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Two Views of Banking
The Federalists wanted a centralized baking system but the Antifederalists wanted a decentralized banking system but both sides agreed that the United States needed to increase trade with other countries in order to increase the economy. -
The First Bank
The first bank was established in Philadelphia in 1791 because the government had a debt from the Revolutionary War. -
Chaos in American Banking
Once the bank's charter expired the banks began issuing banknotes that could not back with specie, or gold and silver coins and this led to a rapid rise in prices. -
Second Bank of the United States
In 1816 President Madison signed a bill to establish the nation's 2nd national bank. -
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Free Banking Era
This event is important to understand because the number of state-chartered banks tripled which lead to things like fraud and multiple currencies. -
Currency in the North and South
This event to understand because the Confederacy issued their own currency hoping that a win over the north would ensure the currencies value but the Confederacys economy suffered due to the war which led to the currency being worthless. -
Unifying American Banks
This event is important to know because it was an effort by the government to restore confidence in paper currency through reforms like issuing a single national currency. -
The Gold Standard
This event is important to understand because it installed an essential requirement of a banking system that is a stable currency that inspires the confidence of the public. -
Federal Reserve System
This event is important because it established the federal reserve system and the first true bank that led to other banks. -
Banking and the Great Depression
This event is important to understand so that it doesn't happen again we could do this by learning from the mistakes like loaning large sums of money in high-risk situations. -
Banking Refrorms
This event is important to know because the FDIC act restored trust in the banks by covering losses up to 2,500 at the time. -
The Saving and Loans Crisis
This event is important to understand because we need to learn from the mistakes made so it doesn't happen again and we need to understand the FIRREA act. The mistakes made in this event include high-interest rates, bad loans, and fraud. -
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Recent Trends
Recent trends are important to know so that we can stay educated on our economy. An example of a recent event is the repeal of the 1933 Glass-Stegall Act, this appeal paved the way for privacy rules and customer data for banks when selling financial assets.