WATCH THE VIDEO VERSION! http://www.youtube.com/watch?v=UpA0BRAu6Po dailyreckoning.com 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. Connect with us on Facebook: http://www.facebook.com/TheDailyReckoning Follow on Twitter: http://twitter.com/DailyReckoning

1. A History of Central Banking
In the United States

2. the federal reserve has been the united
states’ central bank since 1913 but is
actually its 3rd attempt at
central banking.

3. the first bank of the united states
was created in 1791 to help fund the
country’s debt from the...

4. revolutionary war

5. the first bank was modeled after
the bank of england.

6. it was chartered by congress in
philadelphia and differed from today’s
central bank in many ways. for example...

7. the u.s
. gover
nment
only a owned
20% share
private investors,
many overseas,
owned the rest

8. and unlike today, it was not solely
responsible for the country’s
money supply.

9. state banks issued their own
currency as well.

10. founding fathers thomas jefferson and
james madison opposed, arguing that
the constitution didn’t empower
congress to establish such a bank...

11. ted ers...…
efit arm
t ben er f
th at i s ov
in e s
ge bus
lar
and led to government
control by foreign interests.
after all...

12. 70% of the bank was owned
by other countries.
including...

13. great britain. the very nation
the united states fought to
break free from.

14. when the bank’s charter came
up for renewal in 1811...

15. it lost by a single vote.

16. the war of 1812 put the united
states in another financial crisis.

17. as a result, the second bank of the
united states was established in 1816.
the second bank was like the first bank...

18. only larger - with more
money and more control.

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. but jackson disliked the second bank,
believing it was the cause of:
inflation, financial manipulation, and corruption

21. and that gold and silver was
the only true money.

22. jackson vetoed its renewal in 1836.

23. for almost 80 years, the u.s. went through
different eras of banking.
“Free Banking” Era
1837-1862
National banks
1863-1913

24.
after various nationwide financial
panics, like the panic of 1907 in which
the new york stock exchange
dropped almost 50% from
the previous year...

25. a call for banking
and currency reform
was crucial.
in 1913, the federal reserve was born.

26. this new and powerful institution would:
manage the nation’s money supply
issue a single new u.s. currency
regulate banks

27.
but since the inception of the federal
reserve, the dollar has been inflated
almost 2,000%!

28. this inflation has caused the price
of goods to rise over the years.

29. this inflation has caused the price
of goods to rise over the years.

30. the u.s. dollar is steadily eroding.
protect your savings as the
dollar continues to fall...