Refund from the seigniorage tax

Free Money Calculation: Fed Will Give $36.93 Billion of Taxpayer Money to Banks

The seigniorage stream is a subsidy from the bond industry to Congress. The IOER are a partial refund. We end up with a net subsidy to both Congress and member banks. The transactional cost of these subsidies is currency risk, borne ultimately by Congress as Congress has no other currency with which to sell government goods.

Solution?

Quit calling them'excess reserves'call them deposits at the Fed by qualifying account.  Then let the machine do part of the work by treating loans and deposits as separate queues such that currency risk is priced as we go along. Add entry and exit for member accounts.