What is the national bank act of 1863?

Question

its a good 10 points for someone give a good answer.

Answer 1

It was a bank act that created new national banks that had to invest 1/3 of their capital into government securities. They were then allowed to issue U.S.treasury notes as currency (bank notes). This gave stability to the Union currency by creating a form of currency that was accepted throughout the Union states as legal tender.

Answer 2

National Banking Act

Answer 3

The National Bank Act of 1863 provided for the federal charter and supervision of a system of banks known as national banks. They were to circulate a stable, uniform national currency secured by federal bonds deposited by each bank with the comptroller of the currency (often called the national banking administrator). The Act regulated the minimum capital requirements of national banks, the kinds of loans they could make, and the reserves that were to be held against notes and deposits. It also provided for the supervision and examination of banks and for the protection of noteholders. While the 1863 act did not prohibit state banks from issuing their own currency, Congress did impose a 10 percent tax on state banknotes that effectively eliminated such a rival currency.

The inflexibility of national banknote supplies and a lack of reserves led to the formation of the Federal Reserve System in 1913. By 1935 the national banks had transferred their note-issuing powers to the Federal Reserve. The national banks have become primarily commercial in nature, although some also maintain savings and trust functions. They are required to be members of the Federal Reserve System.

Answer 4

The National Bank Act was a federal law that established a system of national charters for banks. The goal of the Act was that it would encourage development of a United States currency. The National Bank Act helped raise money for the government during the American Civil War when it was needed so badly by enticing banks to buy federal bonds. Overall, the law was a failure and was replaced by the National Bank Act of 1864.

Answer 5

No. It isn't. In fact just the opposite is in the 10th Amendment. "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." Bearing in mind that this is from the same administration that signed an ex post facto "law" about bonuses. If SCOTUS finds for the Feds we might as well tear up the Constitution because that's game over right there. The Founding Fathers aren't rolling over in their graves. They're doing back flips.