The advantages of the Federal Reserve system began to be apparent very soon after its establishment. Thus, in their first annual report to the Federal Reserve Board, the directors of the Federal Reserve Bank of Chicago said: "This bank opened on November 16, 1914, just as business was beginning to recover from the shock occasioned by the declaration of war in Europe. After that date the steadying and quieting influence of the Federal Reserve system began to be felt and a quick reduction began in the high rates of interest then prevailing. By January 1, 1915, a better tone was apparent."

Regarding the discounting (or re-discounting) of commercial paper by the member banks, this typical report said:

"It is the policy of the bank to lend liberal assistance to deserving banks for seasonal or emergency purposes, and on the other hand to discourage any tendency toward over-expansion.

"From the outset, the officers have undertaken by correspondence and by personal interview to familiarize member banks with the procedure in discounting, which has been made as simple and expeditious as possible, all unnecessary formality being eliminated."