Lesson 2 Mastery Assignment
by Dominique Adams
1791 Bank of United States
The Bank of United States was the first bank established for the United States. It was first created on February 25th 1791 by the United States Congress. The bank's establishment was included in a 3 part expansion (of federal fiscal and monetary power (along with a federal mint and excise taxes) by Alexander Hamilton who at the time was the first Secretary of the Treasury.
1816 Second Bank of The U.S
The 2nd bank of the U.S was the second federally authorized Hamiltonian National Bank.The bank handled all of the United States Government's fiscal transactions, It was first chartered by president James Madison in February of 1816 and began operations at it's main branch in Philadelphia nearly a year later on January 7th 1817 and underwent liquidation 21 years later in 1838.
Civil War (printing currency)
During the Civil War, the group known as The Confederates had to pay for the war. In order to pay the Confederate government issued a vast array of paper currencies at least seventy different types of currency, totaling more than 1.5 billion dollars, an incredible sum at that time. Making things even more confusing, state governments issued their own currencies as did banks, insurance companies, and businesses.
1863 National Banking Act
In 1863 Congress passed the National Banking Act which allows banks to have a state or federal charter which is called dual banking.
1913 Federal Reserve Act
In 1913 The Federal Reserve Act was created on December 23rd 1913. The purpose to creating the act was to create and set up the Federal Reserve System which is the central banking system in the United States. The act was signed into law by then president Woodrow Wilson.
1930's Great Depression (regarding banking)
The 1930's Great Depression first occured when falls in stock prices began in September of 1939. It became worldwide news when the stock market had crashed on October 29th 1929 which is known as Black Tuesday.
Glass-Stellgall Banking Act
The Glass-Stellgall Banking Act was enacted on June 16th 1933. The Glass-Stellgall Act the established The Federal Deposit Insurance Corporation which ensures that you will still have your money when the bank goes under and imposed other various bank reforms.
The 1970's (regarding banking)
The 1970's was a time where the Bank Secrecy Act was created which requires financial institutions in the United States to assist U.S. government agencies to detect and prevent money laundering. Also a banking crisis happened in Great Britain for property prices which caused dozens of small banks to be threatened with bankruptcy that lasted from 1973 to 1975.