America 1919-Chapter 919 - 314, Federal Reserve

Donnie’s passenger ship arrived in New York!

After arriving in New York, Donnie did not immediately set out to return to Atlantic City but instead met simultaneously with Jack Morgan and Old Rockefeller.

When the two heard that Donnie had successfully persuaded the Rothschild family, they both showed expressions of surprise.

Although the banks controlled by the Rothschild family hold relatively few shares in the Federal Reserve, if combined with the shares held by banks controlled by the Warburg family and the influence of the two families,

their influence within the Federal Reserve is still considerable.

If the current Federal Reserve were considered as a nation, then Morgan, Rockefeller, the Warburg family, the Rothschild family, and the U.S. Government could be seen as five major powers within that nation.

On the surface, it appears that the Rothschild and Warburg families are united as one entity, but in reality, each power has various alliances due to differing interests.

To put it simply, you could think of the Federal Reserve as a female dormitory, and these five roommates share over a dozen social groups among themselves.

Regarding Donnie’s intention to join the Federal Reserve, while Morgan and Rockefeller outwardly express their support, it would be impossible to say they are entirely without concern.

Nevertheless, overall, they still support Donnie’s entry into the Federal Reserve.

Thus, after overcoming their initial surprise, the two congratulated Donnie.

But Donnie was not merely seeking their congratulations, "I need your help with one matter. Although there are no issues on the board of directors, the Reserve Bank and Senate aspects still require your assistance to resolve."

This was something Donnie had already discussed with the two before his trip to Europe. freewebnσvel.cѳm

The two naturally had no objections to Donnie’s request.

As for Venus Bank’s entry into the Federal Reserve, there were no significant hurdles remaining. Although there are many power-balancing mechanisms within the Federal Reserve, ultimately, those who truly have a voice and decision-making power within the Federal Reserve are precisely these individuals.

Donnie himself could technically resolve these matters now, but to test Morgan and Rockefeller’s true attitudes about his entry into the Federal Reserve, Donnie chose to delegate some tasks to them intentionally.

After all, it is through actions that one’s true attitude becomes evident.

From the looks of things now, there should be no issues on this matter.

After finishing discussions with the two, Donnie arranged to meet with the current titular chairman of the Federal Reserve, Daniel Crissinger.

Daniel Crissinger only became chairman of the Federal Reserve this year; his predecessor, William Harding, had held the position until last year.

In other words, during the transitional period when William Harding stepped down and Daniel Crissinger took over, the Federal Reserve did not have a sitting chairman.

However, this did not hinder the Federal Reserve’s operations.

Daniel Crissinger’s appointment as Federal Reserve chairman could be seen as a result of compromise among the various powers.

After Harding became President of the United States, he continually tried to install his own personnel within the Federal Reserve, but his efforts were met with resistance from the Federal Reserve’s board of directors and the Federal Advisory Council.

Faced with this, Harding had no choice but to wait.

It was not until this year that Harding finally managed to persuade them. Unfortunately, shortly after Daniel Crissinger became chairman of the Federal Reserve, Harding passed away!

In line with Harding’s policies on selecting and employing personnel, Daniel Crissinger was neither a renowned banker nor a financial expert.

The only qualification Daniel Crissinger could present was that he was Harding’s fellow townsman and childhood friend!

Daniel Crissinger now finds himself in a difficult position.

Already lacking prestige, his standing within the Federal Reserve has further diminished after Harding’s death.

"Donnie, what an unexpected guest you are!"

Upon seeing Donnie, Daniel Crissinger cheerfully shook his hand.

As Harding’s childhood friend, Daniel Crissinger naturally knew Donnie and was aware that, before Harding’s death, Donnie was among Harding’s most trusted confidants.

What made Daniel Crissinger even more envious was that now that Coolidge had taken office, not only did he not alienate Donnie due to Donnie’s prior association with Harding, but he even grew closer to Donnie than Harding had during his term.

Earlier, Donnie had even been invited to attend Coolidge’s inauguration ceremony.

Smiling, Donnie shook hands with Daniel Crissinger and said, "Dear Daniel, have you not been sleeping well lately? Your complexion looks a bit pale."

Daniel Crissinger sighed helplessly and said, "How could I sleep well? You have no idea; these people one by one act as if I don’t exist. Even this year, when I tried to convene the annual member bank meeting, they all made excuses and avoided it!"

The Federal Reserve, after all, is still a relatively newly established institution. Its power has yet to reach its zenith.

The so-called member banks of the Federal Reserve are essentially the banks that have joined the Federal Reserve System.

When the Federal Reserve was first established, it immediately faced the financial panic of 1907 in the United States.

To prevent bank failures, the federal government enacted the "Federal Reserve Act."

The Act stipulated reserve ratios based on the size of the cities, dividing them into 18%, 15%, and 12%.

Rural banks were the most reckless in their operations, but the reserve ratio prescribed by law was the lowest—just 12%.