Post-Civil War Banking
During the American Civil War, the Northern states, including Illinois, were troubled by inflation. To lessen inflation and begin to control the money supply, President Abraham Lincoln signed legislation that effectively banned small banks like the State Bank of Illinois from printing and issuing their own bank notes.
However, the economic policies set in place during the Civil War and followed the postwar Gilded Age were also good for American banks. By enforcing a gold standard, the federal government favored lenders. Most of the American states created statutes and case law that also favored lenders, enforced the collection of delinquent debts, and made banks and bankers key leaders of their communities.
Read more about this topic: Shawneetown Bank State Historic Site
Famous quotes containing the words war and/or banking:
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