Final answer:
Federal regulation of railroads, trusts, and banks began with the Interstate Commerce Act of 1887 followed by the Sherman Antitrust Act of 1890, the Clayton Antitrust Act of 1914, and the creation of the Federal Reserve System in 1913 and its reform with the Banking Act of 1935. These laws aimed to protect consumers, stabilize the economy, and ensure fair competition in the marketplace.
Step-by-step explanation:
Federal Laws for Regulation of Railroads, Trusts, and Banks
The Interstate Commerce Act of 1887 initiated federal regulation of railroads by creating the Interstate Commerce Commission (ICC), which mandated standard and public rates and asserted that rates must be "reasonable and just." The Act sought to address unfair practices where railroads charged different rates to different customers and took advantage of small farmers. This was followed by the Sherman Antitrust Act of 1890, which targeted monopolies and trusts by making it illegal to restrict trade or attempt to monopolize. The Clayton Antitrust Act of 1914 provided further clarity on illegal business practices and excluded labor unions from being considered as trusts. The creation of the Federal Reserve in 1913 and the subsequent Banking Act of 1935 were key in stabilizing the banking system, giving the federal government a stronger role in overseeing and controlling financial practices. Other progressive reforms included the Meat Inspection Act and Pure Food and Drug Act, both ensuring consumer safety.
These laws represented a shift towards a larger role for the federal government in economic affairs, endorsing the notion that only the national government could effectively manage the complex social problems that arose from industrialization and monopolistic practices.