| Description | As one of the first major steps in the attempt to avert the crisis which led, on 20 September 1931, to the suspension of the gold standard, credits were made available to the Bank from 1 August 1931 by the Bank of France and the Federal Reserve Bank of New York (FRBNY). The French credit appears to have been drawn in its entirety, being repaid on 1 November 1931 and 1 February 1932. The only papers in this file relating to the FRBNY credit indicate that small purchases of commercial bills were made. The file contains details of all bill transaction involved in the French credit. Security for the loan was in the form of commercial bills lodged at the Bank by the clearers in proportion to their deposits at end June 1931. Bills were to be eligible, non-renewable, with 30-90 days to run, and were to be replaced at eight days to maturity. The banks took in exchange treasury bills in excess of bills lodged. The opportunity was taken by the clearers to establish which names were regarded as eligible at the Bank, previously, presumably, never published. As indicated above, the arrangements for the FRBNY loan were different, purchases of bills being made directly on their behalf. |