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Spanish Real becomes most common form of currency
The Spanish Real became the most common and trusted form of currency as they were very trusted and valuable. -
Massachusetts prints first paper currency in North America
Massachusets prints the first paper money in North America. They use British shilings that were needed to pay for a military action against Canada that costed $7,000. -
Bank of England Established
The United Kingdom establishes their first National Bank as a model for modern banks. -
United States prints its own fiat currency
The Colonial states print their own fiat currency allongside Britain. -
First National Bank
The first National Bank is formed in Philidelphia. It had eight branches and forced states and companies to adopt bank notes instead of using the regional currency. -
Mint Act of 1792
Authorized the creation of $10, $5, $2.5, $1, $0.50, $0.25, $0.10 and $0.05 coins as well 1 and 2 cent copper coins. -
Charter of Second National Bank
Congress charters the second natioanl bank five years after the first one closed. This bank is under Nicholas Biddle's control. He strickly regulates banks' credit and the money supply of other banks. -
Andrew Jackson Vetos Bank
Andrew Jackson vetoes the chartering of the second national bank. -
Manufacturing Boom
A boom in manufacturing was caused by the highly profitable 2nd national bank. -
President Jackson's Executive Order
President Andrew Jackson issues an executive order to stop all government funds from being deposited into banks. -
Terrible Depression
343 of the 850 banks fail as the largest ones gain power and wealth. -
National Banking Act
Inflation was rampant during this time as well as counterfeiting. This act established the Office of the Comptroller to regulate the amount of money produced in an effort to stop or slow the inflation. -
Secret Service Established
The Secret Service is established to crack down on counterfeiting in the U.S. -
U.S. Bureau of Engraving and Printing
The Bureau of Engraving and Printing to mint new kinds of currency and to mass produce it. -
Federal Reserve Act of 1913
The Federal Reserve Act created the Federal Reserve to allow the government to influence the market in case the banks began to fail. -
Great Depression Begins
The Great Depression begins after a massive stock market bubble explodes. This causes more than 10,000 of the 24,000 banks in the United States to fail. Many people went on bank runs (taking all of your money out of the bank) to secure their finances. This effects the entire world, crashing German, British and French economies as well as many others. This lasts until 1939. -
Emergency Bank Act (Glass-Steagall Act) of 1933
The Glass-Steagall Act of 1933 reformed the nation's banking system. It separated commercial banking from investment banking and required bank holding companies to be examined by the federal government. This is done immediately after President Roosevelt declares a bank holiday where all banks closed to calm the masses during the Great Depression. -
World War II begins
With the begining of World War 2, millions of manufacturing jobs are created while the men go off to war. -
Marquette vs. First of Omaha
The Supreme Court allowed banks to disregard the usury laws of their home state and starts a competitive wave of deregulation, causing the complete elimination of usury rate cielings in South Dakota, Delaware and many others. -
Deregulation and Monetary Control Act
This act eliminates interest ceilings, increases deposit insurance and authorized the ability to thrift institutions, This causes banks to be freed of government regulations and make the customers pay whatever price the banks says and get as low a return as the banks says. Just before this, Inflation had forced changes to be made in the limit of interest banks could pay. -
Riegle-Neal Interstate Banking and Branching Efficiency Act
This bill eliminated any regulation or restriction on interstate banking and branching. It passed easily with bipartisan support.
