the lationship with the treasury became more equaland sy. more on open-market operations wealked with richard gill. when the fed made open-market puhases of government securities as it diprior to 1951, it was effectively ireasing the reserves availab to the commercial banking system. and thus potential making more money available to the economy in general. here's how it works. the fed purchases, say, bilfit pays for these bonds to thereasury's account. the treasu uses is torite checks to people who are providing services tohe government. ese private individuals posit ese checks thesof these banks' reserves. with these neweserves, banks can create more money. is is very muc like pnting-press money. the fed was sayingatheime oy may have been appropriate inepressioyears, buwas longeappropate an econome it waslso serving noticeheime oy that monetary pocydeies.e mighnot be so weak a ol buwas longeappropate an econome it waslso serving noticeheime oy that we worked for two centuries to climb this peak of prosperity, but we're only at the beginning