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Creation of dual banking system
The government started the devlopment of a dual banking system -
Paper money
By 1861 most of the country's 1,601 state-chartered banks were issuing paper money of questionable value. -
The War and issues with money
During the Civil War the North and South both had their own types of money. This created many problems for the banks. -
Unifying the banking system
Congress passes the National Banking Act of 1863 and 1864, which allows the government to charter, or officially establish, banks and require them to hold gold and silver reserves. -
Coinage Act
Congress passed the Coinage Act which reduced the countrys reliance on silver as a specie. -
Gold Standard Act
Created a monetary system in which paper money and coins carry a calue of a specified amount of gold. It also allowed people to exchange their banknotes for gold and keep the government from issuing and unlimited number of banknotes