Timeline of the National Bank

First Bank of the US - 1791

In 1791, the Bank of the US received a charter from Congress and was signed into action by George Washington. It was made to collect fees and make payments for the federal government. However, the Bank later was removed because the state banks said it was given too much power.

Second Bank of the US - 1816

The Second Bank of the US was created in 1816 when it was given a charter. Eventually the bank failed because it did not do its job of regulating the state banks and to charter other banks.

The Civil War - 1861

The Federal Government did not begin to print paper money until the beginning of the Civil War in 1861. These were called "greenbacks," because the paper was green.

National Banking Act - 1863

The National Banking Act gave banks the opportunity to receive either a state or federal charter. This became known as "dual banking."

Federal reserve Act - 1913

The Federal Reserve Act was an act passed by Congress that created the Federal Reserve System. This created one central banking system used by the US. The Federal Reserve was given the right to issue legal tender.

The Great Depression - 1930's

The Great Depression, which was the nation's most devistating economic depression, caused the stock market and many banks to collapse. In order to relieve some of the devistation, FDR issued a "bank holiday" that closed all banks so they could recover from the Depression. They were not allowed to reopen until proven that they were financially stable.

Glass-Steagall Banking Act - 1970's

This act established the Federal Deposit Insurance Corporation. Its main job was to ensure that people who had placed their money in banks were still financially safe if the banks were to collapse again.

Saving and Loan Crisis - 1982

Saving and Loan Banks are given the rights to make high risk loans and investments. However, these investments failed and the banks crashed. To fix this, the Federal Government had to pay back investors and lost nearly $200,000,000,000 dollars. After this, the FDIC took over the Saving and Loan Banks.

Gramm-Leach-Bliley Act - 1999

This act allowed banks to have more control over banking, insurance and securities. However, people were afraid that this would cause banks to become less competitive and for their to be a central bank forming. The believed this would ultimately end in the reduction of banker's privacy.