The 1907 U.S. crisis was the Panic of 1907, which prompted stronger efforts to create a central bank.
The panic followed a failed attempt to corner the stock of United Copper Company. The failure damaged confidence in the Knickerbocker Trust Company, which experienced a run in October 1907. Depositors then withdrew funds from other trust companies and banks, while stock prices fell and credit became scarce. Unlike modern crises, the United States had no central bank to supply emergency liquidity.
Financier J. P. Morgan helped coordinate a private rescue by persuading banks and wealthy investors to provide funds and by supporting threatened institutions. The episode convinced many policymakers that the financial system needed a more permanent lender of last resort. The Aldrich–Vreeland Act of 1908 created temporary emergency currency arrangements, and the Federal Reserve Act followed in 1913. The panic is sometimes confused with the 1893 crisis, but the 1907 episode was the immediate catalyst for the final movement toward the Federal Reserve.