Upon assuming the presidency, Woodrow Wilson recognized a critical need to reform the American financial system. The structure in place at the time lacked central oversight and exhibited vulnerability to financial panics and instability. The absence of a flexible currency and the concentration of financial power in the hands of a few private institutions were primary causes for concern.
Addressing these deficiencies was seen as vital for promoting economic growth and stability. A modernized banking system was considered essential for providing credit to businesses and farmers, managing the money supply effectively, and preventing future financial crises. The perceived power of large financial institutions also raised concerns about potential abuses and the need for greater public control.