The present glut in the money markets, with excessively cheap money and its attendant evils and dangers to the credit structure of the country, is due to the concurrence of three main causes:
- The unprecedented flow of gold to the United States.
- The current business reaction.
- Excessive Federal Reserve Bank earning assets, due to a feeling on the part of the Federal Reserve authorities that they owe it to their stockholders to earn expenses and dividends at all times.
