The u. s. financial system encountered a number of “financial panics” before 1913 since there was not a to make loans to troubled commercial banks.

There was not a treasury department or a central bank. Basically, they needed a higher institution to get them out of problems if they ever got into one because the country didn't want to let banks go out of business. So eventually a treasury department would be created and the banks would be protected from failure because the state would help them stay in business.

It has the potential to lead to limits on rights by giving flexibility in making laws.