Coinage Act of 1857
The Coinage Act of 1857 was an act of the United States Congress which ended the status of foreign coins as legal tender, repealing all acts "authorizing the currency of foreign gold or silver coins". Specific coins would be re-coined; the act is divided into seven sections. Before the Act, foreign coins, such as the Spanish dollar, were used and allowed as legal tender by the Act of April 10, 1806; the Coinage Act of 1857 discontinued the half cent. Furthermore, the penny was reduced in size; the large cent was discontinued and regular coinage of the Flying Eagle cent began. In the newly created union after the Revolutionary War and up until 1792 and the establishment of the US mint, the sole medium of exchange in terms of specie was foreign coin. Alexander Hamilton had proposed that foreign coin circulate for a period of three years until the new mint in Philadelphia was running at full capacity in order to have a smooth transition; this clause was renewed several times after being first spelled out on April 10, 1806.
By 1830, about 25% of all circulating coins were milled of Spanish origin. President Andrew Jackson supported foreign coin as legal tender in his famous war with the Bank of the US in the Gold Bill; this new development ended up making it difficult for the US to retain its overvalued worn Spanish silver in the 1840s. By the late 1840s and early 1850s, the US mint had been able to match demand for foreign coin; the Coinage Act of 1857 repealed prior legal tender laws concerning foreign specie. It fixed the weight and measure of US one-cent pieces at 4.655 grams, composed of 88% copper and 12% nickel. It mandated that this new copper/nickel alloy be received as payment for the worn gold and silver coins turned in at the mint; the effective aim was to limit the domestic money supply by crushing European competition. This was the first major step towards the government having a monopoly over the money supply; the act drastically altered American business. For decades, those who had accepted any form of payment as long as it was made of specie began to only tolerate those newly minted with a fresh seal from the US government.
Due to insatiable demand early on for the new federal cents and the profits to be made by collecting the foreign silver, many individuals, along with banks, competed with each other. The newly minted American silver made much of the foreign silver obsolete in the eyes of some. There was the ever-present issue of the non-decimal system used in foreign coin, making prices subject to fractions of a cent and therefore payments were inconvenient. Still, circulation of foreign coins lasted for decades longer in the rural interior. Coinage Act of 1792 Coinage Act of 1834 Coinage Act of 1849 Coinage Act of 1853 Coinage Act of 1864 Coinage Act of 1873 Coinage Act of 1965 Martin, David A. "The Changing Role of Foreign Money in the United States, 1782–1857", Journal of Economic History, 37: 1009–1027, doi:10.1017/s002205070009478x, JSTOR 2119352. Full text of act at the American Memory
56th United States Congress
The Fifty-sixth United States Congress was a meeting of the legislative branch of the United States federal government, composed of the United States Senate and the United States House of Representatives. It met in Washington, DC from March 4, 1899, to March 4, 1901, during the third and fourth years of William McKinley's presidency; the apportionment of seats in this House of Representatives was based on the Eleventh Census of the United States in 1890. Both chambers had a Republican majority. There was one African-American member, George Henry White of North Carolina, who served his second and final term as a Representative in this Congress, would be the last black member of Congress until 1928, the last black member of Congress from the South until 1972. June 2, 1899: The Filipino Rebellion began the Philippine–American War. November 21, 1899: Vice President Garret Hobart died. January 8, 1900: President McKinley placed Alaska under military rule. January 17, 1900: Brigham H. Roberts was refused a seat in the United States House of Representatives because of his polygamy.
February 5, 1900: Britain and the United States signed a treaty for the building of a Central American shipping canal through Nicaragua. February 16, 1900: The United States and Great Britain ratified the Tripartite Convention partitioning the Samoan Islands. November 6, 1900: U. S. presidential election, 1900: Republican incumbent William McKinley was reelected by defeating Democratic challenger William Jennings Bryan. March 14, 1900: Gold Standard Act, Sess. 1, ch. 41, 31 Stat. 45 April 2, 1900: Foraker Act, Sess. 1, ch. 191, 31 Stat. 77 The count below identifies party affiliations at the beginning of the first session of this Congress, includes members from vacancies and newly admitted states, when they were first seated. Changes resulting from subsequent replacements are shown below in the "Changes in membership" section. President: Garret Hobart, until November 21, 1899. President pro tempore: William P. Frye Democratic Caucus Chairman: James K. Jones Republican Conference Chairman: William B. Allison Democratic Campaign Committee Chairman: Stephen M. White Speaker: David B. Henderson Democratic Caucus Chairman: James Hay Republican Conference Chairman: Joseph G. Cannon Majority Leader: Sereno E. Payne Majority Whip: James A. Tawney Minority Leader: James D. Richardson Minority Whip: Oscar Underwood This list is arranged by chamber by state.
Senators are listed by class, Representatives are listed by district. Skip to House of Representatives, below At this time, Senators were elected by the state legislatures every two years, with one-third beginning new six-year terms with each Congress. Preceding the names in the list below are Senate class numbers, which indicate the cycle of their election. In this Congress, Class 1 meant their term began with this Congress, requiring re-election in 1904; the count below reflects changes from the beginning of the first session of this Congress. Replacements: 7 Democratic: no net change Republican: 1 seat loss Populist: 1 seat gain deaths: 3 resignations: 1 vacancy: 5 interim appointments: 2 Total seats with changes: 9 replacements: 21 Democratic: 5 seat loss Republican: 5 seat gain Populist: no net change deaths: 12 resignations: 7 contested election: 3 new seats: 1 Total seats with changes: 26 Lists of committees and their party leaders, for members of the committees and their assignments, go into the Official Congressional Directory at the bottom of the article and click on the link, in the directory after the pages of terms of service, you will see the committees of the Senate and Joint and after the committee pages, you will see the House/Senate committee assignments in the directory, on the committees section of the House and Senate in the Official Congressional Directory, the committee's members on the first row on the left side shows the chairman of the committee and on the right side shows the ranking member of the committee.
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Federal Reserve Bank Note
Federal Reserve Bank Notes are banknotes that are legal in the United States issued between 1915 and 1934, together with United States Notes, silver certificates, Gold Certificates, National Bank Notes and Federal Reserve Notes. They had the same value as other kinds of notes of similar value. Federal Reserve Bank Notes are different from Federal Reserve Notes in that they are backed by one of the twelve Federal Reserve Banks, rather than by all collectively, they were backed in a similar way to National Bank Notes, using U. S. bonds, but issued by Federal Reserve banks instead of by chartered National banks. Federal Reserve Bank Notes are no longer issued. S. banknotes still in production since 1971 are the Federal Reserve Notes. Large size Federal Reserve Bank Notes were first issued in 1915 in denominations of $5, $10, $20, using a design that shared elements with both the National Bank Notes and the Federal Reserve Notes of the time. Additional denominations of $1, $2, $50 were issued in 1918.
Small size Federal Reserve Bank Notes were printed as an emergency issue in 1933 using the same paper stock as National Bank Notes. They were printed in denominations of $5 through $100. A National Bank Note has a line for the signature of the president of the national bank; the small size Federal Reserve Bank Note printed a bar over the label for this line, since Federal Reserve Banks had governors, not presidents. The wording was changed to add, "Or by like deposit of other securities" after the phrase, "Secured by United States bonds deposited with the Treasurer of the United States of America"; the twelve Federal Reserve Districts appear on the bills as black alphabetically sequenced letters, from "A" to "L", a system followed today on the $1 and $2 bills. This emergency issue of notes was prompted by the public hoarding of cash due to many bank failures happening at the time; this limited the ability of the National Banks to issue notes of their own. Small size Federal Reserve Bank Notes were discontinued in 1934 and have been no longer available from banks since 1945.
As small size notes, they have serial numbers, as do National Bank Notes of the era. But while they look similar, both have the words, "National Currency" across the top of the obverse, they had different issuers and are considered to be distinctly different types of bills
Federal Open Market Committee
The Federal Open Market Committee, a committee within the Federal Reserve System, is charged under United States law with overseeing the nation's open market operations. This Federal Reserve committee makes key decisions about interest rates and the growth of the United States money supply; the FOMC is the principal organ of United States national monetary policy. The Committee sets monetary policy by specifying the short-term objective for the Fed's open market operations, a target level for the federal funds rate; the FOMC directs operations undertaken by the Federal Reserve System in foreign exchange markets, although any intervention in foreign exchange markets is coordinated with the U. S. Treasury, which has responsibility for formulating U. S. policies regarding the exchange value of the dollar. The Committee consists of the seven members of the Federal Reserve Board, the president of the New York Fed, four of the other eleven regional Federal Reserve Bank presidents, serving one year terms.
The Fed chair has been invariably appointed by the committee as its chair since 1935, solidifying the perception of the two roles as one. The Federal Open Market Committee was formed by the Banking Act of 1933, did not include voting rights for the Federal Reserve Board of Governors; the Banking Act of 1935 revised these protocols to include the Board of Governors and to resemble the present-day FOMC, was amended in 1942 to give the current structure of twelve voting members. Four of the Federal Reserve Bank presidents serve one-year terms on a rotating basis; the rotating seats are filled from the following four groups of banks, one bank president from each group: Boston and Richmond. The New York President always has a voting membership. All of the Reserve Bank presidents those who are not voting members of the FOMC, attend Committee meetings, participate in discussions, contribute to the Committee's assessment of the economy and policy options; the Committee meets eight times a year once every six weeks.
By law, the FOMC must meet at least four times each year in Washington, D. C. Since 1981, eight scheduled meetings have been held each year at intervals of five to eight weeks. If circumstances require consultation or consideration of an action between these regular meetings, members may be called on to participate in a special meeting or a telephone conference, or to vote on a proposed action by proxy. At each scheduled meeting, the Committee votes on the policy to be carried out during the interval between meetings. Attendance at meetings is restricted because of the confidential nature of the information discussed and is limited to Committee members, nonmember Reserve Bank presidents, staff officers, the Manager of the System Open Market Account, a small number of Board and Reserve Bank staff. Before each scheduled meeting of the FOMC, System staff prepare written reports on past and prospective economic and financial developments that are sent to Committee members and to nonmember Reserve Bank presidents.
Reports prepared by the Manager of the System Open Market Account on operations in the domestic open market and in foreign currencies since the last regular meeting are distributed. At the meeting itself, staff officers present oral reports on the current and prospective business situation, on conditions in financial markets, on international financial developments. In its discussions, the Committee considers factors such as trends in prices and wages and production, consumer income and spending and commercial construction, business investment and inventories, foreign exchange markets, interest rates and credit aggregates, fiscal policy; the Manager of the System Open Market Account reports on account transactions since the previous meeting. After these reports, the Committee members and other Reserve Bank presidents turn to policy; each participant expresses his or her own views on the state of the economy and prospects for the future and on the appropriate direction for monetary policy. Each makes a more explicit recommendation on policy for the coming intermeeting period.
The Committee must reach a consensus regarding the appropriate course for policy, incorporated in a directive to the Federal Reserve Bank of New York—the Bank that executes transactions for the System Open Market Account. The directive is cast in terms designed to provide guidance to the Manager in the conduct of day-to-day open market operations; the directive sets forth the Committee's objectives for long-run growth of certain key monetary and credit aggregates. It sets forth operating guidelines for the degree of ease or restraint to be sought in reserve conditions and expectations with regard to short-term rates of growth in the monetary aggregates. Policy is implemented with emphasis on supplying reserves in a manner consistent with these objectives and with the nation's broader economic objectives. Under the Federal Reserve Act, the Chairman of the Board of Governors of the Federal Reserve System must appear before Congressional hearings at least twice per year regarding "the efforts, activities and plans of the Board and the Federal Open Market Committee with respect to the conduct of monetary policy".
The statute requires that the Chairman appear before the House Committee on Financial Services in February and July of odd-numbered years, bef
History of central banking in the United States
This history of central banking in the United States encompasses various bank regulations, from early "wildcat" practices through the present Federal Reserve System. Some Founding Fathers were opposed to the formation of a central banking system. Others were in favor of a central bank. Robert Morris, as Superintendent of Finance, helped to open the Bank of North America in 1782, has been accordingly called by Thomas Goddard "the father of the system of credit and paper circulation in the United States." As ratification in early 1781 of the Articles of Confederation had extended to Congress the sovereign power to generate bills of credit, it passed that year an ordinance to incorporate a subscribed national bank following in the footsteps of the Bank of England. However, it was thwarted in fulfilling its intended role as a nationwide central bank due to objections of "alarming foreign influence and fictitious credit", favoritism to foreigners and unfair policies against less corrupt state banks issuing their own notes, such that Pennsylvania's legislature repealed its charter to operate within the Commonwealth in 1785.
In 1791, former Morris aide and chief advocate for Northern mercantile interests, Alexander Hamilton, the Secretary of the Treasury, accepted a compromise with the Southern lawmakers to ensure the continuation of Morris's Bank project. As a result, the First Bank of the United States was chartered by Congress within the year and signed by George Washington soon after; the First Bank of the United States was modeled after the Bank of England and differed in many ways from today's central banks. For example, it was owned by foreigners, who shared in its profits, it was not responsible for the country's supply of bank notes. It was responsible for only 20% of the currency supply. Several founding fathers bitterly opposed the Bank. Thomas Jefferson saw it as an engine for speculation, financial manipulation, corruption. In 1811 its twenty-year charter was not renewed by Congress. Absent the federally chartered bank, the next several years witnessed a proliferation of federally issued Treasury Notes to create credit as the government struggled to finance the War of 1812.
After five years, the federal government chartered its successor, the Second Bank of the United States. James Madison signed the charter with the intention of stopping runaway inflation that had plagued the country during the five-year interim, it was a copy of the First Bank, with branches across the country. Andrew Jackson, who became president in 1828, denounced the bank as an engine of corruption, his destruction of the bank was a major political issue in the 1830s and shaped the Second Party System, as Democrats in the states opposed banks and Whigs supported them. He refused to renew its charter. Jackson attempted to counteract this by executive order requiring all Federal land payments to be made in gold or silver; this produced the Panic of 1837. In this period, only state-chartered banks existed, they could issue bank notes against specie and the states regulated their own reserve requirements, interest rates for loans and deposits, the necessary capital ratio etc. These banks had existed in parallel with the Banks of the United States.
The Michigan Act allowed the automatic chartering of banks that would fulfill its requirements without special consent of the state legislature. This legislation made creating unstable banks easier by lowering state supervision in states that adopted it; the real value of a bank bill was lower than its face value, the issuing bank's financial strength determined the size of the discount. By 1797 there were 24 chartered banks in the U. S.. During the free banking era, the banks were short-lived compared to today's commercial banks, with an average lifespan of five years. About half of the banks failed, about a third of which went out of business because they could not redeem their notes. During the free banking era, some local banks took over the functions of a central bank. In New York, the New York Safety Fund provided deposit insurance for member banks. In Boston, the Suffolk Bank guaranteed that bank notes would trade at near par value, acted as a private bank note clearinghouse; the National Banking Act of 1863, besides providing loans in the Civil War effort of the Union, included provisions: To create a system of national banks.
They were to have higher standards concerning reserves and business practices than state banks. Recent research indicates; the office of Comptroller of the Currency was created to supervise these banks. To create a uniform national currency. To achieve this, all national banks were required to accept each other's currencies at par value; this eliminated the risk of loss in case of bank default. The notes were printed by the Comptroller of the Currency to ensure uniform quality and prevent counterfeiting. To finance the war, national banks were required to secure their notes by holding Treasury securities, enlarging the
The Bank War refers to the political struggle that developed over the issue of rechartering the Second Bank of the United States during the presidency of Andrew Jackson. The affair resulted in the destruction of its replacement by various state banks. Jacksonian Democrats cited a long list of criticisms in opposing the BUS. According to them, the BUS favored speculators at the expense of farmers and artisans, it owned large amounts of land in the West, possessed enormous material resources with the ability to make or break small towns, appropriated public money for risky private investments, in general, symbolized corruption while threatening liberty. As a state-sanctioned monopoly, the BUS conferred economic privileges on a small group of stockholders and financial elites, thereby violating the principle of equal opportunity. Critics added that the creation of a public-private, incorporated bank at the federal level was not explicitly authorized in the United States Constitution, that the bank interfered in the political process through its loans and expenditures, that the institution's charter violated state sovereignty, posing an implicit threat to Southern agrarian society dependent upon slavery.
On the other hand, pro-BUS National Republicans regarded the bank as a stabilizing force in the economy due to its unique ability to smooth out variations in prices and trade, extend credit where it was needed, supply the nation with a sound and uniform currency, provide helpful fiscal services for the treasury department, facilitate long-distance trade, prevent inflation by regulating the lending practices of state banks. In early 1832, the president of the Bank of the United States, Nicholas Biddle, in alliance with the National Republicans under Senators Henry Clay and Daniel Webster, submitted an early application for a renewal of the Bank's twenty-year charter; this application was four years before the current charter would expire and it made the elections of 1832 a referendum on the Bank's existence. When Congress voted to reauthorize the Bank, Jackson vetoed the bill, his veto message was a polemical declaration of the social philosophy of the Jacksonian movement that pitted "the planters, the farmers, the mechanic and the laborer" against the "monied interest."
The BUS became the central issue that divided the Jacksonians from the National Republicans in the presidential election of 1832. Although the Bank provided significant financial assistance to Clay and pro-BUS newspaper editors, Jackson secured an overwhelming election victory. Fearing economic reprisals from Biddle, Jackson moved swiftly to remove the Bank's federal deposits. In 1833, he succeeded in distributing these funds to several dozen state banks throughout the country; the new Whig Party emerged in opposition to his perceived abuse of executive power censuring Jackson in the Senate. In an effort to promote sympathy for the institution’s survival, Biddle retaliated by contracting Bank credit, inducing a mild financial downturn. A reaction set in throughout America’s financial and business centers against Biddle’s maneuvers, compelling the Bank to reverse its tight money policies. By the close of 1834, the prospects of a new Bank charter had dimmed considerably. Rather than permitting the Bank to go out of existence, Biddle arranged its conversion to a state chartered corporation in Pennsylvania just weeks before its federal charter expired in March 1836.
In 1841, during a global depression, the BUS declared bankruptcy. Jackson’s campaign against the Bank had triumphed. President James Madison and Treasury Secretary Albert Gallatin both supported recharter of the First Bank of the United States in 1811, they cited "expediency" and "necessity" as opposed to principle. Opponents of the First Bank of the United States defeated recharter by a single vote in both the House and Senate in 1811. Opposition came from several fronts, including states’ rights advocates opposed to the doctrine of implied powers, private banking interests who objected to the regulatory effects of the B. U. S. State banks, big mercantilists, including John Jacob Astor, who had disputes with the Bank’s directors; the practical arguments in favor of reviving a national system of finance, as well as internal improvements and protective tariffs, were prompted by national security concerns during the War of 1812 and its aftermath. The chaos of the war had, according to some, "demonstrated the absolute necessity of a national banking system."The roots for the resurrection of the Bank of the United States lay fundamentally in the transformation of America from a simple agrarian economy to one, becoming interdependent with finance and industry.
Vast western lands were opening for white settlement, accompanied by rapid development, enhanced by steam power and financial credit. Economic planning at the federal level was deemed necessary by Republican nationalists to promote expansion and encourage private enterprise. At the same time, they tried to "republicanize" Bank policy. Calhoun boasted that the nationalists had the support of the yeomanry, who would now "share in the capital of the Bank."In 1815, Secretary of State James Monroe informed President James Madison that a national bank "would attach the commercial part of the community in a much greater degree to the Government interest them in its operations…This is the great desideratum of our system." Support for this "national system of money and finance" grew with the post-war economy and land boom, uniting the interests of eastern financiers with southern and western Republican nationalists who sought to "Republicanize Hamiltonian bank policy" and "employ Hamiltonian means to Jeffersonian ends."
Despite opposition from Old Republicans led