| | Federal Reserve Bulletin: The establishment and evolution of the Federal ... @ HighBeam Research (Site not responding. Last check: 2007-10-09) |
 | | While the process of investigation, discussion, and compromise leading to the act had ended with President Wilson's signature, another long process was beginning: that of organizing and establishing in practice the central banking system of the United States and of developing new policies and tools to meet the changing needs and circumstances of the economy. |
 | | First, the act was a political compromise between different conceptions of what the Federal Reserve System as a whole, and the Board as part of that System, was to do and was not to do and what kind of checks and balances were needed. |
 | | But the act assumed that cooperation and coordination between the Board and the Reserve Banks, as well as among the Reserve Banks, would be automatic.(5) One example of the problems arising from this assumption regarded the discount rate, which each Reserve Bank was empowered to set for its own district. |
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