National Monetary Commission

They were stunned to discover how much more efficient the European financial system appeared to be and how much more important than the dollar were the pound, the franc and the mark in international trade.

A common way to mitigate these "bank runs" was to suspend cash payments during crises, either by imposing a maximum daily withdrawal or complete suspension.

In the Southeast and Midwest, the resulting shortage of cash was so serious that local clearinghouses issued emergency notes against collateral pledged by cooperating banks so that people could carry on business.

Suspending cash payments and issuing clearinghouse certificates were better than allowing a panic to continue, but the public wanted a reform that would prevent suspensions altogether.

It failed to get strong public support partly because of its apparent resemblance to a central bank and of popular suspicion of its main author, Senator Nelson Aldrich.

The Eccles Building in Washington, D.C. , which serves as the Federal Reserve System's headquarters.