[inquest]

many of these banks were just scam operations which wildly issued currency that became worthless pretty rapidly.

Hmm, sounds a little like the Bank of the United States circa 1819. The only difference being, that states had the power to regulate the indiscretions of private banks.

[justshutupandtakeit]

No the Bank reined in the excesses which later appeared in the banking system after the demise of said Bank.

States did little to control them outside of a few eastern states. In the others there was an orgy of currency issues which defrauded large numbers of hapless people.