The Federal Reserve Bank?
Is it time to get rid of the Federal Reserve Bank? It has happened before.
The First Bank of the United States was the original central bank of new United States of America after the Revolution. Alexander Hamilton was the Secretary of the Treasury and want to establish a mint for coinage so as to implement a standard currency to assist in trade. This would also eliminate fiat currency, money with no backing, and allow credit lines to be established for domestic and overseas business to do trade with.
The new central bank also had the ability to impose excise tax, primarily on alcohol, and led to the Whiskey Rebellion. The North was all for the central bank due to the nature of its trade based economy with Europe but the South was opposed as it had no need. It was chartered from 1791 to 1811 and was dissolved only to have something similar brought back several years later.
Designed on the pattern of the First United States Bank the Second United States Bank was formed to help finance the government after the War of 1812. As result of the debt incurred from the war, many private banks began issuing to much local money and created hyper inflation.
The bank lent money to just about anyone to buy farm land due to war in Europe ruining its agriculture. This caused massive bank fraud due to no self regulation on the 2nd Bank. When the bank finally policed itself it lead to the Panic of 1819.
Under President Andrew Jackson money from the treasury would be withdrawn and placed in privately held institutions. This led to the 2nd Bank losing influence and eventually closing when it charter was not renewed. It lasted from 1816 until 1836 as a federally sanctioned entity and continued on for a few years as a private one until 1841.
The First Bank of the United States was the original central bank of new United States of America after the Revolution. Alexander Hamilton was the Secretary of the Treasury and want to establish a mint for coinage so as to implement a standard currency to assist in trade. This would also eliminate fiat currency, money with no backing, and allow credit lines to be established for domestic and overseas business to do trade with.
The new central bank also had the ability to impose excise tax, primarily on alcohol, and led to the Whiskey Rebellion. The North was all for the central bank due to the nature of its trade based economy with Europe but the South was opposed as it had no need. It was chartered from 1791 to 1811 and was dissolved only to have something similar brought back several years later.
Designed on the pattern of the First United States Bank the Second United States Bank was formed to help finance the government after the War of 1812. As result of the debt incurred from the war, many private banks began issuing to much local money and created hyper inflation.
The bank lent money to just about anyone to buy farm land due to war in Europe ruining its agriculture. This caused massive bank fraud due to no self regulation on the 2nd Bank. When the bank finally policed itself it lead to the Panic of 1819.
Under President Andrew Jackson money from the treasury would be withdrawn and placed in privately held institutions. This led to the 2nd Bank losing influence and eventually closing when it charter was not renewed. It lasted from 1816 until 1836 as a federally sanctioned entity and continued on for a few years as a private one until 1841.
