The Federal Reserve Board in Washington last week established 3½% as the rediscount rate for the Federal Reserve Bank of Chicago, and there was anger in Chicago.
Before the Federal Reserve Act became law in 1913 and was still in discussion, local bankers wanted the rediscount rates fixed by the proposed regional banks. The late William Jennings Bryan and his Democrats opposed that idea vigorously. The rates, said they, should be established by some central in-stitution—the Federal Reserve Board. The compromise: the boards of directors of each...
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