American flag!

The History of American Banking

  • Federalists Versus Antifederalists!

    Federalists Versus Antifederalists!
    The nation does not have a reliable medium of exchange, which causes conflict between the Federalists (lead by Alexander Hamilton) and the Antifederalists (lead by Thomas Jefferson).
  • The First Bank of the United States!

    The First Bank of the United States!
    Congress formed the First Bank of the United States in Philadelphia, Pennsylvania.
  • Increasing Banks!

    Increasing Banks!
    By 1800, there were over 700 private banks in the United States and continued to record in longhand.
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    The Expiration of the First Bank's Charter!

    Due to the expiration of the charter for the First Bank of the United States, a five year period of instability followed.
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    The Free Banking Era!

    President Andrew Jackson vetoed the reachertering of the Second National Bank, allowing the rise of the Free Banking Era.
  • Gold, Glorious Gold!

    Gold, Glorious Gold!
    Gold was struck in California and became the basis of the Untied States' monetary system
  • Increasing Banks!

    Increasing Banks!
    There are now over 1600 banks due to the California Gold Rush .
  • Wells, Fargo & Company!

    Wells, Fargo & Company!
    Henry Wells and William G. Fargo offered banking, express services, and extended credit to pioneers in the west during the Gold Rush.
  • Various Currencies!

    Various Currencies!
    There was no national currency because banks printed their own notes with varrying denominations from state to state.
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    The Effects of the Civil War!

    The Civil War demonstrates the need for a better monetary and banking system.
  • National Banking Act of 1863!

    National Banking Act  of 1863!
    The National Banking Act of 1863 esablished a system of natinally charters banks and a uniform currency
  • The National Banking Act of 1864!

    The National Banking Act of 1864!
    The act created national banks and an active secondary market for Treasury in order to finance the Civil War on the Union side.
  • National Currency!

    National Currency!
    By 1866, the currency was federally dictated and banks were no longer allowed to print their own money.
  • Time Lock!

    Time Lock!
    James Sargent installed the first time lock on a bank vault.
  • Bank of Italy!

    Bank of Italy!
    A.P. Giannini opens the Bank of Italy to offer services to immigrants who were denied by other banks.
  • Panic of 1907!

    Panic of 1907!
    The Panic of 1907 lead to the creation of the Federal Reserve System.
  • Federal Reserve Act!

    Federal Reserve Act!
    President Wilson signed the Federal Reserve Act which introduced the Central Bank and Federal Reserve System, which caused many customers to withdraw from their banks.
  • Bank of America!

    Bank of America!
    A.P. Giannini expands his bank to Los Angeles and renames it Bank of America, along with his additional 262 banks.
  • The Great Depression!

    The Great Depression!
    On Black Tuesday, the Stock Market crashed causing many banks to close in the nationwide depression and decrease consumer confidence, which negatively affected consumer goods.
  • FDIC!

    President Roosevelt restored confidence in banks by establishing the Federal Deposit Insurance Corporation (FDIC) which oversees insurance funds, savings, and loans.
  • Glass-Steagall Act!

    Glass-Steagall Act!
    This act prohibited commercial banks from engaging in investment business.
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    Regulation and Stability!

    Governement regulation allows for a stable economy.
  • The ERMA Project!

    The ERMA Project!
    Sponsored by the Bank of America, the Electronic Recording Machine, Accounting now processes checks to create a practical record keeping method.
  • Diners Club!

    Diners Club!
    The first charge card!
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    Banking Rights!

    New laws define the rights and responsibilities of banks and consumers.
  • ATM!

    The first Automated Teller Machine was used in the United States.
  • VISA!

    Bank of America created their Credit Card, the Bank AmeriCard Visa.
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    A period of deregulation along with the bankruptcy of the S&L.
  • Internet Banking!

    Internet Banking!
    Stanford Federal Credit Union was the first financial institution to offer online banking.
  • Glass-Steagall Act Repealed!

    Glass-Steagall Act Repealed!
    Congress repealed the Glass-Steagall Act, which many believe cause the financial crises of the early 2000s.
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    A Healthy Banking System!

    After two decades of mergers, the banking system emerges stable and healthy.