Federal Reserve System created

Senator Nelson Aldrich, head of the bipartisan National Monetary Commission, led efforts to reform the U.S. monetary system by studying both domestic and European central banking models. In 1910, Aldrich and top New York bankers drafted the "Aldrich Plan," which proposed a central bank with regional branches and an elastic currency backed by gold and commercial paper. While Aldrich initially sought a politically independent central bank, he was persuaded to include public sector representation to make the plan more viable. However, his close ties to elite bankers fueled opposition, particularly from rural and progressive factions who saw the plan as favoring Wall Street.