New York Fed Research Library
In times of economic uncertainty, most people’s natural response is to cling to cash in the interest of self-preservation. As the recent financial crisis demonstrated, financial institutions may hoard cash as well, creating a credit freeze.
This issue was considered in the unlikely pages of the May 1932 issue of Popular Science Monthly by Financial Editor Leon Meadow. Meadow’s lively narrative addresses the pitfalls of hoarding cash and espouses the purchase of Liberty Bonds.
A gas attendant takes an oversized wad of bills out of his overalls to make change for a customer and says “safest place for my dough . . . can’t trust anyone these days.”
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