History of Money and Banking Question

Chapters 7-8
Terms:
Money Broker (How did they make their Money)
Bank Note Detector:
Wildcat Bank:
Broker:
Boom and Bust Cycles:

Questions:
1. What was the Democrats solution to control the National Banks?
2. How many votes did the re-charter of the National Bank lose by?
3. Who in the private sector favored the re-charter of the National bank?
4. What did Alexander Hamilton argue the National Bank was able to do that the State
Bank could not?
5. According to the author, what was the purpose of Hamiltons financial system and the
Constitution?
6. What area of the country purchased the least amount of debt during the war of 1812?
7. Why did the government encourage the formation of new reckless inflationary banks in
the west and the south?
8. Between 1811 and 1815 how many new banks were created?
9. What was the difference between the rise of total species and the total Bank notes
between 1811-1815?
10. What happened when the New England banks called upon the other regional banks to
redeem their notes in specie?
11. How did the US government solve the insolvency problem?
12. What did Historians place the blame of inflation during the period during and after the
War of 1812?
13. What happened to prices during the period?
14. What were the two ways out of the inflation problem and what path did they choose?
15. In April 1816 what law did the US government pass and how strong was it enforced?
16. What was the solution of the central bank to the inflation?
17. What did Senator Wells call the central bank?
18. How were New York and Boston banks stripped of Specie?
19. What caused the economy to Bust in 1819?
20. What was the result in the contraction of money supply?