A History of Central Banking   In the United States
the federal reserve has been the united states’ central bank since 1913 but is      actually its 3rd attempt at           ...
the first bank of the united stateswas created in 1791 to help fund the     country’s debt from the...
revolutionary war
the first bank was modeled after       the bank of england.
it was chartered by congress in philadelphia and differed from today’scentral bank in many ways. for example...
the u.s             . gover                     nment       only a              owned                20% shareprivate inve...
and unlike today, it was not solely  responsible for the country’s           money supply.
state banks issued their own     currency as well.
founding fathers thomas jefferson and james madison opposed, arguing that   the constitution didn’t empower  congress to e...
ted ers...…                           efit arm                     t  ben er f              th at i s ov                  ...
70% of the bank was ownedby other countries.including...
great britain. the very nationthe united states fought tobreak free from.
when the bank’s charter came   up for renewal in 1811...
it lost by a single vote.
the war of 1812 put the unitedstates in another financial crisis.
as a result, the second bank of the  united states was established in 1816.the second bank was like the first bank...
only larger - with moremoney and more control.
in 1816, the national debt was paid off  by president andrew jackson. it’s   the only time in history that the         u.s...
but jackson disliked the second bank,      believing it was the cause of:inflation, financial manipulation, and corruption
and that gold and silver was    the only true money.
jackson vetoed its renewal in 1836.
for almost 80 years, the u.s. went through       different eras of banking.        “Free Banking” Era             1837-186...
 after various nationwide financialpanics, like the panic of 1907 in which   the new york stock exchange     dropped almos...
a call for banking                and currency reform                was crucial.                  	  in 1913, the federal...
this new and powerful institution would:                   	  manage the nation’s money supplyissue a single new u.s. curr...
 but since the inception of the federalreserve, the dollar has been inflated       almost 2,000%!
this inflation has caused the price of goods to rise over the years.                 	  
this inflation has caused the price of goods to rise over the years.                 	  
the u.s. dollar is steadily eroding.                  	  protect your savings as the dollar continues to fall...
 
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A History of Central Banking In the United States

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The Federal Reserve has been the United States's central bank since 1913, but is our third attempt at central banking.

The First Bank of the United States was chartered in 1791 and lasted twenty years. Facing strong opposition by Jeffersonians who feared central banks were controlled by foreign interests and primarily benefitted large companies, it lost its re-charter by a single vote.

Debt caused by the War of 1812 led to the charter of the Second Bank in 1816, lasting until Jackson refused to re-charter in 1836.

The Panic of 1907 led to the formation of the Federal Reserve System in order to stabilize prices, regulate banks, manage the money supply and create a single, unified paper currency, at the time based on gold. Since then, the dollar has been inflated over 2,000%, diminishing the value of savings for Americans and anyone holding assets denominated in dollars.

Find out how you can protect your wealth against ongoing inflation. Subscribe to The Daily Reckoning for free.

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A History of Central Banking In the United States

  1. 1. A History of Central Banking In the United States
  2. 2. the federal reserve has been the united states’ central bank since 1913 but is actually its 3rd attempt at central banking.
  3. 3. the first bank of the united stateswas created in 1791 to help fund the country’s debt from the...
  4. 4. revolutionary war
  5. 5. the first bank was modeled after the bank of england.
  6. 6. it was chartered by congress in philadelphia and differed from today’scentral bank in many ways. for example...
  7. 7. the u.s . gover nment only a owned 20% shareprivate investors, many overseas, owned the rest
  8. 8. and unlike today, it was not solely responsible for the country’s money supply.
  9. 9. state banks issued their own currency as well.
  10. 10. founding fathers thomas jefferson and james madison opposed, arguing that the constitution didn’t empower congress to establish such a bank...
  11. 11. ted ers...… efit arm t ben er f th at i s ov in e s ge bus lar and led to governmentcontrol by foreign interests. after all...
  12. 12. 70% of the bank was ownedby other countries.including...
  13. 13. great britain. the very nationthe united states fought tobreak free from.
  14. 14. when the bank’s charter came up for renewal in 1811...
  15. 15. it lost by a single vote.
  16. 16. the war of 1812 put the unitedstates in another financial crisis.
  17. 17. as a result, the second bank of the united states was established in 1816.the second bank was like the first bank...
  18. 18. only larger - with moremoney and more control.
  19. 19. in 1816, the national debt was paid off by president andrew jackson. it’s the only time in history that the u.s. has paid off its debt.
  20. 20. but jackson disliked the second bank, believing it was the cause of:inflation, financial manipulation, and corruption
  21. 21. and that gold and silver was the only true money.
  22. 22. jackson vetoed its renewal in 1836.
  23. 23. for almost 80 years, the u.s. went through different eras of banking. “Free Banking” Era 1837-1862 National banks 1863-1913
  24. 24.  after various nationwide financialpanics, like the panic of 1907 in which the new york stock exchange dropped almost 50% from the previous year...
  25. 25. a call for banking and currency reform was crucial.  in 1913, the federal reserve was born.
  26. 26. this new and powerful institution would:  manage the nation’s money supplyissue a single new u.s. currency regulate banks
  27. 27.  but since the inception of the federalreserve, the dollar has been inflated almost 2,000%!
  28. 28. this inflation has caused the price of goods to rise over the years.  
  29. 29. this inflation has caused the price of goods to rise over the years.  
  30. 30. the u.s. dollar is steadily eroding.  protect your savings as the dollar continues to fall...
  31. 31.  
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