Kenneth D. Garbade
- Published in print:
- 2012
- Published Online:
- August 2013
- ISBN:
- 9780262016377
- eISBN:
- 9780262298674
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262016377.003.0008
- Subject:
- Economics and Finance, Econometrics
This chapter describes the Treasury redeposit program. The Treasury was expected to redeposit in commercial banks the proceeds of wartime securities sales until the funds were needed. While the ...
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This chapter describes the Treasury redeposit program. The Treasury was expected to redeposit in commercial banks the proceeds of wartime securities sales until the funds were needed. While the Treasury already had a network of national bank depositories, Treasury Secretary McAdoo wanted a broader network that included state-chartered banks. Congress agreed, and provided for a broad depository program in the very first Liberty Loan act. Under the program, the Secretary of the Treasury was not limited to placing deposits with national banks, but could also place deposits with state-chartered banks, including banks that were not members of the Federal Reserve System.Less
This chapter describes the Treasury redeposit program. The Treasury was expected to redeposit in commercial banks the proceeds of wartime securities sales until the funds were needed. While the Treasury already had a network of national bank depositories, Treasury Secretary McAdoo wanted a broader network that included state-chartered banks. Congress agreed, and provided for a broad depository program in the very first Liberty Loan act. Under the program, the Secretary of the Treasury was not limited to placing deposits with national banks, but could also place deposits with state-chartered banks, including banks that were not members of the Federal Reserve System.
