<P> William Jennings Bryan , now Secretary of State , long - time enemy of Wall Street and still a power in the Democratic party , threatened to destroy the bill . Wilson masterfully came up with a compromise plan that pleased bankers and Bryan alike . The Bryanites were happy that Federal Reserve currency became liabilities of the government rather than of private banks -- a symbolic change -- and by provisions for federal loans to farmers . The Bryanite demand to prohibit interlocking directorates did not pass . Wilson convinced the anti-bank Congressmen that because Federal Reserve notes were obligations of the government , the plan fit their demands . Wilson assured southerners and westerners that the system was decentralized into 12 districts , and thus would weaken New York City 's Wall Street influence and strengthen the hinterlands . After much debate and many amendments Congress passed the Federal Reserve Act or Glass -- Owen Act , as it was sometimes called at the time , in late 1913 . President Wilson signed the Act into law on December 23 , 1913 . </P>
<P> William Jennings Bryan , now Secretary of State , long - time enemy of Wall Street and still a power in the Democratic party , threatened to destroy the bill . Wilson masterfully came up with a compromise plan that pleased bankers and Bryan alike . The Bryanites were happy that Federal Reserve currency became liabilities of the government rather than of private banks -- a symbolic change -- and by provisions for federal loans to farmers . The Bryanite demand to prohibit interlocking directorates did not pass . Wilson convinced the anti-bank Congressmen that because Federal Reserve notes were obligations of the government , the plan fit their demands . Wilson assured southerners and westerners that the system was decentralized into 12 districts , and thus would weaken New York City 's Wall Street influence and strengthen the hinterlands . After much debate and many amendments Congress passed the Federal Reserve Act or Glass -- Owen Act , as it was sometimes called at the time , in late 1913 . President Wilson signed the Act into law on December 23 , 1913 . </P>
after several attempts at forming a central bank the us created the fed in what year
after several attempts at forming a central bank the us created the fed in what year
December 23 , 1913
December 23 , 1913