that and also increase the amount of money in circulation and new credit available balance the sitiation how beneficial court harmful this limited amount of monetary manipulation could have been incubator announced really important for changes began taking place almost at once the federal reserve banks open for business in nineteen fourteen and two years later september foruth nineteen fifteen significant new means of monetary manipulation was granted by the goverment to this government created agency the reserve banks but now loan money directly to member banks on the basis for their promontory notes secured by a certain commercial credit whicht included fonds or notes of the united states a little power was important became apparent almost immediately world war one was already sweeping across europe and soon american fighting men were involved when america and of the world's govermment spending took a gigantic jump upwards other than coining money the government has only two legitimes ways of obtaining money to pay his bills one taxes and two borrowing against the credit of the united states higher taxes are never popular with the citizens 