The National Banking Act of 1863, signed by Lincoln of course, established a national currency. It also treated other currencies differently for tax purposes, effectively killing all other forms of money in our country. Until then, currency was issued by states, and even more so by banks and other local institutions. I own a nearly 200 year old book that includes the then-current exchange rates among different local/private currencies and foreign coins in the fledgling United States.
So there we go. I have long asserted that the birth of FedZilla started with Abe Lincoln, but a lot of people resent it when I say that. The evidence indicates it is indeed true. *THAT* is the nexus point in history where the founders vision started going wrong.
It also treated other currencies differently for tax purposes, effectively killing all other forms of money in our country.
The Rulers want no challengers. They want sole control over monetary value. Of course, people probably felt safe because the currency was backed up by Gold and Silver back then.
Until then, currency was issued by states, and even more so by banks and other local institutions. I own a nearly 200 year old book that includes the then-current exchange rates among different local/private currencies and foreign coins in the fledgling United States.
That must be a fascinating book. Am I to understand you correctly in that individual states were issuing currency up until 1863? I knew they had done so prior to Union, but I didn't know the practice continued afterward.
The 1863 act didn’t end private American banknote issue, it simply changed it, and based it upon a bank’s holding of Treasury bonds. Part of this was to promote the purchase of Treasury debt in order to pay for the Union Army.
American banks continued to print their own currency right up to 1929, look up ‘American Large Size banknotes’ and you’ll see plenty of them.
One reason that banks printed their own currency post 1863 is because it was cheaper than dealing with checking accounts, which IIRC were taxed while currency wasn’t. So bank-issued currency functioned as checking accounts do today. The situation is reversed now... I’ve read that it is still legal for private American banks to issue their own currency, but there is a 100% tax on doing so, so no bank does it. I suppose some bank could do it and create some interesting collectables but no one is doing so.