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National Bank Act
free-banking legislation in many states. -
Period: to
The National Banking System
The establishment of a national banking system in the U.S. grew out of the government’s need to raise money during the Civil War: nationally chartered banks could be required to invest their capital in government bonds, providing a market for the bonds the government was trying to sell to raise money for the war effort -
Tax
2% tax on state bank Notes -
tax increase
2% increased to 10% -
Banks dwindle
State banks became rarer and rarer -
Coinage Act
Office of the Comptroller of the Currency reviewed the coinage and mint laws, it recommended dropping the silver dollar from the coinage. This essentially meant declaring that silver was no longer usable as money -
Bank Size
Banks were much smaller than 50,000 -
The Panic
This panic revealed the weakness of the state banking system. Call money rateshit 125% -
Aldrich Vreeland Act
This act authorized groups of at least ten national banks with at least $5 million in capital to from national currency associations. -
Federal Reserve Act
The Federal Reserve Act provided for the creation of the a Federal Reserve Board in Washington, DC 5 presidential appointees serving staggered 10 year terms, PLUS the Secretary of the Treasury and the Comptroller of the Currency as ex officio members.In 1935 renamed the Board of Governors of the Federal Reserve. Secretary of the Treasury and the Comptroller’s participation was eliminated. -
Open Market Committee
The Fed Open Market Committee decides whether to buy or sell government bonds on the open market. This is an instrument for controlling the money supply