Which event followed the 1907 U.S. financial panic and helped lead to the Federal Reserve’s creation?

The Aldrich–Vreeland Act followed the 1907 U.S. financial panic and helped lead to the Federal Reserve’s creation.

The panic began after an attempt to corner the stock of United Copper Company failed. Depositors then withdrew money from institutions linked to the speculators, and fear spread through banks and trust companies. J. P. Morgan helped organize emergency support for the financial system.

Congress responded with the Aldrich–Vreeland Act of 1908. It created the National Monetary Commission and authorized emergency currency that could expand when financial stress threatened the banking system.

The commission studied central banking arrangements in Europe. Its work influenced the Federal Reserve Act of 1913, which established the Federal Reserve System. The Aldrich–Vreeland Act itself therefore was not the Federal Reserve Act, a distinction that is frequently blurred in summaries of the panic.