At the inception of the Federal Reserve in 1913, it was presumed that Federal Reserve assets would primarily consist of short-term privately issued paper, such as bankers' acceptances, trade acceptances
, and bills of exchange.
The underlying receivable has been converted into a Trade Acceptance
In particular, the US lacked a liquid market in trade acceptances
, the instrument used to finance imports and exports.
One of the heavy hindrances in former years lay in the lack of a market for foreign trade acceptances
in the United States such as exists in all the Western and Central European countries.