Federal Reserve Act

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The Federal Reserve Act, also known as the Act of December 23, 1913, ch. 6, 38 Stat. 251, codified in part at Chapter 3 of title 12 of the United States Code, Template:Usc et seq., is a 1913 act of Congress that created the Federal Reserve System, the central bank of the United States of America. The act was based on the reports (1909-1912) of the National Monetary Commission created by the Aldrich-Vreeland Act in 1908. Image:Fed Reserve.JPG According to the United States Constitution, only the U.S. Congress has the power and responsibility to coin money and set its value. In the 1913 Federal Reserve Act however, Congress delegated this power to the Federal Reserve. The constitutionality of this type of action has been controversial (see Nondelegation doctrine).

The Federal Reserve System consists of twelve Federal Reserve Banks:

• Boston, Massachusetts
• New York, New York
• Philadelphia, Pennsylvania
• Cleveland, Ohio
• Richmond, Virginia
• Atlanta, Georgia
• Chicago, Illinois
• St. Louis, Missouri
• Minneapolis, Minnesota
• Kansas City, Missouri
• Dallas, Texas
• San Francisco, California

All banks chartered under the National Banking Act of 1863 were made members of the Federal Reserve System, while others could join. A Board of Governors appointed by the President of the United States supervised the system.

External links

• Text of the Act, at federalreserve.gov
• Modern Money Mechanics - Booklet printed by the Federal Reserve, now out of print
• Paul Warburg's Crusade to Establish a Central Bank in the United States