Bill passed into law
May 1908. Created a scheme for preventing banking liquidity crises (such as the Crisis of 1907); also created a commission for
massive banking reform. The Aldrich-Vreeland Commission deliberated for three years before sending their plan to Congress.
In 1912, Republicans lost control of Congress and the White House. The Aldrich-Vreeland was modified by Sen.
Carter Glass (D-VA), then submitted it to Congress and passed December 1913. This created the Federal Reserve System.
Sen. Glass argued that the Federal Reserve Act of 1913 was totally different from the plan developed by the Republicans. Anna Schwartz and Milton Friedman, in *A Monetary History of the
United States, 1867-1960* (1963) explained it was pretty much the same. In any event, the Aldrich-Vreeland Act was one of the most important pieces of legislation ever passed in response to an economic crisis.
MARC: Wow! Glenn Beck says that Woodrow
Wilson was actually a crypto-communist.
BILL: Sorry, that's silly.
MARC: Well, didn't he create the Federal Reserve Bank? That's socialistic, isn't it.
BILL: Uh, it was designed during the Administration of William Howard Taft, Marc. Ever heard of the Aldrich–Vreeland Act?
MARC: President Taft? I had no idea he was a Communist too!