Page:Stabilizing the dollar, Fisher, 1920.djvu/267

10] The above Act assumes that a reasonable banking system, such as our Federal Reserve System, already exists under which deposits subject to check will be kept in some reasonable relation to bank reserves.

The Federal Reserve Board could assist in the prompt and efficient operation of the new system by having due regard to the rise and fall of the Index Number, as suggested by Mr. Paul Warburg. This would help its adjustment of the rate of discount and its general loan policy to be such as to keep the volume of individual deposits subject to check approximately proportional both to bank reserves and to the Government gold reserve against gold bullion dollar certificates.