answersLogoWhite

0

The National Bank Act (ch. 58, 12 Stat. 665, February 25, 1863) was a United States federal law that established a system of national charters for banks, the United States national banks.

It encouraged development of a national currency based on bank holdings of U.S. Treasury securities, the so-called National Bank Notes. It also established the Office of the Comptroller of the Currency (OCC) as part of the Department of the Treasury. This was to establish a national security holding body for the existence of the monetary policy of the state.

The Act, together with Abraham Lincoln's issuance of "greenbacks," raised money for the federal government in the American Civil War by enticing banks to buy federal bonds and taxing state bank issued currency out of existence. The law proved defective and was replaced by the National Bank Act of 1864.

The money was used to fund the Union army in the fight against the Confederacy. This authorized the OCC to examine and regulate nationally-chartered banks.

User Avatar

Jayde Bins

Lvl 10
3y ago

Still curious? Ask our experts.

Chat with our AI personalities

ViviVivi
Your ride-or-die bestie who's seen you through every high and low.
Chat with Vivi
BeauBeau
You're doing better than you think!
Chat with Beau
CoachCoach
Success isn't just about winning—it's about vision, patience, and playing the long game.
Chat with Coach
More answers

The National Bank Act (ch. 58, 12 Stat. 665, February 25, 1863) was a United States federal law that established a system of national charters for banks, the United States national banks.

It encouraged development of a national currency based on bank holdings of U.S. Treasury securities, the so-called National Bank Notes. It also established the Office of the Comptroller of the Currency (OCC) as part of the Department of the Treasury. This was to establish a national security holding body for the existence of the monetary policy of the state.

The Act, together with Abraham Lincoln's issuance of "greenbacks," raised money for the federal government in the American Civil War by enticing banks to buy federal bonds and taxing state bank issued currency out of existence. The law proved defective and was replaced by the National Bank Act of 1864.

The money was used to fund the Union army in the fight against the Confederacy. This authorized the OCC to examine and regulate nationally-chartered banks.

User Avatar

Wiki User

14y ago
User Avatar

Add your answer:

Earn +20 pts
Q: What is the National bank act?
Write your answer...
Submit
Still have questions?
magnify glass
imp