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First Bank of the United States Established
The First Bank of the United States central bank chartered for a term of twenty years. The Bank was championed by Alexander Hamilton, who believed a central bank was necessary to stabilize and improve the nation's credit and to improve the handling of the financial business of the United States governemnt under their newly enacted Constitution. -
Second Bank of the United States Established
This was modeled on Alexander Hamilton's First Bank of the United States. It began its operations on this date in Philadelphia. It served as the Main Depository for Government Revenue, making it a highly profitable bank. -
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The Panic of 1907
The Panic of 1907 lasted for six weeks. It was a series of uns of banks in New York City and other American cities in October and early November of 1907. It was triggered by failed speculations that caused bankruptcy in two brokerage firms. The New York Stock Exchange dropped while everyone tried to get their money out of banks at the same time. This eventually led to the formation of the Federal Reserve. -
Federal Reserve Act Passed
The Federal Reserve Act was passed, creating the current Central banking system. It was based on the Aldrich plan, created by Rhode Island Senator, Nelson Aldrich. It gave bankers supreme authority over the economy, allowing them to create money out of nothing, make decisions without government approval, and control the amount of money in circulation -
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World War I
Originally called the World War or Great War, it involved all of the world's great powers. They were assembled in two opposing alliances; the Allies and the Central Powers. -
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The Federal Reserve Floods the Economy With Cash and Credit
From 1921 to 1929 the Federal Reserve increased money supply by $28 billion. This created a "boom" allowing more and more people to take out credit and loans and increased the population's pay. -
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Federal Reserve Decreases Money Supply by 33%
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"Black Thursday" Stock Market Crash
The most devastating stock market crash of all time. A ten year depression followed. 15 million people were unemployed. -
New York's Bank of the US Collapses
The largest bank failure in history -- had over $200 million in deposits -
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Stable Inflation and Low Interest Rates
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Finanacial Services Modernization Act Allows Banks to Grow Larger
Many economists and politicians have recognized that this legislation played a key part in the subprime mortgage crisis of 2007. It repealed part of the Glass-Steagall Act of 1933 and allowed investment banks, commercial banks, securities firms, and insurance companies to merge.
