The Fed was created to stop all of the bank crisis. When a bank ran out of money the whole economy would go crazy and freak out. In order to stop the problems a group of bankers came together in order to create a plan. Their plan consisted of the development of a central bank that the government controlled. This bank would supply all the other banks with loan to stop the bank from running out of money.
If my bank ran out of money, I would go crazy and freak out too. I gave them my money and they wasted it.