My topic of the research paper is about the introduction of central banking in the United States. In this research paper I will introduce the concept of the central banking, US banks prior central banking, and the First and Second Bank of United States, which are the first Central Banks.
Central Bank is a kind of bank, which other banks have in common. To facilitate and enhance their transactions, small country banks have to deposit their transactions and dealings in a larger and urban bank called central bank. Central bank is usually under the supervision of the government that has obligations related to the implementation of the macroeconomy. Other than performing general banking services, Central Bank has other duties and responsibilities. The responsibilities of the central bank involve: controlling the money supply for economic stability, regulating financial system and operating check-clearing system. Many industrial countries have Central Banks, which control over the other operating banks. (Department of Alfa-Informatica of the University of Groningen, 2001, section 1).
Banking is one of the economic segments, which becomes common among the American merchants. It was significantly unknown in North America during the Colonial Era when everything was controlled by landowners and regulated by England (Bankers of the Early Republic). Although the commercial Bank of England was a century old, there were no commercial banks in American colonies in 1775. At that period of time there were public and private colonial organizations (Wright, 1997). The real necessity for American banks started when the nation got its independence. During the revolutionary war, the United States’ Army fought with no sources of ...