The US Constitution requires Congress to “coin money”. The Original 13 Colonies each had their own currency in 1789. The idea was to replace the separate currencies with one national currency.
The story of U.S. circulating coins began long before the opening of a national mint in 1792. Before national coinage, a mix of foreign and domestic coins circulated, both during the Colonial Period and in the years following the Revolutionary War. After Congress established the U.S. Mint in 1792, the Mint struggled for many years to produce enough coins. Finally, production numbers grew to meet the demands of a growing nation, providing some of the most beloved circulating coin designs.
During the Colonial Period, a variety of coins circulated, including British pounds, German thalers, Spanish milled dollars, and even some coins produced by the colonies. Spanish milled dollars became a favorite because of the consistency of the silver content throughout the years. To make change for a dollar, people sometimes cut the coin into halves, quarters, eighths, and sixteenths to match the fractional denominations that were in short supply.
After the Revolutionary War, the Articles of Confederation governed the country. The Articles allowed each state to make their own coins and set values for them, in addition to the foreign coins already circulating. This created a confusing situation, with the same coin worth different amounts from state to state.
The U.S. federal government began issuing paper money in 1861 to finance the Civil War. These initial paper money issues, known as Demand Notes, were authorized by Congress on July 17, 1861. The notes were non-interest-bearing and payable on demand in coin. By 1862, Legal Tender Notes were introduced, and these notes were not redeemable on demand.
https://www.google.com/search?q=what+year+did+the+us+begin+printing+paper+money
Here's a list of major banking panics and crises in the US from 1860 to the present, along with key points:
1860s:
1865–1867 Recession: A recession that followed the Civil War, with some bank failures.
Late 19th Century:
Panic of 1873: A major
financial crisis that led to a 4-year depression and widespread bank
failures.
Panic of 1884: A regional
panic, primarily affecting New York and surrounding areas.
Panic of 1890 (Baring
Crisis): A crisis, mainly affecting the United Kingdom and Argentina, but
with some US repercussions.
Panic of 1893: A
significant financial panic with numerous bank failures.
Panic of 1896: An acute U.S. recession.
Early 20th Century:
Panic of 1901: A U.S.
economic recession, partly triggered by a dispute over the Northern Pacific
Railway.
Panic of 1907: A
financial crisis that led to bank failures and a recession.
Creation of the US Federal
Reserve in 1913.
Wall Street Crash of 1929: The beginning of the Great Depression, with significant impact on the banking sector.
Great Depression and Beyond:
1930s: Several bank
panics and closures, including those that occurred during the Great
Depression.
1980s and 1990s: The
Savings and Loan Crisis, leading to numerous bank failures.
2008 Financial Crisis: A
major global crisis that caused a significant number of bank failures in the
US.
2010s: A period with
numerous bank failures, peaking in 2010.
2023: A series of major bank failures, including Silicon Valley Bank, Signature Bank, and First Republic Bank.
https://www.google.com/search?q=list+of+us+bank+panics+by+year+from+1860+to+present
Comments
The Bank Panics from 1860 to 1913 were caused by Congress’ failure to increasing the money supply. Congress was busy and didn’t have a clue about how to manage the money supply. The Banks were also clueless until they ran out of money.
Congress delegated its
responsibility for “coining money” to the Federal Reserve in 1913 and things
didn’t improve.
The Federal Reserve didn’t increase the money supply when the banks ran out of money after the stock market crash in 1929. The result was the “Great Depression” with high unemployment from 1930 to 1936.
The Inflation since 1913 was created by increasing the money supply beyond what it needs to balance.
The U.S. established deposit insurance for banks in 1933 with the creation of the Federal Deposit Insurance Corporation (FDIC). This was done through the Banking Act of 1933, also known as the Glass-Steagall Act. The FDIC started insuring deposits on January 1, 1934. The initial deposit insurance limit was $2,500. Now in 2025 the standard FDIC deposit insurance limit is $250,000 per depositor, per insured bank, for each account ownership category. This insurance is funded by the Banks.
Excessive US Government Spending since 1965 has greatly devalued the US Dollar and caused record Inflation.
Comments
All of the Bank Panics in US History were caused by failures to focus on the money supply. Inflation is the result of printing too much money in response to excessive government spending. The Great Depression could have been averted by increasing money printing.
Norb Leahy, Dunwoody GA Tea Party Leader
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