Sorry, have to disagree on the clearinghouses doing a better job in 1907. The clearinghouses were done, finished, out-of-cash. That's when J.P. Morgan was called. It was Morgan's own reserves (and others like Rockefeller) that were used to backstop the failing trusts. Even these guys were running out of cash. The last gasp measure that saved the day was a Newspaper/Clergy campaign to reach the citizenry and instill some confidence. The campaign worked. Otherwise, the runs would have continued. Again, the clearinghouses were cooked before the Panic was quelled.
I'm not arguing that the Fed did even a good job in 1929-33. But, outside of the bank runs during both panics, the comparison is not valid. 1907 was a panic resulting from an attempt to corner the copper market. Great Depression was a global debt-deflation.
Your argument is with Milton Friedman, not me. I was just pointing out what he said. I’m still reading to see if I can decide who I agree with.
But thanks for the info. It helps to have another perspective.