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THe nation has no reliable medium of exchange Federalists & anti-federalists disagree about a banking.
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Hamilton proposed a national bank.
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first bank of the U.S. is established.
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The bank lost it's main backer & it only functioned until 1811.
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Period of instability follows expiration of first bank's charter.
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Supreme court ruled a national bank constitution.
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The number of state charter banks tripled. In 1837 there was a panic with the banks because customers couldnt exchange their paper money into gold or silver.
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President Jackson vetoes recharter of second bank in 1832 giving rise to free banking era.
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8,000 different banks were circulatong currency.
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Civil war makes clear the need for a better monetary & banking system.
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National banking acts of 1863 &1864 establish national banking system & uniform national currency.
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the nation dropped a gold standard.
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Panic of 1907 leads to creation of the federal reserve system . Many banks had to stop exchanging gold for paper money.
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President Wilson signs the federal reserve act.
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banks loaned large sums of money to many high risk businesses.
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severe economy decline began. Stock market crashed. Great depression.
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President Roosevelt helps restore confidence in the nations bank by establishing the FDIC. Glass Stegal ect.
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Government & regulation & long term stability.
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New laws make clear the rights & responsibilities of banks & consumers.
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Deregulation, S&L 's face bankruptcies.
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Congress passed FRREA
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Congress repealed the Glass Stegal Act.
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bank emerges stable & healthy.
