dec 23, 1913 - Federal Reserve Act
Description:
This is important because the Federal Reserve Act of 1913 divided the nation into 12 districts and established a regional central bank in each district. These “banker’s banks” then served the other banks within the district. The federal reserve banks could issue new paper currency in emergency situations, and member banks could use the new currency to make loans to their customers. Federal reserve banks could transfer funds to member banks in trouble, saving the banks from closing and protecting customers’ savings. This concept of regulation of banks by the government(and government regulation) influenced the Clayton Antitrust Act of 1914.
Added to timeline:
Semester 1 History Summative Timeline Project
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