National Monetary Commission
Encyclopedia
National Monetary Commission was a study group created by the Aldrich Vreeland Act of 1908. After the Panic of 1907
American bankers turned to Europe for ideas on how to operate a central bank. Senator Nelson Aldrich, Republican leader of the Senate, personally led a team of experts to major European capitals. They were stunned to discover how much more efficient the Europeans were. Furthermore the pound, franc and mark were much more important in international trade than the dollar.
The Commission issued 30 reports (1909-1912) that provided a detailed and authoritative survey of banking systems of the late 19th and early 20th centuries. They examine such topics as U.S. financial laws; U.S. state banking statutes; Canadian banking history; and the banking and currency systems of England, France, Germany, Switzerland, Italy, Belgium, Mexico, Russia, and other nations. The volumes contain essays commissioned from leading specialists, plus innumerable tables, charts, graphs, and facsimiles of forms and documents. Some volumes contain transcripts of relevant speeches, interviews, and hearings. Mitchell [1911] provides a comprehensive review of the documents prepared by the commission. All of the reports were published by the U.S. Government Printing Office between 1909 and 1911.
The Commission's reports became the basis for the Federal Reserve Act
of 1913 creating the modern Federal Reserve system.
Panic of 1907
The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis that occurred in the United States when the New York Stock Exchange fell almost 50% from its peak the previous year. Panic occurred, as this was during a time of economic recession, and there were numerous runs on...
American bankers turned to Europe for ideas on how to operate a central bank. Senator Nelson Aldrich, Republican leader of the Senate, personally led a team of experts to major European capitals. They were stunned to discover how much more efficient the Europeans were. Furthermore the pound, franc and mark were much more important in international trade than the dollar.
The Commission issued 30 reports (1909-1912) that provided a detailed and authoritative survey of banking systems of the late 19th and early 20th centuries. They examine such topics as U.S. financial laws; U.S. state banking statutes; Canadian banking history; and the banking and currency systems of England, France, Germany, Switzerland, Italy, Belgium, Mexico, Russia, and other nations. The volumes contain essays commissioned from leading specialists, plus innumerable tables, charts, graphs, and facsimiles of forms and documents. Some volumes contain transcripts of relevant speeches, interviews, and hearings. Mitchell [1911] provides a comprehensive review of the documents prepared by the commission. All of the reports were published by the U.S. Government Printing Office between 1909 and 1911.
The Commission's reports became the basis for the Federal Reserve Act
Federal Reserve Act
The Federal Reserve Act is an Act of Congress that created and set up the Federal Reserve System, the central banking system of the United States of America, and granted it the legal authority to issue Federal Reserve Notes and Federal Reserve Bank Notes as legal tender...
of 1913 creating the modern Federal Reserve system.