nd each of whom were owned by member banks in its district. Also, all of the national banks automatically were members while state banks could join if they wished. However, any bank that joined was required to donate six percent of its capital to the Federal Reserve. This system is the basis for the system of today. The Federal Reserve Act basically recognized the need for an acting body to monitor and evaluate the money supply in the United States. The Federal Reserve Act set the way for a board of directors and a way of changing the money supply, through interest rates to the member banks. This legislation was pushed for heavily by Wilson. He wanted to regulate the country's' money supply, but he also wanted a more flexible and decentralized system that could expand or contract based on the countries fluctuating economic and financial needs. This was the first banking and economic reform since the Civil War and it was quite necessary because the big New York banks controlled everything, which the Populists had pointed out earlier. Never the less, the Federal Reserve Act paved the way for the system of today and has led the country on the correct economic path due to the money supply regulation.The last federal regulation that is prevalent is the Hepburn Act. The Hepburn Act which was enacted in 1906 set a precedent for the power of the federal government. The Hepburn Act set a maximum price for the freight rates on the railroads. It also extended the reach of the Interstate Commerce Commission to regulation of pipelines, freight companies, sleeping-car companies, bridges and ferries. As well, the Hepburn Act did not make the ICC go to the court to enforce its regulation decisions. This act was passed mainly under the dedication of President Roosevelt. After 1905, he dedicated his efforts to the greater regulation of and control over the big businesses. His regulations over them angered his corporate sponsors. But that really did not...
