Need help on Federal Reserve Regions as additional levers

[BushSpeak]

A couple years ago when I was studying up on Paul Warburg and the Jekyll Island crowd and the creation of the Federal Reserve, I remember reading about how Federal Reserve Regions were used as additional levers to inject/withdraw fiat money into the system.

Since I haven't been able to find any mention of this again, I am asking you for some help one way or the other.

The theory goes like this:

With the Fractional Reserve Banking system, banks can create loans up to 9 times their reserves as virtual/fiat money.

When the FED creates new (fiat money), they can then loan 9 times the amount to the regional banks, which in turn counts this as reserves and loans 9 times that amount to local banks, which in turn counts this as reserves and loans 9 times that amount to the people (who in turn spend the money on a house for example so the builders will then deposit the money in the bank which can then be re-loaned 9 times etc...).

This principal gives the FED tremendous leverage (9x9x9...) to inject fiat money into the system in times of expansion, but also to withdraw money in times of contraction.

This is what happened at the beginning of the depression, when the FED recalled part of their loans and sent local banks scrambling to recall their personal loans.

I would appreciate any help/links you can provide on this process, especially on the role of regional reserve banks as levers.

Living in France and trying to explain to people here how the fiat money system works.

Thanks in advance.