THE  MONEY  MARKET

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mediate  inquiry.  The  two  conclusions  with  which
our  present  concern  lies  are:  (i)  the  discount  apparatus ­
  of  the  Federal  Reserve  Banks  has  effectively
relieved  the  money  market  from  strain  during  the
period  of  war  borrowing.  The  price  paid  for  some
measure  of  this  relief  may  hereafter  appear  to  have
been  excessive,  but  that  it  has  been  afforded  is  indubitable. ­
  (2)  The  equilibratory  apparatus  has
not  been  organically  related  to  certificate  borrowing.
Used  in  conjunction  therewith  the  result  has  been  an
extraordinary  freedom  from  monetary  disturbance.
But  the  stabilizing  effect  is  imputable  to  the  credit
mechanism  and  not  to  the  borrowing  device.  The
same  arrangements  might  have  been  used,  with
slight  change  and  presumably  with  like  success,  in
connection  with  ordinary  funding  operations.