ECON 1740 Lecture Notes - Lecture 8: Money Supply, Anti-Federalism, Perfect Information
17 Oct 2016
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The bank of the united states lent to other banks. The central bank lends to banks when no other bank will. If people take out more than the bank has in house. In 1811 the charter for the bank was up for renewal. The anti-federalist lead by thomas jefferson and local banks resist the renewal. The vote was so close that the vice president had to cast the deciding vote. The first 5 years after the charter lapsed, the number of banks tripled. Bank notes rose form 36 million to 76 million. In 1816, the us congress charters the second bank of the united states. Consequences of the 2nd bank of the united states. Hated the man in charge of banks extremely! Believes it is corrupt and only for wealthy. Due to a situation in the past, where he was swindled by a bank. 1914 is when the central bank comes back.
