Meltzer's History of the Federal Reserve and the evolution of central banking.(Book Review) From: The Cato Journal | Date: September 22, 2003| Author: Timberlake, Richard H. | COPYRIGHT 2003 Cato Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

   The only limit to a commercial bank's ability to discount is 
   the limit to good commercial paper.... Such paper 
   springs from self-clearing transactions.... It is the duty of 
   the banker to discount freely for his customer in a crisis or 
   panic.... The only limit ... is the limit to good commercial 
   paper.... The whole purpose of the Federal Reserve 
   Act is to enforce this practice. 
 
   --Rep. Charles Korbly (1913) 

The Great Monetary Paradox

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