History of Banking

Module 13 Lesson 2

By: Colleen Keck

Here is a timeline of different events related to the banking situations from the late 1700s to the late 1900s.

1791 Bank of the US

Friday, Feb. 25th 1791 at 10am

Philadelphia, PA, United States

Philadelphia, PA

The Bank of the US received a charter in 1791 from Congress, and it was signed by President Washington. It was promoted by the Secretary of the Treasury Alexander Hamilton, who was a Federalist. This promoted a strong national govt. This bank collected fees and made payments on behalf of the federal government. Our country needed to pay off a lot of debt because of the American Revolution. The bank went away because state banks opposed it; they thought it gave too much power to national government.

1816 Second Bank of the US

Friday, Dec. 13th 1816 at 9pm

Philadelphia, PA, United States

Philadelphia, PA

The Second Bank of the US was chartered in 1816. It failed because it didn't regulate state banks or charter any other bank. State banks were issuing their own currency, which caused issues. The Federal government didn’t print paper currency until the Civil War.

1832 – Andrew Jackson Campaigns

Sunday, Jan. 8th 1832 at 9pm

D.C., DC, United States

Washington, DC

"Andrew Jackson was skeptical of the central banking system and believed it gave too few men too much power and caused inflation. He was also a proponent of gold and silver and an outspoken opponent of the 2nd National Bank. The Charter expired in 1836."

http://www.thrivemovement.com/banking-history-timeline-follow-money

1861- the American Civil War

Friday, April 12th 1861 at 9pm

South Carolina, United States

SC

The American Civil War begins at Fort Sumter In SC.

1861: Civil War Paper Money

Sunday, Sep. 1st 1861 at 9pm

D.C., DC, United States

Washington, DC

"On the brink of bankruptcy and pressed to finance the Civil War, Congress authorized the United States Treasury to issue paper money for the first time in the form of non-interest bearing Treasury Notes called Demand Notes."

http://www.factmonster.com/ipka/A0774856.html

1863 National Banking Act

Tuesday, Jan. 13th 1863 at 9pm

D.C., DC, United States

Washington, DC

Banks could have a state or federal charter, which is called duel banking. It created the United States National Banking System.

1877: Bureau of Engraving and Printing

Saturday, March 3rd 1877 at 9pm

D.C., DC, United States

Washington, DC

"The Department of the Treasury's Bureau of Engraving and Printing started printing all U.S. currency."

http://www.factmonster.com/ipka/A0774856.html

1913 Federal Reserve Act

Tuesday, Dec. 23rd 1913 at 9pm

D.C., DC, United States

Washington, DC

"The Federal Reserve Act of 1913 was passed. It created the Federal Reserve System as the nation's central bank to regulate the flow of money and credit for economic stability and growth. The System was authorized to issue Federal Reserve Notes. Now the only U.S. currency produced, Federal Reserve Notes represent 99 percent of all currency in circulation."

http://www.factmonster.com/ipka/A0774856.html

Black Thursday

Thursday, Oct. 24th 1929 at 9pm

D.C., DC, United States

Washington, DC

The stock market crashes.

"The most devastating stock market crash in history. Billions of dollars in value were consolidated into the private banker’s hands at the expense of everyone else."

http://www.thrivemovement.com/banking-history-timeline-follow-money

1930s- The Great Depression

Monday, Jan. 13th 1930 at 9pm

United States

The Great Depression begins. Millions loose money and the economy is terrible. The Great Depression causes many banks to crash.

1933-Glass-Steagall Banking Act

Friday, June 16th 1933 at 9pm

D.C., DC, United States

Washington, DC

The Glass-Steagall Banking Act established the Federal Deposit Insurance Corporation which ensures that if a bank goes under, you still have your money.

1970s Congress Relaxes Restrictions

Monday, Jan. 5th 1970 at 9pm

D.C., DC, United States

Washington, DC

During the 1970s, Congress relaxes restrictions on banks. Interest rates were fairly high at this time.

1982-Congress allows S&L banks to make high risk loans and investments

Monday, Jan. 25th 1982 at 9pm

D.C., DC, United States

Washington, DC

Congress allows S&L banks to make high risk loans and investments, but the investments went bad and banks failed. The Federal government had to give investors their money back. The Federal government's debt was about $200 billion at the time. The FDIC then took over the S&L.

1999: Gramm-Leach-Bliley Act

Friday, Nov. 12th 1999 at 9pm

D.C., DC, United States

Washington, DC

This act allows banks to have more control over banking, insurance and securities. The cons of this is that there is less competition, and it may form a universal bank. This may lead to more sharing of information. There is then a reduction in privacy.