Unformatted text preview: U.S. wanted to reduce reliance on other nations. New government allowed states to charter banks. In 1791, Congress established the First Bank of In the United States with a 20-year charter. the First Bank was to establish currency credibility. It could compete nationwide with state banks. The charter was not renewed & assets The assigned to state banks. assigned Crisis caused charter of Second Bank of U.S. Crisis in 1816 in State bank charters were easy to obtain & had State little regulation--resulting in many failures. * little HISTORY OF BANKING:CIVIL WAR HISTORY CIVIL TO THE GREAT DEPRESSION TO Need to finance Civil War resulted in Need passage of the National Banking Act in 1864. 1864. Over 20% of banks failed in mid-1870s & Over mid-18...
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- Fall '10
- Federal Reserve, Federal Reserve System, Federal Reserve bank