Draftion And Function Of The Federal Reserve Act Of 1913

The federal reserve act of 1913 as a landmark of histoty of finance and bankingdevelopment,has been an inevitable problem in American finance and bankingresearch. Many people who are limited by the formation of the conventionalknowledge,are unwilling to leaving the familiar knowledge scope and venturing theunkown world because the research on bangking law is in neeed of a great amountof specialized knowledge of many sorts of subjects. Moreover, the dissertationtries to make people pay more attention to the research on histoty of Americanfinance and banking law, and promote the research development in the field.The definition of the federal reserve act in the dissertation is almost thesame as that of the federal reserve act of 1913 in America. Its specific definiionis that the act is passed in congress in 1913,provides that the federal reservebanks do with banking operations. But the federal reserve banks must receiveexamination and uniform leading of the federal reserve committee.The dissertation is to solve the problem of the draftion and function of thefederal reserve act. It should be noted that the definition of the draftion andfunction of the federal reserve act is very wide. It includes the contents of thefederal reserve act of 1913 and its amendments. The dissertation is divived intofour parts:Fist,the background of the draftion of the federal reserve act of 1913. Theimpetus which promote the federal reserve act to appear is not only one aspect,butmany aspects. These facts include the drive of the economic development,thefavorable political environment,the sustainance of the theoretical evolution andthe effect of the lawful thought.Second,the defect of the National Banking System.When we stress on otherfacts which result in the appearance of the federal reserve act,we can not ignorean important reason which is that the National Banking System has many problems.These problems include reserve pyramiding , the inelasticity of noteissues,scattered reserves,lack of clearing facilitiesand the absence of a lenderof last resort(central bank).Thirdly,the draftion and pass of the federal reserve act. The appearance ofthe federal reserve act results from the conflicts and compromise of all sortsof powers in congress. At the same time,it is also the crystal of the gradualmaturity of all sorts of act. From the early banking reform proposals to theBaltimore Plan,the Indianapolis Commission Plan and the Fowler Bill,to theAldrich-Vreeland Act,the Alidrich Act of 1911 and the Glass Bill, the rudimentof the federal reserve act is gradually formed,and the reform emphases is graduallychanged from the money reform to the central bank reform. Although there are manysevere debates, the consequence is that the federal reserve act is passed in Senateand House by conference and compromise at last,which opens a new page of thedevelopment of finace and banking in America.Fourthly,the exercise of the federal reserve act. That the federal reserveact takes effect provides the development of finance and banking in America witha new beginning. The act redresses the decentralization of banking,removes ofimmovable reserve,increase elasticity of credit,and estabish clearing andcollection system,which keeps financial and banking system gradually mature,and by and by leads to the high way of the health and sustained development.Fifthly,the function and considering of the federal reserve act. The centralbank system is primarily established according to the federal reserve act. Theact safeguards the independence of the central bank,increases the efficiency ofU.S. payments system,promotes the national trade development,acceleratestransfer of the international financial center and stabilizes finance and economy,which makes the central bank play an indispensable role in the national economy.But we also see many problems in the federal reserve act:the number and locationof the reserve banks are not decided;the location of ultimate power within theFederal Reserve is vague;it is not clear that which organization chargs the controlof the major policy tools,which are a hidden trouble of the crisis of 1929.The federal reserve act is a result of compromise and mutual benefit betweenpolitical and economic groups,between monopoly and competition,and betweendemocracy and centralization. The federal reserve act provides us with referencefor enhancing the independence of People's Bank of China...