Like the U. S. Constitution, the Federal Reserve System was originally designed with a full set of checks and balances. A check: to have the chairmen of the twelve regional Reserve Banks appointed by the Reserve Board in Washington. A balance: to have the governors (now presidents) named by the local directors of each Reserve Bank. Last year when the New Deal architects remodeled the Federal Reserve System into what for all practical purposes is a central bank of issue under political control, the reconstituted Reserve Board was given the power to veto...
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