What was the Federal Reserve Act?

The Federal Reserve Act was a law passed in 1914.  It
created the Federal Reserve system that continues to exist and be very influential to
this day.

Economically speaking, it is very important for
all countries to have what are called central banks.  Central banks are banks that
control the money supply for a country as a whole.  This is very important because the
supply of money has a great deal to do with the economic health of a country.  In 1913,
the US had been without a central bank for nearly 80 years, since Andrew Jackson had
destroyed the Second Bank of the US.

By the early 1910s,
there was a great deal of sentiment for the creation of a central bank.  It was felt
that the US economy could not be stable and modern without one.  For this reason, this
act was passed and the Federal Reserve was created.