RESERVE SETTLEMENT PERIODS OF MEMBER BANKS: COMMENT.

The article presents a critique of a study by Albert H. Cox and Ralph F. Leach called "Defensive Open Market Operations and the Reserve Settlement Periods of Member Banks" that appears in this issue of the journal. In their original paper Cox and Leach presented the benefits of using a longer and staggered bank reserve averaging period that would be implemented by the U.S. Federal Reserve System. The author finds fault with their claim that the change would save labor because the reviewer feels that it would actually change the dynamic between central banks and bank credit and that central banks would convolute open market operations to maintain control.