|Section 15: The Fed and afterwards||Previous | Next | Section Index|
|The Fed System
Initially the Feds role was primarily to prevent bank panics by creating an elastic currencylargely through making discount loans to banks. The Fed was also to establish a nationwide network for transferring money by check and wire, to keep fit currency and coin in circulation, and to supervise state-chartered banks that joined the Federal Reserve System. However, many banks chose not to join the Fed.
Reproduction of the Federal Reserve Act