1929 American Cheque Payable to the Federal Reserve (Best Viewed in Large)

Several years ago I bought an old American bank cheque / check on eBay from a British seller.

There're hundreds of old cheques on sale on eBay and they're not expensive. I got this one for perhaps GBP £ 2 (CAD $4) or so.

It wasn't until I got the cheque and I realised / realized that this cheque is quite interesting:

(1) The cheque was issued on 1929-08-01, which was before the 1929-10-24 Stock Market Crash and the subsequent Great Depression.

(2) The amount on the cheque was $4,429.73. Four-thousand dollars in today's money is perhaps just the monthly salary of an average worker in the West, but it must have been a huge amount back in 1929.

(3) It took me a long time to realise that the cheque was payable to the Federal Reserve Bank. Who paid and why was $4,429.73 transferred from a certain First Nationa Bank in Cooperstown, New York, to the Federal Reserve Bank?