1.
60th United States Congress
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It met in Washington, DC from March 4,1907 to March 4,1909, during the last two years of Theodore Roosevelts presidency. The apportionment of seats in the House of Representatives was based on the Twelfth Census of the United States in 1900, both chambers had a Republican majority. May 30,1908 — Aldrich-Vreeland Act, ch,229,35 Stat.5461908 — The Federal Employers Liability Act,5645 U. S. C. §51 et seq. November 16,1907, Oklahoma was admitted as the 46th state, the count below reflects changes from the beginning of the first session of this Congress. Lyon of New York, elected December 2,1907 Postmaster, Samuel Langum of New York, elected December 2,1907 Clerk at the Speaker’s Table, biographical Directory of the U. S. Congress. Archived from the original on June 1,2006, archived from the original on June 1,2006. Archived from the original on June 1,2006, official Congressional Directory for the 60th Congress, 1st Session. Official Congressional Directory for the 60th Congress, 1st Session, official Congressional Directory for the 60th Congress, 1st Session. Official Congressional Directory for the 60th Congress, 2nd Session, official Congressional Directory for the 60th Congress, 2nd Session
2.
United States Statutes at Large
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Each act and resolution of Congress is called a slip law, which is classified as either public law or private law, and designated and numbered accordingly. At the end of a Congress session, slip laws are compiled into Statutes at Large and they are part of a three-part model for publication of federal statutes consisting of slip laws, session laws, and codification. Today, large portions of slip laws denominated as public laws are now drafted as amendments to the United States Code. Once enacted into law, an Act will be published in the Statutes at Large and will add to, modify, provisions of a public law that contains only enacting clauses, effective dates, and similar matters are not generally codified. Private laws also are not generally codified, some portions of the United States Code have been enacted as positive law and other portions have not been so enacted. Publication of the United States Statutes at Large began in 1845 by the firm of Little, Brown. During Little, Brown and Companys time as publisher, Richard Peters, George Minot, in 1874, Congress transferred the authority to publish the Statutes at Large to the Government Printing Office under the direction of the Secretary of State. 633, was enacted July 30,1947 and directed the Secretary of State to compile, edit, index,980, was enacted September 23,1950 and directed the Administrator of General Services to compile, edit, index, and publish the Statutes at Large. Since 1985 the Statutes at Large have been prepared and published by the Office of the Federal Register of the National Archives, sometimes very large or long Acts of Congress are published as their own volume of the Statutes at Large. For example, the Internal Revenue Code of 1954 was published as volume 68A of the Statutes at Large. Volumes 1 to 18 of the Statutes at Large made available by the Library of Congress Volumes 1 to 64 of the Statutes at Large made available by the Congressional Data Coalition via LEGISWORKS
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United States Code
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The Code of Laws of the United States of America is the official compilation and codification of the general and permanent federal statutes of the United States. It contains 52 titles, and a further three titles have been proposed, the main edition is published every six years by the Office of the Law Revision Counsel of the House of Representatives, and cumulative supplements are published annually. The official version of those laws not codified in the United States Code can be found in United States Statutes at Large, the official text of an Act of Congress is that of the enrolled bill presented to the President for his signature or disapproval. Upon enactment of a law, the bill is delivered to the Office of the Federal Register within the National Archives. After authorization from the OFR, copies are distributed as slip laws by the Government Printing Office, the Archivist assembles annual volumes of the enacted laws and publishes them as the United States Statutes at Large. By law, the text of the Statutes at Large is legal evidence of the laws enacted by Congress, slip laws are also competent evidence. The Statutes at Large, however, is not a convenient tool for legal research and it is arranged strictly in chronological order so that statutes addressing related topics may be scattered across many volumes. Statutes often repeal or amend laws, and extensive cross-referencing is required to determine what laws are in force at any given time. The United States Code is the result of an effort to make finding relevant and effective statutes simpler by reorganizing them by subject matter, the Code is maintained by the Office of the Law Revision Counsel of the U. S. House of Representatives. The LRC updates the Code accordingly, because of this codification approach, a single named statute may or may not appear in a single place in the Code. Often, complex legislation bundles a series of provisions together as a means of addressing a social or governmental problem, for example, an Act providing relief for family farms might affect items in Title 7, Title 26, and Title 43. When the Act is codified, its various provisions might well be placed in different parts of those various Titles, usually, the individual sections of a statute are incorporated into the Code exactly as enacted, however, sometimes editorial changes are made by the LRC. Though authorized by statute, these changes do not constitute positive law, the authority for the material in the United States Code comes from its enactment through the legislative process and not from its presentation in the Code. For example, the United States Code omitted 12 U. S. C. §92 for decades, apparently because it was thought to have been repealed. In its 1993 ruling in U. S. National Bank of Oregon v. Independent Insurance Agents of America, by law, those titles of the United States Code that have not been enacted into positive law are prima facie evidence of the law in effect. The United States Statutes at Large remains the ultimate authority, if a dispute arises as to the accuracy or completeness of the codification of an unenacted title, the courts will turn to the language in the United States Statutes at Large. This process makes that title of the United States Code legal evidence of the law in force, where a title has been enacted into positive law, a court may neither permit nor require proof of the underlying original Acts of Congress. The distinction between enacted and unenacted titles is largely academic because the Code is nearly always accurate, the United States Code is routinely cited by the Supreme Court and other federal courts without mentioning this theoretical caveat
4.
Edward B. Vreeland
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Edward Butterfield Vreeland was a United States Representative from New York. Born in Cuba, Allegany County, New York, he graduated from Friendship Academy in 1877, in 1869 he moved to Salamanca and was superintendent of the public schools there from 1877 to 1882. He studied law and was admitted to the bar in 1881 and he engaged in banking and in the oil and insurance business and became president of the Salamanca Trust Co. in 1891, from 1889 to 1893 he served as postmaster of Salamanca. Vreeland was elected as a Republican to the Fifty-sixth Congress to fill the vacancy caused by the resignation of Warren B. Hooker and he was reelected to the Fifty-seventh and to the five succeeding Congresses and held office from November 7,1899 to March 3,1913. While in the House, he was chairman of the Committee on Banking and he declined to be a candidate for renomination in 1912, and was appointed a member of the National Monetary Commission, serving as vice chairman from 1909 to 1912. He resumed former business pursuits in Salamanca until January 1,1936 and he died in Salamanca, interment was in Wildwood Cemetery. Biographical Directory of the United States Congress
5.
Republican Party (United States)
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The Republican Party, commonly referred to as the GOP, is one of the two major contemporary political parties in the United States, the other being its historic rival, the Democratic Party. The party is named after republicanism, the dominant value during the American Revolution and it was founded by anti-slavery activists, modernists, ex-Whigs, and ex-Free Soilers in 1854. The Republicans dominated politics nationally and in the majority of northern States for most of the period between 1860 and 1932, there have been 19 Republican presidents, the most from any one party. The Republican Partys current ideology is American conservatism, which contrasts with the Democrats more progressive platform, further, its platform involves support for free market capitalism, free enterprise, fiscal conservatism, a strong national defense, deregulation, and restrictions on labor unions. In addition to advocating for economic policies, the Republican Party is socially conservative. As of 2017, the GOP is documented as being at its strongest position politically since 1928, in addition to holding the Presidency, the Republicans control the 115th United States Congress, having majorities in both the House of Representatives and the Senate. The party also holds a majority of governorships and state legislatures, the main cause was opposition to the Kansas–Nebraska Act, which repealed the Missouri Compromise by which slavery was kept out of Kansas. The Northern Republicans saw the expansion of slavery as a great evil, the first public meeting of the general anti-Nebraska movement where the name Republican was suggested for a new anti-slavery party was held on March 20,1854, in a schoolhouse in Ripon, Wisconsin. The name was chosen to pay homage to Thomas Jeffersons Republican Party. The first official party convention was held on July 6,1854, in Jackson and it oversaw the preserving of the union, the end of slavery, and the provision of equal rights to all men in the American Civil War and Reconstruction, 1861–1877. The Republicans initial base was in the Northeast and the upper Midwest, with the realignment of parties and voters in the Third Party System, the strong run of John C. Fremont in the 1856 United States presidential election demonstrated it dominated most northern states, early Republican ideology was reflected in the 1856 slogan free labor, free land, free men, which had been coined by Salmon P. Chase, a Senator from Ohio. Free labor referred to the Republican opposition to labor and belief in independent artisans. Free land referred to Republican opposition to the system whereby slaveowners could buy up all the good farm land. The Party strove to contain the expansion of slavery, which would cause the collapse of the slave power, Lincoln, representing the fast-growing western states, won the Republican nomination in 1860 and subsequently won the presidency. The party took on the mission of preserving the Union, and destroying slavery during the American Civil War, in the election of 1864, it united with War Democrats to nominate Lincoln on the National Union Party ticket. The partys success created factionalism within the party in the 1870s and those who felt that Reconstruction had been accomplished and was continued mostly to promote the large-scale corruption tolerated by President Ulysses S. Grant ran Horace Greeley for the presidency. The Stalwarts defended Grant and the system, the Half-Breeds led by Chester A. Arthur pushed for reform of the civil service in 1883
6.
New York (state)
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New York is a state in the northeastern United States, and is the 27th-most extensive, fourth-most populous, and seventh-most densely populated U. S. state. New York is bordered by New Jersey and Pennsylvania to the south and Connecticut, Massachusetts, and Vermont to the east. With an estimated population of 8.55 million in 2015, New York City is the most populous city in the United States, the New York Metropolitan Area is one of the most populous urban agglomerations in the world. New York City makes up over 40% of the population of New York State, two-thirds of the states population lives in the New York City Metropolitan Area, and nearly 40% lives on Long Island. Both the state and New York City were named for the 17th-century Duke of York, the next four most populous cities in the state are Buffalo, Rochester, Yonkers, and Syracuse, while the state capital is Albany. New York has a diverse geography and these more mountainous regions are bisected by two major river valleys—the north-south Hudson River Valley and the east-west Mohawk River Valley, which forms the core of the Erie Canal. Western New York is considered part of the Great Lakes Region and straddles Lake Ontario, between the two lakes lies Niagara Falls. The central part of the state is dominated by the Finger Lakes, New York had been inhabited by tribes of Algonquian and Iroquoian-speaking Native Americans for several hundred years by the time the earliest Europeans came to New York. The first Europeans to arrive were French colonists and Jesuit missionaries who arrived southward from settlements at Montreal for trade, the British annexed the colony from the Dutch in 1664. The borders of the British colony, the Province of New York, were similar to those of the present-day state, New York is home to the Statue of Liberty, a symbol of the United States and its ideals of freedom, democracy, and opportunity. In the 21st century, New York has emerged as a node of creativity and entrepreneurship, social tolerance. On April 17,1524 Verrazanno entered New York Bay, by way of the now called the Narrows into the northern bay which he named Santa Margherita. Verrazzano described it as a vast coastline with a delta in which every kind of ship could pass and he adds. This vast sheet of water swarmed with native boats and he landed on the tip of Manhattan and possibly on the furthest point of Long Island. Verrazannos stay was interrupted by a storm which pushed him north towards Marthas Vineyard, in 1540 French traders from New France built a chateau on Castle Island, within present-day Albany, due to flooding, it was abandoned the next year. In 1614, the Dutch under the command of Hendrick Corstiaensen, rebuilt the French chateau, Fort Nassau was the first Dutch settlement in North America, and was located along the Hudson River, also within present-day Albany. The small fort served as a trading post and warehouse, located on the Hudson River flood plain, the rudimentary fort was washed away by flooding in 1617, and abandoned for good after Fort Orange was built nearby in 1623. Henry Hudsons 1609 voyage marked the beginning of European involvement with the area, sailing for the Dutch East India Company and looking for a passage to Asia, he entered the Upper New York Bay on September 11 of that year
7.
United States Senate Committee on Finance
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The U. S. Senate Committee on Finance is a standing committee of the United States Senate. It is considered to be one of the most powerful committees in Congress, the Committee on Finance is one of the original committees established in the Senate. On December 10,1816 the Senate officially created the Committee on Finance as a standing committee, originally, the Committee had power over tariffs, taxation, banking and currency issues and appropriations. Under this authority the committee played a role in the most heated topics of the era, including numerous tariffs issues. The committee was influential in the creation of the Department of Interior in 1849. Under the Chairmanship of William Pitt Fessenden, the played a decisive role during the Civil War. Appropriating all funds for the war effort as well as raising funds to finance the war through tariffs. Additionally, the committee produced the Legal Tender Act of 1862, in 1865 the House of Representatives created an Appropriations Committee to relieve the burden from the Committee on Ways and Means. The Senate followed this example by forming the Appropriations Committee in 1867, despite the loss of one of its signature duties the committee continued to play a prominent role in the major issues of the nation. The committee was at the center of the debate over the question in the latter half of the 19th Century. Passage of the Bland-Allison Act and the Sherman Silver Purchase Act were attempts to remedy the demand for silver, the committee also continued to play a role in the debate over income taxes. The repeal of the Civil War income taxes in the 1870s would eventually be raised in 1894 with the passage of a new tax law. The Supreme Courts decision in Pollock v. Farmers Loan and Trust Company ruled the income tax as unconstitutional, the fight for an income tax finally culminated with the Payne-Aldrich Tariff Act of 1909. In order to pass the new tariff Senate leaders, including Chairman Nelson Aldrich, four years later the 16th Amendment was officially ratified and in 1913 the nations first peacetime income tax was instituted. Around that same time the committee lost jurisdiction over banking and currency issues to the newly created Committee on Banking, the committee did gain jurisdiction over veterans’ benefits when it successfully passed the War Risk Insurance Act of 1917. The act shifted pensions from gratuities to benefits and which served as one of the first life insurance programs created under the federal government, the Finance Committee continued to play an increasingly important role in the lives of the nations veterans. The committee helped to consolidate the veteran bureaucracy by streamlining the various responsibilities into a Veterans Bureau which ultimately would become the Veterans Administration, in 1924 the committee passed a Bonus Bill for World War I veterans which compensated veterans of that war for their service. These series of increasing and providing better benefits for veterans reached a crescendo in 1944 with the passage of the Servicemens Readjustment Act, senator Bennett Champ Clark, who served as the Chairman of the Subcommittee on Veterans, assured smooth sailing of the bill through the Senate
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Theodore Roosevelt
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Theodore Roosevelt Jr. was an American statesman, author, explorer, soldier, naturalist, and reformer who served as the 26th president of the United States from 1901 to 1909. As a leader of the Republican Party during this time, he became a force for the Progressive Era in the United States in the early 20th century. Born a sickly child with debilitating asthma, Roosevelt successfully overcame his health problems by embracing a strenuous lifestyle and he integrated his exuberant personality, vast range of interests, and world-famous achievements into a cowboy persona defined by robust masculinity. Home-schooled, he began a lifelong naturalist avocation before attending Harvard College and his first of many books, The Naval War of 1812, established his reputation as both a learned historian and as a popular writer. Upon entering politics, he became the leader of the faction of Republicans in New Yorks state legislature. Returning a war hero, he was elected governor of New York in 1898, the state party leadership distrusted him, so they took the lead in moving him to the prestigious but powerless role of vice presidential candidate as McKinleys running mate in the election of 1900. Roosevelt campaigned vigorously across the country, helping McKinleys re-election in a victory based on a platform of peace, prosperity. Following the assassination of President McKinley in September 1901, Roosevelt succeeded to the office at age 42, making conservation a top priority, he established a myriad of new national parks, forests, and monuments intended to preserve the nations natural resources. In foreign policy, he focused on Central America, where he began construction of the Panama Canal and he greatly expanded the United States Navy and sent the Great White Fleet on a world tour to project the United States naval power around the globe. His successful efforts to end the Russo-Japanese War won him the 1906 Nobel Peace Prize, elected in 1904 to a full term, Roosevelt continued to promote progressive policies, but many of his efforts and much of his legislative agenda were eventually blocked in Congress. Roosevelt successfully groomed his close friend, William Howard Taft, to succeed him in the presidency, after leaving office, Roosevelt went on safari in Africa and toured Europe. Returning to the United States, he became frustrated with Tafts approach, failing to win the Republican presidential nomination in 1912, Roosevelt founded his own party, the Progressive, so-called Bull Moose Party, and called for wide-ranging progressive reforms. The split among Republicans enabled the Democrats to win both the White House and a majority in the Congress in 1912, Republicans aligned with Taft nationally would control the Republican Party for decades. Frustrated at home, Roosevelt led an expedition to the Amazon basin. During World War I, he opposed President Woodrow Wilson for keeping the country out of the war, and offered his military services, although planning to run again for president in 1920, Roosevelt suffered deteriorating health and died in early 1919. Roosevelt has consistently ranked by scholars as one of the greatest American presidents. Historians admire Roosevelt for rooting out corruption in his administration, but are critical of his 1909 libel lawsuits against the World and his face was carved into Mount Rushmore, alongside those of George Washington, Thomas Jefferson, and Abraham Lincoln. Theodore Roosevelt Jr. was born on October 27,1858, at East 20th Street in New York City and he was the second of four children born to socialite Martha Stewart Mittie Bulloch and glass businessman and philanthropist Theodore Roosevelt Sr
9.
Panic of 1907
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Panic occurred, as this was during a time of economic recession, and there were numerous runs on banks and trust companies. The 1907 panic eventually spread throughout the nation when many state and local banks, primary causes of the run included a retraction of market liquidity by a number of New York City banks and a loss of confidence among depositors, exacerbated by unregulated side bets at bucket shops. The panic was triggered by the attempt in October 1907 to corner the market on stock of the United Copper Company. The collapse of the Knickerbocker spread fear throughout the citys trusts as regional banks withdrew reserves from New York City banks, Panic extended across the nation as vast numbers of people withdrew deposits from their regional banks. This highlighted the impotence of the nations Independent Treasury system, which managed the money supply. By November, the contagion had largely ended, only to be replaced by a further crisis. This was due to the borrowing of a large brokerage firm that used the stock of Tennessee Coal, Iron. Collapse of TC&Is stock price was averted by a takeover by Morgans U. S. Steel Corporation—a move approved by anti-monopolist president Theodore Roosevelt. Each autumn money flowed out of the city as harvests were purchased and—in an effort to attract money back—interest rates were raised, foreign investors then sent their money to New York to take advantage of the higher rates. From the January 1906 Dow Jones Industrial Average high of 103, the April 1906 earthquake that devastated San Francisco contributed to the market instability, prompting an even greater flood of money from New York to San Francisco to aid reconstruction. From their peak in January, stock prices declined 18% by July 1906, by late September, stocks had recovered about half of their losses. The Hepburn Act, which gave the Interstate Commerce Commission the power to set railroad rates. This depreciated the value of railroad securities, between September 1906 and March 1907, the stock market slid, losing 7. 7% of its capitalization. Between March 9 and 26, stocks fell a further 9. 8%, the economy remained volatile through the summer. In the first nine months of 1907, stocks were lower by 24. 4%, on July 27, The Commercial & Financial Chronicle noted that the market keeps unstable. No sooner are these signs of new life in evidence than something like a suggestion of a new outflow of gold to Paris sends a tremble all through the list, and the gain in values and hope is gone. Several bank runs occurred outside the US in 1907, in Egypt in April and May, in Japan in May and June, in Hamburg and Chile in early October. The fall season was always a time for the banking system—combined with the roiled stock market
10.
National Monetary Commission
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The National Monetary Commission was a study group created by the Aldrich-Vreeland Act of 1908. After the Panic of 1907, the Commission studied the laws of the United States. The chairman of the Commission, Senator Nelson Aldrich, a Republican leader in the Senate, the Commissions reports and recommendations became one of the principal bases in the enactment of the Federal Reserve Act of 1913 which created the modern Federal Reserve system. Following the panics of the late 1890s and early 1900s, the American people were aroused to the need for basic reforms, a common way to mitigate these bank runs was to suspend cash payments during crises, either by imposing a maximum daily withdrawal or complete suspension. Suspending cash payments and issuing clearinghouse certificates were better than allowing a panic to continue, the plan proposed by the Monetary Commission provided for the establishment of local associations of banks and the grouping of these into regional associations. These were further grouped into a national association with a head office at Washington. Under certain conditions, all banks in the country were to be eligible for membership in this central institution, the commission believed that it had worked out a system of control which would prevent the domination of the association by any group of interests, political or financial. The Commission issued 30 reports that provided a detailed and authoritative survey of banking systems of the late 19th and early 20th centuries. The reports examine such topics as U. S. financial laws, U. S. state banking statutes, Canadian banking history, the volumes contain essays commissioned from leading specialists, plus innumerable tables, charts, graphs, and facsimiles of forms and documents. Some volumes contain transcripts of relevant speeches, interviews, and hearings, Mitchell provides a comprehensive review of the documents prepared by the commission. The plan submitted by the commission was intended to be nonpartisan, and it failed to get strong public support partly because of its apparent resemblance to a central bank and of popular suspicion of its main author, Senator Nelson Aldrich. Most suspicion came from the not being thoroughly informed as to what the proposed plan tried to accomplish. The appearance of the Monetary Commissions report stimulated widespread interest and discussion of banking reform, many of the best features of that plan, however, were incorporated in the banking bill, known as the Federal Reserve Act. The national monetary commission, a look back, Journal of Money, Credit and Banking 4#4 pp, 930-956. In JSTOR Law Librarians Society of Washington, D. C. Inc, the Federal Reserve Act of 1913 - A Legislative History,2009 Meltzer, Allan H. A History of the Federal Reserve, Volume 1, 1913-1951 Mitchell, Wesley C. The Publications of the National Monetary Commission, Quarterly Journal of Economics, Vol.25,3, pp.563 -593. in JSTOR Stephenson, Nathaniel W. Nelson W. Aldrich,1930, scholarly biography Wells, Donald R. The Federal Reserve System, A History Wicker, Elmus, the Great Debate on Banking Reform, Nelson Aldrich And Origins of the Fed
11.
Federal Reserve Act
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The Act was signed into law by President Woodrow Wilson. The Federal Reserve Act created a system of private and public entities, there were to be at least eight and no more than twelve private regional Federal Reserve banks. Twelve were established, and each had various branches, a board of directors, the Federal Reserve Board, consisting of seven members, was created as the governing body of the Fed. Each member is appointed by the President of the U. S, in 1935, the Board was renamed and restructured. Also created as part of the Federal Reserve System was a 12-member Federal Advisory Committee and a single new United States currency, the Federal Reserve Note. The Federal Reserve Act created a currency and a monetary system that could respond effectively to the stresses in the banking system. With the passing of the Federal Reserve Act, Congress required that all nationally chartered banks become members of the Federal Reserve System, since 1980, all depository institutions have been required to set aside reserves with the Federal Reserve. Such institutions are entitled to certain Federal Reserve services, central banking has made various institutional appearances throughout the history of the United States. These institutions started with the First and Second banks of the United States, the American financial system was deeply fragmented after the American Revolutionary War. The government was burdened with large debts, and the new republic needed a strong financial institution to give the country a resilient financial footing. Alexander Hamilton and Thomas Jefferson had opposing views regarding whether or not the US could benefit from a European-style national financial institution, Hamilton was in favor of building a strong centralized political and economic institution to solve the country’s financial problem. He argued that a bank could bring order to the US monetary system, manage the government’s revenues and payments. On the other hand, Jefferson was deeply suspicious of a bank because, he argued. The First Bank of the United States was established in 1791 chartered for a period of twenty years, the US government was the largest shareholder of the bank. Despite its shareholder status, the government was not permitted to participate in management of the bank, the bank accepted deposits, issued bank notes, and provided short-term loans to the government. It also functioned as a clearinghouse for government debt, the bank could also regulate state-charted banks to prevent overproduction of banknotes. The bank was successful in financing the government and stimulating the economy. In spite of its successes, hostility against the bank did not fade, in 1811, the first bank of the United States failed to be renewed by one vote in both the House and the Senate
12.
Government bond
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A government bond is a bond issued by a national government, generally with a promise to pay periodic interest payments and to repay the face value on the maturity date. Government bonds are denominated in the countrys own currency. Government bonds are referred to as sovereign bonds. If a government or sovereign is close to default on its debt the media often refer to this as a debt crisis. The terms on which a government can sell bonds depend on how creditworthy the market considers it to be, international credit rating agencies will provide ratings for the bonds, but market participants will make up their own minds about this. The first general government bonds were issued in the Netherlands in 1517, because the Netherlands did not exist at that time, the bonds issued by the city of Amsterdam are considered their predecessor which later merged into Netherlands government bonds. The average interest rate at that time fluctuated around 20%, the first ever bond issued by a national government was issued by the Bank of England in 1694 to raise money to fund a war against France. It was in the form of a tontine, later, governments in Europe started issuing perpetual bonds to fund wars and other government spending. The use of perpetual bonds ceased in the 20th century, a Government bond in a countrys own currency is strictly speaking a risk-free bond, because the government can if necessary create additional currency in order to redeem the bond at maturity. There have however been instances where a government has chosen to default on its domestic currency debt, currency risk is the risk that the value of the currency a bond pays out will decline compared to the holders reference currency. A bond paying in a currency that does not have a history of keeping its value may not be a deal even if a high interest rate is offered. Inflation risk is the risk that the value of the currency a bond pays out will decline over time, investors expect some amount of inflation, so the risk is that the inflation rate will be higher than expected. Many governments issue inflation-indexed bonds, which protect investors against inflation risk by linking both interest payments and maturity payments to a consumer prices index. If a central bank purchases a government security, such as a bond or treasury bill, it increases the money supply, in the UK, government bonds are called gilts. Older issues have names such as Treasury Stock and newer issues are called Treasury Gilt, inflation-indexed gilts are called Index-linked gilts
13.
Security (finance)
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A security is a tradable financial asset. The term commonly refers to any form of instrument. In some jurisdictions the term specifically excludes financial instruments other than equities, in some jurisdictions it includes some instruments that are close to equities and fixed income, e. g. equity warrants. In the United States, a security is a financial asset of any kind. Securities are broadly categorized into, debt securities equity securities derivatives, the company or other entity issuing the security is called the issuer. A countrys regulatory structure determines what qualifies as a security, for example, private investment pools may have some features of securities, but they may not be registered or regulated as such if they meet various restrictions. Securities may be represented by a certificate or, more typically, non-certificated, region or country Market capitalization State Securities are the traditional way that commercial enterprises raise new capital. These may be an alternative to bank loans depending on their pricing. Another disadvantage of bank loans as a source of financing is that the bank may seek a measure of protection against default by the borrower via extensive financial covenants, through securities, capital is provided by investors who purchase the securities upon their initial issuance. In a similar way, a government may issue securities too when it needs to increase government debt, investors in securities may be retail, i. e. members of the public investing other than by way of business. The greatest part of investment, in terms of volume, is wholesale, i. e. by financial institutions acting on their own account, important institutional investors include investment banks, insurance companies, pension funds and other managed funds. The traditional economic function of the purchase of securities is investment, debt securities generally offer a higher rate of interest than bank deposits, and equities may offer the prospect of capital growth. Equity investment may also control of the business of the issuer. Debt holdings may also offer some measure of control to the if the company is a fledgling start-up or an old giant undergoing restructuring. In these cases, if interest payments are missed, the creditors may take control of the company, the last decade has seen an enormous growth in the use of securities as collateral. Purchasing securities with borrowed money secured by other securities or cash itself is called buying on margin, where A is owed a debt or other obligation by B, A may require B to deliver property rights in securities to A, either at inception or only in default. Collateral arrangements are divided into two categories, namely security interests and outright collateral transfers. Commonly, commercial banks, investment banks, government agencies and other investors such as mutual funds are significant collateral takers as well as providers
14.
Office of the Comptroller of the Currency
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The Comptroller of the Currency is Thomas J. Curry. Headquartered in Washington, D. C. it has four offices located in New York City, Chicago, Dallas. It has an additional 48 field offices throughout the United States, the OCC participates in interagency activities in order to maintain the integrity of the national banking system. Other regulatory agencies like the OCC include, the Federal Deposit Insurance Corporation, the Federal Reserve, the Comptroller also serves as a director of the Neighborhood Reinvestment Corporation, and the Federal Deposit Insurance Corporation. In 2003, the OCC proposed regulations to preempt virtually all state banking and financial services laws for national banks and their range of non-bank. Despite opposition from the National Conference of State Legislatures, the OCCs regulations went into effect, in Watters v. Wachovia Bank, N. A.550 U. S. In Cuomo v. Clearing House Association, L. L. C.557 U. S, in October 2014, the OCC released a bulletin, Risk Management Guidance mandating that banks assess and manage the risk of all their third-party relationships. The bulletin states that a banks use of third parties does not diminish its responsibility to ensure that all activities are in compliance with applicable laws, previously, banks may have only monitored third party relationships which posed the greatest risk to them. Under the new guidelines banks must monitor all third-party relationships by adopting risk management processes commensurate with the level of risk, the document stresses the importance of an effective risk-management process throughout the entire life-cycle of the relationship. Banks often engage tens-of-thousands of third parties and are unable to manage the associated risk of all their relationships through traditional means. As a result, many banks have adopted external IT solutions to assist their needs and this has rapidly expanded the market for third-party management software solutions. In July 2007, the OCC launched HelpWithMyBank. gov to assist customers of national banks, title 12 of the Code of Federal Regulations Bank regulation in the United States Official website OCC in the Federal Register
15.
United Kingdom
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country in western Europe. Lying off the north-western coast of the European mainland, the United Kingdom includes the island of Great Britain, Northern Ireland is the only part of the United Kingdom that shares a land border with another sovereign state—the Republic of Ireland. The Irish Sea lies between Great Britain and Ireland, with an area of 242,500 square kilometres, the United Kingdom is the 78th-largest sovereign state in the world and the 11th-largest in Europe. It is also the 21st-most populous country, with an estimated 65.1 million inhabitants, together, this makes it the fourth-most densely populated country in the European Union. The United Kingdom is a monarchy with a parliamentary system of governance. The monarch is Queen Elizabeth II, who has reigned since 6 February 1952, other major urban areas in the United Kingdom include the regions of Birmingham, Leeds, Glasgow, Liverpool and Manchester. The United Kingdom consists of four countries—England, Scotland, Wales, the last three have devolved administrations, each with varying powers, based in their capitals, Edinburgh, Cardiff and Belfast, respectively. The relationships among the countries of the UK have changed over time, Wales was annexed by the Kingdom of England under the Laws in Wales Acts 1535 and 1542. A treaty between England and Scotland resulted in 1707 in a unified Kingdom of Great Britain, which merged in 1801 with the Kingdom of Ireland to form the United Kingdom of Great Britain and Ireland. Five-sixths of Ireland seceded from the UK in 1922, leaving the present formulation of the United Kingdom of Great Britain, there are fourteen British Overseas Territories. These are the remnants of the British Empire which, at its height in the 1920s, British influence can be observed in the language, culture and legal systems of many of its former colonies. The United Kingdom is a country and has the worlds fifth-largest economy by nominal GDP. The UK is considered to have an economy and is categorised as very high in the Human Development Index. It was the worlds first industrialised country and the worlds foremost power during the 19th, the UK remains a great power with considerable economic, cultural, military, scientific and political influence internationally. It is a nuclear weapons state and its military expenditure ranks fourth or fifth in the world. The UK has been a permanent member of the United Nations Security Council since its first session in 1946 and it has been a leading member state of the EU and its predecessor, the European Economic Community, since 1973. However, on 23 June 2016, a referendum on the UKs membership of the EU resulted in a decision to leave. The Acts of Union 1800 united the Kingdom of Great Britain, Scotland, Wales and Northern Ireland have devolved self-government
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Gold
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Gold is a chemical element with symbol Au and atomic number 79. In its purest form, it is a bright, slightly yellow, dense, soft, malleable. Chemically, gold is a metal and a group 11 element. It is one of the least reactive chemical elements and is solid under standard conditions, Gold often occurs in free elemental form, as nuggets or grains, in rocks, in veins, and in alluvial deposits. It occurs in a solid solution series with the element silver and also naturally alloyed with copper. Less commonly, it occurs in minerals as gold compounds, often with tellurium, golds atomic number of 79 makes it one of the higher numbered, naturally occurring elements. It is thought to have produced in supernova nucleosynthesis, from the collision of neutron stars. Because the Earth was molten when it was formed, almost all of the present in the early Earth probably sank into the planetary core. Gold is resistant to most acids, though it does dissolve in aqua regia, a mixture of acid and hydrochloric acid. Gold also dissolves in solutions of cyanide, which are used in mining and electroplating. Gold dissolves in mercury, forming amalgam alloys, but this is not a chemical reaction, as a precious metal, gold has been used for coinage, jewelry, and other arts throughout recorded history. A total of 186,700 tonnes of gold is in existence above ground, the world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry. Gold is also used in infrared shielding, colored-glass production, gold leafing, certain gold salts are still used as anti-inflammatories in medicine. As of 2014, the worlds largest gold producer by far was China with 450 tonnes, Gold is cognate with similar words in many Germanic languages, deriving via Proto-Germanic *gulþą from Proto-Indo-European *ǵʰelh₃-. The symbol Au is from the Latin, aurum, the Latin word for gold, the Proto-Indo-European ancestor of aurum was *h₂é-h₂us-o-, meaning glow. This word is derived from the root as *h₂éu̯sōs, the ancestor of the Latin word Aurora. This etymological relationship is presumably behind the frequent claim in scientific publications that aurum meant shining dawn, Gold is the most malleable of all metals, a single gram can be beaten into a sheet of 1 square meter, and an avoirdupois ounce into 300 square feet. Gold leaf can be thin enough to become semi-transparent
17.
Commodity
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In economics, a commodity is a marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services, the word commodity came into use in English in the 15th century, from the French commodité, amenity, convenience. Going further back, the French word derives from the Latin commoditas, meaning suitability, convenience, the Latin word commodus meant variously appropriate, proper measure, time, or condition, and advantage, benefit. The term commodity is specifically used for a good or service when the demand for it has no qualitative differentiation across a market. In other words, a commodity good or service has full or partial but substantial fungibility, that is, the market treats its instances as equivalent or nearly so with no regard to who produced them. As the saying goes, From the taste of wheat, it is not possible to tell who produced it, a Russian serf, petroleum and copper are other examples of such commodities, their supply and demand being a part of one universal market. Items such as systems, on the other hand, have many aspects of product differentiation, such as the brand, the user interface. The demand for one type of stereo may be larger than demand for another. In contrast, one of the characteristics of a commodity good is that its price is determined as a function of its market as a whole, well-established physical commodities have actively traded spot and derivative markets. Generally, these are basic resources and agricultural products such as ore, sugar. Soft commodities are goods that are grown, while hard commodities are ones that are extracted through mining, there is another important class of energy commodities which includes electricity, gas, coal and oil. Electricity has the characteristic that it is usually uneconomical to store, hence. Commoditization occurs as a goods or services market loses differentiation across its supply base, as such, goods that formerly carried premium margins for market participants have become commodities, such as generic pharmaceuticals and DRAM chips. Following this trend, nanomaterials are emerging from carrying premium profit margins for market participants to a status of commodification, there is a spectrum of commoditization, rather than a binary distinction of commodity versus differentiable product. Many products degree of commoditization depends on the mentality and means. For example, milk, eggs, and notebook paper are not differentiated by many customers, for them, other customers take into consideration other factors besides price, such as environmental sustainability and animal welfare. This is a list of companies trading globally in commodities, descending by size as of October 28,2011, on a commodity exchange, it is the underlying standard stated in the contract that defines the commodity, not any quality inherent in a specific producers product. Commodities exchanges include, Bourse Africa Bursa Malaysia Derivatives Chicago Board of Trade Chicago Mercantile Exchange Dalian Commodity Exchange Euronext and these markets will quickly respond to changes in supply and demand to find an equilibrium price and quantity
18.
Nelson W. Aldrich
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Nelson Wilmarth Aldrich was a prominent American politician and a leader of the Republican Party in the Senate, where he served from 1881 to 1911. By the 1890s he was one of the Big Four key Republicans who largely controlled the decisions of the Senate, along with Orville H. Platt, William B. Allison. In a career spanned three decades, Aldrich helped to create an extensive system of tariffs that protected American factories. He was a party to the re-structuring of the American financial system through the institution of the income tax amendment. His most important contribution was the design of the modern Federal Reserve System, deeply committed to the efficiency model of the Progressive Era, he believed these reforms would lead to greater efficiency. Reformers, however, denounced him as representative of the evils of Big business, Aldrich became wealthy with investments in street railroads, sugar, rubber and banking. He married into the Rockefeller family, and his descendents became powerful figures in American politics, Aldrich was born in Foster, Rhode Island, into a middle-class family descended from noted English immigrants John Winthrop, William Wickenden, and Roger Williams. His branch passed through generations of declining circumstances and his father was Anan E. Aldrich, a mill hand, and mother Abby Burgess. He attended public schools in East Killingly, Conn. and the East Greenwich Academy a boarding school in Rhode Island, Aldrichs first job was clerking for the largest wholesale grocer in the state, where he worked his way up to become a partner in the firm. He served briefly in the Union Army during the American Civil War when he enlisted as a private in Company D of the 10th Rhode Island Infantry on May 26,1862. Aldrichs company served for three months at Fort DeRussy, which was part of the defenses of Washington, D. C, Aldrich was mustered out of service with the regiment on September 1,1862. On October 9,1866, he married Abigail Pearce Truman Abby Chapman and they had a total of eleven children. By 1877, Nelson had an effect on state politics. He served as a member of the Providence City Council from 1869 to 1874 and he served in the Rhode Island House of Representatives in 1875 and 1876 and served as Speaker of the House in 1876. In 1878 the Republican bosses of Rhode Island endorsed him for the US House of Representatives, he won, in 1881 he was elected to the U. S. Senate by the Rhode Island legislature. He served in the Senate for 30 years from 1881 to 1911 and he was the longest serving United States Senator from Rhode Island before the 36-year tenure of Claiborne Pell in the late 20th Century. Aldrichs main power base was his chairmanship of the Senate Finance Committee which oversaw bank regulation, the panic of 1907 led to the passage of the Aldrich–Vreeland Act in 1908, which established the National Monetary Commission, sponsored and headed by Aldrich. After issuing a series of 30 reports, this commission drew up the Aldrich Plan, in 1909, Aldrich introduced a constitutional amendment to establish an income tax, although he had declared a similar measure communistic a decade earlier
19.
Edward Vreeland
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Edward Butterfield Vreeland was a United States Representative from New York. Born in Cuba, Allegany County, New York, he graduated from Friendship Academy in 1877, in 1869 he moved to Salamanca and was superintendent of the public schools there from 1877 to 1882. He studied law and was admitted to the bar in 1881 and he engaged in banking and in the oil and insurance business and became president of the Salamanca Trust Co. in 1891, from 1889 to 1893 he served as postmaster of Salamanca. Vreeland was elected as a Republican to the Fifty-sixth Congress to fill the vacancy caused by the resignation of Warren B. Hooker and he was reelected to the Fifty-seventh and to the five succeeding Congresses and held office from November 7,1899 to March 3,1913. While in the House, he was chairman of the Committee on Banking and he declined to be a candidate for renomination in 1912, and was appointed a member of the National Monetary Commission, serving as vice chairman from 1909 to 1912. He resumed former business pursuits in Salamanca until January 1,1936 and he died in Salamanca, interment was in Wildwood Cemetery. Biographical Directory of the United States Congress
20.
World War I
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World War I, also known as the First World War, the Great War, or the War to End All Wars, was a global war originating in Europe that lasted from 28 July 1914 to 11 November 1918. More than 70 million military personnel, including 60 million Europeans, were mobilised in one of the largest wars in history and it was one of the deadliest conflicts in history, and paved the way for major political changes, including revolutions in many of the nations involved. The war drew in all the worlds great powers, assembled in two opposing alliances, the Allies versus the Central Powers of Germany and Austria-Hungary. These alliances were reorganised and expanded as more nations entered the war, Italy, Japan, the trigger for the war was the assassination of Archduke Franz Ferdinand of Austria, heir to the throne of Austria-Hungary, by Yugoslav nationalist Gavrilo Princip in Sarajevo on 28 June 1914. This set off a crisis when Austria-Hungary delivered an ultimatum to the Kingdom of Serbia. Within weeks, the powers were at war and the conflict soon spread around the world. On 25 July Russia began mobilisation and on 28 July, the Austro-Hungarians declared war on Serbia, Germany presented an ultimatum to Russia to demobilise, and when this was refused, declared war on Russia on 1 August. Germany then invaded neutral Belgium and Luxembourg before moving towards France, after the German march on Paris was halted, what became known as the Western Front settled into a battle of attrition, with a trench line that changed little until 1917. On the Eastern Front, the Russian army was successful against the Austro-Hungarians, in November 1914, the Ottoman Empire joined the Central Powers, opening fronts in the Caucasus, Mesopotamia and the Sinai. In 1915, Italy joined the Allies and Bulgaria joined the Central Powers, Romania joined the Allies in 1916, after a stunning German offensive along the Western Front in the spring of 1918, the Allies rallied and drove back the Germans in a series of successful offensives. By the end of the war or soon after, the German Empire, Russian Empire, Austro-Hungarian Empire, national borders were redrawn, with several independent nations restored or created, and Germanys colonies were parceled out among the victors. During the Paris Peace Conference of 1919, the Big Four imposed their terms in a series of treaties, the League of Nations was formed with the aim of preventing any repetition of such a conflict. This effort failed, and economic depression, renewed nationalism, weakened successor states, and feelings of humiliation eventually contributed to World War II. From the time of its start until the approach of World War II, at the time, it was also sometimes called the war to end war or the war to end all wars due to its then-unparalleled scale and devastation. In Canada, Macleans magazine in October 1914 wrote, Some wars name themselves, during the interwar period, the war was most often called the World War and the Great War in English-speaking countries. Will become the first world war in the sense of the word. These began in 1815, with the Holy Alliance between Prussia, Russia, and Austria, when Germany was united in 1871, Prussia became part of the new German nation. Soon after, in October 1873, German Chancellor Otto von Bismarck negotiated the League of the Three Emperors between the monarchs of Austria-Hungary, Russia and Germany
21.
Financial panic
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A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of wealth but do not necessarily result in significant changes in the real economy. Many economists have offered theories about how financial crises develop and how they could be prevented, There is no consensus, however, and financial crises continue to occur from time to time. When a bank suffers a sudden rush of withdrawals by depositors, an event in which bank runs are widespread is called a systemic banking crisis or banking panic. Examples of bank runs include the run on the Bank of the United States in 1931, Banking crises generally occur after periods of risky lending and resulting loan defaults. There is no accepted definition of a currency crisis, which is normally considered as part of a financial crisis. Frankel and Rose define a crisis as a nominal depreciation of a currency of at least 25%. A speculative bubble exists in the event of large, sustained overpricing of some class of assets, however, it is difficult to predict whether an assets price actually equals its fundamental value, so it is hard to detect bubbles reliably. Some economists insist that bubbles never or almost never occur, the 2000s sparked a real estate bubble where housing prices were increasing significantly as an asset good. When a country fails to pay back its debt, this is called a sovereign default. Several currencies that formed part of the European Exchange Rate Mechanism suffered crises in 1992–93 and were forced to devalue or withdraw from the mechanism, another round of currency crises took place in Asia in 1997–98. Many Latin American countries defaulted on their debt in the early 1980s, the 1998 Russian financial crisis resulted in a devaluation of the ruble and default on Russian government bonds. Negative GDP growth lasting two or more quarters is called a recession, an especially prolonged or severe recession may be called a depression, while a long period of slow but not necessarily negative growth is sometimes called economic stagnation. Some economists argue that many recessions have been caused in part by financial crises. One important example is the Great Depression, which was preceded in many countries by bank runs and stock market crashes. The subprime mortgage crisis and the bursting of real estate bubbles around the world also led to recession in the U. S. It is often observed that successful investment requires each investor in a market to guess what other investors will do
22.
New York Stock Exchange
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The New York Stock Exchange, is an American stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York. It is by far the worlds largest stock exchange by market capitalization of its companies at US$19.3 trillion as of June 2016. The average daily trading value was approximately US$169 billion in 2013, the NYSE trading floor is located at 11 Wall Street and is composed of 21 rooms used for the facilitation of trading. A fifth trading room, located at 30 Broad Street, was closed in February 2007, the main building and the 11 Wall Street building were designated National Historic Landmarks in 1978. The NYSE is owned by Intercontinental Exchange, an American holding company that it also lists, previously, it was part of NYSE Euronext, which was formed by the NYSEs 2007 merger with Euronext. NYSE and Euronext now operate as divisions of Intercontinental Exchange, the NYSE has been the subject of several lawsuits regarding fraud or breach of duty and in 2004 was sued by its former CEO for breach of contract and defamation. The earliest recorded organization of securities trading in New York among brokers directly dealing with each other can be traced to the Buttonwood Agreement, previously securities exchange had been intermediated by the auctioneers who also conducted more mundane auctions of commodities such as wheat and tobacco. In 1817 the stockbrokers of New York operating under the Buttonwood Agreement instituted new reforms, after sending a delegation to Philadelphia to observe the organization of their board of brokers, restrictions on manipulative trading were adopted as well as formal organs of governance. Several locations were used between 1817 and 1865, when the present location was adopted, the invention of the electrical telegraph consolidated markets, and New Yorks market rose to dominance over Philadelphia after weathering some market panics better than other alternatives. The Civil War greatly stimulated speculative securities trading in New York, by 1869 membership had to be capped, and has been sporadically increased since. The latter half of the century saw rapid growth in securities trading. Securities trade in the nineteenth and early twentieth centuries was prone to panics. The Stock Exchange Luncheon Club was situated on the floor from 1898 until its closure in 2006. The main building, located at 18 Broad Street, between the corners of Wall Street and Exchange Place, was designated a National Historic Landmark in 1978, as was the 11 Wall Street building. The NYSE announced its plans to merge with Archipelago on April 21,2005, NYSEs governing board voted to merge with rival Archipelago on December 6,2005, and became a for-profit, public company. It began trading under the name NYSE Group on March 8,2006, Wall Street is the leading US money center for international financial activities and the foremost US location for the conduct of wholesale financial services. It comprises a matrix of wholesale financial sectors, financial markets, financial institutions, the principal sectors are securities industry, commercial banking, asset management, and insurance. Prior to the acquisition of NYSE Euronext by the ICE in 2013, Marsh Carter was the Chairman of the NYSE, presently, the chairman is Jeffrey Sprecher
23.
Secretary of the Treasury
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This position in the Federal Government of the United States is analogous to the Minister of Finance in many other countries. The Secretary of the Treasury is a member of the Presidents Cabinet, nominees for The Secretary of the Treasury undergo a confirmation hearing before the United States Senate Committee on Finance before being confirmed by the United States Senate. The Secretary of the Treasury is a member of the U. S. National Security Council. The Secretary along with the Treasurer must sign Federal Reserve notes before they can become legal tender, the Secretary also manages the United States Emergency Economic Stabilization fund. Most of the Departments law enforcement agencies such as the U. S. Customs Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, secret Service were reassigned to other Departments in 2003 in conjunction with the creation of the Department of Homeland Security. The Secretary of the Treasury salary is $205,700 annually,2 Deputy Secretary of the Treasury M. Peter McPherson served as Acting Secretary of the Treasury from August 17,1988, to September 15,1988. 4 Deputy Secretary of the Treasury Kenneth W. Dam served as Acting Secretary of the Treasury from December 31,2002,5 Deputy Secretary of the Treasury Robert M. Kimmitt served as Acting Secretary of the Treasury from June 30,2006, to July 9,2006. 7 Deputy Secretary of the Treasury Neal Wolin served as Acting Secretary of the Treasury from January 25,2013, as of April 2017, there are eleven living former Secretaries of the Treasury, the oldest being George P. Shultz. The most recent Secretary of the Treasury to die was Lloyd M. Bentsen, United States Department of the Treasury
24.
William Gibbs McAdoo
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William Gibbs McAdoo, Jr. /ˈmækəˌduː/ was an American lawyer and statesman. A political progressive, McAdoo was a leader of the Progressive movement who played a role in the administration of President Woodrow Wilson. He was Wilsons campaign manager in 1912, he married Wilsons daughter and he was primarily responsible for financing the American side of World War I, providing large loans to the Allies, and running the railroad system inside the United States. He was a contender for his partys presidential nomination in 1920 and 1924. McAdoo was born during the middle of the Civil War in Marietta, Georgia and his uncle, John David McAdoo, was a Confederate general and a justice on the Texas Supreme Court. McAdoo attended rural schools until his family moved to Knoxville, Tennessee, in 1877 and he graduated from the University of Tennessee and was a member of the Lambda Chapter of Kappa Sigma Fraternity. He was appointed deputy clerk of the United States District Court for the Eastern District of Tennessee in 1882 and he married his first wife, Sarah Hazelhurst Fleming, on November 18,1885. They had seven children, Harriet Floyd McAdoo, Francis Huger McAdoo, Julia Hazelhurst McAdoo, Nona Hazelhurst McAdoo, William Gibbs MacAdoo III, Robert Hazelhurst McAdoo and he was admitted to the bar in Tennessee in 1885 and set up a practice in Chattanooga, Tennessee. In the early 1890s, he lost most of his trying to electrify the Knoxville Street Railroad system. In 1892 he moved to New York City, where he met Francis R. Pemberton, son of the Confederate General John C and they formed a firm, Pemberton and McAdoo, to sell investment securities. In 1895, McAdoo returned to Knoxville and regained control of part of his streetcar company. In subsequent months, he engaged in a struggle with Ohio businessman C. C. Howell over control of the streetcar system. Litigation in the aftermath of this incident favored Howell, and McAdoo abandoned his streetcar endeavors in 1897, around 1900, McAdoo took on the leadership of a project to build a railway tunnel under the Hudson River to connect Manhattan with New Jersey. A tunnel had been constructed during the 1880s by Dewitt Clinton Haskin. With McAdoo as president of the Hudson and Manhattan Railroad Company, the popular McAdoo told the press that his motto was Let the Public be Pleased. The tunnels are now operated as part of the Port Authority Trans-Hudson system and his first wife died in February 1912. That year, he served as chairman of the Democratic National Committee. Woodrow Wilson lured McAdoo away from business after their meeting in 1910, once he was President, Wilson appointed McAdoo secretary of the Treasury, a post McAdoo held from 1913 to 1918
25.
New York City
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The City of New York, often called New York City or simply New York, is the most populous city in the United States. With an estimated 2015 population of 8,550,405 distributed over an area of about 302.6 square miles. Located at the tip of the state of New York. Home to the headquarters of the United Nations, New York is an important center for international diplomacy and has described as the cultural and financial capital of the world. Situated on one of the worlds largest natural harbors, New York City consists of five boroughs, the five boroughs – Brooklyn, Queens, Manhattan, The Bronx, and Staten Island – were consolidated into a single city in 1898. In 2013, the MSA produced a gross metropolitan product of nearly US$1.39 trillion, in 2012, the CSA generated a GMP of over US$1.55 trillion. NYCs MSA and CSA GDP are higher than all but 11 and 12 countries, New York City traces its origin to its 1624 founding in Lower Manhattan as a trading post by colonists of the Dutch Republic and was named New Amsterdam in 1626. The city and its surroundings came under English control in 1664 and were renamed New York after King Charles II of England granted the lands to his brother, New York served as the capital of the United States from 1785 until 1790. It has been the countrys largest city since 1790, the Statue of Liberty greeted millions of immigrants as they came to the Americas by ship in the late 19th and early 20th centuries and is a symbol of the United States and its democracy. In the 21st century, New York has emerged as a node of creativity and entrepreneurship, social tolerance. Several sources have ranked New York the most photographed city in the world, the names of many of the citys bridges, tapered skyscrapers, and parks are known around the world. Manhattans real estate market is among the most expensive in the world, Manhattans Chinatown incorporates the highest concentration of Chinese people in the Western Hemisphere, with multiple signature Chinatowns developing across the city. Providing continuous 24/7 service, the New York City Subway is one of the most extensive metro systems worldwide, with 472 stations in operation. Over 120 colleges and universities are located in New York City, including Columbia University, New York University, and Rockefeller University, during the Wisconsinan glaciation, the New York City region was situated at the edge of a large ice sheet over 1,000 feet in depth. The ice sheet scraped away large amounts of soil, leaving the bedrock that serves as the foundation for much of New York City today. Later on, movement of the ice sheet would contribute to the separation of what are now Long Island and Staten Island. The first documented visit by a European was in 1524 by Giovanni da Verrazzano, a Florentine explorer in the service of the French crown and he claimed the area for France and named it Nouvelle Angoulême. Heavy ice kept him from further exploration, and he returned to Spain in August and he proceeded to sail up what the Dutch would name the North River, named first by Hudson as the Mauritius after Maurice, Prince of Orange
26.
Banknote
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A banknote is a type of negotiable instrument known as a promissory note, made by a bank, payable to the bearer on demand. Banknotes were originally issued by banks, who were legally required to redeem the notes for legal tender when presented to the chief cashier of the originating bank. These commercial banknotes only traded at face value in the served by the issuing bank. Commercial banknotes have primarily been replaced by national banknotes issued by central banks, national banknotes are generally legal tender, meaning that medium of payment is allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Historically, banks sought to ensure that they could always pay customers in coins when they presented banknotes for payment and this practice of backing notes with something of substance is the basis for the history of central banks backing their currencies in gold or silver. Today, most national currencies have no backing in precious metals or commodities and have value only by fiat, with the exception of non-circulating high-value or precious metal issues, coins are used for lower valued monetary units, while banknotes are used for higher values. The idea of using a durable light-weight substance as evidence of a promise to pay a bearer on demand originated in China during the Han Dynasty in 118 BC, the first known banknote was first developed in China during the Tang and Song dynasties, starting in the 7th century. Its roots were in merchant receipts of deposit during the Tang Dynasty, as merchants, during the Yuan Dynasty, banknotes were adopted by the Mongol Empire. In Europe, the concept of banknotes was first introduced during the 13th century by such as Marco Polo. Counterfeiting, the forgery of banknotes, is an inherent challenge in issuing currency and it is countered by anticounterfeiting measures in the printing of banknotes. Fighting the counterfeiting of banknotes and cheques has been a driver of security printing methods development in recent centuries. Paper currency first developed in the Tang Dynasty China during the 7th century, although true paper money did not appear until the 11th century, the usage of paper currency later spread throughout the Mongol Empire. European explorers like Marco Polo introduced the concept in Europe during the 13th century, napoleon issued paper banknotes in the early 1800s. Paper money originated in two forms, drafts, which are receipts for value held on account, and bills, the perception of banknotes as money has evolved over time. Originally, money was based on precious metals, Banknotes were seen as essentially an I. O. U. or promissory note, a promise to pay someone in precious metal on presentation. With the gradual removal of precious metals from the system, banknotes evolved to represent credit money. Notes or bills were referred to in 18th century novels and were often a key part of the plot such as a note drawn by Lord X for £100 which becomes due in 3 months time. Its roots were in merchant receipts of deposit during the Tang Dynasty, as merchants, before the use of paper, the Chinese used coins that were circular, with a rectangular hole in the middle
27.
The New York Times
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The New York Times is an American daily newspaper, founded and continuously published in New York City since September 18,1851, by The New York Times Company. The New York Times has won 119 Pulitzer Prizes, more than any other newspaper, the papers print version in 2013 had the second-largest circulation, behind The Wall Street Journal, and the largest circulation among the metropolitan newspapers in the US. The New York Times is ranked 18th in the world by circulation, following industry trends, its weekday circulation had fallen in 2009 to fewer than one million. Nicknamed The Gray Lady, The New York Times has long been regarded within the industry as a newspaper of record. The New York Times international version, formerly the International Herald Tribune, is now called the New York Times International Edition, the papers motto, All the News Thats Fit to Print, appears in the upper left-hand corner of the front page. On Sunday, The New York Times is supplemented by the Sunday Review, The New York Times Book Review, The New York Times Magazine and T, some other early investors of the company were Edwin B. Morgan and Edward B. We do not believe that everything in Society is either right or exactly wrong, —what is good we desire to preserve and improve, —what is evil, to exterminate. In 1852, the started a western division, The Times of California that arrived whenever a mail boat got to California. However, when local California newspapers came into prominence, the effort failed, the newspaper shortened its name to The New-York Times in 1857. It dropped the hyphen in the city name in the 1890s, One of the earliest public controversies it was involved with was the Mortara Affair, the subject of twenty editorials it published alone. At Newspaper Row, across from City Hall, Henry Raymond, owner and editor of The New York Times, averted the rioters with Gatling guns, in 1869, Raymond died, and George Jones took over as publisher. Tweed offered The New York Times five million dollars to not publish the story, in the 1880s, The New York Times transitioned gradually from editorially supporting Republican Party candidates to becoming more politically independent and analytical. In 1884, the paper supported Democrat Grover Cleveland in his first presidential campaign, while this move cost The New York Times readership among its more progressive and Republican readers, the paper eventually regained most of its lost ground within a few years. However, the newspaper was financially crippled by the Panic of 1893, the paper slowly acquired a reputation for even-handedness and accurate modern reporting, especially by the 1890s under the guidance of Ochs. Under Ochs guidance, continuing and expanding upon the Henry Raymond tradition, The New York Times achieved international scope, circulation, in 1910, the first air delivery of The New York Times to Philadelphia began. The New York Times first trans-Atlantic delivery by air to London occurred in 1919 by dirigible, airplane Edition was sent by plane to Chicago so it could be in the hands of Republican convention delegates by evening. In the 1940s, the extended its breadth and reach. The crossword began appearing regularly in 1942, and the section in 1946
28.
Federal Reserve System
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The Federal Reserve System is the central banking system of the United States. Over the years, events such as the Great Depression in the 1930s, the U. S. Congress established three key objectives for monetary policy in the Federal Reserve Act, maximizing employment, stabilizing prices, and moderating long-term interest rates. The first two objectives are sometimes referred to as the Federal Reserves dual mandate. S, the Fed conducts research into the economy and releases numerous publications, such as the Beige Book. S. member banks, and various advisory councils. The federal government sets the salaries of the seven governors. Nationally chartered commercial banks are required to hold stock in the Federal Reserve Bank of their region, thus, the Federal Reserve System has both private and public components to serve the interests of the public and private banks. The structure is considered unique among central banks and it is also unusual in that the United States Department of the Treasury, an entity outside of the central bank, prints the currency used. The U. S. Government receives all the annual profits, after a statutory dividend of 6% on member banks capital investment is paid. In 2015, the Federal Reserve made a profit of $100.2 billion, the primary motivation for creating the Federal Reserve System was to address banking panics. Before the founding of the Federal Reserve System, the United States underwent several financial crises, a particularly severe crisis in 1907 led Congress to enact the Federal Reserve Act in 1913. Today the Federal Reserve System has responsibilities in addition to ensuring the stability of the financial system. S. S and this practice is called fractional-reserve banking. As a result, banks usually invest the majority of the funds received from depositors, on rare occasions, too many of the banks customers will withdraw their savings and the bank will need help from another institution to continue operating, this is called a bank run. Bank runs can lead to a multitude of social and economic problems, the Federal Reserve System was designed as an attempt to prevent or minimize the occurrence of bank runs, and possibly act as a lender of last resort when a bank run does occur. Many economists, following Milton Friedman, believe that the Federal Reserve inappropriately refused to lend money to banks during the bank runs of 1929. Because some banks refused to clear checks from certain others during times of economic uncertainty, to address these problems, Congress gave the Federal Reserve System the authority to establish a nationwide check-clearing system. It took over this role from the private sector clearing houses which operated during the Free Banking Era, whether public or private, through its discount window and credit operations, Reserve Banks provide liquidity to banks to meet short-term needs stemming from seasonal fluctuations in deposits or unexpected withdrawals. Longer term liquidity may also be provided in exceptional circumstances, the rate the Fed charges banks for these loans is called the discount rate. By making these loans, the Fed serves as a buffer against unexpected day-to-day fluctuations in reserve demand and this contributes to the effective functioning of the banking system, alleviates pressure in the reserves market and reduces the extent of unexpected movements in the interest rates. For example, on September 16,2008, the Federal Reserve Board authorized an $85 billion loan to stave off the bankruptcy of international insurance giant American International Group
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Federal Open Market Committee
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The Federal Open Market Committee, a committee within the Federal Reserve System, is charged under the United States law with overseeing the nations open market operations. This Federal Reserve committee makes key decisions about interest rates and the growth of the United States money supply, the FOMC is the principal organ of United States national monetary policy. The Committee sets monetary policy by specifying the objective for the Feds open market operations. The Federal Open Market Committee was formed by the Banking Act of 1933, four of the Federal Reserve Bank presidents serve one-year terms on a rotating basis. The New York President always has a voting membership, the Committee meets eight times a year, approximately once every six weeks. By law, the FOMC must meet at least four times each year in Washington, since 1981, eight regularly scheduled meetings have been held each year at intervals of five to eight weeks. At each regularly scheduled meeting, the Committee votes on the policy to be carried out during the interval between meetings. Reports prepared by the Manager of the System Open Market Account on operations in the open market. At the meeting itself, staff officers present oral reports on the current and prospective business situation, on conditions in financial markets, the Manager of the System Open Market Account also reports on account transactions since the previous meeting. After these reports, the Committee members and other Reserve Bank presidents turn to policy, typically, each participant expresses his own views on the state of the economy and prospects for the future and on the appropriate direction for monetary policy. Then each makes a more explicit recommendation on policy for the coming intermeeting period, the directive is cast in terms designed to provide guidance to the Manager in the conduct of day-to-day open market operations. The directive sets forth the Committees objectives for long-run growth of certain key monetary and it also sets forth operating guidelines for the degree of ease or restraint to be sought in reserve conditions and expectations with regard to short-term rates of growth in the monetary aggregates. Policy is implemented with emphasis on supplying reserves in a consistent with these objectives. The committees practice of interest rate targeting has been criticized by commentators who argue that it may risk an inflationary bias. Under inflationary pressure in 1979, the Fed temporarily abandoned interest rate targeting in favor of targeting non-borrowed reserves and it concluded, however, that this approach led to increased volatility in interest rates and monetary growth, and reversed itself in 1982. Former Fed Chairman Ben Bernanke spoke sympathetically as a Governor in 2003 of the inflation targeting approach, together, these two elements promote both price stability and well-anchored inflation expectations, the latter in turn facilitates more effective stabilization of output and employment. Thus, a well-conceived and well-executed strategy of inflation targeting can deliver results with respect to output. Although communication plays several important roles in inflation targeting, perhaps the most important is focusing and anchoring expectations, clearly there are limits to what talk can achieve, ultimately, talk must be backed up by action, in the form of successful policies
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Chair of the Federal Reserve
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The Chair of the Board of Governors of the Federal Reserve System is the head of the central banking system of the United States. The position is colloquially as Chair of the Fed or Fed Chair. The chair is the executive officer of the Board of Governors of the Federal Reserve System. The chair is chosen by the President of the United States from among the members of the Board of Governors, a chair may be appointed for several consecutive terms. William Martin was the longest serving chair, holding the position from 1951 to 1970, the current chair is Janet Yellen, the first woman to hold the position. She began her term on February 1,2014, and previously served as the Vice-Chair from 2010 to 2014, the current term will end on or about February 1,2018. Section 203 of the Banking Act of 1935 changed the name of the Federal Reserve Board to the Board of Governors of the Federal Reserve System, the directors salaries were significantly lower and their terms of office were much shorter prior to 1935. In effect, the Federal Reserve Board members in Washington, D. C. were significantly less powerful than the presidents of the regional Federal Reserve Banks prior to 1935, in the 1935 Act, the district heads had their titles changed to President. Thus, Marriner Eccles was the first actual Chairman of the Board of Governors of the Federal Reserve Board, the others prior to 1935 were Chairman of the Board of Directors of the Federal Reserve System, with much more circumscribed power. The nominees for chair and vice-chair may be chosen by the President from among the sitting Governors for four-year terms, by law, the chair reports twice a year to Congress on the Federal Reserves monetary policy objectives. He or she also testifies before Congress on numerous other issues, the following is a list of past and present Chairs of the Board of Governors of the Federal Reserve System. A chair serves for a term after appointment, but may be reappointed for several consecutive four-year terms. As of 2014, there have been a total of fifteen Fed Chairs, history of central banking in the United States Beckhart, Benjamin Haggott. The fourth branch, the Federal Reserves unlikely rise to power, Executive Order 11110 - Amendment of Executive Order No.10289 as Amended, Relating to the Performance of Certain Functions Affecting the Department of the Treasury. Via UCSB. edu Official website Public Statements of the Chairs of the Board of Governors of the Federal Reserve System, via the St
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Federal Reserve Board of Governors
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The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement monetary policy of the United States, Governors are appointed by the President of the United States and confirmed by the Senate for staggered 14-year terms. By law, the appointments must yield a fair representation of the financial, agricultural, industrial, the Board of Governors does not receive funding from Congress, and the terms of the seven members of the Board span multiple presidential and congressional terms. Once a member of the Board of Governors is appointed by the president, the Board is required to make an annual report of operations to the Speaker of the U. S. House of Representatives. It also supervises and regulates the operations of the Federal Reserve Banks, membership is by statute limited in term, and a member that has served for a full 14 year term is not eligible for reappointment. There are numerous occasions where an individual was appointed to serve the remainder of another members uncompleted term, the law provides for the removal of a member of the Board by the President for cause. The Chair and Vice Chair of the Board of Governors are appointed by the President from among the sitting Governors and they both serve a four-year term and they can be renominated as many times as the President chooses, until their terms on the Board of Governors expire
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Federal Reserve Bank
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A Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States. There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve Act of 1913. C, alexander Hamilton, the first Secretary of Treasury, started a movement in 1780 advocating for the creation of a central bank. The Bank Bill created by Hamilton was a proposal to institute a national bank in order to improve the stability of the nation after its independence from Britain. Although the national bank was to be used as a tool for the government, in response to this, the First Bank of the United States was established in 1791, its charter signed by George Washington. The First Bank of the United States was headquartered in Philadelphia, the Bank performed the basic banking functions of accepting deposits, issuing bank notes, making loans and purchasing securities. When its charter expired 20 years later, the United States was without a bank for a few years. In 1816, James Madison signed the Second Bank of the United States into existence. Then, in 1833, before that banks charter expired, President Jackson removed the government funds as part of the Bank War, and the United States went without a central bank for 40 years. A financial crisis known as the Panic of 1907 was headed off by a private conglomerate and this effort succeeded in stopping the panic, and led to calls for a Federal agency to do the same thing. Congress approved the Act, and President Wilson signed it into law on December 23,1913, the legislation provided for a system that included a number of regional Federal Reserve Banks and a seven-member governing board. All national banks were required to join the system and other banks could join, on April 2,1914, the Reserve Bank Organization Committee announced its decision, and twelve Federal Reserve banks were established to cover various districts throughout the country. Those opposed to the establishment of an overwhelmingly powerful New York Fed prevailed in their desire that its scope, initially, this banks influence was restricted to New York State. Nonetheless, with over $20,000,000 in capital stock, as a result, it was impossible to prevent the New York Fed from being the largest and most dominant bank in the system. The Federal Reserve Banks opened for business in November 1914, the New York Fed opened for business under the leadership of Benjamin Strong, Jr. previously president of the Bankers Trust Company, on November 16,1914. The initial staff consisted of seven officers and 85 clerks, many on loan from local banks. Mr. Strong recalled the days at the Bank in a speech. During its first day of operation, the Bank took in $100 million from 211 member banks, Congress created Federal Reserve notes to provide the nation with a flexible supply of currency. The notes were to be issued to Federal Reserve Banks for subsequent transmittal to banking institutions in accordance with the needs of the public
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Federal Reserve Note
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Federal Reserve Notes, also United States banknotes or U. S. banknotes, are the banknotes currently used in the United States of America. Denominated in United States dollars, Federal Reserve Notes are printed by the United States Bureau of Engraving and Printing on paper made by Crane & Co. of Dalton, Federal Reserve Notes are the only type of U. S. banknote currently produced. The notes are then put into circulation by the Federal Reserve Banks, at which point they become liabilities of the Federal Reserve Banks, Federal Reserve Notes are legal tender, with the words this note is legal tender for all debts, public and private printed on each note. They have replaced United States Notes, which were issued by the Treasury Department. Federal Reserve Notes are backed by the assets of the Federal Reserve Banks and these assets are generally Treasury securities which have been purchased by the Federal Reserve through its Federal Open Market Committee in a process called debt monetizing. This monetized debt can increase the supply, either with the issuance of new Federal Reserve Notes or with the creation of debt money. This increase in the base leads to a larger increase in the money supply through fractional-reserve banking as deposits are lent. Prior to centralized banking, each bank issued its own notes. The first institution with responsibilities of a bank in the U. S. was the First Bank of the United States. Its charter was not renewed in 1811, in 1816, the Second Bank of the United States was chartered, its charter was not renewed in 1836, after President Andrew Jackson campaigned heavily for its disestablishment. From 1837 to 1862, in the Free Banking Era there was no central bank. From 1862 to 1913, a system of banks was instituted by the 1863 National Banking Act. The first printed notes were Series 1914, in 1928, cost-cutting measures were taken to reduce the note to the size it is today. The authority of the Federal Reserve Banks to issue notes comes from the Federal Reserve Act of 1913, legally, they are liabilities of the Federal Reserve Banks and obligations of the United States government. Although not issued by the Treasury Department, Federal Reserve Notes carry the signature of the Treasurer of the United States, at the time of the Federal Reserves creation, the law provided for notes to be redeemed to the Treasury in gold or lawful money. The Emergency Banking Act of 1933 removed the gold obligation and authorized the Treasury to satisfy these redemption demands with current notes of equal face value, under the Bretton Woods system, although citizens could not possess gold, the federal government continued to maintain a stable international gold price. This system ended with the Nixon Shock of 1971, present-day Federal Reserve Notes are not backed by convertibility to any specific commodity, but only by the collateral assets that Federal Reserve Banks post in order to obtain them. Series 1914 FRN were the first of two large-size issues, denominations were $5, $10, $20, $50, and $100 printed first with a red seal and then continued with a blue seal
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Federal Reserve Bank Note
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They had the same value as other kinds of notes of similar face value. Federal Reserve Bank Notes differ from Federal Reserve Notes in that they are backed by one of the twelve Federal Reserve Banks, rather than by all collectively. They were backed in a way to National Bank Notes, using U. S. bonds. Federal Reserve Bank Notes are no longer issued, the only U. S. banknotes still in production since 1971 are the Federal Reserve Notes, additional denominations of $1, $2, and $50 were issued in 1918. Small size Federal Reserve Bank Notes were printed as an issue in 1933 using the same paper stock as National Bank Notes. They were printed in denominations of $5 through $100, a National Bank Note has a line for the national banks presidents signature. The small size Federal Reserve Bank Note printed a bar over the label for this line since Federal Reserve Banks had governors, not presidents. The wording also was changed to add, Or by like deposit of other securities after the phrase, the twelve Federal Reserve Districts also appear on the bills as black alphabetically sequenced letters, from A to L, a system essentially followed today on the $1 and $2 bills. This emergency issue was prompted by the hoarding of cash because of the many bank failures happening at the time. This also limited the ability of the National Banks to issue notes of their own, small size Federal Reserve Bank Notes were discontinued in 1934 and no longer available from banks since 1945. As small size notes, they have brown seals and serial numbers, but while they look very similar, and both say National Currency across the top of the obverse, the issuers were not the same and they are considered to be distinctly different types of bills
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Monetary Policy Report to the Congress
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The Monetary Policy Report to the Congress is a semi-annual report prepared by the Board of Governors of the Federal Reserve and presented to the Congress of the United States. Monetary Policy Reports are mandated by the Humphrey-Hawkins Full Employment Act of 1978, the Monetary Policy Reports were previously referred to as Humphrey-Hawkins reports. The Monetary Policy Report is delivered twice a year, in February and July, the first section summarizes past policy decisions and their predicted economic impact. The second section focuses on recent financial and economic developments, past reports and testimony from the U. S. Federal Reserve Full-text of reports from 1979-current from the Federal Reserve Bank of St. Louis, House Hearings, and Senate Hearings
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Fedspeak
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The strategy, which was used most prominently by Alan Greenspan, was used to prevent financial markets from overreacting to the chairmans remarks. The coinage is a parallel to Newspeak of Nineteen Eighty-Four. Fedspeak when used by Alan Greenspan is often called Greenspeak, an alternative definition of Greenspeak is The coded and careful language employed by U. S. Federal Reserve Board Chairman Alan Greenspan. Edwin le Heron and Emmanuel Carre state that Nowadays, Fedspeak’ means clear, Chairman Ben Bernanke and Chairwoman Yellen have effected a major change in Fed communication policy departing from the obfuscation that characterized the previous three decades. In 2014 a new detailed level of Fed communication was dubbed Fedspeak 3.0, to prevent this, the governors developed a language, termed fedspeak, in which ambiguous and cautious statements were made to purposefully obscure and detract meaning from the statement. It is unclear whether the term Fedspeak was used prior to Greenspan but with historical hindsight the modern term could be used to describe Burns. Greenspan states that the confusion, which resulted in conflicting interpretations, was used to prevent unintended jolts to the markets as confusing statements were typically ignored. He noted that he came upon the dialect while at the fed and you soon learn to mumble with great incoherence. In an interview with 60 Minutess Lesley Stahl on September 16,2007, Stahl stated how In public, Greenspan was inscrutable whenever congress asked about interest rates. So, you end up with when, say, a Congressman asks you a question, so, I proceed with four or five sentences which get increasingly obscure. The Congressman thinks I answered the question and goes onto the next one, but I nonetheless had to testify before Congress. On questions that were too market-sensitive to answer, “no comment” was indeed an answer, and so you construct what we used to call Fed-speak. I would hypothetically think of a plate in front of my eyes, which was the Washington Post, the following morning’s headline. Then, instead of just stopping, I would continue on resolving the sentence in some obscure way which made it incomprehensible, but nobody was quite sure I wasn’t saying something profound when I wasn’t. And that became the so-called Fed-speak which I became an expert on over the years, as of 2011, the Federal Reserve Bank of Dallas website still maintains a Greenspeak page with dozens of excerpts from Greenspans past statements as head of the Federal Reserve Bank. Each quotation has a pointer to its context in his speech. Risk takers have been encouraged by an increase in economic stability to reach out to more distant time horizons. But long periods of relative stability often engender unrealistic expectations of it permanence and, at times, may lead to financial excess, clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets
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Discount window
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The term originated with the practice of sending a bank representative to a reserve bank teller window when a bank needed to borrow money. The interest rate charged on loans by a central bank is called the discount rate, base rate, or repo rate. It is also not the thing as the federal funds rate or its equivalents in other currencies. In recent years, the discount rate has been approximately a point above the federal funds rate. Because of this, it is a relatively unimportant factor in the control of the supply and is only taken advantage of at large volume during emergencies. In the United States, there are several different rates charged to institutions borrowing at the Discount Window. In 2006, these were, the primary credit rate, the secondary rate. The Federal Reserve does not publish information regarding institutions eligibility for primary or secondary credit, primary and secondary credit is normally offered on a secured overnight basis, while seasonal credit is extended up to nine months. The primary credit is normally set 100 basis points above the federal funds target, the seasonal credit rate is set from an averaging of the effective fed funds rate and 90-day certificate of deposit rates. Institutions must provide acceptable collateral to secure the loan, the flood of funds released into the banking system reduced the immediate need for banks to rely on payments from other banks to make the payments they themselves owed others. This kept liquidity alive in the economy despite interruptions of communications, on August 17,2007, the Board of Governors of the Federal Reserve announced a temporary change to primary credit lending terms. The discount rate was cut by 50 bp—to 5. 75% from 6. 25%—and the term of loans was extended overnight to up to thirty days. This reduced the spread of the primary credit rate over the fed funds rate from 100 basis points to 50 basis points, the maximum term of loans was extended from thirty days to ninety days. Less than a year before the term was only overnight, the primary credit rate was also reduced to 3. 25% from 3. 50%, which cut the spread of the primary credit rate over the fed funds rate to 25 basis points from 50 basis points. With the bankruptcy of Lehman Brothers again the volume of borrowing requests increased dramatically, banks lend not directly to each other, but to the central bank and, on the other side, borrow not directly from each other, but from the central bank. In the eurozone the discount window is called Standing Facilities, which are used to manage overnight liquidity, qualifying counterparties can use the Standing Facilities to increase the amount of cash they have available for overnight settlements using the Marginal Lending Facility. Conversely, excess funds can be deposited within the European Central Bank System, counterparties must have collateral for the funds they receive from the Marginal Lending Facility and will be charged the overnight rate set by the ECBS. Excess capital can be deposited with the Deposit facility and they will earn interest at the rate offered by the ECBS
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Federal funds rate
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In the United States, the federal funds rate is the interest rate at which depository institutions lend reserve balances to other depository institutions overnight, on an uncollateralized basis. Reserve balances are amounts held at the Federal Reserve to maintain depository institutions reserve requirements, Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The federal funds rate is an important benchmark in financial markets, the federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule, the Federal Reserve uses open market operations to influence the supply of money in the U. S. economy to make the federal funds effective rate follow the federal funds target rate. Financial Institutions are obligated by law to certain levels of reserves. In the range of $9.3 million to $43.9 million, transaction deposits over $43.9 million held at the same depository institution carried a 10 percent reserve requirement. For example, assume a particular U. S. depository institution, in the course of business. This dispenses money and decreases the ratio of reserves to money loaned. If its reserve ratio drops below the required minimum, it must add to its reserves to remain compliant with Federal Reserve regulations. The bank can borrow the funds from another bank that has a surplus in its account with the Fed. The nominal rate is a set by the governors of the Federal Reserve. That nominal rate is almost always what is meant by the media referring to the Federal Reserve changing interest rates, the actual federal funds rate generally lies within a range of that target rate, as the Federal Reserve cannot set an exact value through open market operations. Another way banks can borrow funds to keep up their required reserves is by taking a loan from the Federal Reserve itself at the discount window and these loans are subject to audit by the Fed, and the discount rate is usually higher than the federal funds rate. Confusion between these two kinds of loans often leads to confusion between the funds rate and the discount rate. Another difference is that while the Fed cannot set an exact federal funds rate, the federal funds rate target is decided by the governors at Federal Open Market Committee meetings. The FOMC members will increase, decrease, or leave the rate unchanged depending on the meetings agenda. Interbank borrowing is essentially a way for banks to raise money. For example, a bank may want to finance a major industrial effort, in such cases the bank will quickly raise this amount from other banks at an interest rate equal to or higher than the Federal funds rate
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History of central banking in the United States
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This history of central banking in the United States encompasses various bank regulations, from early wildcat practices through the present Federal Reserve System. Others were strongly in favor of a central bank, as a result, the First Bank of the United States was chartered by Congress within the year and signed by George Washington soon after. The First Bank of the United States was modeled after the Bank of England, for example, it was partly owned by foreigners, who shared in its profits. Also, it was not solely responsible for the supply of bank notes. It was responsible for only 20% of the supply, state banks accounted for the rest. Several founding fathers bitterly opposed the Bank, Thomas Jefferson saw it as an engine for speculation, financial manipulation, and corruption. In 1811 its twenty-year charter expired and was not renewed by Congress, after five years, the federal government chartered its successor, the Second Bank of the United States. James Madison signed the charter with the intention of stopping runaway inflation that had plagued the country during the five-year interim and it was basically a copy of the First Bank, with branches across the country. Andrew Jackson, who became president in 1828, denounced the bank as an engine of corruption and his destruction of the bank was a major political issue in the 1830s and shaped the Second Party System, as Democrats in the states opposed banks and Whigs supported them. He was unable to get the bank dissolved, but refused to renew its charter, Jackson attempted to counteract this by executive order requiring all Federal land payments to be made in gold or silver. This produced the Panic of 1837, in this period, only state-chartered banks existed. They could issue notes against specie and the states heavily regulated their own reserve requirements, interest rates for loans and deposits. These banks had existed since 1781, in parallel with the Banks of the United States, the Michigan Act allowed the automatic chartering of banks that would fulfill its requirements without special consent of the state legislature. This legislation made creating unstable banks easier by lowering state supervision in states that adopted it, the real value of a bank bill was often lower than its face value, and the issuing banks financial strength generally determined the size of the discount. By 1797 there were 24 chartered banks in the U. S. with the beginning of the Free Banking Era there were 712, during the free banking era, the banks were short-lived compared to todays commercial banks, with an average lifespan of five years. About half of the failed, and about a third of which went out of business because they could not redeem their notes. During the free banking era, some local banks took over the functions of a central bank, in New York, the New York Safety Fund provided deposit insurance for member banks. In Boston, the Suffolk Bank guaranteed that bank notes would trade at par value
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Bank of North America
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It was based upon a plan presented by US Superintendent of Finance Robert Morris on May 17,1781 that created the Nations first de facto central bank. When shares in the bank were sold to the public, the Bank of North America became the countrys first initial public offering and it was succeeded in its role as central bank by the First Bank of the United States in 1791. In May 1781 Alexander Hamilton revealed that he had recommended Morris for the position the previous summer when the constitution of the executive was being solidified, Second, he proceeded to lay out a proposal for a National Bank. Morris, who had corresponded with Hamilton previously on the subject of funding the war, immediately drafted a proposal based on Hamiltons suggestion. Morris persuaded Congress to charter the Bank of North America, the first private bank in the United States. When Robert Morris became superintendent of finance in February 1781, continental currency had ceased to be issued, on April 30,1781, Alexander Hamilton sent Morris a letter. The original charter called for the disbursement of 1,000 shares priced at $400 each, benjamin Franklin purchased one share for 0. 1% ownership as a sign of good faith to Federalists and the new bank and Hamilton made public endorsement of the establishment under his pseudonym. William Binghams first daughter, Ann Louisa Baring was born the day before the bank opened and she was also the granddaughter of Thomas Willing, a primary shareholder and the original President of the bank offices at Philadelphia. Using a gift/loan from France, Robert Morris purchased 63. 3% of the shares for the government. Robert Morris deposited large quantities of gold and silver coin and bills of exchange obtained through loans from the Netherlands and he then issued new paper currency backed by this supply. By 1783, Congress and several states including Massachusetts enacted legislation, within three years, the Bank was considered a creditworthy institution. John Nixon was the first director of the Bank of Pennsylvania, Morris subscribed £10,000 sterling to fund it. It was not a bank in the ordinary sense but an organization formed for the purpose of financing supplies for the army, in 1782, the Bank of North America superseded the Bank of Pennsylvania. Serving from 1792 to 1808, Nixon succeeded the first president of the Bank of North America, Thomas Willing, Nixon was in turn succeeded by John Morton, who served as President until 1822. William Frederick Havemeyer was its president from 1851 to 1861 and brought it successfully through the crisis of 1857, after it had become a National Bank in 1865, a president of the same name presided over its liquidation in 1908. The Bank of Pennsylvania was re-established in 1793, with a charter from the Commonwealth of Pennsylvania, and branches were opened in Pittsburgh, Harrisburg, Lancaster, Reading, and Easton. Wachovia operated a branch at the northwest corner of S. 6th and Chestnut Sts. in Philadelphia, diagonally opposite Independence Hall and this branch is the longest continuously operating branch bank in the States, operating in that location since 1781. Following Wells Fargos acquisition of Wachovia, Wells Fargo adopted Charter #1, the Bank of North America along with the First Bank of the United States and the Bank of New York were the first shares traded on the New York Stock Exchange
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