Origins of the Federal Reserve Book-Entry System

[...]This article examines the origins and early development ofthe Federal Reserve’s book-entry system—the system mostclosely associated with the elimination of definitive, orcertificated, Treasury securities. We suggest that the Fed’ssystem was the product of three important factors: the desire ofthe Reserve Banks and the U.S. Treasury to reduce theiroperating costs and risks, the interest of the Reserve Banks andthe Treasury in preserving the liquidity of the Treasury market,and the goal of the Reserve Banks to decrease member bankoperating costs.[...]