Compare the National Banking Acts of 1863 with the chartering of the First and Second Banks of the United States. Specifically, address the motivations behind each and the impact that each had on 19th-century banking in the United States.(4 points)

Answer 1

The National Banking Acts of 1863 were a series of laws passed by the United States Congress in order to create a system of national banks and maintain a more stable banking system during the Civil War. The motivations behind these acts were to establish a national currency, provide a way to finance the war effort, and create a unified banking system across the country. The impact of the National Banking Acts was a significant increase in the number of national banks, the creation of a national currency, and a more regulated banking system that helped to stabilize the economy.

On the other hand, the chartering of the First and Second Banks of the United States were also motivated by the need for a stable financial system in the newly formed United States. The First Bank of the United States was chartered in 1791 by Alexander Hamilton in order to manage the country's debt and provide a stable currency. The Second Bank of the United States was chartered in 1816 after the expiration of the first bank's charter, with similar motivations of managing the country's finances and providing a stable banking system. The impact of these banks was a more centralized banking system, increased access to credit for businesses and individuals, and a more stable currency.

Overall, both the National Banking Acts of 1863 and the chartering of the First and Second Banks of the United States were motivated by the need for a stable banking system and currency in the United States. Each had a significant impact on 19th-century banking by providing a more regulated and stable financial system that helped to fuel the country's economic growth.