History of the United States I / Unit 9 USH1 1219 short lesson, about 20 seconds
Banks and Paper
Captions available
The idea
State legislatures chartered banks to meet the demand for credit, and Kentucky chartered forty-six banks in a single legislative session.
In practice
Banks issuing paper notes in excess of their specie reserves.
Where people slip
The Bank of the United States suspended specie payments during the War of eighteen twelve and continued to issue only paper banknotes.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
Something wrong in this lesson? Flag it · Sources for History of the United States I