ABSTRACT
The resolution adopted by the Federal Reserve Board in April, 1923, is the most important statement of policy since the enactment of the Federal Reserve law in 1913. The resolution reads: “That the time, manner, character, and volume of open-market investments purchased by Federal Reserve banks be governed with primary regard to the accommodation of commerce and business and to the effect of such purchases or sales on the general credit situation.” The policy of the Federal Reserve Board, since April, 1923, is to be contrasted with the highly different and highly disastrous policy of 1919 to 1921, when the Reserve Board did not guide itself by a policy of price stabilization, much less by a policy of credit stabilization.
