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End of the American Revolution
There was an agreement among the leaders of the nation to create a banking system that was safe for the new United States -
Proposed National Bank
Once Hamilton was appointed secretary of the treasury, he proposed a national bank regulated by the government that would be able to issues a national currency and monitor funds
https://www.pbs.org/wgbh/americanexperience/features/establishing-national-bank/ -
First Bank of the United States
Federalists won the first debate and in 1791, Congress established the Bank of the United States. The First Bank of the United States was offered a 20-year charter by Congress. The Bank's founder, Hamilton, died in 1804, losing him caused the bank to function only until 1811
https://www.history.com/topics/bank-of-the-united-states -
Second Bank of the United States
After the fall of the first bank, there was much financial chaos, leading Congress to charter another bank for another 20 years. Nicholas Biddle was in charge of the bank in 1823
http://www.let.rug.nl/usa/essays/general/a-brief-history-of-central-banking/second-bank-of-the-united-states-(1816-1836).php -
Free Banking Era
A time period after the fall of the Second Bank, where there was much chaos due to different currencies, fraud, and bank runs. The federal government helped in no way, in regards to regulate silver and cold reserves.
https://link.springer.com/chapter/10.1057/9781137361219_2 -
Gold Standard Introduced
The nation had finally created a set value for currency when they started comparing values through the use of gold. Paper money and coins had the value of certain amounts of gold. One once of gold equaled about $20.
https://www.thebalance.com/what-is-the-history-of-the-gold-standard-3306136 -
Federal Reserve System
The Federal Reserve Act of 1913 established the nation's first central bank. The act included 12 regional banks, board members, notes, and loans.
https://www.federalreserveeducation.org/about-the-fed/structure-and-functions -
Great Depression
There was a severe economic decline, resulting in many lost jobs. This lasted longer than ten years, and was due to all of the money that was not able to be repaid, leaving the banking systems failing.
https://www.history.com/topics/great-depression -
Banking Reformation
President Franklin D. Roosevelt tried to regain the public's confidence in the banking system. The FDIC was established that year was created to ensure that money be repaid even when banks fail.
https://www.history.com/topics/history-of-the-fdic -
Subprime Mortgage Collapes
By late 2008, the U.S. economy was on the edge of a financial catastrophe. There was a lot of financial turmoil going on at the time and bank bailouts were issued by the treasury and President George Bush, up to $700 billion.
https://www.thebalance.com/mortgage-crisis-overview-315684
