Final answer:
The 1907 financial event that spurred the creation of a central banking system was a Panic, specifically the Panic of 1907 or the Bankers' Panic. This event highlighted the need for a central bank to stabilize the economy, leading to the establishment of the Federal Reserve System in 1913.
Step-by-step explanation:
One spur to create a central banking system was the 1907 financial event known for causing an overpowering fear, which is best characterized as a Panic. Specifically, this was the Panic of 1907, also referred to as the Bankers' Panic. This financial crisis arose due to a multitude of investors trying to withdraw their money simultaneously, sparked by concerns over the solvency of their investments. This led to a severe liquidity crisis that crippled many banks and threatened the stability of the U.S. economy.
In response to this and other financial panics, including the Panics of 1819 and 1873, Congress enacted the Federal Reserve Act in 1913. The legislation established the Federal Reserve System as the central bank of the United States, with the primary goals of promoting maximum employment, stable prices, and moderate long-term interest rates, thereby enhancing financial stability.