oct 13, 1907 - Panic of 1907 (Oct)

Description:

Panic of 1907 → long overdue monetary reforms; Highlighted currency shortage → exposed need for more elastic medium of exchange; Banks unable to increase $$ in circulation, ppl w/ lots of $$ didn’t want to lend $ to competitors; Congress passed (1908) Aldrich-Vreeland Act - authorized national banks to issue emergency currency backed by collateral; Helped pass Federal Reserve Act 1913