Federal Reserve Act of 1913

Exploring the Essential Primary Sources
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Federal Reserve Act of 1913
https://doi.org/10.3735/9781968349172.book-part-39

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Abstract

Since the end of the Second National Bank in 1836, fluctuations in the United States’ economy led to a series of panics and recessions. Fear of establishing a centralized system, along with disputes over public or private ownership, further hampered the development of a centralized system. The Panic of 1907, however, highlighted the growing economic instability. The government's severe shortage of cash (liquidity) led it to seek aid from J.P. Morgan and other wealthy financiers. Fear that only the ultra-wealthy had enough money to stabilize the U.S. economy during times of crisis caused many to explore the return of a centralized system.

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