Banking in America
Evolution of the Current System
Banks in the United States have always operated under rulesmore demanding than those applied to other businesses. In mostStates of the early Federal union, bank organizers needed specialpermission from the State government to open and operate. Fora while, an additional layer of oversight was provided by theBank of the United States, a central bank founded in 1791 at theinitiative of the Nation’s first Secretary of the Treasury, AlexanderHamilton. Its congressional charter expired in 1811. A secondBank of the United States was created in 1816 and operated until1832.In those days, city bankers tended to be extremely cautiousabout to whom they lent…
