) Should Federal Reserve
} i e . n l ~ s ever
buy unindorsed
bills?
28)
Should
they ever
buy from, or
discount
for,
an
acceptor,
his
own
P..cce:J:)tance?
::>J ~ r i
thout other
indor
serr.ent
(1:> ·
1ilii
th other
indor
s". rnent
Please
state ar?Ument.
29) Should
they
l >uy
lona maturities, short
maturities, or both?
}J)
Should t h , . ~ y
ever; merely as
a
matter of
'DOlicy, decline to buy
I
p r i m ~
indorsed ~ : > i l l s
at
some r ~ t e
(31) What would be the
effect
in the d p ~ m ~ r k e t
if as
a mdtter
of
policy,
Federal
Raserve
~ s did
discontinue open
m a r ~ e t purchases?
}2)
What
difference,
i f any, should
Federal
Reserve
B ~ ~ s
maintain
between rediscount rates and
purchase
rates ')n nrime b a n k e ~ s acceptances?
(33) Are
different
rediscount rates as distinguishea from purchase
rates) desirable for
hankers acceptances
and
~ r . o m i s s o r y notes?
If so,
what is the .,roper basis
for
difference?
34)
H01w,
and
tQ
what
extent,
are the policies and nractices of the
Federal Reserve ~ r s fel t as an influence in the o ~ e n market?
· a)
On
general ccmditions?
~ \
As towards
specific - ~ a ~ e r
or classes
of ~ a p e r ?
35)
Are
they
uniform
at
al l Federal
Reserve 3anks?
and
if not, should t h e ~ ~
be?
(36) Has the open market d e v e l o ~ e d in breadth
stability?
I f so, to
what coffiparative
extent?
Please discuss fully.
37)
What are
the
principal
causes
for the
slow development of an
acceptance
market?
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38)
What,
i f anything, further is
needed
for i t s development?
a)
To
~ ~ h a t
extent
do
acceptances
fac i l i ta te
the
~ ~
of
credit
between
different
sections
of
the U s 7
b) f
the ~ e d e r a l Reserve a r u ~ s adoryted a
narrower or
more
rest r ic ted pol icy
toward
open
market
purchases of ~ n k r s accept-
ances
than a t
present,
would th is have
a
tendency
to impede the n m of funds
when needed
from
creditor to
debtor
sections?
(39)
ShOUld
an eXport
or
import
l:lill
bear Specific
details
of
the
t ransact ion ·upon i t s face?
a) The desirabi l i ty
b)
The
probabil i ty.
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