National Bank Act

The National Bank Act, enacted in 1864, established a system for national banks in the United States, creating a uniform national currency and improving the stability of the banking system. It authorized the federal government to charter banks, placed them under federal regulation, and required them to hold U.S. government bonds as part of their reserves. The Act also set standards for bank operations, helping to reduce fraud and prevent bank failures, ultimately fostering confidence in the economy and facilitating interstate commerce.