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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.
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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.
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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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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.
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Informal banks were outside state controlled or transactions that had to do with money. Informal banks were not licensed by the state.
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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.
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A time when paper money and coins are equal to the value of a certain amount of gold. Not many banks today use gold.
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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 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.
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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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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.
