Charles Eliot is credited with reforming the educational system at Harvard University. Eliot was a Harvard alumnus and was president of the college. The reforms he implemented at Harvard had a profound effect on all educational institutions thereafter. His insistence on educational reforms is guided by his experience and the situation surrounding him at the time. His interest in bringing about change in the education system in the United States came to fruition during his trip to Europe. Eliot argued that education was not simply for personal improvement, but he realized that education and economic development went hand in hand. During this time, the United States was rapidly transitioning from an agricultural society to an industrialized society. The nature of business at this time was the burgeoning railroad industry, fueled primarily by the vast migration of people westward. Railroads became a profitable industry; and the bank took this opportunity and made significant loans to aspiring businessmen, which led to its eventual downfall during the Panic of 1857. The Panic of 1857 was caused by the decline of the international economy and the overexpansion of the domestic economy . This had both a financial and emotional impact on Eliot. Eliot believed that insufficient knowledge and a lack of standard education contributed to the economic recession of 1857. Most businesses failed during the panic because they were unable to make an informed decision. Higher education in the United States is of great concern right now. The colleges were mostly based on classical curricula that embraced religious education as a central theme. Universities continued to ignore the industrializing nation, offering few half-baked courses… to produce well-rounded students. Lectures and seminars are used in teaching. The college admissions requirement that takes into account the Standard Admission Test is also a change seen as a result of Harvard's reforms. The City College of New York also has numerous graduate programs in various disciplines. Charles Eliot had a profound effect on the education system in the United States. His educational reform not only changed college, but had an equal impact on secondary schools across the United States. Without Eliot's educational reforms it is difficult to imagine the United States as it is today. His contribution is not measurable, but it is worth praising. Not only did he find a meaningful way to use individual knowledge for the betterment of society, but in doing so he made the United States the premier location for world-class education..