Banks are Incorporated in the States; also a Bank of the United States on the type of the Bank of England. The Colonial Idea is continued in Banks of the States, being Institutions based either on the "Faith and Credit" of the State alone, or on a Combination of Public Funds with Private Subscriptions
Local Banks are Multiplied to Replace the Bank of the United States. Their Issues are Stimulated by their Fiscal Functions, soon Intensified by War Financiering. A Commercial Crisis is Produced with a Prolonged Liquidation, attended by Various Experiments in Bank Issues and Stay Laws for Relief. A Banking System is created consisting of Local Banks co-ordinated around a Bank of the United States, as a Regulator of the Currency and Fiscal Agent of the Government
The War of the Jackson Administration on the Bank of the United States breaks up the Existing System of Banks and brings in Local Banks again as Currency-Providers and Fiscal Agents. Another Bank Inflation, Crisis and Liquidation Ensue. The Bank of the State Institution undergoes great extension and variation
§ 1.—1837. The Suspension of Specie Payments. The United States Bank of Pennsylvania in the Crisis. Its Cotton Operations. The Federal Treasury in the Crisis
§ 3.—1838 and 1839. Treasury Notes and Bank Notes. Continuation of the Cotton Operations. Second Failure of the United States Bank of Pennsylvania. Second General Bank Suspension South and West of New York
§ 5.—1840 and 1841. The Third Failure and Final Bankruptcy of the United States Bank. The Bank Failures of 1841. The Extra Session of Congress of 1841. The Last Attempts to Charter a National Bank. The Pennsylvania Relief System
Under the Independent Treasury System the Regulation of Banking and Currency is left entirely to the States. The Federal Government handles only coin. Banks organized under General Joint Stock Laws gradually, and to a great extent, supersede Chartered Banks. In the Ohio Valley and the Northwest, Banks of the new kind run to great extravagance and abuse. By the Development of New Institutions of Finance, Commerce, Transportation and General Industry, Banks lose comparative importance
CHAPTER 16: The Local Bank System. The Gold Discoveries and Consequent Expansion. The Commercial Crisis of 1854 and 1857. The Aid Given by the Banks to the Federal Government at the Beginning of the Civil War