On 112 years ago today, December 23, 1913 (November 26, 1913 in the lunar calendar), the U.S. Congress passed the Federal Reserve Act to establish the Federal Reserve System. On December 23, 1913, the U.S. Congress passed the Federal Reserve Act, establishing the Federal Reserve system, dividing the United States into 12 Federal Reserve Regions. The Federal Reserve Bank was established in the central city of each region to exercise the functions of the central bank. In the following year,"Federal Reserve Bank Notes" were issued from each state, and the size of banknotes was determined to be 156 mm ×66.3 mm, which continues to this day. Less than three years after the Federal Reserve began operating in 1913, trade between the United States and countries in Europe, Latin America and the Far East began to be settled in dollars. This important role previously belonged to the pound. New York's financiers are simply overjoyed. Obviously, by then, the US dollar had replaced the British pound and became the most commonly used currency in the world. It was also at that time that the United States gained its new role as the "World Bank" and its temporary financial hegemony in the global landscape. Although the United States was not yet mature in handling international affairs at the time, these New York financiers created another "public welfare miracle"-a financial system that seemed to be able to prevent financial crises. Although the 1929 stock market crash disrupted the world's financial order, the phenomenon of economic collapse caused by the small financial crisis and bank panic began to fade, which seemed to highlight and confirm that Paul. Warberg (chief architect of the Federal Reserve Act) The fundamentals of central banking. The status of the United States has rapidly improved, and this "record" must be attributed to Warberg. In any case, strong U.S. and financial hegemony was formed with the improvement of the international status of the dollar. For Washington, the dollar serves as the "fuel" of the global financial system, allowing the U.S. government to sell U.S. Treasury bonds at lower interest rates, thereby reducing borrowing costs; allowing U.S. companies to acquire foreign companies at low prices; and U.S. citizens to enjoy cheap cars and low-cost home mortgages, as well as lower foreign travel costs. After the end of World War I, the US dollar surpassed the British pound and dominated the world. Loans provided by the Federal Reserve Bank of New York to the Allies during the war expanded the circulation of dollars in Europe. Many American financial institutions were not affected by the war and opened branches in Europe. At that time, the British economy was becoming increasingly unstable due to the excessive burden of war and the cost of maintaining imperial rule. Other potential competitors are frowning at the issue of internationalization of their currencies. Germany blocked the circulation of marks abroad, and Japanese officials took similar measures. As of 1928, major central banks around the world had nearly $600 million in dollar reserves, while all other countries had monetary reserves of $2.6 billion. When World War II ended, the United States accounted for about half of the world's industrial output and had a strong central bank. The United States is also extremely rich in natural resources, producing half of the world's coal and two-thirds of the world's oil. The dollar's status as the center of the world financial system was officially established in 1944 in Bretton Woods, New Hampshire. At that time, trade among countries nearly collapsed after the disastrous Great Depression, trade barriers, and currency controls. In July 1944, on the eve of victory in World War II, 730 representatives from 44 countries signed an agreement in the town of Bretton Woods, New Hampshire, hoping to create a system that would make it easier to invest capital across national borders. Two competing plans emerged during that meeting. One was the International Monetary Fund Agreement and the International Bank for Reconstruction and Development Agreement based on the White Plan proposed by Assistant Treasury Secretary White; The other is from the famous British economist John? Keynes. Keynes once proposed the establishment of a new world monetary system, issuing a new currency called Bancor, which would be used as international reserve funds to replenish gold reserves, which would allow "paper gold" to replace relatively scarce precious metals. However, at this time, the United States was already fully fledged. The United States 'gold reserves increased from US$14.51 billion in 1938 to US$20.08 billion in 1945. It has more than three-quarters of the world's gold reserves, laying the foundation for gaining a "permanent" hegemony. Capital foundation, so of course it has its own plans. Khalid, an official at the U.S. Treasury Department, The negotiating delegation led by Kuster reached a plan with representatives from other countries to directly link the US dollar to gold, while other countries 'currencies would be pegged to the US dollar through fixed exchange rates and could be exchanged for gold with the United States at the official price of US$35 per ounce. In this way, the world's newly rising supercurrency, the US dollar, was established through documents signed by major countries in the world. It was regarded as the world currency to measure other currencies. Its advantages were unparalleled, which was unprecedented in the history of world currencies in the 2500 years. The pegging of the US dollar to gold actually establishes the US dollar's status as a global currency in the global financial system, and the US dollar also represents the largest economy and the most purchasing power currency. Such a huge spoils were beyond the reach of the United States on the battlefields of the two world wars. It can be seen that after two world wars, the old empire represented by Keynes in terms of economic policy, the United Kingdom, and Khalid? The new hegemony represented by Kuster-the United States-is the result of the power competition in Bretton Woods Town for who should dominate the world economy. The U.S. economy has truly escaped the shadow of the Great Depression and achieved rapid development, mainly due to the two world wars, which dragged down European economic powers such as Britain, Germany and France. In the 20 years after the establishment of the Bretton Woods system, the operation of the dollar-centered world financial system seems to have been largely guaranteed. By the 1960s, central banks around the world had dollar reserves accounting for 60% of total reserves, and the dollar's share was nearly twice that of its competitor, the British pound; in the 1970s, nearly 85% of countries held dollar foreign exchange reserves.