manu/mldr-zoomed-100char-total-queries-documents

chunk_id stringlengths 3 9	chunk stringlengths 1 100
9850_194	See also
9850_195	Aircraft cabin Airline seat Economy class Hypermobility (travel) First class
9850_196	IATA class codes Premium economy
9850_197	References External links
9850_198	Qantas History including business class history Business Class Community with pictures
9850_199	https://www.executivetraveller.com/did-qantas-invent-business-class
9850_200	Airline tickets Passenger rail transport Travel classes
9851_0	This article is about the history of the United States Federal Reserve System from its creation to
9851_1	the present.
9851_2	Central banking prior to the Federal Reserve
9851_3	The Federal Reserve System is the third central banking system in United States history. The First
9851_4	Bank of the United States (1791–1811) and the Second Bank of the United States (1817–1836) each had
9851_5	a 20-year charter. Both banks issued currency, made commercial loans, accepted deposits, purchased
9851_6	securities, maintained multiple branches and acted as fiscal agents for the U.S. Treasury. The
9851_7	U.S. Federal Government was required to purchase 20% of the bank capital stock shares and to
9851_8	appoint 20% of the board members (directors) of each of those first two banks "of the United
9851_9	States." Therefore, each bank's majority control was placed squarely in the hands of wealthy
9851_10	investors who purchased the remaining 80% of the stock. These banks were opposed by state-chartered
9851_11	banks, who saw them as very large competitors, and by many who insisted that they were in reality
9851_12	banking cartels compelling the common man to maintain and support them. President Andrew Jackson
9851_13	vetoed legislation to renew the Second Bank of the United States, starting a period of free
9851_14	banking. Jackson staked the legislative success of his second presidential term on the issue of
9851_15	central banking. "Every monopoly and all exclusive privileges are granted at the expense of the
9851_16	public, which ought to receive a fair equivalent. The many millions which this act proposes to
9851_17	bestow on the stockholders of the existing bank must come directly or indirectly out of the
9851_18	earnings of the American people," Jackson said in 1832. Jackson's second term in office ended in
9851_19	March 1837 without the Second Bank of the United States's charter being renewed.
9851_20	In 1863, as a means to help finance the Civil War, a system of national banks was instituted by the
9851_21	National Currency Act. The banks each had the power to issue standardized national bank notes based
9851_22	on United States bonds held by the bank. The Act was totally revised in 1864 and later named as the
9851_23	National-Bank Act, or National Banking Act, as it is popularly known. The administration of the new
9851_24	national banking system was vested in the newly created Office of the Comptroller of the Currency
9851_25	and its chief administrator, the Comptroller of the Currency. The Office, which still exists today,
9851_26	examines and supervises all banks chartered nationally and is a part of the U.S. Treasury
9851_27	Department.
9851_28	The Federal Reserve Act, 1913
9851_29	National bank currency was considered inelastic because it was based on the fluctuating value of
9851_30	U.S. Treasury bonds. If Treasury bond prices declined, a national bank had to reduce the amount of
9851_31	currency it had in circulation by either refusing to make new loans or by calling in loans it had
9851_32	made already. The related liquidity problem was largely caused by an immobile, pyramidal reserve
9851_33	system, in which nationally chartered rural/agriculture-based banks were required to set aside
9851_34	their reserves in federal reserve city banks, which in turn were required to have reserves in
9851_35	central city banks. During the planting seasons, rural banks would exploit their reserves to
9851_36	finance full plantings, and during the harvest seasons they would use profits from loan interest
9851_37	payments to restore and grow their reserves. A national bank whose reserves were being drained
9851_38	would replace its reserves by selling stocks and bonds, by borrowing from a clearing house or by
9851_39	calling in loans. As there was little in the way of deposit insurance, if a bank was rumored to be
9851_40	having liquidity problems then this might cause many people to remove their funds from the bank.
9851_41	Because of the crescendo effect of banks which lent more than their assets could cover, during the
9851_42	last quarter of the 19th century and the beginning of the 20th century, the United States economy
9851_43	went through a series of financial panics.
9851_44	The National Monetary Commission, 1907-1913
9851_45	Prior to a particularly severe panic in 1907, there was a motivation for renewed demands for
9851_46	banking and currency reform. The following year, Congress enacted the Aldrich–Vreeland Act which
9851_47	provided for an emergency currency and established the National Monetary Commission to study
9851_48	banking and currency reform.
9851_49	The chief of the bipartisan National Monetary Commission was financial expert and Senate Republican
9851_50	leader Nelson Aldrich. Aldrich set up two commissions – one to study the American monetary system
9851_51	in depth and the other, headed by Aldrich, to study the European central-banking systems and report
9851_52	on them.
9851_53	Aldrich went to Europe opposed to centralized banking but, after viewing Germany's banking system,
9851_54	he came away believing that a centralized bank was better than the government-issued bond system
9851_55	that he had previously supported. Centralized banking was met with much opposition from
9851_56	politicians, who were suspicious of a central bank and who charged that Aldrich was biased due to
9851_57	his close ties to wealthy bankers such as J.P. Morgan and his daughter's marriage to John D.
9851_58	Rockefeller, Jr.
9851_59	In 1910, Aldrich and executives representing the banks of J.P. Morgan, Rockefeller, and Kuhn, Loeb
9851_60	& Co., secluded themselves for ten days at Jekyll Island, Georgia. The executives included Frank A.
9851_61	Vanderlip, president of the National City Bank of New York, associated with the Rockefellers; Henry
9851_62	Davison, senior partner of J.P. Morgan Company; Charles D. Norton, president of the First National
9851_63	Bank of New York; and Col. Edward M. House, who would later become President Woodrow Wilson's
9851_64	closest adviser and founder of the Council on Foreign Relations. There, Paul Warburg of Kuhn, Loeb,
9851_65	& Co. directed the proceedings and wrote the primary features of what would be called the Aldrich
9851_66	Plan. Warburg would later write that "The matter of a uniform discount rate (interest rate) was
9851_67	discussed and settled at Jekyll Island." Vanderlip wrote in his 1935 autobiography From Farmboy to
9851_68	Financier:
9851_69	Despite my views about the value to society of greater publicity for the affairs of corporations,
9851_70	there was an occasion, near the close of 1910, when I was as secretive, indeed, as furtive as any
9851_71	conspirator. None of us who participated felt that we were conspirators; on the contrary we felt we
9851_72	were engaged in a patriotic work. We were trying to plan a mechanism that would correct the
9851_73	weaknesses of our banking system as revealed under the strains and pressures of the panic of 1907.
9851_74	I do not feel it is any exaggeration to speak of our secret expedition to Jekyl Island as the
9851_75	occasion of the actual conception of what eventually became the Federal Reserve System. ...
9851_76	Discovery, we knew, simply must not happen, or else all our time and effort would be wasted. If it
9851_77	were to be exposed publicly that our particular group had gotten together and written a banking
9851_78	bill, that bill would have no chance whatever of passage by Congress. Yet, who was there in
9851_79	Congress who might have drafted a sound piece of legislation dealing with the purely banking
9851_80	problem with which we were concerned?
9851_81	Despite meeting in secret, from both the public and the government, the importance of the Jekyll
9851_82	Island meeting was revealed three years after the Federal Reserve Act was passed, when journalist
9851_83	Bertie Charles Forbes in 1916 wrote an article about the "hunting trip".
9851_84	The 1911–12 Republican plan was proposed by Aldrich to solve the banking dilemma, a goal which was
9851_85	supported by the American Bankers' Association. The plan provided for one great central bank, the
9851_86	National Reserve Association, with a capital of at least $100 million and with 15 branches in
9851_87	various sections. The branches were to be controlled by the member banks on a basis of their
9851_88	capitalization. The National Reserve Association would issue currency, based on gold and commercial
9851_89	paper, that would be the liability of the bank and not of the government. The Association would
9851_90	also carry a portion of member banks' reserves, determine discount reserves, buy and sell on the
9851_91	open market, and hold the deposits of the federal government. The branches and businessmen of each
9851_92	of the 15 districts would elect thirty out of the 39 members of the board of directors of the

9850_194

See also

9850_195

Aircraft cabin Airline seat Economy class Hypermobility (travel) First class

9850_196

IATA class codes Premium economy

9850_197

References External links

9850_198

Qantas History including business class history Business Class Community with pictures

9850_199

https://www.executivetraveller.com/did-qantas-invent-business-class

9850_200

Airline tickets Passenger rail transport Travel classes

9851_0

This article is about the history of the United States Federal Reserve System from its creation to

9851_1

the present.

9851_2

Central banking prior to the Federal Reserve

9851_3

The Federal Reserve System is the third central banking system in United States history. The First

9851_4

Bank of the United States (1791–1811) and the Second Bank of the United States (1817–1836) each had

9851_5

a 20-year charter. Both banks issued currency, made commercial loans, accepted deposits, purchased

9851_6

securities, maintained multiple branches and acted as fiscal agents for the U.S. Treasury. The

9851_7

U.S. Federal Government was required to purchase 20% of the bank capital stock shares and to

9851_8

appoint 20% of the board members (directors) of each of those first two banks "of the United

9851_9

States." Therefore, each bank's majority control was placed squarely in the hands of wealthy

9851_10

investors who purchased the remaining 80% of the stock. These banks were opposed by state-chartered

9851_11

banks, who saw them as very large competitors, and by many who insisted that they were in reality

9851_12

banking cartels compelling the common man to maintain and support them. President Andrew Jackson

9851_13

vetoed legislation to renew the Second Bank of the United States, starting a period of free

9851_14

banking. Jackson staked the legislative success of his second presidential term on the issue of

9851_15

central banking. "Every monopoly and all exclusive privileges are granted at the expense of the

9851_16

public, which ought to receive a fair equivalent. The many millions which this act proposes to

9851_17

bestow on the stockholders of the existing bank must come directly or indirectly out of the

9851_18

earnings of the American people," Jackson said in 1832. Jackson's second term in office ended in

9851_19

March 1837 without the Second Bank of the United States's charter being renewed.

9851_20

In 1863, as a means to help finance the Civil War, a system of national banks was instituted by the

9851_21

National Currency Act. The banks each had the power to issue standardized national bank notes based

9851_22

on United States bonds held by the bank. The Act was totally revised in 1864 and later named as the

9851_23

National-Bank Act, or National Banking Act, as it is popularly known. The administration of the new

9851_24

national banking system was vested in the newly created Office of the Comptroller of the Currency

9851_25

and its chief administrator, the Comptroller of the Currency. The Office, which still exists today,

9851_26

examines and supervises all banks chartered nationally and is a part of the U.S. Treasury

9851_27

Department.

9851_28

The Federal Reserve Act, 1913

9851_29

National bank currency was considered inelastic because it was based on the fluctuating value of

9851_30

U.S. Treasury bonds. If Treasury bond prices declined, a national bank had to reduce the amount of

9851_31

currency it had in circulation by either refusing to make new loans or by calling in loans it had

9851_32

made already. The related liquidity problem was largely caused by an immobile, pyramidal reserve

9851_33

system, in which nationally chartered rural/agriculture-based banks were required to set aside

9851_34

their reserves in federal reserve city banks, which in turn were required to have reserves in

9851_35

central city banks. During the planting seasons, rural banks would exploit their reserves to

9851_36

finance full plantings, and during the harvest seasons they would use profits from loan interest

9851_37

payments to restore and grow their reserves. A national bank whose reserves were being drained

9851_38

would replace its reserves by selling stocks and bonds, by borrowing from a clearing house or by

9851_39

calling in loans. As there was little in the way of deposit insurance, if a bank was rumored to be

9851_40

having liquidity problems then this might cause many people to remove their funds from the bank.

9851_41

Because of the crescendo effect of banks which lent more than their assets could cover, during the

9851_42

last quarter of the 19th century and the beginning of the 20th century, the United States economy

9851_43

went through a series of financial panics.

9851_44

The National Monetary Commission, 1907-1913

9851_45

Prior to a particularly severe panic in 1907, there was a motivation for renewed demands for

9851_46

banking and currency reform. The following year, Congress enacted the Aldrich–Vreeland Act which

9851_47

provided for an emergency currency and established the National Monetary Commission to study

9851_48

banking and currency reform.

9851_49

The chief of the bipartisan National Monetary Commission was financial expert and Senate Republican

9851_50

leader Nelson Aldrich. Aldrich set up two commissions – one to study the American monetary system

9851_51

in depth and the other, headed by Aldrich, to study the European central-banking systems and report

9851_52

on them.

9851_53

Aldrich went to Europe opposed to centralized banking but, after viewing Germany's banking system,

9851_54

he came away believing that a centralized bank was better than the government-issued bond system

9851_55

that he had previously supported. Centralized banking was met with much opposition from

9851_56

politicians, who were suspicious of a central bank and who charged that Aldrich was biased due to

9851_57

his close ties to wealthy bankers such as J.P. Morgan and his daughter's marriage to John D.

9851_58

Rockefeller, Jr.

9851_59

In 1910, Aldrich and executives representing the banks of J.P. Morgan, Rockefeller, and Kuhn, Loeb

9851_60

& Co., secluded themselves for ten days at Jekyll Island, Georgia. The executives included Frank A.

9851_61

Vanderlip, president of the National City Bank of New York, associated with the Rockefellers; Henry

9851_62

Davison, senior partner of J.P. Morgan Company; Charles D. Norton, president of the First National

9851_63

Bank of New York; and Col. Edward M. House, who would later become President Woodrow Wilson's

9851_64

closest adviser and founder of the Council on Foreign Relations. There, Paul Warburg of Kuhn, Loeb,

9851_65

& Co. directed the proceedings and wrote the primary features of what would be called the Aldrich

9851_66

Plan. Warburg would later write that "The matter of a uniform discount rate (interest rate) was

9851_67

discussed and settled at Jekyll Island." Vanderlip wrote in his 1935 autobiography From Farmboy to

9851_68

Financier:

9851_69

Despite my views about the value to society of greater publicity for the affairs of corporations,

9851_70

there was an occasion, near the close of 1910, when I was as secretive, indeed, as furtive as any

9851_71

conspirator. None of us who participated felt that we were conspirators; on the contrary we felt we

9851_72

were engaged in a patriotic work. We were trying to plan a mechanism that would correct the

9851_73

weaknesses of our banking system as revealed under the strains and pressures of the panic of 1907.

9851_74

I do not feel it is any exaggeration to speak of our secret expedition to Jekyl Island as the

9851_75

occasion of the actual conception of what eventually became the Federal Reserve System. ...

9851_76

Discovery, we knew, simply must not happen, or else all our time and effort would be wasted. If it

9851_77

were to be exposed publicly that our particular group had gotten together and written a banking

9851_78

bill, that bill would have no chance whatever of passage by Congress. Yet, who was there in

9851_79

Congress who might have drafted a sound piece of legislation dealing with the purely banking

9851_80

problem with which we were concerned?

9851_81

Despite meeting in secret, from both the public and the government, the importance of the Jekyll

9851_82

Island meeting was revealed three years after the Federal Reserve Act was passed, when journalist

9851_83

Bertie Charles Forbes in 1916 wrote an article about the "hunting trip".

9851_84

The 1911–12 Republican plan was proposed by Aldrich to solve the banking dilemma, a goal which was

9851_85

supported by the American Bankers' Association. The plan provided for one great central bank, the

9851_86

National Reserve Association, with a capital of at least $100 million and with 15 branches in

9851_87

various sections. The branches were to be controlled by the member banks on a basis of their

9851_88

capitalization. The National Reserve Association would issue currency, based on gold and commercial

9851_89

paper, that would be the liability of the bank and not of the government. The Association would

9851_90

also carry a portion of member banks' reserves, determine discount reserves, buy and sell on the

9851_91

open market, and hold the deposits of the federal government. The branches and businessmen of each

9851_92

of the 15 districts would elect thirty out of the 39 members of the board of directors of the