09.
Five social workers decided to distribute 50 blankets to the poor peo
spend winter nights on the road sides, I cost of each 15057
What was the share of each one?
Give 2-more ideas to help them (value base question
a)
b)
Answers
VOL. 129.
SATURDAY, AUGUST 24 1929.
finantial Chronicle
PUBLISHED WEEKLY
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President and Editor, Jacob Seibert; Business Manager, WIIILem D. Riggs;
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The Financial Situation.
If the action of the Federal Reserve Board two
weeks ago in sanctioning an increase in the rediscount rate of the Federal Reserve Bank of New York
from 5% to 6%, after having repeatedly refused to
consent to such an increase, was intended to check
speculation on the Stock Exchange, or to interfere
with it in any way, it has signally failed of its
purpose. Evidence of such failure is seen on every
side. The surprise nature of the advance in the rate,
and the suddenness with which the move was determined upon, and coming at a time when no one was
prepared for it—the Reserve Board's previous course
and the utterances emanating from it having led
to the conviction that the members of the Board
were firmly resolved not to let the rate go above 5%,
the figure at which it had been maintained for over
a year—this surprise element in the action caused
a tremendous collapse on the Stock Exchange on
Friday, August 9. Hut it did not take the public
long to reach the conclusion that the rise in the
rate was not likely to prove of any great consequence, that it could not in any event serve to increase the tension in the money market, since the
Reserve Banks always trail behind the market in
fixing their rates instead of directing the course of
money, as do the central banks of Europe, that in
short marking up the rate was simply bringing the
Reserve rate in line with prevailing credit conditions, and as such was little more, after all, than
a gesture. This conclusion having been reached, the
market rebounded the very next day (Saturday,
August 10), and since then stock prices have continued to swing upward in more pronounced fashion
than ever before.
Instead of repressing speculative fervor, the stock
market has been engaged in staging a new bull movement in which caution has been scattered to the
winds and prices have been rising day by day in
such dazzling fashion as to startle persons conserva-
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