Federal Reserve versus Independent Treasury: 1913 to 1920

In 1913, the Federal Reserve was created. When it was first created, they hoped to abolish the old system with its Independent Treasury and it subtreasuries, but they were unable to do so. In 1917, the Bureau of Efficiency was tasked with providing a report to Congress on whether the subtreasuries were still necessary in the new Federal Reserve banking system. They reported back that they were no longer necessary.

In May 1920, sometimes referred to as the Independent Treasury Act of 1920, the Federal Reserve Act was amended and it abolished the Independent Treasury with its subtreasuries. From that moment forward, the Federal Reserve Central Banking system was what the US banking system operated within.

#federalreserve #woodrowwilson #americanhistory #independenttreasury #bankinghistory #history