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Federalists Vs Anti Federalists
Over the course of years in the 1790s, the anti federalists supported a decentralized banking system. On the other hand, the federalists wanted and fought for centralized banks and systems. -
The First Bank of the United States
This bank was granted a twenty year license to operate. The purpose of this bank was to hold the taxes that were collected by the government. In a situation in which two banks pool their assets and liabilities to become one bank are called a bank mergers. -
The Second Bank of the United States
The Second Bank of the United State was to get rid of the financial chaos, Congress opened the second bank of the United States in 1816. Was a first limited to twenty-year charter, Nicholas Biddle was the president of the second bank. State banks learned to limit how many notes to issue unless they want to go out of business. -
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Free banking era
The free banking era was also known as the "Wildcat". In this period only state-chartered banks existed. Many banks experienced fraud. Also, there were may different currencies. This could mean that a dollar in one state could be a different amount than a dollar in another. -
Informal Banks
Informal banks were outside state controlled or transactions that had to do with money. Informal banks were not licensed by the state. -
National Banking Acts of 1863 & 1864
The acts gave the government three powers, charter banks, allow banks to hold gold and silver and to issue a national currency. Congress passed the act to help resolve the financial crisis that was going on during the early days of the American Civil War. -
The Gold Standard Began
A time when paper money and coins are equal to the value of a certain amount of gold. Not many banks today use gold. -
Federal Reserve System
This is the nation's central banking system. A central bank is a bank that can lend to other banks when they are in times of need. A member bank is a bank that belongs to the Federal Reserve System. Federal Reserve Notes is the national currency that we use today in the United States. -
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The Great Depression
The severe economic decline that began in 1929 and lasted for more than a decade. During this time there was widespread panic in which great numbers of people try to redeem their paper money. This was known as being a bank run. -
Federal Deposit Insurance Corporation
The government agency that insures customer deposits if a bank fails. They passed a law during the Great Depression restricting individuals ability to redeem dollars for gold. -
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Savings and Loan Crisis
In the United States there was many difficulties of savings and loan associations. By the 1980s high interest rates went up a large amount. Bad loans forced many companies to go out of business.
