A History of Central Banking In the United States
-
Upload
agora-financial -
Category
Education
-
view
682 -
download
2
Transcript of A History of Central Banking In the United States
![Page 1: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/1.jpg)
A History of Central Banking In the United States
![Page 2: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/2.jpg)
the federal reserve has been the united states’ central bank since 1913 but is
actually its 3rd attempt at central banking.
![Page 3: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/3.jpg)
the first bank of the united states was created in 1791 to help fund the
country’s debt from the...
![Page 4: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/4.jpg)
revolutionary war
![Page 5: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/5.jpg)
the first bank was modeled after the bank of england.
![Page 6: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/6.jpg)
it was chartered by congress in philadelphia and differed from today’s
central bank in many ways. for example...
![Page 7: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/7.jpg)
the u.s. government owned only a 20% share
private investors, many overseas,
owned the rest
![Page 8: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/8.jpg)
and unlike today, it was not solely responsible for the country’s
money supply.
![Page 9: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/9.jpg)
state banks issued their own currency as well.
![Page 10: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/10.jpg)
founding fathers thomas jefferson and james madison opposed, arguing that
the constitution didn’t empower congress to establish such a bank...
![Page 11: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/11.jpg)
that it benefitted
large business over farmers...…
and led to government control by foreign interests.
after all...
![Page 12: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/12.jpg)
70% of the bank was owned by other countries.
including...
![Page 13: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/13.jpg)
great britain. the very nation the united states fought to break free from.
![Page 14: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/14.jpg)
when the bank’s charter came up for renewal in 1811...
![Page 15: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/15.jpg)
it lost by a single vote.
![Page 16: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/16.jpg)
the war of 1812 put the united states in another financial crisis.
![Page 17: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/17.jpg)
as a result, the second bank of the united states was established in 1816.
the second bank was like the first bank...
![Page 18: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/18.jpg)
only larger - with more money and more control.
![Page 19: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/19.jpg)
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.
![Page 20: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/20.jpg)
but jackson disliked the second bank, believing it was the cause of:
inflation, financial manipulation, and corruption
![Page 21: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/21.jpg)
and that gold and silver was the only true money.
![Page 22: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/22.jpg)
jackson vetoed its renewal in 1836.
![Page 23: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/23.jpg)
for almost 80 years, the u.s. went through different eras of banking.
“Free Banking” Era 1837-1862
National banks 1863-1913
![Page 24: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/24.jpg)
after various nationwide financial panics, like the panic of 1907 in which
the new york stock exchange dropped almost 50% from
the previous year...
![Page 25: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/25.jpg)
a call for banking and currency reform was crucial.
in 1913, the federal reserve was born.
![Page 26: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/26.jpg)
this new and powerful institution would:
regulate banks
manage the nation’s money supply
issue a single new u.s. currency
![Page 27: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/27.jpg)
but since the inception of the federal reserve, the dollar has been inflated
almost 2,000%!
![Page 28: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/28.jpg)
this inflation has caused the price of goods to rise over the years.
![Page 29: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/29.jpg)
this inflation has caused the price of goods to rise over the years.
![Page 30: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/30.jpg)
the u.s. dollar is steadily eroding.
protect your savings as the dollar continues to fall...
![Page 31: A History of Central Banking In the United States](https://reader030.fdocuments.us/reader030/viewer/2022032514/55d5341cbb61eb335f8b4645/html5/thumbnails/31.jpg)