1. The Federal Reserve and the 1920s
Improving the economy and American society
The Federal Reserve and the 1920s

2. The Federal Reserve and the 1920s
President Wilson won the election of 1912 and 1916
One of his main goals was to reform the U.S. financially

3. The Federal Reserve and the 1920s
Two major financial reforms were accomplished:
1. Underwood Tariff Act
2. Federal Reserve System

4. The Federal Reserve and the 1920s
Created in 1913, it helped to bring stability to the economy
It is the national banking system we use today

5. The Federal Reserve and the 1920s
It is divided into 12 districts each with a federal reserve bank

6. The Federal Reserve and the 1920s
What could it do?
1. Issue a new currency
2. Control amount of money in America
3. Shift money from one bank to another

7. The Federal Reserve and the 1920s
At the beginning of the 1920s:
America won WWI
America saw the end of the Progressive Era

8. The Federal Reserve and the 1920s
1920 saw the election of Warren G. Harding and a want to return to “Normalcy” and isolationism
Red Scare: A crusade against internal enemies (Communists and Immigrants)

9. The Federal Reserve and the 1920s
The 1920s was a time of booming business
Wages increased, unemployment fell, and civil rights improved

10. The Federal Reserve and the 1920s
Technology improved, there were new consumer products, and people moved to the suburbs due to the automobile
Suburbanization

11. The Federal Reserve and the 1920s
People having extra money resulted in them investing it in the stock market
Profits rolled in for a while…