Module 13 Lesson 2 Money Timeline
By Michael Higgins
1791 Bank of the US
The Bank of the US received a charter in 1791 from congress. Which was signed by Washington. This bill was supported by Secretary of the treasury Alexander Hamilton. The bank collected fees and pay off debt. It was finally shut down by the states because they believed it gave the federal government too much power.
1861 to 1865 Civil War
It wasn't till the civil war that the federal government started to print its own money. The reason why it was a problem because each state had its own currency. And the money being printed was not well regulated.
1863 National Banking Act
This act helped create a system of national banks, created a constant national currency, and helped finance the civil war.
1913 Federal Reserve Act
Created the Federal Reserve.
1930's great depression
The great depression was when the economy was in horrible shape and the banks started to fall apart. Franklin D Roosevelt declared a "Bank Holiday" where all the banks closed and were only allowed to reopen if they could prove they had enough money to do so.
Glass-Steagall Banking Act
Created the Federal Deposit Insurance Corporation, so that if a bank collapses you don't lose the money you put in it.
1982 (regarding banking)
Banks were making high risk investments and loans. When the investments failed, the banks went under and the federal government ended up in debt to the people. They owed about $200 Billion dollars.
1999 Gramm-Leach-Bliley Act
This Act gave banks more control over things like banking, insurance, and securities unfortunately, it may also lead to less competition and less privacy.