The Story of Money: 15--The Fed System
|Section 15: The Fed and afterwards||Next | Section Index|
|The Fed System
Initially the Fed’s role was primarily to prevent bank panics by creating an “elastic” currency—largely 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