How is money distributed?

[FEMA Camp Administrator]

I know, it might seem like a stupid question, and I already know part of the answer (or at least I think I do), that the Fed. Reserve loans banks money and that's how the printed money gets out there (I doubt that's even part of the answer). This is something I've been wondering for a little while and even if the Federal Reserve answer is the correct one, then how, according to the "End the Fed" people, is printed paper money distributed to the common folk?

[opebo]

According to Hard Work and Stick-to-it-iveness, don't you know your own party line?

[Gustaf]

I know, it might seem like a stupid question, and I already know part of the answer (or at least I think I do), that the Fed. Reserve loans banks money and that's how the printed money gets out there (I doubt that's even part of the answer). This is something I've been wondering for a little while and even if the Federal Reserve answer is the correct one, then how, according to the "End the Fed" people, is printed paper money distributed to the common folk?

I'm not sure I understand the question. Are you asking about money or printed money? Because printed money is not as far as I know distributed in any way other than via cash withdrawals from ATMs. It doesn't have much to do with any monetary policy issues.

[Filuwaúrdjan]

In comes into your account near payday (whenever that is) and proceeds to leave at an alarming rate.

[True Federalist (진정한 연방 주의자)]

http://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html

That should answer your question CathCon

[FEMA Camp Administrator]

http://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html

That should answer your question CathCon

Thank you. It mentions the Federal Reserve as the institution that distributes to the banks. How then, would new money go into circulation lacking a central bank issuing the currency?

[ingemann]

http://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html

That should answer your question CathCon

Thank you. It mentions the Federal Reserve as the institution that distributes to the banks. How then, would new money go into circulation lacking a central bank issuing the currency?

They wouldn't, without anyone issuing money the production of governmenty sponsored money would stop.

[True Federalist (진정한 연방 주의자)]

How would new money go into circulation lacking a central bank issuing the currency?

Back in the days of National Bank Notes, and before the Federal Reserve, a bank would do much the same thing except with the Comptroller of the Currency.

Before the National Banks and their notes, banks were free to print as much paper money as they wished.  Of course, if they printed more than they could cover with hard money when presented for redemption, they'd get into trouble, and often did, whether because of fraud or a bank run.

Speaking of hard money, back in the days of free coinage you'd bring some gold or silver to a mint and pay a fee to have it minted into legal tender coinage.  (The free in free coinage meant you were free to have as much of it turned into coins as you wished.)  Free coinage of silver halted in the United States in 1873 when we went on the gold standard and abandoned the absurdity of bimetallism.