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The First National Bank of America/ after American revolution
After President tWashington appointed Hamilton secretary of the treasury in 1789, Hamilton proposed national back, a bank chartered or licensed by the federal government, the bank would have the power to issue a national currency, manage the federal government's funds. In this system, the states would establish and regulate all banks within their borders. In 1792, Congress set up the Bank of the United States, granting it a 20 years charter to operate. -
The Second Bank of the United States
To eliminate the financial chase, Congress chartered the Second Bank of the United States in 1816. Also a 20-year charter. Nicholas Biddle who became president of the Second Bank in 1823. -
The Free Banking Era
The period between 1837- 1863 is known as the free banking or "Wildcat" Era. In this period, the number of state-chartered banks nearly tripled. -
Stability in the later 1800s
By 1860, an estimated 8,000 different banks were circulating currency. To add to the confusion, the federal government played no role in providing paper currency or regulating reserves of gold or silver. -
Period: to
Unifying American Banks
With war raging, the federal government enacted reforms aimed ar restoring confidence in paper currency. The new national currency led to the elimination of the many different state currencies in use and helped stabilize the country's money supply. -
The Gold Standard
The nation adopted a gold standard-a monetary system in which paper money and coins had the value of certain amounts of gold. The gold value of retain amounts of gold. The Gold standard set a definite value for the dollar. -
The federal Reserve system
The federal reserve system as the nation's first central bank, or bank that can lend to other banks in time of need. / Federal reserve banks, Federal reserve board, Short-term loans, federal reserve notes. -
Banking and the great depression
last more than a decade. Banks loaned large sums of money to many high rest businesses. Many of these businesses were unable to pay back their loans. Because of hard times on the nation's farms, many farmers also failed t prepay bank loans. -
The savings and Loan Crisis
Congress passed laws to deregulate, or remove some restrictions on, several industries. Unfortunately, this deregulation contributed to a crisis in a class of banks known as savings and Loans. -
Financial "Meltdown" and Bailout
US banks decided to issue "subprime" loans to people seeking t purchase homes. Banks began to market these loans aggressively among people who did not qualify for standard loans. The situation reached a crisis point when many homeowners had trouble repaying their loans.
