Table of Contents Acknowledgments      Preface      xiii 1. The Climax of a Long Struggle      Authorship of the Act      First United States Bank      Problems Persisted      Check Collection a Problem      A Search for Solutions      Democrats Come to Power      Ideas Sharply Divided      A Quick Summary of the Act      Federal Advisory Council      2. Getting Organized       How Many Fed Banks?      Subscribing Capital Stock      Hurry Up!      Preliminary Organization Committee      Surveying Opinions      Local Issues Important      Decision Time      Everyone Happy? No Way!      Naming the Federal Reserve Board      Politics Again      War Breaks Out      Fed Bank Directors      Open the Banks!      The “League”      3. Open for Business (1914–1919)      Who’s in Charge?      Changes in District Boundaries      How Can We Make A Profit?      A Wartime Atmosphere      Gold Settlement Fund      A New Currency—Federal Reserve Notes      Bank Reserves      Setting the Discount Rate      A Discount Policy      Check Clearing      Par Clearance of Checks      World War I and the Fed      United States Declares War      What Role for Gold?      A Glance into the Future      Governors’ Conference      Revisions of the Act Needed       A New Task for the Fed      Leadership in the Early Years      Does the Public Like the Fed?      4. A Struggle for Leadership (1920–1929)      Where Was the Fed?      The Phelan Act       No Firm Policy       Some Positive Facts      Speculation on the Rise      Internal Problems at the Fed      Politics Erupts      A Change in Mood      A Problem with Gold      Storage of Gold      Beginning of Open Market Operations      Markets Fall Apart      A Time for Action       “Tools” of the Fed      Leadership at the Fed       Day-to-Day Operations at Fed Banks      What about Par Banks?      Operations during the Decade of the 1920s      Legislation      5. A Decade of Change (1930–1939)      Where Was the Fed?      Looking Back      How to Handle a Run on Your Bank       What Action Should the Fed Have Taken?      Roosevelt Elected President       The Crisis Had Been Building       A New Face at the Fed       84      The Banking Act of 1933      Reserves for Feds Suspended      The Banking Act of 1935      What Fed Policy Now ?      Fed Gets a New Home      Meanwhile in the Back Rooms of the Feds      6. World War II and Its Aftermath (1941–1950)      What Role for the Fed?      Credit Controls      Peace Arrives      Now Let’s Deal with Inflation       A Change of Presidents      Unexpected Support for the Fed      Fed Makes a Formal Policy Statement      Another Side to the Fed      Federal Reserve Bulletin Born      Don’t Forecast!      How Much Does It Cost?      Work Increases at Fed Banks      7. The Fed Comes into Its Own (1950–1959)      What Was the Accord?      Enter Congressman Partman      Refining “Independence”      Power of the Fed Recognized       Challenges within the System      Chairman Martin and Washington Politics      Behind the Scenes at FOMC      The “Desk”      Operational Studies in the System       What to Do with All Those Checks      Counting All That Money      Changing Role of the Discount Window      Looking Back      8. The Public Discovers the Fed (1960–1969)      The Fed’s Role      Politics as Usual Again      Fed’s Independence Challenged Again      Problems with Currency      Greater Problems with Coin      News on the International Front      A Substitute for Gold?      9. The Soaring Seventies (1970–1979)      A New Style of Leadership at the Fed       Difficult Economic Problems      Congress Wants to Know NOW      Evasive Action by the Fed      Let the Sunshine In?      How about a GAO Audit?      Chairman Burns Calls in the Reserves      Leadership Changes Again       Another First at the Board      Increasing Importance of International Factors      The Consumer Demands Attention       Bank Operations Changing Too      Changes Outside the Fed      148      Remote Disbursements a Problem      What Can the Fed Do?      More Buildings Needed      10. Another Banking Evolution (1980–1989)      Welcome, Paul Volcker      A “Warm” Welcome for the New Chairman      Inflation Slowed      Major Changes for the Fed and the Banking Industry      Changes Welcomed by Consumers      Impact on the Fed       The Fed Adjusts      Daylight Overdrafts      Remote Disbursements—A New Check Collection Problem      Consumers and the Fed      International Developments      Legislation      Volcker Leaves the Fed      A Look Back      Appendixes      Glossary      Copy of Original Federal Reserve Act      Commercial Banks Certifying to the Organization of Each Federal Reserve Bank      Governors and Directors of Each Federal Reserve Bank, 1914      Design of the First Federal Reserve Notes      Federal Reserve Banks and Branches, 1989      Map o Federal Reserve Districts, 1989      Members of the Federal Reserve Board and the Board of Governors with Federal Reserve District of Residence and Term of Service      Board of Governors and Official Staff, 1989      Federal Open Market Committee, 1989      Board of Governors Advisory Councils, 1989      Principal Officers at Federal Reserve Banks, 1914–1989      Principal Officers at Federal Reserve Banks and Branches, March 1989      Number of Officers and Employees at Each Federal Reserve Bank, 1915–1988      Number of Employees at Federal Reserve Board and the Board of Governors by Selected Years      Sample of a Directive to the Manager of the Trading Desk From the Federal Open Market Committee      Discount Rate at the Federal Reserve Bank of New York, 1914–1989      United States Marketable Securities and Related Data, 1915–1988      Commercial Bank Suspensions, 1892-1988      Number of Commercial Banks in U.S., Total Assets, Number of Banks Member of the Federal Reserve System and Related Data, 1915-1988      Gold: World Production and Stock Held by United States, 1914–1986      United States Federal Debt, 1916-1987      Description of Federal Reserve Districts, 1917      Income and Expenses of Each Federal Reserve Bank, 1914–1988      Statement of Condition as of the End of the Year for Each Federal Reserve Bank, 1914, 1920,1930, 1940, 1950, 1960, 1970, 1980 and 1988      Bibliography      Index