Cục Dự trữ giảm dự trữ tổng cộng $. Thông qua vào cuối tháng sáu, tổng số tiền gửi không kỳ hạn của tất cả các ngân hàng giảm $ 471,000,000. Tuy nhiên, các ngân hàng quản lý để chuyển sang tiền gửi có kỳ hạn và thậm chí overcompensate, nâng cao tiền gửi có kỳ hạn $ 1150000000. | 160 America s Great Depression its policy in the spring of 1928 and tried to halt the boom. From the end of December 1927 to the end of July 1928 the Reserve reduced total reserves by 261 million. Through the end of June total demand deposits of all banks fell by 471 million. However the banks managed to shift to time deposits and even to overcompensate raising time deposits by billion. As a result the money supply still rose by billion in the first half of 1928 but this was a relatively moderate rise. This was a rise of percent per annum compared to an increase of percent per annum in the last half of 1927 when the money supply rose by billion. A more stringent contraction by the Federal Reserve one enforced for example by a penalty discount rate on Reserve loans to banks would have ended the boom and led to a far milder depression than the one we finally attained. In fact only in May did the contraction of reserves take hold for until then the reduction in Federal Reserve credit was only barely sufficient to overcome the seasonal return of money from circulation. Thus Federal Reserve restrictions only curtailed the boom from May through July. Yet even so the vigorous open market sales of securities and drawing down of acceptances hobbled the inflation. Stock prices rose only about 10 percent from January to By mid-1928 the gold drain was reversed and a mild inflow resumed. If the Federal Reserve had merely done nothing in the last half of 1928 reserves would have moderately contracted due to the normal seasonal increase in money in circulation. At this point true tragedy struck. On the point of conquering the boom the FRS found itself hoisted by its own acceptance policy. Knowing that the Fed had pledged itself to buy all acceptances offered the market increased its output of acceptances and the Fed bought over 300 million of acceptances in the last half of 1928 thus feeding the boom once more. Reserves increased by 40Anderson .
