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American Revolution
Also known as the American Revolutionary War and the U.S. War of Independence. The conflict arose from growing tensions between residents of Great Britain's 13 North American colonies and the colonial government, which represented the British crown. -
Congress Creates the First US Bank
The First Bank of the United States was one of the four major financial innovations proposed and supported by Hamilton, first Secretary of the Treasury. In addition to the national bank, the other measures were assumption of the state war debts by the U.S. Government, establishment of a mint and imposition of a federal excise tax. -
President Jackson Issues Executive Order to Stop Depositing Government Funds Into Bank of US
President Andrew Jackson announces that the government will no longer use the Second Bank of the United States, the country’s national bank. On September 10, 1833, Jackson removed all federal funds from the Second Bank of the U.S., redistributing them to various state banks. In addition, he announced that deposits to the bank would not be accepted after October 1 that year. -
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Manufactured “boom” created by central bankers
The impact on the public as consumers needed to change ta state chartered bank instead. Money supply increased 84% spurred by the 2nd bank of the US. The total money supply rose from $150 million to $267 million. The impact on the economy is the money rose up because of the banks created. -
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Six Year Depression
The origins of this boom had many sources, both domestic and international. Virtually the whole nation felt the effects of the panic. Connecticut, New Jersey, and Delaware reported the greatest stress in their mercantile districts. Out of 850 banks in the United States, 343 closed entirely, 62 failed partially, and the system of State banks received a shock from which it never fully recovered. -
Panic of 1907
United States financial crisis that took place over a three-week period starting in mid-October, when the New York Stock Exchange fell almost 50% from its peak the previous year. In the early 1900s, trust companies were booming; in the decade before 1907, their assets had grown by 244%. During the same period, national bank assets grew by 97%, while state banks in New York increased by 82% -
JP Morgan Associate and Rockefeller Relative Nelson Aldrich Heads New National Monetary Commission
Senate Republican leader, Nelson Aldrich, heads the new National Monetary Commission that was created to study the cause of the banking panic. Aldrich had close ties with J.P. Morgan and his daughter married John D. Rockefeller. -
Federal Reserve Act Passed
Two days before Christmas, while many members of Congress were away on vacation, the Federal Reserve Act was passed, creating the Central banking system we have today. It was based on the Aldrich plan drafted on Jekyll Island and gave private bankers supreme authority over the economy. They are now able to create money out of nothing, make decisions without government approval, and control the amount of money in circulation.