Trump v. Cook · ¶96
The advocates of the Federal Reserve Act did not take themselves to be following in this tradition. Instead, they ridiculed it, describing the United States before the Federal Reserve Act as “at about the same point that had been reached by Europe at the time of the Medicis, and by Asia, in all likelihood, at the time of Hammurabi.” P. Warburg, Defects and Needs of Our Banking System, N. Y. Times, Jan. 6, 1907, p. 14 (Defects and Needs). Paul Warburg, the architect of the Federal Reserve Act and himself a German citizen at the time, began advocating in 1907 for this country to follow the model of the German Reichsbank, which he described as “the most perfect organization of its kind.” Ibid.; see Warburg a Leader in Banking Reform, N. Y. Times, Jan. 25, 1932, p. 5. The Reichsbank and other European banks could, unlike American banks, rediscount notes, serve as a lender of last resort,…Read in context ›
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