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American Revolution
To provide finacial support for the war, America's first paper money was printed. So much money was printed that it lead to inflation that quickly increasedc as the war continued on, and soon people lost faith in the money. -
Civil War
The National Banking Act was passed which allowed for nationally chartered banks. Their cirrculating monetary notes had to be backed by government securities. Taxes were created and this lead to an orderly currency for the U.S. Banks then began to grow and sweep the nation. -
World War I
At this time, twelve cities have determined the locations of their regional banks. Banks operated at a normal state because emergency currency was put into circulation due to the Aldrich-Vreenland Act of 1908. Reserve banks were able to discount bankers acceptances, which aided in the trade flow to Europe. -
World War II
During The Great Depression, laws changed and the Federal Open Market Committee was created. The members' terms lengths were created. When men returned home from war, the Employment Act added to the Fed's list of responsibility, and promised more employment. -
September 11, 2001
The Federal Reserve System continued to operate and the discount window was still available to provide liquidity. Interest rates were lowered and billions of dollars were loaned out to provide U.S. economy stability.
