Excerpt from The Federal Reserve System and the Banks The more important this market grows, the stronger will be the position of the Federal Reserve Banks, for the greater or lesser volume of purchases of such accept ances will Offer one of the Federal Reserve Banks' most efiective means of exercising a wholesome influence upon the fluctuation of interest rates. As normal conditions are reestablished in the world, this acceptance market will become an important factor in protecting our ex change position with foreign countries and, incidentally, our gold holdings. It has taken some time to develop this market, but I am confident that, from now on, its growth will be rapid. One of the obstacles that made the start difficult was found in the fact that many accept auces, which are made for the purpose of financing im portations and exportations, have to be drawn and sold in foreign countries.