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The BNA, which opens in Philadelphia is the nation's first commercial bank. It loans money to federal and state governments as well as to Philadelphia businesses, and these actions encourage commerce between the colonies as well as between the U.S. and other countries.
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Philadelphia merchants open the Bank of Pennsylvania on order to provide funds for the Continental Army in the fight against Britain .
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Secretary of the Treasury Alexander Hamilton asks Congress to set up a national bank for the new nation, and the Bank of the United States (BUS) is created. The Bank, in turn, issues paper money to pay the government's bills and make loans to farmers and businesses.
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Republicans realize that the nation needs a central bank to regulate the money supply, and they support a law to charter the second national bank. Helps American businesses grow.
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He sees the Bank as undemocratic, vetoes a bill to renew the charter four years early. As a result, the Bank becomes a major issue in the 1832 election, and the popular vote rejects the Bank's renewal.
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Leading to economic depression. As state banks can now lend money without limit, they begin printing paper money that is not backed by gold or silver, and speculation runs wild.
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the wealthy banker Jay Cooke launches the first investment banking firm in the U.S. Borrowing three million dollars from the Pennsylvania government
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Congress approves the National Bank Act, which is meant to establish a national banking system, make federal war loans, and create a national currency.
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Roosevelt introduces further legislation with the Banking Act, also known as the Glass-Steagall Act, which separates commercial banking from investment banking
