The History of the US Bank by Jaylin Pleasant-Fox

1791

pleasantfoxjm — 2024-09-20 13:54:22 UTC

The Bank of the United States was set up in 1791.

1816

pleasantfoxjm — 2024-09-20 13:54:44 UTC

Congress set up the Second Bank of the United States to try to bring order back to the banking system. The bank had some success but the people did not like it.

1837

pleasantfoxjm — 2024-09-20 13:54:55 UTC

Many careless Banks made loans to people who never paid them back. This led to an economic slowdown called the Panic of 1837.

1900

pleasantfoxjm — 2024-09-20 13:55:41 UTC

Congress passed the Gold Standard Act in 1900. It set the value of the dollar at a certain amount of gold. People could go to the U.S. Treasury and exchange their dollars for gold.

1933

pleasantfoxjm — 2024-09-20 13:55:49 UTC

President Franklin D. Roosevelt declared a bank holiday. On March 5th, 1933, he declared a "bank Holiday". He ordered all the banks closed. After they were all inspected, only banks were allowed to reopen. Later in 1933, Congress created the Federal Deposit Insurance Corporation. The FDIC insures money deposited in banks.

1811

pleasantfoxjm — 2024-09-20 14:00:34 UTC

Congress refused to renew its charter, As a result, the number of banks chartered by the states grew. A 100 state banks caused many problems. Some money was not accepted in other states because the state banks were issued by individuals. The banks printed their own paper money so the paper money could be backed by silver and gold coins but many banks did not have enough silver and gold to back up the money. People no longer trusted the banks and the money they issued.

1863-1864

pleasantfoxjm — 2024-09-20 14:01:13 UTC

When the Civil War broke out, both the Union in the North and the Confederacy in the South printed paper money to pay their bills.

1907

pleasantfoxjm — 2024-09-20 14:01:39 UTC

The Panic of 1907 happened because many banks made bad loans and gave too much credit. People lost trust in banks. Many people panicked and demanded their money at the same time. Some banks were forced to close.

1908

pleasantfoxjm — 2024-09-20 14:02:00 UTC

Congress created a National Monetary Commission. Its job was to find ways to prevent panics from happening again. It made many suggestions to improve the big system.

1913

pleasantfoxjm — 2024-09-20 14:02:24 UTC

The Federal Reserve Act was passed in 1913. It served as the nation's first true central bank. It created a system of 12 district banks throughout the country. All banks must meet the requirements set by the Federal Reserve System, or the Fed.