Federal Reserve Act - wikipedia Federal Reserve Act Federal Reserve Act Long title An Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes Enacted by the 63rd United States Congress Citations Public law ( 63 - 43 Pub. L. 63 -- 43 ) Statutes at Large ch. 6, 38 Stat. 251 Legislative history Introduced in the House as H.R. 7837 by Carter Glass ( D - VA ) on August 29, 1913 Committee consideration by House Banking, Senate Banking Passed the House on September 18, 1913 ( 287 -- 85, 5 Present ) Passed the Senate on December 18, 1913 ( 54 -- 34 ) Reported by the joint conference committee on December 22, 1913 ; agreed to by the House on December 22, 1913 ( 298 -- 60 ) and by the Senate on December 23, 1913 ( 43 -- 25 ) Signed into law by President Woodrow Wilson on December 23, 1913 Major amendments Dodd -- Frank Wall Street Reform and Consumer Protection Act Federal Reserve The Federal Reserve Act ( ch. 6, 38 Stat. 251, enacted December 23, 1913, 12 U.S.C. § § 221 to 522 ) is an Act of Congress that created and established the Federal Reserve System ( the central banking system of the United States ), and which created the authority to issue Federal Reserve Notes ( commonly known as the US Dollar ) as legal tender. The Act was signed into law by President Woodrow Wilson. Contents 1 The Act 2 Background 2.1 The First Bank of United States 2.2 The Second Bank of the United States 3 Legislative history of the Act 4 Subsequent amendments 4.1 Charter extension 4.2 The Federal Open Market Committee 4.3 12 USC § 225a 5 Implications and impacts of the Federal Reserve Act 6 Criticisms of the Act 7 References 8 External links The Act The Federal Reserve Act created a system of private and public entities. There were to be at least eight and no more than twelve private regional Federal Reserve banks. Twelve were established, and each had various branches, a board of directors, and district boundaries. The Federal Reserve Board, consisting of seven members, was created as the governing body of the Fed. Each member is appointed by the President of the U.S and confirmed by the U.S. Senate. In 1935, the Board was renamed and restructured. Also created as part of the Federal Reserve System was a 12 - member Federal Advisory Committee and a single new United States currency, the Federal Reserve Note. The Federal Reserve Act created a national currency and a monetary system that could respond effectively to the stresses in the banking system and create a stable financial system. With the goal of creating a national monetary system and financial stability, the Federal Reserve Act also provided many other functions and financial services for the economy, such as check clearing and collection for all members of the Federal Reserve. With the passing of the Federal Reserve Act, Congress required that all nationally chartered banks become members of the Federal Reserve System. These banks were required to purchase specified non-transferable stock in their regional Federal Reserve banks, and to set aside a stipulated amount of non-interest bearing reserves with their respective reserve banks. Since 1980, all depository institutions have been required to set aside reserves with the Federal Reserve. Such institutions are entitled to certain Federal Reserve services. State chartered banks were given the option of becoming members of the Federal Reserve System and in the case of the exercise of such option were to be subject to supervision, in part, by the Federal Reserve System. Member banks became entitled to have access to discounted loans at the discount window in their respective reserve banks, to a 6 % annual dividend in their Federal Reserve stock, and to other services. Section Number Section Title Official Title Short Title and Definitions Federal Reserve Districts 2A Monetary Policy Objectives 2B Appearances Before and reports to the Congress Branch Offices Federal Reserve Banks 5 Stock Issues ; Increase and Decrease in Capital 6 Insolvency of Member Banks 7 Division of Earnings 8 Conversion of State Banks into National Banks 9 State Banks as Members 9A Participation in Lotteries Prohibited 9B Resolution of Clearing Banks 10 Board of Governors of the Federal Reserve 10A Emergency Advances to Groups of Member Banks 10B Advances to Individual Member Banks 11 Powers of Board of Governors of the Federal Reserve and Board 11A Pricing of Services 11B Annual Independent Audits of Federal Reserve Banks and Board 12 Federal Advisory Council 12A Federal Open Market Committee 13 Powers of the Federal Reserve Banks 13A Discount of Agricultural Paper 14 Open Market Operations 15 Government Deposits 16 Note Issues 17 Deposit of Bonds by National Banks 18 Refunding Bonds 19 Bank Reserves 20 National Bank Notes Redemption Fund as Reserve 21 Bank Examinations 22 Offenses of Examiners, Member Banks, Officers, and Distributors 23 Interbank Liabilities 23A Relations with Affiliates 23B Restrictions on Transactions with Affiliates 24 Real Estate Loans 24A Investment in Bank Premises or Stock of Corporation Holding Premises 25 Foreign Branches 25A Banking Corporations Authorized to do Foreign Banking Business 25B Jurisdiction of Suits 25C Potential Liability on Foreign Accounts 26 Repealed 27 Tax on National Bank Notes 28 Reduction of Capital of National Banks 29 Civil Money Penalty 30 Saving Clause 31 Reservation of Right to Amend Background Central banking has made various institutional appearances throughout the history of the United States. These institutions started with the First and Second banks of the United States, which were championed in large part by Alexander Hamilton. The first bank of United States The American financial system was deeply fragmented after the American Revolutionary War. The government was burdened with large wartime debts, and the new republic needed a strong financial institution to give the country a resilient financial footing. Alexander Hamilton and Thomas Jefferson had opposing views regarding whether or not the US could benefit from a European - style national financial institution. Hamilton was in favor of building a strong centralized political and economic institution to solve the country 's financial problem. He argued that a central bank could bring order to the US monetary system, manage the government 's revenues and payments, and provide credit to both the public and private sectors. On the other hand, Jefferson was deeply suspicious of a central bank because, he argued, it would undermine democracy. Jefferson and Southern members of congress also believed that a strong central financial institution would serve commercial interests of the north at the expense of Southern - based agriculture interests whose credit was provided by local banks during the post-revolutionary war era. The First Bank of the United States was established in 1791 chartered for a period of twenty years. The US government was the largest shareholder of the bank. Despite its shareholder status, the government was not permitted to participate in management of the bank. The bank accepted deposits, issued bank notes, and provided short - term loans to the government. It also functioned as a clearinghouse for government debt. The bank could also regulate state - chartered banks to prevent overproduction of banknotes. The bank was very successful in financing the government and stimulating the economy. In spite of its successes, hostility against the bank did not fade. Jeffersonians questioned the bank 's constitutionality. In 1811, the first bank of the United States failed to be renewed by one vote in both the House and the Senate. The Second bank of the United States After the War of 1812, economic instability necessitated the creation of a second national bank. Due to expanding money supply and lack of supervision, individual bank activity sparked high inflation. In 1816, a second national bank was created with a charter of twenty years. Three years later, during the panic of 1819 the second bank of the United States was blamed for overextending credit in a land boom, and would tighten up credit policies following the panic ( Wiletnz, 2008 ). The Second bank was unpopular among the western and southern state - chartered banks, and constitutionality of a national bank was questioned. President Jackson would come into office, and wished to end the current central bank during his presidency. Under the premise that the bank favored a small economic and political elite at the expense of the public majority, the Second Bank became private after its charter expired in 1836, and would undergo liquidation in 1841. For nearly eighty years, the U.S. was without a central bank after the charter for the Second Bank of the United States was allowed to expire. After various financial panics, particularly a severe one in 1907, some Americans became persuaded that the country needed some sort of banking and currency reform that would, when threatened by financial panics, provide a ready reserve of liquid assets, and furthermore allow for currency and credit to expand and contract seasonally within the U.S. economy. Some of this was chronicled in the reports of the National Monetary Commission ( 1909 -- 1912 ), which was created by the Aldrich -- Vreeland Act in 1908. Included in a report of the Commission, submitted to Congress on January 9, 1912, were recommendations and draft legislation with 59 sections, for proposed changes in U.S. banking and currency laws. The proposed legislation was known as the Aldrich Plan, named after the chairman of the Commission, Republican Senator Nelson W. Aldrich of Rhode Island. The Plan called for the establishment of a National Reserve Association with 15 regional district branches and 46 geographically dispersed directors primarily from the banking profession. The Reserve Association would make emergency loans to member banks, print money, and act as the fiscal agent for the U.S. government. State and nationally chartered banks would have the option of subscribing to specified stock in their local association branch. It is generally believed that the outline of the Plan had been formulated in a secret meeting on Jekyll Island in November 1910, which Aldrich and other well connected financiers attended. Since the Aldrich Plan gave too little power to the government, there was strong opposition to it from rural and western states because of fears that it would become a tool of bankers, specifically the Money Trust of NYC. Indeed, from May 1912 through January 1913 the Pujo Committee, a subcommittee of the House Committee on Banking and Currency, held investigative hearings on the alleged Money Trust and its interlocking directorates. These hearings were chaired by Rep. Arsene Pujo, a Democratic representative from Louisiana. In the election of 1912, the Democratic Party won control of the White House and both chambers of Congress. The party 's platform stated strong opposition to the Aldrich Plan. The platform also called for a systematic revision of banking laws in ways that would provide relief from financial panics, unemployment and business depression, and would protect the public from the `` domination by what is known as the Money Trust. '' The final plan, however, was quite similar to the Aldrich Plan, with a few revisions. Sen. Carter Glass made these revisions, although the main premise of the Aldrich Plan was in there. Changes in the Banking and Currency System of the United States ). House Report No. 69, 63rd Congress to accompany H.R. 7837, submitted to the full House by Carter Glass, from the House Committee on Banking and Currency, September 9, 1913. A discussion of the deficiencies of the then current banking system as well as those in the Aldrich Plan and quotations from the 1912 Democratic platform are laid out in this report, pages 3 -- 11. Legislative History of the Act This section does not cite any sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. ( April 2016 ) This article is part of a series about Woodrow Wilson Early Life Boyhood home South Carolina home President of Princeton University Campaign for Governor of New Jersey President of the United States Presidency First Term 1912 campaign Election 1st Inauguration Women 's suffrage Suffrage parade The New Freedom Silent Sentinels Federal Reserve Act Clayton Antitrust Act Federal Trade Commission United States occupation of Veracruz Pancho Villa Expedition Coalfield War Daylight saving time Banana Wars Second Term 1916 campaign Election 2nd Inauguration 18th Amendment 19th Amendment World War I World War I Zimmermann Telegram Thrasher incident Entry into war Against Austria - Hungary Against Germany American home front Espionage Act Fourteen Points Wilsonian Armenia Paris Peace Conference Big Four Treaty of Versailles League of Nations Judicial appointments Wilson House Woodrow Wilson School Wilson Center Presidential Library Wilsonianism The Federal Reserve Act was a part of the banking and currency reform plan advocated by President Wilson in 1912. The chairmen of the House and Senate Banking and Currency committees sponsored this legislation ; Rep. Carter Glass, a Democrat of Virginia, and Senator Robert Latham Owen, a Democrat of Oklahoma. According to the House committee report accompanying the Currency bill ( H.R. 7837 ) or the Glass - Owen bill, as it was often called during the time. Attempts to reform currency and banking had been made in the United States prior H.R. 7837. The major first form of this type of legislation came through with the First Bank of the United States in 1791. Championed by Alexander Hamilton, this established a central bank that included in a three - part expansion of federal fiscal and monetary power ( including federal mint and excise taxes ). Attempts were made to extend this bank 's charter, but they would fail before the charters expiration in 1811, which would lead to the creation of the Second Bank of the United States. In 1816 the U.S. Congress chartered this Second bank for a twenty - year period to create irredeemable currency with which to pay for the costs of the War of 1812. The creation of congressionally authorized irredeemable currency by the Second Bank of the United States opened the door to the possibility of taxation by inflation. Congress did not want state - chartered banks as competition in the inflation of currency. The charter for the Second Bank would expire in 1836, leaving the U.S. without a central bank for nearly eighty years. The last major form of legislation preceding the Federal Reserve Act came in 1908 with the Aldrich - Vreeland Act, which was the initial response the Panic of 1907, and established the National Monetary Commission, which recommended the Federal Reserve act of 1913. According to the House committee report accompanying the Currency bill ( H.R. 7837 ) or the Glass - Owen bill, the legislation was drafted from ideas taken from various proposals, including the Aldrich bill. However, unlike the Aldrich plan, which gave controlling interest to private bankers with only a small public presence, the new plan gave an important role to a public entity, the Federal Reserve Board, while establishing a substantial measure of autonomy for the ( regional ) Reserve Banks which, at that time, were allowed to set their own discount rates. Also, instead of the proposed currency being an obligation of the private banks, the new Federal Reserve note was to be an obligation of the U.S. Treasury. In addition, unlike the Aldrich plan, membership by nationally chartered banks was mandatory, not optional. The changes were significant enough that the earlier opposition to the proposed reserve system from Progressive Democrats was largely appeased ; instead, opposition to the bill came largely from the more business - friendly Republicans instead of from the Democrats. After months of hearings, debates, votes and amendments, the proposed legislation, with 30 sections, was enacted as the Federal Reserve Act. Subsequent amendments The Federal Reserve Act has undergone many amendments after its implementation. Early, bureaucratic amendments were made to account for states like Hawaii and Alaska 's admission to the union ; such as district restructuring and jurisdiction specifications. Charter extension The Federal Reserve Act was originally granted a twenty - year charter, to be renewed in 1933. This clause was amended on February 25, 1927 : `` To have succession after the approval of this Act until dissolved by Act of Congress or until forfeiture of franchise for violation of law. '' 12 U.S.C. ch. 3. As amended by act of Feb. 25, 1927 ( 44 Stat. 1234 ). The success of this amendment is notable, as in 1933, the US was in the throes of the Great Depression and public sentiment with regards to the Federal Reserve System and the banking community in general had significantly deteriorated. Given the political climate, including of Franklin D. Roosevelt 's administration and New Deal legislation, it was uncertain whether the Federal Reserve System would survive. The Federal Open Market Committee In 1933, by way of the Banking Act of 1933, the Federal Reserve Act was amended to create the Federal Open Market Committee ( FOMC ), which consists of the seven members of the Board of Governors of the Federal Reserve System and five representatives from the Federal Reserve Banks. The FOMC is required to meet at least four times a year ( in practice, the FOMC usually meets eight times ) and has the power to direct all open - market operations of the Federal Reserve banks. 12 U.S.C. § 225a On November 16, 1977, the Federal Reserve Act was amended to require the Board and the FOMC `` to promote effectively the goals of maximum employment, stable prices, and moderate long - term interest rates. '' The Chairman was also required to appear before Congress at semi-annual hearings to report on the conduct of monetary policy, on economic development, and on the prospects for the future. The Federal Reserve Act has been amended by some 200 subsequent laws of Congress. It continues to be one of the principal banking laws of the United States. Implications and impacts of the Federal Reserve Act The passing of the Federal Reserve act of 1913 carried implications both domestically and internationally for the United States economic system. The absence of a central banking structure in the U.S. previous to this act left a financial essence that was characterized by immobile reserves and inelastic currency. Creating the Federal Reserve gave the Federal Reserve control to regulate inflation, even though the government control over such powers would eventually lead to decisions that were controversial. Some of the most prominent implications include the internationalization of the U.S. Dollar as a global currency, the impact from the perception of the Central Bank structure as a public good by creating a system of financial stability ( Parthemos 19 - 28 ), and the Impact of the Federal Reserve in response to economic panics. The Federal Reserve Act also permitted national banks to make mortgage loans for farm land, which had not been permitted previously. Criticisms of the Act Main article : Criticism of the Federal Reserve Throughout the history of the United States, there has been an enduring economic and political debate regarding the costs and benefits of central banking. Since the inception of a central bank in the United States, there were multiple opposing views to this type of economic system. Opposition was based on protectionist sentiment ; a central bank would serve a handful of financiers at the expense of small producers, businesses, farmers and consumers, and could destabilize the economy through speculation and inflation. This created even further controversy over who would select the decision - makers in charge of the Federal Reserve. Proponents argued that a strong banking system could provide enough credit for a growing economy and avoid economic depressions. Other critical views included the belief that the bill gave too much power to the federal government after the senate revised the bill to create 12 board members who were each appointed by the president. Preceding the creation of the Federal Reserve, no U.S. central banking systems lasted for more than 25 years. Some of the questions raised include : whether Congress has the Constitutional power to delegate its power to coin money or issue paper money ( an obvious reference to Article 1, Sec. 8, Clause 5, which states : `` The Congress shall have power To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures '' ), whether the structure of the federal reserve is transparent enough, whether the Federal Reserve is a public Cartel of private banks ( also called a private banking cartel ) established to protect powerful financial interests, fears of inflation, high government deficits, and whether the Federal Reserve 's actions increased the severity of the Great Depression in the 1930s ( and / or the severity or frequency of other boom - bust economic cycles, such as the late 2000s recession ). Regarding the first question, at issue was not the federal government 's right to coin, or originate, our US money because the US government had already done so in the past ( i.e., Greenbacks ) and it is a sovereign right and responsibility of Congress stated in the US Constitution ( Article 1, Sec. 8, Clause 5 ). Rather, at issue was and still is that, through the Federal Reserve Act, the federal government delegated, and continues to delegate, its power to create our money to the private banks that comprise the Federal Reserve System. In so doing, Congress ( and, by the 1980s, the FED itself ) lost control over the money supply, the quantity of which determines the value or purchasing power of any unit thereof. Thus, Congress can no longer fulfill its constitutional responsibility to the public to regulate the value of our money, the vast majority of which private banks ( and, by the 2000s, shadow banks ) create through private - interest - bearing debt. References Jump up ^ Federal Reserve. `` Federal Reserve Bank of the United States '' Jump up ^ `` The First Bank of the United States ( 1791 -- 1811 ) '' Jump up ^ ( 1 ) ^ Jump up to : Report of the National Monetary Commission Archived 2010 - 06 - 09 at the Wayback Machine... January 9, 1912, letter from the Secretary of the Commission and a draft bill to incorporate the National Reserve Association of the United States, and for other purposes. Sen. Doc. No. 243. 62nd Congress. U.S. Government Printing Office. 1912. Jump up ^ Paul Warburg 's Crusade to Establish a Central Bank in the United States Michael A. Whitehouse, 1989. In attendance at the meeting were Aldrich ; Paul Warburg ; Frank Vanderlip, president of National City Bank ; Henry P. Davison, a J.P. Morgan partner ; Benjamin Strong, vice president of Banker 's Trust Co. ; and A. Piatt Andrew, former secretary of the National Monetary Commission and then assistant secretary of the Treasury. Jump up ^ Wicker, Elmus ( 2005 ). `` The Great Debate on Banking Reform : Nelson Aldrich and the Origins of the Fed ''. Ohio University Press. See also book review. Jump up ^ Money Trust Investigation -- Investigations of Financial and Monetary Conditions in the United States under House Resolutions Nos. 429 and 504 before a subcommittee of the House Committee on Banking and Currency. 27 Parts. U.S. Government Printing Office. 1913. Jump up ^ `` Archived copy '' ( PDF ). Archived from the original ( PDF ) on 2011 - 09 - 27. Retrieved 2009 - 08 - 20. Jump up ^ Parthemos, James. `` The Federal Reserve Act of 1913 in the Stream of U.S. Economic History '', Federal Reserve of Richmond Economic Review, Richmond, July 1987. Retrieved on 11 November 2013. Jump up ^ Federal Reserve. `` Federal Reserve Act, Section 2 '' Jump up ^ Broz, J. Lawrence ( 1999 ). `` Origins of the Federal Reserve System : International Incentives and the Domestic Free Rider Problem ''. International Organization. 53 ( 1 ) : 39 -- 70. doi : 10.1162 / 002081899550805. JSTOR 2601371. Jump up ^ Roger T. Johnson, Historical Beginnings... The Federal Reserve, p. 14, Federal Reserve Bank of Boston ( 1999 ), at ( 2 ). Jump up ^ Elias, Early and Jordá, Óscar. `` Crisis Before and After the Creation of the Fed '' FRBSF Economic Letter, May 6, 2013 Jump up ^ Friedman, Milton ; Schwartz, Anna Jacobson ( 1963 ). A Monetary History of the United States, 1867 -- 1960. National Bureau of Economic Research. Princeton University Press. p. 244. ISBN 0 - 691 - 04147 - 4. LCCN 63 - 7521. Jump up ^ Hsieh, Chang Tai ; Romer, Christina D. ( 2006 ). `` Was the Federal Reserve Constrained by the Gold Standard During the Great Depression ? Evidence from the 1932 Open Market Program '' ( PDF ). Journal of Economic History. 66 ( 1 ) : 140 -- 176. doi : 10.1017 / S0022050706000064. Jump up ^ Richardson, Gary ; Troost, William ( 2009 ). `` Monetary Intervention Mitigated Banking Panics during the Great Depression : Quasi ‐ Experimental Evidence from a Federal Reserve District Border, 1929 -- 1933 ''. Journal of Political Economy. 117 ( 6 ) : 1031 -- 1073. doi : 10.1086 / 649603. Jump up ^ Wheelock, David C. `` Monetary Policy in the Great Depression : What the Fed Did, and Why '' ( PDF ). Federal Reserve Bank of St. Louis Review : 3 -- 28. Jump up ^ Zarlenga, S. ( 2002 ). The Lost Science of Money. Valatie, NY : American Monetary Institute. Jump up ^ McLeay, M. Radia, A., & Thomas, R. ( 2014, Q1 ). Money creation in the modern economy. Quarterly Bulletin, Bank of England. External links Text of the current Federal Reserve Act, Board of Governors of the Federal Reserve System. Text of Federal Reserve Act as laid out in the U.S. Code, Cornell Law School. The original Federal Reserve Act, including the signature of Woodrow Wilson The original Federal Reserve Act, and index Paul Warburg 's Crusade to Establish a Central Bank in the United States by Michael A. Whitehouse, 1989. The Federal Reserve System In Brief -- An online publication from the Federal Reserve Bank of San Francisco. The Federal Reserve Act of 1913 -- A Legislative History, Law Librarians ' Society of Washington, DC, Inc., 2009 Historical documents related to the Federal Reserve Act and subsequent amendments Federal Reserve System Federal Open Market Committee Chair Governors Federal Reserve Bank Banknotes Federal Reserve Note Federal Reserve Bank Note Reports Beige Book Federal Reserve Statistical Release Monetary Policy Report to the Congress Fedspeak Federal funds Discount window Federal funds Federal funds rate History of Federal Open Market Committee actions Primary dealer History Aldrich -- Vreeland Act Bloomberg v. Federal Reserve Board of Governors, FRS v. Investment Co. Institute Federal Reserve Act Depository Institutions Deregulation and Monetary Control Act History of central banking in the United States Bank regulation in the United States Federal authorities Consumer Financial Protection Bureau Farm Credit Administration Federal Deposit Insurance Corporation Federal Financial Institutions Examination Council Federal Housing Finance Agency Federal Reserve Board of Governors Financial Stability Oversight Council National Credit Union Administration Office of the Comptroller of the Currency Major federal legislation Independent Treasury Act National Bank Act Federal Reserve Act McFadden Act 1933 Banking Act Glass -- Steagall Act Federal Credit Union Act Bank Holding Company Act Interest Rate Control Act of 1966 Truth in Lending Act Bank Secrecy Act Fair Credit Reporting Act Home Mortgage Disclosure Act Community Reinvestment Act Electronic Fund Transfer Act Financial Institutions Regulatory and Interest Rate Control Act of 1978 Monetary Control Act Depository Institutions Act Competitive Equality Banking Act of 1987 FIRREA FDICIA Truth in Savings Act Riegle - Neal IBBEA Gramm -- Leach -- Bliley Act Fair and Accurate Credit Transactions Act Emergency Economic Stabilization Act Credit CARD Act Dodd - Frank Federal Reserve Board regulations Extensions of Credit by Federal Reserve Banks ( Reg A ) Equal Credit Opportunity ( Reg B) Home Mortgage Disclosure ( Reg C ) Reserve Requirements for Depository Institutions ( Reg D ) Electronic Fund Transfer ( Reg E ) Limitations on Interbank Liabilities ( Reg F ) International Banking Operations ( Reg K ) Consumer Leasing ( Reg M ) Loans to Insiders ( Reg O ) Privacy of Consumer Financial Information ( Reg P ) Prohibition Against the Paying of Interest on Demand Deposits ( Reg Q ) Credit by Brokers and Dealers ( Reg T ) Credit by Banks and Persons Other Than Brokers or Dealers for the Purpose of Purchasing or Carrying Margin Stock ( Reg U ) Transactions Between Member Banks and Their Affiliates ( Reg W ) Borrowers of Securities Credit ( Reg X ) Truth in Lending ( Reg Z ) Unfair or Deceptive Acts or Practices ( Reg AA ) Community Reinvestment ( Reg BB ) Availability of Funds and Collection of Checks ( Reg CC ) Truth in Savings ( Reg DD ) Types of bank charter Credit union Federal savings association Federal savings bank National bank State bank State authorities California Colorado Florida Illinois Maryland Michigan New Jersey New York Ohio Oklahoma Oregon Pennsylvania Tennessee Virginia Terms Call report CAEL Rating CAMELS rating system Thrift Financial Report Other topics Banking in the United States Fair debt collection History of central banking in the United States Wildcat banking Category Portal Woodrow Wilson 28th President of the United States ( 1913 -- 1921 ) 34th Governor of New Jersey ( 1911 -- 1913 ) 13th President of Princeton University ( 1902 -- 1910 ) Presidency 1913 inauguration Suffrage Parade 1917 inauguration The New Freedom Clayton Antitrust Act Farm Loan Act Federal Employees ' Compensation Act Federal Reserve System Federal Reserve Act Federal Income Tax amendment Federal Trade Commission Act Federal Trade Commission Revenue Act of 1913 Flag Day National Advisory Committee for Aeronautics Occupation of Haiti Bryan -- Chamorro Treaty Philippine Autonomy Act World War I entry campaigns home front Committee on Public Information Espionage Act of 1917 Selective Service Act of 1917 Four Minute Men Sedition Act of 1918 National War Labor Board The Inquiry American Commission to Negotiate Peace Paris Peace Conference, 1919 Treaty of Versailles The Big Four Fourteen Points League of Nations charter 1919 Nobel Peace Prize Wilsonian Armenia Silent Sentinels Women 's Suffrage amendment Roosevelt desk Judicial appointments Supreme Court Cabinet State of the Union Address 1913 1914 1915 1916 1917 1918 1920 Life Birthplace and Presidential Library papers and manuscripts Boyhood home in Georgia Boyhood home in South Carolina Princeton University president Summer White House ( Harlakenden Shadow Lawn ) Woodrow Wilson House Gravesite Books Congressional Government When a Man Comes to Himself The New Freedom ( 1913 ) Elections New Jersey gubernatorial election, 1910 1912 Democratic National Convention 1912 U.S. presidential election 1916 Democratic National Convention 1916 U.S. presidential election Legacy Wilsonianism Woodrow Wilson Foundation Woodrow Wilson International Center for Scholars Woodrow Wilson School of Public and International Affairs Celestial Sphere Woodrow Wilson Memorial Woodrow Wilson Bridge Woodrow Wilson National Fellowship Foundation U.S. Postage stamps U.S. Currency Popular culture Wilson ( 1944 film ) Profiles in Courage ( 1965 series ) Wilson ( 2013 book ) Woodrow Wilson and the Birth of the American Century ( 2002 documentary ) Family Joseph Ruggles Wilson ( father ) Jessie Janet Woodrow ( mother ) Ellen Axson Wilson ( wife, 1885 -- 1914 ; 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Question: what law was passed by congress to prevent financial panics apex
Answer: the Federal Reserve act of 1913