008 - Chapter 5 - Inflation and Contraction

In 1908, Congress created the National Monetary Commission to tackle the volatile cycles of financial booms and busts that plagued the nation. Under the leadership of Senator Nelson Aldrich (Republican-RI), this secretive commission, comprised of influential bankers, devised what would be known as The Aldrich Plan. This contentious proposal sought to establish a central bank capable of lending to distressed banks, issuing currency, and acting as the U.S. governments fiscal agent. Critics raised alarms about the potential for excessive power to shift to Wall Street financiers, leaving the government with diminished control over the nations money supply. This compelling 1912 book uncovers the dangers and alleged deceptions surrounding The Aldrich Plan during its congressional debates. Although the plan was ultimately rejected, it set the stage for the Federal Reserve Act of 1913. - Summary by TriciaG