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The nation has no reliable medium of exchange. Federalists and antifederalists disagree about a banking.
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Was establised and built in Philadeliphia. Congress set up the bank of the United States, granting it a twenty-year charter, or license to operate.
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state banks begin issuing bank notes that they could not back with specie, or gold and silver coins
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Congress charterd the Second Bank of the United State in 1816.it was limited to a twenty-year charter just like the first bank of the United States. they worked to rebuild the confidence of the public in a nationalbanking system
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President Jackson vetoes recharter of Second Bank in 1832, giving rise to free banking Free Banking Era. The fall of the Second Bank once again triggered a period dominated by state-chhartered banks.
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President Jackson issues executive order to stop depositing government funds into bank of US. By September 1833, government funds were being deposited into state chartered banks.
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Gold Changed the banking system forever. People started to migrate from the East coast and all over to mine.Those adventurers with dreams of striking it rich, headed for California.
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An estimated 8,000 different banks were circulating currency. to add to the confusion, the federal governmental played no role in providing paper currency or regulating reserves of gold or silver.
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Made problems worse in the conflict of the confusion of currency.
the Unisted States Treasury issued its first paper currency since the Cobtinental. The offical name was "Demand notes." -
The Civil war make clear the need for better monetary and banking system.
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establise national banking system and uniform national currency.
It gave federal government three important powers.
-the power to charter banks
-the power to require banks to hold adequate gold and silver reserves to cover notes.
-the power to issue a single national currency. -
National Bank Notes, backed by U.S. government securities, became predominant. By this time, 75 percent of bank deposits were held by nationally chartered banks. As State Bank Notes were replaced, the value of currency stabilized for a time.
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was invented to keep vaults safe and a criminal from entering in a per set time.
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The continuing problems in the nation's banking system resulted in this. because they lacked adequate reserves,many banks had to stop exchanging gold for papermoney.
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After the 1893 and 1907 financial panics, 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.
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The begining of the Great depression.
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Bank of America was establised.
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President Roosevelt helps restore confidence in the nation's banks by establishing the FDIC.
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Period of government regulation and long-term stability.
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ATM's started to be manufactured. By 1959 They were placed in shoppin centers.
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First bank card was issued by Bank of America.
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In the late 1960s to late 1979s new Laws make cear the rights and responsibilities of banks and consumers.
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The consumer's Saving Bank of Worcester, Massachusetts, introduced a Negotiable Order of Withdrawal (NOW) account, a type of checking account that pays interest.
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S&Ls face bankruptcies.
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NOW accounts becam available nationwide in 1980.
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During the 1990s, Financial institutions became more similar then dissimilar, although differences still remain. these include commercial banks, savings and loan associations, mutual savings banks, and credit unions.
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After two decades of mergers, the banking system emerges stable and healthy.
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The FDIC creates reports on problem or troubled banks in the aggregate. Congress temporarily increased the insurance limit to $250,000.
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Checks became used more and more. Bankers would issue orders at the request of their customers, to pay money to identified payees.
