Aldrich Plan

The Aldrich Plan was a proposal from 1905 aimed at reforming the U.S. banking system. It sought to create a central banking authority, called the Federal Reserve System, to provide stability and better control over the economy. The plan envisioned a network of regional banks supervised by a central Federal Reserve Board, which would manage the nation's money supply and serve as a lender of last resort during financial crises. This framework aimed to prevent bank failures, reduce financial panics, and promote a more flexible and resilient banking system.