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Top Secret Federal Reserve gold exchange report 1961

Top Secret Federal Reserve gold exchange report 1961

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Published by babstar999
Top Secret Fed Reserve gold exchange report 1961.
The author of this Federal Reserve document is not clear, but was obviously written by a senior staffer who was not only familiar with the Fed's operation and that of the Treasury, but also well attuned to their policies and procedures. It appears to have been written by someone in the Federal Reserve Bank of New York, given the obvious familiarity and extensive knowledge of the writer with that branch's trading desk that executes trades for the Federal Reserve and the Treasury, which explains why this document is

source: http://emsnews2.wordpress.com/2009/01/15/1961-top-secret-fed-reserve-gold-exchange-report/

see also
http://www.gata.org/node/7095
Top Secret Fed Reserve gold exchange report 1961.
The author of this Federal Reserve document is not clear, but was obviously written by a senior staffer who was not only familiar with the Fed's operation and that of the Treasury, but also well attuned to their policies and procedures. It appears to have been written by someone in the Federal Reserve Bank of New York, given the obvious familiarity and extensive knowledge of the writer with that branch's trading desk that executes trades for the Federal Reserve and the Treasury, which explains why this document is

source: http://emsnews2.wordpress.com/2009/01/15/1961-top-secret-fed-reserve-gold-exchange-report/

see also
http://www.gata.org/node/7095

More info:

Published by: babstar999 on Feb 13, 2011
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02/13/2011

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U. S. Foreign Exchange Operations: Needs and MethodsIntroductionThe current international position of the United States clearlydemonstrates the advantages that would exist if the United States had at itsdisposal the resources and techniques for undertaking foreign exchangeoperations as a permanent feature of public policy. The present later*national financial structure, characterised by convertibility of the majorcurrencies, relatively free short-term capital markets, and the existenceof large dollar holdings by foreigners (both public and private), hasgreatly enhanced the possibility of large recurring movements of capitalout of and into the Halted States. Such movements of short-term capital,as the Federal Reserve System has learned from its experience of thepast year, eaa greatly complicate the execution of aa appropriate dome sticmonetary policy. Similar problems have been faced by monetary authorities abroad, ia both the recent period aad ia earlier years. Solutions toproblems relating to shifts ia capital flows aad their impact on nationalbalances of payments, together with the relationship of each internationalflows to domestic monetary policies are perhaps best approached through joint actioa by central banks. It is no accident that individual Europeancentral banks have developed highly sophisticated techniques of operatingin the foreign exchange market, aad have supplemented individual operations by joiat measures of both a formal aad aa informal, ad hoe, character.Monetary authorities ia the Plaited States, on the other hand,have not, aatU recently, operated ia the foreign exchange market, bat have
 
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maintained the stability (and primacy) of the dollar in the internationalcurrency structure by standing ready to buy gold from* and sell it to,foreign monetary authorities who either
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or acquire dollars for exchangepurposes. There can be little question that the intercon\ ertib lity of goldand the dollar at a fixed price will have to remain the keystone of theinternational currency structure. At the same time, foreign exchangedealings by the United States monetary authorities, when judiciouslyapplied, can serve to reduce capital flows, to dampen speculation, tominimize potential
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effects, and hence, to minimize the impact onthe United States gold stock.The basic purpose of such operations would be to maintain confidencein the dollar* Foreign exchange operations would, of course, not be asubstitute for other appropriate and basic actions to maintain the integrityof the dollar* but would server as a highly useful and flexible addition toother monetary and fiscal policy measures. The continuation and expan*sion of such operations as have recently
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executed respecting theGerman mark could make the United States an important factor in theexchange market and thus help to enhance its bargaining position in anyinternational approach to currency problems. Moreover, the holding of foreign currencies by the Waited States might strengthen confidence insuch currencies and add to their usefulness in international trade and payments and hence contribute to an expansion of the movement of goods andservices among countries.
 
3 I. Federal Reserve Operations for Its Own AccountPrevious ExperienceThe Federal Reserve Bask of Mew York has had a number of accounts abroad, of which three with nominal sum s remain at present.The three accounts are with the Bank of England, the Bank of Franceand the Bank of Canada. The reasons for opening the various accountsdiffer somewhat but maintenance of the accounts over recent years hasbeen largely a matter of courtesy.The account with the Bank of England was opened in 191? and subsequently need for a number of transactions involving exchange operations,investments and the purchase and earmark of gold. The account at theBank of France was opened in 1918 in order that we might establish asight account for possible nee in transactions for the stabilization of exchange rates.The BIS account was opened in 1931 in the sum of$10 million* Ina letter from Mr. Harrison to Chairman Eccles in September 1936 it wasstated that
*The deposit was made for the same purpose* essentially,as the credits which the Federal Reserve Banks extended to foreigncentral banks during 1931. It was made in lion of our having to respondto requests for assistance on behalf of various smaller European centralbanks.
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It was then msod for the purchases of prime commercial billsfor our account and finally closed in 1946.An account with the Bank of Canada was opened in 1943, almostentirely as a courtesy measnro. Other accounts included those with Iran,

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