At the heart of these concerns was the banking system. The National Banking Acts of 1863 and 1864 had created a system of national banks that were authorized to issue currency and provide financing for the government and businesses. However, this system was seen as flawed, as it concentrated power in the hands of a few large banks and created an unstable and inelastic currency.
The creation of the Federal Reserve System provided a more stable and elastic currency, and helped to prevent the kind of credit panics that had been a feature of the pre-war period. jay bank 1923 free
The Jay Banking System of 1923 had a profound impact on the American economy. By separating commercial and investment banking, the Act helped to reduce the risk of bank failures and the kind of speculative activities that had contributed to the economic instability of the time. At the heart of these concerns was the banking system