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Tobacco begins to be used as currency in Virginia
Barely a dozen years after its introduction to Virginia tobacco starts being used as currency and this use continues for nearly 200 years. -
http://www.libertyforlife.com/banking/currency-us-timeline.html The Massachusetts Colony issued the first government authorized paper money in the western world.
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First Central Bank established in the UK. Served as model for most modern central banks.
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Paper currency called "Continental Money" is issued by the Continental Congress to finance the Revolutionary War, circulation stopped on May 31, 1781 http://dca.lib.tufts.edu/features/wriston/about/bankingtimeline.html
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A Private Company, Partly Owned by Foreigners – to Handle the Financial Needs of the New Central Government Previously, the 13 states had their own banks, currencies and financial institutions. http://dca.lib.tufts.edu/features/wriston/about/bankingtimeline.html
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United States issues its first coins under the Coinage Act. http://www.inspirefinanciallearning.ca/index.php/tools-videos/interactive-tools/history-of-money/
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Bank of the United States' charter is not renewed
Public opposition to British shareholders, suspicion that the bank is exceeding its constitutional powers, and opposition from those who believe that banking should be controlled by the states not the Federal government, are responsible for the demise of the bank. -
The Second Bank of the U.S. was granted a 20-year charter. http://www.factmonster.com/ipka/A0774856.html
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World-wide banking crisis starts in the US
In the month of October 1,415 US banks are forced to suspend specie payments. Because of huge European, especially British, investment in the US the effects are felt on the other side of the Atlantic. In Germany many of the new idustrial banks founded in the early 1850s fail. However recovery from the crisis is rapid. -
The Treasury Secretary is authorized to engrave and print Fractional Currency (in denominations less than one dollar) at the Treasury Department. post civil war http://www.moneyfactory.gov/historytimeline.html
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President Abraham Lincoln signs the National Bank Act, a revision of the National Currency Act of 1863. It establishes an inspection system for national banks. http://dca.lib.tufts.edu/features/wriston/about/bankingtimeline.html
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Gold Certificates, backed by gold held by the Treasury, are first issued. Along with Fractional Currency, Gold Certificates are one of the first currency issues produced entirely by the BEP. http://www.moneyfactory.gov/historytimeline.html
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The printing of postage stamps by the Bureau of Engraving and Printing begins. http://www.moneyfactory.gov/historytimeline.html
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US Federal Reserve System established
Instead of a single central bank, like the First and Second Bank of the United States, 12 Federal Reserve districts are established each with its own reserve bank. All national banks have to become members of the system and the state banks are given conditional permission to join. Banks are also allowed to establish branches abroad. http://projects.exeter.ac.uk/RDavies/arian/amser/chrono14.html -
US enters 1st World WarAs a result the national debt increases from about $1 billion in 1916 to $25 billion in 1920. http://projects.exeter.ac.uk/RDavies/arian/amser/chrono14.html
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1928-1929 Stock Market boom in USThe Fed takes no effective action to stop the boom getting out of control. http://projects.exeter.ac.uk/RDavies/arian/amser/chrono15.html
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The Great Crash
The New York stock market crashes on 24 October. The Fed, whose easy money policy stoked the boom, now tightens credit causing a slump in the US economy. -
The Great DepressionWidespread bank failures and the surviving banks' curbs on lending cause businesses of all kinds to go bankrupt. The US net national product falls by over half. http://projects.exeter.ac.uk/RDavies/arian/amser/chrono15.html
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US Federal National Mortgage Association created
The Association, known as Fanny Mae, increases the availability of finance for housing. http://projects.exeter.ac.uk/RDavies/arian/amser/chrono15.html -
The Great Crash
A fall on Wall Street reaches record levels on Friday 16 October. The same evening a hurricane sweeps over southern England and on Black Monday the London Stock Exchange suffers a similar fall to the one on Wall Street. Fearing that this crash, like the Wall Street Crash of 1929, might cause a world-wide slump the world's monetary authorities increase the money supply.
