The Fed was founded because in fly-over country the financial system was rickety. Off the coasts, banks were regularly going bust and taking people's savings wi

The Fed was founded because in fly-over country the financial system was rickety. Off the coasts, banks were regularly going bust and taking people's savings with them. This almost always happened during harvest season when demand for currency was high. In the urban centers the banking system was working fine. The problem to solve was a ridiculously inefficient and inept banking sector in large swathes of the country. As soon as the idea of some sort of federal level reform got going the House Of Morgan and friends seized control and the Fed became a tool of the major banks, which were already working fine, to increase their profits and control. Almost from the start it was the case the Federal Reserve Bank of New York really ran the system, which was entirely not the original idea. The idea of the Fed originated from a temporary problem unique to a particular period of American history, but was immediately usurped by clever power and money hungry people.