The Federal Reserve Act Essay

706 words - 3 pages

Discussing the Federal Reserve
After reading the article, The Influence of Economists on the Federal Reserve Act, it is apparent the author is trying to suggest that the economists played a major role in the banking reform which led to the development of the Federal Reserve Act. During the late 1800’s and early 1900’s, issues regarding the framework for which the bank operates on was inconsistent and did not perform as projected in foreseeable emergency situations. For this reason, economists developed strategies and offered a plan that would deter the U.S. from the current sub tier banking system currently in place into a more reliable centralized banking system. The author gives ...view middle of the document...

S. The author wants the reader to understand the extent to which the economists went to in order to find the most accurate solution.
With copious amounts of supporting details, the author’s point of view may be one that focuses on economists in relation to the Federal Reserve Act and less on political agendas. The economists were the ones responsible for providing research and acknowledging different solutions to the crisis of 1907. The author depicts economists in the article as “direct advisors” and “policy makers” which gives the reader a better understanding of their roles in which they were perceived by the Senate and Congress (Caporal, 2003). These were individuals that strived for excellence and would go to great means to make an impact in the economy that would alter the banking system forever.
Whether a reader agrees or disagrees with how the centralized banking system was created, the foundation for which it was built off of has continued to grow over a century with key fundamentals still in place today. The author’s implications...

Find Another Essay On The Federal Reserve Act

The Federal Reserve Essay

2256 words - 10 pages consumers seeking to save money such as savings banks (Meek, Morton, and Schug 478). The Federal Advisory Council has 12 members that meet quarterly, as set forth by the Federal Reserve Act. This council vies for the interests of commercial banks. The thirty members that compose the Consumer Advisory Council educate the Board on its duties towards consumers’ financial interests as detailed under the Consumer Credit Protection Act. The Thrift

The Federal Reserve System Essay

729 words - 3 pages The Federal Reserve System is the United States bank. Was created in December 23, 1913 by the congress to provide the nation with a better and stable monetary financial system. The Federal reserve’s is responsible for directing the nation’s monetary policy by persuading money and credit conditions in the economy in tracking down of full employment and stable prices ("Board Of Governors Of The Federal Reserve System", 2014). Also

The Federal Reserve

2337 words - 9 pages The Federal Reserve System is the United States of America’s central banking system and as such is one of the most powerful entities in the country. The Fed, as it is informally known, was created with the enactment of the Federal Reserve Act of 1913, aimed at preserving a system of checks and balances and the decentralized power echoed in the US constitution. It was sanctioned largely in response to a series of financial upheavals, in

The Federal Reserve

1926 words - 8 pages Panic of 1907 opened the door for the reinstatement of a U.S. Central Bank. The initial meeting to develop a Federal Reserve Act was held in secrecy. In November 1910, Senator Aldrich invited several bankers and economic scholars to attend a conference on Jekyll Island, Georgia. The meeting included Senator Nelson Aldrich, father-in-law to John Davison Rockefeller (The Rockefeller family is an American industrial, political, and banking family

The Federal Reserve System

1428 words - 6 pages Federal Reserve 5th District - PAGE 1 - The Federal Reserve SystemECONYour UniversityThe Federal Reserve BankThe fifth of twelve satellite banks in the Federal Reserve solar system belongs to our close neighboring city of Richmond, Va. Its function is not unlike its eleven sister banks that are strategically positioned throughout the country, and together form our nations central banking system. Congress put the construct of the Federal

History of the Federal Reserve

1282 words - 5 pages through constant crisis. Legislation was enacted in 1908 known as the Aldrich-Vreeland Act, which provided emergency funds during times of crisis. Furthermore, Congress created the National Monetary Commission, which was a group of members of congress that inspected European Central Banks, while examining flaws in United State’s banking system. The seeds of the Federal Reserve can be traced back to the famous meeting at Jekyll Island, hosted by

The Purpose of the Federal Reserve System

2692 words - 11 pages accounts of commercial banks, makes loans to commercial banks, and is authorized to issue Federal Reserve notes that constitute the entire supply of paper currency of the country. Created by the Federal Reserve Act of 1913, it is comprised of 12 Federal Reserve banks, the Federal Open Market Committee, and the Federal Advisory Council, and since 1976, a Consumer Advisory Council which includes several thousand member banks. The board of Governors of

How the Federal Reserve Runs the Country

1581 words - 6 pages The Federal Reserve System (The Fed) is the central bank of the United States. It was created by congress by the passage of the Federal Reserve Act in 1913. The Federal Reserve System is composed of the Board of Governors (in Washington D.C.), and twelve regional Federal Reserve Banks located in major cities (New York, St. Louis, Boston, Philadelphia, Kansas City, Richmond, Chicago, San Francisco, Minneapolis, Atlanta, Dallas and Cleveland

The Duty of the Federal Reserve

717 words - 3 pages The Federal Reserve Act was signed into law on December 23, 1913. Due to a series of financial panics around 1907, the Federal Reserve (also referred to as the “Fed”) was created by Congress to promote a stable banking system and an active economy. The Federal Reserves’ greatest client and biggest spender is the government of the United States. All proceeds from taxes generated and disbursements are managed through the account that the

Money, the Federal Reserve System, and Banking

722 words - 3 pages adopt a central banking system. Not until 1913 did Congress, under pressure from President Wilson, pass the Federal Reserve Act of 1913. Each Federal Reserve Bank operates as a private business with its own president and board of directors. The board of directors has nine members, six of whom are elected by member banks. Member banks are those that belong to the Federal Reserve System. The other directors are appointed by the Board of Governors

Role of the Federal Reserve Bank Today

1880 words - 8 pages subsidy of thirty million dollars to the banks and J.P. Morgan and others developed deals to restore the public confidence. The result of this crisis lead to a need for fiscal reforms--- Congress formed the Aldrich Vreeland Act. This act authorized national banks to issue emergency currency backed up by collateral (additional/subordinate). This smoothed the path for the Federal Reserve Act of 1913. The Federal Reserve Act of 1913, also known as the

Similar Essays

The Federal Reserve System Essay

2023 words - 8 pages After the Revolutionary War, many of the country’s citizens were in great debit and there was widespread economic disruption. The country was in need of an economic overhaul and the new country’s leaders would need to decide how to do this to ensure the new country did not fall apart. After two unsuccessful attempts at a national banking system, the Federal Reserve System was created by the Federal Reserve Act of 1913. Since its inception

The Federal Reserve System Essay

2320 words - 9 pages . 45). Also, another primary difference in what would become known as the Federal Reserve Act was the provision that every bank with a national charter would have to become a member of the Federal Reserve System ( President Wilson said that banks under the Federal Reserve Act “would be the instruments, not the masters, of business and of individual enterprise and initiative” (Schlesinger pp. 45

The Federal Reserve Essay 1194 Words

1194 words - 5 pages created the national currency. Crisis and bank failures in 1873, 1883, 1893, and 1907, eventually gave way to the Federal Reserve Act of 1913, to stabilize the banking system. Now we begin banking after 1913, starting with the creation of the Fed. Congress formed a bipartisan group, which enacted the Federal Reserve Act of 1913, a system founded that was to be both adaptable and flexible as it is now. The Federal Reserve System is essentially

The Federal Reserve Essay 1893 Words

1893 words - 8 pages ., p. 1). 223 years later, the Federal Reserve is met with the precise criticism (that they cater to the agenda of powerful private bankers) it received from the early agrarian Americans. Compounding this negative perception is the exodus of the Fed’s Board--it currently has an unprecedented number of vacancies, and the total of empty seats is likely to increase. The Federal Reserve Act was signed into law on December 23, 1913, and the System