Alexander Hamilton Proposed Using A Banking System

1707 WordsNov 21, 20167 Pages
Alexander Hamilton proposed using a banking system in America in 1781 after seeing how beneficial they were in other nations for advancing trade. In 1791, First Bank of the United States became the first commercial bank of the United States in Philadelphia, Pennsylvania. By the 1900’s, there were almost 170 banks per every million people in the United States, but because of this, there was a lot of debate about banking and the regulations needed and the fears that people had about the amount of control it was giving the government. This paper will be starting from the Great Depression and talk its way into the current situation of the United States banking regulations and why there is a debate on if there should be more or fewer regulations on banking. The Great Depression is a large reason for the beginning of many banking regulations. Many believe that the banking and financial crises were a large contributor to how the Great Depression went down, especially the three banking crises that hit the United States during that time. The first panic happened in October of 1930, the second in March of 1931, and the third began at the end of 1932. Because of all this, different reforms started to be passed into the banking world. The Great Depression is a major reason on why banking regulations started being a necessity. After Franklin Delano Roosevelt was inaugurated, the first major regulation put into effect was the Emergency Banking Act of 1933, where a major part of it granted

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