Friday, March 22, 2013
July, 1890 – SHERMAN ANTITRUST ACT BECOMES LAW
1890 – SHERMAN ANTITRUST ACT BECOMES LAW
The Sherman Act was an attempt to prevent unlawful restraint of trade and commerce and prevent monopolies – including banking monopolies. The Act was more aggressively enforced under President Teddy Roosevelt, including against the corporate practices of JP Morgan, the most powerful banker, if not corporate titan, of the day. In response to this increased enforcement of the Sherman Act and the Hepburn Act, Morgan created a financial panic by having his banks and those he controlled call in loans and refuse to grant new ones. The economic crash of 1907 followed. The “Panic of 1907” was a direct cause for the creation of the Federal Reserve System several years later.