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History of Banking in the USA

By MasonV
  • Period: to

    Disagreement

    The US has no reliable medium of exchange. Federalists and antifederalists disagree about the banking system.

  • A New Secretary

    President Washington appointed Alexander Hamilton as secretary of the treasury, Hamilton proposed a national bank.

  • First Bank

    First Bank of the US is established.

  • Death By Duel

    Alexander Hamilton dies in a duel with the vice president.
  • Period: to

    Instability

    A period of instability follows expirations of the First Bank's charter.

  • Second Bank

    Second Bank of the US establishes stability.

  • National Bank

    Supreme Court rules a national bank constitutional.
  • Period: to

    Free Banking begins

    President Jackson vetoes recharter of second bank in 1832, giving rise to the free banking era.

  • 8,000 banks

    An estimated 8000 banks were circulating currency.

  • Civil War

    Civil war erupts, first paper money since the continental.
  • Period: to

    Need for a monetary system

    The Civil War makes clear the need for a better monetary system.
  • Period: to

    Uniform national currency

    National Banking Acts of 1863 and 1864 establish national banking system and uniform national currency.
  • Period: to

    Gold Standard

    Nation adopts a gold standard.

  • Panic of 1907

    Panic of 1907 leads to creation of the federal reserve system.

  • Federal Reserve Act

    President Wilson signs the Federal Reserve Act.
  • Period: to

    Loans

    Banks loan large sums of money to high-risk businesses.

  • Great Depression

    The Great Depression begins.

  • Bank Holiday

    March 5th is declared a national bank holiday.
  • Period: to

    Government Regulation

    Period of government regulation and long term stability.
  • Period: to

    New Laws

    New laws make clear the rights and responsibilities of banks and consumers.
  • Period: to

    Deregulation

    Period of deregulation, s&l face bankruptcies, interest rates skyrocket.

  • congress passed the financial institutions reform

    congress passed the financial institutions reform, recovery, and enforcement act.
  • Period: to

    Bank mergers

    growing trends toward bank mergers.

  • "Stable and Healthy"

    banking system emerges "stable and healthy"