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In its earliest years, the Discount Window wasn't something to be avoided at all costs, it was nearly the whole point. In order to supply largely seasonal liquidity, the word "discount" meant banks could show up at one of the local 12 Fed branches and post collateral for an increase in their reserve balance. No one would be stuck holding illiquid even short-term paper.
Operating on a loose doctrine of "real bills", there wasn't even much management required. Most of the collateral being handed over was self-extinguishing, an exercised letter of credit or temporary funding