1782 - Bank of North America is chartered .
- Successful and thus led to the opening of many other banks .
- Proposed controversy - Who should charter banks: state or federal government?.
1791 - Bank of United States is chartered .
- Alexander Hamilton and the Federalists wanted a strong central bank (federal charter).
- As a result, the Bank of the United States was chartered.
- Carried characteristics of both private and central banks.
- Agriculturalists and others leery of centralized power of federal government and the wealthy interests on cities, wanted banks to be state chartered. .
1811 - Bank of United States charter allowed to lapse.
- Pro state interests pressured politicians to allow charter of Bank of United States to lapse.
- State bank abuses followed.
- Central bank needed to help fund War of 1812.
1816 - Second Bank of the United States chartered.
- Congress chartered bank under continued controversy: state vs. federal charter.
1832 - Andrew Jackson elected.
- Supported state's rights, vetoed national bank charter.
- Charter allowed to lapse in 1836.
- All commercial banks until 1863 chartered by state banking commissions.
- No national currency, individual banks issued bank notes (currency redeemed for gold).
1863 - National Bank Act of 1863.
- Act passed to eliminate state bank abuses.
- Established national banks and Office of the Comptroller of the Currency (Dept of U.S. Treasury).
- Original purpose to tax state banks and dry up sources of funds while federally chartered banks remained untaxed.
- State banks acquired funds through deposits to avoid extinction.
- Dual banking system resulted (State and Federally chartered banks coexist).
1913 - Federal Reserve Act of 1913.
- Creates Federal Reserve System to establish safer banking system.
- Mandatory national bank membership.
- State banks given option to join, most did not due to high cost.
1927 - McFadden Act of 1927.
- Prohibits (national) banks from branching across state lines.