The same facilities for maintaining equilibrium in both reserves and discounts exist in the case of intra-district mobility as in that of inter-district mobility. In the former, the banks deal directly with the Federal Reserve Bank of their district, and, by the process of discounting and rediscounting the commercial paper held by them, they are enabled to equalize their cash investment position. Such banks can obtain the assistance of the Federal Reserve Bank by the discount of their commercial paper holdings. Banks, moreover, may deal with one another, limited, however, by the rules and regulations prescribed by the Board in the case of member banks of the System.

In this way, the Federal Reserve has given to the country an elastic credit system and has laid a foundation for the creation of a discount market for commercial paper.