A Brief History Of Central Banking In The US

Banks are among the oldest businesses in American history, but they have changed in many ways through the years. Today, banks offer a wider range of services than ever before, and they deliver those services more efficiently.

But banks weren’t always as cut and dried as they are today. There were no modern American banks as late as 1781, let alone a central bank to oversee banking and finance. This resulted in some major problems, like financial instability, unemployment, and a chaotic currency.

In this episode of Fiscally Savage, Dylan wades through the drama and pageantry that is the US financial system. What did it look like in the years following the Revolutionary War? What led to the creation of the Federal Reserve? And what does all this matter to the average American?

Show Highlights

• [01:20] How Alexander Hamilton laid the foundation for the US Federal Reserve
• [03:09] Why Thomas Jefferson opposed the National Bank
• [06:27] Jefferson’s view on national debt
• [08:52] Why the Second Bank of the United States was established
• [10:51] The difference between the First Bank of the United States and the Second Bank of the United States
• [11:24] Andrew Jackson's concerns about the National Bank
• [12:52] Land speculation during Jackson’s presidency
• [14:06] The issue with buying land with paper money against held gold reserves
• [16:05] Jackson and the Bank War
• [18:43] The effect of Jackson abolishing the Second Bank of the United States and demanding that all federal land be purchased with gold and silver
• [19:54] Abraham Lincoln and the Free Banking Era
• [24:36] Why the history of banking in the US ultimately matters to the average American citizen
• [28:09] Closing statements

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