As after tracking down the American history, we have come to know that the democrats took charge of the white house and Woodrow Wilson became the president, the current issue of the country was the financial crisis through which the country had passed lately. Nelson Aldrich came forward after studying the financial and banking systems of other developed countries of the world and brought up the idea of creating a decentralized flexible banking system that is always rich with the flexible currency to provide aid to the countrymen at the time of need.
This idea did not prosper in the congress because of the change that took place in the government but the problem remained a great setback for the country and had to be sorted out in any case. That’s why; Woodrow Wilson took the charge of the trouble and tried to seek a way out of it. He suggested that the regional Federal Reserve banks must be controlled by a central federal reserve bank by comprising a board which would be appointed by the president after taking suggestions and consent from the senate.
This plan was opposed by William Jennings Bryan and his disciples also commonly referred as the bryanites. Wilson, being the most accomplished and sensible of the American Presidents in the history of America, came up with such a compromising plan that satisfied both the bryanites and the bankers as well. The Federal Reserve currency became the liabilities of the government, the system was decentralized into 12 districts. This change and the decentralization brought a sudden alteration in the repute of the New York City’s Wall Street which used to have a great influence before that. The Wall Street thus got weakened and this provided a great satisfaction to the bryanites. It took a chain of debates and a lot of amendments for the Federal Reserve act to come up on the surface and become the standard system of economical setup of the country. After all those debates and amendments, the Federal Reserve act was passed by the congress. It was also called as Glass-Owen Act by the people at that time. The Federal Reserve act was signed by Woodrow Wilson into law on the 23rd of the December in 1913. From then on, the system of central banking finally got introduced into America which helped in the strengthening of the economical situation of the country. The idea that was originally brought into America by Nelson Aldrich reached up to the level of being a part of the country law. It acted for the country to provide economic back and to prevent the country from sudden economical downfall or crisis that might try to find its way to weaken America economically by any chance. After the outbreak of World War I, it played a great role in issuing the war bonds and to provide aid to the country to meet the needs related to the ongoing situation of the country. The system was fully partial and clear.