The fractional banking system began long before the federal reserve, but it wasn't until The Federal Reserve Act of 1913 that it became absolute. We were warned many times throughout history to never let this happen, but it seems it only takes one or two generations to forget to heed these warnings.

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

~ Thomas Jefferson