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The Massachustees Bay Colony issued paper money. They were the first colony to do so.
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This money was considered worthless.
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They loaned $2,000,000 to the United States.
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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.
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Many people resented how the bank was owned by private New England investors. The government refused to renew the charter once it expired.
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Congress granted a 20-year charter to the bank after differing state policies made banking confusing. Nicholas Biddle became the leader of the bank.
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Andrew Jackson, the President at the time, hated the bank and refused to renew its charter.
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They were called that because they were green.
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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.
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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.
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This was a government entity that printed money.
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This panic was the first of its kind, as it was caused by the stock market.
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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.
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This money was borrowed from the U.S. so that they could pay war reparations to the U.S. government.
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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.
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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.
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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.
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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.
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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.
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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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During the 1970s, stagflation increased. Stagflation is when prices increase (inflation), but wages and production do not.
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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.
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This law repealed the Glass-Steagall Act and allowed large banks to merge without many regulations.
