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The government started the devlopment of a dual banking system
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By 1861 most of the country's 1,601 state-chartered banks were issuing paper money of questionable value.
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During the Civil War the North and South both had their own types of money. This created many problems for the banks.
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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.
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Congress passed the Coinage Act which reduced the countrys reliance on silver as a specie.
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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