Why dld the U.S. banking system need to be reformed in the early 1900s?
It was seen as unstable
Around 1900, Populists contested the Gold Standard which they denounced as being unfair and favored a return of the greenback system, since they loathed the Gold Standard(which became the only legal tender in 1900 with the Gold Standard Act) and challenged the banking power.
In 1907 a huge banking crisis occurred and justified the creation of a commission appointed by President Roosevelt, it led to the creation of the Federal Reserve which gave a monopoly to private banks on the issuance of the money supply. The Federal Reserve is often criticized because of the huge power it granted to banking oligarchs. The various financial and economic crises that occurred after its creation (1929, 1973 and 2008).