may 16, 1913 - Federal Reserve Act

Description:

~The Fed was the nations first true central bank and could not lend money to other banks in times of need.
~Created 12 federal reserve banks through out the country.
~All banks charted by the national gov were required to become members of the Fed
~members store some of their cash reserve in the Federal Reserve Bank in their district
~All Fed banks are supervised b the federal reserve board.
~The regional reserve banks were allowed to make short term loans to each bank to help them meet short term demands. This helped prevent bank failure when large amounts of depositors withdrew their funds during a panic