United States Constitution
The United States Constitution is the supreme law of the United States of America. The Constitution, originally comprising seven articles, delineates the national frame of government, Articles Four and Six entrench concepts of federalism, describing the rights and responsibilities of state governments and of the states in relationship to the federal government. Article Seven establishes the procedure used by the thirteen States to ratify it. In general, the first ten amendments, known collectively as the Bill of Rights, offer specific protections of individual liberty, the majority of the seventeen amendments expand individual civil rights protections. Others address issues related to federal authority or modify government processes and procedures, Amendments to the United States Constitution, unlike ones made to many constitutions worldwide, are appended to the document. All four pages of the original U. S, according to the United States Senate, The Constitutions first three words—We the People—affirm that the government of the United States exists to serve its citizens.
From September 5,1774 to March 1,1781, the Continental Congress functioned as the government of the United States. The process of selecting the delegates for the First and Second Continental Congresses underscores the revolutionary role of the people of the colonies in establishing a governing body. The Articles of Confederation and Perpetual Union was the first constitution of the United States and it was drafted by the Second Continental Congress from mid-1776 through late-1777, and ratification by all 13 states was completed by early 1781. Under the Articles of Confederation, the governments power was quite limited. The Confederation Congress could make decisions, but lacked enforcement powers, implementation of most decisions, including modifications to the Articles, required unanimous approval of all thirteen state legislatures. The Continental Congress could print money but the currency was worthless, Congress could borrow money, but couldnt pay it back. No state paid all their U. S. taxes, some paid nothing, some few paid an amount equal to interest on the national debt owed to their citizens, but no more.
No interest was paid on debt owed foreign governments, by 1786, the United States would default on outstanding debts as their dates came due. Internationally, the Articles of Confederation did little to enhance the United States ability to defend its sovereignty, most of the troops in the 625-man United States Army were deployed facing – but not threatening – British forts on American soil. They had not been paid, some were deserting and others threatening mutiny, spain closed New Orleans to American commerce, U. S. officials protested, but to no effect. Barbary pirates began seizing American ships of commerce, the Treasury had no funds to pay their ransom, if any military crisis required action, the Congress had no credit or taxing power to finance a response. Domestically, the Articles of Confederation was failing to bring unity to the sentiments and interests of the various states
In 1682, William Penn, an English Quaker, founded the city to serve as capital of the Pennsylvania Colony. Philadelphia was one of the capitals in the Revolutionary War. In the 19th century, Philadelphia became an industrial center. It became a destination for African-Americans in the Great Migration. The areas many universities and colleges make Philadelphia a top international study destination, as the city has evolved into an educational, with a gross domestic product of $388 billion, Philadelphia ranks ninth among world cities and fourth in the nation. Philadelphia is the center of activity in Pennsylvania and is home to seven Fortune 1000 companies. The Philadelphia skyline is growing, with a market of almost 81,900 commercial properties in 2016 including several prominent skyscrapers. The city is known for its arts and rich history, Philadelphia has more outdoor sculptures and murals than any other American city. Fairmount Park, when combined with the adjacent Wissahickon Valley Park in the watershed, is one of the largest contiguous urban park areas in the United States.
The 67 National Historic Landmarks in the city helped account for the $10 billion generated by tourism, Philadelphia is the only World Heritage City in the United States. Before Europeans arrived, the Philadelphia area was home to the Lenape Indians in the village of Shackamaxon, the Lenape are a Native American tribe and First Nations band government. They are called Delaware Indians and their territory was along the Delaware River watershed, western Long Island. Most Lenape were pushed out of their Delaware homeland during the 18th century by expanding European colonies, Lenape communities were weakened by newly introduced diseases, mainly smallpox, and violent conflict with Europeans. Iroquois people occasionally fought the Lenape, surviving Lenape moved west into the upper Ohio River basin. The American Revolutionary War and United States independence pushed them further west, in the 1860s, the United States government sent most Lenape remaining in the eastern United States to the Indian Territory under the Indian removal policy.
In the 21st century, most Lenape now reside in the US state of Oklahoma, with communities living in Wisconsin, Ontario. The Dutch considered the entire Delaware River valley to be part of their New Netherland colony, in 1638, Swedish settlers led by renegade Dutch established the colony of New Sweden at Fort Christina and quickly spread out in the valley. In 1644, New Sweden supported the Susquehannocks in their defeat of the English colony of Maryland
Roger B. Taney
Roger Brooke Taney was the fifth Chief Justice of the Supreme Court, holding that office from 1836 until his death in 1864. He delivered the majority opinion in Dred Scott v. S and he was the first Roman Catholic appointed both to a presidential cabinet, as Attorney General under President Andrew Jackson, as well as to the Court. Taney, a Jacksonian Democrat, was made Chief Justice by Jackson, Taney was a believer in states rights. He inherited slaves from his father but manumitted them and gave pensions to the older ones and he believed that power and liberty were extremely important and if power became too concentrated, it posed a grave threat to individual liberty. He opposed attempts by the government to regulate or control matters that would restrict the rights of individuals. From Prince Frederick, Maryland, he had practiced law and politics simultaneously, after abandoning the Federalist Party as a losing cause, he rose to the top of the states Jacksonian machine. He was bought and sold and treated as an article of merchandise and traffic.
The court declared the Missouri Compromise unconstitutional, thus permitting slavery in all of the countrys territories, Taney died during the final months of the American Civil War on the same day that his home state of Maryland abolished slavery. Roger Brooke Taney was born on March 17,1777 in Calvert County, Maryland and he was the second son, and the third of seven children born to a slaveholding family of tobacco planters in Calvert County, Maryland. He received an education from a series of private tutors. After instructing him for a year, his last tutor, David English, at the age of 15 he entered Dickinson College in Pennsylvania, graduating with honors in 1795. As a younger son with no prospect of inheriting the family plantation and he read law and in 1799 was admitted to the bar. He quickly distinguished himself as one of Marylands most promising young lawyers, Taney married Anne Phoebe Charlton Key, sister of Francis Scott Key, on January 7,1806. In 1799, the year he began practicing as an attorney, Taney was elected to the Maryland House of Delegates.
He ran for re-election in 1800, but lost, returning to private practice, he served as a director of the State Bank Branch in Frederick, from 1810 to 1815. He was elected the Maryland State Senate in 1816, serving until 1821—this time as a Democratic Republican and he was a director of the Frederick County Bank from 1818 to 1823, when he returned to private practice. When the 1824 presidential election divided the party supporters and opponents of Andrew Jackson, Taney became a staunch Jacksonian Democrat. In 1833, as secretary of the Treasury, Taney ordered an end to the deposit of Federal money in the Second Bank of the United States, an act that killed the institution
Despite radical outcries among Federalists for New England secession and a separate peace with Great Britain, moderates outnumbered them and extreme proposals were not a major focus of the debate. The Federalists discussed their grievances with the Louisiana Purchase and the Embargo of 1807, under the administrations of George Washington and John Adams, a vigorous trade with France was maintained while both administrations engaged in an undeclared war with France. With the resumption of the Napoleonic Wars at the time that Thomas Jefferson assumed office. Jeffersons goal was an expansion of free trade created by Great Britain lifting trade restrictions placed against the United States, however, to force Britain into compliance, he adopted anti-foreign trade policies such as the Embargo Act of 1807 and the Non-Intercourse Act of 1809. These policies were unpopular among Northeastern merchants and shippers. Jeffersons successor, President James Madison, and what is now called the Democratic-Republican Party, when Madison was re-elected in 1812 the discontent in New England intensified.
In late 1813 Madison signed a more restrictive embargo act than any of those approved by Jefferson, by the summer of 1814, the war had turned against the Americans. After ending their war with Napoleonic France, Great Britain was able to more resources to North America and had effectively blockaded the entire eastern coastline. A naval assault on Boston was expected in the near future, free trade with the rest of the world had virtually ceased, thousands were thrown out of work, and by August banks were suspending specie payment. The federal government was approaching bankruptcy, New England governors followed a policy of giving minimal support to the Federal government in waging the war. With the exception of Governor John Taylor Gilman of New Hampshire, New Englanders were reluctant to have their militia, needed to defend their coasts from British attacks, assigned elsewhere or placed under the command of the regular army. General Winfield Scott, after the war, blamed Madisons policy of ignoring Federalists, who in New England constituted the best educated class, the anti-war sentiment in Massachusetts was so strong that even Samuel Dexter, the Democratic-Republican candidate for governor, opposed the national partys commerce policies.
In September Governor Strong refused a request to provide and support 5,000 troops to retake territory in Maine, because Massachusetts and Connecticut had refused to subject their militia to the orders of the War Department, Madison declined to pay their expenses. Consequently, critics said that Madison had abandoned New England to the common enemy, the Massachusetts Legislature appropriated $1 million to support a state army of 10,000 men. Harrison Gray Otis, who inspired these measures, suggested that the Eastern States meet at a convention in Hartford, as early as 1804 some New England Federalists had discussed secession from the Union if the national government became too oppressive. In September 1814 Madison asked Congress for a conscription bill, Thomas Grosvenor of New York saw this as the result of the administration leading the country defenseless and naked, into that lake of blood she is yet swimming. Secession was again mentioned in 1814–1815, all but one leading Federalist newspaper in New England supported a plan to expel the western states from the Union.
Otis, the key leader of the Convention, blocked radical proposals such as a seizure of the Federal customs house, impounding federal funds, or declaring neutrality
History of the United States public debt
The United States has continuously had a fluctuating public debt since then, except for about a year during 1835–1836. To allow comparisons over the years, public debt is expressed as a ratio to gross domestic product. Historically, the United States public debt as a share of GDP has increased during wars and recessions, the United States public debt as a percentage of GDP reached its highest level during Harry Trumans first presidential term and after World War II. Public debt as a percentage of GDP fell rapidly in the post-World War II period, Debt as a share of GDP has consistently increased since then, except during the terms of presidents Jimmy Carter and Bill Clinton. Public debt rose during the 1980s, as President Reagan cut tax rates and it fell during the 1990s, due to decreased military spending, increased taxes and the 1990s boom. Public debt rose sharply in the wake of the 2007–08 financial crisis, except for about a year during 1835–1836, the United States has continuously had a fluctuating public debt since its Constitution went into effect on March 4,1789.
On the founding of the United States, the affairs of the new federation were in disarray. Northern states had accumulated a huge amount of debt during the war, amounting to $21.5 million, and wanted the federal government to assume their burden. The Southern states, which had lower or no debts, whose citizens would pay a portion of this debt if the federal government assumed it, were disinclined to accept the proposal. James Madison, a representative from Virginia, led a group of legislators from the South in blocking the provision, Jefferson supported Madison The plan was finally adopted as part of the Compromise of 1790, as the Funding Act of 1790. Historian Max M. Edling has explained how assumption worked and it was the critical issue, the location of the capital was a bargaining ploy. Hamilton proposed that the federal Treasury take over and pay off all the debt states had incurred to pay for the American Revolution. The Treasury would issue bonds that rich people would buy, thereby giving the rich a tangible stake in the success of the national government, Hamilton proposed to pay off the new bonds with revenue from a new tariff on imports.
Jefferson originally approved the scheme, but Madison had turned him around by arguing that federal control of debt would consolidate too much power in the national government, Edling points out that after its passage in 1790, the assumption was accepted. Madison did try to pay speculators below 100%, but they were paid the value of the state debts they held regardless of how little they paid for them. When Jefferson became president he continued the system, the credit of the U. S. was solidly established at home and abroad, and Hamilton was successful in signing up many of the bondholders in his new Federalist Party. Good credit allowed Jeffersons Treasury Secretary Albert Gallatin to borrow in Europe to finance the Louisiana Purchase in 1803, the Southern states extracted a major concession from Hamilton in the recalculation of their debt under the fiscal plan. For example, in the case of Virginia, an arrangement was contrived, in which Virginia paid $3.4 million to the federal government
Morrill Land-Grant Acts
The Morrill Land-Grant Acts are United States statutes that allowed for the creation of land-grant colleges in U. S. states using the proceeds of federal land sales. The Morrill Act of 1862 was enacted during the American Civil War, for 20 years prior to the first introduction of the bill in 1857, there was a political movement calling for the creation of agriculture colleges. The movement was led by Professor Jonathan Baldwin Turner of Illinois College, for example, the Michigan Constitution of 1850 called for the creation of an agricultural school, though it was not until February 12,1855, that Michigan Governor Kinsley S. Unlike the Turner Plan, which provided a grant to each state. This was more advantageous to the populous eastern states. The Morrill Act was first proposed in 1857, and was passed by Congress in 1859, in 1861, Morrill resubmitted the act with the amendment that the proposed institutions would teach military tactics as well as engineering and agriculture. Aided by the secession of states that did not support the plans.
The previous day Lincoln signed a bill financing the railroad with land grants. Less than two months earlier he signed the Homestead Act encouraging western settlement, together these actions, taken at a time when the Union Army was poorly performing, did much to define post-Civil War America. Under the act, each state received a total of 30,000 acres of federal land, either within or contiguous to its boundaries. This land, or the proceeds from its sale, was to be used toward establishing and funding the educational institutions described above. After the war, the 1862 Act was extended to the former Confederate states, it was extended to every state and territory. 8 On September 11,1862, the state of Iowa was the first to accept the terms of the Morrill Act which provided the funding boost needed for the fledgling State Agricultural College and Model Farm. The first land-grant institution actually created under the Act was Kansas State University, which was established on February 16,1863, before the Civil War American engineers were mostly educated at West Point.
While the Congressional debate associated with the Morrill Act was largely focused on benefits to agriculture, after the Civil War, as the German University model began to replace the English College, with the encouragement of the Morrill Act the engineering discipline was gradually defined. Because the Morrill Act excluded spending on buildings, engineering specific infrastructure such as textbooks, in 1866 there were around 300 American men with engineering degrees and six reputable colleges granting them. By 1911 the United States was graduating 3000 engineers a year, the Morrill Act coincided with the establishment of engineering in the American university. With a few exceptions, nearly all of the Land-Grant Colleges are public, to maintain their status as land-grant colleges, a number of programs are required to be maintained by the college
American Revolutionary War
From about 1765 the American Revolution had led to increasing philosophical and political differences between Great Britain and its American colonies. The war represented a culmination of these differences in armed conflict between Patriots and the authority which they increasingly resisted. This resistance became particularly widespread in the New England Colonies, especially in the Province of Massachusetts Bay. On December 16,1773, Massachusetts members of the Patriot group Sons of Liberty destroyed a shipment of tea in Boston Harbor in an event that became known as the Boston Tea Party. Named the Coercive Acts by Parliament, these became known as the Intolerable Acts in America. The Massachusetts colonists responded with the Suffolk Resolves, establishing a government that removed control of the province from the Crown outside of Boston. Twelve colonies formed a Continental Congress to coordinate their resistance, and established committees, British attempts to seize the munitions of Massachusetts colonists in April 1775 led to the first open combat between Crown forces and Massachusetts militia, the Battles of Lexington and Concord.
Militia forces proceeded to besiege the British forces in Boston, forcing them to evacuate the city in March 1776, the Continental Congress appointed George Washington to take command of the militia. Concurrent to the Boston campaign, an American attempt to invade Quebec, on July 2,1776, the Continental Congress formally voted for independence, issuing its Declaration on July 4. Sir William Howe began a British counterattack, focussing on recapturing New York City, Howe outmaneuvered and defeated Washington, leaving American confidence at a low ebb. Washington captured a Hessian force at Trenton and drove the British out of New Jersey, in 1777 the British sent a new army under John Burgoyne to move south from Canada and to isolate the New England colonies. However, instead of assisting Burgoyne, Howe took his army on a campaign against the revolutionary capital of Philadelphia. Burgoyne outran his supplies, was surrounded and surrendered at Saratoga in October 1777, the British defeat in the Saratoga Campaign had drastic consequences.
Giving up on the North, the British decided to salvage their former colonies in the South, British forces under Lieutenant-General Charles Cornwallis seized Georgia and South Carolina, capturing an American army at Charleston, South Carolina. British strategy depended upon an uprising of large numbers of armed Loyalists, in 1779 Spain joined the war as an ally of France under the Pacte de Famille, intending to capture Gibraltar and British colonies in the Caribbean. Britain declared war on the Dutch Republic in December 1780, in 1781, after the British and their allies had suffered two decisive defeats at Kings Mountain and Cowpens, Cornwallis retreated to Virginia, intending on evacuation. A decisive French naval victory in September deprived the British of an escape route, a joint Franco-American army led by Count Rochambeau and Washington, laid siege to the British forces at Yorktown. With no sign of relief and the situation untenable, Cornwallis surrendered in October 1781, Whigs in Britain had long opposed the pro-war Tory majority in Parliament, but the defeat at Yorktown gave the Whigs the upper hand
John Jay was an American statesman, diplomat, one of the Founding Fathers of the United States, signatory of the Treaty of Paris, and first Chief Justice of the United States. Jay was born into a family of merchants and government officials in New York City. He became a lawyer and joined the New York Committee of Correspondence and he joined a conservative political faction that, fearing mob rule, sought to protect property rights and maintain the rule of law while resisting British rule. Jay served as the President of the Continental Congress, a position with little power. His major diplomatic achievement was to negotiate trade terms with Great Britain in the Jay Treaty in 1794. Jay, a proponent of strong, centralized government, worked to ratify the U. S, constitution in New York in 1788 by pseudonymously writing five of The Federalist Papers, along with the main authors Alexander Hamilton and James Madison. After the establishment of the U. S. government, Jay became the first Chief Justice of the United States, as a leader of the new Federalist Party, Jay was the Governor of the State of New York, where he became the states leading opponent of slavery.
His first two attempts to end slavery in New York in 1777 and 1785 failed, but a third in 1799 succeeded, the 1799 Act, a gradual emancipation he signed into law, eventually granted all slaves in New York their freedom before his death in 1829. The Jays were a prominent merchant family in New York City, in 1685 the Edict of Nantes had been revoked, thereby abolishing the rights of Protestants and confiscating their property. Among those affected was Jays paternal grandfather, Augustus Jay and he moved from France to New York, where he built a successful merchant empire. Jays father, Peter Jay, born in New York City in 1704, became a trader in furs, timber. Johns mother was Mary Van Cortlandt, who had married Peter Jay in 1728 and they had ten children together, seven of whom survived into adulthood. Marys father, Jacobus Van Cortlandt, had born in New Amsterdam in 1658. Cortlandt served on the New York Assembly, was mayor of New York City. Two of his children married into the Jay family, Jay spent his childhood in Rye.
He was educated there by his mother until he was eight years old, in 1756, after three years, he would return to homeschooling in Rye under the tutelage of his mother and George Murray. In 1760, Jay attended Kings College, during this time, Jay made many influential friends, including his closest, Robert Livingston—the son of a prominent New York aristocrat and Supreme Court justice. Jay took the political stand as his father, a staunch Whig
George Washington was an American politician and soldier who served as the first President of the United States from 1789 to 1797 and was one of the Founding Fathers of the United States. He served as Commander-in-Chief of the Continental Army during the American Revolutionary War and he is popularly considered the driving force behind the nations establishment and came to be known as the father of the country, both during his lifetime and to this day. Washington was widely admired for his leadership qualities and was unanimously elected president by the Electoral College in the first two national elections. Washingtons incumbency established many precedents still in use today, such as the system, the inaugural address. His retirement from office two terms established a tradition that lasted until 1940 when Franklin Delano Roosevelt won an unprecedented third term. The 22nd Amendment now limits the president to two elected terms and he was born into the provincial gentry of Colonial Virginia to a family of wealthy planters who owned tobacco plantations and slaves, which he inherited.
In his youth, he became an officer in the colonial militia during the first stages of the French. In 1775, the Second Continental Congress commissioned him as commander-in-chief of the Continental Army in the American Revolution, in that command, Washington forced the British out of Boston in 1776 but was defeated and nearly captured that year when he lost New York City. After crossing the Delaware River in the middle of winter, he defeated the British in two battles, retook New Jersey, and restored momentum to the Patriot cause and his strategy enabled Continental forces to capture two major British armies at Saratoga in 1777 and Yorktown in 1781. In battle, Washington was repeatedly outmaneuvered by British generals with larger armies, after victory had been finalized in 1783, Washington resigned as commander-in-chief rather than seize power, proving his opposition to dictatorship and his commitment to American republicanism. Washington presided over the Constitutional Convention in 1787, which devised a new form of government for the United States.
Following his election as president in 1789, he worked to unify rival factions in the fledgling nation and he supported Alexander Hamiltons programs to satisfy all debts and state, established a permanent seat of government, implemented an effective tax system, and created a national bank. In avoiding war with Great Britain, he guaranteed a decade of peace and profitable trade by securing the Jay Treaty in 1795 and he remained non-partisan, never joining the Federalist Party, although he largely supported its policies. Washingtons Farewell Address was a primer on civic virtue, warning against partisanship, sectionalism. He retired from the presidency in 1797, returning to his home, upon his death, Washington was eulogized as first in war, first in peace, and first in the hearts of his countrymen by Representative Henry Lee III of Virginia. He was revered in life and in death and public polling consistently ranks him among the top three presidents in American history and he has been depicted and remembered in monuments, public works and other dedications to the present day.
He was born on February 11,1731, according to the Julian calendar, the Gregorian calendar was adopted within the British Empire in 1752, and it renders a birth date of February 22,1732. Washington was of primarily English gentry descent, especially from Sulgrave and his great-grandfather John Washington emigrated to Virginia in 1656 and began accumulating land and slaves, as did his son Lawrence and his grandson, Georges father Augustine
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States consisting of two chambers, the Senate and the House of Representatives. The Congress meets in the Capitol in Washington, D. C, both senators and representatives are chosen through direct election, though vacancies in the Senate may be filled by a gubernatorial appointment. Members are usually affiliated to the Republican Party or to the Democratic Party, Congress has 535 voting members,435 Representatives and 100 Senators. The House of Representatives has six non-voting members in addition to its 435 voting members and these members can, sit on congressional committees and introduce legislation. Puerto Rico, American Samoa, the Northern Mariana Islands, the members of the House of Representatives serve two-year terms representing the people of a single constituency, known as a district. Congressional districts are apportioned to states by using the United States Census results. Each state, regardless of population or size, has two senators, there are 100 senators representing the 50 states.
Each senator is elected at-large in their state for a term, with terms staggered. The House and Senate are equal partners in the legislative process—legislation cannot be enacted without the consent of both chambers, the Constitution grants each chamber some unique powers. The Senate ratifies treaties and approves presidential appointments while the House initiates revenue-raising bills, the House initiates impeachment cases, while the Senate decides impeachment cases. A two-thirds vote of the Senate is required before a person can be forcibly removed from office. The term Congress can refer to a meeting of the legislature. A Congress covers two years, the current one, the 115th Congress, began on January 3,2017, the Congress starts and ends on the third day of January of every odd-numbered year. Members of the Senate are referred to as senators, members of the House of Representatives are referred to as representatives, congressmen, or congresswomen. One analyst argues that it is not a solely reactive institution but has played a role in shaping government policy and is extraordinarily sensitive to public pressure.
Several academics described Congress, Congress reflects us in all our strengths, Congress is the governments most representative body. Congress is essentially charged with reconciling our many points of view on the public policy issues of the day. —Smith and Wielen Congress is constantly changing and is constantly in flux, most incumbents seek re-election, and their historical likelihood of winning subsequent elections exceeds 90 percent
National Bank Act
The National Banking Acts of 1863 and 1864 were two United States federal banking acts that established a system of national banks for banks, and created the United States National Banking System. They encouraged development of a currency backed by bank holdings of U. S. The Act shaped todays national banking system and its support of a uniform U. S. banking policy, after the expiration of the Second Bank of the United States in 1836, the control of banking regimes devolved mostly to the states. Different states adopted policies including a ban on banking, a single state-chartered bank, limited chartering of banks. While the relative success of New Yorks free banking laws led a number of states to adopt a free-entry banking regime. Though all banknotes were denominated in dollars, notes would often circulate at a steep discount in states beyond their issue. In addition, there were well-publicized frauds arising in states like Michigan, the perception of dangerous wildcat banking, along with the poor integration of the U. S. banking system, led to increasing public support for a uniform national banking regime.
The United States Government, on the hand, still had limited taxation capabilities. In 1846, the Polk Administration created a United States Treasury system that moved public funds from banks to Treasury branches in order to fund the Mexican–American War. However, without a currency, the revenue generated this way was limited. Many thought this promise backing the bills was about as good as the green ink printed on one side, hence the name greenbacks. The Second Legal Tender Act, enacted July 11,1862, a Joint Resolution of Congress, the largest amount of greenbacks outstanding at any one time was calculated as $447,300,203.10. The National Banking Act, originally known as the National Currency Act, was passed in the Senate by a 23–21 vote, the main goal of this act was to create a single national currency and to eradicate the problem of notes from multiple banks circulating simultaneously. The Act established national banks that could issue notes which were backed by the United States Treasury, the quantity of notes that a bank was allowed to issue was proportional to the banks level of capital deposited with the Comptroller of the Currency at the Treasury.
To further control the currency, the Act taxed notes issued by state and local banks, the National Banking Act of 1863 was superseded by the National Banking Act of 1864 just one year later. The new act established federally-issued bank charters, which took banking out of the hands of state governments, before the act, charters were granted by state legislatures. They were under pressure and could be influenced by bribes. The first bank to receive a charter was the First National Bank of Philadelphia, Pennsylvania