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<h4><a name="text1">Early Banking in the United States:</a><br>
Experiments with Central Banking</h4>
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<li><a href="banks/index.html" target="_top">First & Second Banks
of the United States</a></li>
<li><a href="notes/index.html" target="_top">Perkins Plate, Sutler, Mormon
& Gold Dust Notes</a></li>
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<p>After the Revolutionary War in 1781, the Continental Congress adopted
the dollar as the unit for the national currency. At that time, a variety
of private notes were printed. After the adoption of the Constitution
in 1789, Congress chartered The First Bank of the United States to operate
until 1811, and authorized it to issue paper bank notes to eliminate confusion
and facilitate commerce.</p>
<p>This bank also served as the U.S. Treasury's fiscal agent, thus performing
the first central bank functions in the United States. The privately owned
bank was the subject of controversy, and its charter was not renewed.
The Second Bank of the United States was given a twenty-year charter in
1816. President Andrew Jackson vetoed the recharter of the Second Bank.</p>
<hr>
<h4><a name="text2">Broken Bank Notes & Wildcat Issues:</a><br>
Ready Funds for Westward Expansion</h4>
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<li><a href="privatebank/index.html" target="_top">Private Bank Notes</a></li>
<li><a href="state/index.html" target="_top">State Issues</a></li>
<li><a href="city/index.html" target="_top">City & County Issues</a></li>
<li><a href="private/index.html" target="_top">Private Issues</a></li>
<li><a href="transp/index.html" target="_top">Transportation Issues</a></li>
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<p>Between 1812 and 1866, a period known as the "Free Banking Era," lax
federal and state banking laws permitted virtually anyone to open a bank
and issue currency. Paper money was issued by states, cities, counties,
private banks, railroads, stores, churches, and individuals. By 1860,
an estimated 8,000 different state banks were circulating what were sometimes
called "Wildcat" or "Broken" Bank Notes.</p>
<p>The term "wildcat bank" referred to the remote locations of some banks,
more accessible to wildcats than people. When a bank "went broke," the
currency they issued became worthless. The era ended with the passing
of the National Bank Act of 1863.</p>
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