Banks and banking

Chairman Marriner S. Eccles of the Federal Reserve Board appeared before the Senate Banking Committee to defend the Board's request for power to restrict bank credit by requiring banks to increase their reserves. His defense was aimed primarily at the criticism of bankers, who want the board to resort to traditional ways of restricting credit by increasing bank discount rates and refusing to buy bank-held bonds being sold to provide new reserves for deposits. From: Beth Gore.

Marriner S. Eccles, Chairman of the Board of Governors of the Federal Reserve System, indicated that tax reductions would be a "tragic error." He told the Senate Banking Committee while testifying on the British loan that such action would increase the problem of inflation and decrease chances of balancing the Federal budget. From: Beth Gore.

Former President Harry S. Truman (left), standing behind a desk, at the dedication of the Capitol State Bank in Topeka, Kansas. The bank is owned by Mrs. Georgia Neese Clark Gray (center), treasurer of the United States during the Truman administration. The man on the right is unidentified. Donor: Judy Grant.