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First paper money in the United States
The Massachustees Bay Colony issued paper money. They were the first colony to do so. -
Continental money was issued to help finance the Revolutionary War.
This money was considered worthless. -
The Dutch give the United States a loan
They loaned $2,000,000 to the United States. -
First Bank of the United States created
The bank was chartered in 1791. Twenty percent of the bank belonged to the federal government, and the rest of the stock belonged to private investors and foreign governments. -
The U.S. Mint began operations.
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The First Bank of the United States has 8 branches.
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The charter of the First Bank of the United States expired. It was not renewed.
Many people resented how the bank was owned by private New England investors. The government refused to renew the charter once it expired. -
The Second Bank of the United States is created
Congress granted a 20-year charter to the bank after differing state policies made banking confusing. Nicholas Biddle became the leader of the bank. -
The Second Bank of the United States ends
Andrew Jackson, the President at the time, hated the bank and refused to renew its charter. -
Greenbacks were issued to fund the Civil War
They were called that because they were green. -
National Banking Act of 1864
The National Banking Act was created to unify the currency in the United States. It allowed the Comptroller of the Currency to issue charters to national banks. It forced state banks to go out of business. -
Secret Service was established
The Secret Service was originally started to prevent people from counterfeiting money, which was making the American public lose faith in the national banking system. -
The U.S. Department of Engraving and Printing was established
This was a government entity that printed money. -
Economic Panic
This panic was the first of its kind, as it was caused by the stock market. -
Federal Reserve Act of 1913
The Federal Reserve Act of 1913 established a system of banking that was flexibla and adaptable. That was necessary because of the current economic boom which created a high demand for credit. -
The United States loans money to Germany
This money was borrowed from the U.S. so that they could pay war reparations to the U.S. government. -
First dip in the stock market
A small version of the stock market crash occurred, which proved how risky the market was. Two days later, National City Bank provided $25 million of capital to stop the market's slide. -
First large stock market drop
On this date, the stock market dropped by over 11%, losing millions. The large investment bankers tried to buy as much stock as they could to try to raise prices, but it did not work. -
Black Tuesday
On this day, so many stocks were sold that the stock market lost over $14 billion in one day. People rushed into the New York Stock Exchange to sell everything, creating chaos. -
Roosevelt begins the bank holiday
During this time, President Roosevelt closed all banks until they were inspected to make sure that they were financially stable enough to reopen. After the bank holiday, only good banks could reopen. The measure was designed to give the public confidence in the national banking system. -
Glass-Steagall Act passed
The Glass-Steagall Act reformed the national banking system. It separated commercial banking from investment banking and required that commercial banks be regularly evaluated by the government. It also established the FDIC to insure bank deposits. -
Money is now worthless
At this time, the United States decided to stop backing their money with gold. People could no longer redeem money for gold. -
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Stagflation
During the 1970s, stagflation increased. Stagflation is when prices increase (inflation), but wages and production do not. -
Monetary Control Act of 1980
The Monetary Control Act of 1980 deregulated commercial banking, which allowed banks to compete more freely with other financial institutions. That is why banks offer many of the services they do today. In the picture, President Jimmy Carter signs the bill into law. -
Gramm-Leach-Bliley Act
This law repealed the Glass-Steagall Act and allowed large banks to merge without many regulations.
