feb 21, 1863 - National Banking System put in place (Feb 1863)

Description:

Financial landmark of war - National Banking System, authorized by Congress (1863); Launched partly as stimulant to sale of gov’t bonds ; Designed to est standard bank-note currency since country was being flooded by depreciated “rag money” issued by unreliable bankers; Banks that joined the System could buy gov’t bonds and issue sound paper money backed by them→ National Banking Act turned out to be first sig step toward unified banking network since (1836) when Bank of US was killed by A Jax; Was spawned by war, continued to function for 50 years

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