It’s very simple.
The actual statements from Wilson, reflected his distrust of “a few men” if the “great wealth” that they had and that they could personally direct was in “private” hands.
He was apparently, as history shows, unopposed to circumstances, even “the wealth of the nation”, in the hands of “a few men”, if those men were government dictators appointed to serve and once appointed accountable to no one.
When fiat money did not reign, private bankers could not use a central bank’s cheap money to inflate their own ability to lend. When fiat money did not reign, private bankers took fewer stupid risks, because of the greater chance that they were risking the banks and their own capital.
What Wilson hated was that someone besides him had more to say about where “the nation’s wealth” (individual’s private wealth stored in private banks) ought be spent; someone besides him had more influence in the economy. He changed that - sort of - when he signed the law that established the Federal Reserve.
Read the wiki article on the crisis that started the political panic that led to creation of the Federal Reserve.
http://en.wikipedia.org/wiki/Panic_of_1907
You will notice types of unregulated activity in STOCK MARKET types of operations that (a)were shady, (b)needed some regulation and (c) could have been regulated without creating the Federal Reserve.
You will also notice that the “panic” over the situation was resolved by private banking activity, largely by the bank of J.P, Morgan, without any laws needed for that action and without, and before any Federal Reserve legislation.
Recall also, with the easy credit stimulated BY THE NEW FEDERAL RESERVE, the “roaring twenties” followed and instead of a minor and resolvable panic, or mere recession, the nation went into a depression.
Obviously, the cure for economic bubbles and their fall was not a cure; but the legislation did resolve Wilson’s complaint: that “private” hands had too much say in the economy.
All of Obama’s legislation has had the same affect. None of the targets are the targets the public sees. All of the targets are “the private hands” with too much say in some part of the economy - government can do better.
“When fiat money did not reign, private bankers could not use a central banks cheap money to inflate their own ability to lend.”
Hardly true. Banks didn’t need a central bank in order to inflate their ability to lend. The free banking era from the 1820s to the 1860s, the era of wildcat banking, was characterized by excessive lending and depreciating money.
“You will also notice that the panic over the situation was resolved by private banking activity, largely by the bank of J.P, Morgan, without any laws needed for that action and without, and before any Federal Reserve legislation.”
JP Morgan was the driving force behind the creation of the Fed, citing his experience during the panic of 1907.