The Federal Reserve prevented the United States from sinking and having bank runs like those of the 1930s during the Great Depression. During the 1930s, over 9,000 banks failed, causing serious damage to the U.S. economy. The 1930s were a difficult time that the United States would never want to experience again. President Woodrow Wilson signed the Federal Reserve Act of 1913 which helped during the Great Depression, but not as much as it could have. Since then the Federal Reserve has changed and does much more than before. The Federal Reserve issues currency, sets reserve requirements, lends money to banks, collects checks, acts as the fiscal agent for the United States, supervises banks, and controls the money supply. The Federal Reserve Act was signed by President Woodrow Wilson on December 23, 1913 Although the idea of ​​a central bank was mentioned by Alexander Hamilton in 1789 while ratifying the United States Constitution; but it was denied because the constitution did not vest that power in the government. Before the creation of the Federal Reserve Bank, there were two banks that served as the central bank for the United States. The first bank opened in 1791 and failed in 1811 because Congress would not renew the contract. The Second Bank of the United States was founded in 1816 under President Jackson but failed in 1836. The Federal Reserve was founded in the United States at a time when the nation was in a deep financial crisis. During these final crises the American people ran to their banks and withdrew their deposits causing bank failures; this was called panic. This would cause an effect called the domino effect where customers would run to the banks withdrawing their money causing the banks to fail because the banks did not have enough...half of paper......they were failing causing many failures negatively impacting the economy. The Fed had to intervene to stop the increase in bankruptcies and recession, so it declared to lower the discount rate to help the banks and the American people and force the government to spend money and sell securities. The Federal Reserve reduced unemployment, helped the economy grow, pulled the United States out of recession, and that still happens today. The Federal Reserve system has helped the United States in many ways, but the main one is to keep the United States economically healthy. The Federal Reserve likes to supervise banks, make money and control it. Change monetary policies and try to keep the United States in good shape with economic growth and low unemployment. Without the Fed. The United States would not have been the great country today with a large economy that is not perfect but stable.